Czech business culture guide - Learn about the Czech Republic

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Last updated: 27.09.2013

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TABLE OF CONTENTS

Business Culture in the Czech Republic .................................................................................... 4

Xenophobia: being a foreigner in Czech Republic ............................................................................... 5

International business in Czech Republic ............................................................................................. 5

General educations ................................................................................................................................ 6

Education standards .............................................................................................................................. 7

Cultural taboos ...................................................................................................................................... 7

Business Communications in the Czech Republic ..................................................................... 8

Face – to – face communication ........................................................................................................... 8

Language matters .................................................................................................................................. 8

Business relationship ............................................................................................................................. 9

Making Contact .................................................................................................................................... 9

Personal titles ......................................................................................................................................... 9

Business Etiquette .................................................................................................................. 11

Corporate social responsibility ............................................................................................................ 11

Punctuality .......................................................................................................................................... 12

Gift giving ............................................................................................................................................ 12

Business dress code .............................................................................................................................. 12

Bribery and corruption ........................................................................................................................ 12

Business Meeting Etiquette .................................................................................................... 14

Importance of business meetings ......................................................................................................... 14

Business meeting planning .................................................................................................................. 14

Negotiation process ............................................................................................................................. 15

Meeting protocol ................................................................................................................................. 16

How to run a business meeting ........................................................................................................... 16

Follow up letter after meeting with client ............................................................................................ 17

Business meals ..................................................................................................................................... 17

Business meeting tips ........................................................................................................................... 18

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Internship and placement ....................................................................................................... 19

Work experience ................................................................................................................................. 19

Internship and placement advice ........................................................................................................ 19

Social security and European health insurance card .......................................................................... 19

Safety ................................................................................................................................................... 20

Do l need a visa? .................................................................................................................................. 20

Internship and placement salary ......................................................................................................... 20

Internship and placement accommodation ........................................................................................ 20

Cost of Living ........................................................................................................................... 22

Money and banking ............................................................................................................................ 22

Travelling costs .................................................................................................................................... 22

Work-‐life Balance .................................................................................................................... 23

National holidays ................................................................................................................................. 23

Working hours ..................................................................................................................................... 23

Work culture ....................................................................................................................................... 24

Health insurance ................................................................................................................................. 24

Social Media Guide ................................................................................................................. 25

SMEs ................................................................................................................................................... 25

Search and Social Media Marketing for International Business ......................................................... 26

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Business Culture in the Czech Republic

The following is a very short introduction to Czech Republic. External links at the end of this page provide you with more in depth information concerning different topics.

The following video gives you an overview of the general facts:

(http://www.youtube.com/watch?v=y9IVr_n1o8Q)

The Czech Republic is a landlocked country in Central Europe, which was formed on the 1st of

January 1993, when Czechoslovakia peacefully dissolved into its constituent states, the Czech

Republic and the Slovak Republic. The country is bordered by Poland to the north, Germany to the

west, Austria to the south and Slovakia to the east and has an area of 78,886 km2. The population

of the Czech Republic is 10,512,782 people, as of the 31st March 2013. Prague is the capital and

largest city with 1.3 million inhabitants, followed by Brno with 366,757 inhabitants and then

Ostrava with 310,078 inhabitants.

The Czech Republic is the first former member of the Council for Mutual Economic Assistance

(Comecon) to achieve the status of a developed country, according to the World Bank. In addition,

the country has achieved the highest human development rating in Central and Eastern Europe,

ranking as a “Very High Human Development” nation. It is also ranked as the third most peaceful

country in Europe, most democratic and healthy, in terms of infant mortality(see Democracy Index

and List of countries by infant mortality rate.

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The Czech Republic has a low birth rate of 9.6 per 1,000 inhabitants, while the death rate is higher

at 10.5 per 1,000 inhabitants (2004). This means more people are dying than are being born.

According to the Czech Statistical Office, the age of the population is distributed as follows: 14.8%

are 14 years old or younger, 68.7% are between the ages of 15 to 64 and 16.5% are 65 years or

older. The main ethnic groups are Czechs at 94%, followed by Slovaks at 2% and the remaining

population at (including Poles, Germans and Roma).

The rate of unemployment in the Czech Republic is 8.3%, as of August 2012 and the economy has

grown at an average rate of 0.51% since 1996. Since 1990, the Czech Republic has attracted

around 10% of Central and Eastern Europe (CEE) inflows of foreign direct investment (FDI),

making it the most successful transition country in terms of FDI per capita.

The official language of the Czech Republic is Czech and its official currency is the Czech Crown

(CZK). The Czech Republic is in the Central European Time Zone and adheres to CET (UTC +1)

during the winter and CEST (UTC +2) during the summer.

The Czech Republic is a parliamentary republic and a member of the European Union, NATO, the

OECD, the OSCE, the Council of Europe and the Visegrád Group.

The Czech Republic lies in a temperate climate zone, which is characterized by mild, humid

summers with occasional hot spells, and cold, cloudy, humid winters with occasional arctic spells.

The winter months are very cold at between 0° and -5°C and temperatures can drop as low as -

30°C in extreme conditions. Summer temperatures average somewhere between 25°C to 35°C and

can reach 40°C in the extreme.

