1. Armadillo Case Study
Program: N103 BA (Honors) in Business Studies
Course ID: 6GN002: International Entrepreneurship
Module Leader: Dr Bruce Johnstone
Student ID: 100199589
2. Executive Summary:
The report describes an essential key analysis of understanding cultural phenomenon. The culture exists within
a country and its boundaries remains limited and confined, to understand such observable fact is a challenging
contractual obligation. The Armadillo Case study highlights major tolerant of Culture Analysis of a sturdy
country Saudi Arabia; the main focus of the case study determines how culture of a country plays a vital role
and hard-hitting process to enter the new market. When the appearance of a person is recognized from its shoes
to guise, likewise a country is identified from its Culture, norms and values. So it is easy to define a culture that
point of views may vary but a perception remains restricted.
This report will through light on the thoughtful and sympathetic approach of identifying a culture of Saudi
Arabia, as the country is a demanding and tricky for any international business enterprises to enter the market.
Armadillo case will study a proper and in a unique way to learn its culture, it will dig a tunnel to comprehend
the consumer behavior, their etiquette to carry out the business and their values and norms deterring those
prospects which is considered highly unlawful. Armadillo will also pin point the Economic and political
philosophy which is being carried out from decades for the outsiders.
Moreover Armadillo would like to be trained on the culture by getting an idea from Geert Hofstede Cultural
determinants process and in the end it will discuss the superlative strategic plan to capture the country market.
In this statement Armadillo promises to accomplish the goal to be aware of and be au faith with the culture of
Saudi Arabia and will testimony no matter how incentive is the countries culture but a fine and first class
approach will surely help another international entrepreneur to grab the bazaar of the country.
3. Task # 1 Understanding the Culture:
“Kingdom of Saudi Arabia”
Introduction:
K.S.A known as the Kingdom of Saudi Arabia is the third prime Arab country and the largest state in the Middle East.
The Country is the homeland for the Arab people and Islam. It occupies 868,730 square miles (2,250,000 square
kilometers).The Kingdom follows a strict rules and regulations in every matter may it be justice, business, political or
cultural issue. People in Saudi Arabia are characterizing through their customs, manners and dialect. The country sells
overseas 90% of oil which make it the largest Country who exports oil all over the world. The country has firm
consideration about the product; the country prohibited the beverage products like alcohol, food like pork and other
products which is not allow in Islam, so the country who wants to market their product in the Kingdom firstly have to take
the agreement to pass the product from the Islamic Scientific research or have to undergoes foremost authorization which
is the legal formalities to start a business.
It’s Language:
The Arab speaks Arabic and it is the official language and is widely spoken by the people, but English remain subsequent
language and is used among the business groups. Apart from the Saudi population and its language, there are other
languages being spoken by the other citizens of the country like Urdu is the official language of Pakistan and the less
spoken languages are Bengali, French, Korean, Somali, Farsi and Turkish.
Though English is second compulsory language widely spoken in business groups but one must know how to
communicate in Arabic as well in order to have good business relationships with Saudi people as well. Saudi’s are
attracted when one can write, read and speak good Arabic for as if he/she can do that it will be most easy and
unproblematic to start a business or do a job.
Business Culture, Etiquettes and Protocols:
For starting a business it is very crucial for Westerns Businessmen to understand Saudi Etiquette and the personal manner
in which they will conduct their business, as good approach will differentiate between a successfulbusiness deal and
abortive negotiation. Presently most of the Saudis businessmen have a remarkable and brilliant knowledge and experience
of trade, experience with the western countries and an excellent command of English language. They prepare carefully for
meetings and have great grasps of important details surrounding negotiation. The Arab people are very friendly and make
their guest feel comfortable with them.
Body language:
During conversation, Saudis stand very close to one another than Americans. Their conversational distance is same as of
Latin Americans and Southern Europeans. Arabs use right hand for all functions-including hand shakes or may it be
eating, drinking and passing objects. It is very awful in the eyes of Arabs if you point the sole of the shoe to other person
while talking it is regarded as to be immoral. Respect is a value that is held very highly by the Arab people and this is
considered very important in Business.
