Archives for February 2017

Doing Business During Ramadan

One interesting aspect to doing business in Islamic countries is the dynamic during the Holy month of Ramadan. People doing business in Muslim countries during Ramadan often find a lower level of productivity and increased difficulty in meeting deadlines, as well as challenges when scheduling meetings (Maclachlan, 2010). Their Muslim counterparts can be irritable and less receptive as well.

As a background, Ramadan commences on the ninth month of the Islamic calendar and is a month of fasting for all Muslims. Fasting is one of the Five Pillars of Islamic Belief, and during this 30-day period, one abstains from all food and drink during daylight hours (approximately 17 hours), as well as marital relations. It is even legally enforced in countries such as Saudi Arabia (Moran, Abramson, & Moran, 2014). According to the Qur’an, “fasting is prescribed for you as it was prescribed to those before you, so that you may learn self-restraint.” Fasting is considered by Muslims as a means to improve moral character and an opportunity for spiritual renewal (Islamic Foundation of Toronto, 2017).

The month of fasting affects the normal, routine business practices in the Middle East and other Muslim countries throughout the world. According to Jordanian economists studying the impact of Ramadan, productivity during the holy month shrinks by 35-50% across the Muslim world, depending on the countries (Morgan Philips Executive Search: Africa, 2015). Because of the exhaustion caused from the lack of rest and nutrients, critical business decisions such as partnerships, contracts etc. are often postponed by the major parties in an effort to thwart irrationality (Morgan Philips Executive Search: Africa, 2015).

So how does an international company adapt to this custom, in countries where Western business practices already clash with Islamic business practice? Cultural awareness and sensitivity should be at a heightened level during this month, where patience and respect go a long way. I have had personal experience when travelling for business in some Muslim countries such as Indonesia, Morocco and Fiji (partially Muslim), and even the most basic lunch meetings are awkward occasions when the person whom you are meeting can’t dine. There is certainly an intangible tension in the air.

One clever adaptation to Ramadan was an initiative started by the company Samsung. Samsung has agreed to give part of its profits to a humanitarian organization each time certain products are purchased during Ramadan. As the head of Samsung Corporate Marketing states, “The Holy Month is the perfect opportunity to demonstrate the company’s commitment to corporate social responsibility and ongoing dedication to helping those in need” (Morgan Philips Executive Search: Africa, 2015). By taking this approach, Samsung is abiding by one of the Five Pillars of Islamic Belief, that of Almsgiving, which states that all believers must give to the needy (Moran, Abramson, & Moran, 2014). This is a perfect example of a bit of capitalism fused with cultural sensitivity.

References:

Islamic Foundation of Toronto. (2017). The Islamic Foundation. Retrieved from: http://www.islamicfoundation.ca/ramadan.aspx

Maclachlan, Mathew. (2010). The Impact of Ramadan on Global Business. Communicaid Group Limited. Retrieved from: https://www.communicaid.com/cross-cultural-training/blog/the-impact-of-ramadan-on-global-busines/

Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing Cultural Differences (9th ed.). Oxford:Routledge.

Morgan Philips Executive Search: Africa. (2015). Ramadan’s Impact on Business- Holy Days. Retrieved from: http://www.morganphilipsexecutivesearch.com/blog/ramadans-impact-on-business-holy-days/

 

 

 

Biases and assumptions block many people from seeing clearly. These biases are often easier to spot by their ethnocentric and egocentric behaviors but they can be more challenging to identify within ourselves. That has been the case for many Americans when it comes to their biases and assumptions toward people from the Middle East.

Islam is the largest religion in the world and it promotes peace and tolerance (The Pennsylvania State University, 2017). Using a logical test called the “Imagination Test” we could imagine that due to the vast number of practicing Muslims there are some extremists among them who don’t value peace and tolerance. We know from historical events like 9/11 that there are indeed extremists in that group, and they have carried out terrorist attacks. So whether we can imagine that or not, it’s a historical fact that they exist (history.com Staff, 2010). And yet still we cannot say that all Muslims are terrorists, it’s not logical to believe that.

