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 company’s 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 work outside of home, and only 30% in professional positions ■ The 3 K’s Kinder, Küche, 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, didn’t 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 ■

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): 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):