4. Relationships and Communication:
For business meetings and to contact your Saudi business partner in Saudi Arabia you will need a Saudi
Sponsor/subsidize known as (Wakeel) because this subsidize act as an intermediary and arrange appointments
for you.
Trust means a great deal to Saudis. In order to sustain a good relationship with them one must be very calm
and must spend some valuable time with them to gain a prolong faith.
Since Saudis will judge you with your appearance,one must dress properly and present oneself very well.
Business Meeting Etiquette:
To arrange an appointment is very important at least before a month.
If you have a meeting with Government spokespersons, an exact date may not be arranged until you arrive in
the Country.
Meetings must be held in the morning and you should arrive in the meeting in proper time although it is an
accepted custom to keep the foreigner waiting.
Meetings are generally not private until after a relationship of trust has been developed.
Meetings are usually started after a detailed inquiry about health, family, etc. Saudi discourages if one
inquire about his wife/family.
Business Negotiations:
Discussions regarding matter usually take time, so you must not rush.
The Saudi society is extremely bureaucratic. Most decisions on matters require approval of severallawyers,
even for the simple task you need to take more than a few visits.
Saudis are tough negotiators.
Never ever use high pressure tactics.
Decisions are easily over turned.
While discussing price, Saudis will often make an initial offer that is extremely low when they are buying,
on the contrary, while selling their selling price will be very high.
One may need to compromise on a point if someone’s dignity is at stake.
Dress Etiquette:
Saudi official dress is long white thobe while you me be expected to wear a suit.
For a good impression one must dress very well.
Business Cards:
Saudi give business cards to everyone they meet.
For non Saudis citizens it is very important that their one side of business cards must be printed in Arabic
with a proper translation as there is often confusion of orders of Westerns names.
Religion: KSA is an Islamic Theocratic Monarchy.
Islam is one of the most world great monotheistic religions. The followers of Islam are called Muslims, believe
in one God (Allah in Arabic) and the Muhammad is His Prophet. Saudi Arabia is an Islamic Monarchy and the
Government has announced the Qur’an and the Sunnah to be the Country’s constitution. Freedom of religion is
limited. The Country forbids the practice of other religion. “Proselytizing by non-Muslims is illegal and a
citizen who wants to adapt from Muslim to another religion will be publicize to death penalty. The committee
5. for the propagation of virtues and the prevention of vice (i.e. religious police) imposes exclude on the public
practice of non-Muslims religions.
Saudi practices as "religious apartheid":
Saudi Arabia's treatment of religious minorities has also been described by both Saudis and non-Saudis as
"apartheid and "religious apartheid".
Testifying before the Congressional Human Rights Caucus on June 4, 2002, in a briefing entitled "Human
Rights in Saudi Arabia: The Role of Women", Ali Al-Ahmed, Director of the Saudi Institute, stated:
Saudi Arabia is a glaring example of religious apartheid. The religious institutions from government clerics to
judges, to religious curricula, and all religious instructions in media are restricted to the Wahhabi
understanding of Islam, adhered to by less than 40% of the population. TheSaudigovernment
communized Islam, through its monopoly of both religious thoughts and practice. Wahhabi Islam is imposed
and enforced on all Saudis regardless of their religious orientations. The Wahhabi sect does not tolerate other
religious or ideological beliefs, Muslim or not. Religious symbols by Muslims, Christians, Jewish and other
believers are all banned. The Saudi embassy in Washington is a living example of religious apartheid. In its 50
years, there has not been a single non-Sunni Muslim diplomat in the embassy. The branch of Imam Mohamed
Bin Saud University in Fairfax, Virginia instructs its students that Shia Islam is a Jewish conspiracy
Social Structure: The family and the tribes are the basis of the
social structure.
