Prestcom
Anna AvdeykoCommunication Among CulturesVeronika ZavrelovaJan 7, 2008PRESTCOM AnalysisCultural Analysis of the Czech RepublicIn todays economic environment, international business has its own advantages and disadvantages. When expanding business oversees, companies have to be aware of social, cultural, legal, economic, political and technological factors. Before launching a product into a foreign market, the company has to observe and acknowledge specific differences in that particular market and its main target audiences. Upon completion of cultural analysis the company should design its market strategies in a way that suits foreign markets needs and wants. This paper will discuss the economic environment and cultural climate for the Czech Republic, in order to find out possible economic and/or social barriers before opening new Russian based tea shop franchise in Prague. The main purpose of this analysis is to recognize and illuminate the risks related to cultural/economic differences.
The following analysis of cultural differences will be based on concept of Hosfsteds cultural dimensions. Hofsted cultural dimension identifies four different levels that can be used to describe national cultures. The concept includes following levels, Power Distance, Individualism versus Collectivism, Masculinity versus Femininity, Uncertainty Avoidance. Apart from cultural differences the paper will also focus on brief analysis of political, economic, and regulatory policies concerning business environment in the Czech Republic.
The first dimension in Hofstede theory is power distance which measures the extent to which the unequal distribution of power in organizations and institutions is accepted (Heuhemer, Silvia et al). According to Hofstede cultural dimension the Power Distance Index for the Czech Republic is 35, which suggest that is a lower power country (Greert Hofsted Cultural Dimensions). Russian work values, on the other hand, characterised by high Power Distance. This suggests that Russians have higier tolerance toward inequalities in the work place environment (Ardichvili, Alexander). Thus, running business in...
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