question - What kinds of misunderstanding are likely to arise between a Canadian company and a Saudi enterprise, neither of which has experience dealing with the other?

If you were in a position to advise a Canadian company that was considering doing business in Saudi Arabia for the first time, what would your advice be?

bia Hill 2015 (3) por LUTORAND RUSINESS IN SAUDI ARABIA the in the world for semua bOn the one and the Bedouin traditions have been a strong am interiores for enterprising was in hoping Sand culture Values that were important to those proud nod and that henbled them to conto companies have long sure the harsh deart fandicape found Geen bulding frastructure in the kingdom neden Saudi society. They Indude loyalty a Balion Coca-Cola, Nike, and McDonalds to emphasis on terpersonal relationship the dea of SHE and Benetton have a significant perence apprimate rather than precise time, and an version to Free companies such as Boeing and Lockheed ny behaviour that might seem merilor servile including Sidsgeticant amber of craft to Saudi Arabia manual laboun The Sauditaket one of the larger in the Meflecting Bedouin traditions, Saudis will often condua Es for more than a decade now, the government business only after that has been well established led that it is more open to foreign investment in process that might require by Western standard a large Glors of the economy thoughol and a number of face-to-face meetings. Sauds may not being is stilreserved for state-owned enterprise rushed into a business decision, preferring to be discussions On the other hand, Saudi Arabia historically proxeed in more related fashion-something that contive Country we sent of the Westerners with the attachment to precise rather than Button desires to serve the religious values and approximate time might find ang Business meeting ancient traditions of region. This can and does spilloret may be long because many Saudis maintain an open the sector the cure of the country has office and winterrupt a meeting to conduct other ensed by Combination of Islam and Bedouin business, which can be traced back to the Bedouin tradition trains when deset omads populated the where al tribal members have a right to visit and petition modeling al Saud clan made their ders without an appointment. Given the cultural Abd Wahab Wahab was an influential importance attached to status, Saudi executives we not und warught to purifystam and return it to react wel if a foreign company sends a juniorer to at thighscherence to what he transact business the origina principles of Islam, as expressed Loyalty to fame and friends is a powerful force, and job in exchange for protecting Wahhab and security and advancement may be bound on family and Wannab oftered his backing to the friendship thes, rather than, or in addition to demonstrated Family One hundred and forty years technical or managerial competence. Westere might the nomadic desert tribes under construe this negatively a nepotism, but is the Shud Kingdom was both nomadic culture where trust in family and tribe was placed of Islam still has a profound above else Saudi executives will also consult with family Something that every to and friends before making a business deckion, and they branple, sons and restaurants dose my place more weight on their opinions than that of pray lines and many restaurants, experts whom they do not know as well as Donald's, have separate The Bedouin aversion to mental work produced and women Women in Saudi Arabia dvonic labour problem in the kingdom and foreign boat or fly a plane of companies will quickly discover that it is difficult to find i wists orantes exposed Saudi nationals who will undertake manual labour or basic nes need to keep in mind ervice work Consequently Somesh million foreign w the country with Saudin nationals reside in Saudi Arabia. These patriates, who are women traveling their own have primary from other Muslimations, such as Pakistan and des or missions Indonesia, undertake many of the men cupations that Pues has also Saudis dedin. Although ol revenues have made this social inca fiching the Stratification possible the Saudi government was nation trag potential long-term problem most 90 percent of antyprawd consumer boycotts of prate sector jobs in Saudi Arable ore ed by foreign Amourbing than consumer boycots rationals and it hastaunched a program of Sauditation The aim is to change cultural walues toward work proved how been tots against Western parte asmens and by doing so tolvoboda modern economy Sharing decade, significantly increasing So far success had been ingat best the periodontig bingdom 122 Saudi society is starting to change in other important lune 19, 2004, pp. 28-30, B. Mrou. "Arab countries Boycott wysSlowly the rights of Saudi women are being Goods over Mideas Policies, Los Angeles Times 29, expanded in 1964, Saudi girls were not allowed to go to 2002, p. 3, and M. Dowd, "A GA Guide to Saudi Arabia hool today, more than half of university students in the Vanity Faw, August 2010 com are women in 2004, Saudi women were granted the hi to hold commercial business licences, a significant CASE DISCUSSION QUESTIONS advance considering the women held some $25 billion in deposits in Saudi banks and had little opportunity to use 1. What forces shaped modem Saudi culture? How similar or different are these forces from those that shaped the cut of them. As Saudi society evolves, won may come to play Western nations? greater role in business 2. What kinds of misunderstanding are likely to rise been Srce G. Rico, "Doing