Peugeot: Analyzing Cross-Cultural Management Issues in Saudi Arabia

This report provides an in-depth analysis of the cross-cultural management challenges faced by Peugeot in Saudi Arabia. It begins by defining cross-cultural management and its significance in international business, emphasizing the need for businesses to adapt to diverse cultural practices. The report then explores key cultural factors impacting business operations in Saudi Arabia, including hierarchy, attitudes toward time, communication styles, the influence of Islam, and interpersonal relationships. It delves into the definition of culture, its role in international business, and the effects of socio-cultural factors such as communication, workplace etiquette, and organizational hierarchy. The report also examines the impacts of culture on international strategic business management, covering negotiations, organizational cultures, and time differences. It further discusses the impact of culture on leadership, ways to enhance intercultural communication, and the importance of culture in negotiation processes. Finally, it addresses the philosophies underpinning the management of people, considering legal, political, economic, demographic, and technological factors within a cross-cultural context.

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Peugeot Cross Cultural Management Issues in Saudi Arabia
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Peugeot Cross Cultural Management Issues in Saudi Arabia
Background
Cross-cultural management is a well-organized and proper management of various work teams.
A management practice that considers different parties practices, cultures as well as preferences
of clients in the entire globe. Businesses in the entire globe are therefore advised to adapt or
rather modify the manner that they carry their daily operations. This is to have a diversity in the
way of their day-to-day activities and portray a picture of embracing various cultures from all
walks of life. The firms will then be in the position of competing in a level field that is never
associated with physical geography known for numerous online business interactions (Wilson, &
Hollensen 2010, p. 180). All the businesses that have always fully embraced the cross-cultural
management practices have always recruited individuals that are of more importance in cross-
cultural environments. It is a management that has always ensured the respective firm's
employees are well trained in line with handling intercultural issues of communication. The
practice has always assisted in handling differing environmental business issues. Finally is that it
has always facilitated the respective cross-cultural groups. Businesses have been witnessed to be
reading from the same page for a good time, a move that has gone well with the firms that saw
the need to embrace this culture. Their employees have learned a lot in return, besides these
firms have been recording profits and good progress. Some of the cross-cultural management
factors affecting businesses in Saudi Arabia include hierarchy, attitude to time, communication
style, Islam and relationship. They are factors that are to be considered and recommended actions
taken for the betterment of any business operation in Saudi Arabia.

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Culture definition, its role in International Business Context and Effects of Socio-Cultural
Factors
Definition of Culture
Culture is usually the knowledge as well as the characteristics of a particular team or rather
group of people; a team or group who share the same language, cuisine, religion, music, arts, and
social habits. A further definition of culture is that it is a shared pattern of interactions and
behavior, cognitive understanding and constructs that are known or rather learned by
socialization (Brondoni 2008, p. 20). Thus culture can be illustrated as the given growth of a
team or group identity brought up by given social patterns that are usually much unique to the
team or group. Culture encompasses food, religion, how we wear, what we eat, our marriage, our
language, music what we believe is wrong or right, the manner we great visitors, how we sit, the
manner we behave with loved ones not forgetting other million factors.
The Role of Culture in International Business and the Effects of Socio-Cultural Factors
Culture has been witnessed to be affecting international business operations in three major areas.
These include etiquette, communication and Organizational hierarchy (Ahmed, Anang, Othman,
& Sambasivan 2013 p. 560). Besides some of the socio-cultural factors affecting international
business includes culture, religion, language, customer preference and level of education to
mention a few.
Communication
Effective communication has always been encouraged in any business setting. It is a tool for any
business prosperity and success since the entire employees from all the departments tend to be
reading from the same page. The problem only comes in with a risk of the intended message
getting misinterpreted or rather lost in translation (OLFlynn 2016, p. 285). A good number of

