Aug 17

The Impact of Ramadan on Global Business

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 1 Comment »

It’s the Maghrib hour, just after sunset, and you are sitting on a carpet in a big tent being served juices and mint tea, snacking on dates. There are lots of people around you and the atmosphere is one of fellowship and joy. Any ideas where you might be? You have been invited to an Iftar, a breaking of fast ceremony which you may be lucky to experience in the next month if you are planning a business trip to a Muslim country.

Cairo sunset clu i1 The Impact of Ramadan on Global Business

© istockphoto.com/ Clu

Ramadan started on Wednesday 11 August this year and lasts for one month. If you are doing business in countries that observe Ramadan, such as Saudi Arabia, then you may find things a bit different than the rest of the year. You may find it difficult to arrange business lunches, your Muslim counterparts might be feeling tired or irritable during meetings and shops and restaurants will usually be open only during restricted times. Bank and other services may also be interrupted regularly for prayer times during the day. Being aware of how Ramadan impacts both social life and business will help you avoid any loss of time while you are there.

People doing business in Muslim countries during Ramadan often find a lower level of productivity, increased difficulty in meeting deadlines and challenges scheduling meetings. If you are travelling to a country which observes Ramadan, you may have the honour of receiving an invitation to attend the ceremonies that take place after the fasting hours. Iftar in particular substitutes normal business lunches and being invited is a sign of trust and friendship so you should accept. People with good interpersonal skills, cultural awareness and an understanding of the social etiquette during Ramadan will be more likely to have the opportunity to be involved which can help the relationship-building process.

Doing business in Saudi Arabia or any other country which observes Ramadan requires an ability to identify and understand the expected behaviours and the appropriate topics of conversations that would engage your Muslim counterparts. Communicaid’s Cultural Awareness Training Middle Eastcourses such as Doing Business in the Middle East provide you with the necessary knowledge and understanding to overcome any cultural barriers. Cross cultural training also helps you to develop the skills to be able to learn and recognise crucial factors such as respecting face and status when trying to create new business relationships with counterparts in other cultures.

Although a lot of things may appear closed during this period, not everything is dormant during Ramadan. For example, the Holy Month is a peak season for sweet shops, with sales increasing up to 30%. Some telecommunication companies have also adapted their products for the Muslim market by adding special features such as Islamic chants, videos and ring tones relating to Ramadan.

Another successful initiative was started by Samsung who has agreed to give part of its profits to a humanitarian organisation every time certain products are purchased during Ramadan. “The Holy Month is the perfect opportunity to demonstrate the company’s commitment to corporate social responsibility and ongoing dedication to helping those in need”, said the head of Corporate Marketing at Samsung.

Being able to relate to the cultural values of a specific market and showing respect towards them will open many oportunities for your business. Building effective business relationships is one of the pillars for doing business in the Middle East successfully, so Ramadan could be the perfect time to approach new ventures. Provided that your cultural understanding is strong, you will find plenty of opportunities to build relationships with your Muslim counterparts during Ramadan.

© Communicaid Group Ltd. 2010

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Apr 28

Intercultural Business Etiquette: Knowing When to Socialise and When to Get Down to Business

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 1 Comment »

As more and more people work in the global marketplace, the challenges of working across cultures are being increasingly recognised. How to lead successful global negotiations, how to communicate effectively with international counterparts and how to lead across cultures have become key concerns for international businesses.

While it is extremely important to understand the above business elements of working effectively across cultures, we cannot forget about the social aspect of international business. The ability to socialise in an intercultural environment is crucial to the success of many international business endeavours, particularly in cultures where relationships are essential.

Businessdinner2 i Intercultural Business Etiquette: Knowing When to Socialise and When to Get Down to Business

© istockphoto.com/webphotographeer

 

Socialising as a professional activity might sound pretty simple to anyone with experience of doing business. However in many cultures, the first step of finding the right time or place to socialise can already be an issue if you are not familiar with the culture. In some cultures, for example, you might be expected to build relationships with your counterparts in the professional environment while in other cultures you might be expected to spend some time outside of work socialising in order to build trust.

For instance, when doing business in Panama or living and working in Saudi Arabia, you will often find that your counterparts do not make a clear distinction between their professional and personal relationships. You may hear conversations vary from business to personal or you might receive an invitation from a colleague to attend a family event, which you should kindly accept. On the contrary, when doing business in Germany or Belgium you might find that your counterparts prefer to keep their private sphere separate from their professional environment. Conversation rarely touches on any personal issues and most people will go their separate ways at the end of the day.

The impact of socialising on business negotiations can be quite significant in some cultures. Even though your Belgian counterparts might restrict your relations to the professional sphere, they will still appreciate getting to know you before discussing any business negotiation. When doing business in China, you will often be expected to spend time outside of work socialising with your Chinese counterparts to build trust and a relationship before discussing business. This is particularly true if you are doing business in China as they will want to show you an immense amount of hospitality as their guest.

