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Assignment of Business Environment on the topic

Culture Of Germany

Submitted to : Mr. Gagan Gulati Submitted by : Jasleen Kaur Gandhi

Assistant Professor Enrollment no : 17FLICDDN01053

The ICFAI University BBA LL.B SEC A 2nd year Odd Sem

Dehradun

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Table Of Contents

1. Introduction To Germany 3
2. Introduction To Germany 6
3. Effect Of Culture On Business In Germany 9
4. Statistics 12
5. Product/ Services Suitable For India 15
6. Bibliography 20

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Introduction to Germany

Germany is one of Europe's largest nations, with one of the largest populations. Although it has
played a major part in European and world history, it has been a single, unified nation for less
than 100 years. The area that now makes up Germany originally was a cluster of partially
independent cities and states. In 1871 the Prussian chancellor Otto von Bismarck created a
unified Germany. In this century, Germany fought in two world wars (World War I, 1914–1918,
and World War II, 1939–1945), and lost both.

Following the defeat of Nazi Germany in World War II, the nation was divided by the countries
that had defeated it: the United States, France, Great Britain, and the Soviet Union. The
American, French, and British zones were combined in 1949 to create the Federal Republic of
Germany (West Germany). That same year, the Soviet zone became the German Democratic
Republic (East Germany). Germany was separated for four decades.

Both Germanys recovered from the damage of the war with impressive speed. However,
progress was faster and more dramatic in the West than in the East. Because of this, nearly three
million East Germans eventually fled to West Germany, seeking better lives. Finally, in 1961,
the East Germans put up the Berlin Wall and sealed off the nation's borders.

In the late 1980s, however, Germany became caught up in the changes sweeping communist
Eastern Europe. The destruction of the Berlin Wall in November 1989 became one of the most
important symbols of the communist system's collapse. In March 1990, the East Germans held
their first free elections. The two German nations were reunited on October 3, 1990.

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Germany's main regions are the Bavarian Alps (which form the boundaries with Austria and
Switzerland), the South German Hill Region, the Central Uplands, and the North German Plain.
Major rivers include the Rhine in the west and the Danube, which flows from west to east.

Germany has the second largest population of any European country—over 81 million. More
than 90 percent of the people are ethnic Germans, descended from Germanic tribes. Since the
1950s, significant numbers of foreign workers have come into Germany from countries including
Turkey, Italy, Greece, and the former Yugoslavia. By the end of 1991, Germany had a foreign
population of close to 6 million.

Population: 82.5 million, including 18.6 million with migration backround

Surface area: 357,340 km²

Form of government: parliamentary democracy

Founded: 1949, followed by German reunification with accession of the German Democratic
Republic (GDR) on 3 October 1990

Head of state: Frank-Walter Steinmeier (as of January 2017)

Head of government: Chancellor Angela Merkel (as of November 2005)

Capital: Berlin

The five largest cities: Berlin (3.5m inhabitants), Hamburg (1.7m inhabitants), Munich (1.4m
inhabitants), Cologne (1m inhabitants), Frankfurt am Main (732,688 inhabitants)

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Official language: German

National holiday: 3 October (Day of German Unity)

Membership: European Union, G8, G20, NATO, OECD, OSCE, UN

Religions: Roman Catholic (28.5 percent), Evangelical Church in Germany (26.5 percent),
Muslim (almost 5 percent), other (almost 4 percent), without confession (36.2 percent)

Time zone: CET

Climate: moderately cool Westerlies climate, between the oceanic climate of the Atlantic and
the continental climate of eastern Europe

Economic output GDP (per capita): $41,936.06

Labour force: 44.3 million

Average annual gross income per full-time employee: €33,396

International vehicle code: D

Internet TLD: .de

Telephone country code: +49

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Introduction to Culture
Values
Germans place a high priority on structure, privacy and punctuality. The German people embrace
the values of thriftiness, hard work and industriousness and there is great emphasis on making
sure that "the trains run on time." According to Passport to Trade 2.0, an online business
etiquette guide by the University of Salford in Manchester, England, "Germans are most
comfortable when they can organize and compartmentalize their world into controllable units.
Time, therefore, is managed carefully, and calendars, schedules and agendas must be respected."

