Saudi Arabia is not an easy place for Western enterprises to do
business. However, there is a significant presence of many western
brands like Coca-Cola, McDonald’s, and the Body Shop in the
oil-rich kingdom. The country's ancient traditions, values, and
Islamic culture have spilled over into the business sector. For
example, stores and restaurants close at the five daily prayer
times, and many restaurants, including McDonald’s maintain separate
dining areas for men and women. In addition, Saudi Arabian women
are not allowed to drive a car, sail a boat, or appear outdoors
with hair, wrists, or ankles exposed – something that western
companies need to bear in mind when doing business in this country.
Saudi Arabian traditions include status, an emphasis on
interpersonal relationships, and the idea of approximate rather
than precise time. Saudis will often conduct business only after
trust has been well established, usually after a large number of
face-to-face meetings. They may resent being rushed into a business
decision, preferring to let discussions proceed in a more relaxed
way. Saudi executives will not react well if a foreign company
sends a junior executive to business meetings.
4a. Identify and explain TWO elements of culture in a host
country like Saudi Arabia. (10 marks)
4b. Discuss FOUR business issues / practices that could be
influenced by the cultural elements of the host country like Saudi
Arabia. Justify your answers with examples from the above case. (20
marks)
Saudi Arabia is not an easy place for Western enterprises to do business. However, there is a significant presence of ma
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