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EXPANSION OF A U.S. COMPANY INTO THE SAUDI ARABIAN MARKET.
  Term Paper ID:30266
Essay Subject:
Describes the company's product line of pocket and desktop calendars and organizers.... More...
9 Pages / 2025 Words
6 sources, 6 Citations, APA Format
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Paper Abstract:
Describes the company's product line of pocket and desktop calendars and organizers. Problem inherent in the calendar that would prohibit successful entry and how the problem could be overcome. Differences between the Islamic and Julian calendars. Complex rules and regulations of the Sharia. Brief analysis of doing business in Saudi Arabia. 1 Table.

Paper Introduction:
I. Executive Summary This analysis details how Jot-It, Inc. is an El Monte-based manufacturer of pocket and desktop calendars and organizers that is competing in the United States with Day Runner, Time Minder, and other similar products has a distinct market niche in the Saudi Arabian market, one which involves a modification of the printed templates which are the basis of the company’s extensive product line. This report focuses on the one element of the Jot-It line that would prohibit successful entry -- the differences between the Islamic and the Julian calendars -- and shows the way that this problem can be overcome, thereby assuring good market entry. Information on a translation company which has also provided the lowest bid for the conversion work is included in the problem analysis.

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Here is ourconsideration of that market. used in the 1379 date above, is anabbreviation of the Arabic word "Anno Hegirae" for "Separate" or "Go Away"as Muhammed did. We are in the process of considering further manufacturing andmarketing efforts in Europe, in Malaysia, and exporting our products intothe Middle East. General economic conditions; . |October |1-31 |Shawwal |April 11-May || | | | |1 ||11 |November |1-3 |Dhul-Qudah |May 11-June 12||12 |December |1-31 |Dhul-Hijjah |June 13-July || | | | |15 | To the best of our knowledge, none of our competitors are taking stepsto resolve this situation, and the few organizers that are available inSaudi Arabia are still using the Julian, or Western Calendar. However, theparticular climate of the country poses certain problems for themanufacture of paper products. Shoppers in modern Saudi Arabia have many choices and unlimited goodsto select from. Upper Saddle River NJ: Prentice Hall Government signs landmark deal with Microsoft, (2 , Sept. Barriers for United States Expansion . Supply constraints; and supplier performance. (1997) Modern management: Diversity, quality, ethics, andthe global environment. In Saudi Arabia, and in many other Islamic Countries, the currentyear is 1379 A.H. Lower than anticipated gross profit; . 8||5 |May |1-31 |Jumad Awwal |Nov. H. Jot-It, Inc. Mack, T. Foreign exchange rate fluctuations; . I. is an El Monte-based manufacturer of pocket and desktopcalendars and organizers that is competing in the United States with DayRunner, Time Minder, and other similar products. (1997, April 1) Marketing the "new Middle East,"Commentary, 1 3: 55-59. This means that thedifferences in the two calendars that are listed above are functions ofvarious computer databases. become a Muslim. |July |1-31 |Rajab |Jan. Once thedistributor has the document that verifies that the product is acceptableto the Sharia court, then entry into the marketplace is confirmed (Mack,1997). One alternative which isbeing investigated is the possibility of assembly only in Saudi Arabia,which consists of collating paper sheets, punching them, shrink-wrappingthem and packaging them. In the Western world the current year is 2 1A.D. If it is not in the Koran, it cannot exist.This determination is made by a Sharia counsel, several wise priests orAyatollahs who analyze the proposal and see if it can be found in theKoran. (In 1998, for example, the Sharia finally decided that the conceptknown as the Internet could be found in the Koran, since the signals comeoff of a satellite, and that could be a reference to the Prophet Ezekiel). in our Westerncalendar (the day of Muhammad's flight from Mecca to Medina, two of SaudiArabia's most important cities). |August |1-31 |Shaban |Feb. Requirements for Expansion To survive, it will be essential to expand our marketing effortsoverseas. Founded in1989, the company has grown substantially, primarily by offering a lowercost alternative to the market leaders. Leap years follow a 3 year cycle and occur in years 1, 5, 7, 1 , 13, 16, 18, 21, 24, 26, and 29,days considered to be created by Allah. Higher than anticipated operating expenses; and . Long-established local trading companies offer prestigiousautomobiles, electronics, foodstuffs and the latest industrial and consumerequipment and products. Negative effects on consumer purchases; . || | | | |9 ||4 |April |1-3 |Rabi