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The five cultural dimensions in hofstede's model
The five cultural dimensions in hofstede's model
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Introduction
Steve Kafka is an American born citizen of Czech origin and a franchisor for Chicago Style Pizza. Steve has decided to open a franchise in the Czech Republic, a place where he has family and friends. Steve has visited the Czech Republic several times and speaks the language very fluently. Even though he has some basic knowledge about the Czech Republic, he still anticipates some difficulties at the new location in Prague. He knows his decision is not without risk but is ready to meet the challenge. Steve will have to conduct a great deal of research in order to succeed. This paper will cover some of the major cultural differences between the United States and Czech Republic and the risks associated with these differences. This paper will also analyze the comparative advantages in the Czech Republic and what if any, Steve can take advantage of. The use of Greet Hofstede’s five dimensional model of cultural dimensions and how they can be used to help Steve to evaluate the environment in the Czech Republic. This paper will conclude with an analysis of the cost structure and demand for Pizza in Prague.
Understanding The Cultural of the Czech Republic
Several differences exist in the cultures of the United States and Czech Republic. Religion in the Czech Republic was influenced by 4 decades of communist atheism and therefore, adherence is sometimes the result of heritage rather than actual belief. (CultureGrams, 2008) In fact, the Czech Republic is the least religious country in Europe. Spending time with the family is one of the highest priorities for the Czechs therefore, Czechs are less likely to be willing to spend time away from their family for increased recognition at work. (The Prague Post...
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Geert Hofstede™ Cultural Dimensions (2008), ITIM International, retrieved January 25, 2008 from http://www.geert-hofstede.com/hofstede_dimensions.php?culture1=95&culture2=22
CultureGrams World Edition (2008) Czech Republic , Retrieved January 25, 2008 from: http://online.culturegrams.com.ezproxy.apollolibrary.com/secure/world/world country_sections.php?contid=5&wmn=Europe&cid=41&cn=Czech_Republic
The official Web Site of the Czech Republic, (2008), retrieved January 25, 2008 from: http://www.czech.cz/en/economy-business-science/investment-counsel/investing-in-the-czech-republic/opportunities-according-to-sectors
Andrea Fennesz-Berka, (2006) Czech Republic and Slovenia offer opportunities for U.S. consumer foods, retrieved January 25, 2008 from: http://findarticles.com/p/articles/mi_m3723/is_n8_v8/ai_19209849
My organization, Trader Joe’s, is not an international business. Their stores are all located in the United States; therefore, I chose Whole Foods, who is a main competitor of Trader Joe’s for this assignment.
Each country has its own culture, with subcultures inside the dominant culture (Schaefer, 2009, p.69). “Culture is the totality of learned, socially transmitted custom, knowledge, material objects, and behavior” (Schaefer, 2009, p.57). Values, artifacts, and ideas are also part of culture (p57). With globalization there is the integration of these cultural aspects, as well as language, social movements, and ideas throughout the world (Schaefer, 2009, p.20). Internationalization helps with this integration. Internationalization is the process of planning and implementing products and services so that they can easily be adapted to specific local languages and cultures (Linfo, 2006). Numerous American retail firms have expanded to other countries. Many have been quite successful due to their internationalization. However, failure to study the culture, retail practices, and consumer market of the country they intend to expand to can be quite costly. Although Home Depot is one of the world’s largest home improvement stores, their expansion to Chile cost them enormous financial loss, resulting in their divestment (Bianchi & Ostale, 2006, section 1, para3). This paper will look at successful international expansion of Home Depot stores, analyze what mistakes were made in Chile, and make suggestions of what could have been done differently.
Krebs-Smith J, SM Krebs-Smith, and H Smiciklas -Wright. Variety in Foods. In Peter F, What Is America Eating? Washington, D.C.: National Academy Press, 1986.
However, entering into a market as different as Japan is not without its risks, and must be ensured to be successful, with the help of market research, marketing, and operational theories, lest the new venture become a very costly mistake. Target Consumer Market When moving to a market with a consumer culture so different from the home market, a company must be careful to analyse its target audience in detail, to avoid costly cultural faux pas. To get a good feel for the Japanese culture, a good place to start would be the experts in the cultural studies field. Hofstede’s cultural dimensions, created during his in-depth GLOBE study of the cultures of the world, gives a good comparison between the priority differences between Japanese and English culture. A detailed analysis of the cultural differences will be given in the ‘Marketing Issues’ section of the report.