Germans are stoic people who strive for perfectionism and precision in all aspects of their lives.
They do not admit faults, even jokingly, and rarely hand out compliments. At first their attitude
may seem unfriendly, but there is a keen sense of community and social conscience and a desire
to belong.

Languages
Unsurprisingly, the official language of the country is German. More than 95 percent of the
population speaks German as their first language, according to Angelo State University's Center
for International Studies. Other languages spoken include Serbian in eastern Germany; North and
West Frisian, spoken around the Rhine estuary; and Danish, primarily spoken in the area along
the Danish border. Romani, which is an indigenous language, Turkish and Kurdish are also
spoken.

Religion
Christianity is the dominant religion, with 65 to 70 percent of the population identifying
themselves as Christian. That number is 29 percent Catholics. Muslims make up 4.4 percent of
the population, while 36 percent are unaffiliated or have a religion other than Christianity or
Muslim.

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German food and drink
Germans love rich, hearty cuisine, though each area of Germany has its own definition of what a
traditional meal looks like.

Pork is the most consumed meat, according to the German Food Guide. Schweinshaxe (braised
pork hock) and Saumagen (pork stomach) are a couple of traditional pork dishes.

Bratwurst, a form of sausage, is closely associated with German food. Cabbage, beets, and
turnips are commonly incorporated into meals, as they are native to the region, and potatoes and
sauerkraut are also stars of German cuisine.

Beer is the most popular alcoholic beverage, and the country is known as the birthplace of a
number of beer varieties, including Pilsner, Weizenbier (wheat beer) and Alt. These beers were
crafted according to Reinheitsgebot, or the "Purity Law," a 16th-century Bavarian law that
decreed that beer could only be brewed from barley, hops and water, according to NPR. Brewers
used the yeast available in the air. Brandy and schnapps are also favorite German alcoholic
beverages.

The arts
Culture doesn't just refer to how people interact and look. "Culture also means refined
intellectual, artistic and creative achievement, for example as in cultural knowledge, or a cultured
person," Cristina De Rossi, an anthropologist at Barnet and Southgate College in London, told
Live Science.

Germans have made tremendous contributions to classical music, and the traditions of famous
German or Austrian composers such as Johann Sebastian Bach, Wolfgang Amadeus Mozart,
Ludwig van Beethoven, Johannes Brahms, Richard Wagner and Gustav Mahler live on today.

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With their penchant for precision and engineering, it is not surprising that Germans have a strong
tradition of printmaking by woodcut and engraving. There is also a strong representation of all
phases of architecture — including Romanesque, Gothic, Classicist, Baroque, Rococo and
Renaissance — represented in cathedrals, castles and public buildings. One well-known example
of classic German art is the Brandenburg Gate, a former city gate that is now used to symbolize
Berlin's unity.

Business Culture

The desire for orderliness spills over into the business life of Germans. Surprises and humor are
not welcomed. Everything is carefully planned out and decided upon, with changes rarely
occurring after an agreement is made, according to the German Business Culture Guide.

There is a high regard for engineers in German, as evidenced by the country's success in the
automotive industry. Because of this high level of respect for hands-on expertise, companies tend
to be headed by technical experts rather than lawyers or those with a financial background.

Workers at all levels are judged heavily on their competence and diligence, rather than
interpersonal skills. Communication with co-workers as well as outsiders tends to be direct and
not always diplomatic.

Holidays and celebrations


Germany celebrates many of the traditional Christian holidays, including Christmas and Easter.
German Unification Day on October 3 marks the reuniting of East and West Germany and is the
only federal holiday.

While the country's big beer bash is called "Oktoberfest," it starts each year on a Saturday in
September and ends 16 to 18 days later, on the first Sunday in October. The tradition started in
1810, with the wedding of Crown Prince Ludwig of Bavaria to Princess Therese von Sachsen-
Hildburghausen, according to the city of Munich.

