padlet.

com/nguyenthiquynhngacs2/ol3epmjjzebg4jvb

IB course
Made with fortitude
NGUYỄN THỊ QUỲNH NGA AUG 10, 2021 01:00AM

Saudi Arabian Airlines does this in the rear

of its planes, the British retailer Harvey
Nichols in its department store.
Your non-Saudi employees would want to
take frequent breaks away from the
country. This may have to be worked into
your employment negotiations.

Nhóm Chợ Nhỏ

Another team:
1. Saudi Arabia is a high context culture. 
In Saudi Arabia there is less emphasis on legal Question 1:

paperwork and greater focus on personal Some info must be noted in order to sucessfully investigate the
negotiation.  feasibility of selling the product:

Saudis will not take well to pressure tactics that 1.        The members in team should be 3 Saudi Arabians: it would
place them in an uncomfortable position. be easier to investigate the S.A market and understand the
Confrontation and conflict are to be avoided. cultures and other important factors in that country's business
Finally, understanding Islam, which governs every or life

aspect of a Muslim’s life, enhances how and why 2.        Compare the characteristics of the product whether it
Saudi business people act or behave in a certain matches the demand of citizens and values of the nation:

manner. -        Product is not accident insurance (ragarding to Islam law)

The Saudi port of Jeddah, having long experienced or alcohol, medicine

more external contact than the rest of Saudi -        No religion offense or one-side religion – gender
Arabia, has a more liberal attitude toward dress (especially female) preference

than the interior.  -        Acknowledge difference in culture, gender roles,

There are almost seven employed men for every outstanding behaviours of separate areas: holi cities, liberal and
employed woman in Saudi Arabia, and women are conservative groups of people

excluded from driving and from certain 3.        When investigate: gradually approach – build relationship
professions.  and no suddenly jump to the business talking without get
The process of conducting market research for acquainted with citizens and build the trust on the local people
the Java Lounge, researchers depended on several first.

non-verbal cues to deduce who was affluent.  --> Only when you get a thorough understanding can your
2. Because Muslim men are called to prayer five times a day, business be easier, it also provides opportunities to lower the
business will normally cease operation during those risk of wasting your company resources on testing the products.

periods. 
Many companies convert  revenue-generating  Question 2:

space  to  prayer  areas.  - During fasting days, no businesses can operate. Also, Muslim
Potential Saudi customers to be punctual and give men are called to prayer five times a day, business will normally
them their undivided attention; in fact, the reps’ cease operation during those periods.

compensation system discouraged them from => convert  revenue-generating  space  to  prayer  areas

spending much time on each business => Reduce operaton time (only in the evening during holy period
transaction.  of Ramadan)

There are sometimes backlashes about accepting - Increasing facility design cost to hide women’s face, to
English as an operating language distinguish space between men and women

You may have to budget something for "controlled - Some additional business operation cost: Pay additional air
housing". travel cost for men to accompany women.

Education for expat will cost. - Saudi forbids charging and selling accident insurance (strict
For example:  doctrine holds there are no accidents, only preordained acts of
God)

=>  there is a strong chance it will be a costly mistake in the

long run.
carries many of the same meanings as in the West.

- Local business culture revolves around personal relationships,

- Saudi is a family-centered society where trust of others is consensus, and cohesion of the unit; whether that’s family,
highly correlated with the degree of familiarity with them. extended family, or business. Who you are, and who you know
Because most  Saudi  businesses  have  historically  been  family  (which is known as "wasta" in Arabic), are important in business
owned  and  operated, it will take times and cost to develop a circles here. Time spent getting to know, and gaining the trust
certain level of friendship before ever turning to business of, business associates is time well spent. Understanding the
details.
unique interplays, and influences, between the families (tribes)
in Saudi society is also useful. It might take many meetings, both
- Cost of organising training for staffs about Saudi cultures
formal and informal, to make any tangible business headway.

Saudis spent too much time in idle chitchat and would even turn Question ：2-2：Assume your company is from North America
their attention to personal acquaintances rather than continue or Europe and considering the establishment of an office in
with business.
Saudi Arabia. What additional operating costs might it have to
=> takes time
assume because of the Saudi culture
？
=> the partner should be trained and be patient for such ：
Answer

situations
- Muslim men are called for prayer five times a day. So, business
operations will cease its operation during these period.
Moreover, many companies even convert  revenue-generating 
space  to  prayer  areas.

