Cultural Aspects Of Doing Business In Saudi Arabia Case Study

Superior Essays
To: Professor Sean Thelen
From: Zeinab Saleh
Date: Tuesday, December 8, 2015
Subject: Business in Saudi Arabia

Part I. “Cultural Aspects of doing Business in Saudi Arabia”
In doing my research on what potential countries we may do business with, I came across the country of Saudi Arabia. Saudi Arabia being well known and rich for its natural resources of Petroleum, natural gas, iron ore, gold and copper, I would think that undergoing business in Saudi Arabia can be a highly-beneficial venture for us if we can handle the culture differences.
In order to deepen our relationship with the Saudi market and businesspeople, we need to conform to the Saudi social and business culture, which can differ remarkably from our Western norms. The weekend
…show more content…
Before entering into any sort of agreement or contract with a Saudi businessman, he first must feel comfortable to deal with you, and not get any sort of bad vibe from you. This is where trust plays a huge role in business. Saudi businessmen refrain from discussing hard details of business deals immediately in a meeting rather, they first chitchat and inquire about each other 's welfare. It is important to never rush a Saudi businessman into a business agreement or appear impatient. Unlike the western culture where they like to sign the agreement and get to work. In comparison with the western culture, the Saudi culture has a less rigid concept of time and schedule whereas westerners are very precise with timing, 8 o’clock means 8 …show more content…
We start by examining the power distance dimension of Saudi Arabia. In this dimension we see that the Saudi’s are accepting of a hierarchical order, wherein everyone has a place and which needs no further validation. In an organization, hierarchy is seen as portraying essential inequalities, centralism is popular, subordinates expect to be told what to do and the ideal boss is a generous autocrat. In examining the individualism dimension, Saudi Arabia seems to fall under the collectivistic society. Collectivist societies is seen as people belonging to ‘in groups’ that take care of them in exchange for loyalty. Looking at the Masculinity dimension in Hofstede’s model, we see that Saudi scores a high on masculinity, this indicates that the society is motivated by competition, achievement and success, with success being defined by the winner/best in field. Looking at the uncertainty avoidance dimension, Saudi Arabia seems to be up there in this dimension, and this is so because Saudi Arabia maintains rigid codes of belief and behavior and do not tolerate untraditional behavior and ideas. In the Long-term orientation dimension, Saudi Arabia seems to fall short under this category. This may be due to the fact that the people of the Saudi society have strong concerns in establishing the absolute truth; they are normative in their thinking. In their

Related Documents

  • Decent Essays

    Deca Personal Statement

    • 453 Words
    • 2 Pages

    Thus, learning about international business can help me understand some customs and cultural differences among various countries. I understand that language is a barrier in business and if not taken seriously, can lead to consequences such as misinterpretations of marketing campaigns to failed business deals. One does not want to offend a client from a different country and sometimes small actions can be perceived differently across different cultures. There are also different regulations in different countries that dictate what companies have the right to do. Through this program at the Kelley School of Business, I hope to learn some of the customs and culture of East Asia, East Africa, and Turkey.…

    • 453 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Week Three Assignment Jacob T. Bierbaum American Military University BUSN601: Global Management Perspective May 24, 2015 Abstract This paper will focus on the four main elements of culture, and how they relate to a business’ international operations. Specifically, it will explain how each cultural element can have an impact on not only a business’ operations, but also on the customer base that said company must pander to in order to successfully market its product. Finally, this paper will emphasize the importance of a culturally sensitive company in today’s increasingly globalized marketplace. There are many different sub-categories of cultural aspects that can be applied to international business; however, the four main elements of culture are the social, political, beliefs, and economic elements (Gapsar et al, 2014).…

    • 974 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    In researching the business culture of another foreign country for the use of an informational memo. I am letting my classmates, know what country has been chosen to research and share some of it's interesting facts on the country of Cuba. How is that country's culture similar to or different from U.S. culture? Despite the fact, of some of the ways Cuban culture can be similar to U.S. culture may be through the average family of the U.S. having 3.19 members, where the Cuban family average has 3.18 members. Some of the differences of the U.S. and Cuba cultures are unambiguous.…

    • 283 Words
    • 2 Pages
    Decent Essays
  • Decent Essays

    Hannah Hagopian Theology 203 Prisoner of Conscience: Saudi Arabia, Raif Badawi Throughout the world we unfortunately have many prisoners of conscience, or individuals held in captivity because their political or religious beliefs conflict with those of the ruling government (“Prisoner of Conscience”). One such country that has prisoners of conscience is Saudi Arabia. The situation in Saudi Arabia is one of injustice, where there are random arrests and convictions of peaceful protestors and where human rights activists are given prolonged imprisonment with charges for criticizing authorities or supporting political reforms. The country has also violated the international humanitarian law with violent and frequent airstrikes on Yemen,…

    • 384 Words
    • 2 Pages
    Decent Essays
  • Decent Essays

    A business must, therefore, take into consideration the cultures of the employees and the influence of the cultures on the business. In the case study, Shonteur Inc. experiences several culture-related problems that affect the business operations of the subsidiary in France. The employees working in the Shonteur Inc. France branch have different cultural backgrounds, and this affects the business.…

    • 306 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Anna Håkanson Case Study