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Effect of Culture on Business
Most people associate German business culture with efficiency, quality and high technical
standards. With the fifth largest economy in the world and a great degree of openness to
international trade and business, Germany has established itself as a key economic power on the
global stage making doing business in Germany more attractive than ever.

Doing Business in Germany without adequate cross cultural awareness, however, is a risky
proposition. The cultural values of German business culture at the root of the country’s economic
success can also prove a source of cross cultural misunderstanding for global companies doing
business in Germany.

Germany has a long history of Musical talent and interest. This interest has rubbed of into their
current modern culture. Germany is the 5th largest market in the world for the sale of music
records and it can be determined that music still to this day plays a significant part in their
culture. Germany also has had a massive influence by television. Germany’s Television market
is the largest in Europe, with 34 million household that have a TV. Around 90% of German
households have cable or satellite TV, and viewers can choose from a variety of free-to-view
public and commercial channels. Sport also plays a major role in German culture. Motor Racing
in a number of forms, the most popular being Formula 1 and Deutcshe Tourenwagen Masters
(DTM), the popularity of racing has been spurred on by the success of Michael Schumacher in
F1. Soccer is also very popular with the national competition being the Bundesliga, in which
many of Germany’s favourite players participate. Current German Soccer heroes include
Michael Balak, Miroslav Klose and Lukas Podolski.

Germans are a practical people so if a business was to create a product for the market it would
need to have a clear purpose and be seen to be of some working value. This is why practical
goods are very popular in Germany. Home entertainment and personal entertainment items are
also becoming of high demand, in 2006 Television set sales jumped 164% on the previous year’s

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sales. Also a German mobile phone company released a statement saying that on the opening day
of the release of the iPhone it had sold 10,000 units, this is the most of any other mobile phone
release this company has seen.

HIERARCHICAL COMPANY STRUCTURES

German business culture places a great value on hierarchy. German businesses therefore follow a
strict hierarchical structure, where decisions tend to be made at the top and communication is
usually vertical. Status is acquired and assigned on the basis of merit, and the highest positions in
a German company will be held by the most technically qualified and experienced employees.
For international organizations doing business in Germany this hierarchical structure can affect
negotiations and meetings which may seem to take longer than expected. You may perceive the
plethora of procedures and policies as excessively slowing things down and creating mistrust. In
truth, your German counterparts are most likely looking closely at all details and waiting for
decisions to be made at the appropriate level. While decision making processes may be slow, the
final result will be of the highest quality, as German products are renowned to be.

DIRECT COMMUNICATION STYLE

German businesspeople tend to communicate in a very direct manner. They will give you their
opinion openly and straightforwardly and they will expect the same from you and your
colleagues. Humour does not tend to be valued or used in business, so be aware that using
humour can be inappropriate and unprofessional. You and your organization need to be aware of

this cross cultural difference as your German counterparts can otherwise be seen as blunt and
undiplomatic. In negotiations, you should read any criticism as a constructive contribution to
improve the outcome, rather that an attack of the person in charge. If you are working under a
German manager, don’t expect praise, as a good job done is the minimum you will be required to
do.

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Understanding German business culture and developing the cross cultural skills to decipher its
influence on business relationships with your German counterparts makes the difference between
a profitable venture and a failed one when doing business in Germany. Cross cultural awareness
can help you tip the balance of negotiations with German businesses in your company’s favour,
greatly contributing to your company’s global success. Cross cultural awareness should form
part of the know-how of all internationally focused organisations and can be developed and
harnessed through Communicaid’s bespoke cross cultural training solutions.

