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Culture

In: Business and Management

Submitted By suazz
Words 1919
Pages 8
Sarvajanik Education Society
S.R. Luthra Institute of Management
Semester III (805) Module V Case Study Class: Elective
International Business (2830006) Faculty: Pratiksinh Vaghela
A
Report on
Module V Case Study Presentation
“Culture and Business in Saudi Arabia”
Submitted by: Group No: ()
Sr. No. Enrollment number Name
1 148050592058 R. Suraj
2 148050592066 Azhar Shah
3 148050592077 Sunil Tiwari
4 148050592082 Kalpesh Vasova
5 148050592085 Jay Viththlani

Subject: International Business (2830006)

Submitted to:
Mr. Pratiksinh Vaghela
S.R. LUTHRA INSTITUTE OF MANAGEMENT – 805
Summary
Western enterprise wants to do their business in the Saudi Arabia but it was not easy to start the business in the Saudi Arabia. Western aerospace company (boeing and Lockheed) sold their aircraft in the Saudi Arabia in past year. Also from a decade now Saudi Arabia has open the foreign investment in certain sector but they had kept oil and gas sector for the foreign investment.

Saudi Arabia is a conservative country where large segment of the population believe in the religious values and ancient tradition of region, due to this they spill over into the business sector. As a culture shape by Islam and Bedouin tradition. In 1744 after nomad and ibn abd-al-wahhab has implement which was expressed in the Quran and that law is applicable till today.

If the foreign company want to do any business in the Saudi Arabia they had to face the certain problem regarding to their business in the country like Saudi Arabia for example, stores and restaurants close at the five daily prayer times, and many restaurants, including western ones such as McDonald’s, have separate dining area for the men and women. Women in the Saudi Arabia are not allowed to drive a car, sail a boat, or fly a plane or to appear outside or outdoor with hair, wrists, or ankles exposed- something that western companies need to keep in mind when doing business in the country or with Saudis elsewhere. Indeed,

Saudi Arabia has supported to Islamic value that is also given rise to anti American sentiment in the Saudi Arabia which increase invasion to the other Muslim in that nation. Saudi Arabia culture boycotts the American products also they have been attack on the western expatriates in Saudi Arabia during the past decade. Bedouin culture also shapes Saudi culture, they are surviving on harsh desert landscape and also some of them are found in the modern Saudi Arabia society. They are giving more important to the loyalty, status interpersonal relationship.

Bedouin tradition reflects that Saudi people do the meeting after the building of the trust among them and the other party that will create a problem to westerners with their attachment to the precise time rather than the approximate time. They maintain open office. Also Bedouin tradition they have right to visit to the leader without having the permission or any appointment of them. Saudi executives are not behaving well with the foreign company sends their junior executive to transact the business.

In Saudi culture, they have given more importance to friends and family, job security will be based on family and friendship ties, not based on technical or managerial ability. They also consult with family and friends before taking business decision rather than to consult an expert. They ignore expert decision. Bedouin tradition dislikes the menial work which has produced a long lasting problem in Saudi kingdom. But, foreign companies quickly understand menial problem and they undertake manual labor or basic service work. Saudi government sees as a long term problem. Saudi has a launched a program of “Saudization” with the aim to change culture values towards work and help build modern economy.
Saudi society is starting to change in other ways. Like, the rights of women are being expanded. Today, most of university students in the Saudi are women. In 2004, a woman has right to commercial business licenses. As Saudi society evolves, women may come to play a greater role in business.

Question and Answer
1) What forces shaped modern Saudi culture? How similar or different are these forces from those that shaped the culture of western nations?
ANS. There are forces listed below that shaped modern Saudi culture:
• Menial work:
Saudi culture dislikes the menial work. They have believed in top level job. Foreigner grabs this as opportunity to do business in Saudi at menial work. 90% of private sector menial work filled by foreign national. Like Muslim nation such as Pakistan and Indonesia, etc. Saudi government sees as a long term problem. Saudi has a launched a program of “Saudization” with the aim to change culture values towards work and help build modern economy. This shaped modern Saudi culture.
In western nations, Menial work is also more important as top level work. Also it can contribute in GDP of nation. Jobs like baby seating and delivering newspaper also more important.
• Women’s rights
In past, women have not allowed to drive a car, plane, or boat, etc. they are not allowed to launch their own business and not allowed to go to outside. If women’s want to travel on their own they need to take permission from government.
In recent, most of university students in the Saudi are women. In 2004, a woman has right to commercial business licenses. As Saudi society evolves, women may come to play a greater role in business. The women held some $25 billion in deposits in Saudi banks and had little opportunity to use them.
In western nations, women have allowed to drive a car, plane, or boat, etc. they allowed to launch their own business and go to outside. If women’s want to travel on their own they do not need to take permission from government. Women’s are treated equal to men. Jobs like menial work also done by women’s.

