Cultural Differences In The Corporate World - Essay Example

Cultural Differences In The Corporate World Table of Contents Pages Executive Summary……………………………………………….. Acknowledgement………………………………………………… Introduction………………………………………………………. Company Background…………………………………………… Job History and Description…………………………………….. Training Experiences at Alcatel-Lucent……………………….. Cultural Differences in the Corporate World…………………. Problems…………………………………………………………. Solutions…………………………………………………………. Recommendations………………………………………………. Conclusions……………………………………………………... Executive Summary This Co-op report is based on cultural issues in the marketing field. It presents different aspects that have been used in the marketing field. It has presented the lack of elements that have geared the marketing venue in a negative direction and it has presented ways that may be used to solve problems. Recommendations that may help Alcatel-Lucent Riyadh in future ventures have been presented. Acknowledgement (YOU WRITE THIS SECTION) I LEFT THE TABLE OF CONTENTS WITHOUT PAGINATION IN THE EVENT YOU WRITE SOMETHING AND THE PAGINATION CHANGES.) Introduction This Co-op report is based on cultural issues in the marketing field. This is due to the fact that this trainee did not work in the marketing field as much as having worked as a salesman during the twenty-eight training weeks. This trainee was a marketing graduate student, who worked for Alcatel-Lucent Riyadh as a Marketing Officer for a twenty-eight week period. Alcatel-Lucent Riyadh is a telecommunications company new to Saudi Arabia and in general to the world. This Co-op report presents different aspects that have been used in the marketing field. It has presented elements that have geared the marketing in a negative direction and it has presented ways that may be used to solve problems and made recommendations that may help Alcatel-Lucent Riyadh in future ventures. Company Background Alcatel-Lucent Riyadh is a telecommunications company. Alcatel and Lucent were different entities until they merged to form one a couple of years ago. When Saudi Arabia joined spell out (WTO), foreign companies were permitted to exist without having to have a local partner. Alcatel-Lucent Riyadh Saudi Arabia´s Marketing Department is located in Dubai, United Arab Emirates (UAE). Alcatel-Lucent Riyadh Saudi Arabia´s Marketing Department only handles planning, managing, and public relations. All of its activities are executed by an outsourced marketing company located in Dubai. When Alcatel-Lucent Riyadh started to focus in the medium and in the small sectors, their marketing plans did not work. The printed brochures were designed for a worldwide community but not for the Islamic societies. The influence of Islam is all-pervasive (“Background to business in Saudi Arabia”). The company´s brochures contained female pictures or a winery case which are not marketing and publicity acceptable materials. In Saudi Arabia which is the Holy land for the Islamic societies, these pictures are considered offensive. Women are covered from head to toes and the alcohol is forbidden. There are still hangings in the “plazas”, as the olden days. WRITE WHATEVER ELSE YOU KNOW ABOUT THE COMPANY AND INCLUDE AN ORGANIZATIONAL CHART Job History and Description Assignments Timeframe Description Collection Week 1 and 2 March 1 - 13 Collected activities´ data via the internet. Socialize Socialized with colleagues. Update information Informed Dubai´s office concerning this trainee´s current situation. Technology Requested a computer device and a landline set. E-learning courses Week 3 and 4 March 14 -27 Took classes on the internet. Study and discuss documents and presentations with the Dubai office. Went over: 2009 Marketing & Business Development Plan AMEI Global Partner Program – Recruiting New Partners Marketing Report for the second half of 2008 Participate in a Webinar: Partner Welcome Pack Project. Its agenda was: Reminder of project objectives and key milestones Achievements since the last session Next steps Authorization to access the business partners´ website. Kept track of the partners´ activities and their funds in the Co-op program E-learning courses Week 5 March 28 – April 3 Took classes on the internet. Participation in partner activity in Dubai. It included a sales training on OCS, BICS, and IP Networking. Design a marketing plan template. Sent the marketing plan template to be filled out. Workshop discussion. A workshop that was held in Bahrain. Two Conference calls held with France´s office, Dubai´s office, partners, and this trainee. Discussed their marketing plan for 2009 and how to boom the business in the enterprise solution division. Reposition the logo and services on their website. Requested the partners to reposition the logo and services on their website for a better exposure to visitors. Work on the marketing division’s contact database. Sorted, erased duplications, and filled out what was missing. The database contained more than 3700 contact information. The database was used by MEAI (Middle East, Africa, and India). E-learning courses Weeks 6 and 7 April 4 – 17 Took classes on the internet. Meetings Held meetings with: A local IT solution