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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.
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.
CULTURAL LEARNING PROFILE
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-im
proved-organizational.html
(Accessed on: 2nd December’11)
http://internationalbusiness.wikia.com/wiki/Expatriates-living-in-Saudi-Ar
abia
(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-Negotiatio
n.html
(Accessed on:3nd December’11)
http://www.kwintessential.co.uk/resources/global-etiquette/saudi-arabia-c
ountry-profile.html
(Accessed on:3nd December’11)
THANK YOU
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