Challenge Of Doing Business Overseas

Challenge Of Doing Business Overseas

 
Introduction
Steve Kafka, a franchisor for Chicago Style Pizza, has made the decision to introduce Chicago Style Pizza by expanding to the Czech Republic. Steve is familiar with the Czech culture.   His family is originally from there, and he has friends there.   He speaks the language fluently, a definite advantage. Although Steve is familiar with the country’s culture, as well as the franchise, he realizes that he needs to become aware of the risks of the venture.
Identify the Major Differences and Incompatibilities between U.S. and Czech Cultures
A country’s culture is the unique characteristics of the country. These characteristics separate the country from others. Culturally, there are minor cultural differences between the United States and the Czech Republic.   As an example, in the United States, “it is best to avoid discussing religion, money, politics, or other controversial subjects,[until one knows a person]”(US Countrywatch, 2009); however, in the Czech Republic the custom is to converse about “politics and other complicated issues such as religion, (Czech Republic Countrywatch, 2009). The countries also differ in their eating habits. Residents of each country use a fork and knife to eat with, but the habit in the United States is to use the hand that they write with to hold the fork, while in the Czech Republic the fork is always held in the left hand and the knife in the right. Also, “most Czechs do not dine out often” and “hot dogs and pizza [are considered] snack foods” (CultureGram, 2009). Steve is well aware of these cultural differences; however, he must familiarize himself with the way business is handled in the Czech Republic.   Franchising is a good way to enter foreign markets; however, the franchisor must capitalize on the environment they are entering.   As an example, the Czechs prefer a restaurant set up café style, and friendly service is preferred over a formal style. Steve must also think about the Czech...