Cultural challenges in modern societies

Cultural Challenges Faced by a U.S. Entrepreneur in the Czech Republic a) it can be easily noted that the United States of America could not be further from the Czech Republic. Both countries had shared their part of historical turmoil, but in different eras. While the Czech population is currently peaceful, the American state is tormented by the effects of terrorist attacks and its involvement in international wars (Associated Content, 2007). As a result, it could be quite difficult for the Czech population to embrace an American entrepreneur onto their territory, mostly when they consider him a potential target of a terrorist attack. To mediate this risk, Steve Kafka could emphasise on his Czech origins.

Another difference resides in that the Czech population perceives the American nation as lacking in culture. Without meaning any offence, they explain that the travelling experiences of the average American is limited to visiting one or more of the 50 states in U.S.; in doing this however, they fail to enhance their cultural perspectives. The Czech inhabitant on the other hand, is free to travel to all countries of the European Union, which reveal diverse landscapes and a multitude of cultures (Associated Content, 2007). This aspect would pose limited risks for the pizza entrepreneur.

Unlike the United States, the Czech Republic is still bearing the marks of its sad past - the communist occupation. In this system, little things are done according to the book and corruption still raises significant difficulties (Briffett, 2008). Steve Kafka could face major difficulties when applying to get permits or other licenses to open and run his business. If the situation actually materializes, he should address the American Embassy in Prague and ask for their support in being treated as a respected American citizen.

A b) a most important difference between the United States of America and the Czech Republic, this time materialized in a definite comparative advantage for the European country is the level of education possessed by the inhabitants. While the numbers of illiterate Americans continues to increase, this number is decreasing steadily within the Czech Republic. Foremost, used to change in economic and political regimes, the people are quite adaptive and open to innovation. "In light of ever-shorter production cycles and the growing importance of innovation, it should be emphasized that the Czech Republic has a unique position for expanding its design and investment functions. Its population has a deeply rooted spirit of innovation and an exceptionally high number of graduates" (Official Website of the Czech Republic, 2008).

The higher education of the Czech population and their spirit open the elements of novelty can easily be used to the benefit of the American entrepreneur. In this order of ideas, it would be easy for him to recruit and hire only the best candidates, with proper expertise in the restaurants industry and with sufficient business education. These employees would ensure Steve Kafka of the success of his operations.

Directly deriving from the levels of education it can be observed that while in the U.S., the number of engineers is declining, in the Czech Republic, it is increasing. Steve Kafka has limited possibilities to benefit from this comparative advantage, but a particular application would be that of hiring an it specialist to develop a personal website for the Czech pizza place.

A c) Hofstede's primary dimensions have been identified as a means of helping international entrepreneurs become acknowledged with the features of the foreign market in which they will come to operate. The author, professor at the University of Maastricht, says that the importance of conducting a study to identify the features of the new market is impending for any foreign entrepreneur and that the analysis can be successfully realized with the aid of his five dimensions: Power Distance Index (PDI), Individualism (IDV), Masculinity (MAS), Uncertainty Avoidance Index (UAI) and Long-Term Orientation (LTO). "Geert Hofstede's research gives us insights into other cultures so that we can be more effective when interacting with people in other countries. If understood and applied properly, this information should reduce your level of frustration, anxiety, and concern. But most important, Geert Hofstede will give you the 'edge of understanding' which translates to more successful results" (Geert Hofstede's Website, 2003).

If Steven Kafka conducted an analysis of the Czech market through the lens of cultural features, there is an increased likelihood for the results to indicate major discrepancies. This should not however disappoint him, as different does not implicitly mean worse.

A d) in its desire to adhere to the great economic powers of the globe, driven by its sense of innovation and its adaptability to the forces in the macro and micro environments, the Czech Republic has managed to remove most of its trade barriers. These measures were due mostly to its adherence to the European Union and other international trade organizations. "The Czech market has no trade barriers to food and agricultural product imports, except for the usual import duties and tariff rate quotas permitted under the GATT/WTO agreement. The selection of products is sometimes greater than in many neighboring Western countries" (Fennesz-Berka, 1996). Since Steve Kafka would operate in the restaurants industry, his imports would not be subjected to taxes.