provider company presented by a Key Account Manager and Marketing Executive. A Creative Concept Marketing Agency was presented by the managing director This trainee presented Alcatel-Lucent. Receive approval Obtained remote access for the company’s network via VPN. Worked with mobile SIM card. Participated in a business rendezvous in Dubai. Travel to Dubai Week 8 April 18 – 23 Attended Alcatel-Lucent’s Partners Rendezvous. It lasted for 4 days. Held training for the direct partners and indirect partners. This trainee was introduced as Alcatel-Lucent’s Marketing Officer in Saudi Arabia. This trainee met his manager, Gabriel Karam and his co-worker, Celia Croize. This trainee re-established Alcatel-Lucent’s marketing connections with the partners. This trainee held a meeting with Saudi Arabian partners to discuss their marketing plan for the third and fourth quarter of the year and how to boost the sales in those two quarters. Collect information, attend a meeting, and finalize a consultants’ database. Week 9 April 25 – 29 Collected information from Dubai's partner's rendezvous and analyzed it to evaluate the event and its aspects. Attended a meeting of the Enterprise Solution Division team in Riyadh. Updated the sales, budget, and targets. Finalized a consultants’ database that contained leads and information about potential clients. Attend remote meetings, work on more databases, have an assigned partner, and hold a meeting. Weeks 10, 11, 12 and 13 May 2 – 30 Attended remote meetings with other colleagues in Dubai and Paris. Worked on more databases for potential clients. A new partner was assigned to this trainee to do the follow-ups for their marketing plan and activities. This trainee held a meeting with a company called Naizak in Khobar to verify their activities of capturing the small and medium business’ market. Graduation Ceremony Week 14 June 1 - 3 This trainee attended his graduation ceremony in Khobar. Sick leave. Week 15 June 6 - 10 Sick leave. Follow-up marketing activities and conduct conference calls. Attend a conference call. Work on leads. Weeks 16, 17, and 18 June 6 - 24 Followed-up Naizak’s marketing activities and conducted conference calls. Attended a conference call with the main distributor, Mindware. Worked on potential client leads in Saudi Arabia. Sent the potential clients e-mails. Called the clients. Met the clients to present Alcatel-Lucent’s portfolio. An incentive program to motivate it. eCoop funds. Market activities. Sort leads of potential customers and scheduled meetings. Week 18 June 28 – July 1 Alcatel-Lucent Riyadh has an incentive program to motivate its partners to increase their sales. The eCoop program opens a fund account for each partner, and funds are deposited by Alcatel-Lucent Riyadh based on a certain percentage of the partners’ sales. eCoop funds have an expiration date and can be utilized by requesting marketing related activities. During week 18, managers and executives left for vacation, leaving this trainee without any authority. Some marketing activities had to be done and some products had to be requested and funded by the eCoop. Funds were delayed. Sorted leads of potential customers and scheduled meetings. Launch the telemarketing campaign, collect databases, sort data into categories, and submit the data. Week 19 July 4 – 8 Launched the telemarketing campaign. Collected databases from partners. Sorted the data into categories. Submitted the data to the marketing agency in Dubai to execute the telemarketing campaign. Receive a new sales incentives plan. Schedule meetings First presentation with Hoshan Co. Week 20 July 11 – 15 Received a new sales incentives plan developed by Dubai’s office. Scheduled meetings with partners in Riyadh and Khobar to present to them a new plan. First presentation with Hoshan Co. (Alcatel-Lucent Partner) in Riyadh July 15th. Travel, review marketing activities and collect potential customers’ information. Week 21 July 18 – 22 Traveled to Khobar based on a scheduled meeting with Naizak (Alcatel-Lucent Partner) to present new incentives plan. Reviewed Naizak’s marketing activities and how well they were executed. Collected potential customers’ information in Riyadh with the help of Naizak’s marketing executive. No work Week 22 July 25 – 29 No work Meet, organize, follow-up, and support a marketing scan. Week 23, 24, and 25 August 1 – 19 Met with Sulaiman Habeeb Hospital's IT representatives to present them Alcatel-Lucent as a full solution provider. Organized and followed-up a press release made by Naizak in Khobar and handed it to the Alcatel-Lucent team at the Khobar office. Supported a marketing scan for Small and Medium Businesses in Riyadh and Khobar. Follow-up previous tasks. Coordinate marketing activities, participate in webinars and meet with the organizations’ representatives. Week 26 August 22 – 26 During the last two months, this trainee followed-up projects and minor tasks such as: King Abdullah Sports City project. Ministry of Education´s branches project. eCoop fund purchases. Coordinated marketing activities between Saudi partners and the marketing agency. Participated in webinars conducted every Thursday between the offices in