Cultural Homogeneity and Family Values:
As it is seen in their naming conventions, Saudis are mindful of their heritage, clan and their extended family as well as
their nuclear family. Saudis take their families responsibility very seriously. Families are tending to be very large; the
individual drives a social network and the assistance in time of need from the family. Saudi encourages favoritism,since
it implies that employing people one knows and trust is of primary importance. The structure of the families in Saudi
Arabia is generally compatible with the structure of tribal lineage. Relations with maternal relatives are important but
family identification is tied up to the father and children are considered to belong to him not to the mother.
Diversity and Social Stratification:
The Saudi population is characterizing by a high degree of cultural homogeneity and by an equally high degree of social
stratification. Social stratification is link to the population diversity, tribal association constituted a major status category
based on bloodline.
A major social division is that between guest workers and the local citizens. The working class is largely composed of
temporary immigrants, who also occupy middle –class positions and few positions in the upper class. Major Varatiation
in income and accumulated wealth exist with the major categories including the super-rich, the very rich and the rich
alongside a large middle –income group and some with limited incomes. Only small pockets of poverty exist. A strong
ideology of egalitarianism is traditional among Saudi Arabians, whose social and verbal patterns of interaction stress
equality and siblinghood rather than status differentiation.
6. Customs and Manners:
Man Shakes hands. Good friends greet each other with a handshake and a kiss on each other. Women are not allowed to
shake hands with men and they are not even allowed to greet each other on public. Women generally hug and kiss close
lady friends.
Giving Gifts Etiquette:
If you are invited to Saudis home bring something small as a thank you. Flowers do not make good gifts from a man,
although a woman could give them to her hostess. Never give alcohol as a gift to Saudis.
Education System:
Traditional education includes memorization and recitation of the Quran. Saudi Arabia offer free education also to study
abroad to Saudis. The country prohibits the co-education; girls and boys cannot attend schools together. For boys levels of
education includes primary, intermediate secondary and university.
Today more than half of almost 200, 00 students in Saudi universities are women, because they are not allowed to share
classrooms with men, they hear the lectures by television. There are some universities campuses for women only.
Economics and Economic Philosophy: Saudi Arabia's
economy is a Centrally Planned Economy. Private enterprises do
exist, but they are regulated by the Saudi government.
Population:
The nationals accounts for 75 % of the population. The reaming residents are 6 million people who are expertriates consist
mainly of foreign workers and about 90% of Saudi nationals are Arabs. The rest of the indigenous population is Afro-
Asians.
Basic Economy:
Saudi Arabic produced all its staple foods until the 1940s. Coffee,tea,sugar, cardamom, rice, cloth and some
manufactured are the main imports. Exports consisted of dates, camels, horse and sheep with Western India, Iraq, greater
Syria and Egypt being the main centers of long-distance trade. Saudi Arabic also received a modest income related to the
holy pilgrimage.
Land Tenure and Property:
Land developed for agriculture, residential, commercial and industrial uses that have been separated usually owned as a
private property and can be bought and sold freely. Some property maybe held as a trust for the support of a religious
institution.
Commercial Activities:
7. Saudi Arabia has banks, foreign exchange,houses and gold jewelry shops: import houses and agencies of international
companies, engineering and contracting firms, supermarkets , grocery stores,butcheries and bakeries ,hotels and
restaurants , coffeehouses(for men only) and retail firms selling clothing, home wares,electronics , automobiles and other
consumer items.
Trade:
The huge size of exports is crude oil, refined products and natural gas liquids. The main customers are Japan and other
Asian countries, Western Europe and the United States. Aside from military items, the principal imports include
machinery appliances, chemical products and transport items etc.
