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CULTURE AND
INTERNATIONAL BUSNESS


  THE KINGDOM OF SAUDI ARABIA
GROUP MEMBERS

       Aditi Jalan

       Bhavika Kalaani

       Megha Bafna

       Yashwardhan Modi
THE KINGDOM SAUDI
             ARABIA

 Located in the middle-east, bounded by Iraq, Jordan, Kuwait,
Oman, Qatar, UAE and Yemen

 Important cities are Riyadh, Mecca and Medina

 The ethnic make-up consists of 90% Arabs and 10% Afro-Asians.

 Arabic is the official language. English is widely spoken.
CULTURE OF SAUDI ARABIA

 Islam is practiced by all Saudis and governs their personal,
political, economical and legal lives.
 Family and tribe are the basis of the social structure.
 Saudis are cognizant of their heritage, their clan and their
extended families.
 Nepotism is considered a good thing.
COUNTRY CLUSTER.
NON-ANGLO
        • Power Distance (PDI)                 • Large Power Distance
ANGLO


          (40)                                   (PDI) (80)
        • Individualism (IDV)                  • Individualism
          (91)                                   (IDV)(38)
        • Uncertainty Avoidance                • Uncertainty Avoidance
          (UAI) (46)                             (UAI) (68)
        • Masculinity (MAS)                    • Masculinity index
          (62)                                   (MAS) (52)
        • Long Term                            • Long term oriented to
          Orientation (LTO) (29)                 “group”
ETIQUETTE AND CUSTOMS

 Men shake hands. Women generally hug and kiss close friends
   but men and women would not greet each other in public

 If you are invited to a Saudi‟s house bring something small as
   a „Thank you‟ since gifts are not accepted.

 Entertainment will generally be same-gender only. If both sex
   are included, they will be in separate rooms.
C U LT U R A L L E A R N I N G
                         P RO F I L E


COLLECTIVIST               LARGE               HIGH                    ACHIEVEMENT
• 62 out of 100            POWER               UNCERTAINTY             ORIENTED
                          DISTANCE             AVOIDANCE               (MAS)
• Tribe and family
  oriented              80 out of 100          • 68 out of 100         • 52 Out of 100
• Students expect to                           • Structured learning   • Failure in school is
                       Teacher-centered                                  damaging to one‟s
  learn how to „do‟    education                 environment             self image and family
• High context                                   preferred               standing
  communication        Subordinates expect     • Low ambiguity         • Students compete
                       managers to outline       tolerance               with each other in
• Positive             learning path           • Teachers‟ expected      class
  associations with
  traditions           Quality of learning       to have all answers
                       attributed to quality
                       of manager
BUSINESS STRUCTURE

 The business culture in Saudi Arabia is developed around a family unit,
   with all key employees coming from the extended family.

 It is a non-egalitarian structure.

 Business is developed along strongly hierarchical lines, with majority
   of power being held at top by senior or older family members.

 This shows that the power distance (80) is high and they have a
   collective (62) approach.
MANAGEMENT STYLE

 Having a strongly hierarchical structure, managers tend to be very
instructional in their approach

 Subordinates view it as the boss‟ role to take decisions and convey
it down the chain of implementation

 They believe that leaders lead and followers follow
FORMAL MEETINGS

 Prior appointments are necessary several weeks in advance

 Arriving on time for the meeting, although it is an accepted custom to
keep foreigners waiting (synchronic/polychromic orientation)

 Meetings are generally not private until after a relationship of trust has
been developed

 Business meeting start after prolonged inquires about family, health
etc. “Never inquire about Saudi‟s wife”
TIME ORIENTATION

 The Arab‟s have a Polychromic cultural approach towards time.
 Work days: Saturday – Wednesdays. No work during Islamic prayer
times: observed five times a day.
 Past-orientated because it values its traditions, history and cultural
roots
 This is especially because of the strong sub-cultural association
 In Islam, man does not determine his future only God does
COMMUNICATION STYLES

 Saudi Arabia is considered a very high context culture.

 Particular emphasis is placed on tone of voice, the use of silence,
facial cues and body language.

 For instance, silence is often used for contemplation and you
should not feel obliged to speak during these periods.

 Maintaining private and public proximity is important.
WOMEN AND BUSINESS

 Women in Saudi Arabia make up between 5% to 15% of the work
force.

