...Doing Business in Germany September 12, 2015 Doing Business in Germany Conducting business abroad in Germany introduces a different culture and different practices. Before committing to doing business in Germany it is important to consider factors such as differences in location, language, culture, meeting etiquette, negotiation styles and business protocol. If these considerations are addressed before hand a business endeavor in Germany will have a better chance of succeeding (Varner & Beamer, 2011). Germany is a federal republic located in central Europe. Germany is the eighth largest country in Europe after Russia, Turkey, the Ukraine, France, Spain, Sweden, and Norway. It is located centrally on the European continent and borders nine other countries: Denmark, the Netherlands, Belgium, Luxembourg, France, Switzerland, Austria, the Czech Republic, and Poland (Chow, 2015). With the biggest population of all the European Union countries, Germany’s population density is one of the highest in all of Europe at over 230 persons per square kilometer. The UK, Netherlands, and Belgium are the only countries in Europe with a higher population density (Chisolm, 2011). The official language of Germany is German. As would be expected, the majority of German citizens speak German (over 100 million people). Some minority languages in Germany include Danish, Sorbian, Frisian, and Romany. Turkish, Kurdish, Polish, the Balkan languages, and Russian are the most commonly spoken...
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...Company in the Importation of Automobiles from Germany to UAE Name of Student Name of Instructor Name of Institution Date of Submission Executive Summary There are a number of challenges faced by organizations wishing to conduct business with other firms in a foreign country. The reason behind this is that the organization will be required to engage either in the importation or exportation of goods or services. The Emirates Motor Company has for many years engaged in the importation of Mercedes Benz from Germany into the UAE. One of the major challenges that the organization has suffered is lack of sufficient funding. As such, the organization has not been in a position to fully exploit the UAE market. The company also has to deal with high cost of operations. Importation activities require firms to pay for shipping and loading charges for the goods. The importer also has to incur insurance charges. The costs result in an increase in the cost of commodities making them undesirable to customers. Delays in payment also make it difficult for the company to replenish its stock. Outline 1. Executive Summary 2. Introduction 3. Literature Review a) An Overview of the Emirates Motor Company’s Import Business b) History of Importation of Mercedes Benz Automobiles from Germany to the UAE c) External Analysis of the World Automobile Industry d) External Analysis of the Trade between the UAE and Germany in Automobiles e) Internal Analysis of the...
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...McDonalds is one of the most successful restaurant chains in the world today, they have locations all over the globe and almost in every country. Their history goes all the way back to 1917 where Ray Kroc at the time was fifteen years old, in which he lied about his age to join the Red Cross as an ambulance driver, but the war ended before he finished his training. He then pursued his dream of being a piano player, but eventually he had to stop being a piano player to earn more money so he eventually became a paper cup salesman and a multi-mixer salesman. In 1954 he found a small but successful restaurant run by brothers Dick and Mac McDonald while delivering multi-mixers , and was amazed by how successful their business was. They had a very successful business even though they produced a very limited menu that only included a few items of burgers, fries and beverages. Kroc than envisioned a much bigger dream of opening McDonalds restaurants all across the United States. In 1955 he founded the McDonalds Corporation, and 5 years later Kroc bought the exclusive rights to the McDonald’s name. McDonalds today is very successful due to many success factors, one being their great promotional campaigns all over the world. One of their greatest promotion techniques is through the World Wide Web, their website today can be seen all over the world and caters to all different cultures around the globe. People all over the world may search the McDonalds website in over 100 languages...
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...Global Business and Ethics University of Phoenix Organizational Ethics and Social Responsibility MGT216 October 2nd 2010 Global Business and Ethics Business practices vary from one country to another based on the culture of origin. Understanding a country’s culture, society, and hierarchy allows business practices to run more smoothly while preventing unethical circumstances. Training allows expatriate managers to communicate in foreign languages whereas not implementing selective perception or assume that the culture is similar to their own. There are many risks associated with ethics in globalization but what role do ethics play in global business? Conducting business overseas can cause many ethical issues. Some of the possible ethical issues faced while conducting business overseas are corruption, human rights, different work environments, local customs, and cultures. By providing structure, training, and guidance to expatriates aids in preventing these ethical issues. This directional approach allows the expatriates a better understanding of the cultural norms. In addition to a better understanding of the overseas cultures, training allows the managers to have self confidence, adjust to the environment with ease, an increase in performance and relationships with foreign clientele (Trevino & Nelson, 2006). Managers will need to understand the foreign language in which the business task is assigned. According to Trevino and Nelson...
