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Know germany and its business culture

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Information about Know germany and its business culture

Published on February 25, 2013

Author: ManjuThomas3

Source: slideshare.net

Description

this is all bout germany.it covers business culture,history,market challenges and opportunities,hofstede's analysis
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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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