When doing business overseas companies have to prepare themselves for the cultural challenges that will inheritably come their way. Those companies that take the time to gain the knowledge needed about another culture and practice sensitivity to those differences in cultures will find themselves more successful than the companies that have not done the research. Steve Kafka an American of Czech origin has decided to expand the food franchise Chicago style pizza to the Czech Republic. The differences between the United States and the Czech Republic will be an obstacle that will have to be conquered. Those differences will also be evaluated through the Hofstede cultural dimensions study. The comparative advantages for the Czech will be a benefit to Steve as he looks for the best possible avenue to expand. and the benefits of the Trade barriers, cost structures and price elasticity are also important variables to examine when looking to export a franchise.
Are there major differences and incompatibilities between the U.S. and Czech cultures? Will these differences create major business risks for Steve? How might Steve mitigate these risks? There exist several differences between the United States and Czech Republic. One differences relevant to this evaluation is the work ethic of Czech employees. In the United States we have a very competitive work ethic we want to be efficient and make a profit quickly, however in Czech the attitude is much more laid back when working with Czech employees Steve will have to practice patience. He will also need to rely on personal relationships with friends and family to help direct him away from scammers. The lack of consumer loyalty to a specific brand or company is another huge dif ...