Cultural Challenges of Doing Business Overseas

Essay by rlundayUniversity, Master'sA+, April 2010

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The Cultural Challenges of Doing Business Overseas

University of Phoenix


The Cultural Challenges of Doing Business Overseas

Steve Kafka is a pizza franchisor who is looking to expand his business in the Czech Republic. Although he is an American citizen he has relatives in the Czech Republic who can assist him to evaluate the culture, and language differences between the United States and the Czech Republic. The United States and Czech cultures raise many issues in business.

Differences and Incompatibilities

Steve Kafka realizes his Chicago style pizza would post a challenge in the Czech Republic of Prague. The United States diet is considerably different from the Czechs. Although some United States citizens would not mind eating pizza with a beer, the Czechs would buy their pizza from vending machines with pre-cut slices.

This is not considered a delicacy in the United States. Steve must adapt to the culture while doing business in Czech Republic. Unlike the United States there are certain rituals and customs that must be followed to have a successful business.

For example:

When shaking hands never keep your other hand in the pocket, because it is considered bad manners.

If you raise your hand in the meeting have it face forward with the index finger extended if you wish to speak and don't speak out of turn.

Steve has to realize the Czech's legal structure is very complex and needs to have a strong lawyer team to handle the proper air tight cooperation agreements. Steve needs to take time to know and understand his Czech partners and who they are as people (Mole, 2003).

Comparative Advantages

The advantage of Steve doing business in the Czech Republic is that he...