- The cost to redesign the company's logo, poster,... in order to

The only 1 not display women's faces

- Your employer should cover the cost of your residence permit.

The total fee depends on the percentage of Saudi nationals that
What advice should you give them to help assure that cultural your company employs.

problems do not impede their success in this task

？ + If more than 50% of employees are Saudi nationals, the overall
Answer Saudi Arabia is a high context culture; information fee will be SAR 7,200. This is made up of SAR 750 for the Iqama,
resides in context, with emphasis on background and basic SAR 6,000 for the work permit, and SAR 450 for insurance.

values. In Saudi Arabia there is less emphasis on legal paperwork + If the company has more than 50% expatriate workers, the fee
and greater focus on personal negotiation. Saudis will not take rises to SAR 8,400, with the work permit fee increasing to SAR
well to pressure tactics that place them in an uncomfortable 7,200. The government reviews these fees on a regular basis.

position. Confrontation and conflict are to be avoided. Finally, - Basically, non-kin males and females may interact personally
understanding Islam, which governs every aspect of a Muslim's only in “open areas,” or in “closed areas” when the females are
life, enhances how and why Saudi business people act or behave accompanied by a male relative. However, applying this
。
in a certain manner
restriction may seem a bit confusing to outsiders. For instance,
- Try to avoid discussing business during Ramadan in the Middle restaurants are considered closed areas, and proprietors must
East. Muslims get up very early and begin to pray from sunrise maintain separate dining rooms and entrances for men without
to sunset, and during this time they fast, abstain from drinking female companions.

and smoking. In business, this ritual is fully performed or not - Economic factors blend with cultural ones as well, such as
completely depends on the nature of the work of that company companies incurring the cost of providing separate entrances
or organization.
and toilet facilities.
- There are two main festivals to note, namely Eid al-Fitr - Women are limited in traveling abroad on company business
immediately after Ramadan and Eid al-Adha immediately after because they need permission from their male relatives. Some
the annual pilgrimage. These holidays usually last about three multinationals ease this problem by paying the travel costs for a
days although the government does not want to prolong it. male relative to accompany a woman abroad.
Therefore, it is best to avoid conducting business on or near
these two Edi.
- Saudi Arab is  a family-centered society where trust of others
is highly correlated with the degree of familiarity with them. The
process of partnering is usually lengthy because Saudis take
time to know the foreigners well and are reluctant to make full
financial disclosures outside the family. They generally prefer to
Anonymous Team
get to know you well, perhaps invite you into their homes, and Question 1: Business managers should pay attention to those
develop a certain level of friendship before ever turning to following concerns to assure the success of the firms’ operation
business details.
in Saudi Arabia:
- When doing business in the Middle East, a long handshake and Communication styles in Saudi Arabia tend to rely more
hold is still common. Islamic etiquette teaches that the right heavily on body language and other non-verbal cues such
hand should always be used for a handshake and that a person as tone of voice and the use of silence. When doing
should only remove his hand from the other when he or she business in Saudi Arabia, it is wise to remember that
withdraws it first. The should you do not also if hand but being information is rarely explicitly stated, silence is often
kept in when still going to that you can go. Fing the hand used for contemplation and a direct “no” is almost never
between the people are here to all the normal and it is not used.
 Saudi Arabians are generally relationship-oriented and, as
trust is a fundamental principle =>Spending time
getting to know, and gaining the trust with local business
representatives. Moreover, flexibility, open-mindedness,
and a calm demeanor during meeting are also very
important.
Attitude towards time: Although punctuality is highly
expected of foreigners, business in Saudi Arabia has a
more flexible attitude towards time and business
meetings tend to be less structured in nature.
Furthermore, it is important to remember that the
working week begins on a Saturday and ends on
Wednesday with Thursday and Friday being the official
days of rest.
Getting to know about Islam: When doing business in
Saudi Arabia it is important to reserve time to research
Islam yourself. Ignorance as to how Islam influences
business and every day life could damage relations.
Dress Code: The Saudi Arabian dress code is monitored
by the regional police, who are responsible for the
enforcement of a modest dress-code in accordance with
Islamic law => You must dress in a conservative, smart
fashion, ensuring that most of the body is covered.
Women should wear long skirts, sleeves at elbow length
or longer and necklines that are not revealing
Question 2: Some kinds of additonal cost of opperating
companies in Saudi Arabian
Some multinationals ease the problem of not allowing
females workers to travel abroad for company business
by paying the travel costs for a male relative to
accompany a woman abroad;
Make it easy to ask for visa for female workers by
increasing investments of MNEs to Saudi Arab countries;
There is potential additional cost if the location of the
office is in an area that has not fully transitioned to
mixing men and women in the workplace;
During the holy month of Ramadan, hours of operations
are shortened. During this month, western businesses
also tend to avoid visiting the country at this time;
The Islamic religion calls for prayer five times a day.
“Many companies convert revenue-generating space to
prayer areas”. This results in a loss of business for those
times of day and should be considered discussing
operational expenses. Along with a loss in business,
companies may look to build separate areas dedicated for
prayer services.
In Saudi, the locals do business with individuals they
know and trust -> which leads to the more effort of the
corporation put more on marketing, develop network or
connection, publicity with people in local business in
order to be more successful in the Saudi market.
YĐHC
2.1
Saudia Arabia has a high-context culture, Islam is the
main religion in Saudi Arabia -> Need to research carefully
the customs, norms, special holidays, notable traits... ->
observe the reactions and behaviors of other MNCs to
deal with those issues (McDonald's avoid hoping in
mornings of fasting days, Starbucks adjusting their
logos...); avoid cultural conflicts, minimize pressure
tactics, be mindful about dresscodes
Focus on building trust and connection with business
partners: focus on communication style, language,...
because Saudi people are relationship-oriented and
prefer building trust and getting to know the foreigners
well before making any business deals
The group should have both male and female salespersons
in order to reach both male and female targets
2.2
Praying is very important in their culture (for example
Muslim men are called to prayer 5 times a day,...) -> new
business should have prayer areas or not conducting
meetings during those periods
Cost for redesigning logo should the logo be inappropriate
Interest-free loans
Separate spaces for male and female
Training cost
Additional cost for a male relative if the company send a
female worker abroad
Cộng Đồng
2-1
- Firstly, it is advisable to avoid confrontation and conflicts as
much as possible. According to the case study, although in Saudi
Arabia there is less emphasis on legal paperwork and greater
focus on personal negotiation, Saudis cannot take it well to
pressure tactics, in which they are placed in an uncomfortable
position.
 
