- What are some of the general challenges of starting a new business in another country? What specific challenges did Copy General face in Eastern and Central Europe?
There are general challenges of starting a new business in another country. One of these is learning to adapt to the local culture and business practices in that country. Another major obstacle is the difficulty in communicating with the people in the country because of the language barrier. Furthermore, one has to be aware of the social and political practices of the country. For Copy General, a specific challenge which it faced is the language problem. Also, looking for the perfect site where to establish their first store was a long journey for Copy General. They had to familiarize themselves with the business practices in the countries where they wanted to establish their presence. Not knowing anyone in a foreign country who could introduce them to the “dos and don’ts” in the country became a major predicament. Aside from the difficulty of looking for suppliers, Copy General also had a problem with the sourcing of local financing for their business.
- How important was Paul Panitz’s vision to the decision to go into Hungary? How would you characterize his leadership and management style and his commitment to “doing well by doing good”?
Paul Panitz’s vision was very important and crucial in deciding to go to Hungary. If he did not foresee the opportunity of establishing Copy General in Eastern and Central Europe, the company would not have been successful internationally. His vision served as a motivation to everyone in Copy General. The leadership and management style of Paul is one of leadership by example. He practiced what he preached. He did not want the lower rank employees to perceive that they were treated differently from the higher level employees. An example of this is when Paul refused to stay in a $200 a night hotel room while their staff were being paid $200 per month.
- Compare the recollections of Ken Chaletsky, a U.S. manager with Copy General, and Erno Duda, Copy General’s initial country manager in Hungary. How do their perspectives differ, and how do they reflect the cultural values of their respective countries?
Ken Chaletsky recalled that in the beginning he was not enthusiastic about Paul’s plan to open a copy center in Budapest but later on, he supported Paul. Ken realized that putting up a business in Hungary would be entirely different from establishing one in the U.S. He compared how easy it would have been to find a location for a store in the U.S. because of the presence or real estate agents, unlike in Hungary where there was no organized real estate market.
- What lessons (if any) can you derive from Copy General’s successful experience in Eastern Europe and beyond?
Before establishing a business in a foreign country, it is necessary for one to study the culture of the country. The business policies and regulations that govern the country should be researched first. It would benefit the company if it has a business contact in the foreign country who can guide it along the way. If there is no one in the company who knows how to speak the foreign language, it is best that it gets an interpreter whom it can trust. A business or marketing plan should be done first before deciding on putting up a store in a foreign land. Another lesson that can be learned from Copy General’s experience is that if there are problems encountered, it should not discourage the company from pursuing the business rather, it should try to find other alternatives which can solve the problem. It is essential for any company to know how to motivate their people; thus, if one is to establish a business in a foreign country, it should identify the factors which motivate the workers of that country. Finding out what they value is a must to assure the company that they will be motivated to work.
References
(n.d.). A copy shop goes global.