Saudi Armed Forces:
Saudi Arabia’s armed forces are mainly the responsibility of the Ministry of Defense and Aviation. The Ministry also has
responsibility for the construction of civilian airports as military bases. The Saudi Military consist of:
1. Army,
2. The Royal Air force,
3. The Royal Saudi Navy,
4. The Royal Saudi Air defense
5. The Saudi Arabian National Guard-the SANG.
o ARMY: They are also called Land Forces: The army is composed of three armored brigades, five
mechanized brigades, one airborne brigade, one Royal Guard brigade and eight artillery battalions. The army also
has one aviation command with tow aviation brigades. The total numbers of active troops is around 150,000. The
Current Chief of the Saudi General Staff is Field Marshal Saleh Al-Muhaya.
o RoyalAir Forces:The air force is organized in seven fighter/ground-attack Squadrons, six fighter
Squadrons and seven training Squadrons. Saudi Arabia has at least 15 active military airfields. The
current total numbers of officers are 18,000.
o Air Defense:It was the part of Army until 1981 when it was made a separate service. It operates “Peace
Shield” state of the art radar and air defense system consisting of command Operations Center. The total numbers
of officer working is 16,000.
o Navy: The Navy is divided into tow fleets: The Western Fleet and The Eastern Fleet. The marines are organized
into one infantry regiment with two battalions. The navy’s inventory includes 11 principal surface combatants, 65
patrol and coastalcombatants, 7 mine warfare vessels,8 amphibious craft,and 7 support and miscellaneous craft.
Naval aviation forces have 19 helicopters (armed) serving in naval support. The total numbers of staff working on
this force is 15,500 including 3,000 marines.
o SANG: The Saudi Arabian National Guard is independent of Ministry of Defense and Aviation and is
organized into three mechanized infantry brigades, five infantry brigades and one ceremonial cavalry squadron.
The total numbers of officers are 75,000 active soldiers and 25,000 tribal levies.
o Police/Shurta: The Saudi Arabia Police is responsible for the upholding and protection of peace and order
throughout the country. The Police Force in K.S.A was formed under the rules of first King. In addition to the
8. police, the responsibility for the preservation of Law and order was also shred by Shaykhs of the tribal groups.
This power was granted to them by the King of Saudi Arabia. They even had the power to punish offenders of the
civil Law. The police force is known as the Public Security Forces. These forces can seek help from the military
forces in times of need.
The conceptof civil defense
The definition ofcivil defense: Civil defense in Saudi Arabia as it is known by the civil defense system released by
Royal Decree NO. M/10 on 05-10-1406, correspond=ding to 20-01-1986 is: a set of measures and actions necessary for
protecting the citizens, public and private properties from fire hazards, disasters, wars and different accidents plus helping
devastated people, providing the safety of transportations, communications, and the best organizing in public utilities in
The work of the civil defense during peace time:
1) Providing relief to the affected people in emergency situations.
2) Training the volunteers to carry out the acts of civil defense.
3) Organizing the rules and the means of industrial safety and security.
4) Fire fighting, fire extinguisher, rescue,and ambulance.
5) Establishing operating rooms, centers for civil defense and identifying the necessary specifications and
supervisions of the shelters to protect the population.
6) Creating and preparing the civil defense formations of different majors and processing it with the necessary
equipments and means.
7) Storage of various materials and equipment necessary to sustain life in war emergencies and disastrous
situations.
8) The preparation and implementation of the necessary actions that aims to achieve safety and to avoid disasters
and to remove its effects in addition to providing cash subsidy.
9) Use the media to achieve the objectives of civil defense.
10) Implementation of the plans of evacuation and accommodation in emergency cases.
The work of civil defense during war time:
1) organizing the rules and the means of warning concerning dangers and air raids.
2) Prevention of air raids and the effects of destructive weapons.
3) Restrictions on lighting.
4) Restrictions on traffic.
Addition to the protection of national wealth during the times of war, peace,and emergency situations.
The GeneralDirectorate ofCivil Defense:One of the security sectors related to the Interior
Ministry is also associated with the Assistant of Interior Minister for Security Affairs.
Objectives:
1) Providing protection to both people, public and private properties in addition to the sources of national wealth
from the dangers of disasters and war.
