As with many of the central and eastern European states it is very difficult to describe what is the ‘norm’ in the Czech Republic with regard to typical business structures.

The business environment is relatively new and is developing and transforming all the time. After the political changes occurred, there was a vacuum with regard to business direction and models and the Czechs pulled in advice and assistance from all over the world. So what has developed in the intervening years is a confused picture but it could be argued that there are three different types of business structures to be encountered locally:

    Ex-state monopoly enterprises. These large operations suffer with a hangover from the former system of central planning, massive levels of bureaucracy and inertia.
  1. Foreign capital subsidiaries. Many international companies have branch offices in Poland and these branch offices will usually reflect the approach of the parent company. Subsidiaries of a US firm will often have a strong US influence; subsidiaries of a German company will usually have a strong German feel etc.
  2. Local start-up companies. There has been a proliferation of entrepreneur-led companies which will often share the hallmarks of such companies worldwide; fast-moving, lacking in process and with a short-termist approach

Therefore, before entering into negotiations with a Czech counter-party, do your homework. What is the background of the company and what structure have they developed?

A brief overview of some key concepts to consider when doing business in Czech Republic

Written and Produced by Keith Warburton

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This country profile has been produced to give a short overview of some of the key concepts to bear in mind when doing business with contacts in the Czech Republic. It is intended to be an aid to business people who have commercial dealings with counterparties in the country but should not be seen as an exhaustive guide to this topic or as a substitute for more substantial research should there be a need.

With this in mind, we have covered the areas which are key to a better understanding of the cultural mindset underpinning business dealings in the Czech Republic and which are, quite often, extremely different from the approach and thought processes associated with business in other parts of the world.

Therefore this briefing note is broken into short, bite-sized sections on the following topics:

  • Background to business
  • Business Structures
  • Management style
  • Meetings
  • Teamwork
  • Communication
  • Women in business
  • Entertaining
  • Top tips