Xenophobia: being a foreigner in Czech Republic

The Czech attitude to foreigners in business is that of mutual respect, they respond well when they

see that they can learn from foreign business associates. However, they may be quite

unresponsive if they are not approached by individuals of equivalent status or expertise. The

historical appreciation for anything foreign is no longer the case and products and services are

evaluated on their own merits. Czechs have the utmost respect for expatriates working in the

Czech Republic, but now this respect is more for the individual’s skills and knowledge, rather than

just because they are foreign.

International business in Czech Republic

When you visit another country on business, you expect some differences in how business is

conducted. However, you do not always have sufficient time to learn these differences through

personal experience. Sometimes, you will find yourself in a meeting only a few hours after your

arrival, where your lack of local knowledge leads you to make basic cultural mistakes, which can

have serious repercussions on your efforts.

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This section is intended to equip you with the basic ‘ground rules’ for doing business in the Czech

Republic to ensure that you are sufficiently able to deal with most of the business situations that

you may encounter.

General educations

It is useful for you to be aware of the educational and linguistic competencies of your business

partners to help you prepare for your meetings and negotiations. Can you expect to find people

who will speak your language or should you bring an interpreter? What is the general level of

computer literacy?

The Czech Republic has a high level of basic education and a long standing tradition in engineering

and manufacturing excellence. Czech Universities have a good reputation in the European higher

education community with most Czech managers being well-educated and having university

degrees and possibly postgraduate degrees in Management, Engineering or the Sciences. Younger

managers are now even travelling to Western Europe or to the USA for their Masters’ degree and

for further practical experience at the professional level.

Basic education at nursery and primary school level are free of charge and mandatory for every

child born in the Czech Republic. The first step of schooling starts with nursery school (Materska

škola), every child has the right to attend a nursery school from the age of 3 to 6, although places

are sometimes limited and parents have to find a way to get their kids in or place them in a private

nursery school at their own expense.

Primary school starts at the age of 6 or 7, depending on the child’s ability, and is divided into two

stages. The first stage of primary education takes 4 years and then the parents have to decide

whether the child continues to the fifth year in the same school or changes to a different school.

The reason for the change is that there are two types of schools at this level; comprehensive

schools (Gymnasium) and vocational schools (technical). The comprehensive school is further

divided into several specializations such as language, mathematics and science; vocational schools

are divided according to trade. A higher percentage of students that attend a comprehensive school

go on to university than those attending vocational schools.

Most students finish their secondary education around the age of 18 or 19. After graduation the

students going to university continue with their education while the other group joins the

workforce.

University education takes a minimum of 4 years for an undergraduate degree, depending on the

subject matter and 5 years for a specialist engineering degree, which is accredited at the same

level as a postgraduate qualification. Czech Universities have a solid reputation in terms of

European education standards. Many local managers even after their acquiring their engineering

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degree (Ing.) will go on to study for a postgraduate degree, either locally, in Western Europe or at

an American university.

Education standards

Education is the fundamental right of every citizen in the Czech Republic and every child is

mandatory to go to school from pre-school till they are 18years. The standard of education in the

Czech Republic is quite high and the university standard is also quite high.

Cultural taboos

In the Czech Republic, it is important to avoid mixing business with pleasure. Specifically, you

should avoid asking questions about intimate personal subjects, such as your host’s personal age,

health or finances. Czechs don’t like to flaunt their riches, so asking about where and how they live

might also be inappropriate. Always pay attention to matters of social etiquette, wait to be invited

to call someone by their first name and behave with common courtesy, especially when dealing

with a woman. Czechs might sometimes overstep the acceptable level of making jokes during

business meetings. However, some good topics of discussion are generally politics, the economy

and important sporting events.

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Business Communications in the Czech Republic

Communication is perhaps the most important aspect of doing business, yet we tend to take it for

granted in our own country, because we are dealing with people from our own culture.

This section is divided into three areas: communication, working practice, and dining out. It

explains the differences between face-to-face communication, and dealing with people via the

telephone or by letter/fax etc. How important is it to address people by their correct title? How

should you introduce yourself? Should you always give your business card at the beginning of the

meeting? How important is it to get things agreed in writing?

We think that this covers most business situations. By reading this section, you should be

sufficiently well equipped with the basic ‘ground rules’ for doing business in the Czech Republic.

Face – to – face communication

Czechs are not talkative by nature, tending to be indirect and cautious in their approach, to the

point where it is necessary to read between the lines. This does not mean that the Czechs are

trying to hide something, but that they are just not used to speaking their mind to a total stranger.

In the case of non-verbal communications, Czechs are known for their cool heads and reserved

attitude. Communicating with their hands or wild gesticulation is not typical of Czech behaviour.

Be aware that maintaining eye contact is an important part of communicating your intentions in a

business meeting; it shows your level of interest in the discussion and that you are listening. On

the other hand, not making eye contact could be interpreted as deceptive behaviour and lack of

interest.

In the Czech business community, most members maintain a strict division between their work

lives and their personal lives, which means they do not socialize with each other after working

hours. This is a legacy of the political climate during communism and the situation is changing,

with the younger generation adopting a more open approach to business.

Language matters

Many of the people in management positions in the Czech Republic are multilingual. Most speak

English, Russian and/or German. On average, people above the age of 50 can speak a little bit of

German, Russian and English whereas the younger generation mainly speak English, although

French and German are also popular. University graduates will tend to speak more foreign

languages than the general population.

