Germany Business Culture

Some basic facts on Germany Europe’s largest economy and second most populous nation (82.5 million) key member of the continent's economic, political, and defense organizations One of the original € - countries Re-united since 1989 Chief of state is President H. Köhler Head of government is chancellor A. Merkel

Europe’s largest economy and second most populous nation (82.5 million)

key member of the continent's economic, political, and defense organizations

One of the original € - countries

Re-united since 1989

Chief of state is President H. Köhler

Head of government is chancellor A. Merkel

And some facts on the Germans Life expectancy: 78,8 years Mainly Christian, also Muslim „ Ordnung muss sein“ = Everything has to be in order Life and work is clearly defined by laws, rules and procedures Strong focus on facts and tasks Straight-forward when communicating Individualists, who yet seek consensus

Life expectancy: 78,8 years

Mainly Christian, also Muslim

„ Ordnung muss sein“ = Everything has to be in order

Life and work is clearly defined by laws, rules and procedures

Strong focus on facts and tasks

Straight-forward when communicating

Individualists, who yet seek consensus

Economic Policy To secure stable prices, a high rate of employment and a balanced foreign trade along with steady economic growth central task of economic policy is to limit unemployment New jobs which are assured in the future can only be created through investment and innovation

To secure stable prices, a high rate of employment and a balanced foreign trade along with steady economic growth

central task of economic policy is to limit unemployment

New jobs which are assured in the future can only be created through investment and innovation

The German economy in numbers GDP: $2.454 trillion GDP - real growth rate: 0.9% (slowest growth in EU) but: industrial growths rate: 1,7% GDP per capita: $29,800 GDP by sectors: Agriculture : 1.1% Industry: 28.6% Services: 70.3%

GDP: $2.454 trillion

GDP - real growth rate: 0.9% (slowest growth in EU) but: industrial growths rate: 1,7%

GDP per capita: $29,800

GDP by sectors: Agriculture : 1.1% Industry: 28.6% Services: 70.3%

The German economy in numbers Labor force: 43.32 million Unemployment: 11.6% (highest in the history of FRG) Inflation rate (consumer prices): 2% Investment (gross fixed): 17.1% of GDP Budget: revenues: $1.249 trillion expenditures: $1.362 trillion Current account balance: $119.8 billion

Labor force: 43.32 million

Unemployment: 11.6% (highest in the history of FRG)

Inflation rate (consumer prices): 2%

Investment (gross fixed): 17.1% of GDP

Budget: revenues: $1.249 trillion expenditures: $1.362 trillion

Current account balance: $119.8 billion

Imports and Exports Imports : $ 801 billion commodities : machinery, vehicles, chemicals, foodstuffs, textiles, metals Exports : $ 801 billion commodities : machinery, vehicles, chemicals, metals and manufactures, foodstuffs, textiles partners : France 10.3%, US 8.8%, UK 8.3%, Italy 7.2%, Netherlands 6.2%, Belgium 5.6%, Austria 5.4%, Spain 5%

Imports : $ 801 billion

commodities : machinery, vehicles, chemicals, foodstuffs, textiles, metals

Exports : $ 801 billion

commodities : machinery, vehicles, chemicals, metals and manufactures, foodstuffs, textiles

partners : France 10.3%, US 8.8%, UK 8.3%, Italy 7.2%, Netherlands 6.2%, Belgium 5.6%, Austria 5.4%, Spain 5%

More about the German economy Social market economy : only role of state is to protect the competitive environment from monopolistic or oligopolistic tendencies extensive social welfare system (one of the most expensive in the world)  re-unification, unemployment, aging population Ordnung (order) means an economy, society, and polity that are structured but not dictatorial Economy is both conservative and dynamic

Social market economy : only role of state is to protect the competitive environment from monopolistic or oligopolistic tendencies

extensive social welfare system (one of the most expensive in the world)  re-unification, unemployment, aging population

Ordnung (order) means an economy, society, and polity that are structured but not dictatorial

Economy is both conservative and dynamic

The biggest German firms Allianz Daimler-Benz Siemens Volkswagen VEBA RWE Hoechst BASF Bayer Thyssen ESSO Bosch BMW Mannesmann Metallgesellschaft VIAG Ruhrkohle Preussag Adam Opel Deutsche Shell Ford Hoesch-Krupp

