The Cultural Environments Facing Business

Case:- The Java Lounge- Adjusting to Saudi Arabian Culture

Introduction

Some introduction about:- •Learning objective•Culture•Cultural diversity•Cultural behavior•Cultural variables •Factors influence cultural stability and changes•Case:-

Learning Objectives To understand methods for learning about cultural

environments To analyze the major causes of cultural difference and

change To discuss behavioral factors influencing countries’

business practices To understand cultural guidelines for companies that

operate internationally•

Culture• Integrated pattern of human knowledge, belief, and behavior

that is both a result of and integral to the human capacity for learning and transmitting knowledge to succeeding generations. Culture thus consists of language, ideas, beliefs, customs, taboos, codes, institutions, tools, techniques, works of art, rituals, ceremonies, and symbols. It has played a crucial role in human evolution, allowing human beings to adapt the environment to their own purposes rather than depend solely on natural selection to achieve adaptive success. Every human society has its own particular culture, or sociocultural system.

Cultural diversity• Cultural diversity is the variety of human societies or cultures

in a specific region, or in the world as a whole. The term is also sometimes used to refer to multiculturalism within an organization.

Eg:- such as language, dress and traditions, there are also significant variations in the way societies organize themselves, in their shared conception of morality, and in the ways they interact with their environment.

Cultural behavior • Cultural behavior is behavior exhibited by humans (and,

some would argue, by other species as well, though to a much lesser degree) that is extrasomatic or extragenetic, in other words, learned.

Cultural variablesIndividualism v. Collectivism• IndividualismGoals are set with minimal consideration given to groups

other than immediate familyTend to define people by what they have done• CollectivismEmphasize relationshipsStress interdependent activities

Cont….Power Distance• High Power DistancePower and influence are in the hands of a fewPeople are expected to display respect for those in higher

statusMay have severe limitations on interactionsSubordinates’ body tension is more obvious• Low Power DistancePower and influence are distributed more or less equally

throughout the populationTend to be northern or colder climates where technology

and cooperation are needed for survivalChildren are less dependent upon authority and learn from

people other than immediate authority figures

Factors influence cultural stability and changes

Case:- The Java lounge- Adjusting to Saudi Arabian Culture

Introduction- This case study totally saying about the cultural environments, which, In the current scenario Business are facing. In this case The Java Lounge restaurant faced many problem when it open in Saudi Arabia due to different culture of Saudi Arabia.

Facts:-• Different culture of Saudi Arabia• Java lounge Faced cultural problem when it open in the city

of Jeddah• Strict rule for mail and female• Female uses Garhas – Saudi Arabia• Most of the men only use Java Lounge without women• Religious proscription prevent the Java Lounge from serving

pork product or alcohol and live music also prohibited. • In the time of Ramadan, restaurant is allowed to serve

customers only in the evening • McDonald, suspended service

Cont..• Punished – cut off hands and heads, Moderate women & men• Due to interaction of foreigners Saudi Arabia little change

their culture• Four partner opened the Java Lounge, 250 seats established• Finally, Java Lounge understood domestic culture of Saudi

Arabia • Very good service, outdoor deck, range of cocktails and 20

different coffees. Good breakfasts, light meals.

Case Analysis:-

In this case Java lounge is highlighted about their problem when it open, in the city of Jeddah in Saudi Arabia due to culture of Saudi Arabia. Four partner opened the Java Lounge in 2003 in city of Jeddah in Saudi Arabia. Because it was port and many foreigners use this place. Many women use Garhas on her face for cover and men was restricted for intoxication. Most of the people of Saudi Arabia belief on Islam, there dress code are totally different, Government are also strict about Islam religion when Java Lounge restaurant opened that time many restaurant opened they worked very well. French chef prepares different- different kind of menus of finest restaurants in Europe or North America.

Cont..

Many employee of Java Lounge was men that was the main problem and also menu was differ. In 2000, Government of Saudi Arabia make a rule that women can or can not be work with men. But after passing a time 20% women takes place in many areas of work (Saudi teachers, Doctors) which was totally great for the Saudi Arabia culture but if they work where men also work, they must use separate entrance. In Java Lounge there were different place for the men and women. Mixed shopping was allowed at upscale department stores like Saks Fifth avenue and Harvey Nichols (US & UK), but main problem was men manager can go women floor after closed shop due to separation. Its product was pork and alcohol so people can’t purchase so it was black market for it.

Cont..

If any women or men caught during illegal activity they punished. During Ramadan, restaurant was allowed for customers serve. From this reason many company was affected and they closed there business. But when women and men stared to take some action on it, some flexibility, style entered business start get success. Foreigner were also consult with Java Lounge. Finally, the owner of Java Lounge also realized that, as more Saudi interact with foreigners and the country strives for economics growth, there will be change in domestic culture and social values.

Conclusion

As we know that culture is nothing but identity of state or country which makes a different image about the present value of country. As Java Lounge faces many problem but after survived it got place of success in Saudi Arabia.