A major challenge in doing business internationally is adapting effectively to different cultures. Steve Kafka, an American of Czech origin and franchiser of Chicago Style Pizza, has decided to expand his business in the Czech Republic. This is a risky decision and Steve anticipates that he will encounter obstacles when setting up the new pizzeria at this new location in Prague. In international management, culture is learned knowledge that people use to interpret their experiences and generate social behaviors. This knowledge shapes values, creates attitudes and influences behavior. Because there are different cultures around the world, understanding the impact of culture on behavior is essential in international management. There are many ways to examine cultural differences and their impact on international management. Culture can affect technology transfer, managerial attitude, managerial ideology, and even business-government relations. Culture affects a multitude of business-related activities, including the simple handshake. For example, in the United States, the standard greeting is a smile, often accompanied by a nod, a wave, and may sometimes include a verbal greeting. In professional situations, a firm handshake is used. Weak handshakes are viewed as negatively as weakness. Men generally wait for women to offer their hand before shaking it. As in the Czech Republic, shake hands, firmly but briefly, with everyone (including children) during the introduction. It is also customary to shake hands again when leaving. Men should wait to see if women reach out during intergender meetings. Also avoid keeping your left hand in your pocket while shaking your right hand. In the Czech Republic, politics and such are complicated...... middle of paper ...... even though the average salary is estimated at $748.00 per month; the study reveals that the purchasing power of local customers is increasing. The purchasing behavior of a typical household is shown below: Czech household expenditures in 2004 FOOD RESTAURANT HOTEL LEISURE TRANSPORT AND COMMUNICATION HOUSEHOLD EQUIPMENT RENTAL/ENERGY CLOTHING 24% 5% 11% 15% 7% 20% 6% OTHER : 12% References Cohen, B. (2001). Strategic franchise. Kellogg School of Management: course catalogCzech Franchise Association. (2004a). Franchise in the Czech Republic 2003. Prague: AuthorHodgetts, Richard, Luthans, Fred (2005). International management: culture, strategy and behavior. 6th editionwww.itim.comwww.countrywatch.com.ezproxy.apollolibrary.comwww.hertigae.orgwww.economist.comonline.culturegrams.caom.ezproxy.apollolibrary.com