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Statistics

Age Distribution

People Of Germany

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Technology Statistics

Natural Gas Statistics

Electricity Statistics

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Oil Statistics

Geography Statistics

GERMANY COUNTRY GROWTH V/S WORLD GROWTH V/S GDP GROWTH

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Bringing German culture to India
Products suitable for India

It comes as no surprise that Indian consumers show a high level of loyalty towards local brands.
They have been consuming a plethora of Indian ‘local champion’ brands that have been around
for decades ranging from Amul to Zandu Balm. According to the ‘BRIC Branding Survey’ of
German business consultancy, globeone, 76% of surveyed urban consumers in India agreed that
buying local brands is at least relatively important for them. This is especially relevant for product
categories such as food, detergent and clothing. When thinking about these products, the first
brands that come to the mind of at least every second consumer, are Indian.
The India edition of the ‘BRIC Branding Survey’ also revealed that Indian consumers, especially
those from higher income segments, attribute a high level of importance to owning prestigious –
often foreign – brands.
The brands most highly-associated with a ‘prestige factor’ by these consumers are first and
foremost thought to have a German brand origin, followed by the USA and Japan. A fact that
explains the reason for ‘premium prices’ charged for German luxury brands. The findings also
suggested that German brands can further leverage on many attributes on which they receive
substantially more positive perceptions than brands from other countries. They include product
excellence properties such as “excellent quality”, “high durability” and “outstanding design” and
Indian consumers credibly assign these to brands of German origin. These insights can be smartly
utilized for even more success in the Indian market. For 69% of the respondents, especially those
in the higher income groups, brand origin is an important factor in their purchase decision process.
The image of brands with German origin is particularly preferable. This is one of the few
competitive advantages that cannot be easily imitated, particularly in industries where brand
association with Germany is prominent and where Germany has long had a global stronghold, such
as automotive and engineering. Thus, emphatically highlighting the German origin can, for
example, provide a shortcut to emphasizing these characteristics in a cost efficient manner for
German B2C as well as B2B brands.

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The German brands with the highest awareness rates in India are sportswear giant Adidas (79%),
consumer goods brand Nivea (73%), insurer Bajaj Allianz (68%), followed by automotive brands
BMW (65%) and Mercedes–Benz (60%). Despite the traditional dominance of German
automotive,
and Mercedes–Benz were outperformed by German consumer brands with an even stronger brand
history in India. In the eyes of Indian consumers, Adidas is not only the most well-known but also
the most popular German brand, with 57% of consumers claiming that they like the brand. In the
popularity stakes, Adidas is closely followed by Puma and Nivea (both 52%).
However, German brands do not enjoy a perfect scorecard in India – only 28% of the respondents
believe German brands are closely oriented towards “meeting local customer needs”, compared to
56% for the Indian brands. Furthermore, local brands perform more strongly in offering “good
value for money” and “good after-sales service” – which are strong purchase drivers in the Indian
market. On these attributes, German brands have more difficulty in India. The relatively high
prices – about 68% of Indian consumers consider German brands to be expensive – and, in many
cases, the premium positioning of German brands are likely causes. Thus, despite the good
reputation and consumer preference of German brands, they are purchased infrequently in many
product categories and face potential barriers to gaining a significant share in the market.

List of German Companies in India


India Brand Equity Foundation (IBEF) commissioned KPMG to undertake a study to capture the
experiences of German companies in India.
A useful guidelne for MNCs seeking to enter India, this report synthesises the insights and
strategies of top German companies with an established presence in India.
India is a large and growing market. More than 80 per cent of the companies stated that India is a
large market with significant growth potential.

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India is emerging as a global manufacturing hub
65 per cent of the manufacturing companies included as part of the study have established
manufacturing facilities in India and 30 per cent are planning to setup a manufacturing base in the
near future.
India is a services hub
German companies in India have successfully leveraged the advantages that India offers to set up
R&D facilities and Business Process Outsourcing (BPO) operations.
Future Outlook
German companies are positive about the future outlook of India and plan to strengthen their
presence here. Their plans are in line with the role they envisage India to play in their global
strategy.