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Most of the younger managers speak English fluently, which should negate the need for an

interpreter. The foreign business partner should always confirm before a meeting if an interpreter

is needed. It advisable that you learn a few greeting phrases to break the ice at the beginning of

the meeting.

Czech society is characteristically very formal and it takes time to develop a personal relationship.

Too much familiarity is not welcome at the beginning of a business partnership. However, the level

of formality lessens as the relationship develops towards a friendship based on trust.

The Czech language differentiates between the singular and plural forms of address, and the plural

pronoun is also used as a polite means of addressing someone that you do not know and showing

respect to someone you do not yet have a personal relationship with. Czechs appreciate when a

foreigner makes an attempt communicate in th Czech language, but it is important to use the

correct forms of address and not to call someone by their first name or singular pronoun until

invited to do so.

Business relationship

Czech small and medium sized enterprises welcome every opportunity to do business with foreign

partners. For the majority of SMEs, it is assumed that a written agreement has priority over a

verbal agreement. As it is always difficult to substantiate and refer to a verbal agreement, written

agreements are always recommended.

Making Contact

You can also meet representatives of Czech companies in seminars and conferences abroad.

Foreign partners are advised to make their first contact in written form, preferably by email.

Communications should be addressed directly to a specific person who is able to make a quick

decision, i.e. the Managing Director. If, after the first contact, it is discovered that the Czech

manager speaks English, then the best and fastest way to make a more direct contact is to arrange

a face-to-face meeting. Czechs prefer to have one-to-one negotiation.

Personal titles

Czech companies are still very hierarchical, which is why there is still a strong tendency to address

the individual by their job title. In conversation with local business partners you should always

address them by their job title first, or their academic title if that is not possible. Therefore

individuals might be addressed as Mr. Engineer, Mr. Magister, or Mr. Doctor, pronounced docent.

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For example, if the name of the general manager of the company is Prof. Ing. Jaroslav Novák,

DrSc., he should be addressed as ”Mr. General Manager“ rather than “Mr. Professor“. The use of

academic titles in the business environment, for example professor (Prof.), docent (Doc.), doctor of

science (DrSc.), raises the level of respect for the individual (especially within the older

generation).

In small and medium sized companies they do not put too much emphasis on positional titles, they

prefer to use academic titles. Moreover older managers are used to calling each other with their

titles, but the younger generation prefer to be addressed by their surname. In a business meeting

held in English, both Czech and foreign partners will follow the English norm, i.e. Mr. Novak for

men or Mrs. Nováková for woman and Ms. for a younger woman. In the Czech language, the

surname for man and woman varies according to grammatical rules. For women you would add

“ová” or “á” to the end of the name i.e. Mr. Novák becomes Mrs. or Ms. Nováková and Mr. Kyselý

becomes Mrs. or Ms. Kyselá. This naming convention is the thing that confuses most foreigners

when they are communicating with their Czech partners, because it does not translate into an

English way of thinking. In the Czech language, the postpositions of ová or á are used only for

surnames when addressing women.

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Business Etiquette

Business etiquette focuses on the behaviour deemed appropriate in a professional setting and you’ll

be more likely to make an excellent impression on people you encounter if you maintain a

professional approach.

Attitudes and values are the foundations that drive behaviour and that gives us clues to people‘s

thought patterns and what they consider important. Understanding these little details could be the

difference between a successful business partnership and a failure. Basic tips to follow when doing

business in the Czech Republic

• Greetings should include a firm handshake and direct eye contact, a weak handshake means that you are weak and

no direct eye contact can be taken to mean that you are hiding something.

• Remain standing until you are invited to sit down as there might be a seat reserved specifically for you.

• Business appointments are mandatory and should be made in advance.

• Punctuality for meetings is taken extremely seriously.

• Business is hierarchical with decision-making power held at the top of the company.

• Initial meetings are scheduled as introductions to get to know each other and to build trust with your Czech

associates. The first meeting may be with a middle manager, rather than the actual decision maker. Expect some

small talk and getting-to-know-you conversation before business is discussed.

• Do not try to schedule meetings on Friday afternoon, as many Czechs leave for their country cottages after lunch,

or during August, when many businesses are closed.

• Czechs are non-confrontational and often take an indirect approach to business dealings. In negotiation, Czechs

generally offer what they expect to get and do not often give counter-offers.

• Business is conducted slowly. You will have to be patient and not appear ruffled by the strict adherence to

protocol.

• Maintain direct eye contact while speaking.

• Do not remove your suit jacket unless the highest-ranking Czech does so first.

• Presentations should be simple, accurate and detailed and, if necessary, you should have charts and figures to back

up your claims.

• Letters should be addressed to the company rather than to a specific person. This prevents a letter from being held

up, if the person it is addressed to is away from the office.

• Gifts are usually opened immediately after they have been received.

• When dining, always refuse second helpings the first time they are offered. Wait for your host or hostess to insist

and then accept graciously.

Corporate social responsibility

Corporate social responsibility (CSR) is a concept whereby companies integrate social and

environmental concerns into their business operations and their interaction with stakeholders

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including employees, consumers, shareholders, investors, public authorities, non-governmental

organizations and their suppliers, on a voluntary basis.

