Doing Business Ion Germany Essay Research Paper

Doing Business Ion Germany Essay, Research Paper

DOING BUSINESS IN GERMANY

Like many other northern Europeans, Germans tend to take a deal-focused, low-context and monochronic approach to doing business. North Americans and Australians find Germans relatively formal, southern Europeans often describe them as reserved and most Asians consider them very direct.

Of course there are important north/south and east/west differences in German business customs, not to mention significant individual variations. Keeping this in mind, the following profile describes the important general tendencies in business behavior you are likely to encounter whether your meeting takes place in Hamburg or Munich, Leipzig or Cologne.

Language of Business

Many German managers are comfortable conducting business in foreign languages, especially English. Larger companies usually have competent English speakers on staff. However, since the language of business is the language of the customer, a professional export sales team should include a fluent speaker of German.

If the purpose of your meeting is to negotiate a purchase, a joint venture or strategic alliance, check with your counterparts about the possible need for an interpreter.

Making the Initial Contact

Banks play a powerful role in the German business world. Since it is always useful to have a referral you may want to ask your international bank to arrange an introduction. However, in contrast with more relationship-focused business cultures such as Japan, Korea, Brazil or Saudi Arabia, making direct contact is also a viable option in Germany.

Send a letter in good business German along with basic information about your company and the purpose of the meeting. Request an appointment with two to three weeks’ advance notice. If you are making a ‘cold’ approach it would be appropriate to address correspondence to the department concerned rather than to a specific individual. Once you have been introduced or have a referral you may address your letter to the appropriate person.

If you do not speak the language, offer to bring along someone to interpret. Your counterpart will usually respond that this will not be necessary but it is polite to make the offer.

Avoid asking for a meeting during the months of July, August and December as well as during the Easter holidays. Also avoid Friday afternoons and late afternoon appointments on any day.

Deal-Focused

Most Germans tend to be deal-focused in business. That means they are generally ready to negotiate based on the perceived merits of the deal and do not feel the need to develop a close personal relationship with the other party before talking business. Rather, rapport-building takes place while the two sides are discussing the deal. Visiting negotiators can usually expect to get down to business after just a few minutes of general conversation.

Orientation to Time

Germany is a strongly monochronic culture. That is, Punktlichkeit is very important, schedules and meeting agendas are rigidly adhered to and business meetings are rarely interrupted. Being on time may actually mean arriving a few minutes early: tardiness signals unreliability. If you are half an hour late for a meeting you may be half a month late with your delivery! Therefore, should you be unavoidably detained be sure to phone your counterpart as soon as possible to reschedule the meeting.

In Frankfurt or Dusseldorf expect to follow a prepared meeting agenda whereas in Paris or Lyon business discussions are often less structured. Your meeting will rarely if ever be interrupted by phone calls or unscheduled visitors.

Formality, Hierarchy and Status

German society retains a certain level of social formality which is reflected in business protocol. Formal behavior is a way to show appropriate respect to people with high rank, professional titles and higher academic qualifications, especially in southern Germany. This can be very important since more German managers have Ph.D’s than anywhere else in the world. About 40% of the board members of the 100 largest corporations have a doctor’s degree.

Address Dr. Wilhelm Schmidt as “Dr. Schmidt” or “Herr Doktor.” His female colleague with a Ph.D would be “Frau Doktor.” It is polite to address less exalted business contacts with Herr’, Frau’ or Fraulein’ followed by their last name. This includes secretaries. Whereas in the U.S. for example female secretaries are usually addressed by their first name, in Germany it is Frau Braun,’ not Waltraudt.’ Also remember that women about 20 or older should be addressed as Frau whether married or single.

As the case with most other European tongues, the German language employs two different personal pronouns for you. Sie is the formal pronoun appropriate for business relationships while the informal Du is reserved for close personal friends, small children and pets. Stay with titles, family names and Sie unless and until your counterpart suggests moving to a less formal mode of address.You can expect to work with a German business counterpart for many years without shifting to first names.

German formality is also expressed in meeting and greeting protocol. Handshakes are expected whenever you meet or leave someone and this greeting is not always accompanied with a broad smi

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