Saudi Arabia Case Study
1. What are some current issues facing Saudi Arabia? What is the climate for doing business in Saudi Arabia today? Saudi Arabia has been accused over time that they have and are financing terrorists activities; thus has made them the focus on the global war on terrorism. From reading this case study I would say the climate of doing business with individuals in Saudi Arabia are that they might not be as trustworthy as others may be, seem to say things that aren’t true just to gain the things that they want how they want it; or that they are okay with being paid off to give certain companies contracts.
2. Is it legal for Auger’s firm to make a payment of $100,000 to help ensure this contract? I would think that Auger giving payment of $100,000 dollars to help ensure this contract is not legal business wise. That is not fair to other companies when others use money to win contracts; Auger should not put $100,000 into the pool to help secure the contract because the Minister already wants to give them the contract just simply based off of how they conduct their business.
3. Do you think other firms are making these payments, or is Auger’s firm being singled out? What conclusion can you draw from your answer? I believe that maybe they have gone to the other companies and asked for money to be put in the pool if they wanted the contract. I can conclude that Saudi Arabia is not just looking for a great company but a company that is willing to spend in order to gain business.
4. What would you recommend that Skyblue do? I recommend Skyblue to continue to keep their great business ethics and when the contract by simply just being them, the first reason why the Minister of Saudi Arabia picked them in the first place. Even though it is a competition, you ultimately do not want to win just because you made a payout. Once you win that contract you might have the other companies get revengeful and blow the whistle on the poor business ethic choices.