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Mba 501- Forces Influencing Business In The 21st Century

Submitted by qanam on April 14, 2008

Category: Technology
Words: 1838 | Pages: 8
Views: 276
Popularity Rank: 35,795
Average Member Grade: N/A (Add a Comment / Grade this Paper)

The purpose of this document is to present solutions and recommendations for Steve Kafka, an American of Czech origin and a franchisor for Chicago Style Pizza, who has decided to expand his business into the Czech Republic. This document focuses on the major differences and incompatibilities between the U.S. and Czech cultures. The script also shed lights on the business risks and mitigation on Czech culture. The paper also talks about the comparative advantages that exist in the Czech Republic and Hofstedes four primary dimensions for Steve to evaluate the Czech business environment. The document also points out of any trade barriers that Steve needs to be aware of. Finally the document focuses on how Steve would assess the demand for pizza at different prices, cost structure, infer about the price and income elasticity of pizza.
The culture between United States of America and Czech Republic are different. These two cultures present challenges, incompatibility in languages, society and cultural values and customs. Czech Republic is located in central Europe with 95% population speak Czech. However, the rest of the population speaks other languages such as, German, Hungarian, Romani and Polish. English language is not widely used in the country. Therefore, the obvious difference is the language that is being spoken between the two countries. The Czech society and culture is quite remarkably different than US. Unlike US, the family in Czech culture is the center of the social structure. Obligation and responsibility towards family is a first priority for a person. However, like US, the people of the Czech culture like to plan carefully both in one’s business and personal life. They, however, are very formal and reserved type of people. “One of the most underlying and inherent features of the Czech culture is their polite and humble approach to life. Czechs are both formal and indirect in their communication” (Communicaid, 2005, ¶2). In most...

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