The Cultural Challenges of Doing Business Overseas

In: Business and Management

Submitted By sansooblk
Words 1110
Pages 5
The Cultural Challenges of Doing Business Overseas
EC0/561
8/2/2014
Dr. Sharghi

The Cultural Challenges of Doing Business Overseas
This paper will provide an analysis of Steve Kafka’s decision to open and operate a Chicago-style pizza business in the Czech Republic (University of Phoenix, 2011). This analysis will include information on the cultural differences between the United States and the Czech Republic and how these differences may affect the business climate. This paper will also review potential risks in doing business overseas and what Kafka may be able to do to mitigate these risks. In addition, trade barriers and price structures will also be discussed.
Background
Kafka is an American of Czech heritage, speaks fluent Czech, and has traveled to the Czech Republic on many occasions, thus giving him confidence in his understanding of the business environment and economy opportunities (University of Phoenix, 2011). Kafka also has many friends and family members living in the Czech Republic which also give him the ability to better learn about cultural differences and standard customs. The Czech Republic is a member of the European Union, NATO, the World Trade Organization, the European Bank for Reconstruction, and the International Monetary Fund, and the International Bank for Reconstruction (Doing Business, 2011). The monetary unit used is the Czech crown rather than the Euro and credit cards are commonly accepted, including the Maetro, Visa, Euro Mastercard, and the American Express card (Doing Business, 2011). Prague, the capital city where Kafka has decided to open his pizza business, has more than one million residents and receives approximately four million visitors each year. The fact that the city is such a large tourist destination is significant as 80% of the visitors are foreign and are more than likely…...

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