Riyadh, Khobar, Dubai, and Paris. Met the organizations’ representatives as potential customers, such as: King Khalid eye specialist hospital. Saudi Industrial Development Fund Saudi Cement Company. Training Experiences at Alcatel-Lucent Riyadh As a trainee, there were many experiences and there were many challenges. Suggestions were made from an insider´s point of view of what could be introduced to the company becoming involved in a fundamentalist society. It was this trainee´s position to avert what would be accepted and what would not according to different elements that should be taken into consideration: culture, history, traditions, customs, language, idiomatic terms, and non-verbal communication. In this particular case, the purpose of this role was to ensure the execution of a clearly defined and integrated Marketing plan for the Middle East with a focus on Saudi Arabia in support of the wider emerging markets with marketing and sales objectives. This rewarding position offered the opportunity to merge creative and analytic skills to achieve an integrated marketing objective (theory) and put into praxis what is needed. Channel Marketing Trainee The purpose of this role is to ensure the execution of a clearly defined and integrated Marketing Plan for the Middle East. It will focus on Saudi Arabia in support of the wider emerging markets, marketing, and sales objectives. This position offers the opportunity to merge creative and analytic skills to achieve an integrated marketing objective. (ref. where is this from?) This rewarding position offered the opportunity to merge creative and analytic skills to achieve an integrated marketing objective. There were many responsibilities. These were as follows: Marketing consultancy and sales support for 4 channel partners and a large 2tier community in Saudi Arabia. Communicate with different types of programs and promotions available and effective for each partner, reseller, and distributor within the channel community. Event organization, follow-up with suppliers, to ensure on-time delivery and coordinate bill settlements. Work with a marketing agency and engage it with the partner community. Ensure lead distribution to channel sales teams and follow-up. Organize and channel web conferences and training. Expand and maintain the regional database. Continue to support the sales team within the marketing guidelines, increase internal communication, and improve the team engagement. Manage multiple projects simultaneously, and have the flexibility in dealing with changing schedules within multi-cultural, geographically dispersed teams Cultural Differences in the Corporate World There are many cultural differences that should be taken into the corporate world to make sure that business transactions are successful (Centeno, n.d., a, b). It is very important to have these elements in mind while performing research. History should not be repeated if the results are going to be negative as in the following cases in different countries: Nestle Milk Powder-Africa; NOVA-Venezuela; Pinto-Brazil; and, Coca-Cola-Thailand. These are international companies that did not do their research in their marketing or in their publicity planning. It would be superfluous to mention that these failed business transactions were due to the marketing and the publicity teams neglecting to do their research. These cases are well known in these areas of marketing and publicity on a worldwide basis. The Nestle Company took their milk powder to Africa. The instructions were clear or so they thought. The milk powder was to be mixed with water. Easy instructions it seemed to be. As a result, thousands of infants died. During their research process, they neglected to tell the user that they first had to boil the water. The water that was being used was from a river where they washed their clothes, performed their biological needs, and washed. The water was contaminated. This was a good court case and the bottom line was felt in their finances. This business transaction failed and there were deaths as a consequence of negligent research performed by the marketing and publicity teams. They thought that they could manage their work as they had performed it in other countries (especially first world countries). As a result, when consumers purchase the Nestle Milk Powder, in their instructions for preparation, they state that you first need to boil the water. An American company wanted to launch its NOVA automobile and wanted to perform a business transaction in Venezuela. They also failed to do their research. There are differences in languages, depending on the country visited, NOVA in Portuguese may mean “new” but in the Spanish language, it means “it does not go”. Sales which were the objective of the company also failed. No one wanted to buy a car that does not run. The Pinto automobile, from another American company, was another business transaction that failed in Brazil. Pinto in Portuguese means small male organ. No man, especially, wanted to say he drove a Pinto. Coca-Cola wanted to do business in Thailand. They also made a similar mistake. Their slogan was thought to trigger the Thai market. By not performing their research, resulted