Punctuality

Punctuality is important because arriving late for a business meeting does not paint a good picture

of you. Czech business society is becoming more tolerant, but only to a certain extent; 15 minutes

is an acceptable delay, but we recommend being prompt.

Gift giving

Most business people do not expect presents at the first meeting, but small gifts such as a souvenir

of the visiting business partner’s country are acceptable. Equivalents from the Czech Republic

would be Becherovka herbal liqueur, Czech crystal, bijouterie, hand painted Christmas decorations,

wooden toys and beer.

Expensive presents are not recommended and most companies have a ceiling on the value of gifts

that can be accepted. If the value of a gift is higher than the ceiling, it must be reported to senior

management or rejected.

If you are invited to your host’s home for dinner and wish to make a gift of flowers, you should

avoid giving calla lilies, because they are associated with funerals.

Business dress code

In the Czech business community your appearance is important. Therefore, you should choose

conservative business attire and avoid bright colours when attending a business meeting, if you

want to be taken seriously. Cleanliness and tidiness are a must. During normal office hours, the

dress code can be less formal (shirt, trousers and jacket). For men, a dark coloured suit or jacket

and trousers with tie is appropriate business wear, and women should wear something similarly

formal and avoid anything that might be deemed provocative. Female managers prefer to wear

suits. There is a saying that the way you dress shows your respect for your business partner.

Large organisations set a dress code for their employees. In small and medium-sized companies,

there are no dress codes (unless employees have to wear uniforms). So, people tend to wear

business casual attire, unless they are expected to attend an important meeting.

Bribery and corruption

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Bribery and corruption is not acceptable but it is still prevalent in the global business environment.

Both Czech and foreign business people use bribery as a tool to secure business contracts or to cut

through bureaucratic red tape, when trying to get government contracts or even start a new

business. Such bribery is publicly denied by both business and the government, even though it is

widely used.

The Czech Republic is 54th in the Transparency International Corruption Perceptions Index (2012)

with a score of 49, which charts the level of corruption in 176 countries throughout the world.

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Business Meeting Etiquette

The safest practice when attending meetings in another country is to ‘act local’. Then you can be

confident that your meetings will be successful and your hosts will appreciate your cultural

sensitivity.

There are a number of things you need to consider:

• What are the local attitudes to business meetings?

• How should you go about organising a meeting?

• How do you greet people at meetings?

• How should you run a meeting?

• What do you need to think about when conducting negotiations?

• What should you do after a meeting?

Importance of business meetings

In general, the first meeting with a Czech company is characterized by a high level of formality and

politeness. Any decisions will depend on who is attending the meeting from the Czech side. If the

owner or general manager of the company is present at the first meeting, then you can expect a

quick response to whether a business arrangement is of interest; but if the company‘s

representative is a departmental head or a subordinate, then they will have to brief the owner

before a decision can be made. Once a verbal agreement has been reached, Czech companies

prefer to have agreements written up under the direction of their lawyers. A lawyer’s involvement

depends on the stage of cooperation, but verbal commitments are not regarded as legally binding,

so it is important to have a general agreement drawn up in writing, even if it is not very detailed.

Business meeting planning • It is recommended to offer options for the dates and time of the meeting and give an indication of what will be

discussed, which will give the participants the opportunity to plan and prepare for the meeting.

• Make sure you get a confirmation of attendance from all the attendees prior to the meeting.

• Set out the agenda of the meeting

• Organize the meeting room and equipment (if needed) and seating arrangement

• Arrange translator, if required.

• Refreshment and drinks should also be arranged, depending on how long the meeting is scheduled for

• Don‘t forget to produce copies of any documentation required for the meeting in the language of your business

partner.

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Taking account of variable working hours, the best time for making contact or for having a

business meeting is from 9am to 11.30am and from 12.30pm to 2pm.

The host is in charge of organizing the meeting and has to create the best conditions for the

smooth running of the meeting. During the first meeting, it is normal to start by introducing both

companies and the initiating party will outline the goal for the meeting, lead the discussion of the

problem and summarise the results of the meeting, which both parties must agree upon. The host

will normally select meeting attendees according to the status and position of the foreign partner.

In most Czech companies, the first meeting is made with a person in a middle management

position. This middle manager will then present the results of the meeting to senior management,

who will then make the decision on what the next step should be. If there is a subsequent meeting,

a senior manager with decision-making power will normally participate.

For Czech companies with older managers every international language is a foreign language,

which can make communicating difficult. On the other hand, you can meet people who

overestimate their abilities in a foreign language such that the potential for misunderstandings and

miscommunication is much greater. It is important to treat each situation according to its merits

and use a professional interpreter with industry-specific knowledge, where it is necessary to ensure

that both parties have a precise understanding of the matter under discussion. If the Czech partner

knows that their language skills are inadequate, they will organize a professional interpreter. You

should advise the Czech side, if you are bringing an interpreter or if you would like to have one

present.

It is also possible for a meeting to be held in a third language, which puts both parties on a level

playing field. It is recommended that you check with your Czech business partner as to which

language the meeting will be conducted in.

Negotiation process

Czech negotiating can be divided into two different approaches. The older generation, the people

who lived through communism, have a laid back attitude to negotiation, preferring to take their

time before making a decision and not liking to be rushed into anything. They do not like

aggressive, loud and fast-talking ‘young guns’ who think they know everything. They need to feel

comfortable when negotiating, which means they prefer to talk to someone in their own age group

with whom they can create a friendly atmosphere and crack jokes.

