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Global Business & Cultural Anlalysis of Uae

Essay by   •  March 24, 2013  •  Research Paper  •  4,638 Words (19 Pages)  •  1,742 Views

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1.0. Introduction

Culture is so pervasive, yet complex that it is difficult to define in short simple term. Culture may be described as a shared mental indoctrination held by people in the world. These imply that each person believe are intended for his or her own way of life (Warner, 1997). On the other hand, culture is labeled as discerning synthetic approach of reacting to know-how, thus a lay down of behavioral model which entail that culture influences individuals' motives or attitudes toward a product and intent to make use of it. For that reason, culture cannot be perceived to be a mere view of individual's activities, but extends to encompass the entire behavior of particular community and way of life. Sometimes, a very person is subject to his or her own culture, that is, the way he or she lives and perceive things to be. Organizations have cultures related to, but distinct from, the broader society in which they are embedded. Components of culture consist of beliefs, values, norms, symbols, practices, and physical artifacts (Howard 2011).

In present times, the United Arab Emirates (UAE) has quickly developed into a dynamic economic hub with the influx of overseas ideas, technologies and practices. The success and development of any organization is determined by the management systems that are used in operation. Presently, UAE is a leading player in oil and gas production, with a stable economy and reputable political system. The UAE is unquestionably, a nation with several markets for its business related activities, both regionally and in the world. It's imaginable for a young country like UAE, situated in barren desert and scorching summer to have high figures in terms of GDP and income. The country's GDP is likely to touch $ 139.4 billion next year with a yearly capital income of $ 29,000 with sizeable annual trade surplus. This has been attributed to project success of oil and gas and sound economic policies. Though, a late beginner in the oil export ventures, the country's present fame seems obvious when considering the latest estimates, that it possesses 97.8 billion barrels of oil, which equals to nine percent of the world's projected total.

The proper management and success of business projects has transformed the UAE economy drastically which at the moment is at par with leading Western European nations. It's the key member of World Trade Organization (WTO), and also turned out to be the major business partner of several nations around the world, both stable and unstable. If indeed the change in UAE's economy is rapid, since its start two decades, then the development of economy in the last decade should be termed supersonic. Presently, the country positioned number 24 among top world exporters of oil and gas, besides other businesses, above countries like Australia and India.

2.0. The major elements and dimensions of culture in the region

The cultures of organizations, while distinct, generally had their origins in the societies in which they operate. Such ties can be seen in the beliefs of its members, as well as in the values, norms, symbols, practices and icons of the organization itself. Needless to say, the culture espoused by a state heavily influences the behavior of its members.

According Hawkins (2003) any multinational corporation that is consumer-oriented is said to be cultural bound. In the current world, the revolution of the international structure is likely to be bigger, hence will need the assimilation of different cultural and political traditions. In this case, the highly populated Asia will seek to play even a greater role. Like Germany and Japan, the increasing powers are nationalistic, hence seeks to address the past grievances as well as claiming their place in their global world of business. Although all cultures exist for the gratisification of groups of people, they reveal a tremendous spectrum of diversity in what is a society expects of its members. The existence of variations in needs and business opportunities, it follows that an understanding of a people's culture is important to both marketing scholars and practitioners alike. There is need to understand culture since it provides approved specific goal objectives for any generalized human want. Every form of culture is branded in term of communication (language), religion, ethics, values and attitudes, manners, customs, social structures and organization.

2.1. Social Structures and Organizations

Business associations are like other organizations whose members have shared beliefs, values, and formal and informal norms, and mechanisms for monitoring member behavior, sanctioning non-compliance, and rewarding compliance with norms (Elango et al 2010; Johnson 2004). Similarly, business associations as organizations each possess a culture that, we posit, influences member business social performance through isomorphic processes characteristic of relationships among organizations in organizational fields (Navran 2002; TarĂ­ 2011).

In essence, any business draws its sustenance from the society in the form of inputs (Lewis 2002). So there has to be a socially responsible behavior which would help to maintain this relationship. The business decisions which the company took had a direct impact on the society, where it operates (TarĂ­ 2011). In concise, the business in UAE must fulfill the social obligations as a compensation for undermining the legitimate interests of the society (Woolard, 1989). The Company grows and so does its power. As its power grows, the responsibility it has for the society also increases. The social responsibility legitimizes and promotes economic objectives of business. When the social life is improved, the business can have good customers, employees and community (Lewis 2002).

2.2. Ethics

Ethics play an important role in developing a business' strategic plan as it serves as the backbone of the firm's principles. The firm's goal is provide services and products, and acquire profit through the business' sales and operations (Kalshoven et al 2011; Ethics Resource Centre 2009). In spite of the business' goal to acquire profit and their return of investment, it is important that the strategies they employ in their operations in UAE region are bound by moral and ethical standards for their stakeholders (Lewis 2002). Such measures are not only applicable to their customers, but also to their employees, the community they operate in, the government, and the media (Johnson 2004; Elango et al 2010). However, common business practice in UAE dictates ethics and corporate social responsibilities to be overlooked due to the firm's drives to increase sales and revenue. The launch of

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