Published on February 25, 2013
Location : Central EuropeArea: 357,104 Sq . KmCapital City: BerlinInhabitants:83 .3 BillionAdministration: Democratic- Parliamentary SystemState system: 16Gross national income: Eur.3529.98 BillionLanguage: GermanNational Currency :EuroPopulation Growth rate:0.44%
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
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
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
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
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
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
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
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
Iron Vehicles Electronics Food and beverages Coal Steel Textiles Shipbuilding Machine tools
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 Individuals 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
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
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
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
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.
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 persons 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
Masters of planning Careful planning, in ones 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
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
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
Greetings are formal A quick, firm handshake is the traditional greeting Titles are very important and denote respect. Use a persons title and their surname until invited to use their first name. You should say Herr or Frau and the persons 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
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.
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
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
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