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...organization is BASF SE (BASF). Founded in 1865 and based out of Ludwigshafen, Germany, BASF SE has grown into one the world’s premier producers of chemicals and plastics. BASF SE is involved in the production of numerous chemical compounds, as well as providing chemical components to other industries that have a need for these unique chemicals in their products. Additionally, BASF SE has operations involving agricultural, and most recently they have begun to explore for and produce oil and gas through subsidiary companies. Operating on an international level that encompasses four regions of the globe, BASF SE truly has a presence throughout the world and greatly influences the global economy. Even though BASF SE was founded in and still currently operates out of Germany, the company has expanded their operations throughout the globe in an attempt to grow and expand their business capacity. The company classifies their operations into four different business units: Europe, North America, Asia Pacific, and South America/Africa/Middle East. Each one of these units is operated on their own, yet they all report back to corporate headquarters in Germany. It always the company to run more efficiently and determine what products and services are needed in each specific region. Since BASF SE is based out of Germany, it stands to reason that the sales and revenue of the North American sector of the business would be significantly smaller then the sales and revenue that the company...
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...Precision Part Inc. is looking to do business with other international companies. One of the countries that Precision part is interesting in is Germany. In order to do business in Germany, it is important to understand their business ethics and laws. By understanding the law at hand, it would give Precision Part Inc. a better understanding on how Germany conduct business and also to make sure the company is ethical. A few international countries believe in corruption. Corruption can consist of bribery and nepotism. Bribery is more common in underdeveloped countries that are looking for additional income to bring in. Bribes are expected in many countries, the United States’ 1977 Foreign Corrupt Practices Act prohibits payments made to foreign government officials with the aim of gaining or maintaining business (Here Comes the Bribe). The Foreign Corrupt Practices Act was updated in 1998 after bribery was banned from Germany. Now the Foreign Corrupt Practices Act applies to foreign firms and persons who cause an act in making such a corrupt payment within the United States territory (Foreign Corrupt Practices Act). Bribery is another way of saying extorting money from someone. Bribery is when money or something value is promised to, given to, or taken form an individual or company in attempt to sway someone decisions. Nepotism is more of a government corruption. Government will use their powers for dishonest gains or illegal means. German engineering conglomerate Siemens...
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...EXECUTIVE SUMMARY This report is commissioned to examine the scope of conducting business overseas on behalf of Fine Maple Products Ltd. – an Ontario based maple products manufacturing company. The research draws attention on various factors involved in expanding company’s business in two potential markets i.e. France and Israel like market size, legal and political considerations, economic conditions and etc. The main purpose of conducting trade research is to diversify its risk through splitting the business in foreign markets and compete with other companies dealing in the same product with foreign market exposure. TABLE OF CONTENTS EXECUTIVE SUMMARY RESEARCH PLAN Key objective Key topics to be researched Importance of key topics to be researched...
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...Global Business Cultural Analysis: Germany Shelly Lynch Liberty University BUSI 604: International Business December 12, 2014 Abstract This Global business cultural analysis of Germany emphasize on the German culture, on the business environment with in the country. In this analysis you will find that the elements and dimensions of Germans culture is observed, an assessment on Germany business verses U.S. businesses and why the U.S states like to do business with Germany. This analysis will also emphasize on Germany’s education system along with their financial system as well. Global Business Cultural Analysis: Germany When it comes to popular European countries Germany is one of the most popular. Germany has numerous small businesses throughout the country opposed to large corporate businesses. When it comes to doing business in Germany it comes easy to some and others find it harder to do business in Germany. The culture in Germany is very different than the culture in the United States. Germany is popular for its beer, foreign cars, and for discovering insulin. Germany’s Interesting Facts Germany became a country in 1871, they are one of the largest consumers of alcohol (beer) having over 1250 breweries, there are 414 zoos registered in Germany. Germans discovered many things and one of them being insulin. In 1916 during WW1 Germany implemented daylight savings time. Germany also has the tallest church in the world (Ulm Cathedral 530 feet high) General Description of...
