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The Cultural Challenge of Doing Business Overseas

By:   •  June 26, 2012  •  Essay  •  966 Words (4 Pages)  •  1,024 Views

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The Cultural Challenge of Doing Business Overseas

This paper is based on a scenario of a fictional character name Steve Kafka. Kafka wants to expand his pizza franchise business in his native country Czech Republic. The Czech Republic is a former extension of the Country Czechoslovakia but has been an independent, since 1993. Kafka will open his new business in Prague the capital of Czech Republic. Prague is the wealthiest city in the Czech Republic. The Czech Republic has a mature economy from the country development in industry such as motor vehicles, machine-building, iron and steel production, metalworking, chemicals, electronics, transportation equipment, textiles, glass, brewing, china, ceramics, and pharmaceuticals. (US Department of State, 2011)

The Czech Republic economy is an advantage to Steve Kafka because the healthy economy is a good indicating sign the natives of the Czech Republic are buying goods and services. Steve will need to use his native family and friends to help him generate a positive following for his business. In the Czech Republic Culture, multimedia advertising is not as effective marketing tools like in the United States. Hand printed advertising such as flyer pass around by friends and family would help Steve generate the positive recognition he need for a successful starting profit.

Since Steve has spent a long period of time in the United States business model, he may not be accustomed to the Czech Republic business culture. It is important in the Czech Republic business culture to have familiarity working in their establishment such as family members, friends, or residents from the town the business is located. In the Czech Republic culture franchise are not as popular as they are in the United States. The Czech Republic culture prefers family style cooking rather in the home or public restaurant. Compared to the United States business culture were fast food franchises are popular with citizens. In the United States franchise food business employees would be hired strangers of majority youth age and multiple races. They would not be related nor would the customers expect the workforce to be relatives or residence of the town. In American culture this forethought usually does not cross the consumers mind.

Todays business cultures are different between the United States and Czech Republic but the United States has had a close government relationship with Czechoslovakia Country. There are over a million American citizens who have ancestor history in Bohemia and Moravia of the Czech Republic. ". President Woodrow Wilson and the United States played a major role in the establishment of the original Czechoslovak state on October 28, 1918. President Wilson's 14 Points, including the right of ethnic groups to form their own states, were the basis for the union of the Czechs and Slovaks. (US Department of State, 2011)" The United States was the first Country to recognize the Czech Republic as an independent nation.

History shows the Czech Republic culture and The Unites States have build successful relationships. Steve has to comprise a plain of adapting the two cultures to be success in his business. Will Hofstede four primary dimensions can help him achieve his goals. In the dimension of masculinity, "the traditional masculine work role model of male achievement, control, and power. A High Masculinity ranking indicates the country experiences a high degree of gender differentiation. In these cultures, males dominate a significant portion of the society and power structure. (Geert Hofstede Analysis, 2008)"Steve must take on the masculine role as Czech Republic business owner by showing his control

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