2) Establishing public safety in all activities that are considered to be necessary to life, industrial, agricultural,
commercial, and residential.
3) Providing all the regions of the kingdom with different services concerning fires, rescue services,and
ambulance.
4) Proposing of the plans, projects, and civil defense measures and follow up implementation.
5) Implementing all what is related to its major concerning the plans, projects, civil defense procedures,in
addition to the decisions issued by the council of civil defense and the Interior Minister and Head Council of the
civil defense.
6) Setting the rules and means of safety in the industrial, agricultural, commercial, residential, and follow up
application in the sectors and government and civil institutions.
7) Inspection work for the business and residential and industrial, agricultural facilities in order to ensure the
9. availability of procedures and required safety and risk control and intervention to avoid before they occur.
8) Quick intervention in incidents of fire in order to control and eradicate it before it develops.
9) Rapid interference in different cases of rescue as they occur under normal circumstances.
10) Take appropriate action to address the disaster according to the decision taken by the prime Minister of the
Interior and the Head Council of the civil defense in order to take advantage of the possibilities of military forces
and others, and whatever it needs requiring the necessary people, tasks, and tools to assist them in performing
their functions.
Political Life:
Government Structure:
Saudi Arabia is a complete supreme Monarchy where King essentially rules by decree that does not mean the judicial
structures are entirely absent or the King’s powers are limitless. The Monarch appoints cabinet ministers, governors of
provinces, senior military officers and ambassadors. He is also commanded in chief of the Armed forces and the final
court of appeal with power pardon. The Mutawaa’in or the religious police constitute the Committee to prevent vice and
Promote Virtue. The semi-autonomous group enforces complaisance with Islamic customs.
Government Spending:
High petroleum prices in the 1970s boosted Saudi revenue and allowed increased in spending. A series of ambitious, high
cost, initiatives were launched to develop the nations infrastructure expand industries and agriculture, services of health
and education and also to modernize the military. The Saudis Government has expressed an interest in decentralizing the
economy and increasing private sector participation. Many workers in Saudi Arabia are from other countries and send
home much of their earnings. Opening private sector up to great foreign participation-allowing for instance, non-Saudis to
buy homes and invest in local companies-could provide a means for keeping more capital in local markets.
Taxation:
Saudi Arabia has very limited tax Administration, as it relies mostly on oil receipts, custom duties and licensing fees to
produce government revenue. Saudi nationals rather than paying income or property taxes pay Zakkat Of annual 2.5 %
assessment of a person’s net personal wealth.
Foreign Companies and self-employed foreigners are not obliged to pay the Zakkat but are charged with income taxes
which range from 25% on income under US$26,667 to 45% on income over US$266,667.
Saudi Arabia also charges Tariffs on import goods which vary from 12% to 20%. In order to gain entry into the WTO,the
government will have to lower these Tariffs to a maximum of 7.5%.
Leaderships and Political Officials:
There are no political parties but the Royal family is a large grouping with significant political influences. It consists of
about 20,000 people and has severalmain branches and clans. Some Princess is especially influential in Politics while
other is active in Business. Opposition groups exist outside the country. Political upheavals, some of them violent have
taken place yet the political system has remained relatively stable over decades of rapid economic, social and
demographics change.
Division of Labor by Gender:
10. Strict gender separation is sanctioned by the state and society. Males and females who are not barred from marriage by
incest rules should not interact in individual or group settings. Women may work outside the home in settings where they
do not have contact with unrelated men. Sections of markets are set aside for women sellers. However,only 7% of Saudi
Arabia’s formal workforce is female.
The Relative Status of Women and Men:
Men have more rights than women in Saudi Arabia. Women are not allowed to drive, cannot travel abroad without the
permission or presence of a male guardian; they are dependent of father,brothers or husband. Significant number of
women has had high levels of success in the academic, business and other fields yet their achievements go publically
unremarked and they are barred from the most aspects of public life.
