Cultural Challenges of Doing Business Overseas:
Steve Kafka, franchisor for Chicago Style Pizza
Steve Kafka, a proprietor of Chicago Style Pizza, a U.S.-based franchise, is attempting to capitalize upon his Czech heritage, and knowledge of Czech culture and language to expand into Prague and take advantage of a largely untapped pizza market in the region. However, it is critical that Steve does not forget that, despite his familiarity with Czech culture, he was born in the United States and must orient himself to the unique cultural worldview of the Czech nation
Major differences and incompatibilities between cultures and risk mitigation
Perhaps the most significant difference between the U.S. And Czech business culture is a historical one, namely the legacy of communist rule in the Czech Republic. "All commentators on Czech business culture focus on the difficulty of developing deep levels of trust within any business relationship" (Doing business in Czech Republic, 2010, World Business Culture). Corruption was rife during the Soviet era. Older employees may also be more used to a less focused and intensive approach to the workday, contrary to what is characteristic of private enterprise (Doing business in Czech Republic, 2010, World Business Culture).
One way to mitigate such risks is to focus on placing younger individuals, with some exposure to the U.S. educational system and U.S. businesses in managerial positions. These individuals would be open to Steve's view of business, yet still possess knowledge of local bureaucracy. Selecting Czech nationals to partner with who have entrepreneurial backgrounds also bodes well for success in Steve's business.
Despite these potential personnel selection difficulties, the Czech Republic also has many assets. Of the former Warsaw Pact nations, "the Czech Republic has one of the most developed and industrialized economies," dating back to the 19th century, boasts a highly-educated populace and well-maintained and developed infrastructure (Czech Republic, 2010, U.S. Department of State). "The country's strategic location in Europe, low-cost structure,...
But most important, Geert Hofstede will give you the 'edge of understanding' which translates to more successful results" (Geert Hofstede's Website, 2003). If Steven Kafka conducted an analysis of the Czech market through the lens of cultural features, there is an increased likelihood for the results to indicate major discrepancies. This should not however disappoint him, as different does not implicitly mean worse. A d) in its desire to adhere to
Business in Czech Republic Doing business in a foreign country is never easy. It is not so much about the tax regulations, import/export duties or getting a license. The main challenges accrue from the differences in cultural values and social or religious beliefs. For Steve, it may prove easier to at least communicate with the people and establish a bond with them. It is also important to know that Czech
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