THE CULTURE OF

GERMANY

CASE STUDY:
Walmart’s Failure In
Germany

Supervised by : Mme. FARIH Hanaa

 PLAN

01 Elements of German
Culture 02 Cultural Onion
Model 03 German Leadership
Style

04 German Negociation
Style 05 German communication
style 06 Case Study
01
Elements of
German Culture
Federal Republic of
Germany
Capital: Berlin
Population : +82.000.000
Demonym : German
Area: 357.022 Km²
Currency: Euro (€)
Language: Standard German (Officiel)
Chancellor: Angela Merkel (CDU)
Head of state: Frank-Walter Steinmeier
Germany’s Religious affiliation Religion

29%
38%

27%
2%
4%

Roman Catholic Protestant

Muslim Orthodox Christian
Other
 Social Organization

Upper class

Only a few count Middle class

themselves among the
social upper class. Most Germans sorted
German Economic Institute themselves into the
(IW) middle class.
German Economic Institute
Lower class (IW)

With a single household

net income less than
1.121 euros a month,
ARTS & LITERATURE
Form of government

 Germany is a democratic,
federal parliamentary
republic

  It has a bicameral

parliamentary system
 Economic system

Industry Services

The economy of Germany is a

highly developed market
economy, with the largest
national economy in Europe

Agriculture
02
Cultural Onion
Model
German Onion Model

01 Symbols
02 Heroes

03 Rituals
04 Values (Core)
 Symbols

Brandenburg Religious
Gate Symbols

18th century neoclassical Crucifix

monument in Berlin18th-century The shape of the Pretzel
 Modern Culture Symbols

European Union Flag

German Flag
 Heroes

Pope Benedict IVI Angela Merkel

A retired prelate of the Catholic Church who German politician serving as the
served as the head of the Church and the chancellor of Germany since
sovereign of the Vatican City State 2005
 Rituals

Oktoberfest Schultüte
Two-week festival which is It’s a traditional German gift that
visited by people from all corners was established during the 19th
of the world century
 Core Values

1. Germans tend to balance traditional Christian values with progressive, liberal and
inclusive attitudes

2. Modern and advanced society in lots of ways

3. German people tradionally have strong family values

4. German people are conscientious and hard-working

5. Germany is commited to renewable energy and protecting the environment

03
German
Leadership
Style
LEADERSHIP STYLES IN
GERMANY
Others management information

● German managers tend to be procedural

● They like to get right to the point.

● In a workplace setting, compassion is low

and interpersonal relationships are
straightforward and stern.
The characteristics of an effective German leader

High Low
performance compassion

High High
participation orientation
 The goals of a German
manager

Product quality Product service

 03
German
Negociation Style
 “Like or not, you are a negotiator…
Everyone negotiates something every
day.”

—ROGER FISHER, BRUCE PATTON, WILLIAM URY

EXAMPLES

Discussing the terms Convincing a client Working out a

of a job offer with a to accept a late conflict with a
recruiter. delivery. coworker.
How Do Germans
negotiate?
01
Formal
Titles are very important to
Germans. They prefer to deal
with titled or degreed
individuals.
02
Ponctual
Punctuality is the soul of
business to Germans. They
are always on time and could
be described as pre-planners.
03
Commited
Negotiation provides the
basis for contracts and the
foundation for fruitful and
long-term cooperation with
Germans.
 04
Logical & Attentive
Negotiation is based on a lot of expert
knowledge and facts.
04
German
Communication
Style
German Communication
Styles

01 02
Verbal Non-Verbal
Verbal communication Non-verbal
is the use of words to communication is the
convey a message process of generating
meaning without the
use of spoken words.
 Verbal Communcation

- Direct Communication: German communication styles are quite direct and functionally
purposed. People generally speak honestly, clearly and explicitly to arrive straight to
the point. Criticism may be delivered vaguely in order to remain polite and avoid
offence, but a German’s intention and meaning is usually clear and apparent through
their precise word choice. This communication style can cause Germans to interpret
others’ words literally. It can also give some foreigners the impression that they are
quite brash or blunt. However, it is simply their way of ensuring clear communication.

- Humour: Germans often laugh about the irony of situations, wordplay and innuendos.
Furthermore, as Germans are quite direct communicators, they may take jokes literally
– for example, missing the sarcasm in the speaker’s tone. This has seen the German
people be stereotyped as humorless and serious.
 Non-Verbal Communcation
 Personal Space: Germans usually keep about an arm’s length distance between one
another when talking, and sometimes a little extra between men and women depending
on how well they know each other. Standing too close to someone can be seen as an
invasion of their privacy.

 Eye Contact: Direct eye contact is expected, especially when speaking about a serious
matter. It conveys sincerity and approachability. Avoiding eye contact may be seen as an
indication of dishonesty or a lack of confidence.

 Expression: Some Germans may have quite a serious exterior upon first meeting
people, reserving smiles for friends. Once they are familiar with someone, they
generally become very animated.
CASE STUDY

WALMART’S
FAILURE IN
GERMANY
 WALMART

Walmart is the world's largest company by revenue, with US$548.743 billion

 SUCCESS OF WALMART IN WORLD

‘’Two things about Sam Walton which

distinguishes from almost everyone else I know.
First, he gets up every day bound and
determined to improve something. Second, he is
less afraid of being wrong than anyone I’ve
ever known. And once he sees he’s wrong, he
just shakes it off and heads in another
direction.” – David Glass.
THE 4 REASONS FOR WALMART’S SUCCESS

CHECKING
  LOW PRICE COMPETITION

EMPOWERING
DISTRIBUTION
EMPLOYEES
Initial state of
Walmart in
Germany
Initial state of Walmart in Germany

Spar Handels Wertkauf

Why Walmart entered Germany?

The retail market in the United States was getting saturated without much growth
Why Walmart entered Germany?

The population of the US was not increasing much and hence there was no growth
opportunity from that front as well.
Why Walmart entered Germany?

Walmart wanted to leverage its

successful strategy of everday
low price in other countries.
Why Walmart entered Germany?

VS
 THE CULTURAL REASONS FOR WALMART’S
FAILURE IN GERMANY

Walmart’s cultural insensitivity:

Lack of awareness about differences and

similarities that exist between cultures.

● Using plastic and junk bags during bagging

purchases for customers.
● Requiring checkout people to flash smiles at
customers.
● Requiring employees to stand and chant to
build morale.
The specific Difference in German
Consumer behavior and Culture in
comparison with US consumers:

● German customers don’t have the habit to

spend a lot of time shopping.
● German customers do not like to be assisted
by WalMart’s store assistants.
● German consumers like to see advertised
discount products at their eye level.
The Inefficient Top Management:

● Adopting English as the official language

in many of Walmart’s stores.
● Ignoring the complexities and the legal
framework of the German retail market.
Recommandations & Suggestions

Political, Social, ‘’Go global and act Employment of

Economic and Cultural local’’ Cross-Cultural
Analysis of the Country Management
approaches.
Conclusion
 Team Members

Rajae Achraf Imane Mariem

Abdelkhaleq Gaizi Berrich Atif