Trade Barriers:
Saudi Arabia is currently in the process of taking over to the World Trade Organization (WTO) and as a result,
once Saudi Arabia is admitted, the country’s trade regime should become more accommodating to Non- Saudi
business and transparent. Saudi Law often Favor Saudi citizens and the Kingdom still has a different set of trade
barriers, mainly regulatory and bureaucratic practices which restrict the level of trade.
For example, only Saudi Nationals are permitted to engage in trading activities. All industrial Enterprises are open
to non-Saudis, and they can also trade in the products they manufacture. Non-Saudis are not permitted to register
as commercial agents.
Business Visas:
All visitors to Saudi Arabia must have a Saudi sponsor in order to obtain a business visa to enter Saudi Arabia.
The Saudi who agrees to act as a sponsor accepts certain legal obligations including personal liability for the
actions of the visitor. Therefore,a Saudi rarely assumes sponsorship unless he has a personal interest in the
proposed visit. In practice, this makes it very difficult for an American business person to visit Saudi Arabia to
investigate the market or to select a local representative without incurring some obligation to his sponsor. The
Saudi Arabian Government has indicated that U.S.citizens of the Jewish faith as well as U.S. citizens with an
Israeli exit and entry stamp should face no difficulty in getting a visa to visit Saudi Arabia. The Embassy is
hopeful that the Saudi Government will very soon permit American businessmen to have two-year, multi-entry
visas at reasonable price.
Intellectual Property Protection:
The Saudi legal system protects and facilitates acquisition and disposition of all property rights, including
intellectual property. The Saudi Government has acceded to the Universal Copyright Convention;
implementation began on July 13, 1994. The Saudi Government has taken actions to enforce copyrights of U.S.
firms, and pirated material has been seized or forced off the shelves of a number of stores. The latest religious
edict (Fatwa) by the highest religious authority in Saudi Arabia condemns software piracy. Overall, however,
piracy remains problem.
Protective Tariffs and Non-Tariff Trade Barriers:
Saudi Tariff protection is generally moderate but has increased over the years. A number of Saudi “ infant
industries “ now enjoying 20% tariff protection as apposed to the general rate of 12%. Saudis non- tariff barriers
also are increasing.
Customs Valuation:
11. All merchandise moving through Saudi customs ports is appraised by the Department of Customs of the Ministry
of Finance. Import valuation is primarily used for collection of import Duties and often does not reflect the actual
transaction value. Although Saudi Arabia is a member of the Customs Coordination Council, Saudi Customs
officers do not have the authority to do investigative work on business premises; nor do they have enforcement
powers.
Agency that Interpret and Acquire Equipment for Saudi Military:
Government play vital role in each and every aspects of Country matters. So there is no separate agency rather the
Saudi Government who specifies equipment for the Military. Saudi Arabia has long been dependent on the
nations for virtually all of its arms and military technology. Saudi Arabia is making some slow progress in
developing an indigenous arms industry. Saudi Arabia has no reason to build major weapon equipments, when it
can buy from the United States,Europe and Russia. The Saudi Military is highly influenced by the British forces,
who provide them with aircrafts and advisers and help to train Saudi Pilots and officers who maintain personnel in
the Kingdom and in Britain. Saudi Arabia directly purchases arms directly from American Corporation, bypassing
Pentagon middlemen. Such purchases include the $300 million upgrade and support system for the maintenance
of such heavy equipments.
Saudi Arabia’s main Imports and Export, Business, Market, their Needs,
Values and Attitude:
Saudi Arabia’s imports coffee,sugar, rice and out of which Clothes are also imported from outside the country
and major exports include Oil. There is no Local industry of wool in Saudi Arabia. Saudi Arabia shows no interest
of having Local wool industry within the Kingdom, but it is very important product, because as long as the 90%
of export of Oil remains the major business of the Government, the country enjoys billions of revenue. A country
illustrate that they can import any products from the other countries they need. The attitude of Government
towards the wool industry will be excellent, if a foreign country wants tot market they wool-clothing in the
market, but the rules of Tariffs remains strict, for wool product it range from 5-15%.Minimum import price are
use for custom valuations. Moreover there is no chance of bribery or corruption because Saudi Government
prohibits the use of illegal, off beam and pirated products and all are ban. However the favoritism remains limited,
as Saudi Government encourages favoritism to Saudi citizens only for trade and business.
