know germany and its business culture
DESCRIPTION
this is all bout germany.it covers business culture,history,market challenges and opportunities,hofstede's analysisTRANSCRIPT
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Location : Central EuropeArea: 357,104 Sq . Km
Capital City: BerlinInhabitants:83 .3 BillionAdministration: Democratic- Parliamentary SystemState system: 16Gross national income: Eur.3529.98 Billion
Language: GermanNational Currency :EuroPopulation Growth rate:0.44%
This is what I am !
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Religions
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History
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Germany is a part of G-7,G-8,G-20 Highest state authority is federal
government Strict taxation laws Strict hiring and firing protocols Starting of business will take at least 5
months Welcomes foreign direct investment Free trade zones
POLITICAL
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4th in terms of GDP 5th in terms of purchasing power World’s second largest trader both in terms
of imports and exports Managed to stay stable in the periods of
recession 40 fortune 500 companies are
headquartered in Germany
Economy
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German economy –world’s 4th largest one Allows free market principles with some
government regulations Largest consumer market in European union World’s largest trade events-MEDICA,
Hannover Fair, Automechanika Attractive points-Volume of trade, number
of consumers, location
Market overview
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Innovative high quality and stylish products Products of multimedia, healthcare, electronic
and computer components Price is not a determining factor Regional difference among consumers across
the country High-quality products, services at competitive
prices, and locally based after-sales support Deductions, allowances and write-offs help to
move effective tax rates
Market opportunities
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GDP declined significantly Slow economic growth Increase in wages, flexibility of bargaining
power of employees Declining workforce Barriers for biotech agricultural products Complicated procedures of bureaucracy and its
cost Relatively high marginal tax rates and
complicated tax laws More protection to Local suppliers
Market challenges
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Labour restrictions Fiscal austerity programmes Business starting and ending-a tedious process Higher power for trade unions Import and export control laws Environment friendly manufacturing units Joint ventures and strategic alliances is difficult Separate law for EU countries and Non-EU
countries
Legal
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30 procedures
and 394 days
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World class manufacturing facilities Quality enhancing process Well connected communication network Technically skilled workforce and training
institutes Best of the raw materials available Best of the automobile giants 2nd in terms of technology,15.6 % of
research in world Better media and advertisement
Technological
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Workplace in Germany Work day-Fairly short ,Morning 7.00 or 8.00 to 3.00. 4:00 is often considered pushing the feasible limit Getting fired from work is tough. It should go through company council Established unions Quick decision makers Minimum 6 weeks of paid vacation
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Investment areas Iron
Vehicles Electronics Food and beverages Coal Steel Textiles Shipbuilding Machine tools
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German consumer behaviour
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Power in the hands of a few managers Larger companies (AG & GmbH) have a Supervisory Board
(Aufsichtsrat) which appoints the Management Board (Vorstand)
Management board is the final decision-maker Individual's specific roles and responsibilities are tightly
defined and compartmentalized. Slow to change to new situations Methodical approach Chairman of a company has considerably less personal power
than in certain other countries
Business structures
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Encourage foreign investment in Germany Gmbh (limited liability company) or an AG (joint stock
company) are treated no differently from German-owned companies
No special nationality requirements on directors or shareholders
Five free trade zones in Germany z established and operated under EU law: Bremerhaven, Cuxhaven, Deggendorf , Duisburg and Hamburg
Germany does not have a statutory minimum wage. However, binding minimum wages have been established in 16 sectors so far (e.g:, Construction, electrical trades, painting, mail, or waste management)
Political acts of violence against either foreign or domestic business enterprises are extremely rare
Investment climate
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Complex safety standards Complicate access to the market Timely testing and certification Imported goods must be accompanied by a
customs declaration, which has to be submitted in writing, and an invoice in duplicate
Consumer-ready food products into Germany face many market access restrictions and very strict food laws
Administers the use of the “Green Dot,” a recycling symbol
Trade regulations
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Technically capable in their respective areas Strong, clear leadership Responsibility is expected to be delegated
by the manager to the member of the team Manager-subordinate relationship as distant
and cold Subordinates tend to respect the technical
abilities of their superiors and this will impact on their willingness to implement instructions
Management style
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Do not sit until invited and told where to sit. Meetings adhere to strict agendas, including starting and
ending times. Treat the process with the formality that it deserves
Germans prefer to get down to business .They will be interested in your credentials
Make sure your printed material is available in both English and German
Contracts are strictly followed You must be patient and not appear ruffled by the strict
adherence to protocol. Germans are detail- oriented Decision-making is held at the top of the company Final decisions are translated into rigorous, comprehensive
action steps that you can expect will be carried out to the letter Avoid confrontational behaviour or high- pressure tactics.
Business Negotiation
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Appointments are mandatory and should be made 1 to 2 weeks in advance
Letters should be addressed to the top person in the functional area, including the person's name as well as their proper business title
If you write to schedule an appointment, the letter should be written in German
Punctuality is taken extremely seriously Maintain direct eye contact while speaking Men enter before women Germans signal their approval by rapping their knuckles on the
tabletop Eldest or highest ranking person enters the room first
Business Meeting Etiquette
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Masters of planning Careful planning, in one's business and
personal life, provides a sense of security Work and personal lives are rigidly divided If you must remain after normal closing, it
indicates that you did not plan your day properly
Maintaining clear lines of demarcation between people, places, and things is the surest way to lead a structured and ordered life
Planning culture
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Truth and directness before diplomacy Germans will give a factual rendition of their
own capabilities Time and a place for humour in Germany Presentations are expected to be supported
with a lot more specific detail
Communication style
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Pre-planners Argue their view point thoroughly and
support it with well-researched data Designated specialist from each area Strong, debate is expected and encouraged
in order to promote the development of the 'right' answer
Expected to contribute to the debate when discussions touch their area of expertise
Meetings
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Greetings are formal A quick, firm handshake is the traditional greeting Titles are very important and denote respect. Use a
person's title and their surname until invited to use their first name. You should say Herr or Frau and the person's title and their surname
In general, wait for your host or hostess to introduce you to a group
When entering a room, shake hands with everyone individually
Meeting Etiquette
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Business dress is understated, formal and conservative
Men should wear dark coloured, conservative business suits
Women should wear either business suits or conservative dresses
Do not wear ostentatious jewellery or accessories.
Dress Etiquette
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Do not need a personal relationship People often work with their office door
closed Expect a great deal of written
communication, both to back up decisions Germans are suspicious of hyperbole,
promises that sound too good to be true, or displays of emotion
They will be interested in your academic credentials and the amount of time your company has been in business
Relationships & Communications
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Remain standing until invited to sit down. You may be shown to a particular seat
Do not begin eating until the hostess starts or someone says 'guten appetit‘
Do not rest your elbows on the table At a large dinner party, wait for the host to place
his/her napkin in lap before doing so yourself Send a handwritten thank you note the following
day to thank your hostess for her hospitality The host gives the first toast
Table manners
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