Cultural Challenges Of Doing Business Overseas

Cultural Challenges of Doing Business Overseas

Culture (from the Latin cultura stemming from colere, meaning "to cultivate,") generally refers to patterns of human activity and the symbolic structures that give such activity significant importance. Different definitions of "culture" reflect different theoretical bases for understanding, or criteria for evaluating, human activity. Culture has been called the way of life for an entire society. As such, it includes codes of manners, dress, language, religion, rituals, norms of behavior such as law and morality, and systems of belief (Wikipedia). Steve Kafka is an American of the Czech origin. Steve has plans of expanding his Chicago Style Pizza into Czech Republic. Steve thinks he knows the people and the culture because he has friends and family who reside in Czech and he also speak the language, which is Slavic. This paper will discuss the Czech culture and the challenges Steve may or may not face while doing business overseas.

Differences between U.S. and Czech cultures

There are differences in cultures that exist between Czech and the U.S. but they are also similar in certain culture values. The differences are avoidable so that a business can succeed. For instance, both in the U.S. and Czech, to show respect, one address adults by their profession or their last names. When it comes to gesture, both countries believe in maintaining eye contact while conversing. They may also look at or even stare at other people in public, but usually with no ill intentions. People often gesture with their hands to emphasize their meaning in conversation. They beckon and point with their index finger. In Czech, when one counts on the fingers, the thumb (not index finger) is number one; however, in the U.S., when one counts on the fingers, the index finger is number one. Speaking loudly on public transportation or in quiet places is impolite; however, it is commonplace in places like pubs. Czechs value education, cleverness, social standing, modesty, and humor. Czech humor is dry and ironic rather than slapstick, and jokes and parables are commonly used in conversation. Moravians and Slovaks are thought to be more lighthearted and jovial than other Czechs. Americans tend to be frank and outspoken. In general, they appreciate people who are candid. People voice their opinions and share their views on a variety of subjects; there are few subjects they will not discuss. Of course, there are exceptions, and religious values may keep some from discussing certain issues. Those who are not close friends avoid extremely personal questions. Americans value innovation, industry, and integrity. They enjoy a good sense of humor, including sarcasm. Most people have the ability to laugh at themselves as well as at others. Even though Americans may criticize the government, most are patriotic and believe the United States is one of the greatest countries in the world. For Americans, eating styles and habits vary among people of different backgrounds, but Americans generally eat with a fork in the hand with which they write. They use a knife for cutting and spreading, setting it down as they begin to eat. When a knife is used for cutting, the fork is switched to the other hand. People eat foods such as french fries, fried chicken, hamburgers, pizza, and tacos with the hands. They generally place napkins in the lap. Resting elbows on the table is often considered as impolite. After-dinner refreshments such as dessert or coffee are frequently served away from the dining table. Guests are expected to stay a while after the meal to visit with the hosts. In restaurants, the bill usually does not include a service charge; leaving a tip of 15 percent is customary. For Americans, greetings someone with a firm handshake or a smile is acceptable; however, Czechs use caution and require personal space.

Both cultures eat three meals a day including snacks. Czech main courses mainly consist of potatoe soups, garlic soups, chicken noodle and beef soup, sauerkraut and dumplings. Other courses consist of meats such as, beef and chicken. Seafood is not very popular for them except in exclusive restaurants. Hotdogs and pizza are popular snack foods that can be purchased from sidewalk vendors. Since Steve’s Franchise is Chicago’s Pizza, he may have to consider serving other foods, such as hotdogs. He may also have to consider changing his pizza toppings to beef and chicken, which is popular with Czechs. As far as advancing in the culture, Steve should not have any problems. But since Czechs are known for not spending much time eating out in restaurants, Steve may face problems with a dine in and should consider outside dining and take-out options for customers (CultureGrams, 2007).

Comparative advantages in the Czech Republic

Steve has a few advantages, he speaks the language, he has family in the Czech Republic, and he knows the people and the culture. Steve can easily use these advantages to help his business. By having someone of the Czech Republic greet the people at the door would be more welcoming for the citizens when dining in an establishment owned by an American. Family and friends can also assist him in advertising and giving him tips on advertising and what the people of this culture want. Since Steve speaks fluent Czech, he should not have a problem with communication. Steve seem to be very familiar with Czech and should not appear to them as a tourist trying to make a quick dollar off of their economy.

Hofstede’s primary dimensions

Geert Hofestede offers insight into other cultures to improve effective communication between foreigners and locals and increase the level of comfort. Hofstede mentions five cultural dimensions. The first dimension is the power distance index. The power distance index is the extent to which the less powerful members of organizations and institutions except and accept that power is distributed unequally. Individualism is the second dimension, on the one side versus its opposite, collectivism, individuals are inte-grated into groups to that degree. On the individualist side we find societies in which the ties between individuals are loose: