The Cultural Challenges of Doing Business in Czech Republic
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. In other words, he knows the people and the culture. Or does he?
The analysis will study how Steve can study and compare the United States with the Czech Republic as it relates to culture, businesses and price elasticity of pizza. Using Professor Hofstede’s studies, Steve will be able to have a better understanding of these and make smarter business decisions that will make him successful.
Czech Republic is a country right in the middle of Poland, Germany, Austria and Slovakia. It is a moderately free economic nation however over that last two decades has developed positive economic reform (Czech Republic, 2008). Businesses and investors are attracted to the “strong and growing economy, equitable and stable conditions, a qualified workforce and the low cost of doing business, (Czech Republic, 2008)” just to name a few. This makes an ideal choice for Steve since he has had the opportunity to learn the culture. Of course Steve would have learned that foods like pizza are popular in Czech so it is not like it would be something new to them (Culture grams, 2008). The Czech Republic culture would not seem strange to the United States. As a matter of fact, they are not much different at all. Some of their cuisines may have slight variances however; they still like to eat quick snacks on the side of the road just like many in the United States (Culture Grams, 2008).
Understanding the business side and the country culture can help build a better understanding of how the business should come into the company and how the business should operate and viewed by members of the community. According to Professor Hofstede, “Culture is more often a source of conflict than of synergy.
My personal insight of the operations is that Carmine’s located in the Theater District is great place to eat and work. They are making way more money than they are spending, they have managers that are knowledgeable and know how to control cost. Carmine’s is an overall successful business and is an ideal place of employment due to the fact that you can always move up in the company. I really enjoyed writing this paper because I work here and gave me a better insight and opinion of the establishment. The food is great and the people I work alongside are even better, we host some of the funniest and great people from around the world as our guest.
In the thirty-five years preceding World War I, the United States was flooded with seventeen million “new” immigrants from Southern and Eastern Europe. Each group brought their own distinctive food habits from the “old” world. The Italians, a large portion of which came from Southern Italy, were part of th...
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.
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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.
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