Topic > The Cultural Challenges of Doing Business Abroad

Introduction Doing business in the United States presents many challenges, and more challenges arise when you decide to do business in a foreign country. In this article I will discuss the challenges that Steve Kafka will face when he opens his business in the Czech Republic. According to the information provided to me in the assignments, Steve Kafka is an American of Czech origin and he is a franchisor for Chicago Style Pizza. He decided to expand his business to the Czech Republic, knowing that it is a risky decision. When he became a franchisor, he had to overcome many difficulties and he expects that he will face some of these difficulties again when he opens his business in the new location in Prague, Czech Republic. Steve was born in the United States and has family and friends in the Czech Republic Although he speaks fluent Czech and has visited the country several times, he believes he knows the people and the culture. This article will look at some of the challenges he may face, the risks that may be involved, and the factors Steve may want to evaluate as he approaches this exciting new opportunity. Discussion A: Are there major differences and incompatibilities between US and Czech cultures? Overall, Czech culture is remarkably similar to US culture. After the breakup of Czechoslovakia, the Czech Republic is one of the most stable and prosperous countries and has one of the most developed and industrialized economies (www.countrywatch.com.). Czechs generally have a medium to high income and are well educated. There are many small cultural differences between American and Czech people. As for eating, Czechs rarely dine out and when they do, meals are served à la carte; empty glasses are refilled quickly and customers do not pour their own drinks, beer is commonly consumed during meals (CultureGrams, 2007). Dates are usually done in groups and usually consist of movies, dancing or outdoor activities. This is in contrast to US culture where families often dine out, many accessories are served with the meal (e.g. salad and bread), and restaurants offer pitchers of drinks that customers pour themselves. Typical dates in the United States include dinner, or some other meal, at a restaurant followed by a movie or dancing.