Buimen Saudi Arabia Thunderbird Canadian company and a Saudi enterprise, neither which has hew, January 2004, pp. 59.84. experience dealing with the other? New Working Class in Saudi Arabia 3. you were in a position to advise a Canadian compary that Labor 1997, p. 29-30. Out of the was considering doing business in Saudi Arable for the first Vuod A Women The Economist time, what would your adike be? CULTURE AND BUSINESS IN SAUDI ARABIA Saudi Arabia is not the easiest place in the world for Bedouin traditions have been just as strong as Islamsk Western enterprises to do business. On the one hand, the values in shaping Saudi culture Values that were important oll-rich kingdom offers many opportunities for enterprising to those proud nomads and that have enabled them to businesses. Western construction companies have long survive in their harsh desert landscape-are still found in played a role in building infrastructure in the kingdom. modern Saudi society. They include loyalty, status, an Western brands from Coca-Cola, Nike, and McDonald's to emphasis on interpersonal relationships, the idea of Body Shop, Next, and Benetton have a significant presence approximate rather than precise time, and an aversion to Western aerospace companies such as Boeing and Lockheed any behaviour that might seem menial or servile (including have sold a significant number of alrcraft to Saudi Arabia manual labour), over the years. The Saudi market is one of the larger in the Reflecting Bedouin traditions, Saudis will often conduct Middle East. For more than a decade now, the government business only after trust has been well established has signalled that it is more open to foreign investment in process that might require (by Western standarda) a large certain sectors of the economy, although ol and gas number of face-to-face meetings. Saudis may resent being extraction is still reserved for state-owned enterprises tushed into a business decision, preferring to be discussions On the other hand, Saudi Arabia is a historically proceed in a more relaxed fashion something that conservative country where a large segment of the Westerners with their attachment to precise rather than population desires to preserve the religious values and approximate timme might find taxing Business meetings ancient traditions of the region. This can and does spillover may be long because many Saudis maintain an open into the business sector. The culture of the country has office and will interrupt a meeting to conduct other been shaped by a combination of Islam and Bedouin business, which can be traced back to the Bedouin tradition traditions. In 1744, when desert nomads populated the where all tribal members have a right to visit and petition Arabian Peninsula, the oasis-dwelling al Saud clan made their leaders without an appointment. Ghen the cultural pact with Ibn Abd-al-Wahhab. Wahhab was an intential importance attached to status, Saudi executives will not lamic scholar who sought to purify Islam and retum it to react wella foreign company sends a junior executive to is traditional bots through strict adherence to what he transact business believed were the original principles of Islam, as expressed Loyally to family and friends is a powerful force, and in the Koran. In exchange for protecting Wahhab and security and advancement may be based on family and following his teachings, Wahhab offered his backing to the friendship ties, rather than, or in addition to demonstrated ambitious al Saud family One hundred and forty years technical or managerial competence Westerners might Later, the family united the nomadic desert tres under construe this negatively a nepotism, but reflects the rule and in 1922 the Saudi Kingdom was bom romadic culture where trust in family and tribe wala Today, the strict Wahhabe set of slam still has a profound abovese Saucilities will com with family influence on Saudi cultura, something that is very visine to and friends before making a business decision, and then foreign tries For example, stones and restaurant dose may place more weight of the opinion than that at the fine del proyet times and many statants snerts who do not know in Western on such a McDonald separate The teen on to me wooded nog Saud Arabia chronic labour other Saudi society is starting to change in other important June 19, 2014, pp. 28-30, B. Mrour, Arab Countries Hoycott ways. Slowly the rights of Saudi women are being U.S. Goods over Midest policiesLos Angeles Times, tuy 29, expanded in 1964, Saudi girls were not allowed to go to 2002. p. 63, and M. Dowd, "A Girl's Guide to Saudi Arabia school, today, more than half of university students in the Vanity Fair, August 2010 kingdom are women. In 2004, Saudi women were granted the night to hold commercial business licences, a significant CASE DISCUSSION QUESTIONS advance considering the women held some $25 billion in deposits in Saudi banks and had little opportunity to use 1. What forces shaped modern Saudi culture? How or different are these forces from those that shaped the culture of them. As Saudi society evolves, women may come to play Western nations? a greater role in business 2. What kinds of misunderstanding are likely to be between Sources: G. Rice "Doing Business in Saudi Arabia." Thunderbird Canadian company and a Studenterprise, neither of which har International Business Review, anuary February 2004, pp. 59-84 experience dealing with the other A Kronementing a Working Class in Saudi Arabia f you were in a position to advise a Canadian company that Monthly tabor Review, May 