Cultural Challenges
-name-
MBA 501
Douglas Holbrook
December 16, 2008
Cultural Challenges
Introduction
Steve Kafka is an American of Czech descent who is a franchisor for a Chicago Style Pizza company. He has decided to take his franchise to the Czech Republic. The paper will focus on analyzing this business opportunity. Elements that will be analyzed are differences and incompatibilities between the two cultures, risks introduced due to these differences and risk mitigation. Comparative advantages for Czech Republic will be listed and analyzed which of them the business person could take advantage of. The trade barriers are also enumerated and their potential impact on the business will be analyzed. The paper will establish if the four primary dimensions will help Steve evaluate the Czech business environment. Finally the paper will attempt to create a price strategy for the pizza business products.
Major Differences/Incompatibilities
The Czech people share community idealism and cooperate to accomplish a goal. They have a free trade environment now but had many years under soviet rule where the good of mother Russia was the major focus. They focus on longterm goals and there is a certain amount of resistance to change. Members of Western Cultures do not share these values. A pizza chain in the Czech would have a better chance of success if it had roots, with lineage especially since this business isn’t a longstanding one. Steve has not looked at Prague closely enough for this venture; pizza is a roadside/vendor type of food. Additionally most Czech people don’t dine out and prefer their food cooked at home.
Comparative Advantages
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