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...BTEC Business Studies (Level 3) Unit 39 International Business Aim and purpose The aim of this unit is to introduce learners to the role played by international business. The importing and Exporting of goods and services are important economic activities to any economy. Learners will study National and international businesses and the framework in which they operate. In this unit you must explain the importance and differences of international trade. You will explain key economic terms and demonstrate an understanding of how to trade internationally. Many of the tasks will cover several Passes and Merit Criteria. Barr’s are soft drink manufacturers who are famous for manufacturing Irn Bru. They have just appointed you as their marketing manager and are keen to explore the idea of selling Irn Bru abroad. They have identified Germany as a possible option. They have asked you to research into the benefits and costs of doing business internationally. They have asked you to write a report and then present your findings to the board. P1) P1 explain the international Business environment in Which a selected organisation Operates You decide to look at a company that is successfully trading internationally. * Write a profile of a multi-national company Where is its headquarters? Where does it sell its goods or services? What percentage of its market are in different countries etc? How long has it traded in different countries? Turnover etc? * Answer...
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...Wal-Mart’s failure in Germany. Finally there will be recommendations by the author of what they could have done differently. Wal-Mart operates nowadays over 11,500 stores in 28 countries world - wide (Wal-Mart Stores, Inc, 2015). As further domestic success for Wal-Mart in the U.S. was limited because of competitors like Target and K-Mart, they decided to expand internationally (Arndt, 2003). Wal-Mart entered the German market in 1997 (Jui, 2011). The management was confident that their success in USA can be replicated elsewhere all over the world and the German market seemed to be very attractive at that time as the world’s third largest economy (Arndt, 2003). Wal-Mart designed an international expansion strategy, which was also used for the German market (Brunn, 2006, p. 261). Instead of building their own stores as it is typical for Wal-Mart in the U.S., they focused internationally on takeovers of already existing chains (Brunn, 2006, p. 263). Germany’s leading supermarkets are usually privately owned, whereas Wal-Mart got only the possibility to buy the weak chains Interspar and Wertkauf, which also generated the first problem with their entry into the German market (Brunn, 2006, p. 263). Consequently, their start in Germany was rough from the very beginning. The different Wal-Mart stores in Germany were located far apart from each other, which caused high logistical costs (Boundless.com, 2016). Wal-Mart’s management strategy, which was implemented in Germany, didn’t fit into...
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...------------------------------------------------- 1. International and Bi-lateral Treaties Impacting Medeco’s Decision There are various treaties that took place between EU and USA that will impact the Medeco's decision making. Mentioned below are key decisions that should be considered (The European Union, 2009) by Medeco before entering the European market: (i) Information to Patients: The advertisements of Pharmaceuticals to the general public were opposed in EU's High-Level Pharmaceutical Forum. (ii) Relative effectiveness: Any of the European Union members apply Health Technology Assessment before allowing any company to access their respective market. EUnetHTA has been established to look after the sustainable network for health technology assessment throughout Europe and focuses on the implementation of practical tools to provide relevant information member states. (iii) Pricing and Reimbursement: European member states are pressing to push down the prices of new medicines and equipment to bring the cost incurred by customers at the affordable rates. This factor, if established, will bring more competition for Medeco in EU. (iv) Parallel trading: This policy will drive the prices further, thus impacting the R&D of the company. (v) Competition in the off-patent sector: As Medeco, being the company from the US, relies on intellectual property protection to secure appropriate returns that it invests in R&D. When such protections expire...
