Germany experienced relatively short GDP contraction during the recession compared to other countries. While exports decreased significantly, Germany still maintained a lead in the European marketplace. Unemployment increased but Germany was able to minimize the damage to employment rates. Mittelstand companies, Germany's small and medium sized "hidden champions", helped drive this success. Mittelstand companies specialize in niche global markets, pursue innovation and differentiation strategies, and emphasize operational effectiveness and "enlightened family capitalism" governance. These factors allowed Mittelstand companies to prosper during the recession and helped stabilize the German economy.
Austrian Business Cycle Theory - How Government Manipulation of Interest Rate...Graham Wright
This presentation starts by looking at how the market process works: coordination through prices and profits.
The two alternative theories of the business cycle are introduced:
- The non-Austrian theories, which blame the cycle on the free market and call for government to take control.
- And the Austrian Theory of the Business Cycle (ABCT), which blames the cycle on government manipulation of interest rates.
The boom, bust and recession stages of the ABCT are analyzed in detail. It is concluded that government actions only prolong recessions and make them more severe. And the business cycle would not occur with interest rates determined on a free market.
The trade cycle refers to the ups and downs in the level of economic activity which extends over a period of several years. If we examine the past statistical record of the business conditions, we will find that business has never run smoothly forever. There are many fluctuations in the period. Sometimes prosperity is followed by adversely. In Economics this tendency of the business activities, to fluctuate from prosperity to adversely is called business cycle.
Prof. Keynes says: " A trade cycle is composed of periods of bad trade characterized by falling prices and high unemployment percentages while a period of a good trade is characterized by rising prices and high employment, percentages."
Prof. Danica Purg, Dean and President of IEDC-Bled School of Management, President of Central and East European Management Development Association, Slovenia
Austrian Business Cycle Theory - How Government Manipulation of Interest Rate...Graham Wright
This presentation starts by looking at how the market process works: coordination through prices and profits.
The two alternative theories of the business cycle are introduced:
- The non-Austrian theories, which blame the cycle on the free market and call for government to take control.
- And the Austrian Theory of the Business Cycle (ABCT), which blames the cycle on government manipulation of interest rates.
The boom, bust and recession stages of the ABCT are analyzed in detail. It is concluded that government actions only prolong recessions and make them more severe. And the business cycle would not occur with interest rates determined on a free market.
The trade cycle refers to the ups and downs in the level of economic activity which extends over a period of several years. If we examine the past statistical record of the business conditions, we will find that business has never run smoothly forever. There are many fluctuations in the period. Sometimes prosperity is followed by adversely. In Economics this tendency of the business activities, to fluctuate from prosperity to adversely is called business cycle.
Prof. Keynes says: " A trade cycle is composed of periods of bad trade characterized by falling prices and high unemployment percentages while a period of a good trade is characterized by rising prices and high employment, percentages."
Prof. Danica Purg, Dean and President of IEDC-Bled School of Management, President of Central and East European Management Development Association, Slovenia
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this presentation consists history of Walmart, differnt store formats of Walmart, products provided by Walmart, SWOT analysis of Walmart and key success factors of Walmart.
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Since this information is outdated, it is no longer sensitive and can be seen publicly.
GSK Logistics' Academy of Learning - v2.0 recommendation Note: graphically, t...Margaret D.
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There is nothing proprietary about this since the information is dated.
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This information is now obsolete, so it is no longer sensitive to the company.
This is a sample of my monthly status report -- one of many in years of Pharma IT management and consulting. This information is no longer sensitive, so no modifications have been made.
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This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
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The Art Pastor's Guide to Sabbath | Steve ThomasonSteve Thomason
What is the purpose of the Sabbath Law in the Torah. It is interesting to compare how the context of the law shifts from Exodus to Deuteronomy. Who gets to rest, and why?
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
2. Outline
• Germany's Economic History
• Germany throughout the recession
• Mittelstand: A Definition
• Market Structure
o Profile of a Quasi-Monopoly
• Lessons Learned
3. Germany's Economic History
• Whiplash Extremes
o The Great Depression
o Nazi Germany - hothouse prosperity
o Post-WWII: In Complete Ruins, Disaster
o '50s - A Business Boom
o '60s - A Slowing of Growth, less spectacular
• "Social" vs. "Market" Balancing Act
o '70s "Laissez-faire" government control
o '80s Government Intervention and Control
o '90s A Slowing Down - "The Sick Man"
"Out of Germany or Out of Business"
- President of GM Europe
4. Dominating the Financial Crisis
• Experienced relatively short period of GDP
contraction
• Huge Decrease in Exports
• Still maintained a significant lead within the
European marketplace
• Unemployment
o Able to minimize damage to the employment rate
• Second highest Trade Surplus in the world
9. Mittelstand: The "Hidden Champions"
• What is the Mittelstand?