The younger generation are more westernized. Most of them studied for their postgraduate

qualification in either Western Europe or America, so their negotiating skills are more British or

American than Czech. Where the older generation might start the meeting with a discussion about

tourist sites in Prague, the younger person will likely jump straight into the business discussion

with the aim of being as efficient as possible.

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Once both sides have reached an agreement, the Czech side will want a written confirmation with

all the terms and conditions outlined in full. This is the nomal way that business is done and not

because of any lack of trust.

Meeting protocol

The basic way of greeting people is by shaking their right hand and saying “dobrý den” (good

morning/afternoon), “dobrý večer” (good evening) or welcoming phrases “vítám vás”(welcome) or

“těší mne, že vás mohu přivítat v naší společnosti” (I am pleased to welcome you to our company).

The host will always offer their hand first, regardless of gender. When shaking hands, you should

have a firm handshake as a weak handshake can be taken to mean that you are weak or unsure of

yourself. Conversely, a handshake that is too strong might be an indication that you will be

inflexible and not open to proposals that might be put forward in the meeting. It is always good to

maintain eye contact as a demonstration of openness and sincerity. You should avoid over friendly

gestures like slapping on the back, hugging, kissing on the cheek or hands in any business

situation.

In all Czech business sectors everybody gives out business cards. Business cards are never

exchanged during the greeting, but should be done at the beginning of the meeting, so that

everybody knows with whom they are talking, what position they hold and for which company.

Business cards are used as a means of introduction and to provide basic contact information. The

exchange of business cards also enables you to identify a potential partner and helps you to know

how to address that person. The function of the business card is becoming more important in the

Czech business community and more thought and effort is now being put into their design. Even

though the design of business cards should be simple and informative, some SMEs use it as a form

of advertising. For most Czech companies, the language used on their business cards is Czech.

Companies with international partnerships may have business cards with more than one language

i.e. Czech and English. It is important to explain the position of the person to the foreign business

partner, because of the potential for difficulties with the correct pronunciation of names and

accurate translation of job titles. If written in Czech, a job title might sound similar to an equivalent

position in another language, but the words could mean something totally different.

How to run a business meeting

If the Czech side is hosting the meeting, then they prepare the agenda and run the meeting. The

senior manager from the Czech company will introduce their team, including their positions in the

company and academic titles, at the beginning of a meeting. The senior member of the visiting

team will then introduces their team and an exchange of business card between all the participants

will take place. The Czechs will then present the agenda for the meeting and begin the discussion.

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During the meeting, some refreshments will normally be offered, such as coffee, tea, water and

biscuits. The host has to prepare the minutes of the meeting, including the main points of the

meeting, conclusions drawn from the discussion and a schedule of further steps to be taken. The

meeting minutes are distributed within the week for review and approval and, if no modifications

are requested, a confirmation of the agreement will be issued.

Follow up letter after meeting with client

If it has been agreed to continue with the partnership, then the timetable plays a very important

role in defining the activities of both business partners. After the tasks are formulated, deadlines

are fixed and dates and places of future meetings are decided upon.

In the case of one or both partners not seeing any future in their cooperation, each party has the

right to terminate negotiations and a full explanation for the decision will then be expected.

Business meals

Sharing a meal is generally one of the more enjoyable aspects of doing business in another

country. We have included it as a separate section because formal meals can represent an

opportunity to develop social relationships, which can be essential for strengthening any long-term

business partnerships. But this aspect presents a whole series of questions. Who pays? Should you

offer to pay? When and what do they eat? Could you refuse a specific dish? Can you discuss

business at the table during the meal or when is it most appropriate?

Attitudes to Business Meals

Most Czech business people would never contemplate hosting a business dinner in their own home.

Inviting a business partner for dinner at home happens only after their relationship is far more

personal. Therefore, most Czechs will invite their business partners to a local restaurant. There are

no written rules on how to begin a conversation or when it is appropriate to talk about business.

Mostly, it depends on the host and the business discussion will begin after the meal has been

ordered, depending on how much time both parties have.

Restaurant Etiquette

The host will always choose the restaurant, make the reservation and pay for the meal, including

the tip. An invitation to lunch will usually offered during the first meeting, whereas a meeting to

finalize the details of a business agreement is usually held in the more formal surrounding of the

company’s office. If the invitees will be meeting at the restaurant and not travelling together, it is

recommended to arrive on time. There are no strict rules on where to sit, although if there are only

two people, then you will probably sit opposite each other.

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The dress code for lunch and dinner would be formal business attire, such as a dark coloured suit

for men and something equally professional for women. If you are not sure what to wear, it is best

to ask the host for advice.

Food and Drink

In Czech culture you are not obliged to accept everything you are offered. The national dish is pork

and cabbage with potato dumplings, but the type of food depends on the style of restaurant. A

typical meal will consist of three courses: a cold appetiser or soup, main dish and desert; and it

really does not make any difference if you finish your food or leave something on the plate.

The Czechs have a beer drinking culture, so they will be morely likely to drink beer with a meal

than wine, however guests should feel free to order whatever they prefer to drink. In the case of a

more official business lunch or dinner, or when the occasion calls for it, the host may raise a toast

to the business partner or success of the partnership.

