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 strict order (soup, main course, salad, dessert) and many combinations of foods are not common or downright repulsive to a Czech person. For example, rice and fried chicken or beer and a pancake. These issues need to be addressed first before opening this kind of food establishment in this culture.

. 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 the U.S. the American uses the fork in the same hand that write with (Culture Grams, 2006).

The Czech calendar starts the week with Monday. The work-week ends in a weekend. Friday afternoon is a bad time to try to get anything done. Traditionally, weekend shopping is done on Friday afternoon and Saturday morning so the shops are crowded. Many Czechs leave the city to spend the weekend at their summer house or cottage called chata or chalupa. Gardening is a common pass time and many families grow most of their vegetables. Even city dwellers may have a small garden on the edge of town (Author Unknown, 2006).

Due of these differences, Steve must find a way to attract the Czech people to the fast food restaurant. Also he should consider having the delivery and carry out systems as most Czech people do not dine outside. He should also consider having pizzas in small sizes as pizza is a snack item and will be eaten in less quantity. Another important aspect is that, in Czech cuisine, pork is the favored meat. So to attract customers, he can introduce pizzas with pork toppings and in addition to keeping the trademark Chicago style pizza; he can customize some of the recipes as per the taste of the Czech people. The difference in cuisine and taste can be viewed as an opportunity and the potential if tapped fully can be used to grow business. The lifestyles, work hours and holiday schedules are also different in the two countries. Respect for these aspects of Czech culture is important to nurture business relationships and ensure that individuals are not offended.

Evaluation of Czech Business Culture with Hofstede's Four Primary Dimensions

Culture is acquired knowledge that people use to interpret experience and generate social behavior. This knowledge forms values, creates attitudes, and influences behavior. Because people and their respective cultures are so diverse, when dealing with individuals of a culture that is different to that which one may be accustomed, one must be aware of and attempt to understand the cultures of the individuals with whom they associate. Although Steve's origin is Czech, he was born and raised as an American, and he may not necessarily know what differences exist between the two cultures. Steve's values, customs and his way of doing business were instilled in him in the American culture; therefore, he must remain open-minded and pay attention to the Czech actions (as well as his own), as culture affects how people think and behave.

Hofstede's massive study continues to be a focal point for additional research. The four now-well-known dimensions that Hofstede examined were (a) power distance, (b) uncertainty avoidance, (c) individualism, and (d) masculinity (Hodgetts & Luthans, 2006). Dutch researcher Geert Hofstede found these four dimensions of culture that help to explain how and why people from various cultures behave as they do.

Power distance is the extent to which less powerful members of institutions and organizations accept that power is distributed unequally. Countries in which people blindly obey the orders of their superiors have high power distance. In many societies, lower-level employees tend to follow orders as a matter of procedure. ). Czech Republic is a low power distance country according to Hofstede's culture scale. The organizations in Czech will therefore have lesser supervisory control and lower strata of the workforce will usually consist of highly qualified people. The Czech society values education highly. They have well educated and skilled labor force. This will enable Steve to employ dedicated and hardworking individuals and much supervision is not required.

Uncertainty avoidance is the extent to which people feel threatened by ambiguous situations, and have created beliefs and institutions that try to avoid these (Hodgetts & Luthans, 2006). Countries populated with people who do not like uncertainty tend to have a high need for security and a strong belief in experts and their knowledge. Hofstede's culture scale which indicates that it is a high uncertainty avoidance country (Geert Hofsted, Cultural Dimensions). This means that Steve should tread carefully while expanding his pizza business. He should not introduce a great deal of changes all at once as people are resilient to change

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