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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.
Stephen Boos has worked in the food service industry for over 30 years. He started as a bus person and subsequently trained as a chef’s apprentice. Steve’s mother believed that a college education was something that everyone should receive. She felt that a college degree was a good investment in Steve’s future. In 1976 at his mother’s insistence, Boos moved to Northeastern Ohio to attend Kent State University where he earned a bachelor’s degree in business administration. After graduation, Steve began working for East Park Restaurant as a line cook. Using his education as a foundation, Steve made a point to learn everything he could about running a restaurant, from cutting meat to the bi-weekly food and beverage orders. His versatility, keen business sense, and ability to control costs resulted in Steve’s promotion to General Manager, as role he has held since 1995.
Many people declare that pizza is the best food that they have ever tasted, or it is at least their favorite, but pizza has not gone far beyond fulfilling a sense of hunger. “The Best Pizza in the World”, by Elizabeth Gilbert, is a short story that explores how a simple pizza quenches the narrator's thirst for adventure and changes her overall attitude toward herself. In “The Best Pizza in the World”, Gilbert uses description,cause and effect; and pathos to share her experience of how a little pizzeria in Naples lead her to temporary enlightenment.
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.
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...
For this assignment, I chose to interview an individual whom I’ve named “Stan Polansky” to protect the anonymity of my interviewee. Stan is a 25 year old Polish man who officially moved to the U.S. roughly 3 years ago after moving back and forth from Poland and the US. Stan was faced with the difficult economic decision of deciding whether or not to pursue a career as a musician or in the jewelry business. Stan chose to attend a trade school and pursued a career as a jewelry repairman/ custom jewelry designer instead, making him now a third generation jeweler. Stan is currently employed at his family’s jewelry business. However, this decision did not come easy. Stan’s Polish culture and family played a large role in his decision. In addition,
2005 will mark the 100-year anniversary of the first pizzeria in America. Americans eat approximately 100 acres of pizza each day, which is about 350 slices per second. According to an American Dairy Association random sampling survey, pizza is America’s fourth most craved food behind cheese, chocolate, and ice cream. American’s obviously love pizza; we have even designated the month of October as National Pizza Month. But whether you bake your pizza in your kitchen oven, in a wood-burning stove, eat it in a restaurant, or choose delivery, there is no denying this phenomenon has become as American as apple pie.
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.
Our economic development will forever be defined as our ability to succeed internationally. PwC forecasts India’s real annual GDP growth until 2050 at 8.9 percent, Vietnam’s at 8.8 percent, and China’s at 5.9 percent. The list of fast-growing emerging markets goes on and on. The U.S. forecast is a meager 2.4 percent, comparable with most Western economies. The domestic companies that are likely to see incremental growth in the coming decades are those that are not only doing business internationally, but that are developing the strategic skill set to master doing business across cultures. Cross-cultural core competence is at the crux of today’s sustainable competitive advantage. For example, political environment will tell us, as to how and why political leaders control, whether and how of international business. Legal environment, both national and international will tell us about many kinds of laws by which business firms must work. The cultural environment will tell us about attitudes, beliefs and opinions important to business people. Economic environment will tell us about the economic system being followed by the host country, which may or may not be different from home country. It will also explain the variables such as level of development, human resources, Gross Domestic Per Capita and consumption patterns that determine a firm’s ability to do business. Geography will tell us about location, quantity, and quality of the world’s resources.
A great example of an organization that practiced successful global marketing strategies and became one of the most famous brands - is McDonalds. What is the secret of such successful global strategy that made the company the biggest fast food chain in the world? This paper discusses the McDonald’s global strategy that established a successful international presence for the company. Report analysis the cultural differences that are managed by the McDonald and suggests a strategy for future global growth.
Food is an important part of popular culture, and the beliefs, practices, and trends in a culture affect its eating practices. The proportion of money spent on food eaten away from home, as well as the number of restaurants, has been increasing since the second half of the twentieth century. People may dine at formal, sit-down restaurants, at fast-food eateries, at cafes, or they may purchase food from street vendors. There has been an “Americanization” of diets through the growth of fast-food restaurants.
... conclusion, to compete with the intense competition in today’s fast-food market, KFC China differentiates the company by being innovative. Three significant innovative strategies are localizing the menu, understanding the Chinese culture, and hiring local management. KFC demonstrates that one size fits all approach in the global market does not always work. Many typical Western approach to foreign expansion is to deliver the same products or services as their original establishment. For instance, Domino’s Pizza, an American restaurant chain, nearly failed in Australia due to the underestimation of the need to adapt their offerings to the local tastes. KFC China offers important lessons for global firms. It is essential to know that to what extend the company should keep the existing business model in emerging markets and to what extend it should be thrown away.
My parents are from different cultural backgrounds, but the majority of my cultural heritage is Polish. Poland is located in the center of Europe and traces its roots back at least one thousand (1,000) years (“Poland profile,” 2016). The surrounding countries are Ukraine and Belarus on the east side, Lithuania and the Russian province of Kaliningrad on the northeast side, Germany on the west side, and the Czech and Slovak Republic on the south side. It is basically
As companies grow and put heavier weight on the importance of globalization, the need for companies to partake in cultural learning becomes more and more vital. With the various cultures worldwide, companies will find it highly beneficial to not only learn what makes the people within these cultures tick, but more importantly, apply it to their business strategies. In order to successfully manage, merge, or trade with other countries, one must understand how cultures differ from each other and what steps they need to take to be successful when conducting business with these cultures. The use of cultural anthropologists has proven beneficial for companies like Google, Intel, and Microsoft in implementing their business
Since the end of World War II, international operations have become a reality for an increasing number of corporations. Many of these initial efforts began as simple export schemes to sell goods overseas to supplement domestic sales. Over time, however, international operations have become increasingly more complex: from joint-ventures to purchasing existing foreign firms to ‘green-field’ start-ups. While export operations usually require no more than extended business trips overseas, more complex international operations demand long-term assignments of key personnel outside their home-country. What would normally be considered routine business transactions in the home country can become very complicated when they are conducted between individuals and organizations from different cultures. In this essay we will examine how this cultural gap can affect international business and joint ventures.
“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.