Other Issues (Including Restaurant vs. Home)

Smoking is restricted in a number of public places in the Czech Republic and about 60% of

restaurants are now non-smoking or have a separate area for smokers. However, smoking has not

yet been officially banned in pubs or restaurants and is not taboo during a business meeting. It is

common courtesy to ask whether anyone minds, before you smoke and it is best to follow the lead

of your host and their preferences.

Business meeting tips • Do not underestimate a Czech business partner; give them enough space during the meeting, listen to their ideas

and recommendations and you may be surprised with different ideas and new ways of looking at things.

• Come prepared and be confident, but not arrogant, because Czech managers are very sensitive to this.

• Do not look down on your Czech partners. You want to gain their trust and overcome any perception of distance

between you. There is a Czech rule that says that intelligent and well-educated people behave modestly.

• You should present your opinions but not force them upon others as this was an approach that many Czech

managers experienced during the economic transformation, and will likely alienate them as potential partners.

• Both partners should come to the meeting table as equals and treat each other with respect and openness; active

participation of both sides in the discussion will be taken as a sign of their interest.

• If you have the feeling during the meeting that your partner is pessimistic or not active in the discussion due to

their lack of understanding or self confidence, then you should simplify the presentation of your strategy, focusing

on aims and expected results.

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Internship and placement

Work experience

A placement involves the placement of a student in a temporary work or research environment to

enable them to gain extremely valuable experience that will benefit them in the long term.

Placements are sourced by outside agencies as well as university departments, and most

opportunities are advertised through the internet or university career centres. In fact, most

universities have career centres that will support and assist students with placement applications,

as well as assistance in finding work that compliments their studies or a permanent position

following their graduation.

There are many types of placement: work placements, school placements and student exchanges.

Some companies have placement departments to help integrate new hires into the company. They

may also help with paperwork, especially if the candidate is from a different country.

Placements are relatively new to the Czech business environment and many Czech companies are

now trying to implement them, as part of their strategy to bring in newly qualified employees.

Many companies now attend University open days across the country in order to attract students.

These open days are useful to both the companies and the students, because it gives both parties

the opportunity to discuss the possibilities of working together and to define expectations.

Internship and placement advice

The practicalities for a local student will be different to those of a foreign student. Local students

will probably only need to discuss salary and duration for a work placement, whereas a foreign

student will be concerned with many more issues including, accommodation, work permit (if

needed), insurance, health care, banking and so on.

Social security and European health insurance card

Students going to a different country for study placement or work placement should bring with

them a valid health insurance card. The national health system in the Czech Republic is quite good,

but there are a growing number of private hospitals. If you should have an accident whilst you are

in the Czech Republic and emergency help is needed, 112 is the number for multilingual assistance

to contact the Ambulance Service, Fire Service or the Police. The ambulance service is also

contactable at the 155 number, but this is for assistance in Czech only. For less severe medical

problems and over-the-counter medication, there are local pharmacies that can assist with minor

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ailments and most Czech Pharmacists speak English to some degree. “Lekarna” is the Czech name

for chemist or pharmacist.

There are three options for paying for hospital treatment in the Czech Republic: cash, credit card or

medical insurance. As the Czech Republic is a member of the European Union, those coming from

another EU member state are covered upon presentation of an EHIC (European Health Insurance

Card), form E111 or Provisional Certificate. Further information is provided by the Centre of

International Reimbursements at:

Safety • Emergency telephone numbers are, 155 for the ambulance service (local, usually communication in Czech only)

and 112 (international, multilingual access to ambulance, fire and police services), 158 for the Police.

• The electricity voltage in the country is 220 V; 50 Hz.

• Tap water is perfectly safe to drink.

• The speed limits are 50 km/h within inhabited areas; 90 km/h outside inhabited areas, 110km/h for motorway and

130 km/h on highways.

Do l need a visa?

Citizens of European Union are allowed to travel between EU member states and the Czech

Republic without first obtaining a visa. Residents of the United States are allowed tovisit the Czech

Republic for a maximum of 90 days without requiring a visa, unless they intend to work or study.

Most visitors from the rest of the world will need to apply for a visa, except where there is an

agreement in place between the two countries.

Temporary residence permits are available to those who wish to remain in the Czech Republic

longer than 90 days and who are able to meet certain criteria required by the Ministry of External

Affairs.

Internship and placement salary A salary should be agreed before the start of the placement and that agreement is between

you and the company. Some countries have a minimum hourly rate salary that is applicable to

most or all employment situation. You should also consult with the company about your tax

situation, if the company will pay income tax or social security tax including health and

benefits.

Internship and placement accommodation

Most local universities have dormitories or hostels available to both local and foreign students. This

accommodation is generally cheaper than renting a private flat. Some companies might also have

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cheaper accommodation for their employees as some sort of company benefits to compensate for

less salary.

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Cost of Living

The cost of living in every country is different, that is why doing some investigation about where

you are going is very important. The living standard in Czech Republic also varies by regions, the

prices of some products and services in Prague (Capital) are sometimes twice as high as in other

parts of the country. Students going for placement in the Czech Republic should visit the following

websites to get an idea of what the prices for everyday items are

Money and banking

The official currency of the country is Czech Crown (CZK). The country has over 30 commercial,

mortgage and investment banks. If you are going to work in the Czech Republic then you may

need to open a local account. All major credit cards are accepted in the Czech Republic, while

personal cheques are not used or accepted. To open an account, you will need to show a form of

photo identification (normally a student ID card and/or a valid Passport).

