The Cultural Challenges of Doing Business Overseas
The fall of the Soviet Union in 1989 and the Velvet Revolution ended Czechoslovakia turbulent political history, and establishing democracy. The Czech Republic is embracing the western style models of political and economic reform. In addition the Czech Republic made an agreement and is now a member of the European Union. This will increase their potential for expanding markets and creating an ideal environment for foreign trade and business investment opportunities (kwintessential, 2008).
Cultural Differences
There are major differences and incompatibilities between the United States and Czech cultures that can create issues. The major difference in Czech culture is that the family is the center of the social structure and the obligation to the family is one’s first priority. The Czech people are polite and reserved until a personal relationship is built. Some of their concepts include a logical, practical and efficient way of forward thinking to provide a sense of security through careful planning, in both business and personal life (commuicaid, 2007). The etiquettes and customs of Czech should be learned, because it is different compared to the United States etiquettes such as meeting and greeting, giving and accepting gifts and dining etiquette. In Czechoslovakia initial greetings are formal and reserved; most greetings include a firm handshake and eye contact. Also an invitation must be given in order to use one’s first name or an informal greeting which shows a sign of friendship (kwintessential, 2008).
The culture or customs of Czech Republic is carried into the business aspect of life. The protocol of business etiquette in Czech Republic is similar to their soci...
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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.
"Rick Steves? Europe: Prague and the Czech Republic." Classroom Video On Demand. Films Media Group, 2002. Web. 28 May 2014.
In the fall of 1989, people all around the world were watching unbelievable scenes on their televisions. Thousands of people in eastern Europe were meeting in the streets and squares and demanding the end of the communist rule. For the first time in history, opposition to communism was publicly voiced. Barbed wire border fences in Hungary are being torn down. East Germans fleeing to the West.
Communism was a strong standing form of government in Bosnia, lasting for almost 50 years. However, the fall of communism was shorter, spanning 3 years, from1989 to 1992. The fall began with the end of the long lasting Cold War, along with the deconstruction of the physical barrier that was a sign of separation - the Berlin Wall. Tearing down the walls of communism in countries around them led to the break up and the collapse of Y...
G. And N. Swain, Eastern Europe since 1945 (Basingstoke, 1998). 3. D. H. Aldroft and S. Morewood, Economic change in Eastern Europe since 1918 (Aldershot, 1995). 4. M. Kaser and E.A. Radice, (eds.)
Comparing the events in Hungary in 1956 and Czechoslovakia in 1968. Both of these events covered the same basic outline: a revolt, reforms. in the country and the USSR’s reaction to these modifications. However, In both cases, the situation differed with many similarities and difference. The sand is Both events started with the same cause, dissatisfaction with Communism and the restrictions that come with it.
In the 1968 invasion of Czechoslovakia, the Soviet Union was not truly threatened by the reform movement. The USSR was just not prepared to take risks with a country bordering on the West. Their main concerns were their sphere of influence as well as Czechoslovakia being one of their satellite states that provided them with a buffer zone against an attack from NATO. Therefore, Czechoslovakia played an important role for political, economic, and strategic military reasons. It was imperative that it remained under Soviet influence because if not, the balance of power would be in favour of the U.S.
Etiquette is defined by the society cohesively as the standard behavior of human interaction and the code of conduct to establish a respectful and courteous environment. As social media and text abbreviations have become normalized in the 21st century, the emergence of informality has alerted the assistant professor Molly Worthern and professor Lisa Wade. In the article, “U Can’t Talk to Ur Professor Like This,” Worthern highlights the prevalence of informality in the interaction between the students and professor. She urges the need of putting etiquette guidelines in the syllabus allowing students to follow the rules. Meanwhile, in the article “10 Things Every College Professor Hates”, Wade highlights college professors’ ten complaints toward
The rest of the book is spent discussing each of the countries in detail. For each country the authors give a brief explanation of the history of the culture. Then they give tips on what each country expects from a visiting businessman. This includes tips on whether or not it is okay to be late for meetings, proper behavior during a business lunch or dinner, and how to properly address people you come in contact with during your business trip. They also give a guide t...
