Steve Kafka, a franchise owner for Chicago Style Pizza, is contemplating the options of opening a new franchise into the country of the Czech Republic, the country of his family's origin. Though Steve has made several trips into the Czech Republic, speaks the language and knows many people, he must seriously consider all of the opportunities and potential barriers to this new venture. I will explore the cultural differences between the United States and the Czech Republic. Next, potential competitive advantages are examined along with Hofsteade's Primary Cultural Dimensions to reveal clues to the culture pertaining to the new business. Finally, trade barriers and price income and elasticities are discussed.
Culture Differences
There are several differences in culture between the United States and the Czech Republic, though those differences are not unconquerable Steve will have to understand some basic principles of business etiquette that are considered acceptable in the Czech Republic in order to be prosperous. For a business, word of mouth advertising is the best way to gain new customers. If a major advertising blitz is attempted, it may be considered suspicious and might backfire if not coupled with local store marketing(Czech Republic: Travel information, 2008). As contacts with other local businesses are needed to make the new franchise successful, such as produce and drinks, appointments with those businesses should be made weeks in advance. The Czech's prefer not to have last minute engagements. Many marketing techniques should be implemented in person instead of by mail which is impersonal. Mailing could be considered rude and could be perceived as a scam. As an employer, it should be understood that mother...
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Business in US and The Czech Republic The purpose of this document is to present solutions and recommendations for Steve Kafka, an American of Czech origin and a franchisor for Chicago Style Pizza, who has decided to expand his business into the Czech Republic. This document focuses on the major differences and incompatibilities between the U.S. and Czech cultures. The script also shed lights on the business risks and mitigation on Czech culture. The paper also talks about the comparative advantages that exist in the Czech Republic and Hofstedes four primary dimensions for Steve to evaluate the Czech business environment.
Czech Republic is a country right in the middle of Poland, Germany, Austria and Slovakia. It is a moderately free economic nation however over that last two decades has developed positive economic reform (Czech Republic, 2008). Businesses and investors are attracted to the “strong and growing economy, equitable and stable conditions, a qualified workforce and the low cost of doing business, (Czech Republic, 2008)” just to name a few. This makes an ideal choice for Steve since he has had the opportunity to learn the culture. Of course Steve would have learned that foods like pizza are popular in Czech so it is not like it would be something new to them (Culture grams, 2008). The Czech Republic culture would not seem strange to the United States. As a matter of fact, they are not much different at all. Some of their cuisines may have slight variances however; they still like to eat quick snacks on the side of the road just like many in the United States (Culture Grams, 2008).
The idea of experience regarding globalization is important, according to various scholars, as globalization only truly matters if people can feel that it has something to do with their lives. People have to sense that they are actually experiencing globalization in order to care about it and find it important enough – which is why I would like to argue that certain of the pieces in the "experiencing globalization" section of the course literature represent the most fundamental and significant ideas in terms of understanding globalization processes. I will first address Lechner’s ‘waves of globalization’ and Levitt’s idea of ‘transnational villagers,’ and afterwards I shall discuss Appadurai’s ‘experience
“Red is a positive color in Denmark, but represents witchcraft and death in many African countries,” (Understand and heed, 1991, p.1). Simple understandings, such as this one, can make the difference in a business’ success or failure in a foreign country. Various countries have different customs and beliefs that need to be accustomed to when business are to be successful. American businesses especially have difficulties with this concept. “At times in the past, Americans have not had a good track record of being sensitive to cultural distinctions,” (Understand and heed, 1991, p.3). Perhaps this is because America is made up of so many different cultures that American people have become so used to easily adjusting to each other’s differences that they forget that other cultures are not as flexible. Today, more American’s are becoming more sensitive to the differences of other cultures. This sensitivity and understanding has come with a price, after a long string of business failures. It is not until a business fails miserably in another country that they see the adjustments that should have been made in order for their success to be a possibility. With an understanding and sensitivity to the customs and beliefs of other cultures, it is possible for successful businesses that have originated in western cultures to also be successful in foreign countries as well.