“Do not make assumptions based on trends, instead get to know the people and the situation” (The Pennsylvania State University, 2017). This isn’t just true in the context of a cultural discussion but it’s true of any trend. In statistics, there is a general phrase that states, “correlation does not imply causation” and this also applies to what we know about the Middle East. Just because there have been multiple terrorist attacks on America from Muslims that does not mean that all Muslims are terrorists.

I work in the technology industry and I’ve had the chance to work with many cultures. I’ve found Middle Eastern cultures to be some of the most kind and peaceful people that I’ve worked with. According to The Economist, more terrorists attacks are carried out in the Middle East than any other place (2015). This implies that it could be more correct to view the majority of Muslims as victims rather than terrorists. Sometimes we lack the empathy we need to step back from our emotionally clouded opinions and see that these cultures as they really are. They may in fact be dealing with more terrorism locally than the rest of the world is globally.

Be fair to the world and the cultures around you. Biases and assumptions are not fair and valid ways of understanding people. The way to understand people who are different than us is to get to know them and their situations (The Pennsylvania State University, 2017). That understanding will help cultivate the empathy we need to embrace other cultures like the ones from the Middle East who might in fact, be victims themselves.

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References
History.com Staff. (2010). 9/11 Attacks. Retrieved February 26, 2017, from http://www.history.com/topics/9-11-attacks

Pennsylvania State University (2017). Lesson 01: Introduction to Leadership in a Global Context [ ]. Retrieved from https://psu.instructure.com/courses/1826457/modules/items/21654133

The plague of global terrorism. (2015, November 18). Retrieved February 26, 2017, from http://www.economist.com/blogs/graphicdetail/2015/11/daily-chart-12

 

       In nations that are known for their repressive treatment of women more and more women entrepreneurs are coming out of the Middle East. Muslim women throughout the Middle East have been slowly advancing in both leadership and business. From nations where women are under extremely strict, repressive laws women are rising up in the workforce. Laws have been put into place that offer women more rights and opportunities to advance in business and politics. “King Abdallah has instituted some changes in the country that break with tradition. Politically, allowing women to vote and run for office is somewhat of a break with sharia law. “ (Penn State Lesson 7)  Arab women currently only make up 5% of the workforce in the Middle East yet make up 35% of tech entrepreneurs. Women in the Middle East have turned to alternative work methods in order to balance both religious and familial obligations and business goals.

    Women are able to maintain their traditional responsibilities while working in tech. Although the Quran teaches that men and women are spiritually equal there are specific gender responsibilities. According to the Quran, women are to focus on family needs, tending to the home where men focus on creating income for the family. The idea is that there is a balance fulfills all the needs of the family. “Women in many Islamic societies are expected to marry, obey their husbands, bring up children, stay at home, and avoid participation in public life.” (BBC) Muslim women are not necessarily opposing the values in the Quran, or their role in society rather they are adopting jobs that will allow them to do both. Entrepreneur Sally Sabry, states “Even before wearing niqab, I wanted to work. I mean it was in my mind; I wasn’t closed that I have to get married and sit at home or anything. I want to have a goal and make it.”(BBC)  It’s not uncommon for husbands to demand that their wives stay at home. By working in tech from home, women feel they are are able to fulfill their entrepreneurship ambitions while adhering to cultural expectations.

     Working behind computer screens allows women to combat gender inequality and sexual harassment. According to the BBC news, “surveys say many Middle Eastern women face some form of sexual harassment every day.” This is often times physical harassment and is seen regardless of how covered the women is. Working from home offers women the protection they need. BBC News interviewed rising women in tech,  One panelist notes, “It’s sometimes hard to get taken seriously, try telling a male employee that he has made a mistake. It’s extremely difficult.”

     Although Middle Eastern regions have a large way to go to achieve gender equality, women in tech are paving the way for future generations for women in business. Muslim tech entrepreneur  Sarah Abu Alia states,  “As a woman, you have to fight for everything here, which is a great preparation for being an entrepreneur.” Sarah is the founder of ArtMedium a channel for alternative Arab music. Education, legislation, and ambition will change Middle Eastern Society.

