Steve Kafka, franchise owner for Chicago Style Pizza, is considering the possibility of opening a new franchise in the Czech Republic, his family's home country. Although Steve has made several trips to the Czech Republic, speaks the language and knows many people, he must seriously consider all the opportunities and potential obstacles to this new venture. I will explore the cultural differences between the United States and the Czech Republic. Next, potential competitive advantages are examined along with Hofsteade's primary cultural dimensions to reveal clues about the culture relative to the new venture. Finally, trade barriers, prices, incomes and elasticities are discussed. Cultural Differences There are several cultural differences between the United States and the Czech Republic, although these differences are not insurmountable. Steve will need to understand some basic principles of business etiquette that are considered acceptable in the Czech Republic to be successful. For a business, word of mouth is the best way to gain new customers. If a major advertising campaign is attempted, it may be considered suspicious and could backfire if not associated with the local store's marketing (Czech Republic: Travel Information, 2008). As contacts with other local businesses are necessary to ensure the success of the new franchise, such as in the case of produce and beverages, appointments with these businesses should be made weeks in advance. Czechs prefer not to have last minute commitments. Many marketing techniques must be implemented in person rather than by mail, which is impersonal. Sending a letter could be considered rude and seen as a scam. As an employer, one must understand that the mother...... middle of paper ......w.geert-hofstede.com/hofstede_czech_republic.shtmlCzech Republic: country profile. (2008). Retrieved 2008 from Country Insight DatabaseCzech Republic: Travel Information. (2008). BuyUSA.com. Retrieved 2008 from http://www.buyusa.gov/czechrepublic/en/46.htmlGDP. (2008). Economic Analysis Bureau. Retrieved 2008 from http://www.bea.gov/national/xls/gdpchg.xlsHistorical Crude Oil Prices. (2007). InflationData.com. Retrieved 2008 from http://inflationdata.com/inflation/Inflation_Rate/Historical_Oil_Prices_Table.asp Hofman, I. (2008). Fast food market in Czech Republic. Retrieved 2008 from http://www.buyusa.gov/czechrepublic/en/90.htmlKay, N. (2008). Foreign direct investment in the Czech Republic. ECFIN Country Focus, 4 (2), 3.Publications: Information books. (2008). Defense Energy Support Center. Retrieved 2008 from http://www.desc.dla.mil/DCM/DCMPage.asp?PageID=721