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.
The Capitalism versus Communism showdown that occurred during the Cold War has left profound effects on Europe today. In 2014 The fourteen poorest countries in Europe, by GDP per capita, hailed in Eastern Europe (World Economic Outlook). Nearly all of those countries subscribed to a Communist philosophy during the Cold War. Furthermore, Eastern European countries are still suffering the consequences from underdevelopment during and after the Cold War. Consequently, Eastern Europeans are still trying to catch up to their Western brethren. Furthermore, much of the political power within Europe is held by Western Europeans and several Eastern nations have not yet gained admittance into the European Union. Overall the East-West divide during the Cold War is still having systematic consequences on how Europe is shaped today and how it will be shaped moving forward. Another divide in modern Europe is the North-South divide. The recent European debt crisis highlighted the vast economic discrepancies between Northern and Southern European countries. Southern countries like Greece, Cyprus, Portugal, and Spain suffer tremendously from piling debt and Northern European nations have felt burdened by their neighbors to the South. However, if Northern countries do not come to the aid of their fiscally irresponsible brothers than the entire economic system of the Euro
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 ...
The article talks about a female executive who had visited a conservative Muslim country. She had trouble interacting with male business partners as they come from cultures where women do not often engage in high-level trades. The men refused to shake her hand, which made her, feel disrespected and confused. The author suggests that female businesspeople from liberal countries such as those in the West need to learn that every country has its norm pertaining the roles of men and women. Age is also important in cross-cultural businesses where older people are considered wise. Body language and communication style are also different depending on the culture where in some place direct speaking may be regarded as disrespectful or even rude while in others steady eye contact is considered as a means to build trust. The female business person also has to recognize the signals that she is sending to her corporate partners. She should be wary of offending her business partners of all sexes as the female may judge their fellow women more harshly than how a man would. The woman also has to determine if the signals that she is receiving are cultural norms or sexism. Therefore, the important factors in intercultural businesses are learning the culture of the other person in advance to know how to
Before the outbreak of World War I, Slovakia was part of the Austro-Hungarian Empire and declared its independence in October 1918, joining the Czech provinces of Bohemia, Moravia, and Silesia to form the Republic of Czechoslovakia. Czechoslovakia in the interwar period was the only functioning parliamentary democracy in eastern Europe. Even though it was the only functioning parliamentary democracy, the Czechs and Slovaks had issues that divided them from one another. In the Czech lands, they were more populated and industrialized than Slovakia’s. The Slovak population was also poorer, less educated, and extremely Catholic. The Prague government (Prague is the capital of Czechoslovakia; and why the government is called the Prague government) “attempted to address these economic inequalities by industrializing Slovakia in the 1920s but these efforts were cut short by the Great Depression (Merriman, Winter 2358). The result from the attempted fixes was the Slovaks grew resentful in the 1930s and a separatist movement began, which was led by Father Andrej Hlinka and Jozef Tiso.
“Red is a positive color in Denmark, but represents witchcraft and death in many African countries,” (Understand and heed, 1991, p.1). Simple understandings, such as this one, can make the difference in a business’ success or failure in a foreign country. Various countries have different customs and beliefs that need to be accustomed to when business are to be successful. American businesses especially have difficulties with this concept. “At times in the past, Americans have not had a good track record of being sensitive to cultural distinctions,” (Understand and heed, 1991, p.3). Perhaps this is because America is made up of so many different cultures that American people have become so used to easily adjusting to each other’s differences that they forget that other cultures are not as flexible. Today, more American’s are becoming more sensitive to the differences of other cultures. This sensitivity and understanding has come with a price, after a long string of business failures. It is not until a business fails miserably in another country that they see the adjustments that should have been made in order for their success to be a possibility. With an understanding and sensitivity to the customs and beliefs of other cultures, it is possible for successful businesses that have originated in western cultures to also be successful in foreign countries as well.