• Social stratification
Social stratification has to do with placing members of society in certain classes. There are those in the lower, middle and upper classes. Many times, this is borne out of one's family background, income or occupation. Those from the lower class only hope to move from that class to the upper one through a process called social mobility, which is in most cases done through education and job opportunities.
Menial works diversify social stratification through oil revenue. They launched “Saudization” after social stratification is done.
2) What kinds of misunderstanding are likely to arise between an American company and a Saudi enterprise, if neither of which has experiences dealing with the other?
3) If you were in a position to advise a western company that was considering doing business in Saudi Arabia for the first time, what would your advice be?
Ans. If we are position to advice a western company to start their business for first time in Saudi Arabia. We give advice like this:
Days And Time
The weekend in Saudi Arabia is Thursday and Friday. Saudi businesspeople pray five times a day; the exact time of the prayers are listed in the local newspapers each day, While Westerners are not required to pray at those times, whatever business activities they are engaged in with Saudi business people will be interrupted by them.
During the month of Ramadan (the exact dates vary each year), businesses slow down noticeably. While Westerners are not expected to fast during Ramadan, they should refrain from eating in public and in the presence of those who are fasting

Pace and Trust
Saudi culture has a less rigid concept of time and schedule compared to the West.
Meetings are often loosely scheduled around set prayer times. It is common for them to be interrupted; sometimes, there may be multiple people in the same office discussing multiple business matters Saudi businessmen do not discuss hard details of business deals immediately in a meeting; instead, they first chitchat and inquire about the each other's welfare.
To do business with a Saudi businessman, trust must first be established; it may be a while before he will feel comfortable discussing serious business matters.
It is important to not rush a Saudi businessman into a business agreement or appear impatient.
When (finally) discussing business deals, nothing is final until both parties have parted with a verbal understanding.
Gender Considerations
In Saudi Arabia, public interaction between men and women are severely limited, even in business settings.
In public, Western businesswomen may be expected to wear an abaya. Indoors, their clothing should be loose-fitting and cover their collarbone, elbow and knees.
In many public places (like restaurants), Western businesswomen cannot meet with Saudi businessmen without a male in her party or cannot meet with Saudi businessmen at all
Western business women tend to be accepted but with a great deal of reservation, stated a cross culture posting on Saudi Arabia.

Saudi Communication Style
Indirect
Imply or suggest what is meant. You must read between the lines to find the real message. Non-verbal communication may contain more of the message than the words themselves. Stories or parables may be used to make a point or expose a problem.
High Context
The style and tone of communication varies according to those involved in the conversation. In high-context communication, the way one dresses, tone of voice and personal demeanor all carry a message.
Formal
Sensitivity to hierarchy and face-saving is very important. Ritual greetings, showing polite interest in the individual, and eye contact may seem simply like friendliness, but are an important part of the formal steps toward establishing a relationship.
Expressive
Emotional displays are common and expected. Being emotionally engaged is a demonstration of interest and of giving one’s full self to the discussion.
Circular
For those accustomed to linear communication, conversations with Saudis may appear to weave and wander. It requires patience and a great deal of listening to understand the message.
Non-Verbal Dynamics
Gestures
Saudis, in general, make liberal use of gestures, especially if they are enthusiastic about what they are saying. Men use gestures more than women. To greet with respect or sincerity, after shaking hands, place the right hand to the heart or chest. Failure to shake hands when meeting someone or saying goodbye is considered rude. When a Western man is introduced to a Saudi woman they will not shake hands. Do not shake hands firmly or pump your whole arm up-and-down. Also, realize that people shake hands and hold hands longer in greeting than in the West; allow your counterpart to withdraw first.
Touching
Saudis will interpret your behavior negatively if you behave with too much familiarity toward a person of the opposite gender. Behaviors such as overly enthusiastic greetings, animated and joking conversations, and casual invitations to lunch can be easily misinterpreted. The public display of intimacy between men and women is strictly forbidden by the Saudi social code, including holding hands or linking arms or any gesture of affection. However members of the same gender may be seen walking hand-in-hand and may frequently touch during conversation.
Space
Saudis will typically stand very close to you when in a conversation. If you try to keep a greater distance, the Saudi may think you find his physical presence distasteful or that you are a particularly cold individual. When standing in conversation with someone, leaning against the wall or keeping hands in pockets is taken as a lack of respect in Saudi Arabia.
Saudi Business Patterns
Business meetings last longer than time set Not all agenda topics covered
Deviation from agenda is typical
Interruptions are common and acceptable

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