    • 1014 Words
    • 5 Pages

    While Sunnis and Shiites both fall under the umbrella of Muslim, the cultures of the two groups differ, especially with regards to power structures, in that Sunnis elect their leaders, and Shiites follow a line of succession based on who is appointed by the Imam (Grant, 2015). These cultural differences between two Muslim subcultures may also carry over into how the two different groups may structure power within companies as well. There is also no clear consensus about the role culture plays in global business (Steers, 2013, Chapter…

    • 1014 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Stereotypes Of Sufis

    • 1307 Words
    • 6 Pages

    The chapters that make up this section of the book serve as case studies in the application of hegemonic ideals and resistance to them by describing how they fared when implemented in the so-called “real world.” Chapter seven serves as an account of the development of the oil economy of Saudi Arabia and the build-up of institutions related to its industry, alluding to the themes noted in chapter one, the architecture of its rentier system will be discussed given that it was developed in tandem with the growth of its oil export industry. For it is known that the Saudi monarchy uses the proceeds from this industry to fund a vast clientele no different than what is found in Syria or any other bureaucratic-authoritarian state, as it would build the image of the king as a fatherly figure interested in the well-being of his people, despite that it is fairly limited to his immediate clients. However not everyone would be happy and would even challenge the sacred role of the monarchy which brings us to chapter 8, “Up against the King,” which details the Islamic opposition against the Saudi monarchy. The themes explored in this essay notes the development of anti-state actors and their bouts of insurgency that placed the world on edge, it will be explored the development of militant ideology using the thesis of the cycle of contention formulated by…

    • 1307 Words
    • 6 Pages
    Improved Essays
  • Superior Essays

    here are always differences from one culture to another, including the conduct of and approach of business. It is important to be informed and understand these differences for a number of reasons. If you were to ever conduct business with another country and did not understand the fundamental differences, you would risk the possibility of offending someone or even taking offense yourself when it was not intended. Another reason you should research the practices of other cultures is to open yourself to different business practices that may help you in your own business practices. I will explore the differences between The United States of America and the country of Japan that Nair (2010) and Martin, Schelb, Snyder, and Starling (1992) explain in detail.…

    • 1332 Words
    • 6 Pages
    Superior Essays
  • Superior Essays

    America’s continues need of foreign oil at a reasonable price and Saudi Arabia’s need of an inexhaustible source of cash as well as protection against other nations created a codependent alliance with each other that ultimately withstood the test of time. Before the United States came Saudi Arabia was for the most part underdeveloped and lacked much of the modern technology and diet of the Western nation because it went against the religious teachings. Cars, television, alcohol, tobacco and air conditioning were all seen as “the Devil set out to destroy the Muslim faith” (Quicksand, 59). Americans often took part in these things on the Saudi soil, which infuriated many of the locals who felt that the Americans were being rude and were plaguing the country with these unwanted material items. In the beginning, the American officials had thought the money they showered the Saudi government with would spread throughout the kingdom to enrich the county and its citizens.…

    • 1602 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    (Islamic clothing of Yemen) I went back to work the third week. After I finished my shift something happened, something I have been seeking for weeks, friendship! A kind and a respectable kid named Khalid, offered me 2 shawarma (traditional food) after I finished plowing the rest of the field. He started talking about culture and tradition and I realized it wasn’t as bad as I thought.…

    • 860 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Misunderstandings and a lacking of cultural appreciation have caused many to fall into a misconception over the Middle East. With mass media only broadcasting the negative stories of the Middle East, a land of beauty, culture, and morality has been painted as a land of terror, destruction and anger from those who do not wish to understand the “why” behind it all. The three variables I believe impacted the Middle Eastern societies was first, the spread of Islam, Christianity and Judaism. Second being the migration of western imperialism in the Middle East, in which the British wanted to control the Middle East for selfish reasons. Finally, the Palestinian and Israeli conflict that started after the retreat of western imperialism, as well as…

    • 934 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    When companies are set up in another country the issue of culture comes apparent. Each society has their own way of life and separate culture from our societies or…

    • 1860 Words
    • 8 Pages
    Great Essays
  • Improved Essays

    Intercultural communication is referred to the wide range of communication issues that inevitably arise within an organization composed of individuals from a variety of religious, social, ethnic and technical backgrounds. Loob Holdings Sdn Bhd and La Kaffa had a different culture in religious, social and ethnic. So, La Kaffa must analyse their franchisee culture to prevent the controversial issues such as non-halal food. With cross-cultural communication, they can learn the norms, customs, values, and beliefs of Malaysia culture. It is really important because this issues can give a bad impression of the customer to Chatime and also damage the image of Chatime.…

    • 1714 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    Culture in the international marketing has an important position. International marketing success and failure, the main reason is cultural (Ricks, 1993 cited in Hollenson, 2017). A large number of cases show that in many environmental factors, the culture is gradually becoming a core factor affecting international marketing. The main purpose of this essay is to illustrate the importance of culture in international business through some basic theories and related cases. The essay will be divided into two parts.…

    • 1625 Words
    • 7 Pages
    Improved Essays
  • Great Essays

    As discussed before, intermediaries are hired to be a part of the business meeting in China. Body posture should always be formal and attentive, and be consciously aware of body language and movements. Americans must remain composed and put together to establish their credibility (Today’s Translation,…

    • 1890 Words
    • 8 Pages
    Great Essays