“Attention Whole Foods Shoppers” is an essay written by Robert Paarlberg for the May/June 2010 edition of Foreign Policy magazine. Foreign Policy was originally founded in 1970 with the intention of providing views on American foreign policy during the Vietnam war and does more or less of the same today. Paarlberg’s purpose in this essay is to convince an educated western audience that the Green Revolution was not a failure and improved life everywhere it took place, organic food having advantages over non-organic food is a myth, and the solution to food disparity is investing into agriculture modernization. With logos as the main mode of appeal, Paarlberg’s organization effectively sets up his points throughout the essay with consistently
Walsh, Bryan. “America’s Food Crisis.” NEXUS. Eds. Kim and Michael Flachmann. Boston: Pearson, 2012. 166 – 173. Print.
Harvey, Blatt. America’s Food: What You Don’t Know About What You Eat. 1st ed. Cambridge:
Mintz, Steven. "Food in America." Digital History. History Online, 2007. Web. 01 Apr. 2012. .
American citizens economic standing plays a role in the what foods they buy, where they buy, and their accessibility to buy. According to the United States Department of Agriculture an estimated twenty-three and a half million people live in a “food desert”. which is an urban or rural community that has little to no access to fresh food distributors such as a supermarket or farmers market. A lot of times these communities only food options are convenience stores and fast food restaurants, such as McDonalds and 7-Eleven, that...
The authors identify that there are three main factors that effect how people act, think, and make decisions. The first is religion, in some countries faith plays an important role in all areas of life in the culture of the country and can influence many of their customs and behavior. The second factor is that of fact. In many countries their greatest desire is to find the best deal and the best product or services. The final factor is feeling, if a culture is based on feelings the people will conduct business accordingly. For example it would be essential to make a personal connection with this type of individual.
Food is traditionally considered as a simple means of subsistence but has developed to become filled with cultural, psychological, religious, and emotional significance. Consequently, food is currently used as a means of defining shared identities and symbolizes religious and group customs. In the early 17th and 18th centuries, this mere means of subsistence was considered as a class maker but developed to become a symbol of national identity in the 19th centuries. In the United States, food has been influenced by various cultures such as Native American, Latin America, and Asian cultures. Consequently, Americans have constantly Americanized the foods of different cultures to become American foods. The process on how Americans have Americanized different cultures’ foods and reasons for the Americanization is an important topic of discussion.
“Crevecoeur explained the tragedy it would be for two individuals with different religions to start a family and created generations upon generations of confusion”. Each family in early America marrying based on common religious beliefs, and teachings their children in the way of their beliefs, would create a stable home for children to grow in. In today’s Christian church this is a value we hold true to well. Setting genuine religious values and morals are very important in today’s world. Whether you choose to practice that religion or not, the core values that are indebted in you from your childhood follow you into adulthood. Having pure religious principles promotes a balanced and well-functioning home. “Thus religious indifference is imperceptibly disseminated from one end of the continent to the other; which is at present one of the strongest characteristics of the Americans”. With core religious values or even a lack thereof, families will be able to create a solid foundation of morals and values to be built
Some of the major differences and incompatibilities between the United States and Czech cultures are norms, values, beliefs and behavior. These differences will create a business risk for Steve because even though he is of the Czech origin, has friends and family living there, visits several times and speaks the language fluently he does not the full knowledge of how businesses are conducted in Czech. Though he is a franchisor for Chicago Style Pizza, he cannot operate internationally as he does locally because of the differences in value, as it will affect his management functions.
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.
As the world has evolved through technological advancements, immigration, and international affairs, globalization has become a significant and inevitable part of life in the 21st century. According to Manfred Steger, globalization is “a set of social processes that are thought to transform our present social condition into one of globality...[it 's] about shifting forms of human contact”(Steger 8). Perhaps the most influential aspect of this globalization is the spreading and sharing of foods; which is something I’ve been able to see and experience firsthand. From the time of my upbringing in the West Indies during the late 90s to early 2000s and migration to the United States in 2004 to now, globalization