12. Cultural Determinants:
Geert Hofstede Cultural Dimensions: “Culture is more often a source of confliction
than of synergy, Cultural difference are a nuisance at best and often a disaster,” By Prof. Geert
Hofstede.
1. Masculinity Index (MAS) of Saudi Arabia in Geert Hofstede Dimension indicates that the country is a
highly man dominant society while the women rights remain partial and restricted. The country has a
relative status of women and men- this is due to the Islamic religion, where women are bounded with
families, rules and regulation and cannot have public privileges.
80
5
90
60
50
PDI IDV MAS UAI LTO
Saudi Arabia
Series 1
13. 2. The next highest ranking in the Geert Hofstede dimension is the (PDI) Power Distance Index which
shows that power and wealth is equally distributed among the Saudi citizens. The government treats
citizens equally and justice is done regularly and uniformly.
3. Where as compared with others (UAI) Uncertainty Avoidance Index shows that in order to lower or
wipe out the level of uncertainty, very strict rules and regulations, government laws and policies are
embrace and implemented. The goal of the Country is to control everything in order to eliminate the
unexpected. However the society does not accept change and is very risk unfavorable.
4. (LTO) long-term orientation in this dimension shows that the society believes in meeting its compulsion
and responsibilities and indicates positive reception towards its culture.
5. If we look and consider Individualism (IDV) we see the lowest ranking of 5 in the Geert Hofstede
Dimension reflect the society where the families are united – a society where individualism doesn’t exist
–the society where individual is not self-dependent indeed a very powerful bound.
Market Penetrating Plan:
Yet the Kingdom Of SaudiArabia is a stable Market with a stable Government but
remains difficult to cross the threshold…….
For a successfulapproach The Armadillo Marino must develop a thorough strategy plan. A perfect market
analysis will prove to be enhanced idea. Training personnel’s, market entry plan, outline the market trends,
consumer behavior, market size, competitors, resources,pricing, marketing and target marketing.
Strategy Planning:
Country Analysis:
Saudi Arabia is a hard-hitting place to start a business, although the government is very stable and organzied but
entring policies remain harsh. A lot of procedures were required in order to enter the country where market remains
another phase but that was a past now the Saudi Government has announced that any foreign business man can have a
business visa and can show the interest to do the business but rules and registrations process still remains strict. But due to
best stability of market Mr.Caughey must introduce their product in the Kingdom.
Entering the Country:
Firstly Mr.Caughey purchase business visa for visiting the Saudi Arabia and it can be issues for this purpose very easily,
while getting visa Mr.Caughey must explain the exact purpose of the business to Saudi Embassy about the product and
also mention that the target customer will be the Government. Then, after arriving He need to have a Local Saudi business
partner or the sponsor , as Saudi never agree with the partnership until and unless they find their own personal interest in
the business but that is not a big problem. After this Mr.Caughey may need to explain his whole business plan to the
partner so he could arrange and form important business documents and also he will arrange lawyer who will explain the
legal formalities to undertake before starting a business and will protect our interest .
14. Once everything is arranged then business is registered legally Mr.Caughy must show the Ministry of Commerce
investment theory that he have substantial amount of capital for investment.
Training Personnel’s:
After successfulregistration process, Mr.Caughey should bring the sponsor to the Host country so he can explain
company the rules and regulations, values, norms and proper manner and etiquette for proper negotiation that would meet
the business deal as the target customer will be the government, however the personnel’s need to be properly trained in
order to negotiate with the government officials.
