The Cultural Challenges Of Doing Business Overseas

Introduction
A major challenge of doing business internationally is to adapt effectively to different cultures. Such adaptation requires an understanding of cultural diversity, perceptions, stereotypes, and values (Hodgetts & Luthans, 2006). Steve Kafka, an American of Czech origin and a franchisor for Chicago Style Pizza, has decided to expand his business into the Czech Republic. He knows it is a risky decision; when he became a franchisor, he had to overcome a lot of difficulties. Steve anticipates he will face some of these difficulties again at the new location in Prague, Czech Republic. Although he was born in the United States, he has family and friends in the Czech Republic, speaks Czech fluently, and has visited the country of his origin several times. Steve needs to completely learn and understand the people and culture of the country of his origin in order to make his business venture successful.
Differences and Incompatibilities between U.S. and Czech Cultures
The opening of a Chicago Style Pizza shop requires a better understanding of the culture of the Czech Republic.  One of the major hurdles Steven needs to overcome is that eating out is not common among Czechs and is considered something of a treat. This is slowly changing as more western life-style is adopted by the younger generation (Bohemica.com). Eating habits of the Czech Republic shows that table etiquette is very important. It is considered a sign of bad upbringing not to use knife and fork in the continental manner. Making any slurping noises while eating is a gross violation of etiquette. Traditionally, drinks are served after meals (according to traditional lore) and in some restaurants you have to ask if you want to drink before eating. Courses of a meal are served in a str ...
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