No matter where you are doing business, it’s important to understand when, where and how to socialise with your international counterparts. Cross cultural awareness training can help give you an understanding of what topics are appropriate, how to greet people or when to socialise with your international counterparts. Programmes such as Intercultural Training Japan or Cross Cultural Training India will give you the knowledge and skills you need to make the right impression, avoid embarrassing faux-pas and take advantage of valuable opportunities to build trust with your international counterparts.

© Communicaid Group Ltd. 2010

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Apr 27

Challenges of Doing Business in Saudi Arabia

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

Mecca salem i Challenges of Doing Business in Saudi Arabia

© istockphoto.com/salem

A kingdom built upon and unified by Islam, Saudi Arabia, with its vast plains and endless deserts has fascinated travellers for centuries. Occupying nearly 80% of the Arabian Peninsula and the largest exporter of petroleum in the world, Saudi Arabia hosts a series of buzzing and successful cities. A monarchy with a rich Arab and Muslim heritage, Saudi Arabia is also characterised for its high degree of cultural homogeneity.

Cross-cultural training courses such as Living and Working in Saudi Arabia increase an organisation’s awareness and understanding of some of the potential cultural differences which may act as stumbling blocks for companies working in Saudi Arabia. Intercultural Training Middle East programmes ensure that all concerned create strategies for drawing benefits from these differences.

The following are five of the key cultural concepts international organisations face when setting up or doing business in Saudi Arabia.

Communication Style – Differences in communication styles can often be a cultural challenge and as a result, international organisations doing business in Saudi Arabia without adequate briefing may often find themselves feeling confused and frustrated. The communication style in Saudi Arabia tends to be quite indirect and high context. In other words, this means that communication styles in Saudi Arabia tend to rely more heavily on body language and other non-verbal cues such as tone of voice and the use of silence. When doing business in Saudi Arabia, it is wise to remember that information is rarely explicitly stated, silence is often used for contemplation and a direct “no” is almost never used.

Islam – Islam touches many aspects of society within Saudi Arabia. The country is governed on the basis of Sharia (Islamic Law) and a great majority of the population are Arabs who adhere to the Wahhabi sect of Islam. Islam shapes the values and rules concerning the appropriate way to behave and relate to family, community and business. As a result there are customs and social duties that affect the Saudi Arabian business world and affect the way business is dealt with. In the world’s current climate, several stereotypes are prevalent concerning Islamic faith and therefore 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.

Relationships – Personal relationships are a fundamental aspect of Middle Eastern culture. People take a sincere interest in each other and invest a lot of time in getting to know others. There isn’t a clear line of distinction between business and personal relationships which means that one is quite often used to further the interests of the other. People tend to prefer getting to know a person before trusting them in business. When doing business in Saudi Arabia, remember that a huge emphasis is placed on networks and refusing requests made by friends is often considered rude. Great pride is placed in hospitality with which a person’s character is measured, take advantage of this opportunity to develop personal and professional relationships.

Attitude to time – Although punctuality is expected of foreigners, business in Saudi Arabia has a more flexible attitude towards time and business meetings tend to be less structured in nature. However, it is rare for meetings to intrude on daily prayers and equally, when doing business in Saudi Arabia, considerations must be made to schedule business meetings in a way that does not interfere with prayer times. 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.

Hierarchy – Saudi Arabian culture places great emphasis on dignity and respect. Younger people are expected to display this respect to their elders by using the appropriate titles and levels of deference. Within business, leaders distribute power from the top and only those in senior positions have decision making capacity. When entering a room or greeting your Saudi counterparts for the first time you should approach the most senior person first.

In many ways, Saudi Arabia remains a sensitive region in terms of economy, religion and culture. Although an important first step, it is not enough to simply recognise the intercultural differences that exist when doing business in Saudi Arabia. International organisations must also strive to comprehend the reasons behind cultural challenges in order to be able to exploit differences to create benefits. A Cross Cultural Training Middle East course such as Doing Business in Saudi Arabia will help organisations develop strategies to maximise the potential of doing business in Saudi Arabia. Moreover, intercultural training will contribute towards the development of an interculturally competent workforce, a definite advantage in today’s fiercely competitive global business environment.

© Communicaid Group Ltd. 2010

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Apr 06

Benefits of Doing Business in Saudi Arabia

Cross Cultural Training, Culture, Culture training for Business & Management, Culture training for Human Resources 1 Comment »

The Kingdom of Saudi Arabia is the largest of all the Gulf States. The Kingdom of Saudi Arabia in its modern form dates back to 1932, when the states of Nejd and Hejaz united under the first king of Saudi Arabia, Abdul Aziz Ibn Saud. Oil is at the centre of Saudi Arabia’s wealth and accounts for around three quarters of the entire economy.

Saudi Arabia’s identity is intertwined with a devout and complete adherence to Islam. The Islamic religion has shaped Saudi culture and customs; in fact the Saudis are the custodians of Islam’s holiest cities, Mecca and Medina.

