Case Analysis Saudi Arabia
Case Analysis: Saudi Arabia
1. Definition of the problem/decision
The problem in this case is about the Saudi Arabian government, which offers a possible business plan to the American company Skyblue.
Skyblue is a commercial aircraft manufacturer based in Kansas, USA. Because of its great reputation of high-quality and state-of-the-art technology, the royal Saudi Arabian family announced the minister to talk with the executive vice president of Skyblue, Robert Auger. The minister told him that the government wants to buy 10 aircrafts over the next two years and even though, there are other competitors for this project, Skyblue is the favored manufacturer from the royal family. The problem shows up, when the minister tells Robert that the royal family is suffering from a stock market loss and that three of the competitive firms have each given $100,000 to help. Moreover, the minister mentions that if Robert will do so as well, it will serve him in the decision making process. Before giving the minister an answer, Robert wants to wait for a message of the headquarters and during the mean time he meets up with a Saudi Arabian friend who is an insider in the Saudi government. The friend tells him that he has not heard about any stock market losses and neither of the pool of money being put together for members of the decision-making committee. What should Skyblue do? Whom can Robert trust? Is this how business works in Saudi Arabia? Is it legal for Skyblue to give the money to the committee in order to get the assignment?
The main problem for Robert is to find out how business works in Saudi Arabia. He wants the project but at the same time he does not want to hurt the company by acting illegal.
2. Relevant cultural aspects
Saudi Arabia is a large Middle Eastern country with a coast on the Persian golf and one on the Red Sea. Moreover, one of its neighbor countries is the Iraq and rumors of terrorist financing activities made Saudi Arabia become a focus
1. Definition of the problem/decision
The problem in this case is about the Saudi Arabian government, which offers a possible business plan to the American company Skyblue.
Skyblue is a commercial aircraft manufacturer based in Kansas, USA. Because of its great reputation of high-quality and state-of-the-art technology, the royal Saudi Arabian family announced the minister to talk with the executive vice president of Skyblue, Robert Auger. The minister told him that the government wants to buy 10 aircrafts over the next two years and even though, there are other competitors for this project, Skyblue is the favored manufacturer from the royal family. The problem shows up, when the minister tells Robert that the royal family is suffering from a stock market loss and that three of the competitive firms have each given $100,000 to help. Moreover, the minister mentions that if Robert will do so as well, it will serve him in the decision making process. Before giving the minister an answer, Robert wants to wait for a message of the headquarters and during the mean time he meets up with a Saudi Arabian friend who is an insider in the Saudi government. The friend tells him that he has not heard about any stock market losses and neither of the pool of money being put together for members of the decision-making committee. What should Skyblue do? Whom can Robert trust? Is this how business works in Saudi Arabia? Is it legal for Skyblue to give the money to the committee in order to get the assignment?
The main problem for Robert is to find out how business works in Saudi Arabia. He wants the project but at the same time he does not want to hurt the company by acting illegal.
2. Relevant cultural aspects
Saudi Arabia is a large Middle Eastern country with a coast on the Persian golf and one on the Red Sea. Moreover, one of its neighbor countries is the Iraq and rumors of terrorist financing activities made Saudi Arabia become a focus
Bibliography: http://www.worldbusinessculture.com/Business-in-Saudi-Arabia.html http://www.iht.com/articles/2008/04/24/business/24bae.php http://news.bbc.co.uk/2/hi/business/6182137.stm http://www.wiwo.de/unternehmer-maerkte/eurofighter-bangt-um-saudi-auftrag-162606/ http://www.saudinf.com/ https://www.cia.gov/library/publications/the-world-factbook/geos/sa.html http://www.geert-hofstede.com/hofstede_arab_world.shtml http://www.12manage.com/methods_hofstede_de.html http://www.oppapers.com/essays/Trompenaars-Dimensions/143194