UNIVERSITY OF LÓDZ

Faculty of Economic and Sociology

Beatriz Batista Costa

09 April 2020

Cultural Aspects in Business

Negotiation in Germany
Key points
National Characteristics
Political background
Economy
Culture and History
Religion
Nationalism
Patriotism
Aspects of management
Aspects of marketing
Business etiquette in Germany:
- Structure
- Doing business in Germany
- Communication
- Body Language
- Greetings
- Cultural Models
 National Characteristics
European Union Capital: Berlin- largest city
Germany Official language and national language: German
Geographic location: Central and Western Europe
Area: 357,022 square kilometres
Borders: Denmark to the north, Poland and the Czech
Republic to the east, Austria and Switzerland to the south,
and France, Luxembourg, Belgium, and the Netherlands to
the west- total of 9 border countries
Government: Federal Parliamentary Republic led by
a Chancellor
Population: 83 million inhabitants- the second-most
populous country in Europe and the most
populous member state of the European Union
 Federal Republic of Germany , is a democratic and
a federal parliamentary republic.

The constitution emphasizes the protection of individual liberty in an

extensive catalogue of human and civil rights, and divides powers both between
the federal and state levels (Länder) and between the legislative, executive and
judicial branches.
The federalist principle is an acknowledgement of the regional structure
which has evolved through Germany's history and is an element in the division of
Political power and, in a democratic state, a guarantee of diversity, competition and
community-based politics.
background
Upon defeat of the Nazi Reich in 1945, the country was divided into four
occupied zones. Similarly, Berlin was divided into four occupied sectors. In 1949,
the American, British, and French leaders decided to unite their zones to form the
Federal Republic of Germany (FDR—West Germany). The Soviet-occupied
region became the German Democratic Republic (GDR—East Germany).
The Unification Treaty of 1990 between the Federal Republic of Germany
and the German Democratic Republic constituted the German reunification to
reunite the Germany nation.
 Germany is a great power with a strong economy. It has the largest
economy in Europe and the world's fourth-largest economy.

A highly developed country with a very high standard of living, it offers social

security and a universal health care system, environmental protections, and
a tuition-free university education.

Economy It’s a global leader in several industrial and technological sectors, especially
when it comes to manufacturing and production.
It’s one of the world’s leading exporters (behind only the US and China), with
its production focusing mainly on cars, machinery and chemical products.
Global leader in the of sophisticated and green energy industry and in
transportation infrastructures, such as motorways, railways and airports.
Germany’s free-market law do not discriminate between German and foreign
nationals when it comes to establishing or investing in companies.
 Culture in German states has been shaped by major intellectual and
popular currents in Europe, both religious and secular.

Germany has been called

"The land of poets and
Germans themself call it thinkers", because of the major

Culture
Deutschland. role its writers and philosophers
have played in the development
Germans drink a lot of beer, of Western thought.
and eat sausages and make bread
of different taste. 
Recent episodes that mark the
History The favorite sport is football. history of Germany:
First World War
Germany culture have rich and
diverse architecture. Second World War
Berlin Wall
 Christianity as the largest religion in Germany, with
66.8% identified themselves as Christian (3.8% of those not
being church members).

Protestants constituted 31.7%

Religion Roman Catholics constituted 31.2%

Orthodox believers constituted 1.3%

Irreligion:
- strongest in the former East Germany (used to be
predominantly Protestant before state atheism);
- in major metropolitan areas.
Nationalism

German nationalism is an ideological notion which

promotes the unity of Germans and German-speakers into
a nation state. German Nationalism emphasizes and takes
pride in the national identity of Germans.
The Return of Economic Nationalism in Germany:
Germany’s new National Industrial Strategy 2030
advocates an aggressive industrial policy:
Attempting to further raise the German share of
manufacturing; restricting non-EU imports of intermediate
goods; promoting national champions in Germany and the
European Union; preventing some foreign takeovers and
ramping up state support for certain technologies.
 After World War II, generations of
Germans, learned that Hitler's acts and
German pride were incompatible.

“German pride is a special problem,'' said Micha

Brumlik, a sociologist.
Patriotism ''In the west, we tried at best for a sophisticated
patriotism -- in the Constitution, in the good Germany
has done since the war. But in the east, the patriotism was
of the blunter, nationalist kind.
We need to be very careful about what pride, if any, we
now embrace.‘’

Despite of all, German people are very

patriotic.
 Aspects of management
Germans tend to work long hours, although strong unions mean working hours are technically strictly regulated.