in a translation that meant, “Your ancestors will return from the dead”. That business transaction as a consequence failed due to the fact that Asians are very respectful of the elderly and once they pass they are still honored. They did not want their ancestors to return. That slogan was an insult to them. Individuals performing research in these areas (marketing and publicity, especially) need to be cautious and they need to take these elements into consideration while partaking in national and international research. There are similarities and there are differences and these have to be evaluated taking the countries´ particular intricacies into consideration. As an example, another case is where the countries where Spanish is spoken are all lumped into one because they speak the Spanish language. Traveling from one country to another, if you are not aware of their customs, traditions, history, culture, idiomatic terms, and non-verbal communication, you may be offending the natives of those countries you are visiting. The Hispanic countries cannot be placed all in the same jar since even the Spanish language varies from country to country. In this particular case, the Arab countries should not be placed in similar circumstances. Some of the countries differ in how they use the Arabic language, in its pronunciation, and in its writing. Some Arabic countries are more fundamentalists than others (Saudi Arabia is the Holy Land for the Muslims, it is the Mecca). Others are more liberal than others. Trying to perform business transactions in Saudi Arabia should also take into consideration the aforementioned elements of culture, traditions, customs, history, idiomatic terms, and non-verbal communication. In this case in the particular religion (WorldBusinessCulture.com a) should be another element to consider. According to “Saudi Arabian Business Structures”, in Saudi Arabia, the family unit plays an important part in the business. They are part of the business. It is, therefore, recommended to devote time and effort in relationship-building. The hierarchy is not as important as the favored relative of a senior member. Managers are instructional in their approach, although the leader often includes his group in a consensus-style discussion with the leader´s final decision. It is suggested that if things are not asked to be done, they will not, therefore the instructions should be clear, unambiguous, and complete (“Saudi Arabian Management Style”). “Saudi Arabian Meetings” posited that Western Standards in meetings may seem unusual with many procedures and processes ignored. They stated that people may be ushered into meeting rooms and people not knowing each other. Saudi Arabians do not like to convey bad news concerning business issues. There is a need to maintain a sense of perspective. Speaking loudly and aggressively is an indication of sincerity in the region. Eye contact is very important, as well (“Saudi Arabian Communication Styles”). Women play a small role in the public life and practically no role in the business world even though they may be granted a visa. If she is going to be visiting on business, she will need to be conservative in her dress code and conduct (“Women in Business in Saudi Arabia”). Visitors to Saudi Arabia should dress conservatively and fashionable. Men should wear suits and ties for business meetings. Women should wear business suits (not pants). Skirts should be below the knee, preferably ankle length and carry a headscarf (“Saudi Arabian Dress Code”). Problems Placing the Marketing Department in Dubai and outsourcing the executor of the marketing plans from a company located in Dubai may work with B2B business transactions but it is a failure in the smaller level businesses. This goes back to taking into consideration countries that may seem similar but that are different. Such as the exposed examples of the elements presented from different countries. From the downstream management strategy coming from the upper managerial level of the Marketing Department, they do not accept the fact that Saudi Arabia is a unique market that needs a special marketing strategy and a special approach. This matter should not be taken lightly or it may result in a failed transaction such as the already known negative results in the business world, especially in the marketing and publicity fields. These are some of the business transactions that have failed due to the fact that the marketing personnel and the publicity personnel did not take into consideration the idiosyncrasies of each of the countries where a product or a service was wanted to be introduced. These business transactions failed and given those cases, the Marketing Department should not become another failure in the Saudi Arabian business world. Alcatel-Lucent Riyadh is a newly merged company, with years of individual company experiences and these should take into account other companies´ successes and failures. Is it not always asked: What are the strengths and weaknesses of case studies? What are the strengths and weaknesses of the personnel? What are the strengths and weaknesses of the business transactions? What are the strengths and weaknesses of