o Hermann Simon
• Companies Prospered in the 50's
and kept growing
• Came to Dominance in the '90s
• Much like current economic situation
15. Porter’s Five Forces Strategic Framework
Minimal Threat of Substitutes
due to high-tech dominance
Minimal Threat of Entry due to:
• high capital requirements in R&D
• high switching costs
• lack of access to distribution channels
Supplier Power
due to niche
product
Limited
Bargaining Power
of Customers
16. Mittelstand Strategy: Niche Market
Quasi-Monopoly
High-tech Innovation
Differentiation
________
The Industry Demand
Curve is the Firm's
Demand Curve
21. References
• How Germany’s Mid-sized Companies Get Ahead and Stay Ahead in the
Global Economy, Prof. Bernd Venohr, 2008
• “The Power of Uncommon Common Sense Management Principles –
The Secret Recipe of German Mittelstand companies – Lessons for large
and small companies”, Prof. Bernd Venohr, 2010
•http://www.bloomberg.com/news/2010-09-30/german-mittelstand-gives-
chilean-miners-economy-escape-route.html
•http://www.economist.com/blogs/freeexchange/2010/08/europes_econom
ies
•http://www.nytimes.com/2010/02/27/business/global/27gcon.html
•http://www.economist.com/node/17572160
•http://www.businessweek.com/globalbiz/content/sep2010/gb20100929_9
05740.htm
•http://www.globalpost.com/dispatch/germany/101111/mittelstand-
german-economy-manufacturing
•http://www.businessweek.com/globalbiz/content/sep2010/gb20100929_8
77580.htm
Editor's Notes
The prevailing stereotype about Germans is that they are renowned for their incredible orderliness, punctuality, and work ethic. Several indicators seem to show that this has paid off for them over the years. By a measure of worker productivity per euro spent, Germany became 13 % more competitive against its neighbors in the 11 years through 2009.
Social Policies- Much more difficult to lay off workers in Germany Instead of laying off workers (and have to then go through the costly process of rehiring and retraining workers when the economy gets better), many German companies chose to simply cut some employees' hours, promising them that their hours would be increased once the economy had improved.
Social Policies- Much more difficult to lay off workers in Germany Instead of laying off workers (and have to then go through the costly process of rehiring and retraining workers when the economy gets better), many German companies chose to simply cut some employees' hours, promising them that their hours would be increased once the economy had improved.
Define the Mittelstand 70% family owned 70% located, small rural communities 98% privately owned 99%of all companies in Germany this size Employs 70% of the german work force Split into several companies --- so each can perfectionistically focus on just 1 gadget Several companies may work interdependently to create pieces necessary for a factory machine, for example Mittelstand-- - Term coined by Hermann Simon in the early 1990's in his book -German economist and professor - became known Define the Mittelstand Split into several companies --- so each can perfectionistically focus on just 1 gadget Several companies may work interdependently to create pieces necessary for a factory machine, for example
Why are they hidden champions? Hidden bec they are b2b Of the 1500 german world market leading companies, 90% are b2b. This graph shows the 90% that are b2b. Shows the industrial distribution *change to red version 1300 of these 1500 world market leading companies are mittelstand companies 98% of all mittelstand companies are privately sectors of leading companies in the world market Machine equipment = mittelstand This B2B slide explains a lot of things including the fact that they remained behind the scenes, out of the public eye, simply because they didn't need to be in the public eye in order to do business. **add B2B
lots of overlap - strategy- specialized, 1 or 2 in their global market -governance- family owned, professional management operational effectiveness- innovation in niche
we found in a study that these companies have a higher management satisfaction unique combo-- family- survival, long-term is key less risky, relentless customer service extended family feel with emotional attachment professional outlook- state of the art management flat hierarchy 70% located, small rural communities Apprenticeships, retention, keep talent within - Internship equivalent in high school, **add more
Porter does not specifically address "niche markets" and a "hyperfocus" on one superior product. However, the 5 strategic forces describe many of the elements of the Mittelstand's success such as: -a minimal threat of substitutes -a minimal threat of new entrants -bargaining power of the supplier -Limited bargaining power of customers -Low intensity or non-existant rivalry Leads to high profit potential THIS SLIDE IS VERY CLUTTERED
Source: http://welkerswikinomics.wetpaint.com/page/Monopoly+demand Critical to understanding the profit maximization of the monopolist is remembering that the monopolist is the industry because it is the sole producer. Therefore the monopolist confronts a downward-sloping demand curve. The industry demand curve is the firm’s demand curve. For the Mittelstand, monopolistic ventures are temporary. Therefore, they are 'quasi-monopolistic'. MR is optimized when unit-elastic Market Structure: Quasi-Monopoly Temporary Monopoly due to Differentiation Industry Demand Curve same as the firm's demand curve MR < Price (always) MR as Q Note where e d = 1, Unit-Elastic Mittelstand Niche market behaviors match the demand curve precisely: less is more quality over quantity
The political and cultural environment in Germany allows the MIttelstand to succeed. They think in the long term instead of the short term. Since they are family owned, they are more concerned with the survival of the company instead of maximizing profits and expansion. They have a narrow focus with a global orientation. They are constantly innovating in order to function as a quasi monopoly. Because of this specialization it is hard to imitate this type of business. They operate in a quasi monopolistic market structure because of their devotion to innovation creating barriers to entry.
focused differentiation, niche concentrated resources cost isn't always the most important, offer value to customers, build relationships constant incremental innovation, constant improvement love of the business, the corporate culture created allows for sustainable companies who can bounce back and recover from an economic recession The medium sized businesses are ideal because they are small enough to have the "family owned" feel while being big enough to have enough resources to be innovating and compete globally.
focused differentiation, niche concentrated resources cost isn't always the most important, offer value to customers, build relationships constant incremental innovation, constant improvement love of the business, the corporate culture created allows for sustainable companies who can bounce back and recover from an economic recession The medium sized businesses are ideal because they are small enough to have the "family owned" feel while being big enough to have enough resources to be innovating and compete globally.