- Secondly, when doing business with Saudis business,  it is
necessary to take everything slowly and not to rush. According
to the case, the process of partnering is usually lengthy because
Saudis take time to know the foreigners well and are reluctant to
make full financial disclosures outside the family. They generally
prefer to get to know you well, perhaps invite you into their
homes, and develop a certain level of friendship before ever
turning to business details. In addition, it’s quite hard to conduct
an extensive research in Saudi Arabian Ordinarily,  it  can  be 
difficult  to conduct  such  research  in  Saudi  Arabia as strict
restrictions on male-female interactions restrain family-focused
interviews. In this case, however, consultants can easily
interview affluent families by approaching them in restaurants
after noting how they comport themselves, whether they wear
custom-made versus off-the-rack robes, what quality of
wristwatches show beneath long sleeves, and how well the men
keep their beards—all indicators that researchers from outside
the society would probably overlook.
 
 
- Finally, it is recommended to understand well Islam, which
governs every aspect of a Muslim’s life. This way could help to
enhance how and why Saudi business people act or behave in a
certain manner.
  This results in a loss in business for those times of day and
2-2. According to the case study, Muslim men are called for should be considered discussing operational expenses.

prayer five times a day (Namaz). So, business operations will bear - Along with a loss in business, companies may look to build
an additional cost, in our opinion, not only time but also separate areas dedicated for prayer services.

efficiency (or profitability) during these periods. Besides, they
need a different branding strategy to attract Saudis attention.
For example, the logo may change a little bit if the logo has any
women symbol
 
- Gender roles also affect the workplace. Women are not
allowed to travel abroad without the permission of a male family
member. Even with permission, women are required to have a
male escort. Companies will even pay the travel costs for a male
relative to accompany a woman abroad.

