A major challenge of doing business internationally is to adapt effectively to different cultures. Steve Kafka, an American of Czech origin and a franchiser for Chicago Style Pizza has decided to expand his business to Czech Republic. This is a risky decision and Steve anticipates he will face obstacles as he goes about setting up the new pizza outlet at this new location, Prague.
In international management, culture is acquired knowledge that peoples use to interpret experiences and generate social behavior. This knowledge forms values, creates attitudes and influences behavior. Because different cultures exist in the world an understanding of the impact of culture on behavior is critical in the international management. There are many way of examining culture differences and their impact on international management. Culture can affect technology transfer, managerial attitude, managerial ideology and even business-government relations. Cultural affects a host of business-related activities, even the including the common handshake. For example, in the United States, the standard greeting is a smile, often accompanied by a nod, wave and it may sometimes include verbal greeting. In business situations, a firm handshake is used. Feeble handshakes are viewed as negatively as weakness. Men usually wait for women to offer their hand before shaking. As in the Czech Republic, shake hands, firmly but briefly, with everyone (including children) when introduced. It is also customary to shake hands once again upon departure. Men should wait to see if women extend their hands in inter-gender meetings. Also, avoid keeping the left hand in one's pocket while shaking hands with the right. In the Czech Republic, politics and other complicated ...
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...hough the average salary is estimated at $748.00 per month; the study reveals that the purchasing power of local customers is increasing. The purchasing behavior of a typical household is presented below:
Czech household spending in 2004
FOOD RESTAURANT
HOTELS LEISURE TRANSPORT AND
COMMUNICATION HOUSEHOLD
EQUIPMENT RENT/
ENERGY CLOTHING
24% 5% 11% 15% 7% 20% 6%
OTHERS: 12%
References
Cohen, B. (2001). Strategic franchising. Kellogg School of Management: Course catalog
Czech Franchise Association. (2004a). Franchising in the Czech Republic 2003. Prague: Author
Hodgetts, Richard, Luthans, Fred (2005). International Management: Culture, Strategy and
Behavior. 6th Edition
www.itim.com
www.countrywatch.com.ezproxy.apollolibrary.com
www.hertigae.org
www.economist.com
online.culturegrams.caom.ezproxy.apollolibrary.com
Business in US and The Czech Republic The purpose of this document is to present solutions and recommendations for Steve Kafka, an American of Czech origin and a franchisor for Chicago Style Pizza, who has decided to expand his business into the Czech Republic. This document focuses on the major differences and incompatibilities between the U.S. and Czech cultures. The script also shed lights on the business risks and mitigation on Czech culture. The paper also talks about the comparative advantages that exist in the Czech Republic and Hofstedes four primary dimensions for Steve to evaluate the Czech business environment.
The company now intends to enter the pizza market and Stephen Cunliffe, the president of NRFC has to take decision on whether to launch the pizza in the U.S market or not
Geert Hofstede’s research in this area has been largely accepted as the standard for understanding culture within nations for study in many different disciplines including sociology and management research, among others. His studies because of their vastness in scale, gathering data from more than ”60,000 respondents in seventy different countries,” makes his research extremely reliable and foundational to research in this area (Hofstede, 1984, 1991, 2001).”
The essay will describe the concept of organizational culture and national culture. In the course of trying to describe both types of culture; subcultures and socialization examples will be discussed. A few real world examples will be mentioned in an attempt to further explain the topics in the essay. There are many similarities to how organizations and nations are structured and shaped by culture. The concept of cross-cultured management and multinational corporations are also a concept that organizations use to explain the behavior of their culture. Finally the essay will discuss how organizational and national cultures are interrelated. The interrelationship can be explained in the cultural dimensions and how the influence behavior and management.
The book Kiss, Bow, or Shake Hands, is written specifically with those doing international business in mind. It is essentially a guide to over sixty countries and an explanation of their society and cultural customs. Knowledge of those with whom you are doing business not only can help avoid costly blunders it can also give you an advantage when dealing with them.
American’s introduce themselves right away when meeting a new person. That is usually the socially acceptable occurrence that happens. In business, “A firm handshake and friendly smile are appropriate in a corporate setting, regardless of the other person’s gender, age, or seniority in the company.” (6). We usually have small talk, and are expected to give positive answers and be appropriate in this
In the article, Cultural constraints in management theories, Geert Hofstede examines business management around the globe from a cultural perspective. He explains how he believes there are no universal practices when it comes to management and offers examples from the US, Germany, France, Japan, Holland, China and Russia. He demonstrates how business management theories and practices are very much subject to cultural norms and values and by understanding these differences, it can give managers an advantage in global business practices.