1997, 29-30. Out of the was considering doing business in Saudi Arabia for the first Shadows, into the World Arols Women The Economist time, wat would your dicebe? bia Hill 2015 (3) por LUTORAND RUSINESS IN SAUDI ARABIA the in the world for semua bOn the one and the Bedouin traditions have been a strong am interiores for enterprising was in hoping Sand culture Values that were important to those proud nod and that henbled them to conto companies have long sure the harsh deart fandicape found Geen bulding frastructure in the kingdom neden Saudi society. They Indude loyalty a Balion Coca-Cola, Nike, and McDonalds to emphasis on terpersonal relationship the dea of SHE and Benetton have a significant perence apprimate rather than precise time, and an version to Free companies such as Boeing and Lockheed ny behaviour that might seem merilor servile including Sidsgeticant amber of craft to Saudi Arabia manual laboun The Sauditaket one of the larger in the Meflecting Bedouin traditions, Saudis will often condua Es for more than a decade now, the government business only after that has been well established led that it is more open to foreign investment in process that might require by Western standard a large Glors of the economy thoughol and a number of face-to-face meetings. Sauds may not being is stilreserved for state-owned enterprise rushed into a business decision, preferring to be discussions On the other hand, Saudi Arabia historically proxeed in more related fashion-something that contive Country we sent of the Westerners with the attachment to precise rather than Button desires to serve the religious values and approximate time might find ang Business meeting ancient traditions of region. This can and does spilloret may be long because many Saudis maintain an open the sector the cure of the country has office and winterrupt a meeting to conduct other ensed by Combination of Islam and Bedouin business, which can be traced back to the Bedouin tradition trains when deset omads populated the where al tribal members have a right to visit and petition modeling al Saud clan made their ders without an appointment. Given the cultural Abd Wahab Wahab was an influential importance attached to status, Saudi executives we not und warught to purifystam and return it to react wel if a foreign company sends a juniorer to at thighscherence to what he transact business the origina principles of Islam, as expressed Loyalty to fame and friends is a powerful force, and job in exchange for protecting Wahhab and security and advancement may be bound on family and Wannab oftered his backing to the friendship thes, rather than, or in addition to demonstrated Family One hundred and forty years technical or managerial competence. Westere might the nomadic desert tribes under construe this negatively a nepotism, but is the Shud Kingdom was both nomadic culture where trust in family and tribe was placed of Islam still has a profound above else Saudi executives will also consult with family Something that every to and friends before making a business deckion, and they branple, sons and restaurants dose my place more weight on their opinions than that of pray lines and many restaurants, experts whom they do not know as well as Donald's, have separate The Bedouin aversion to mental work produced and women Women in Saudi Arabia dvonic labour problem in the kingdom and foreign boat or fly a plane of companies will quickly discover that it is difficult to find i wists orantes exposed Saudi nationals who will undertake manual labour or basic nes need to keep in mind ervice work Consequently Somesh million foreign w the country with Saudin nationals reside in Saudi Arabia. These patriates, who are women traveling their own have primary from other Muslimations, such as Pakistan and des or missions Indonesia, undertake many of the men cupations that Pues has also Saudis dedin. Although ol revenues have made this social inca fiching the Stratification possible the Saudi government was nation trag potential long-term problem most 90 percent of antyprawd consumer boycotts of prate sector jobs in Saudi Arable ore ed by foreign Amourbing than consumer boycots rationals and it hastaunched a program of Sauditation The aim is to change cultural walues toward work proved how been tots against Western parte asmens and by doing so tolvoboda modern economy Sharing decade, significantly increasing So far success had been ingat best the periodontig bingdom 122 Saudi society is starting to change in other important lune 19, 2004, pp. 28-30, B. Mrou. "Arab countries Boycott wysSlowly the rights of Saudi women are being Goods over Mideas Policies, Los Angeles Times 29, expanded in 1964, Saudi girls were not allowed to go to 2002, p. 3, and M. Dowd, "A GA Guide to Saudi Arabia hool today, more than half of university students in the Vanity Faw, August 2010 com are women in 2004, Saudi women were granted the hi to hold commercial business licences, a significant CASE DISCUSSION QUESTIONS advance considering the women held some $25 billion in deposits in Saudi banks and had little opportunity to use 1. What forces shaped modem Saudi culture? How similar or different are these forces from those that shaped the cut of them. As Saudi society evolves, won may come to play Western nations? greater role in business 2. What kinds of misunderstanding are likely to rise been Srce G. Rico, "Doing Buimen Saudi Arabia Thunderbird Canadian company and a Saudi enterprise, neither which has hew, January 2004, pp. 59.84. experience dealing with the other? New