Moreover, companies may be forced to impose policies for - There is also potential additional cost if the location of the
female workers. Saudi women are limited in traveling abroad on office is in an area that has not fully transitioned to mixing men
company business because they need permission from their and women in the workplace.

male relatives. Some multinationals ease this problem by paying
the travel costs for a male relative to accompany a woman
abroad.
business hours will have a strong effect on a Saudi business.
In addition, There is a high chance of losing a large amount of
money if any undesirable risks/ accidents happens and no
insurance  cover these loss as Saudi forbids charging and selling
accident insurance (strict doctrine holds there are no accidents,
only preordained acts of God)
Butterfly Players
Q1: The team should be knowledgeable about the cultural
characteristics of Saudi Arabia to avoid problems:
- During the holy month of Ramadan, hours of operations are
shortened. During this month, western businesses also tend to
avoid visiting the country at this time. Less business during less
- Pay for training sections in order to comprehend both Saudi
and the Company’s culture
Thùy Liên và Nguyễn My năng động sáng
tạo
Question 1
Point 1: When investigating, make sure that your products
cater to your consumers’ needs and that it does not violate or
offend their culture. For example: 

- Saudi Arabia is a relationship-focus (RF) culture. A family- About the places for businesses: Many companies
centered society where trust of others is highly correlated with convert  revenue-generating  space  to  prayer  areas

the degree of familiarity with them; most Saudi businesses have About the kind of products: Religious proscriptions
historically been family owned and operated; they tend to turn prohibit the sale or use of pork products  and  alcohol.  

up late and spend most of the time on chit chat.

About the time for working: Because Muslim men are
- A masculine culture: Women’s role has been to be virtuous, called to prayer five times a day, restaurants such as
McDonald’s dim their lights and close their doors during
marry young, and have offspring, while males take responsibility
as their protectors and the family breadwinners. 
those periods. Many companies convert  revenue-
- Power distance: The power distance level in Saudi Arabia is generating  space  to  prayer  areas. 

one of the highest in the world. Saudi Arabians believe that

obeying your superiors and supporting your government is of Point 2: Apart from investigating the products, the team

the utmost importance. Subordinates expect to be told what to should also research the working process that should be
do.
applied in Saudi. For example: 
In Saudi Arabia there is less emphasis on legal
- The team should also understand Islam, which governs every
aspect of a Muslim’s life, enhances how and why Saudi business paperwork and greater focus on personal
people act or behave in a certain manner. Religious negotiation.They will not take well to pressure tactics

proscriptions prohibit the sale or use of pork products and that place them in an uncomfortable position →
alcohol. Therefore, the team should not consume products made Confrontation and conflict are to be avoided 

from pork or alcohol.

Saudis tend to focus on building strong personal
- During the holy period of Ramadan, when people fast during relationships as a condition to advance further to
business relationships.
the day, restaurants serve customers only in the evening. Hence,
the team should frequently check for the holy period to prepare
and have meals at their accommodation instead of finding Point 3: Government policies should also be considered. 

restaurants.
Government eliminated prohibition against accident
insurance because Saudi businesses, like business

Q2: Assume your company is from North America or Europe and elsewhere, need coverage => safety for the businessmen
considering the establishment of an office in Saudi Arabia What
Point 4: Pay attention to interaction ways in Saudi for a higher
additional operating costs might it have to assume because of the
Saudi culture?
quality of investigation output. 
Expected additional operating costs:
Face revelation: if your employees are women -> it is