Allianz

Daimler-Benz

Siemens

Volkswagen

VEBA

RWE

Hoechst

BASF

Bayer

Thyssen

ESSO

Bosch

BMW

Mannesmann

Metallgesellschaft

VIAG

Ruhrkohle

Preussag

Adam Opel

Deutsche Shell

Ford

Hoesch-Krupp

More about the German economy Ranked 3 rd in terms of total economic output No 1 in terms of exports 1/3 of profits generated by export one in four jobs depends on foreign trade Foreign Trade accounts for 10% of total world volume Worldwide, 4 million jobs are maintained by German international investments Germany welcomes free world trade, opposes any form of protectionism, and is committed to further liberalization measures

Ranked 3 rd in terms of total economic output

No 1 in terms of exports

1/3 of profits generated by export one in four jobs depends on foreign trade

Foreign Trade accounts for 10% of total world volume

Worldwide, 4 million jobs are maintained by German international investments

Germany welcomes free world trade, opposes any form of protectionism, and is committed to further liberalization measures

The German society Open-minded, modern and tolerant Proud of their culture (i.e. music, painters, architecture) Men and women have equal rights All kinds of violence are despised 9% of population is foreign Enjoy travelling, participating in all kinds of organizations

Open-minded, modern and tolerant

Proud of their culture (i.e. music, painters, architecture)

Men and women have equal rights

All kinds of violence are despised

9% of population is foreign

Enjoy travelling, participating in all kinds of organizations

Some German phrases Hello = Guten Tag (formal), Hallo (informal) My name is … = Mein Name ist ... Thank You = Danke Please/You are Welcome = Bitte Goodbye = Auf Wiedersehen

Hello = Guten Tag (formal), Hallo (informal)

My name is … = Mein Name ist ...

Thank You = Danke

Please/You are Welcome = Bitte

Goodbye = Auf Wiedersehen

German business culture Punctuality is essential. If you are late, let your business partner know Appointments must be made for all occasions Decision-making is a looong and detailed process

Punctuality is essential. If you are late, let your business partner know

Appointments must be made for all occasions

Decision-making is a looong and detailed process

German business culture Structure and hierarchy well-defined and strictly observed hierarchy, with clear responsibilities Professional rank and status based on an individual's achievement and expertise in a given field. Academic titles and backgrounds are important 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.

Structure and hierarchy

well-defined and strictly observed hierarchy, with clear responsibilities

Professional rank and status based on an individual's achievement and expertise in a given field. Academic titles and backgrounds are important

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.

German business culture Working Relationships very private and evidenced, in the strict separation between private life and work. It therefore takes time to forge more personal relationships Business relationships based on mutual advantage, with the overall task as the central focus.

Working Relationships

very private and evidenced, in the strict separation between private life and work. It therefore takes time to forge more personal relationships

Business relationships based on mutual advantage, with the overall task as the central focus.

German business culture Business practices very formal, so always use last names and appropriate titles meetings follow a formal procedure greet people with a firm, but brief, handshake on both arrival and departure to provide solid facts and examples to back up proposals

Business practices

very formal, so always use last names and appropriate titles meetings follow a formal procedure

greet people with a firm, but brief, handshake on both arrival and departure

to provide solid facts and examples to back up proposals

Business Etiquette (Do’s and Don’ts) DO take detailed business cards with you DO maintain direct eye-contact when addressing German colleagues DO use the formal version of you (“Sie”), unless someone specifically invites you to use the informal “Du” form. DON’T discuss personal matters during business negotiations DON’T attempt to continue negotiations after a contract has been signed. DON’T use exaggerated or indirect communication styles during business meetings with you German counterparts.

DO take detailed business cards with you

DO maintain direct eye-contact when addressing German colleagues

DO use the formal version of you (“Sie”), unless someone specifically invites you to use the informal “Du” form.

DON’T discuss personal matters during business negotiations

DON’T attempt to continue negotiations after a contract has been signed.

DON’T use exaggerated or indirect communication styles during business meetings with you German counterparts.

German Culture Quiz - true or false Germans sometimes gently rap their knuckles on the table instead of applauding at the end of a business meeting. It is impolite to shake hands with one hand in your pocket. At a dinner party, nobody may drink until the guest has made a toast. The "thumbs up" gesture is not only a sign of appreciation and agreement, but also means the number German executives prefer to keep their office doors open to create a feeling of openness and mutual trust.

Germans sometimes gently rap their knuckles on the table instead of applauding at the end of a business meeting.

It is impolite to shake hands with one hand in your pocket.

At a dinner party, nobody may drink until the guest has made a toast.

The "thumbs up" gesture is not only a sign of appreciation and agreement, but also means the number

German executives prefer to keep their office doors open to create a feeling of openness and mutual trust.