1. MIDDLE EASTERN BUSINESS CULTURES AND APPROACHES TO MANAGEMENT Varvara, Iry, Abhisit, Rayhan, Jack Group 4

2. TABLE OF CONTENTS  Introduction  Relevant theory  Example countries  Approaches  Comments  Conclusion

3. Introduction The role of cultures in business:  Reflects of market  Tool of communication  Competitive advantage

4. Middle East

5. Edgar Schein's model of culture Artifacts Espoused Values Assumptions

6. Artifacts  Visible elements in a culture.  Recognized by people.  Might not be able to fully understand.

7. Middle Eastern Business Culture Understanding the Middle East’s Reality verses its Perception  Business Referrals / Introduction  Business is Personnel  Time is NOT of the Essence  Selecting a Local Partner

8. Espoused values  Leading figures of a culture.  General and shared assumptions.  If espoused values are not in line might cause trouble.  Do not separate professional and personal life.  Small talk is more than just a courtesy  Face to face  Decisions can take a long time.

9. Understanding the Middle East’s Reality verses its Perception  Business culture and Business etiquette.  meeting protocol and Negotiation techniques  The Middle East is often perceived as corrupt  Risk of corruption.

10. It is NOT What you Know, It is Whom you Know  The traditional Islamic greeting  'Asalamu alaykum' (peace be with you).  'wa alaykum salam' (and peace be with you).  Handshakes can last a long time.  About Middle East: chaotic, disorganized and frustrating.

11. Turn-offs and/or Rude Moves  Do not eat or drink during Ramadan  Do not use your left hand.  Never cross your legs and display the sole of your foot.  Do not eat pork, drink alcohol.  Workweeks may vary  Never interrupt Muslims at prayer.  Exceedingly generous, hospitality is legendary.

12. Assumptions  Shared values.  Not be especially visible to everyone.  Assumptions and espoused values are possibly not correlated,  Differences between espoused and actual values may create frustrations.

13. Respecting the Local Language: A few Arabic Greetings Will Do:  Arab Gulf Markets can be Difficult to Penetrate  Exceptionally proud of their language.  The roles of men and women  Do not try to shake hands. Avoid touching and prolonged eye contact with women.  Arabic is written right-to-left.

14. Prayer time Observations, Fasting, etc…  One cannot talk about the Middle East in a cultural sense without mentioning Islam.  It is best to avoid doing business on or near the two Eids.  Green is associated with Islam.  Treat the flag of Saudi Arabia extremely carefully.

15. Middle East - National Culture The set of norms, behaviors, beliefs and customs that exist within the population in the country  Collectivist - "we" takes precedence over the "I“  The Family - the family or tribe takes central focus in daily life  Hierarchy - a hierarchical society it used to levels of authority

16. Middle East – National Culture  Honors/Shame/Face - relationship driven cultures  Networks - due to such cultures relying on bonds and relationships  Consensus - in hierarchical societies decisions are usually made on a group basis

17. Hofstede’s cultural dimensions  Power Distance  Individualism versus Collectivism  Uncertainty Avoidance  Masculinity versus Femininity (Male vs. female)  Short-Term Orientation

18. Trompenaars’ Seven Dimensions of Culture  Universalism versus Particularism  Individualism versus Communitarianism  Specific Versus Diffuse  Neutral Versus Emotional  Achievement versus Ascription  Sequential Time versus Synchronous Time  Internal Direction Versus Outer Direction

19. Saudi Arabia – Jordan - Lebanon

20. National Culture

21. Saudi Arabia’s Culture National Culture :  people accept a hierarchical order  collectivistic society  masculine society  preference for avoiding uncertainty  normative in their thinking Core Culture Values :  Islam  Relationships, Trust, Wasta  Hospitality and Generosity

22. Jordan’s Culture National Culture :  hierarchical society  collectivistic society  feminine society  high preference for avoiding uncertainty  strongly normative culture Core Values:  Islam  Family  Hospitality

23. Lebanon’s Culture National Culture :  accepts a hierarchical order  collectivistic society  masculine society  Normative culture Core Values:  Family  Personal Relationships  Islam  Power/Education/Prestige

24. Saudi Arabia - Business Culture  Face-to-face meetings  Mutual benefit  Reciprocity of favors  Hierarchical  Modesty is highly valued  Meetings are often lengthy  Negotiations may be tough

25. Jordan-Business Culture  Open, progressive and well educated  Relationships are important  Invitation of friendship  Know simple Arabic words and phrases

26. Lebanon - Business Culture  Employ an interpreter  local agent - agent commissions : 5 to 8%  Build a Solid Relationship  Developing a strong personal relationship  Exchange of mutual favors  Build some flexibility into your schedule  Lebanese are not used to seeing women in business

27. Conclusion Cultural Characteristics of Middle Eastern business :  Strong affected by traditional religion  Emphasizing relationship between people  Hierarchical Advices for operation in Middle Eastern:  Learning and understanding local religion and habit  Strengthen communication in various aspects  Clarify the hierarchy in business  Combination local culture and own product and service

28. References  http://www.maronite-heritage.com/Lebanese%20Culture.php http://www.maronite-heritage.com/Lebanese%20Culture.php  http://www.kwintessential.co.uk/resources/global-etiquette/saudi-arabia-country- profile.html http://www.kwintessential.co.uk/resources/global-etiquette/saudi-arabia-country- profile.html  http://www.everyculture.com/Sa-Th/Saudi-Arabia.html http://www.everyculture.com/Sa-Th/Saudi-Arabia.html  http://geert-hofstede.com/index.php http://geert-hofstede.com/index.php  http://www.kwintessential.co.uk/resources/global-etiquette/lebanon.html http://www.kwintessential.co.uk/resources/global-etiquette/lebanon.html  http://www.everyculture.com/Ja-Ma/Lebanon.html http://www.everyculture.com/Ja-Ma/Lebanon.html  http://www.ghazi.de/society.html http://www.ghazi.de/society.html  http://www.roughguides.com/destinations/middle-east/jordan/culture-etiquette/ http://www.roughguides.com/destinations/middle-east/jordan/culture-etiquette/  http://www.everyculture.com/Ja-Ma/Jordan.html http://www.everyculture.com/Ja-Ma/Jordan.html  http://www.roughguides.com/destinations/middle-east/jordan/culture-etiquette/ http://www.roughguides.com/destinations/middle-east/jordan/culture-etiquette/  http://www.jordanembassyus.org/page/culture-and-religion http://www.jordanembassyus.org/page/culture-and-religion