Travelling costs

The Czech Republic has one of the best and most efficient public transportation systems in the

world. Metro, trains, trams and buses are generally clean and punctual and are the easiest and

fastest modes of transportation in both the capital and country at large. There are student’s

discounts available if you produce a valid student card for example International Student ID Card

(ISID).

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Work-‐life Balance

Free time is important to everybody including business people, because that is their only chance of

recharging their batteries. However, it is difficult for employees in small or medium-sized

enterprises to find enough time because of the difficulties associated with running a business. This

is primarily because smaller businesses have fewer numbers of employees and most of the

strategic, day-to-day decisions are taken by one person, namely the director or owner of the

company.

National holidays

These are public holidays (bank holiday):

• 1st January – New Year

• Easter Monday – Easter falls on a different date in late March or early April each year.

• 1st May – Labour Day

• 8th May – Day of freedom from fascism

• 5th July – Slavic Apostles Cyril and Methodius

• 6th July – The anniversary of the martyrdom of Jan Hus

• 28th September – Day of Czech Statehood

• 28th October – Day of Independence for Czechoslovakia

• 17th November – Day of the Velvet Revolution, the date riot police suppressed a student protest leading to the fall

of the Communist Party.

• 24th December – Christmas Eve

• 25th December – Christmas Day

• 26th December – Boxing Day

In the Czech Republic, all employees are entitled to four weeks holiday each year, normally

distributed as one week in winter and three weeks in the summer.

Working hours

The Czech Republic‘s official working hours are 40 hours per week and employees get an annual

vacation of at least 20 working days. If an employee is asked to work overtime, their total working

hours must not exceed 52 hours a week (including 8 hours of overtime a week) and there must be

a written agreement between both parties. In specific situations, a collective agreement may

provide that scheduled working time for seasonal jobs may exceed 52 hours but are limited to a

maximum of 60 hours a week. Generally, these rules are not rigorously enforced at the SME level,

where employers and employees are more flexible.

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Work culture

The work culture in the Czech Republic is quite formal and structured. The people pride themselves

as been highly qualified and productive but you still have to keep a close eye on them so that they

don’t slack off.

Czech Republic has a number of legal measures protecting workers. All companies have to adhere

to government regulations in the areas of health and safety, discrimination, minimum wage levels,

part-time employment, and equal opportunities.

Health insurance

The social security system is overseen and managed by the state. It covers healthcare, pensions,

and employment insurance, as well as child-related benefits and other social services. While all

Czech citizens are guaranteed a minimum level of basic healthcare by the state, several

independent, commercial health insurance companies have been established.

All companies registered on the Czech Commercial Register must pay a total of 35% of their

employees’ gross salaries towards social security and health insurance funds, which covers both

the employer and employee mandatory contributions.

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Social Media Guide

Social media usage in the Czech Republic has been on an upward trend over the last few years,

with the most popular network being Facebook. The number of registered Facebook users is

3,805,480, as of the 1st of November 2012, which is an increase of 194,480 in the last six months.

This gives Facebook a penetration of 37.30% of the country’s population and 56.96% in relation to

total number of Internet users. The largest age group is currently 25 to 34 with a total of

1,103,589 users, followed by users in the age range of 18 to 24 and then 35 to 44. The group with

the highest rise in numbers in the last 3 months is the 18 to 24 year olds.

LinkedIn is very popular as a networking site for professionals and entrepreneurs, as well as for

university students who are using it to promote themselves to potential employers. Many head

hunting agencies use LinkedIn as a reference to check for potential clients and the number of

registered users in the Czech Republic is around 213,600.

Twitter is not yet popular in the Czech Republic, but the overall usage seems to be trending

upwards.

There are many popular local social media networks in the Czech Republic, the largest of which is

called ‘Seznam’. Having started as a search engine, Seznam now offers everything from a business

directory service to a dating site to chat room and e-commerce.

The total number of internet users in the Czech Republic is 7,426,376, which is about 73.0% of the

population as at June 30th, 2012 (Internet World Stats. Oct. 2012).

SMEs

Most companies in the Czech Republic now have some form of presence on the internet; some

have just a company website while others have a Facebook page or LinkedIn profile. Many of these

social media networks are used for different purposes and by different companies.

The service sector, especially restaurants, hotels and other hospitality businesses, are heavy users

of social media for both promoting their services and reacting to public comments about their

establishment.

Some companies use LinkedIn to advertise vacancies and find potential employees. These

companies can also encourage their employees to join different groups on LinkedIn that might be

beneficial to the company.

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Technology and manufacturing companies have been attracted to YouTube because video is an

excellent means of showcasing products and demonstrating process improvements. YouTube also

has the highest daily traffic of all social media network and many major companies use it to

advertise current products and introduce new products for immediate customer comment, which

allows companies’ to shorten the feedback cycle and improve customer relations.

The biggest users of social media sites for advertising are internet shops selling fashion, mobile

technology, household goods and everyday products, auction sites and dating sites. Most of them

use local search engines like Seznam.cz, google.cz, volny.cz, atlas.cz and centrum.cz because they

are more visible to local customers.