Steve Kafka, an American of Czech origin and a franchisor for Chicago Style Pizza, has decided to expand his business into the Czech Republic. He knows it is a risky decision; when he became a franchisor, he had to overcome a lot of difficulties. Steve anticipates he will face some of these difficulties again at the new location in Prague, Czech Republic. Although he was born in the United States, he has family and friends in the Czech Republic, speaks Czech fluently, and has visited the country of his origin several times. He knows the people and the culture. In this paper, I will analyze the cross-cultural differences between the United States and Czech Republic, determine comparative advantages in this country, and recommend ways to minimize the risks of establishing a franchise overseas.
Ahlstrom, D., & Bruton, G. D. (2010). International Management: Strategy and Culture in the Emerging
... conclusion, to compete with the intense competition in today’s fast-food market, KFC China differentiates the company by being innovative. Three significant innovative strategies are localizing the menu, understanding the Chinese culture, and hiring local management. KFC demonstrates that one size fits all approach in the global market does not always work. Many typical Western approach to foreign expansion is to deliver the same products or services as their original establishment. For instance, Domino’s Pizza, an American restaurant chain, nearly failed in Australia due to the underestimation of the need to adapt their offerings to the local tastes. KFC China offers important lessons for global firms. It is essential to know that to what extend the company should keep the existing business model in emerging markets and to what extend it should be thrown away.
The purpose of this brief is to present our senior management team with an in-depth guide to the culture and customs of the Japanese people. In today’s business world, the importance of understanding national cultural differences in multinational relationships is key. As we focus on expanding globally, it essential for our company to understand the similarities and differences of other cultures. This cultural brief should provide our senior management team the knowledge to adapt their communication and behavior styles effectively when working with Japanese colleagues.
Some of the business expert also suggested that cross- national differences are diminishing because the advancement of technology, including the day-to day activities of multinational corporations(Flora,Chiang&Birtch,Thomas,2006). This type of view point casts a doubt on how much of influence that national culture of a country wields on the multinational corporations especially in the management practices, and employee attitudes towards reward practices in particular. Geet Hofstede have distinguished national culture with four bi-polar dimensions: masculinity-feminity,individualism-collectivism, uncertainty avoidance, and power distance. Hofstede view that cultural – influence attributes of a nation do exist and these distinctions will provide and organization with further understanding on how work related values and behavior are different between cultures. In the reward- system area, Hofstede give a useful view into how employee needs and reward preferences are likely to be vary in different cultures(Flora,Chiang&Birtch,Thomas,2006). When a culture of a country score high on masculinity-femininity, this suggests there are divisions of roles and values between genders. Its shows that masculinity cultures are emphazing assertiveness, achievement and material success, an interest in acquiring huge sum of money for financial gain and achieving material success are highly desirable. The view is very different in feminine driven culture. In feminine driven culture human relationship are more value. Their culture is center more around concern for others, supporting each other’s and good quality of life. An example are financial and power oriented rewards will be more preferred in Hong Kong, China than in Finland; where relationship -and
Despite being an intimidating prospect for most people, there are millions of entrepreneurs in the US. Some of them turn out to be very successful, others, not so much. There are many steps to starting and running a business, but many of them can be easily accomplished simply by filling out some forms, and several small fees.
For some people, being the boss, and which by boss I mean business owner, would be the greatest thing ever. Most think you get to pick your own hours, make the most money, and make everyone do the things you want done. Of course there is work involved and it takes work to make it but the rewards will be better owning a business that succeeds. The ultimate goal is becoming a millionaire and retiring at the age of forty and just drawing money from business production. However they really don’t understand the work it takes to make it a million dollar company. When these people are finally able to own a business they get a rude awakening. I am in no way trying to offend the typical business owner when I say, owning a business can be a challenging task that can cause many complications in your life and if you’re not careful they can change your life entirely.
Since the motto “Doing Well By Doing Good” appeared, the number of businesses that have adopted it has increased over time. In order to tell whether this increase is substantial and significant we must first analyze the steps into which this motto has gone through. The implications it has on the market and economy as a whole will also be determinants of whether to adopt the motto or not. In the essay below we will go through the evolution of the meaning of the motto, the concept of social responsibility, the supporters’ argument and their cons.