Working Class in Saudi Arabia 3. you were in a position to advise a Canadian compary that Labor 1997, p. 29-30. Out of the was considering doing business in Saudi Arable for the first Vuod A Women The Economist time, what would your adike be? CULTURE AND BUSINESS IN SAUDI ARABIA Saudi Arabia is not the easiest place in the world for Bedouin traditions have been just as strong as Islamsk Western enterprises to do business. On the one hand, the values in shaping Saudi culture Values that were important oll-rich kingdom offers many opportunities for enterprising to those proud nomads and that have enabled them to businesses. Western construction companies have long survive in their harsh desert landscape-are still found in played a role in building infrastructure in the kingdom. modern Saudi society. They include loyalty, status, an Western brands from Coca-Cola, Nike, and McDonald's to emphasis on interpersonal relationships, the idea of Body Shop, Next, and Benetton have a significant presence approximate rather than precise time, and an aversion to Western aerospace companies such as Boeing and Lockheed any behaviour that might seem menial or servile (including have sold a significant number of alrcraft to Saudi Arabia manual labour), over the years. The Saudi market is one of the larger in the Reflecting Bedouin traditions, Saudis will often conduct Middle East. For more than a decade now, the government business only after trust has been well established has signalled that it is more open to foreign investment in process that might require (by Western standarda) a large certain sectors of the economy, although ol and gas number of face-to-face meetings. Saudis may resent being extraction is still reserved for state-owned enterprises tushed into a business decision, preferring to be discussions On the other hand, Saudi Arabia is a historically proceed in a more relaxed fashion something that conservative country where a large segment of the Westerners with their attachment to precise rather than population desires to preserve the religious values and approximate timme might find taxing Business meetings ancient traditions of the region. This can and does spillover may be long because many Saudis maintain an open into the business sector. The culture of the country has office and will interrupt a meeting to conduct other been shaped by a combination of Islam and Bedouin business, which can be traced back to the Bedouin tradition traditions. In 1744, when desert nomads populated the where all tribal members have a right to visit and petition Arabian Peninsula, the oasis-dwelling al Saud clan made their leaders without an appointment. Ghen the cultural pact with Ibn Abd-al-Wahhab. Wahhab was an intential importance attached to status, Saudi executives will not lamic scholar who sought to purify Islam and retum it to react wella foreign company sends a junior executive to is traditional bots through strict adherence to what he transact business believed were the original principles of Islam, as expressed Loyally to family and friends is a powerful force, and in the Koran. In exchange for protecting Wahhab and security and advancement may be based on family and following his teachings, Wahhab offered his backing to the friendship ties, rather than, or in addition to demonstrated ambitious al Saud family One hundred and forty years technical or managerial competence Westerners might Later, the family united the nomadic desert tres under construe this negatively a nepotism, but reflects the rule and in 1922 the Saudi Kingdom was bom romadic culture where trust in family and tribe wala Today, the strict Wahhabe set of slam still has a profound abovese Saucilities will com with family influence on Saudi cultura, something that is very visine to and friends before making a business decision, and then foreign tries For example, stones and restaurant dose may place more weight of the opinion than that at the fine del proyet times and many statants snerts who do not know in Western on such a McDonald separate The teen on to me wooded nog Saud Arabia chronic labour other Saudi society is starting to change in other important June 19, 2014, pp. 28-30, B. Mrour, Arab Countries Hoycott ways. Slowly the rights of Saudi women are being U.S. Goods over Midest policiesLos Angeles Times, tuy 29, expanded in 1964, Saudi girls were not allowed to go to 2002. p. 63, and M. Dowd, "A Girl's Guide to Saudi Arabia school, today, more than half of university students in the Vanity Fair, August 2010 kingdom are women. In 2004, Saudi women were granted the night to hold commercial business licences, a significant CASE DISCUSSION QUESTIONS advance considering the women held some $25 billion in deposits in Saudi banks and had little opportunity to use 1. What forces shaped modern Saudi culture? How or different are these forces from those that shaped the culture of them. As Saudi society evolves, women may come to play Western nations? a greater role in business 2. What kinds of misunderstanding are likely to be between Sources: G. Rice "Doing Business in Saudi Arabia." Thunderbird Canadian company and a Studenterprise, neither of which har International Business Review, anuary February 2004, pp. 59-84 experience dealing with the other A Kronementing a Working Class in Saudi Arabia f you were in a position to advise a Canadian company that Monthly tabor Review, May 1997, 29-30. Out of the was considering doing business in Saudi Arabia for the first Shadows, into the World Arols Women The Economist time, wat would your dicebe