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Understanding International Business Environment

CCM&MMC
Submitted by: Pulkit Agarwal IMBA Harendra Rathi IMBA

Doing Business In Germany


This report provides background information on both the cultural and business aspects that a Indian businessperson visiting Germany needs to have at his fingertips.

Content
Basic Information Domestic culture
Germany is decentralized Politic Health care Food and eating out

Business Environment Working in Germany


German working practices Structure and hierarchy Working relationships

Doing business in Germany Dos and Donts

Basic Information
Population Density of population Square kilometres GDP per head of population Currency approximate rate of exchange 82.3 million 231 per km

357,092
20,894 (2006) in 1 euro = Rs. 64

Domestic Culture
Since unification in 1989, Germany is Europes most populous nation and the continents largest economy. Situated at the heart of the European continent, and fundamentally shaped by Europes history, it is characterized by deep regional identities while at the same time also conveying a national German culture.

Germany is decentralized
It may not be immediately apparent, but Germany is very decentralized. As everyone knows, London is definitely the capital and focal point for the English, and Paris for the French. However although Berlin may be the capital of Germany and seat of the Federal Parliament, Hamburg, Cologne, Frankfurt, Stuttgart, Munich and other major cities are regarded by their inhabitants as being more important when it comes to how their daily lives are run.

Politics
Germans tend to take more interest in politics than their British counterparts and are therefore generally better informed, but this does not mean that they are content with the political situation. The government is blamed for high unemployment, burdensome taxes and a dwindling pension fund.

Healthcare
The German healthcare system is decentralized, with central government having very little executive responsibility for the provision of healthcare. Federal and State (Land) governments are responsible for the maintenance of the public healthcare system. Roughly 90% of the population are insured with one of the over 200 Statutory Health Insurance (SHI) or public sickness funds. The SHI also insures 6 million Germans who have additional private health insurance. Around 8% of the population are privately insured.

Food and eating out


If your appointment with a German businessman happens to be around midday, he may suggest continuing your discussion over a meal. He will know where to go and depending on the circumstances you should at least offer to pay. It is unlikely you will be invited out to an evening meal or be taken to your hosts' home, but this may happen later if the business relationship is long term.

Business Environment
Germany has played a central role in Europes history, and is today a major player in its economic and political organizations. Following the countrys reunification, Germany now has the worlds 3rd most productive economy in the world. Situated at the center of Europe, Germany is an ideal base for tapping into all other European markets. However, before considering doing business in Germany, it is necessary to take into consideration a number of aspects vital for your success.

Working in Germany
German working practices
1. Punctuality is essential. Arriving even five or ten

minutes after the appointment time is considered lateand disrespectful. If running late for an appointment, it is best to notify the person. 2. Appointments are made for most situations, and sometimes several weeks in advance. 3. Decision-making is often a slow and detailed process. Do not expect significant conclusions to be reached based on spontaneous or unstructured results.

Cont.
Structure and hierarchy
1.

2.

3.

German business culture has a well-defined and strictly observed hierarchy, with clear responsibilities and distinctions between roles and departments. Professional rank and status in Germany is generally based on an individuals achievement and expertise in a given field. Academic titles and backgrounds are important, conveying an individuals expertise and thorough knowledge of their particular area of work. In formal German business meetings, it is customary for the highest-ranking person to enter the room first. However, in more informal business situations this is less important.

Cont.
Working Relationships
1. The Germans are very private, evidenced, for

example, in the strict separation between private life and work. It therefore takes time to forge more personal relationships. 2. Business relationships are often based on mutual advantage, with the overall task as the central focus.

Doing Business in Germany


Business practices
1.

2.

3.

4.

First names are generally only used with family and close friends and colleagues. Therefore, always use last names and appropriate titles. You will often find that colleagues who have worked together for years still maintain this level of formality. Business meetings follow a formal procedure. German managers work from precise and detailed agendas, which are usually followed rigorously; moreover, meetings always aim for decisive outcomes and results, rather than providing a forum for open and general discussion. German business protocol requires that colleagues should be greeted with a firm, but brief, handshake on both arrival and departure. In German business dealings, it is important to provide solid facts and examples to back up proposals, given the German preference for analytical thinking and rational explanations.

Dos and Donts


DO take plenty of business cards with you and ensure they include full details of your background, qualifications, and titles. DO maintain direct eye-contact when addressing German colleagues, especially during initial introductions. DO use the formal version of you (Sie), unless someone specifically invites you to use the informal Du form. It is usually best to let your German counterpart take the initiative of proposing the informal form of address (this implies readiness to develop a personal relationship). DONT discuss personal matters during business negotiations, as this is considered to deviate from the task at hand. DONT attempt to continue negotiations after a contract has been signed. Your German colleagues may view this with suspicion, which could lead to an unsuccessful business agreement. DONT use exaggerated or indirect communication styles during business meetings with you German counterparts. It creates an impression of insincerity and dishonesty.

Top 5 CompaniesGermany
Allianz Worldwide Insurance Daimler Chrysler Consumer durables Deutsche Bank Group Banking Deutsche Telekom - Telecommunications Services Siemens Group - Conglomerates

Companies in India
Allianz

Deutsche Bank
Audi

Bosch
Mercedes-benz

Working in INBUSH
Worked as the HEAD(Pulkit Agarwal) of LOGISTIC team. Harendra rathi as team member Under which I managed and coordinated the team regarding all logistic supported being provided to the guest acc. to their schedule.

Faculty coordinator : Mr. Amrish K. Choubey and Prof. A.K.Pandey

Learning
Management skills adopted working under pressure coordinating with team Deleting guest even under chaos and mismanagement.