Preview

The Cultural Challenges of Doing Business Overseas

Better Essays
Open Document
Open Document
1578 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Cultural Challenges of Doing Business Overseas
The Cultural Challenges of Doing Business Overseas

MBA/501
Dr. Ellen Szarleta-Instructor
August 27, 2006

The Cultural Challenges of Doing Business Overseas

Introduction
For an American company to be successful overseas with business ventures they have to take risks in making business decisions which can be challenging. 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 great deal 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. For this business venture to be successful Steve has to evaluate and take in considerations of the cultural differences between the United States and Czech Republic before moving ahead.

Differences and Incompatibilities between U.S. and Czech Cultures
There are many differences and incompatibilities between the U.S and Czech Republic cultures and if Steve wants to expand his business here in the Czech Republic he is going to have to weigh the differences and take them into consideration in his business decision-making process. According to the information presented by CultureGrams, there are some obvious difference between the American and Czech cultures in regards to food and diet. In Czech, dining out dining out is a rare occurrence. In the United States the pizza which is a favorite and popular dish is considered a whole meal itself that can be consumed at the restaurant, carried, or delivered to the home for consumption whereas the Czechs eat pizza only as a snack on the streets where it sold as by street vendors. Czechs tend to eat with the fork in the left hand and the knife in the right where in

You May Also Find These Documents Helpful

  • Powerful Essays

    Mkt360 Exam 2 Review

    • 2357 Words
    • 10 Pages

    Low context information is explicit, with words carrying the entirety of the message and written formal specifications. Awards are competency based. IN a high context information is implicit, including non verbal cues. Awards are trust/recommendation based.…

    • 2357 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Twelve Trees is a Canadian company that imports loose teas from China. They receive the tea in bulk from independent Chinese farmers, and package the tea in 400g, 2000g, and 5000g portions for distribution among their retailers, for the price of $110.00, $410.00, and $1,180.00, respectively. Their suppliers reside in the Lingnan area (comprising the Guangdong, Guangxi, and Fujian provinces), and they specialize in Wulong tea, although some of their suppliers also grow green, black, and white teas. During the past fiscal year, the number of retailers interested in purchasing their product in bulk has increased by 37 percent. Twelve Trees attributes their product’s rise in popularity to an increasing interest in alternative health treatments, particularly among young and middle-aged women, and to the fact that the teas are certified organic and grown in a socially responsible manner. While they are excited about the prospects of increased business, Twelve Trees is struggling to find enough Chinese farmers to fill their orders.…

    • 695 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Nazdarovie Case Study

    • 1504 Words
    • 7 Pages

    During our time in Cuba, we visited many excellent restaurants and paladars that each had unique foods and atmospheres which provided a different experience every day. One restaurant that stood out to us was Nazdarovie, a restaurant that celebrates the food of Russia, Ukraine, and other ex-republics of the Soviet Union. We found that their inspiration of paying homage to the Soviet women who decided to move to Cuba before the 90s and Cubans who went to study in the USSR hit deep emotionally and was an impactful business foundation. We were so fascinated by Nazdarovie’s business model that we thought creating something similar in America that pays tribute to a cause instead of making quick money would share purpose and meaning to people.…

    • 1504 Words
    • 7 Pages
    Good Essays
  • Better Essays

    In this report I will be stating the differences of how Tesco function in South Korea compared to how they function in the United Kingdom. Tesco have to adapt to the local culture, traditions and tastes and have to recreate an environment in which shoppers will feel at home.…

    • 1566 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    Cadbury is the world’s largest confectionary producer; it is also a beverage industry. Based out of London, United Kingdom, it operates worldwide with global production, marketing, and sales functions. The company was founded in 1824 when entrepreneur John Cadbury vended tea, coffee, and chocolate in the UK. He later established Cadbury Brothers Limited, which expanded operations to British occupied India, making Cadbury one of the first multinational companies in the confectionary industry. Cadbury’s many famous products last to this day. Cadbury’s world-known Dairy Milk product celebrated its centennial anniversary in 2005.…