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international businesses are seen to be using English as the language for communication. It is
also essential to consider the manner that you convey the respective language since it also
counts. An example is a case where any firm in the public domain embraces the English
language; Indian professionals are given to be nuanced and indirect in their form of
communication.
Workplace Etiquette
The variations and differences in professional communication have been seen as one of the vital
differences in workplace norms in the entire globe. An example is the use of formality of address
that has been a more significant consideration when dealing with business partners and various
colleagues from different nations. Whatever is considered is whether the nation prefers first –
name or surnames and titles? This an operation that has always been seen to vary across the
organizations. Canadians and America countries are seen to be using first names while China,
Singapore, and South Korea tend to embrace formal "Mr/Ms. and Mrs. Surname". It is up to the
Peugeot firm to ensure that they identify what is preferred in Saudi Arabia and embraces it fully
(Kleist 2016, p. 285). It will assist the firm in interacting with potential Saudi Arabia's clients
and will ultimately attain their set down goals.
Organizational Hierarchy
Organizational attitudes and hierarchy in line with any firm’s management roles are also given to
vary between various cultures widely. This is whether or not the employees in middle or junior
positions appear to be comfortable raising ideas in meetings, questions decisions from the upper
management board or coming up with conflicting ideas from the senior decisions (Soltani, Syed,
Liao, & Iqbal 2015, p. 800). For activities that are as well dictated by firms’ cultural beliefs, any
firm in the public domain should always see the need of coming up with a culture that every

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individual will feel included regardless of the positions they are holding in the firm. It is a move
that will normally see any employee positively contribute to the firm’s decisions and so the
attainment of its goals ultimately. The Peugeot firm in Saudi Arabia is as well advised to
embrace this type of management style to ensure their entire employees from all departments
share essential ideas and puts them into practice for a better tomorrow.
Level of Education
The level of education has also been leading to a lot of witnessed differences in workplace. The
fact that the globe has got very many professionals with different levels of education, working
with them at some point has been difficult (Tekeli, & Fouli 2017, p. 1250). The less educated
parties at some point have a feeling of being left out in crucial business decision making, a move
that has always led to differences and so firms never working as a single entity.
Impacts of Culture on International Strategic Business Management
International businesses are given to be affected in the event that it has different colleagues from
the entire globe, some of the effects are as below;
Negotiations
Employees from different countries are given to negotiate to arrive at an amicable solution
(Thanasuta, Patoomsuwan, Chaimahawong, & Chiaravutthi 2009, p. 370). Some cultures prefer
treating issues very much delicately while a given culture may believe in being open and direct
to the point based on the manner various issues at the workplace should be handled. This the
reason behind the firm's coming up with agenda so that every individual is aware of what is
expected at the meeting.
Organizational Cultures

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Businesses are normally done differently in various parts of the world. There is a different level
of emphasis that is ensured on activities like hierarchy, timekeeping and dress code. There some
parts of the world that employees refer to their fellows informally take a lot of breaks and wear
jeans. In other firms however every party will be using titles, take care to be punctual and wear
suits (Hemphill 2009, p. 560). There are equally important, and none of them is better than the
other. It is up to any organization to settle for one that best defines them.
Time differences
It is usually much advisable for any firm to be aware of different time zones when operating in
an international setting. This is following the fact that they will be dealing with international
colleagues and clients. There is also a need to install an application of the firm’s computers or
employee’s smartphones where every party can comfortably be aware of time in different parts
of the world. This an activity that will aid in making communications at the right time (Kirpalani
2012, p. 55).The above-discussed measures will affect any firm's strategic management in that
they will restrategize for the betterment of the firm as well as considering their entire employee's
opinion. The French car firm is advised to consider all these factors and fully embrace them in
Saudi Arabia.
Effects of Culture as an explanatory factor to understanding Leadership, ways of
enhancing intercultural communication and the Importance of Culture in Negotiation
Processes
Impacts of Culture as an explanatory factor
Culture has been seen to be coming with various impacts in any international business setting. It
ensures that every employee in the firm gets to learn a different norm from a different natural
setting. Decisions that are made in the firm as well are widely looked at and discussed leading to

