Se ha denunciado esta presentación.
Utilizamos tu perfil de LinkedIn y tus datos de actividad para personalizar los anuncios y mostrarte publicidad más relevante. Puedes cambiar tus preferencias de publicidad en cualquier momento.
Culture and business in
Saudi Arabia
Sachin Sebastian – 122
Sahanna MS – 123
Sai Kalyan – 124
Sanjana UN – 127
National Food-Kabsa
Salman bin
Abdulaziz
National Animal
National Food-
Kabsa
National Emblem
Kingdom of Saudi Arabia
• Capital and largest city Riyadh
• Official languages Arabic
• Religion Islam (official)
• Govern...
Largest cities
Politics of Saudi Arabia
• The Quran and the Sunnah are declared to be the country's constitution.
• No written modern con...
A country of rules
1. What forces shaped modern Saudi culture? How similar or different are
these forces from those that shaped the culture o...
Determinants of Culture
Culture
norms &
Value
Systems
Education
Language
Social
structure
Religion
Political
Philosophy
Ec...
Forces which shaped modern Saudi culture
• Conservative country
• Culture shaped by Wahhab sect of Islam and Bedouin tradi...
Forces which shaped culture of Western
nations
• More broad minded
• Merit based culture
• Gender equality
Western countri...
2. What kind of Misunderstanding are likely to arise between an
American company and a Saudi enterprise, if neither of whi...
95
25
60
80
3640
91
62
46
26
0
20
40
60
80
100
Power Distance Individualism Masculanity Uncertainity
Avaoidance
Long term ...
Implication for Managers
Implication for
Managers
Cross
cultural
Literacy
Commitment
to community
Ethno
centri
sm
Culture ...
Implication for Managers
Implication for
Managers
Cross
cultural
Literacy
Commitment
to community
Ethno
centri
sm
Culture ...
3. If we were in a position to advise a Western company that was
considering doing business in Saudi Arabia for the first ...
Cross-Cultural Literacy is very important
Take time and learn about the Saudi culture and the Saudi way of doing
business
...
Businesses should behave in a manner consistent with Islamic
ethics.
Gulf Arabs are exceptionally proud of their language,...
Important decisions should be made in person, not by correspondence or
telephone.
Saudi Arabia a high-context country will...
Everything has to go through administrative channels in the country. It
often is difficult to sidestep a lot of this red t...
Strategic Predispositions
• The company tries
to integrate a global
systems approach
to decision making.
• The firm tries ...
THANK YOU
Saudi arabia Culture & business
Saudi arabia Culture & business
Próxima SlideShare
Cargando en…5
×

Saudi arabia Culture & business

6.841 visualizaciones

Publicado el

A study to find out different aspects of doing business in a foreign country.