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...Trident University International Jason C. Christenson MGT 501, Management and Organizational Behavior Module #1, Case Assignment Doing Business Abroad Doctor Ken Myers April 11, 2005 INTRODUCTION: PURPOSE: The purpose of this paper is to answer the assigned questions within this module. By answering these questions, I will gain a better understanding of the important aspects surrounding conducting business abroad. BACKGROUND: This is the first case assignment for MGT501, Management and Organizational Behavior during the spring semester at Touro University International. COVERAGE: I will use background information, combined with outside research to strengthen this paper. I will begin by identifying at least three specific ways that cultural differences would affect doing business internationally. Next, I will discuss some specific skills that global managers need to address the cultural differences. I will then discuss my views regarding expatriate and foreign-national managers by stating the reasons why a combination of managers is the most effective way to deal with these challenges. Finally, I will conclude with a brief summary that highlights the key points made throughout the paper. DISCUSSION: Many foreign markets are considered an untapped resource. The potential for growth in these markets is very high; however the potential can not be fulfilled without strong human resource applications, effective organizational structure...
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...Iceland and Ferro Islands. Active participation in trade fairs helps in keeping the expanding company on the right track. Also establishing strong relationships with business partners such as The Handicrafts and Handlooms Export Corporation of India Ltd., is of great importance in stable situation of the company. 1.2. Problem formulation At present company’s situation looks stable. But aspirations oscillate in entering the German market. Company is known right now on the Danish market, but they would like to have develop and have more customers and distributors. Conducting and understanding market research as the main purpose of this project might help to answer the question: Is Siba able to successfully conquer German market? To find out solution for main problem we will also outline answers to following research questions: * Marketing: How to assess possibilities of expanding to German market? * Communication: What is the way to attract new customers to Siba’s products? * Organization and Management: How the logistic efficiency can be improved for sustain a proper development? * Economics: What kind of investments shall be done in order to increase their market share? * Business Law (working on cases) 1.3. Delimitation In our project we would like to concentrate on conducting market research. We will conduct it on Danish society but despite that...
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...some regions of the country also speak Spanish. Portuguese is one of the most difficult languages in the world, it is important to have a translator present when in that country. A translator form Brazil is preferred but not mandated. Greetings in Brazil are informal and meetings there are also. Personal meetings are a must when doing business with Brazil as the people do not like to do business only in an electronic nature. That is not to say once the meet and great is done, they will not maintain the future communications that way. Major decisions however, need to be done in a face to face meeting. That country gives a peaceful and pleasant experience with no racism as it is greatly integrated with centuries of culture. This may be why the corporation has chosen to build the world tallest skyscraper there. China The Chinese take great pride in their day to day lives, living by Confucianism, a way of life taught by Confucius. They are humble yet formal. The Chinese are shrewd negotiators and the pricing of the construction materials should be done prior to the expected start date. Electronic communication is an acceptable way to do business with them as the...
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...Unit 6 Case Analysis Wal-Mart Stores: “Everyday Low Prices” in China GB520-14M Strategic Human Resource Management Introduction The following paper analyzes the Wal-Mart case study regarding the position of their stores in China. It also provides a thorough examination of the struggles faced by the organization to secure their position of their stores in China through an HRM perspective, as well as a set of recommendation. Wal-Mart’s strategies to retain and attract customers are based on a set of fundamental premises envisioned by its founder Sam Walton. These premises are: to provide excellent customer service to its clients, make every effort to attain excellence at all levels, and to always respect the individuals. To accomplish these goals Sam Walton established a rule for its organization, the 10 foot rule, in which every employee is expected to engage with every customer that they find within a 10 feet distance with the purposes of providing assistance with their purchases and provide the best possible customer service experience. The analysis of this case study attempts to point out and explain the challenges experience by Wal-Mart in China and to provide a series of possible recommendations for the organization to overcome such challenges. The goal is to provide them a series of strategies for the organization that will allow it to successfully compete in this market. Analysis of the Situation and Pending Decision Problem Wal-Mart’s founder strongly believed...
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