    • 5868 Words
    • 24 Pages
    Powerful Essays
  • Satisfactory Essays

    Business Culture in the UK and China Greeting and conversation UK It is common to shaking hands. It is considered the polite way to greet someone and one should use last name and appropriate titles when addressing the host. Before discussing business matters, people usually make ‘small talk’. This is often on a topic such as the weather, transport or sport. Humour is often used. China In China, meetings start with the shaking of hands and a slight nod of the head. The Chinese are not keen on physical contact - especially when doing business. Body language and movement are both areas that Chinese people pay attention to. The business partner should always be calm, collected and controlled. It is a sign of being self-controlled and worthy of respect. Humour is not appropriate when doing business because it comes too informal. They are humourless but rather jokes may be lost in translation and hence be redundant. Making appointments UK Usually meetings are normally arranged some days in advance. Punctuality is very important. If the business partner is going to be late, it is appreciated that he/she makes a phone call let them know. China Meetings must be made in advance. Punctuality is vital when doing business in China. Late arrivals are seen as an insult. Meetings begin with some brief small talk. For example what were the experiences so far in China. It is important for Chinese people that their foreign visitor is positive and avoids anything political. Giving gifts UK There are rules and customs on giving business gifts in the UK, some formal, some informal. There is a basic law to ensure gifts cannot be given to persuade somebody to do something outside their normal job. Many businesses have a code of conduct to help their employees understand the law, for example: Employees should not accept business gifts, except items of very small value such as business diaries or calendars. China The giving of gifts does not carry any negative connotations when doing…

    • 439 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    IDENTIFY ETHICAL AND CULTURAL ISSUES THAT ENTREPRENEURS FACE WHEN CREATING A NEW BUSINESS IN A FOREIGN COUNTRY…

    • 1373 Words
    • 6 Pages
    Best Essays
  • Better Essays

    Entry Into Foreign Market

    • 1726 Words
    • 7 Pages

    Doing business on your own soil is challenging in itself, let alone in a foreign market. Initially a firm is at a disadvantage due to the liability of foreignness (Peng, 2011). The differences in regulations, languages, cultures, norms, and currency can make simple business transactions very daunting. A firm must do intensive research when embarking on conducting business in the foreign market. They must conduct value chain analysis, external environment analysis and answer the question, “Do we have the capabilities to successfully manage business in a foreign country?” The best practice for a company contemplating expansion into a foreign market is to learn about the culture, norms, religious beliefs, currency exchange and their way of life. Most cases having a local citizen to mediate or teach the company about the culture provide an easier transition and aids in gaining the trust of the local people. Establishing trust or a working relationship with the local people is the first step in becoming successful in a foreign market.…

    • 1726 Words
    • 7 Pages
    Better Essays
  • Best Essays

    Leaders and organisations have the responsibility to create, nurture and maintain a certain organizational culture. Organisational culture refers to the common beliefs used by a certain group to govern perceptions, thoughts, actions and feelings of the group. Culture is simply the way things are done in or by an organisation. In most cases, organizational culture is influenced by the management. An organisational culture is based on past experiences and evolves with time, situations and actions of every employee and the leaders (Czinkota, Ronkainen, Moffett, Marinoca and Marinov, 2009).…

    • 3177 Words
    • 13 Pages
    Best Essays
  • Powerful Essays

    Through this feasibility study of the Czech Republic as a location for international expansion we have concluded that the need for expansion to continue to growth and prosperity is there, but this is not the proper location to start the campaign. In the continued search for expansion opportunities, the following key attributes must be met to establish manufacturing or marketing operations in a foreign country.…

    • 3638 Words
    • 15 Pages
    Powerful Essays
  • Best Essays

    Aldrich, (1999), Setting up Businesses in France and the USA: A Cross Cultural Analysis Original, European Management Journal, 22(4), 452-463…

    • 2470 Words
    • 10 Pages
    Best Essays
  • Good Essays

    Western Union Case Study

    • 743 Words
    • 3 Pages

    It is very important for businesses to be sensitive to the cultures and people of the concerned countries in which they operate. This is because each person's and each culture`s needs are…

    • 743 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Doing Business around the world is not as easy as it sounds. It’s not only about money or economic Aspects, but also cultural and social factors; and as the corporate world is becoming more and more interrelated and international, the importance of learning and understanding about different cultures and behaviors around the world is greater than ever.…

    • 3115 Words
    • 13 Pages
    Best Essays
  • Powerful Essays

    Effective use of cross cultural teams can provide a source of experience and innovative thinking to enhance the competitive position of organizations. However, cultural differences can interfere with the successful completion of projects in today’s multicultural global business community. To achieve project goals and avoid cultural misunderstandings, project managers should be culturally sensitive and promote…

    • 5819 Words
    • 24 Pages
    Powerful Essays
  • Good Essays

    The cultural environment is one of the critical components of the international business environment and one of the most difficult to understand. This is because the cultural environment is essentially unseen; it has been described as a shared, commonly held body of general beliefs and values that determine what is right for one group, according to Kluckhohn and Strodtbeck. National culture is described as the body of general beliefs and values that are shared by a nation. Beliefs and values are generally seen as formed by factors such as history, language, religion, geographic location, government, and education; thus firms begin a cultural analysis by seeking to understand these factors.…

    • 326 Words
    • 2 Pages
    Good Essays

Related Topics