Publicado en: Empresariales
  • Sé el primero en comentar

Saudi arabia Culture & business

  1. 1. Culture and business in Saudi Arabia Sachin Sebastian – 122 Sahanna MS – 123 Sai Kalyan – 124 Sanjana UN – 127
  2. 2. National Food-Kabsa Salman bin Abdulaziz National Animal National Food- Kabsa National Emblem
  3. 3. Kingdom of Saudi Arabia • Capital and largest city Riyadh • Official languages Arabic • Religion Islam (official) • Government Absolute monarchy until 1992 - King Salman bin Abdulaziz - Crown Prince Muqrin bin Abdulaziz • Area - Total 870,000 sq m - Water (%) 0.7 • Population - 2014 estimate 30,770,375 (41st) - Density 12.3/km 2 (216th) • Currency Saudi riyal (SR) (SAR)
  4. 4. Largest cities
  5. 5. Politics of Saudi Arabia • The Quran and the Sunnah are declared to be the country's constitution. • No written modern constitution. • Only Arab nation with no elections. • No political parties nor elections are permitted. • On 25 September 2011, Saudi Arabia's King Abdullah has announced that women will have the right to stand and vote in future local elections.
  6. 6. A country of rules
  7. 7. 1. What forces shaped modern Saudi culture? How similar or different are these forces from those that shaped the culture of Western nations?
  8. 8. Determinants of Culture Culture norms & Value Systems Education Language Social structure Religion Political Philosophy Economic Philosophy
  9. 9. Forces which shaped modern Saudi culture • Conservative country • Culture shaped by Wahhab sect of Islam and Bedouin traditions Saudi as we know it • Al Saud clan made a pact with Ibn Abd al wahhab. • Store & restaurants - close at the 5 daily prayer times • Many restaurants – Separate dining room for men & women • Women – Not allowed to drive a car, Sail a boat or fly a plane, need travel slips Wahhab sect of Islam • Trust & loyalty • Long meetings – open office • Importance to status • Loyalty to family & friends Bedouin Traditions
  10. 10. Forces which shaped culture of Western nations • More broad minded • Merit based culture • Gender equality Western countries as we know it Church - Bible • Emergence of capitalism • Protestant ethics – Hard work, Wealth creation & frugality • Rather than in indulging in worldly pleasures, invest in expansion of enterprises Protestantism -
  11. 11. 2. What kind of Misunderstanding are likely to arise between an American company and a Saudi enterprise, if neither of which has experience dealing with the other
  12. 12. 95 25 60 80 3640 91 62 46 26 0 20 40 60 80 100 Power Distance Individualism Masculanity Uncertainity Avaoidance Long term Orientation Hofstede Cultural Dimension Saudi Arabia America Ultraconservative, Islamic absolute monarchy secular, democratic republic Islamic values and anti American sentiments Bedouin Traditions Wahab sect influence Cultural Dimension
  13. 13. Implication for Managers Implication for Managers Cross cultural Literacy Commitment to community Ethno centri sm Culture & Competitive advantage Cultural Changes Cross cultural Literacy1 • Ill informed companies • Incentive pay system, Name of a product etc. • Perception towards time Culture & Competitive advantage2 • Cost of doing business • Haberler’s Theory of International Trade Commitment to community3 • Triple bottom line and sustainability
  14. 14. Implication for Managers Implication for Managers Cross cultural Literacy Commitment to community Ethno centri sm Culture & Competitive advantage Cultural Changes Cultural Changes4 • Culture evolves over time • Chronic labor problems in Saudi • Changes happening - Nitaqat law, Saudization Ethnocentrism5 • Anti-American sentiment • Saudi differ from other middle east countries
  15. 15. 3. If we were in a position to advise a Western company that was considering doing business in Saudi Arabia for the first time, what would our advice be?
  16. 16. Cross-Cultural Literacy is very important Take time and learn about the Saudi culture and the Saudi way of doing business Must be constantly on guard against the dangers of ethnocentric behavior. Do not touch their core values, especially their belief system (religion).
  17. 17. Businesses should behave in a manner consistent with Islamic ethics. Gulf Arabs are exceptionally proud of their language, which is a strong, uniting bond right across the Arab world Business and personal friendships are one and the same, and Arabs generally prefer to do business with people they know and like
  18. 18. Important decisions should be made in person, not by correspondence or telephone. Saudi Arabia a high-context country will often speak in vague terms, generalities, and metaphors during negotiations. In Saudi the written and verbal acceptances are of the same value, therefore one should not make any promise that cannot be kept.
  19. 19. Everything has to go through administrative channels in the country. It often is difficult to sidestep a lot of this red tape, and efforts to do so can be regarded as disrespect for legal and governmental institutions. Patience is critical to the success of business transactions. Decisions can take a long time, probably longer than you’re used to The price should be the last thing to negotiate, and one should be prepared to give discount.
  20. 20. Strategic Predispositions • The company tries to integrate a global systems approach to decision making. • The firm tries to blend its own interests with those of its subsidiaries on a regional basis. • Strategic decisions are tailored to suit the cultures of the countries where the MNC operates • The values and interests of the parent company guide strategic decisions. Ethnocentric Polycentric GeocentricRegiocentric
  21. 21. THANK YOU

×