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Steve Kafka has decided to expand his Chicago Style Pizza business into the Czech Republic as an American of Czech origin he feels he has several contacts such as friend and family he can utilize for assistance as he starts his business. Steve understands the risks in his decision as he has faced similar issue while beginning his franchise in the United States. He was forced to overcome many difficulties and he anticipates many of these same difficulties will arise as he open a new location in Prague, Czech Republic. Steve was born in the United States, but he speaks Czech fluently and has had the opportunity to visit the Czech several times and is confident in his knowledge of the people and the culture.

There are several major differences between the United States and the Czech cultures. One of the cultural differences includes the formality regarding dining in the Czech Republic. Typically dining in Czech Republic consists of a formal setting in contrast to the United States' informality in regarding to dining and socializing. This could be considered a barrier for beginning a pizza style restaurant. The Czech Republic considers hotdogs and pizza as popular "snack foods" to be purchased from sidewalk vendors. In thinking of Chicago style pizza it isn't something which is consumed on the go, it is a sit down style but informal restaurant. Even though pizza is a popular food item, it may be difficult to sell the idea of a pizza restaurant but this could also be considered a new novelty idea. Another important detail would be establishing the knowledge of Chicago style pizza. This could be considered barrier as the public may not understand popularity the United States has placed on Chicago style pizza (Culture Grams)

Each of the risks listed above came be overcome by developing the knowledge the public has of the product. The fact the idea is out of norm from the typical restaurant style in the Czech Republic could create interest and become a novelty to the public. The differences between the culturally standard restaurants in the Czech Republic and the United States franchise will set the pizza restaurant apart from the competition.

In the restaurant business, Steve will have a comparative advantage at producing pizza if he can produce it at lower cost than anyone else. With the other standard formal restaurants as the competition it will be easy for his business to be seen as the less expensive choice. In comparison to the street vendors Steve may be higher priced but he is also providing a formal dining setting in regards to available indoor seating.

Steve may have difficulty in reaching low prices as many of the products purchased through the franchise would typically come from the United States. He may have to purchase items locally to reduce the costs and this could also promote sales through the use of advertising items being purchased and produced locally.

c. Will Hofstede's four primary dimensions help Steve evaluate the Czech business environment? What are the likely results of this evaluation?

Hofstede's