The Czech Republic is a developed, democratic country about the size of South Carolina located in the center of Europe. In 1993 Czechoslovakia split into two sovereign states, from which the Czech Republic emerged, and in March of 1999 the Czech Republic joined the European Union (EU) (CultureGrams: Czech Republic, 2007). The Czech Republic is also a member of the North Atlantic Treaty Organization (NATO).
Steve Kafka, an American of Czech origin and franchisor for Chicago Style Pizza, has decided to expand his business into the Czech Republic. Steve is fluent in the Czech language, has friends and family in the Czech, has visited several times and has overcome a great deal of difficulties as a franchisor. Steve anticipates difficulties as he establishes his business in the Czech and this paper analyzes the possible challenges he will encounter due to cultural differences.
Political and Governmental Culture
Although the Czech Republic is experiencing increased standards of living, both Russian and German influences are still prevalent. Familiar with U.S. cultural environment, Steve should be aware, despite modernization efforts, the Czech Republic is still confronted by a moderate amount of bureaucracy. The legal system is complex with plenty of red tape (Doing business in the Czech Republic, n.d.).
Comparative Advantages in the Czech
Some of the better-known products produced in the Czech Republic include: machinery and transport equipment, manufactured goods, glass, lead crystal, porcelain, jewelry and beer (Traditional Czech products, n.d.). Steve could take advantage of the proven popularity of beer in the Czech by offering it in his store. This could serve as an incentive for both domestic and ...