This document provides an overview of business culture and etiquette in the Czech Republic. It discusses the country's education system, noting that most Czech managers have university degrees. It emphasizes the importance of formality in business communications and relationships in the Czech Republic. Face-to-face communication tends to be indirect and cautious at first. English proficiency is common among younger managers, though an interpreter may still be needed. The document outlines proper etiquette for meetings, negotiations, gift-giving, and business meals.

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businessculture.org
Business Culture
in Czech Republic
http://businessculture.org/easterneurope/czech-republic/
Content Template
Last updated: 27.09.2013
businessculture.org
This project has been funded with support from the European Commission. This
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responsible for any use which may be made of the information contained therein.
Content
CZ

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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)
•
•
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.
http://www.youtube.com/watch?
v=l9LYw0mgtn4&feature=player
_embedded
How to use Twitter (2/12)
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•
•
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!
http://www.youtube.com/watch?
v=9CVY3pp91Dc&feature=playe
r_embedded
How to use Search Engine Optimisation (SEO) (3/12)
•
•
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.
http://www.youtube.com/watch?
v=zw27cRcwtM0&feature=player
_embedded
How to use social media for international business development (4/12)
•
•
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.
http://www.youtube.com/watch?
v=Bx-B56AHS4c&feature=
player_embedded
How to use Facebook (5/12)
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•
•
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.
http://www.youtube.com/watch?
v=UmRGn-vdcO8&feature=
player_embedded
How to use YouTube (6/12)
•
•
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.
http://www.youtube.com/watch?
feature=player_embedded&v=G2
0OVpmTBss
How to use LinkedIn (7/12)
•
•
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.
http://www.youtube.com/watch?
v=N6e_EAUQqic&feature=playe
r_embedded
How to use Google+ (8/12)
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•
•
•
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.
http://www.youtube.com/watch?
feature=player_embedded&v=8ti
3SPHkEWw
How to use copywriting online (9/12)
•
•
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.
http://www.youtube.com/watch?
v=5f1hx_f2ONI&feature=player_
embedded
How to stay legal on social media (10/12)
•
•
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.
http://www.youtube.com/watch?
v=eQxDpiHsdk&feature=player_embedde
d
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How to use monitoring and reporting (11/12)
•
•
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.
http://www.youtube.com/watch?
v=LbEq7jsG0jg&feature=player_
embedded
How to blog (12/12)
•
•
http://www.youtube.com/watch?
v=OqVjR7oI8Rs&feature=player
_embedded
businessculture.org
•
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
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