Thani |Oct. Timing and size of orders from large customers; . Lower than anticipated net income. According to our primary research, however, themarket for personal organizers has been limited in the past for two veryspecific reasons: A) Even though English is widely spoken, all businessmust be conducted in Arabic and all contracts written in the Arabic script;and, B) The Islamic calendar is completely different from most Westerncalendars. Competition, especially for retail shelf space; . Calendar Specifics The Saudi Calendar, as are all Islamic calendars, are purely lunar andconsist of twelve alternating months of 3 and 29 days, with the final 29day month extended to 3 days during leap years. Let us assume that this proposal is accepted by Senior Management hereat Jot-It, and we begin to approach distributors in Saudi Arabia to carryJot-It. So Jot-It's 2 1 Calendar would actually be a calendar for 1379, andinstead of our day names such as Sunday, Monday, and so on, the days arenumbered, beginning with "Day the first" (our Sunday" and ending with "Daythe Seventh" (our Saturday). Diminishing consumer demand; . || | | | |12 ||8. 14), TheStar: Jordan, Middle East, 1http://www.ask-group.com/publish/askgroup.htm Kanovsky, E. (1997) Joining Forces. Recommendations All of Jot-It's print templates that are the basis for our productline are, as you know, completely computerized. Thequote also includes camera-ready film, eliminating the short-term need forpurchasing Arabic fonts. Printing plants, for instance, have to behighly air-conditioned to make sure that the ink cures correctly, aconsideration that adds greatly to the cost. || | | | |14 ||7. 15- Sept.|| | | | |9 ||3 |March |1-31 |Rabi Awwal |Sept. Regarding the months, they can best beexplained by the table below:|Month |Western Name |Western Time |Islamic Name |Islamic Period|| | |Period | | ||1 |January |1-31 |Moharram |July 16 || | | | |-August 14 ||2 |February |1-28 |Safar |Aug. |June |1-3 |Jumad Thani |Dec. Days are considered to begin atsunset rather than at dawn. The Importance of Sharia Islam is one of the most powerful and pervasive religions in the worldtoday, and is a complete life style guide based on the 5 Pillars of Wisdom. is an El Monte-basedmanufacturer of pocket and desktop calendars and organizers that iscompeting in the United States with Day Runner, Time Minder, and othersimilar products has a distinct market niche in the Saudi Arabian market,one which involves a modification of the printed templates which are thebasis of the company's extensive product line. The Potential for an Arabic Jot-It We have identified several target markets for our product: * Some 14, key government executives * 132, foreign business people residing in Riyadh, Medina and Mecca * 44, students * Several sizable businesses expanding operations in Saudi Arabia The product benefits for each of these targets are substantially thesame -- a clear, concise, and handy "Western-type" organizer that isexclusively Arabic. It also requires satisfactorydistribution channels and a distribution and marketing infrastructure thatsupports the importation of new personal improvement products. A.H. However, the competition inAmerica from the major players in our industry, combined with the growth ofthe electronic organizers has seriously threatened our long-rangeprospects. 1 -Oct. The health of the retail environment; . Lower than anticipated sales; . This report focuses on the one element of the Jot-It line that wouldprohibit successful entry -- the differences between the Islamic and theJulian calendars -- and shows the way that this problem can be overcome,thereby assuring good market entry. 12-Jan. 9-Dec. 14-Feb. per page, or a total of $52 , . Its best definition isthat it is a document that shows that the business idea falls within theguidelines of Sharia. For something to fall within those guidelines, itmust be found in the Koran. 13-March || | | | |12 ||9. |September |1-3 |Ramadhan |March 13-April|| | | | |1 ||1 . How does this affect us? Timing and size of orders for new products; . This would allow us to provide jobs for studentsand women, and would therefore qualify us for numerous government grantsand tax benefits. Certo, S.C. is the 12thlargest developer and marketer of loose-leaf paper-based organizers for theNorth American and European retail markets. Among the effects of these barriers may be: . This would give aninitial product with which to enter this potentially profitable market. Higher than anticipated product returns and/or excess inventory; . Therefore, the recommendation is that the project of translating keypages of our key product lines into Arabic and converting our calendar,date books, journals, and message pages, all currently structured in theWestern or Julian calendar into the Islamic calendar. is a wholly-owned subsidiary of GFC Industries which isthe primary stockholder in a consortium of Canadian forest and wood pulpmanufacturers. Executive