Search and Social Media Marketing for International Business

Learn how to use social media for business from one of Salford Business School’s latest business management courses. The course was jointly researched by the Passport to Trade 2.0 project team and prepared in collaboration with some of the leading digital marketing agencies in the UK.

This Massive Open Online Course (MOOC) can help businesses and individuals to make the best use of search and social media platforms. The course is called Search and Social Media Marketing for International Business and is applicable to students looking for placements abroad as well as businesses thinking about new trade links; it comprises the following twelve topics:

How to develop a personal brand online (1/12)

http://www.youtube.com/watch?v=l9LYw0mgtn4&feature=player_embedded

• Whether you are a student beginning a job search or a business person planning a new business venture, personal branding can make a difference.

• Learn about personal branding and why it is important for you.

How to use Twitter (2/12)

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http://www.youtube.com/watch?v=9CVY3pp91Dc&feature=player_embedded

• Learn the basics of using Twitter to develop an individual or business profile.

• Remember to use hash tag #SSMMUoS to share your learning journey on this course so far!

How to use Search Engine Optimisation (SEO) (3/12)

http://www.youtube.com/watch?v=zw27cRcwtM0&feature=player_embedded

• Learn the principles of SEO to ensure that your website and any social media profiles are found by individuals searching for your name, products and services.

• These basic principles of SEO include keyword research, on-page optimisation and off-page optimisation.

How to use social media for international business development (4/12)

http://www.youtube.com/watch? v=Bx-B56AHS4c&feature= player_embedded

• Social media networks break down the traditional country barriers, but do you know which networks are relevant for the country you are interested in trading with?

• Find out in this video how to identify the relevant networks and what social media strategies you might be able to use on these networks.

How to use Facebook (5/12)

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http://www.youtube.com/watch? v=UmRGn-vdcO8&feature= player_embedded

• Facebook is currently the largest social media network in the world and it can benefit you as a business as well as an individual.

• Learn how to develop a Facebook business page and see how other businesses use it and what strategies work for them.

How to use YouTube (6/12)

http://www.youtube.com/watch?feature=player_embedded&v=G20OVpmTBss

• YouTube was identified as the second largest social network amongst younger internet users as part of the Passport to Trade 2.0 project.

• Learn how to optimise your video content in order to reach wider audiences for your profile.

How to use LinkedIn (7/12)

http://www.youtube.com/watch?v=N6e_EAUQqic&feature=player_embedded

• LinkedIn is one of the three main professional social networks – the others being Xing and Viadeo which are also popular in several European countries.

• Learn how to make the most of LinkedIn for your profile.

How to use Google+ (8/12)

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http://www.youtube.com/watch?feature=player_embedded&v=8ti3SPHkEWw

• Google+ is the second largest social network as of January 2013.

• It is one of the fastest growing social networks and one that has the biggest impact when it comes to search engine results integration for anyone who uses Google as their main search engine.

• Learn how to make the most of Google+ for you and your digital profiles.

How to use copywriting online (9/12)

http://www.youtube.com/watch?v=5f1hx_f2ONI&feature=player_embedded

• Copywriting is a process of translating technical specifications and product descriptions into engaging and understandable customer focused text.

• Learn about the basic techniques in structuring your online content here.

How to stay legal on social media (10/12)

http://www.youtube.com/watch?v=eQxD-piHsdk&feature=player_embedded

• Everything and anything you do and say online can be potentially viewed by anyone who has internet access.

• Always respect the law and familiarise yourself with new options offered to you through a creative commons licence which is popular online.

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How to use monitoring and reporting (11/12)

http://www.youtube.com/watch?v=LbEq7jsG0jg&feature=player_embedded

• Whether you are an individual or a business spending time on social media – there has to be a return on your engagement online.

• How do you justify your engagement on social media to your boss? Listen to the industry experts in this area and see what you might be able to measure in respect of your on-line engagements.

How to blog (12/12)

http://www.youtube.com/watch?v=OqVjR7oI8Rs&feature=player_embedded

• Blogging is a process of writing text and sharing content with others. It can help your customers or friends to keep in-touch regardless of social media platforms.

• Think about the voice you might want to adopt and who your audience might be. Share your thoughts with us by writing a blog post about this MOOC.

• Tweet us the link to your post on the #SSMMUoS Twitter hash tag.

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Passport to Trade 2.0 Project Partnership Five Universities:

Lead partner: Salford Business School, University of Salford, United Kingdom

Elena Vasilieva Aleksej Heinze Alex Fenton

URENIO research unit at Aristole University of Thessaloniki, Greece

Christina Kakderi Nitsa Papadopouloui

TSE Entre Research Centre Turku School of Economics, University of Turku, Finland

Satu Aaltonen Elisa Akola

Institute for Information System Research University of Koblenz-Landau, Germany

Verena Hausmann Susan P. Williams Petra Schubert

Valahia University of Targoviste, Romania

Adriana Grigorescu Leonardo Badea

Three Small & Medium Sized Enterprises (SMEs)

Spin, Italy

Carmine Antonio Donato Dorella De Tommaso

Technology Development & Innovation – TDI LTD Bulgaria

Milanka Slavova Ivan Stoychev

TIS Praha, Czech Republic

Anna Klosova Richard Adekeye

Date post:	13-Jan-2015
Category:	Education
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