Culture Challenges Of Doing Business Overseas
Running head: CULTURAL CHALLENGES OF DOING BUSINESS OVERSEAS
Cultural Challenges of doing Business Overseas
Janet Jones
University Of Phoenix
May 26, 2008
Sangeeta K. Bishop
Introduction
A major challenge of doing business internationally is to adapt effectively to different cultures. Such adaptation requires an understanding of cultural diversity, perceptions, stereotypes, and values. (Hodgetts, Doh & Luthans ,2004 p. 1). Steve Kafka, an American of Czech orgin, and a franchisor of Chicago Style Pizza, has decided to operate a business in the Czech Republic. Steve speaks Slavic fluently and has many friends and family there. He must take into account the opportunities and possible difficulties of staring a business abroad. This paper will focus on the comparative advantage that exist in Czech Republic, Hofstede’s four primary dimensions of culture, and the evaluation that Steve must perform in order to be successful in the Czech business environment. Steve must determine and assess the demand for pizza at different prices as well as income and price elasticities of pizza. Steve must consider the different kind of trade barriers that will affect his business. This paper will further illustrate the major differences and incompatibilities between the United States and the Czech Republic.
Major differences and incompatibilities of United States and Czech Republic cultures
Culture is acquired knowledge that people use to interpret experience and generate social behavior. (Hodgetts, Doh, & Luthans, 2004 p. 3) Culture has an affect on every aspect of business functions. Major differences and incompatibilities that exist between the U.S. and the Czech Republic are religion, government, beliefs, values, education, diet, and the economy. The American people place value on honesty, innovation, and productiveness, whereas the Czech Republic value humility, education, and...
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