Market Size and Scope:
The company will have the bigger picture of the market, huge size, a lot of competitors, but attracting Saudi and winning
their interest will surely help to conquer the market. Government should fill the government tenders, or discuss their
product with the Government directly. As relationships building takes time with Saudi Government takes time so patience
is required. The defining of corporate mission is necessary as it gives an idea why company is here and what he wants to
market, then Mr.Caughey must define the major competitive scope whether its is in industry scope, product and
application scope, competence scope ,market-segmentscope,vertical or geographical scope.
Major Scope:
It will be Market –Segment scope and will touch the Civil Defense Forces and Police of the Kingdom.
The Boston Consulting Group Approach:
Armadillo Marino Company must analyze should follow the Boston Consulting Group approach in order to measure the
growth share matrix and relative market share. The Boston Consulting Group consist of Question marks, Stars, Cash Cow
and Dogs through this approach the company comes to know under which category it falls.
Market Opportunity Analysis (MOA):
The Armadillo Company now applies (MOA) to determine the attractiveness and success probability of opportunity. The
company must determine that the target market be located and reach with cost-effective media and trade channels? Can
the company able to give successfulbenefits better than their competitors? Will the financial rate of return meet or exceed
the company’s required investment.
Task # 2. Setting up a Virtual Company:
Setting up a virtual company will give a new outlook to the company and the product will market on global basis, but the
setting up the procedure and applications design will vary according to the country’s norms, values, behavior accordingly.
As setting up the virtual company in Saudi Arabia Mr. Caughey may need to consider on some measure entity.
New Zealand Marino Wool: The product of Armadillo Marino defines “Professional Risk Takers” which includes
civil defense,fire department workers,navy, police, forces,mining industry and other heavy industry. The Government of
K.S.A will never allow the product to promote or present publically, which means puff online selling to consumers or
direct marketing is prohibited because the all the decision regarding forces from their shoes to guise is taken by
government itself .
15. Armadillomust enter the market physically and advertisetheir
productheavily…Mr.Caugheyshould set a Fire in the Kingdom
Market.
I will suggest Mr.Caughey rather going online or setting virtual company Armadillo Marino step in to the
market physically than selling their product via online services. Leave every field of K.S.A forces behind just
target /highlight Civil Defense Force which is the Fire Defense and Shurta/ Police. The civilian of Saudi Arabia
are greatly inspired by the Civil Defense and they considered them their nations HERO. So this may prove to be
huge competitive advantage for the company. For a successful business achievement Mr.Caughey must do
breathtaking and groundbreaking marketing in which he must show how fire fighters and police are helping the
Civilian and how the product of Armadillo helping them to overcome the problems caused by different
situations also how they look perfect inspiration and hero from their dresses by wearing the Marino Wool which
is specially design for the Professional risk takers and the focus must be on the Youth which they call
“SHABAB”. This sort of advertisement will not only encourage the young generation of Arab citizens to enter
the field of forces but also this will create a new overwhelming brand positioning in the consumer mind which
is the Saudi Government.
However a good CRM customer relation management will act as a key factor. It will help to build and maintain
high customer equity. It will also help to define Value equity –which will indicate how much customer is happy
with product and its quality. Brand equity-how the product will communicate in the market and what customer
will perceive, Relation equity-how much customer will stick to the product.
It will all help the Armadillo Marino to recognize the consumer behavior in an appropriate way. Though
how tough the market is but good approach always proves to be positive impact not only onto the country but
also on the global basis.
Task#3.Using Social Networking:
Suggestion:
Mr.Caughey must focus on the Brand Ambassador to promote the product in the KSA. Saudi citizens are more profound
of Huge Personalities of Indian Film Industry. Armadillo must make the brand ambassador of the product to male actor of
Indian Movie Star Sharukh Khan or Amitab Bachan as Saudis are their biggest fan and follows their style blindly, so no
doubt the civil defense forces will be very attracted to the product and the Saudi Government accepts their people likes
and dislikes.
