1. EXCERCISE - 1 patil, manoj

2. @03279385

EXERCISE 1 : Amir khan M @ 03279476

1 What forces shaped modern Saudi culture How similar or different are these forces from those that shaped the culture of Western nations ?

-Ans : ( i ) The modern Saudi culture is a result of a long term negligence by the Bedouin

tribes to take part in any kind of manual work . This has caused a major issue atSaudi arabia , Resulting to foreign national occupying a dangerously high rate of

90 % of all the private sector jobs . This lead to the launch of a program called“ Saudiaza” whose purpose was to change the backward beliefs which have beeninculcated and to work towards building a more modern economy in the country .

( ii ) It is quite different from the forces that shaped other cultures as other cultureswere not as religiously bound , Women had more rights , Business is done in a

much professional manner . So hence it is not similar to the forces which shapedthe western culture .

2 What kind of misunderstanding are likely to arrive between an American company and a Saudi enterprise , neither of which have experience dealing with the other ?

Ans : First and foremost , There will be a big difference in approach of doing business Between a American company and a Saudi enterprise . The other mishaps Would be due to :

1 ) Work timings - As Saudi’s don’t work on Fridays and shut all businesses

during their prayer timings . This might be a hinderance for an American based company to do business with them .2 ) Work methodology – Saudi’s have a different way of doing business whichinvolves gaining trust of the customer first , Involves a lot of businessmeetings which can be multiple at times and this can make the westernersfeel lik they are wasting a lot time by making trips .3) Thinking and cultural differences – Saudi’s have their own thinking and beliefswhich is inspired by the teachings of Abdul wahab .So there are different rulesfor women and things and aspects which the westerners might find intrestingmight rise an issue for a Saudi national doing business .

3. If you were in a position to advise a Western company that was considering doingbusiness in Saudi Arabia for the first time, what would your advice be

3 . If u were on a position to advise a western company that was considering doing business in saudi arabia for the first time , what would your advise be ?

Ans ; Its highly conservative when it comes to business and cultural in Saudi Arabia. Clear market research can be most useful and its basic to move ahead. Market segmentation like demographic, population, religion can be done before of particular Product/Service of Saudi Arabia. Need to compare the same things with neighbouring countries and their culture to get clear picture of it, then it’s the prediction which can be very handy to start a business.

Ans - 3. If you were in a position to advise a Western company that was considering doingbusiness in Saudi Arabia for the first time, what would your advice be?I would sincerely advice a western company to have patience since the Arabians take a lot oftime to discuss and deal with proper trust, terms and conditions. The western Company

before doing business should do a market research and survey in order to make profitablebusiness. The Western company must learn its culture and try to adapt themselves to beflexible to business investing their time. The western company needs to make tailor made andcustom made products and services to best fit the Culture and

perception of the Arabians. TheWestern company CEO or chairman has to come down to the floor level in order to conductbusiness with them as they would not consider any junior executive representing thecompany for business. The Saudis take lot of meetings with board members ,face to face

discussion and its not easy to convince them for business as they are proved to be majorsources of oil in the world they seem to a little reluctant to invite businesses. The westerncompany should make use of the advantage of low tax system and there is no corruption inthe Arabia which would make an effective decision to play calm in doing business.

Its highly conservative when it comes to business and cultural in Saudi Arabia. Clear marketresearch can be most useful and its basic to move ahead. Market segmentation likedemographic, population, religion can be done before of particular Product/Service of Saudi

Arabia. Need to compare the same things with neighbouring countries and their culture to getclear picture of it, then it’s the prediction which can be very handy to start a busine3. If you were in a position to advise a Western company that was considering doingbusiness in Saudi Arabia for the first time, what would your advice be?

I would sincerely advice a western company to have patience since the Arabians take a lot oftime to discuss and deal with proper trust, terms and conditions. The western Companybefore doing business should do a market research and survey in order to make profitablebusiness. The Western company must learn its culture and try to adapt themselves to be

flexible to business investing their time. The western company needs to make tailor made andcustom made products and services to best fit the Culture and perception of the Arabians. TheWestern company CEO or chairman has to come down to the floor level in order to conductbusiness with them as they would not consider any junior

executive representing thecompany for business. The Saudis take lot of meetings with board members ,face to facediscussion and its not easy to convince them for business as they are proved to be majorsources of oil in the world they seem to a little reluctant to invite businesses. The westerncompany should make use of the advantage of

low tax system and there is no corruption inthe Arabia which would make an effective decision to play calm in doing business. Its highly conservative when it comes to business and cultural in Saudi Arabia. Clear marketresearch can be most useful and its basic to move ahead. Market segmentation like

demographic, population, religion can be done before of particular Product/Service of SaudiArabia. Need to compare the same things with neighbouring countries and their culture to getclear picture of it, then it’s the prediction which can be very handy to start a business3. If you were in a position to advise a

Western company that was considering doingbusiness in Saudi Arabia for the first time, what would your advice be 3. If you were in a position to advise a Western company that was considering doingbusiness in Saudi Arabia for the first time, what would your advice be?I would sincerely advice a western company to have patience since the Arabians take a lot of

time to discuss and deal with proper trust, terms and conditions. The western Companybefore doing business should do a market research and survey in order to make profitablebusiness. The Western company must learn its culture and try to adapt themselves to beflexible to business investing their time. The western company needs to make tailor made and

custom made products and services to best fit the Culture and perception of the Arabians. TheWestern company CEO or chairman has to come down to the floor level in order to conductbusiness with them as they would not consider any junior executive representing thecompany for business. The Saudis take lot of

meetings with board members ,face to facediscussion and its not easy to convince them for business as they are proved to be majorsources of oil in the world they seem to a little reluctant to invite businesses. The westerncompany should make use of the advantage of low tax system and there is no corruption inthe Arabia which would make an effective

decision to play calm in doing business. Its highly conservative when it comes to business and cultural in Saudi Arabia. Clear marketresearch can be most useful and its basic to move ahead. Market segmentation likedemographic, population, religion can be done before of

particular Product/Service of SaudiArabia. Need to compare the same things with neighbouring countries and their culture to getclear picture of it, then it’s the prediction which can be very handy to start a business