Cultural Challenges of International Business

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Steve Kafka, a franchise owner for Chicago Style Pizza, is contemplating the options of opening a new franchise into the country of the Czech Republic, the country of his family's origin. Though Steve has made several trips into the Czech Republic, speaks the language and knows many people, he must seriously consider all of the opportunities and potential barriers to this new venture. I will explore the cultural differences between the United States and the Czech Republic. Next, potential competitive advantages are examined along with Hofsteade's Primary Cultural Dimensions to reveal clues to the culture pertaining to the new business. Finally, trade barriers and price income and elasticities are discussed.

Culture Differences

There are several differences in culture between the United States and the Czech Republic, though those differences are not unconquerable Steve will have to understand some basic principles of business etiquette that are considered acceptable in the Czech Republic in order to be prosperous. For a business, word of mouth advertising is the best way to gain new customers. If a major advertising blitz is attempted, it may be considered suspicious and might backfire if not coupled with local store marketing(Czech Republic: Travel information, 2008). As contacts with other local businesses are needed to make the new franchise successful, such as produce and drinks, appointments with those businesses should be made weeks in advance. The Czech's prefer not to have last minute engagements. Many marketing techniques should be implemented in person instead of by mail which is impersonal. Mailing could be considered rude and could be perceived as a scam. As an employer, it should be understood that mother...

... middle of paper ...

...w.geert-hofstede.com/hofstede_czech_republic.shtml

Czech Republic: Country profile. (2008). Retrieved 2008, from Country Insight database

Czech Republic: Travel information. (2008). BuyUSA.com. Retrieved 2008 f rom http://www.buyusa.gov/czechrepublic/en/46.html

GDP. (2008). Bureau of Economic Analysis. Retrieved 2008 from http://www.bea.gov/national/xls/gdpchg.xls

Historical Crude Oil Prices. (2007). InflationData.com. Retrieved 2008from http://inflationdata.com/inflation/Inflation_Rate/Historical_Oil_Prices_Table.asp

Hofman, I. (2008). Fast food market in the Czech Republic. Retrieved 2008 from http://www.buyusa.gov/czechrepublic/en/90.html

Kay, N. (2008). Foreign direct investment in the Czech. ECFIN Country Focus , 4 (2), 3.

Publications: Fact Books. (2008). Defense Energy Support Center. Retrieved 2008 from http://www.desc.dla.mil/DCM/DCMPage.asp?PageID=721

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