- The Islamic religion calls for prayer five times a day. “Many advised to wear head scarves or else they are likely to be
companies convert revenue-generating space to prayer areas.” admonished by the government.
 Interaction limitation: women are only allowed to
interact with men in “open areas” or in “closed areas” but
with a male relative -> difficulty in market research
(interviewing).
Gradual increase in years of study and curriculum offered
for females, increased use of education, balance between
men and women within the workforce => quality
responses in market research, employee sources in the
future for operating business
Question 2
Saudi women being in direct contact with men might
tempt promiscuous behavior, so for positions that
require having a female worker and interact a lot with
other, businesses have to hire women from other Arab
nations or Americans/Europeans => cost more.
In Saudi Arabia, appointments seldom began on time and
usually took place at local cafés. Saudis spend too much
time in idle chit chat => cost of selling when meeting
with customers (time, money). As far as they were
concerned, Saudis spent too much time in idle chit chat
and would even turn their attention to personal
acquaintances rather than continue with business.  to comprehend both Saudi and the Company’s culture.
Redesigning logos and images to cover women’s faces
The process of partnering is usually lengthy because
Saudis take time to know the foreigners well and are
reluctant to make full financial disclosures outside the
family.
Visas for single women to enter Saudi Arabia were nearly
unobtainable
Male and female employees within the public sector work
in separate buildings. When they must meet together,
they do so within meeting rooms in the Governors office,
where they must use separate entrances -> Cost of
construction different spaces
Muslim men are called to prayer five times a day,
restaurants such as McDonald’s dim their lights and close
their doors during those periods. Many companies
convert revenue-generating space to prayer areas; Saudi
Arabian Airlines does this in the rear of its planes => This
shows the importance of Saudi Arabia's culture in their
life.
NCGDN
Question 1:
Before releasing a product or entering the market, culture is a
crucial issue to consider. There are some main issues
concerning with the Saudi Arabia's culture that the team needs
to clarify.  direct exposure of women and men
1. A high context culture in which people make decisions
and act in response to their surroundings.  correlated with the degree of familiarity with them. Most  Saudi
2. They cannot be brought to work under duress or with a
conflicted attitude. They dislike being put in an
uncomfortable situation.  know  well  even  though  others  might  be  better  qualified.
3. They want to be respected and valued, and they want to
avoid situations that could lead to conflict or
confrontation.
4. They strictly adhere to Islam and base their decisions on
it, whether on professional or personal grounds. 
It is important to consider whether the products your company
sells contain ingredients related to pork and alcohol because the
religious views of Saudi Arabia prohibit the use of pork and
alcohol products. 
Need to find out which areas are less conservative, do not
have more regulations suitable for trading. For example
in the port city of Jeddah, which has more contact with
foreigners and is less conservative, dress codes are more
relaxed and fewer women wear them. 
Question 2: 
The culture of Saudi Arabia Business operations is
governed by the collectivist aspect of the society. This
means that the locals do business mostly with individuals
they know and trust. => Thus the corporation will have to
spend more money on marketing, publicity, and
familiarization with local businesspeople in order to
succeed in the market.
There is a potential additional operational cost if the
location of the office is in an area that has not fully
transitioned to mixing men and women in the workplace.
Also they might have to pay for training sections in order
The Islamic religion calls for prayer five times a day.
“Many companies convert revenue-generating space to
prayer areas.” => This leads to a loss of business during
particular times of day, and operational expenses should
be taken into account. Companies may look to build
separate areas dedicated to prayer services in addition to
a loss of business.
Gender roles have an impact on the workplace as well.
Women are not permitted to travel outside of the
country without the consent of a male family member.
Women must have a male escort even if they have
authorization. => Companies will even pay for a male
relative's travel expenses to accompany a woman abroad.
Lastly, the partnership with Saudi companies may cost
extra time and extra money as Saudis take time to know
the foreigners well and are reluctant to make full
financial disclosures outside the family. They generally
prefer to get to know you well, perhaps invite you into
their homes, and develop a certain level of friendship
before ever turning to business details.
Sixy
1. Main issues need to be concerned
- Religious: prohibit the use of pork and alcohol; restaurant only
serve in the evening and should customize to have a space for
prayers; women usually have to wear niquabsquabs; avoid the
- AS is a family-centered society where trust of others is highly
 
