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The Cultural Challenges Of Doing Business Overseas

2570 words - 10 pages

The Cultural Challenges of Doing Business Overseas
Introduction
There are several challenges such as the impact culture and management practices to succeed overseas with business ventures for an American Company that takes the greatest risks in making decisions. In this Scenario, 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 U.S, he has family and friends in the Czech Republic, speaks Czech fluently, and has visited the country of his origin several times. Even though he knows the people and culture, he has to take considerations and evaluate the cultural differences between the U.S and Czech Republic.
Major differences and incompatibilities between the U.S and Czech cultures
The writer believes that culture affects the beliefs and actions of people from different countries in different ways. According to information collected by Culture Grams, there are some apparent differences between the U.S and Czech Republic regarding with eating. Most Czechs do not dine out so often. In U.S, the pizza is a favorite and popular dish is considered a whole meal itself whereas hotdogs and pizzas are popular snack foods that can be purchased from sidewalk vendors and beer, soda, and juice are popular throughout the day in Czech. Many desserts are also made from fruit. With these differences, Steve has to consider the best marketing strategy to develop for selling beer and pizza with deserts in the new foreign market. People often gesture with their hands to emphasize their meaning in conversation whereas in U.S it is somewhat important. If Steve may have ideas the pizza business and Czech culture, he can create good relationships in his business venture.
Evaluation of Czech Business Culture Applying Hofstede's Four Primary Dimension
Hodgetts and Luthans are defined Culture "is acquired knowledge that people use to interpret experience and generate social behavior. This knowledge forms values, creates attitudes and influences behavior."According to Hodgetts's research, there are four cultural dimensions; power distance, uncertainty avoidance, individualism and masculinity. Power distance exposes lower-level employees follow their superior orders as a matter of procedures. Low-power distance exists in organizations with decentralized and flatter structures in which employees on...

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