Doing business ion germany
Doing business ion germanyDOING 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...
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