 Saudi sharia (Islamic law) allows women to work provided it does
not lead to her neglecting essential duties of home making.

 Any woman visiting on business needs to be very conservative in
both their dress code and behavior.
BUSINESS DRESS CODE

 Visitors to Saudi are expected to dress in a very conservative
manner.

 Men should wear formal clothing whereas women should wear
business suits (not trousers), where there is no exposure of skin at all.

 Expatriate should not be wearing traditional Saudi costume as it
may look bizarre or offend the local Saudis.
CULTURAL DIFFERENCE.
NEGOTIATION

 Saudi‟s are tough negotiators.

 The society being extremely bureaucratic, most decisions require
several layers of approval.

 There is a tendency to give bad news and give effusive acceptances,
which may not mean „perhaps‟.

 Decisions are made by the highest ranking person.
MARKET STRATEGY
CONCLUSION
 Saudi Arabia‟s high uncertainty avoidance will probably create high barriers of
entry which will reduce their international trade.
 Discouragement of innovation and creativity due to the unwillingness to take
risk.
 High power distance affects the laws and regulations due to the unlimited power
and authority by the government .
 Saudi Arabia is an extremely conservative country and therefore all expatriates
are expected to act accordingly.
 NOTE : VIDEO!
REFERENCES
 http://goliath.ecnext.com/coms2//gi_0199-6814349/Cultural-barriers-to-improved-
organizational.html (Accessed on: 2nd December‟11)
 http://internationalbusiness.wikia.com/wiki/Expatriates-living-in-Saudi-Arabia
(Accessed on:1nd December‟11)
 http://www.cybrolink.com/besite/saudi-arabia.htm (Accessed on:4nd December‟11)
 http://www.worldbusinessculture.com/Saudi-Arabian-Business-Negotiation.html
(Accessed on:3nd December‟11)
 http://www.kwintessential.co.uk/resources/global-etiquette/saudi-arabia-country-
profile.html (Accessed on:3nd December‟11)
THANK YOU