Arab businessman monkeybusinessimages i Benefits of Doing Business in Saudi Arabia

© istockphoto.com/monkeybusinessimages

 

Organisations doing business in Saudi Arabia and individuals looking to invest in Saudi Arabia will be able to take advantage of a number of key benefits of doing business in Saudi Arabia. Maximising some of the key benefits outlined below requires a sound understanding of Saudi business and social culture, values and attitudes and communication styles which you can gain from a Doing Business in Saudi Arabia cross cultural training program.

Ease of Doing Business
According to the World Bank, Saudi Arabia was rated 13th out of 183 countries in terms of general ease of doing business in 2009. This is an encouraging sign for those organisations doing business in Saudi Arabia, the largest of the Gulf States.

A Shift Away from Nationalisation to Privatisation
In recent years, Saudi Arabia has experienced a shift in its national business model. There has been an increase in privatisation and the corporatisation of companies. This has created a positive environment for the import of consultancy services from abroad. The shift from a nationalised to privatised business model means that Saudi Arabia is rapidly becoming a profitable place for doing business and setting up operations.

A Reinvigorated Political System
In 1995, a consultative body was formed for the kingdom, known as the Council of Ministers. Moving towards a cabinet-style government, the Council is made up of ministers who are allocated specific responsibilities. Under the confines of the Sixth Development Plan, economic development has been split into key macroeconomic goals. This may, in time, lead to further liberalisation of the economy.

Saudi Arabian business culture is complex and influenced by age-old customs and traditions which have forged a nation out of the desert. Participating in a cultural awareness training program such as Communicaid’s Doing Business in Saudi Arabia will help your employees to understand local customs and business habits and give your organisation an advantage when doing business in Saudi Arabia.

© Communicaid Group Ltd. 2010

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Mar 10

Does your culture distribute power equally? A cross cultural theory on Power Distance

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

One of Geert Hofstede’s five cultural dimensions is power distance which looks at the degree of equality between people in a society.  According to Hofstede, the power distance index shows the extent to which people perceive inequality as normal in an organisation or institution.

In countries with a low power distance like Austria, Denmark or New Zealand, egalitarian attitudes are preferred and decisions are made cooperatively.  Conversely, in countries which have a high power distance such as Malaysia, Saudi Arabia or South Korea, a more formal and vertical hierarchy exists in most areas of society including business.  In Europe, power distance tends to be lower in Northern countries and higher in Southern and Eastern countries.

The table below shows some key differences between cultures with a high power distance and low power distance.

High Power Distance Low Power Distance
Inequality is accepted Inequality is minimised
Rigid, authoritative structure More flexible structure
Centralised decision-making Collective decision-making
Those in power have privileges All have equal rights
Respect for authority Respect for individuality

Cultural awareness training programmes such as Doing Business in Japan or Working Successfully Across Cultures look at the impact of power distance on business both in specific countries and on a global scale. A familiarity with this dimension will give you an improved understanding of decision-making processes as well as management styles around the world and how to adapt to them.

© Communicaid Group Ltd. 2010

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Feb 22

Camels on a Catwalk: Cultural Differences in the Concept of Beauty

Cross Cultural Training, Culture, Culture training for Business & Management No Comments »

A recent BBC news article describes how in the Middle East whole families attend beauty contests held in the middle of the desert. These, however, are not beauty contests as you might know them where glamorous models parade on a catwalk like in Paris, London or Milan. Instead, these are beauty contests attended by Saudi families who come to admire camels.

These camel beauty contests, also known as camel competitions, can be huge events which attract hundreds of families in the Middle East who all come to watch, buy or sell camels. This year the competition was so big there were over 28,000 camels being presented.

istock 000003344979small1 300x199 Camels on a Catwalk: Cultural Differences in the Concept of Beauty

©istockphoto.com/Klaas Lingbeek- van Kranen

Owning camels in the Middle East can be a sign of prestige and wealth. This is particularly true if the length of the camel’s neck, the firmness of its ears or the colour of its skin are right making it worth more than $2 million in some cases.

At such a price, camels can unsurprisingly be considered a status symbol for whoever can afford one. As such, Saudi families fiercely bid against each other to buy the most beautiful camel on display in the same way Europeans might bid for a Van Gogh canvas.

Understanding cultural traditions like this and being aware of the impact they may have on individuals is extremely important when doing business in the Middle East. If your Middle Eastern colleague proudly tells you his brother or uncle is the owner of a herd of camels, it’s important you recognise this is as a marker of status and wealth. In hierarchical societies like Saudi Arabia or the UAE, respect is an invaluable asset shown to those with status gained through wealth or family connections.

This is just one Middle Eastern tradition that might impact your business counterpart’s behaviours and attitudes. A cross-cultural training programme such as Doing Business in the Middle East will help you understand a plethora of other cultural customs. By simply being aware of some of these cultural customs, your ability to build relationships with your counterparts in the Middle East will improve and your understanding of the culture will help you be more successful doing business in the Middle East.

© Communicaid Group Ltd. 2010

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