A German Culture Overview:
Official name – Federal Republic of Germany
Population – 82, 329, 758*
Official Language – German
Currency – Euro (EUR)
Capital city – Berlin
GDP – purchasing power parity $2.863 trillion*
GDP Per Capita – purchasing power parity $34, 800*
A German Overview:
Since unification in 1989, Germany is Europe’s most populous nation and the continent’s
largest economy. Situated at the heart of the European continent, and fundamentally
shaped by Europe’s history, it is characterized by deep regional identities while at the same
time also conveying a “national” German culture. In today’s global business environment,
developing successful business strategies and valuable business relationships, based on an
awareness of this German culture, is essential for your organization.
Germany’s culture is based on many different things, which include language and
literature, art galleries and museums, music, and education.
Religion:
Most of the German citizens are Christians. Although thirty-five percent of the population
belongs to the Roman Catholics, thirty-sixth percent is Protestant (mostly Lutheran
though), two percent are Muslims, and about twenty-five percent of the Germans have no
official religion. The religion goes by town.
Culture:
The greetings in this culture consist of the most common the handshake. Some gestures
used in this culture are not chewing gum in public it is inappropriate. Talking with your
hands in your pockets is disrespectful. They each pay for their own food and entertainment
unless a special occasion. Young people may often live together before or instead of
marriage.
Family Life:
In many urban areas both male and female work, mainly because this is the only way they
can afford the lifestyle that they want. The size of the German family on average has one
or two children in the urban areas, while it is also culturally acceptable that many families
live under the same roof in rural areas.
Corporate Culture:
To start your business relationship with a German company, you have to arrange an
appointment first. It is necessary that person wear black, blue and white in the formal attire
in business, which they find them the colors of trust and success.
German business culture has awell-defined and strictly observed hierarchy, with clear
responsibilities and distinctions between roles and departments. Professional rank and
status in Germany is generally based on an individual’s achievement and expertise,
therefore academic titles and backgrounds are important. They show expertise and
knowledge.
The decision-making process is slow, as every detail of your proposal will be carefully and
thoroughly examined.
Greetings:
•Germans shake hands in greeting. Note that you will have to shake hands with
everyone in a room before a meeting or a conference – an ignorant wave will not
do. If you have to leave early, shake everyone’s hand again starting with the most
senior person and working down.
•The German handshake is firm and brief, conveying confidence and reliability.
Make sure yours is the same; a weak handshake will inspire insecurity.
•First names are generally onlyused with family and close friends, so always use
last names and appropriate titles of courtesy. It is also common for colleagues that
have worked together for years to still keep this level of formality.
•If you do not speak German,be careful of addressing a person in English. While
Germans can speak very good English, some may well feel offended by the
presumption.
•Appropriate welcome topics are: football, recent holidays, work, and beer.
•Avoid discussing personal matters – especially during business negotiations. Do
not mentionWorld War II, the Holocaust.
•Germans do not find it hard to say ‘No’, ‘I can’t’, or ‘This is impossible’, so you
will get a straightforward answer.
The Art of Conversation:
Key Cultural Concepts and Values of German Culture:
Focus on Facts:
Objective facts are considered essential in decision-making and problem solving; in
business negotiations, for example, the preferred approach to successful decision making is
based on logic and analysis of information, rather than on intuition and well developed
personal networks.
Focus on Tasks:
In their approach to work, Germans tend to focus on achieving the task at hand. This,
coupled with their well-defined structures, implies that interpersonalrelationships play a
secondary role in business dealings. The attention paid to targets to be achieved is
evidenced, for example, in the precision of timetables, meeting planning and achievement
of milestones. Close adherence to time schedules is also considered vital.
Communicating:
A vital component to understanding business negotiations is the direct, seemingly
confrontational, German communication style. In business discussions or planning, for
example, openly-expressed criticism tends to be directed at aspects of the problem, project,
or business at hand; it should not be considered as personal disapproval. Individualist, yet
consensus-seeking: As most Western European cultures, Germany is marked by a strong
sense of individualism. Nevertheless, the desire to achieve one’s own goals and successes
is coupled with a keen sense of responsibility for “the good of the community;” for
example, in many business decisions, not only the financial benefits to the company are
important, but also those of its employees. The structure of much German business
decision-making requires consensual input from both employers and employees— which
can render decisions comparatively slow.
Doing Business in Germany:
Germany has played a central role in Europe’s history, and is today a major player in its
economic and political organizations. Following the country’s reunification, Germany now
has the world’s 3rd most productive economy in the world. Situated at the centre of
Europe, Germany is an ideal base for tapping into all other European markets. However,
before considering doing business in Germany, it is necessary to take into consideration a
number of aspects vital for your success.
German working practices:
Punctuality is essential. Arriving even five or ten minutes after the appointment time is
considered late—and disrespectful. If running late for an appointment, it is best to notify
the person.
Appointments are made for most situations, and sometimes several weeks in advance.
Decision-making is often a slow and detailed process. Do not expect significant
Conclusions to be reached based on spontaneous or unstructured results.
Structure and hierarchy in German companies:
German business culture has a well-defined and strictly observed hierarchy, with clear
responsibilities and distinctions between roles and departments.
Professional rank and status in Germany is generally based on an individual’s achievement
and expertise in a given field. Academic titles and backgrounds are important, conveying
an individual’s expertise and thorough knowledge of their particular area of work.
In formal German business meetings, it is customary for the highest-ranking person to
enter the room first. However, in more informal business situations this is less important.
Working Relationships in Germany:
The Germans are very private, evidenced, for example, in the strict separation between
private life and work. It therefore takes time to forge more personal relationships.
Business relationships are often based on mutual advantage, with the overall task as the
central focus.
Business practices in Germany:
First names are generally only used with family and close friends and colleagues.
Therefore, always use last names and appropriate titles. You will often find that colleagues
who have worked together for years still maintain this level of formality.
Business meetings follow a formal procedure. German managers work from precise and
detailed agendas, which are usually followed rigorously; moreover, meetings always aim
for decisive outcomes and results, rather than providing a forum for open and general
discussion.
German business protocol requires that colleagues should be greeted with a firm, but brief,
handshake on both arrival and departure.
In German business dealings, it is important to provide solid facts and examples to back up
proposals, given the German preference for analytical thinking and rational explanations.
German Business Etiquette (Do’s and Don’ts):
•DO maintain direct eye-contact when addressing German colleagues, especially
during initial introductions.
•DO use the formal version of you (“Sie”), unless someone specifically invites you
to
use the informal “Du” form. It is usually best to let your German counterpart take
the initiative of proposing the informal form of address (this implies readiness to
develop a personal relationship).
•DON’T discuss personal matters during business negotiations, as this is considered
to deviate from the task at hand.
•DON’T attempt to continue negotiations after a contract has been signed. Your
German colleagues may view this with suspicion, which could lead to an
unsuccessful business agreement.
•DON’T use exaggerated or indirect communication styles during business
meetings with you German counterparts. It creates an impression of insincerity and
dishonesty.
MARKET ENTRY STRATEGY :
The most successful market entrants are those that offer innovative products featuring high
quality and modern styling. Germans are responsive to the innovation and high technology
evident in U.S. products, such as computers, computer software, electronic components,
health care and medical devices, synthetic materials, and automotive technology. Germany
boasts one of the highest Internet access rates in the EU and new products in the
multi-media, high-tech and service areas offer great potential as increasing numbers of
Germans join the Internet generation. Certain agricultural products also represent good
export prospects for U.S. producers. Price is not necessarily the determining factor for the
German buyer, given the German market’s demand for quality.
The German market is decentralized and diverse, with interests and tastes differing
dramatically from one German state to another. Successful market strategies take into
account regional differences as part of a strong national market presence. Experienced
representation is a major asset to any market strategy, given that the primary competitors