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culture presentation

  • 1. CULTURE AND INTERNATIONAL BUSNESS THE KINGDOM OF SAUDI ARABIA
  • 2. GROUP MEMBERS Aditi Jalan Bhavika Kalaani Megha Bafna Yashwardhan Modi
  • 3. THE KINGDOM SAUDI ARABIA  Located in the middle-east, bounded by Iraq, Jordan, Kuwait, Oman, Qatar, UAE and Yemen  Important cities are Riyadh, Mecca and Medina  The ethnic make-up consists of 90% Arabs and 10% Afro-Asians.  Arabic is the official language. English is widely spoken.
  • 4. CULTURE OF SAUDI ARABIA  Islam is practiced by all Saudis and governs their personal, political, economical and legal lives.  Family and tribe are the basis of the social structure.  Saudis are cognizant of their heritage, their clan and their extended families.  Nepotism is considered a good thing.
  • 6. NON-ANGLO • Power Distance (PDI) • Large Power Distance ANGLO (40) (PDI) (80) • Individualism (IDV) • Individualism (91) (IDV)(38) • Uncertainty Avoidance • Uncertainty Avoidance (UAI) (46) (UAI) (68) • Masculinity (MAS) • Masculinity index (62) (MAS) (52) • Long Term • Long term oriented to Orientation (LTO) (29) “group”
  • 7. ETIQUETTE AND CUSTOMS  Men shake hands. Women generally hug and kiss close friends but men and women would not greet each other in public  If you are invited to a Saudi‟s house bring something small as a „Thank you‟ since gifts are not accepted.  Entertainment will generally be same-gender only. If both sex are included, they will be in separate rooms.
  • 8. C U LT U R A L L E A R N I N G P RO F I L E COLLECTIVIST LARGE HIGH ACHIEVEMENT • 62 out of 100 POWER UNCERTAINTY ORIENTED DISTANCE AVOIDANCE (MAS) • Tribe and family oriented 80 out of 100 • 68 out of 100 • 52 Out of 100 • Students expect to • Structured learning • Failure in school is Teacher-centered damaging to one‟s learn how to „do‟ education environment self image and family • High context preferred standing communication Subordinates expect • Low ambiguity • Students compete managers to outline tolerance with each other in • Positive learning path • Teachers‟ expected class associations with traditions Quality of learning to have all answers attributed to quality of manager
  • 9. BUSINESS STRUCTURE  The business culture in Saudi Arabia is developed around a family unit, with all key employees coming from the extended family.  It is a non-egalitarian structure.  Business is developed along strongly hierarchical lines, with majority of power being held at top by senior or older family members.  This shows that the power distance (80) is high and they have a collective (62) approach.
  • 10. MANAGEMENT STYLE  Having a strongly hierarchical structure, managers tend to be very instructional in their approach  Subordinates view it as the boss‟ role to take decisions and convey it down the chain of implementation  They believe that leaders lead and followers follow
  • 11. FORMAL MEETINGS  Prior appointments are necessary several weeks in advance  Arriving on time for the meeting, although it is an accepted custom to keep foreigners waiting (synchronic/polychromic orientation)  Meetings are generally not private until after a relationship of trust has been developed  Business meeting start after prolonged inquires about family, health etc. “Never inquire about Saudi‟s wife”
  • 12. TIME ORIENTATION  The Arab‟s have a Polychromic cultural approach towards time.  Work days: Saturday – Wednesdays. No work during Islamic prayer times: observed five times a day.  Past-orientated because it values its traditions, history and cultural roots  This is especially because of the strong sub-cultural association  In Islam, man does not determine his future only God does
  • 13. COMMUNICATION STYLES  Saudi Arabia is considered a very high context culture.  Particular emphasis is placed on tone of voice, the use of silence, facial cues and body language.  For instance, silence is often used for contemplation and you should not feel obliged to speak during these periods.  Maintaining private and public proximity is important.
  • 14. WOMEN AND BUSINESS  Women in Saudi Arabia make up between 5% to 15% of the work force.  Saudi sharia (Islamic law) allows women to work provided it does not lead to her neglecting essential duties of home making.  Any woman visiting on business needs to be very conservative in both their dress code and behavior.
  • 15. BUSINESS DRESS CODE  Visitors to Saudi are expected to dress in a very conservative manner.  Men should wear formal clothing whereas women should wear business suits (not trousers), where there is no exposure of skin at all.  Expatriate should not be wearing traditional Saudi costume as it may look bizarre or offend the local Saudis.
  • 17. NEGOTIATION  Saudi‟s are tough negotiators.  The society being extremely bureaucratic, most decisions require several layers of approval.  There is a tendency to give bad news and give effusive acceptances, which may not mean „perhaps‟.  Decisions are made by the highest ranking person.
  • 19. CONCLUSION  Saudi Arabia‟s high uncertainty avoidance will probably create high barriers of entry which will reduce their international trade.  Discouragement of innovation and creativity due to the unwillingness to take risk.  High power distance affects the laws and regulations due to the unlimited power and authority by the government .  Saudi Arabia is an extremely conservative country and therefore all expatriates are expected to act accordingly.  NOTE : VIDEO!
  • 20. REFERENCES  http://goliath.ecnext.com/coms2//gi_0199-6814349/Cultural-barriers-to-improved- organizational.html (Accessed on: 2nd December‟11)  http://internationalbusiness.wikia.com/wiki/Expatriates-living-in-Saudi-Arabia (Accessed on:1nd December‟11)  http://www.cybrolink.com/besite/saudi-arabia.htm (Accessed on:4nd December‟11)  http://www.worldbusinessculture.com/Saudi-Arabian-Business-Negotiation.html (Accessed on:3nd December‟11)  http://www.kwintessential.co.uk/resources/global-etiquette/saudi-arabia-country- profile.html (Accessed on:3nd December‟11)

Editor's Notes

  1. Riyadh is the capital. The oil boom initiated an era of growth in the city and continues to this date. Mecca and medina are Islam's two holiest cities. Mecca is the birthplace of prophet Muhammad, the location of the holy kaaba, and the focal point of the Islamic pilgrimage (hajj). Madinah is the city to which the prophet mohd. Emigrated and where he lived. About 2 million muslims from saudi and around the world come to mecca each year in observance of the hajj.
  2. Nepotism implies that employing people one knows and trusts is of primary importance.
  3. Syncronic where many tasks are handled at the same time
  4. Semitic and parallel
  5. Matawain religious police