The Cultural Challenges Of Doing Business Overseas

Introduction There are many challenges in doing business in the United States, and there are other issues when deciding to do business overseas. In this article I will explain the challenges Steve Kafka faces in doing business in the Czech Republic. According to the information given to me during the assignment, Steve Kafka is an American from the Czech Republic and is a Chicago style pizza franchise. Since he knew it was an adventurous decision he decided to expand his business to the Czech Republic.

It is beneficial and challenging to do business overseas. Companies may face legal, ethical and cultural challenges in global business. Every country has its own laws and regulations. To avoid conflicts of interest, companies need to understand standard compensation or minimum wage requirements. Ethical issues related to environmental protection, and relations with various countries (industry spies and hostile takeovers, etc). When a company operates internationally, most of it faces a big problem of cultural differences. Cross-cultural issues can arise when people within a company have different cultures, languages, religions, and beliefs.

Companies operating overseas face many challenges. Cultural issues are also one of them. As we have seen from experience, companies that tend to do more research, spend time and energy, study and understand cultural differences are more successful than companies that do not do homework. As an example, Mr. X hopes to expand pizza business from the United States to India. The difference between Indian and American cultures is a major obstacle that requires you to study Hofstede's cultural dimension model. Cost structure, eating habits, and trade barriers are important variables that require little research before establishing franchise rights.