businesses  have  historically  been  family  owned  and 
operated,  preferring  to  hire  family  members  or  people  they 
Saudis’  preference  for  dealing  with  people  they  know  has 
led  to  a  system  known  as  wasta,  which  roughly  translates 
into  English  as  “connections.” Who  you  know  helps  a  great  them, you should bring in a qualified interpreter. You
deal  in  almost  everything, such as moving a résumé to the top
of a pile, gaining approval of a zoning request, getting a passport,
and obtaining a visa to bring in a visitor from headquarters.
disrespect them for not knowing English. Rather, learn a
- Greeting: Men shake hands when they greet each other. When
entering a meeting a meeting full of people, a Saudi will take the
time to greet each person individually, with a handshake, whilst
standing. The same is expected of visitors. Although not
required, learning some Arabic greetings are appreciated, even if
you struggle with the pronunciation. You may see good friends
greet each other with both a handshake and a kiss on each
cheek. This is unlikely something that you will be required to do.
Men and women do not shake hands or greet each other in
public if they are outside of the family and traditionally were not
part of business meetings. However women in business are
becoming more common in Saudi Arabia; to avoid awkward
situations, wait to see how they greet you and respond in the
same manner.
offense. Take a respectful approach each time you want
- Negotiation: Business decisions are made slowly and the
process can not be rushed. It can often take a few meetings
before one is made. Business is hierarchical. Decisions are made
by the highest ranking person but can take several different
people to approve before this person is reached. Saudis are
tough negotiators and when discussing price, will often make an
initial offer that is extremely low if they are buying. Conversely,
when they are selling, their initial offer will be extremely high.
Repeat your main points when negotiating, since it will be
interpreted as you are telling the truth. Do not become pushy or
use hard tactics at any point during negotiations.
sector (medical), demographic background (upper class,
- Build relationship: do not approach straightly into business
when not even getting acquainted with citizens and build the
trust with the people there
2. Some additional operating costs my company might have to
assume because of the main religion of Islam and the rights of
women:
- Loss of company caused by lower productivity of worker
during in the holy month
business
- Extra cost for remake logo, poster suitable to Saudi culture
Consider cultural aspects in building brand image: have
- Added cost for gender segregation requirements in some
environments
logos…) -> Marketing costs
- Cost of needing a Saudi sponsor to enter the country for
reasons of acting as an intermediary and arranges appointments
with appropriate individuals 
recruit workers willing to work in Saudi Arabic's cultural
- Cost of training for staffs about Saudi culture and business
etiquette
Dream Team
Q1:
Influence of Islam: the Islamic religions influences every
aspects in everyday life of Saudi Arabia, it is worthwhile
to take into consideration cultural implications and how
they affect everyday life as well as demographic
characteristics of citizens here.
Business manners: Language: The official language of
Saudi Arabia is Arabic. It is spoken in all the countries in
the Arab world. Keep in mind that not a lot of people in
the country would know English. So, if you wish to talk to
should also get all of your business documents translated
in advance so your hosts can go over them easily. Don’t
few Arabic words to impress them. Gain Trust: If you
want Saudis to do business with you, you should gain
their trust first. They prefer to build relationships with
people and don’t decide to enter into a partnership
straight away. So, be patient and continue to respect
their boundaries. Saudis spent too much time in idle chit
chat and would even turn their attention to personal
acquaintances rather than continue with business. Don’t
be afraid to open up to them. Meeting rules: Always plan
meetings in advance. And if the Saudis run late, don’t be
offended. But keep in mind that you should always be on
time if you don’t want to offend your hosts. Don’t criticize
someone directly during a meeting as they will take
to discuss something. Place for meetings: Saudis prefers
meeting takes place at local café so spending money here
for meeting may impress them
Cultural binding for women: on working in the local
environment, make sure your team have contact with
local female in a proper way (example: women on public
activities must be accompanied by men; on approaching
women in public for inquiry, consider appropriateness)
How cultural aspects evolve: cultural aspects generally,
e.g cultural limitations to women. Women in certain
urban areas, etc) will have higher chances to have more
relaxed cultural obligations => characteristics of women
(consequently, their family/community/etc) will differ
across Saudi Arabia
Q2:
Praying  practice: Muslim men are called to prayer five
times a day -> Praying plays an important role in lifestyle
of Saudi Arabian - which may affects cost of doing
to adapt due to religious factors (Change in trademark,
Costs of doing business in Saudi Arabia: 1. Additional
costs for expat workers in Saudi Arabiic: will have to
environment and provide training for staff abt cultural
aspects. 2. Additional costs for female workers: paying
the travel costs for a male relative to accompany a
woman abroad: Saudi women are limited in traveling
abroad on company business because they need
permission from their male relatives -> Paying for male
relative in order to get permission. 3. Costs for additional
facilities for cultural suitability: additional entrances,
workplaces, etc for women
Networking cost: the locals do business with individuals
they know and trust -> Spend time and money to build
relationship with local individuals
※※※※※※