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amicable solutions. Employees are seen to be acquiring various traits and may at some point
apply them if a need arises and at the required time (Pandya 2014, p. 100). Leadership, in this
case, have to be very much considerate. Culture ensures that international leaders widely consult
before setting for any decision. They do a lot of research that advances them concerning
whatever they deliver. A leader that works in an international setting is more exposed and have a
lot of information on the right strategies that can best work at any point in the entire globe.
Ways of Enhancing Intercultural Communication
The ways that enhance intercultural communication are being respectful, asking questions,
learning about other cultures, avoiding the usage of idioms and slang and being aware to mention
a few.
Respect
When you maintain respect, you will be treating others appropriately. An operation that is
essential as far as closing and opening any conversation is concerned (Kirpalani 2013, p. 1). It is
usually very much recommended that any individual consults widely in the right manner of
approaching the other party when you aren’t aware.
Asking Questions
It is in order to be an attentive listener since it is the only way you will be checking any issue
with the aim of understanding (Aggarwal, Berrill, Hutson, & Kearney 2011, p. 570). Any
individual is as well advised to be asking relevant questions in the event that they have doubts.
Be aware

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It is advisable that an employee is aware of their energy and body (Belk, & Rafferty 2012, p.
260). Nonverbal gestures and cues at times communicate on who you are. Besides, its
recommended that you pay relevant attention to be informed of your colleague's gestures and
cues. These are some of the few ways of enhancing intercultural communication.
Importance of Culture in Negotiation Processes
The importance of culture in the negotiation process is that employees will have to learn their
colleague’s way of life from all walks of life. Employees are given to listen and understand how
a certain group in society think and reason (Cohen, & Naor 2013, p. 585). It is a negotiation that
will ensure employees and their leaders are much informed as far as other daily operations are
taking place.
Philosophies underpinning the Management of people and their links to culture and
Factors Influencing Motivation in a cross-cultural context
The following are the philosophies underpinning the Management of people; legal and political
factors, economic conditions, work demographics, and technological advancements.
Legal and Political Factors
The stability and nature of a good number of nation’s political systems vary from nation to
nation. Certain nations have got stable and well-organized systems, most of them being the
developed nations. It is however known that the president, prime minister, governors, premiers,
senators and other representatives change with time. The legal systems as well are very much
established, and any global firm can count on them on its consistency and continuity (Wilson, &
Hollensen 2010, p. 180). This, however, does not apply in the entire nations; other nations
systems of government are turbulent. Some governments are overthrown by the assistance of the

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military coup and other government being ruled by despots and dictators hence hindering the
management technique of a potential leader.
Technological Advances
Technology has been seen to be growing at an alarming rate. There are a lot of advances that are
witnessed to be initiated. Some of the technological advances require training for sometimes
before any firm can fully embrace it (Brondoni 2008, p. 30). It is a move that has always been an
obstacle to leaders at some point in their daily operations as a firm.
Economic Conditions
Economic conditions have been witnessed to be affecting potential employee’s talent pools; it as
well affects the ability of a manager to hire the recommended employees (Ahmed, Anang,
Othman, & Sambasivan 2013, p. 560). It is then advisable for leaders to not only be informed on
whatever is taking place around their business world but also come up with a well-organized
strategy to be put in place in the event that there is an economic downturn.
Factors Influencing Motivation in a cross-cultural context
The following are the factors influencing motivation in a cross-cultural context, hygiene factors
that include salary, supervision, company policy, job security, working conditions interpersonal
relations to mention a few.
Company Policy
The terms and conditions that are put in place which considers the entire employee's culture
motivate them (OLFlynn 2016, p. 285). Every individual is having a feeling of being considered
and respected as part of the firm. They are then given to work towards uplifting their colleagues
at the workplace.
Job Security

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Employees will always be feeling safe and appreciated when their jobs are secured. They will be
motivated in fully exploring their task at the workplace that will be of importance to not only the
firm but also their fellow employees (Kleist 2016, p. 286). They will share a lot since they are
very close to one another and will even advance more in line with whatever is expected from
them to mention a few. These are some of the measures that the Peugeot firm should entirely
look at and ensure they are implemented.

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List of References
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Pandya, S., 2014. Yemenis and Muwalladīn in Addis Ababa: Blood Purity and the Opportunities
of Hybridity. Journal of Arabian Studies, 4(1), pp.96-114.
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