| Overview
& cultural perspective |
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Germany was formed as a modern state in 1871.
After World War II (1939-1945), it was divided
into two parts, the Federal Republic of Germany
in the west and the German Democratic Republic
(GDR) in the East. Following the implosion of
the Soviet Union, Germany was reunified on October
3rd 1990.
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| With 82.6 millions, Germany
has the highest population in the European Union.
Its economy is the third largest in the world; main
exports are motor vehicles (19.2%), machinery (14.1%)
and chemical products (13.1%), resulting in a trade
surplus of $189.3bn. |
| There is an equal distribution
of Christian religions with a majority of Roman
Catholics living in the south and Protestants living
in the north. |
Germany is a founding member
of the European Union, its economy is placed at
the heart of it and its performance has far-reaching
effects on other EU countries.
Its biggest recent economic burden was the reunification.
The costs still require a great amount of subsidiaries
in order to balance economic performance between
east and west. Unemployment has been another major
problem of the last decade but decreased with an
increasing economic upturn since 2006. |
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| Context & cultural awareness |
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Business structures and management styles derive
from the German form of corporate capitalism.
In most big corporations there is a representation
of the employee committee on the supervisory board,
who will play a role in influencing the company's
strategy.
German companies in general do not favour price
competition but believe in 'Leistungswettkampf',
competition based on the excellence of products
and services.
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| Germans are very proud of their
high tech and high quality industries and believe
it to be the keystone of success. Most managers,
even at senior level, know their production line
and highly value attention to details. For this
reason avoid simply focusing on financial statements
during negotiations. German management style is
usually characterised by the belief in the quality
of the product, service and loyalty to one company
and commitment to its long-term prospects. Hierarchy
is important but usually not overshadowing the objectiveness
within an organisation. |
| Additionally cooperation and
coordination between industry and the government
is of great importance. Virtually all products are
subject to norms, which are appreciated by the industry.
They are seen as guarantee for their quality (i.e.
Deutsche Industrie Norm 'DIN'). |
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| Effective cross-cultural communication |
| Germans are very direct communicators
in the sense that they strongly value fact-based
discussions. It is expected to state openly your
opinion and you would be expected to point out matters
of disagreement where it is based on objective facts.
There is no real culture of small talk and it usually
does not have a place in business meetings nor are
Germans very comfortable with it. |
| Discussion topics should be
relevant to the situation. These cultural traits
might differ from Bavaria in the south to Lower
Saxony or Hamburg in the north. In general, in the
southern 'Länder'you are more likely to come
across some more relationship-oriented settings,
however in the north, people are usually more reserved. |
| In Germany, business and private
life are strictly separated and Germans expect this
to be respected. In this context it is not common
to use first names and the informal you ('Du') if
not expressly invited to. Even German colleges might
call themselves with their surnames after having
worked together for several years. If someone has
a title (i.e. Dr.) it is normal to state it with
the name. |
| German business culture is based
on appointments and strict agendas. Punctuality
is highly valued and if a delay is unavoidable,
it is important to notify and excuse yourself with
a reasonable explanation. |
| Germans are usually not comfortable
with discussing business matters on-the-go but reserve
this for a scheduled meeting for which the appointment
is made in advance. In general, decisions are taken
during official meetings, which are very formal.
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| Greetings are done by handshaking
for men and women; embracing and kissing is reserved
for families and close friends. |
| Dress code for businessmen and
women is usually suits; although smart; the style
is quite modest and conservative. |
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