The Cultural Challenges Of Doing Business Overseas

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Introduction

There are many challenges to doing business in the U.S. and there are additional challenges that occur when the decision is made to do business in a foreign country. In this paper I will discuss the challenges Steve Kafka will face as he opens his business in the Czech Republic. Per the information given to me in the assignments, Steve Kafka is an American of Czech origin and he a franchisor for Chicago Style Pizza. He has decided to expand his business into the Czech Republic, knowing this is a risky decision. When he first became a franchisor, he had to overcome many difficulties and he expects he will face some of these difficulties again as he opens up his business in the new location in Prague, Czech Republic. Steve was born in the United States and has family and friends in the Czech Republic. Although, he speaks Czech fluently and has visited the country several times, he believes he knows the people and the culture. This paper will examine some of the challenges he may face, the risks that may be involved and factors Steve may want to evaluate as he takes on this new and exciting opportunity.

Discussion

A: Are there major differences and incompatibilities between the U.S .and Czech cultures?

Overall, the Czech culture is remarkably similar to the U.S. culture. Following the breakup of Czechoslovakia, the Czech Republic is one of the most stable and prosperous countries and has one of the most developed and industrialized economies (www.countrywatch.com.) Czech people generally have upper middle income and are well educated. There are many minor cultural differences between the U.S. and Czech people. In regard to eating, Czechs rarely dine out and when they do meals are served a la carte; empty glasses are quickly refilled, and the customers do not pour their own drinks, beer is commonly consumed with meals (CultureGrams, 2007.)

Dating is usually done in groups and usually consists of movies, dancing or outdoor activities. This is in contrast with the U.S. culture where families dine out often, many accoutrements are served with the meal (i.e. salad and bread) and restaurants offer pitchers of beverages that the customers pour themselves. Typical dates in the U.S. include dinner, or some other meal, at a restaurant followed by a movie or dancing.

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