 

Works Cited

 

Egypt’s sexual harassment of women ‘epidemic’ (2012, September 03). Retrieved February 26, 2017, from

(2013, July 26). Why the Middle East is Beating Out the World in Female Tech Entrepreneurs. Retrieved February 26, 2017, from

Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing cultural differences. New York, NY: Routledge.

Pennsylvania State University, World Wide Campus. (2017) OLEAD 410. Lesson 7: The Middle East focus on Saudi Arabia

 

Doing business in the middle east can be a very rewarding business but you can have your ups and downs like any other business. However, we would have to be careful when doing business in the area, as they are very religious. Turkey for example pushes out up to 1 million barrels per day in oil from the Caspian region. This is great business for the country and keeps them competitive the world economy. There is also a lot of opportunity in the country that a investor could take advantage of. Even though the neighborhoods need more improvements they have a lot of natural resources that people can invest in. Some of their natural resources include coal, iron, gold, limestones, and marble. All of these resources can make for good business investment. One thing that we would have to be a little worried about is Turkeys politics and complex bureaucracy.

Some other things to consider when doing business in turkey is human rights there is a high percentage of child labor that happens in the middle east that would be illegal for an American company to be part of. However, these children are probably working in order to make a better living for their family not because they are forced to do so. This would be something that American companies would have to handle with white gloves since there are so many. Along with these we have to consider the corruption that can go on with American companies, because we are Americans.

Safety would also be at the top of the list when doing business in the middle east. We unfortunately have to think about terrorism that can come from people not wanting us to be doing business in their country. Even though more people will be accepting on doing business in their country because this can bring jobs to the country and help the economy, it’s the one that don’t agree with it that we have to worry about because they are the small groups that  operate in silence to make a big statement usually involving people getting hurt.

 

Overseas Business Risk – Turkey. (n.d.). Retrieved February 26, 2017, from https://www.gov.uk/government/publications/overseas-business-risk-turkey/overseas-business-risk-turkey

Contact CIA. (2016, April 01). Retrieved February 26, 2017, from https://www.cia.gov/library/publications/the-world-factbook/

I sat in 9^th grade history class and watched the towers fall on the television. Something changed in the air. I could see fear, despair, confusion, in the eyes of my teachers and classmates. September 11^th, 2001 is a day that the world will not forget, and it is a day that hatred and evil won over love and good. Most of my classmates knew little about the Muslim religion but were bombarded with headlines screaming ‘Terrorist’ and ‘Extremist’. When the planes hit, people banded together to help one another- the world cried. Over fifty Muslim states spoke out condemning this behavior that was against their true doctrine (Moran, 2014). The Hijab became something to fear. About three weeks after 9/11 one of our teachers came back to school. She was a converted American Muslim and went into hiding after the attacks out of fear for her life. She proceeded to resume her daily activities, with her hijab, the first time I saw her I was struck with fear. Fear of what? Fear of the unknown and fear from the news stories. To this day I am still ashamed of the ignorant fear. I ended up having a few classes with her senior year. I saw she embodied the true meaning of Islam- promoting peace and tolerance and condemning violence (PSU WC L.7, 2017). These fears changed over time through education and tolerance, as it can for anyone globally.

It is believed in the Muslim world that the West is hostile or angry with them and vice versa (Moran, 2014). Is it out of ignorance or misunderstanding of the others culture or way of life? The teacher at my high school recalled times years later, about how her tires were slashed and her car vandalized because she was a Muslim. A recent study states that “Americans (59%) believe there is a lot of discrimination against Muslims in the U.S. today, and even more (76%) say discrimination against Muslims in the U.S. is on the rise” (Lipka, 2016). This is due to the fear and anger towards Muslims because of an extremist attack. There are 1.5 billion Muslims in the world today (Moran, 2017). That is a large number of people to blame for one group, it is comparable base all Americans off of mass shootings that happen in our nation.

Moran states that “Islamic scholars maintain they are not against the West, but fear its power and influence within their own societies…” (Moran, 2014). These fears are valid due to their way of life- Westerners are notably more sexualized and liberal this goes against some of their beliefs. Islam is not just a religion, but a way of life (PSU WC, 2017). To work together globally American’s need to understand and be respectful of the Arabic culture. Not only out of respect but also due to the fact that many Middle Eastern nations where the Islamic teachings make their way into law (PSU WC, 2017).