The Complete List of Listed Companies in Germany


S.No. Company Trading Symbol Sector Country
1 1&1 DRILLISCH DRI Telecommunicat Germany
AG ion
2 11 88 0 TGT Telecommunicat Germany
SOLUTIONS AG ion
3 3U HOLDING AG UUU Telecommunicat Germany
ion
4 4 SC AG VSC Pharma & Germany
Healthcare
5 A.S.CREATION ACWN Consumer Germany
TAPETEN NA
6 A.SPRINGER SE SPR Media Germany
VNA
7 AAP AAQ Pharma & Germany
IMPLANTATE AG Healthcare

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8 AAREAL BANK ARL Banks Germany
AG
9 ACCENTRO E7S Financial Germany
R.EST.AG O.N. Services
10 AD PEPPER APM Media Netherlands
MEDIA EO 0,05
11 ADIDAS AG NA ADS Consumer Germany
O.N.
12 ADLER ADD Consumer Germany
MODEMAERKTE
AG O.N.
13 ADLER REAL ADL Financial Germany
ESTATE AG Services
14 ADO ADJ Financial Luxembourg
PROPERTIES S.A. Services
NPV
15 ADVA ADV Technology Germany
OPT.NETW.SE
O.N.
16 AHLERS AG ST AAH Consumer Germany
O.N.
17 AHLERS AG VZO AAH3 Consumer Germany
O.N.
18 AIRBUS SE AIR Industrial Netherlands
19 AIXTRON SE NA AIXA Technology Germany
O.N.
20 ALL FOR ONE A1OS Software Germany
STEEB AG
21 ALLIANZ SE VNA ALV Insurance Germany
O.N.
22 ALSTRIA OFFICE AOX Financial Germany
REIT-AG Services
23 ALZCHEM SFP1 Software Germany
GROUP AG
24 AMADEUS FIRE AAD Industrial Germany
AG

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25 AROUNDTOWN AT1 Financial Cyprus
SA Services
26 ARTNET AG NA ART Retail Germany
O.N.
27 ATOSS AOF Software Germany
SOFTWARE AG
28 AUMANN AG AAG Industrial Germany
29 AURUBIS AG NDA Basic Resources Germany
30 AVES ONE AG AVES Transportation Germany
O.N. & Logistics
31 B.R.A.I.N. NA BNN Chemicals Germany
32 BASF SE NA O.N. BAS Chemicals Germany
33 BASLER AG O.N. BSL Industrial Germany
34 BASTEI LUEBBE BST Media Germany
AG O.N.
35 BAUER AG B5A Construction Germany
36 BAY.MOTOREN BMW3 Automobile Germany
WERKE VZO
37 BAY.MOTOREN BMW Automobile Germany
WERKE AG ST
38 BAYER AG NA BAYN Chemicals Germany
39 BAYWA AG NA. BYW Industrial Germany
40 BAYWA AG BYW6 Industrial Germany
VINK.NA. O.N.
41 BB BIOTECH BBZA Pharma & Switzerland
NAM. SF 1 Healthcare
42 BECHTLE AG BC8 Software Germany
O.N.
43 BEFESA S.A. BFSA Industrial Luxembourg
44 BEIERSDORF AG BEI Consumer Germany
O.N.
45 BERTRANDT AG BDT Automobile Germany
O.N.
46 BET-AT- ACX Retail Germany
HOME.COM AG
O.N.

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47 BILFINGER SE GBF Industrial Germany
O.N.
48 BIOFRONTERA B8F Pharma & Germany
AG Healthcare
49 BIOTEST AG ST BIO Pharma & Germany
O.N. Healthcare
50 BIOTEST AG VZ BIO3 Pharma & Germany
O.N. Healthcare

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Bibliography
1. https://www.ibef.org/pages/german-companies-in-india
2. https://www.destatis.de/EN/Homepage.html
3. https://www.infodriveindia.com/india-trading-partners/germany-imports.aspx
4. https://www.statista.com/topics/1903/germany/
5. https://www.maiervidorno.com/german-brands-india-seizing-untapped-potential/
6. https://www.wbs-law.de/eng/doing-business-germany/international-trade/german-trade-india/
7. https://www.everyculture.com/wc/Germany-to-Jamaica/Germans.html
8. https://globaledge.msu.edu/countries/germany
9. http://blog.themarketinganalysts.com/2014/05/a-brief-introduction-to-german-culture/
10. http://businessculture.org/western-europe/business-culture-in-germany/
11. https://www.worldbusinessculture.com/country-profiles/germany/culture/
12. https://www.kwintessential.co.uk/resources/guides/guide-to-germany-etiquette-customs-
culture-business/

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