Business and culture both plays a important role in environment. Culture states to value and attitudes. Culture is a back bone of any business. Culture is a very important key factor for your global business to be successful. In an business whether it is at national or international level the culture plays an important role. Difference in culture can be the determinate factor to do business internationally or successfully.
In order to do business in Japan we must first understand the Japanese culture. The Japanese culture has a deep history and is very complex. When analyzing and trying to understand the Japanese culture we must look at various aspects such as: communication, languages, manners and customs, values and attitudes, ethics, and religion, and social structures. We must also consider how these aspects of culture play into doing business in Japan and how they compare to Canada’s way of culture and business
- Adjust the franchise according to regional preferences/ should start with a partner who live in the local area/ nation to help instruct about favorable ingredients and taste
The following is a summary of the market audit and competitive analysis of incorporating Domino’s pizza into the country of Cuba. One will learn about product analysis and the relative advantages compatibility, complexity that Domino’s may face while setting up their new business venture. Additionally, one will have a better understanding of the market, marketing strategy, what needs to be modified or adapted as the plan is moved into place. Determining the type of promotional mix, distribution and one of great importance is the determination of the price. As it is already known that this is a poor country and the annual income does not exceed $2000 per month.
Steve Kafka, an American of Czech origin and a franchiser of Chicago Style Pizza, has decided to expand his business and open a franchise in Prague, Czech Republic. Before venturing into the global business sector, Steve needs to conduct an in-depth analysis in order to become familiar with the Czech culture. This analysis will present opportunities and risks that Steve will need to achieve and overcome so his end-state goal of expanding his Chicago Style Pizza business can be realized. This paper will investigate and discuss the major cultural differences and incompatibilities between the United States and the Czech Republic defining the apparent risks, and how to mitigate those risks that may develop from these differences. Discussion will then turn to the comparative advantages within the Czech culture, how using Hofstede’s four primary business decisions will help Steve evaluate the business environment, how trade barriers may impact business, and analyze the demand for pizza and how to assess its cost structure.
In the article, Cultural constraints in management theories, Geert Hofstede examines business management around the globe from a cultural perspective. He explains how he believes there are no universal practices when it comes to management and offers examples from the US, Germany, France, Japan, Holland, China and Russia. He demonstrates how business management theories and practices are very much subject to cultural norms and values and by understanding these differences, it can give managers an advantage in global business practices.
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 had to overcome a lot of 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. He knows the people and the culture. In this paper, I will analyze the cross-cultural differences between the United States and Czech Republic, determine comparative advantages in this country, and recommend ways to minimize the risks of establishing a franchise overseas.
In recent decades, the process of globalization has accelerated and the world economy has become increasingly interdependent. The rise in the number of businesses that extensively operate in more than one foreign country, which is known as multinational corporations, plays an important role in the ongoing procedure of globalization. The United Nations has reported that multinational corporations hold one-third of world’s productive assets and control 70 percent of world trade (Schermerhorn et al., 2014). As there is a considerable growth in international businesses, worldwide economy is becoming more highly competitive. The global economy not only offers great opportunities for multinational enterprises but also on the other hand, creates many difficulties for them. Therefore, success in the large-scale economy requires a number of elements. One of the major determinants is dependent on global managers. In the operation of organizations, managers may encounter different international management challenges that restrict their business development. These challenges often include issues associated with the host countries, the global workforce diversity management, management across cultures, difficulties in competitive global business environment as well as in the process of global planning and controlling. This essay is going to discuss the above international management challenges in a broad sense and giving illustration in aspects of each challenge.
A major challenge of doing business internationally is to adapt effectively to different cultures. Steve Kafka, an American of Czech origin and a franchiser for Chicago Style Pizza has decided to expand his business to Czech Republic. This is a risky decision and Steve anticipates he will face obstacles as he goes about setting up the new pizza outlet at this new location, Prague.
Svensson, G., 2001. 'Globalization' of Business Activities: A 'Global Strategy' Approach, Management Decision, 39(1), pp.6-18.
even cause offence if not marketed or designed in a manner appropriate to that particular