Summary This analysis details how Jot-It, Inc. About Saudi Arabia According to a Markintel research analysis for companies preparing todo business in the Kingdom of Saudi Arabia, the nation has a thrivingcommercial sector, with private companies active in the import of consumerproducts as well as the export of Saudi Arabian manufactured goods(Anderson, 1987; Kanovsky, 1997). ("English" wasfound to be possible in the Koran in the 18th Century). Problem Analysis About the Company Jot-It, Inc. The business model for Jot-It includes selling a wide variety ofpersonal organizers in leather and simulated leather covers, and retainingcustomers with a complete set of replaceable paper inserts. When the difference in import feesfor plain stock versus finished items was combined with the excess energycosts of air conditioning for the printing plants, the labor savings ofmanufacturing in Saudi Arabia slowly disappear. 1 ||6. This might seem to be merely a cultural oddity, and in fact, for somebusinesses wishing to do business in Saudi Arabia, the practice is just toaccept the fact that any given day has two historic referents. Since this is true, then it would be possibleand feasible to create a conversion program that could make the switches intemplates, giving us the ability to make an Islamic-friendly calendar. Though this price is considerably higher than ourstandard make-ready, the market potential could be sizable. Such an activity wouldseriously impact our already slim margins, and necessitate charging ahigher price for our products. However, ina business such as Jot-It, whose primary business is selling calendars (allan organizer really is), the fact becomes crucial, so crucial that unless asolution is reached, the business cannot profitably expand to the Kingdom. Several pages of the report detail how our planned entry into theSaudi Arabian market must be strategized within the complex rules andregulations of Sharia add valuable strategic information and insight as tohow such a penetration could be accomplished. Some consideration was given initially on manufacturing the Jot-Itsin Saudi Arabia, using local labor, which is plentiful. (1997, June 2), Watch out, Riyadh, Forbes Magazine, 1 .References Mostafa. 1 -Nov. And the importing of our card stock (the Jot-Its are printed on 18 pound Boise gloss which is one of the primary products of our parentcompany) is expensive, since it is subject to a 23 percent import duty. Information on a translation companywhich has also provided the lowest bid for the conversion work is includedin the problem analysis. Research,as shown in the remainder of this document, suggests that Saudi Arabiapossesses some of those elements (Certo, 1997). III. (1987, Oct.), The State in the Middle East and NorthAfrica, Comparative Politics, 1-18. II. Available online at:http://www.arabia.com/BusinessToday/joining.htm The distributor would ask to see our papers, including our "magdallah"which is an odd document to accurately describe. The Jot-It product, as modified, should fit all the elements of Shariajustification, since the product would use the Islamic calendar, theIslamic months, and be typeset in both English and Arabic. The Muslim believes that all things in this world, from business toprivate life, are governed by Allah-made laws, rather than man-made laws.Man possesses the quality of intelligence and choice, thus he is invited tosubmit to the good will of God and obey His law, i.e. Because we will have taken the effort to change thelanguage on our product, this Jot-It conversion will have one sizablemarket advantage that is particularly unique in the Arab world: the Jot-Itwill be completely copasetic to the concept of Sharia ("Government" 2 ). Onthe other hand, if we import the finished product as a printed book, it issubject only to a 4 percent import fee. Such a product line as that offered by Jot-It requires a dynamicmarket that is on an upward growth curve. The Company also develops and markets a number of related organizingproducts, including telephone/address books, business accessories,organizing tools for students, wallboards, laminated wall planners, and theHome Manager(TM) on-the-refrigerator Jot-It, Inc. The calendar begins on Friday, July 16th, 622 C.E. References Anderson, L. Because of the scarcity of trees in the desert, it wouldbe necessary to import all raw paper stock into that region, and then toprint and bind the materials there (Mostafa, 1997). Allof these "laws" are written in the Koran, and the Sharia is a method ofinterpreting these laws. How different? We have contacted the world's leading business translation company,the AskGroup, located in Lucerne, for a bid on converting 13 templates(printing plates) that comprise our primary paper insert offerings, and wehave been given a quote of $4 U.S. All of the paper products are manufactured using therecycled materials from the forestry operations.

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