Cultural Differences
Running head: THE CULTURAL CHALLENGES OF DOING BUSINESS
The Cultural Challenges of Doing Business Overseas
University of Phoenix
The Cultural Challenges of Doing Business Overseas
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 will face some of these difficulties again at the 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? There are major differences and incompatibilities between the United States and Czech cultures. There are several concerns that risk might be a problem that Steve may have to face. Hofstede’s four primary dimensions may or may not help Steve evaluate the Czech business environment. Also there may be trade barriers that he should be aware of. Steve has to assess the demand for pizza at different prices and assess the cost structure he would face.
The United States and Czech Cultures
Culture derives from the Latin word cultura meaning “to cultivate.” Wikipedia defines culture as generally referring to patterns of human activity and the symbolic structures that give such activities and importance. Different theoretical bases for understanding, or criteria for evaluating, human activity reflect different definitions of culture. “American culture is rich, complex, and unique. It emerged from the short and rapid European conquest of an enormous landmass sparsely settled by diverse indigenous peoples. Although European cultural patterns predominated, especially in language, the arts, and political...
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