Israel - a Cultural & Economic Analysis

Israel…

A Cultural & Economic

Analysis

Executive Summary- Cultural Aspects

The threat of war always exists when dealing with the Middle East, and particularly in Israel. Israel has hot summers and rainy winters with snow in the mountains. About 90% of the Israeli population live in urban areas and have large families. Marriage is a monogamous relationship and children stay very close with their families after marriage.

The amount of people in secondary education (university) is rapidly increasing. The work days in Israel are Sunday through Thursday, one-half day on Friday, and closed all day Saturday. Israel’s government is a parliamentary democracy with two main political parties. Israel has a widely diverse population that is 8l% Jewish.

English is the commonly used language for business, but Hebrew is the official language of Israel. In the business world the proper greeting is a handshake, and time is viewed very monochronicly. The dress style reflects Western culture, and professionals wear suits.

Most people in Israel live in apartments and the living conditions are constrictive due to the large family size. Israeli’s enjoy various recreational activities in the limited spare time they have. In general, Israeli culture does not differ all that much from our Western culture, although they are a few issues which should be addressed before promoting a product in Israel.

Executive Summary-The Economy

There are a few problems that would affect the marketing and distribution of products in Israel. One of the problems in advertising a product is the fact that television does not allow any advertisements. Another major hurdle is the levies imposed on many imported products thus raising the price structure which makes it hard to be competitive with local products. Almost all imported products are subject to “harama” which is Israel’s way of taxing the product at a higher value. All measurements and weights must conform to Israel’s standards which they impose on all household products.

There are several good reasons why marketing your product in Israel would be a good idea. The population is considerably young with 90% of the population centered in urban area which make them easily accessible. The average monthly income is $l334 in U.S. dollars. The labor force is very skilled, yet it is also fairly inexpensive. Technology in Israel is advanced with a very good infrastructure. The post office and telephone companies are effective and strong which will make direct-marketing a good tool. Israel is quickly expanding and if we would like to do business in Israel on into the 21st century we must plan to adapt to their ever changing economy.

Cultural Analysis

On May 14, 1948, the State of Israel was proclaimed according to the UN partition plan (1947). Less than 24 hours after the proclamation, the armies of Egypt, Jordan, Syria, Lebanon and Iraq invaded Israel, forcing the young country to defend the sovereignty it had regained in its ancestral homeland. In what became known as Israel’s War of Independence, the newly formed, poorly equipped Israeli army held off the invaders in a war that lasted 15 months and claimed over 6,000 Israeli lives.

The UN desperate to reach an agreement resulted in an armistice agreement which finally ended the war. All the invading countries except Iraq received land inside Israel’s sovereignty.

With the war over, Israel focused its attention on the building of the state. The first 120 seat Knesset (parliament) went into session following national elections that took place on January 25, 1949, in which 85% of eligible voters cast their ballots. David-Ben Gurion who was the head of the Jewish Agency became the first prime minister of Israel. On May 11, 1949, Israel took its seat as the 59th member of the U.N.

During Israel’s second decade of existence (1958-68) exports doubled, and the GNP in increased some 10% annually. Manufacturing was taking off with some items such as paper, tires, radios and refrigerators. The most rapid growth took place in the newly established branches of metals, machinery, chemicals and electronics. The agricultural sector began to grow a large variety of crops for the food processing industry as well as fresh produce for export.

Schools, universities, medical centers, and a permanent home for the Knesset were