While Islamic nations need to be more tolerant of the differences within the Wests culture. The Western business practices being more materialistic and more self-interest based and Islamic business practices being more focused on all interests, including spiritual. With both business styles being so different, there is much to learn from one and understand from one another. Specifically, Western business practices can learn more from Islamic standards of being a good manager, they have qualities like: keeping promises, loyalty to employer, fulfill all contracts and always be truthful (Moran, 2014). Islamic nations are becoming more modern and diverse (PSU WC, 2017). It would be important for Islamic nations to look to our business practices in relation to ethics and treatment of women as women are starting to get more rights. In fact Saudi Arabia legalized women’s rights to vote (PSU WC, 2017). All in all, both cultures can help globally to respect each-others diversity and grow from it.

 

 

Lipka, M. (2016, July 22). Muslims and Islam: Key findings in the U.S. and around the world. Retrieved February 24, 2017, from http://www.pewresearch.org/fact-tank/2016/07/22/muslims-and-islam-key-findings-in-the-u-s-and-around-the-world/

Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing cultural differences. New York, NY: Routledge.

Pennsylvania State University, World Wide Campus. (2017) OLEAD 410. Lesson 7: The Middle East focus on Saudi Arabia. Pg. 1-5.

The perception of Americans by many Arabs is that we are arrogant and have the answers to everything.  They believe that Americans do not respect their culture or their customs and that Americans try to impose their way on everyone else (Moran, Abramson, & Moran, 2014).  This is not an uncommon sentiment as many believed that the arrogance stemmed from the refusal to even consider other’s cultures (Peshwaria, 2012).  This has and will continue to cause issues with international business in the Middle East and other Islamic countries.  It is important for American businesses to understand other cultures and to develop a global mindset.  To do so requires educating themselves and their employees which can be expensive and time consuming.  One program in the U.S. is helping with this education through the development of a student exchange program that can help Americans understand other cultures with a focus on Muslims.

Moran, Abramson, and Moran (2014) offer the example of an MBA student who was a female Muslim MBA candidate who questioned her desire to go into business because of the focus on self-interests in successful economic endeavors.  These go against the Islamic rules for doing business that focuses on the welfare of all those involved in the transactions.  Her original desire may have stemmed from the sheer opportunities that exist for economic growth in the Middle East.  When fears of economic decline surfaced as a result of the gulf war, they were quickly squelched with economic success and growth.  Some companies export revenues jumped thirty percent and the All-Arab Index jumped fifty percent in 2003 (Donboli & Kashefi, 2005).

Eager to take advantage of this boom, the Middle East has seen an influx of many foreigners including Americans.  The Bush Administration began opening up free trade talks with countries other than Israel and Jordan with the hopes of getting other countries to join the World Trade Organization (WTO).  It is the hope of many that building up the economy and welfare of the Middle East, that peace will prevail (Donboli & Kashefi, 2005).  Another step the U.S. took was to target general Americans and the American youth population with the hopes that they will be more culturally aware and less afraid of Muslims. After 911, the U.S. was weary, and rightfully so, that American Muslims would be attacked.  In an effort to educate both Muslims and Americans on the cultural differences, congress established the Kennedy-Lugar Youth Exchange and Study (YES) program in October, 2002 with the goal of introducing American youth and their families to individual students from predominately Muslim countries (YES, n.d.).

There are currently thirty-nine countries participating in the program.  I personally have had the pleasure of hosting two students on two different years.  One from Macedonia which is formally known as the Former Yugoslavian Republic of Macedonia (FYROM) and one from Morocco.  I have spent quite a bit of time with others from Philippines, Kazakhstan, and Albania. Our friends and family quickly learned within group differences which are more personality differences and between group differences which are more culturally defined (PSU WC L1, 2017).  The differences within was the eye-opening discovery that not all Muslims practice the same rituals or customs.  Some of them were stricter in their practice and others more relaxed.  Some came from a more village-type environment where multiple generations of the family unit lived together or within close proximity to those raised in their capital cities.