the marketing plans? What are the strengths and weaknesses of the publicity plans? Yet, when constructive criticisms are in place, it falls back to the “old school” and the “old boys´ network”. New ideas are not acceptable even when they are pointed out by a person who is knowledgeable of the country. In a meeting, the process in Saudi Arabia may be frustrating for task-oriented, the time dominated Westerners. The Saudi Arabians may drag for hours with very little to be achieved. This makes it difficult to schedule more than one meeting per day, according to “Saudi Arabian Meetings”. It continued to state that since there is no formal agenda and a designated chairman discussion may appear to be disjointed with people talking at the same time. The concept of teamwork is accepted if the members are from an extended family or close friends. If this is not the case, suspicion may arise and matters delayed. (“Saudi Arabian Teams”). Several questions should be asked. Is the UAE not an Arab country? Do they not know this which has been exposed herein? Have they stated it to unhearing ears? Have they not stated it to the western societies? Being able to speak another language or other languages is not sufficient (Centeno, a, b). If this trainee were in a strategic place in the enterprise, it will give him the opportunity of doing research from primary sources in Arabic. He will not only be able to translate information into the English language and vice-versa, but he will also be familiar with the customs, culture, history, traditions, idiomatic terms, and non-verbal communication of Saudi Arabia. Translating documents from other languages into others does not only entail the grammar components but it also needs to take into account the elements mentioned above. When Alcatel-Lucent started to focus on the medium and small business sector, their marketing plans did not come to fruition. The brochures were designed for a worldwide community, not for an Islamic society. The brochures contained female pictures or a winery case. These images are unacceptable in Saudi Arabia and are considered as an offensive move. This is a problem since the upper management of the marketing department does not accept the fact that Saudi Arabia is a unique market that needs a special marketing strategy and a special approach. During Weeks 1 through 7, daily work involved minor activities and interactions with employees. There were difficulties faced with the company’s hierarchy and its approval system workflow. Time was needed to adjust and adapt to the new environment. In general, all of the results have added value to this trainee and to the company. During this period of time, this trainee´s tasks were to follow-up with partners and make sure that they were going according to the marketing plan. Partners, in the enterprise solution division, are the strength in capturing the market. Solutions The solutions to maintain to a positive business transaction in Saudi Arabia are to have these already mentioned elements in mind while developing marketing and publicity plans. It is also important to become familiar with each country´s idiosyncrasies. When in meetings, Westerners should not show annoyance or disproval if meetings do not proceed according to their patterns as according to the Saudi Arabians will determine their opinion of the person (“Saudi Arabian Meetings”). Recommendations Part of the recommendations is to train people in different cultures, customs, traditions, history, language, idiomatic terms, non-verbal communication, and in this case include the religious component. When visiting a Saudi Arabian if there is a gift involved (not a need) caution should prevail and avoid giving: Alcohol, pork, knives, pigskin, perfumes with alcohol, and images with nude women. It is embedded in the culture that flattery plays an important role in business. Compliments will also be given do not be distant, aloof or embarrassed. Familiar questions may arise (marital status, children, religious convictions, and personal wealth). It is also recommended not to say that a person (you) is an atheist. (“Saudi Arabian Communication Styles”). Conclusions This is certainly not an easy task, given that the business world is always trying to maintain its head over water (especially during this day and age of an economic crisis. It has been evidenced that failures have occurred in business transactions. The "one size fits all" does no longer apply. Another perspective should be included to feel at ease during a business transaction and make others visited comfortably with the perspective of performing business. Live and learn, and be productive in the process and culmination of business transactions. In the business world, the bottom line will always prevail. It should be the duty of those performing research in the marketing and the public arena to be well informed before launching a product and or service. Works Cited Centeno, Migdalia (a). Cultural Sensitivity in the Corporate World. Dissertation. Pennsylvania: The Pennsylvania State University, 1989. Print. Centeno, Migdalia (b). Cultural Sensitivity in the Corporate World. 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