University of Phoenix
MBA 501
David Francom
September 17, 2007
Introduction
A major challenge of doing business internationally is to adapt effectively to different culture. Such adaptation requires an understanding of cultural diversity, perceptions, stereotypes, and values (Hodgett &Luthans, 2006). Doing business overseas has its challenges as well as it rewards. This paper will analyze some of the challenges and rewards in doing business overseas. I will also discuss some of the major differences and incompatibilities between the United States and Czech cultures as was as comparative advantages and trade barriers that one should be aware of when conducting business overseas.
Some of the major differences and incompatibilities between the United States and Czech cultures are; norms, values, beliefs and behavior. These differences will create a business risk for Steve because even though he is of the Czech origin, has friends and family living there, visits several times and speaks the language fluently he does not the full knowledge of how businesses are conducted in Czech. Though he is a franchisor for Chicago Style Pizza, he cannot operate internationally as he does locally because of the differences in value, as it will affect his management functions.
For example, in the American culture if an employee's primary obligation is to the organization, then if the employee is not performing well he or she can be removed. However, if in the Czech culture employee's primary obligation is to their family and friends, then of course, it will be almost impossible to remove employees if they are not performing well. This will affect functions such as planning, scheduling, goals and career (Hodgetts & Luthans, 2006). These risks can be mi ...