Do not expect to come across a nation of entrepreneurs. Most Germans are in employment, rather than self-employed.

Expect many layers of management and a complex system of decision makers, some of whom will be specialists from
outside the company.

German businesses are hierarchical, usually run by a hands-on board of directors.

Job positions are compartmentalized, and roles are clearly defined.

Keep standards high, because the performance is very important.

 A popular source of
advertising is through trade
magazines as they provide a
key source of information
managers and decision
makers in all sectors of the
German industry (over 72
percent of Germans regularly
read a newspaper and trade
Aspects of
journals).
marketing
Cultural sensitivity in
Germany and understanding
of protocol is paramount to
effective marketing. The
intricacies of a nation its
beliefs, even its superstitions
can make or break your
business. Know the market,
immerse yourself in it.
Of course there are other
routes that you may wish to
consider when starting up a
business in Germany and you
will find an advertising agent
will be able to help and advise
on other sources of
advertising.
If you are making an audio or
visual advertisement of your
product, all spoken or written
words must be in German,
which is the country’s official
and widely spoken language.
Although many Germans
understand English, they take
pride in their native language.
 Most aspects of German living and working are defined and
regulated by structure. This is evident in all economic, political
and even social spheres.
Business
etiquette in Rules and regulations allow people to know what is expected
so that they can plan their lives accordingly. Germans believe that
Germany: maintaining clear lines of distinction between people, places, and
STRUCTUR things is the surest way to lead a structured and ordered life. 

E Business and business etiquette in Germany is viewed as being

very serious. This results in a low degree of flexibility and
spontaneity in attitudes and values. 
Business
etiquette in
Germany: When doing business in Germany, it is essential that you appreciate that
the business etiquette in Germany is of great importance. Germany is a
nation that is strongly individualistic. It always demands a lot of respect.
DOING Therefore the highest of standards are expected. Any unethical behavior
might seriously harm all future business negotiations.

BUSINESS
IN
GERMANY
DOING BUSINESS
IN GERMANY
Being very well organized: Germans are always well
organized, preferring predictability over spontaneous
decisions. You will see their love for order both in business
and private life. They work by systematically ticking off
tasks according to plan.
Punctuality: Being on time is an extremely important
matter when doing business in Germany. Make sure you’re
there 5-10 minutes ahead to show respect for your
prospect’s time.
Agenda: Keeping in mind Germans are good organizers, so
aim to prioritize the issues to be discussed in a way that
will allow for the business meeting to conclude within the
given timeframe.
Dress code: The dress code in the German world of
business remains formal and quite conservative. When
negotiating a deal, it’s best to stay on the safe side
and stick to formal business attire.
 First impression: Make sure you’re thoroughly prepared for the first meeting. Do your homework before
to be able to answer any questions your prospects might throw at you.

DOING The initial meeting: The first business meeting serves the purpose of getting to know each other. Try to
collect as many pieces of information on your future partners as possible. Introduce yourself, explain
BUSINESS IN why you are there, mention your professional credentials and experience. Keep it always presentations
concise.

GERMANY Personal matters: There’s a strict distinction between work and private life in Germany. Asking about
personal matters or sharing your own private information is considered inappropriate business
culture. So try to keep it as professional as possible.
Deliver on the promises: delivering promises is very highly regarded. Remember never to over-
promise, as agreeing to each request. They appreciate clarity, honesty and respect. They are direct
communicators and value a person who sticks to their word.
DOING BUSINESS
IN GERMANY
Business offer: Your business proposition should give a clear image
of the value you are offering your potential client from Germany.
Make sure you provide a detailed and orderly offer.
Risk management: Germans are not particularly fond of taking
risks. As such, you should not be surprised they will listen to your
offer with some reservations.
Decision making: Business structure is hierarchical, and all the
binding decisions are made at the top management level. It is not
advisable to try to rush a decision. Be patient with your
prospects. Make sure you’re always available by phone or email to
answer any additional questions they may have. Once everything is
clear and they’re ready to decide, you will be the first to know. Good
thing about this is that once you hear the positive answer, it’s
pretty much set in stone.
Signing the deal: The final signing of the deal is usually done in a
formal manner. After the deal is done, you can invite your new
partners to a good restaurant to celebrate. This will give you a chance
to start building the relationship in a less formal manner.
 Communication