In all cases, without exception, they were all warm, engaging, welcoming, open, and humorous.  It was relief to know that not only were they willing to discuss the issues surrounding Islam and terrorism, but were able to joke about it as well.  I can vouch that the NSA is not listening to phone calls or reading texts.  If they were, I would have had many knocks on my door.  Our first student that we had back in 2011 is now married with a child and is a marketing representative in their home country.  They have mentioned many times that their year in America has enabled them to bridge gaps even between local companies with whom they do business.  Our second student who was here for 2012-2013 is now at University studying international business and wants to move to the U.S. to help other companies do business in their home country.  I have included their pictures below.  Alejna is the girl on the right in the first picture, Yasser is in the second picture.  My children have both gained from these experiences as well and helped my son overcome his fears of travel and interacting with different cultures.  The last picture is my son at the top of Mount Vesuvius with Naples behind him.

Technology is helping to shrink our world and helping us see beyond ourselves and experience other cultures.  American businesses who wish to trade or set up a facility in the Middle East can learn about the traditions and customs of this region and become very successful.  Understanding the informal is the easiest part as I have shown with the exchange students.  However, things become very formal with business negotiations and they take time.  Most countries in the Middle East want to develop trust through building a relationship over time (Moran, Abramson, & Moran, 2014).  Patience is an acquired skill but necessary for corporations to hone and develop.

 

          

 

References

Donboli, J. H. & Kashefi, F. (2005). Doing business in the Middle East: A primer for U.S. companies. Cornell International Law Journal, 38(2), 414-458. Retrieved from http://scholarship.law.cornell.edu/cgi/viewcontent.cgi?article=1643&context=cilj

Introduction to Leadership in a Global Context. (n.d.). Differences within groups versus differences between groups – OLEAD 410 Lesson 1. . Online Course Lesson. Penn State University World Campus.  The Pennsylvania State University. Retrieved from https://psu.instructure.com/courses/1826457/modules/items/21654073

Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing cultural differences. New York, NY: Routledge.

Peshwaria, R. (2012, July 31). The arrogance of growth. Forbes Magazine. Retrieved from https://www.forbes.com/sites/rajeevpeshawaria/2012/07/31/the-arrogance-of-growth/#352177272eb7

Youth Exchange and Study (n.d.). About us. Retrieved from http://www.yesprograms.org/about/about-us

 

“Saudi Arabia is traditionally a Muslim country with Islamic law guiding it”(psu.edu, 2017). Women of Saudi Arabia for thousands of years were not allowed to vote or hold the same political standings as men. The late King of Abdallah of Saudi Arabia granted women the right to vote and run for public office in 2011. The decision to allow women to vote broke with tradition and sent a profound message to the people of Saudi Arabia. In December of 2015 Saudi Arabia women voted in municipal elections marking the first time they have been allowed to cast ballots in the conservative nation (Pearson, 2015).

Although women were allowed to vote the conservative traditions of Saudi Arabia were still displayed during the voting process. “Female candidates also were barred from speaking to male voters and required to segregate campaign offices, the organization said” (Pearson, 2015). I believe it is hard to break away from any tradition because it is something that has been practiced for a lengthy amount of time. The separation of male voters from women voters during the 2015 election was minor considering the historical moment that was taking place, allowing women to vote. Change is inevitable and has been happening in Saudi Arabia for the past few years; the country has been breaking away from traditions opening the door for change and equality amongst women in the male dominate kingdom (Pearson, 2015).

It is easy to past judgment on another countries traditions, religious values and laws but it is not wise to do so. It takes a well-rounded person to view the topic of religion and traditions open-mindedly without judgment. Women within the US once were not allowed to vote like women in Saudi Arabia but like the women of Saudi Arabia, American women fought publically and silently for the same equal rights as men. In 2015 it was recorded that women in America “made only 80 cents for every dollar earned by men, a gender wage gap of 20 percent” (iwpr.org, 2015). Women all around the world no matter religion or nationality still face some form of inequality in comparison to men. I raise the question are women in America all that different from women of Saudi Arabia and other countries? If so how, what are the similarities and differences?

