GERMAN

BUSINESS
CULTURE
Oliver Sandino, Guojie Wang, Lidia Li, Juvenal Torres

Brief history:
West-central Europe
Capital: Berlin
German Empire founded after Prussia's victory in Franco-Prussian War (1870/71)
Mid 19th century, Germany was not a unified country
Germany surrendered in WWI and became a republic (1918)
After World War II, Germany and Berlin split into four zones of occupation
1949, the three western zones were united to form the Federal Republic of Germany, and
the Soviet zone became the German Democratic Republic
In 1961 the Berlin Wall was built, dividing the city in two

5 Dimensions of German Culture

Low Context Culture: Direct and Focused
Individualistic: Initiative and Self-Assertion valued
Time Orientation: Meticulous and Punctual
Power Distance: Vertical Hierarchy; Expertise
Communication Style: Facts, not Arrogance

Greetings:

A quick, firm handshake is the traditional greeting.

Eye contact when shaking hands, sometimes bow head.

Avoid shaking hands with one hand in your pocket.

Shake hands at the beginning and the end of meeting.

When women enter a room it is considered polite for men to stand.

Address Germans with full, correct title and last name.

Body language
In Germany, lots of physical distance and a moderate tone are
appropriate in most situations.
Direct eye contact is important, Avoiding it seems insecure or
unfriendly to them.
Never put your hands in your pockets while speaking.

Gift giving
A visitor thinking of giving a gift should choose one that is small and of good
quality, but not overly expensive.
Acceptable gifts at business meetings are items of office equipment, good
quality pens with your companys logo
Gifts are usually opened when received.

Appearance and Dress

Business dress is conservative

Men wear dark suits; solid, conservative ties and white shirts
Women dress in dark suits and white blouses
Chewing gum while talking is considered rude

Meals & Dining etiquette

Outdoor eating is popular in Germany,

Pets are sometimes even welcomed

Many foreign dishes have been adopted into German cuisine(i.e. spaghetti)

Beer and wine are part of a normal dinner and alcoholic drinks are usually offered to guests.

Not drinking, is completely accepted. Do not insist.

Time Structure of Typical Business Day

Strict regulations concerning opening and closing hours of businesses and shops

German Working Time Regulations regulate working hours on a legal basis

Most industries have collective agreements that regulate working hours and holidays

Working week of more than 48 hours on average during a 6 month period must not be exceeded

Sundays and national holidays are non-working days

Decision Making traditions

Decision-making process slow, opposed to risk

Every detail of proposal will be carefully and thoroughly examined

Precise and detailed agendas, are usually followed rigorously.

Meetings always aim for decisive outcomes and results

In negotiations, Germans are direct and frank about they want and they expect you to do the same.

Gender Roles
60% of women ages 15-65 work outside of home, and only 30% in professional
positions
The 3 Ks Kinder, Kche, und Kirche (Children, Kitchen, and Church)
Social legislation entices women from returning to work

Attitude towards Authority

Strong respect for authority
Subordinates rarely contradict boss
Relationship between boss and subordinates tend to be formal

Attitude toward Conflict Resolution

Disputes/disagreements are a normal process for finding mutual understandings
Chief characteristic of professionalism; express and accept criticism
Critical remarks are expressed harshly and plainly

Walmart in Germany
Why Walmart failed in Germany
CEO of German branch was American, didnt speak German
staff hired to greet them at the door and bag their groceries
Other competitive retailers in the market
German laws prevented easy go hiring and firing

International Business
https://www.youtube.com/watch?v=3yB7CjUXldg

Works Cited
Hager, Michael. "Intercultural Competence and German Business Culture." Global
Business Languages, 6.1 (2010): 4.
Hinner, Michael B. "Culture's influence on business as illustrated by German business
culture." China Media Research 5.2 (2009): 45+. Expanded Academic ASAP. W
Stedham, Yvonne, and Rafik I Beekun. "Ethical Judgment in Business: Culture and
Differential Perceptions of Justice Among Italians and Germans." Business Ethics: A
European Review, 22.2 (2013): 189-201.
Zimmer, Oliver. "Beneath the Culture War: Corpus Christi Processions and Mutual
Accommodation in the Second German Empire." The Journal of Modern History, 82.2
(2010): 288-334.