GERMAN VS STYLE OF DO NOT BE KEEP FEELINGS TO PREPARE TO BE

ENGLISH: COMMUNICATION ALARMED AT YOURSELF. INTERRUPTED.
ALTHOUGH IN BUSINESS: SEEMINGLY FRANK RELIABILITY AND GERMANS DO NOT
GERMANS GERMANS LIKE TO INTEGRITY ARE CONSIDER IT RUDE
COMMENTS.
COMMAND OF GET STRAIGHT MORE IMPORTANT TO ASK A QUESTION
GERMANS ARE THAN EMOTIONS IN DURING A
ENGLISH IS QUITE DOWN TO VERY DIRECT.
IMPRESSIVE, IT IS BUSINESS, GIVING BUSINESS. PRESENTATION IF A
CONSIDERED A SMALL TALK VERY TECHNICAL POINT
SHOW OF RESPECT LITTLE REGARD. NEEDS
TO AT LEAST TRY TO IT’S WORTH ELABORATING ON.
COMMUNICATE IN MENTIONING THAT
GERMAN. YOUR WRITTEN, FORMAL
ATTEMPTS ARE COMMUNICATION IS
SURE TO BE HIGHLY VALUED IN
NOTICED AND GERMANY.
APPRECIATED.
Body language
Make sure to maintain eye
contact when addressing your German
colleagues, especially during initial
introductions.
Never put your hands in your pockets
while speaking.
Do not point your index finger to your
own head – it is an insult.
 Greetings
GERMANS SHAKE HANDS IN THE GERMAN HANDSHAKE IS
GREETING. FIRM AND BRIEF, CONVEYING
CONFIDENCE AND RELIABILITY.
MAKE SURE YOURS IS THE SAME,
BECAUSE A WEAK HANDSHAKE
WILL INSPIRE INSECURITY.
FIRST NAMES ARE GENERALLY
ONLY USED 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 KEEP THIS LEVEL OF
FORMALITY.
Cultural Models
Hall’s Cultural Model:
• Low-Context
• High territoriality and the need for space
• Monochromic Time
• Fast Flow

Schwartz Cultural Model

• Embeddedness
• Mastery
• Hierarchy
Cultural Models

Hofstede’s- 5 Dimension Model:

• High Power Distance
• Individualism
• Masculine society
• Slight preference for Uncertainty
Avoidance
• Long-Term Orientation
Hofstede Insights
Hofstede Insights
Cultural Models
Trompenaars- 7 Dimensions of Culture:
• Universalism
• Individualism
• Specific
• Neutral
• Ascription
• Sequential Time
• Internal control
 Germans are very private people and it takes time to
build personal relationships. You will find them polite
and sometimes a little distant, but open and direct when
they want to make a point. It is important to recognize
this as a typical way of communicating.
You should be smartly dressed, a straight-talker,
efficient and decisive.

Summary Many respects, Germans are the masters of planning.

This is a culture that likes forward-thinking and
knowing what they are doing at a specific time on a
specific day.
Hierarchy is valued in Germany and there is often a
plethora of procedures and policies which can slow
things down.
Doing business in Germany requires a special
attention to some particularities, and or that, to avoid
any mistake, you should learn the business etiquette.
 Bibliography

https://eacea.ec.europa.eu/national-policies/eurydice/content/political-social-and-economic-background-and-trends-31
_en

https://www.nationsencyclopedia.com/World-Leaders-2003/Germany-POLITICAL-BACKGROUND.html

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https://en.wikipedia.org/wiki/German_nationalism

https://www.nytimes.com/2001/01/10/world/to-be-german-and-proud-patriotism-versus-the-past.html

https://www.careeraddict.com/market-a-product-in-germany

https://www.startupoverseas.co.uk/starting-a-business-in-germany/marketing-a-business.html
 Bibliography

https://businessculture.org/western-europe/business-culture-in-germany/business-etiquette-in-germany/

https://countrynavigator.com/blog/cultural-intelligence/germany/

https://itcraftapps.com/blog/15-tips-for-doing-business-in-germany-earning-trust/

https://www.todaytranslations.com/consultancy-services/business-culture-and-etiquette/doing-business-in-germany/

http://changingminds.org/explanations/culture/hall_culture.htm

http://changingminds.org/explanations/culture/schwartz_culture.htm

https://www.mindtools.com/pages/article/seven-dimensions.htm