Reference:

Pay Equity & Discrimination. (n.d.). Retrieved February 23, 2017, from https://iwpr.org/issue/employment-education-economic-change/pay-equity-discrimination/

Pearson, M. (2015, December 12). Women in Saudi Arabia vote for the first time. Retrieved February 23, 2017, from http://www.cnn.com/2015/12/12/world/saudia-arabia-women-vote/index.html

Pennsylvania State University, World Wide Campus. (2017) OLEAD 410. Lesson 7: The Middle East focus on Saudi Arabia. Pg. 1-5.

 

 

 

 

John Wooden. Hopefully you recognize the name and instantly associate the term synergy, along with other terms such as; leadership, teamwork and winning.

For those less familiar or if you need a reminder; John Wooden was (and/or is) arguably the greatest college basketball coach of all time who led the UCLA Bruins to unsurpassed success during his tenure. Here are some key statistics; “Beginning in the 1966-67 season, the Bruins embarked on the most dominant run in college basketball history. They won seven straight championships, gaining three undefeated seasons along the way. UCLA’s record 88-game winning streak and string of championships ended in 1974, but the team rebounded the following year to give Wooden one more title before his retirement. “The Wizard of Westwood” ended his 29-year college head coaching career with a 664-162 record and an amazing .804 winning percentage, as well a record 10 national championships” (Biography.com, 2016).

What does this have to do with Synergy? In order to win at this pace for an extended period of time requires great synergy. Merriam-Webster defines ‘team’ as “a number of persons associated together in work or activity” (Merriam-Webster, 2017) and the UCLA Bruins were indeed a number of persons focused in their activity which resulted in unparalleled winning for two decades.

Regardless if its basketball or business a few key elements must be put in place to create synergy:

• A leader of a team needs to be identified. Enter Wooden, 1948.
• A philosophy and objectives have to be established (see Wooden’s Pyramid for Success).
• A leader must recruit the right players to be on the team
• Plan, execute, review. Plan, execute, review…

This is obviously a great success story and there are numerous reasons why a global organization might want to replicate Wooden’s approach to creating synergy. Based on my own experience; achieving a state of “high-performance” on a team where collectively the members have a greater level of commitment to the organization, to each other and to the tasks of the team (Moran, Abramson, Moran, 2014) is both difficult and elusive.

If Synergy; “implies a belief that we can learn from others and others can learn from us” (Moran, Abramson, Moran, 2014), then building an environment of teamwork, learning and cooperation is essential and a leader’s skill at facilitating the process for forming, storming, norming and performing (Moran, Abramson, Moran, 2014, exhibit 9.2) is arguably the most important factor. “Synergy also comes from the Greek word meaning working together” (Moran, Abramson, Moran, 2014). Put these elements; leadership, learning environment and teamwork together and you likely have the recipe for success, much like Wooden did.

Three key teachings from Wooden that could benefit most multinational teams in attaining synergy are;

“Have utmost concern for what’s right rather than who’s right”

“The star of the team is the team, ‘we’ supersedes ‘me’”

“Perform at your best when your best is required. Your best is required each day”.

Now, as a quick reality check; most MNE’s would never have the patience to wait as long as UCLA did for the success to come. Wooden’s success came back in the 1960’s and 70’s at a time where more patience was exercised, not only in college sports but also in business. Today, there is much more intensity for immediate results that organizations won’t wait for more than 3 to 4 years at the most if a team is not delivering significant results before changing course. It’s the same today for basketball coaches as well. The average tenure for a division I men’s basketball coach…3 years.

The irony; coaches with the most championships over the last 50 years had been with their respective team for over a decade suggesting patience and persistence builds synergy and wins in any market.

 

Biography.com Editors, 2016, John Wooden Biography, A&E Television Networks, http://www.biography.com/people/john-wooden-21369183

Bronars, S. 2012, Bronars Economics, Impatient Lakers and Patient Spurs, https://sbronars.wordpress.com/tag/tenure-of-head-coaches/

Merriam-Webster Incorporated, 2017

Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing cultural differences. London: Routledge.

Wooden’s Pyramid of Success Wooden, J. & Jamison, S. (2005). Wooden on leadership. McGraw-Hill