Saudi Arabia Case Study

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Summary

Saudi Arabia is facing global criticism for allegedly financing terrorism, which affects its climate for doing business. The case study suggests that individuals in Saudi Arabia may not be trustworthy and may be willing to accept bribes. Auger’s firm making a payment of $100,000 to secure a contract is not legal business practice. It is unclear if other firms are making these payments, but conclusions can be drawn that Saudi Arabia is looking for a company that is willing to spend money to gain business. Skyblue should continue to maintain their great business ethics and win the contract based on their merit, rather than making a payout. Winning through bribes may lead to future consequences, as other companies may retaliate.

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What is the current business environment in Saudi Arabia? The country is facing scrutiny for its alleged support of terrorism, making it a major target in the global fight against terrorism. This study suggests that conducting business with individuals in Saudi Arabia may be difficult due to concerns regarding their trustworthiness. There is a potential danger of individuals participating in dishonest behavior or accepting bribes to show favoritism towards certain companies during contract assignments.

2. Auger’s firm making a payment of $100,000 to ensure this contract raises legality concerns. It is unfair to other companies that must compete without financial assistance. Auger should refrain from contributing $100,000 to secure the contract as the Minister already favors them based on their business practices.

I believe that other firms may also be making similar payments, not just Auger’s firm. This suggests that Saudi Arabia is not only seeking a great company but also one that is willing to invest money in order to secure business contracts.

4. My recommendation for Skyblue is to maintain their outstanding business ethics and remain true to themselves when bidding on contracts. This is the key reason why the Minister of Saudi Arabia initially chose them. Winning a contract solely based on a bribe or payout is not desirable in the long run. Such a victory may lead other companies to seek revenge and expose unethical business practices.

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