Multinational Enterprise in Saudi Arabia-Company Handbook - Coursework Example

College Global Traders Partners Background Information. Global Trading Partners is an international company that deals in mainly commodities sourcing as well as trading. The company was co-founded by Carole and her associate Bill Boyer. Though it finds its roots in the United States of America, the company is located in Saudi Arabia in the town of Makkah; where its lead management team is also based, in her Middle East expansion programme. Introduction: The Global Trading Partners being an international company has a very comprehensive worldwide network of trading partners. It is a service company that mainly deals with the sourcing of commodity and trading. To the level of specificity, the company buys sugar, cement, urea, rice and sell cement, urea, sugar, optical changeable ink(OCI), rice, urea, Medical and surgical supplies, optical changeable pigment (OCP). Besides commodity sourcing and trading, the company also offer services product franchising and marketing. They represent a group of well established investors, source investment opportunities through franchising models. In their extensive service provision, they trap innovative ideas or products and seek reliable funds, develop and market such ideas and product. Under the product franchising and marketing, the firm buys creative and innovative ideas and other new franchising opportunities and sells products such as franchising products and investment opportunities (Glaister, 2004). The main markets for the products of Global Trade Partners are North America, South America, West Europe, Eastern Europe, Eastern Asia Southern Asia, Mid East, Africa and Oceania. The company has a total annual sales volume of US$1 million –US$2.5 million. Most companies in Saudi Arabia now enjoy plenty of advertisement options for their commodities to reach the wider targeted clientele. This has largely been aided by the recent removal of the ban on television commercials. The Saudi Arabia companies, like the Global Trading Partners today use nearly all the available methods of advertising and sale promotion some of which include television, newspapers, trade magazines as well as billboards. In addition, the companies are also allowed by law to use trade promotion events to reach the market both locally and internationally. Newspapers and Periodicals In Saudi Arabia there exist a wide range of journals, newspapers, as well as magazines which are usually on daily sale. They have advertisements of commodities as well as services in both English and the local Arabic language. This is mainly enabled by the Arabic press. The advertisement charges are usually varied from one advertising company to another. Radio and television Television advertisements of goods and services are today permitted in Saudi Arabia and investors are utilizing this rare chance to create awareness of their commodities to the larger public. Television advertisements are broadcasted on mainly the two Saudi Arabia channels. There is a channel in Arabic and the other television channel broadcasts in English. The broadcasts are usually clear and extensive in their reach, covering all parts of Saudi Arabia. The advertisement cost for commodities and services are only low for the Saudi Arabian companies than the foreign companies. The Saudi Arabia government agencies do screen thoroughly the broadcasts before they are aired. This is done to ensure that all the broadcasted commercial advertisements do not compromise the highly regarded Islamic moral and religious standards. Besides advertisements there are other sales promotion mechanisms that Global Trade Partners uses to reach her trusted customers. There is use of sales promotion methods allowed for use in Saudi Arabia and a very good example is use of trade fairs. Global Trade Partners just like all other major businesses in Saudi Arabia do possess good and proper exhibition facilities. Advertising and participation in such activities as sales promotion and by extension other trade related events is usually useful for raising awareness as well as acquiring the share of a given market. These are some of the strategies employed by the Global Trade Partners to reach their potential customers as well as attracting more. To strengthen and widen the sales and marketing further, the company nominates an agent and /or a distributor for such extensive services. However, the efficiency and effectiveness of a given advertisement mode entirely depends on the firm’s product or commodity that is being marketed (Payne, 2007). Internet and e-mail In the entire Saudi Arabia, internet was launched in 1999. The business community of Saudi Arabia has developed enormous interest in the internet including of course the Global Traders Partners. There is a lot of elicited interest in the use of e-commerce in particular and the Global Traders Partners is utilizing this opportunity and exploiting the opportunities that come with them. The Global Traders Partners is making use of technological advancement in communication and technical field to advance it terms of market reach. For example the firm uses both the e-mail and internet for recruiting staff, advertising to the global society as well as internal communication. Telephone All over the Kingdom of Saudi Arabia there is dominant use of mobile phones. Companies are allowed to use phones freely without any restrictions. The Global Traders Partners is one of the well established firms that make use of mobile phone services to promote and improve its operation. The coverage of the mobile phone facility is full and the major dominating companies include Zain, STC and Mobily. The Global Traders Partners have recorded success by a big margin. It export services internationally such as trade training and export development. In this attempt, the Global Traders Partners assists firms to optimize their net profit in the global market arena. A very good example is Global Traders Partners new Export development Immigrant Directory that join together immigrants with companies seeking opportunities to carry out business in their countries so as to provide both cultural and business etiquette tips. In 2007 the Saudi Arabian progress club of Excellence award did award the Global Traders Partners for making a difference in the community and internationally. Such honors are signs of successful business operation. There are a range of business etiquette and culture used commonly in the United Kingdom as well as in the Saudi Arabia. Some vary as some are shared. Culture by definition means a way of life. Etiquette on the other hand means a general manner of how one conducts him or herself. The United Kingdom is made up of four countries: England, Scotland, Wales and Northern Ireland. In the UK the etiquette and culture makes a very crucial component of a business, for instance people from England may not take offence when referred to as English while a Welsh, Scots, or Northern Irish person will. Some other revered culture and which should be observed keenly include; negotiating techniques, the connection of values, recommended business card style as well as content, business card protocol, sitting and representing yourself in meetings, language for brochures and promotional material, business pace, thinking styles, adherence to company policy, punctuality etc. Etiquette includes values like entertainment, appointment alert, gift giving, public behavior, business dress, greetings, business cards, titles, and conversation as well as title (Glaister, 2004). In Saudi Arabia, they embrace different culture mainly Moslem based culture and etiquette. For example there is an Islamic way of greetings widely accepted in Saudi Arabia. The Muslim whose majority is residence of Saudi Arabia greets by saying ‘Assalamo Alaikum’this greetings makes the muslim aware that they should be spreading the message of love and peace everywhere. Muslims also have their own attributes of God. A good example of God’s attribute is ‘AsSalam’ this means that God is the bestower of peace and love (Birley, 1985). Muslims have a culture of prayers. They pray five times a day requesting for God’s love in the holy venue called Mosque. The other culture of course is religion. Islam is the religion of Muslim. The Holy Quran is the holy book that contains the message of love and peace from God. Some other valued culture include appearance which entails having no bare stomach, shoulders and thighs at any given moment whether indoors or outdoors regardless of the extremity of heat. Appearance in this case also include the Muslim cultural dressing of traditional which foreigners are not allowed as it is offensive to do so. In the public women are expected to have a modest clothing. In the Muslim culture and by extension in Saudi Arabia, alcohol and pork are illegal items and are forbidden for use. They behave such that before getting into a house usually they remove shoes. In Saudi Arabia, no discussions about women are allowed and the topic Israel must be avoided. That is their communication culture (Muhlbacher, 2006). Bibliography BIRLEY, S. (1985) The role of networks in the entrepreneurial process/ journal Business venturing. 1(1.) 107-17. GLAISTER, K.W. (2004) Strategic business alliances: an examination of the core dimensions. Edward Elgar Publishing. MUHLBACHER, H. et al. (2006) International Marketing: a global perspective. Cengage Learning EMEA. PAYNE, N. (2007) Business Etiquette in the UK. WOLFE, M. (October, 1998) The Hajji: An American’s Pilgrimage to Mecca. Read More