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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.
Nepotism implies that employing people one knows and trusts is of primary importance.
Syncronic where many tasks are handled at the same time
Semitic and parallel
Matawain religious police
CULTURE ANDINTERNATIONAL 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 theirextended families. Nepotism is considered a good thing.
NON-ANGLO • Power Distance (PDI) • Large Power DistanceANGLO (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 ECOLLECTIVIST 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 veryinstructional in their approach Subordinates view it as the boss‟ role to take decisions and conveyit 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 tokeep foreigners waiting (synchronic/polychromic orientation) Meetings are generally not private until after a relationship of trust hasbeen developed Business meeting start after prolonged inquires about family, healthetc. “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 prayertimes: observed five times a day. Past-orientated because it values its traditions, history and culturalroots 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 youshould 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 workforce. Saudi sharia (Islamic law) allows women to work provided it doesnot lead to her neglecting essential duties of home making. Any woman visiting on business needs to be very conservative inboth their dress code and behavior.
BUSINESS DRESS CODE Visitors to Saudi are expected to dress in a very conservativemanner. Men should wear formal clothing whereas women should wearbusiness suits (not trousers), where there is no exposure of skin at all. Expatriate should not be wearing traditional Saudi costume as itmay look bizarre or offend the local Saudis.
NEGOTIATION Saudi‟s are tough negotiators. The society being extremely bureaucratic, most decisions requireseveral 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.
CONCLUSION Saudi Arabia‟s high uncertainty avoidance will probably create high barriers ofentry which will reduce their international trade. Discouragement of innovation and creativity due to the unwillingness to takerisk. High power distance affects the laws and regulations due to the unlimited powerand authority by the government . Saudi Arabia is an extremely conservative country and therefore all expatriatesare expected to act accordingly. NOTE : VIDEO!