3 keys to more effectiveness in German business culture


Products Made in Germany enjoy an excellent reputation around the globe. According to a recent article by Deutsche Welle German exports hit record high in 2014 with a 3.7% increase compared to 2013.

So there are many good reasons to do business with Germans. But what do potential business partners need to know?
Here are 3 keys to successful cooperation…

Understanding the Mittelstand model – How do German companies work?

The Mittelstand is an essential driver of Germany’s economy. Innovative products are developed by these highly specialised, mainly family-owned businesses. They are often global market leaders in their field of expertise.

According to an article in the Economist the German Mittelstand depends on delicate relationships between schools and companies as well as capital and labour. Thus it can be doubted that this model can easily be reconstituted in another country.

For a deeper understanding of the German Mittelstand phenomena I recommend watching the film Global Player by Hannes Stöhr. It tells a touching story of a Mittelstand company dealing with the realities of globalisation. In a rapidly changing world Mittelstand businesses are realising that they can no longer just stay in small-town Germany.

Getting to the point – How do German executives negotiate? Read more

Why do businesses go international?


A simple answer is – businesses go global to grow long-term and to become more self-sufficient. Selling services and products in several countries helps reducing the exposure to economic stagnation or decline in domestic demand. So global-minded businesses minimise their dependence on their home market. Here are three impulses and considerations for businesses to go international…

More potential clients

Globally oriented businesses have more potential clients. Germany has only a bit over 1% of the world’s population according to Worldometers. By comparison – China’s population makes over 19% of the total world population. India’s population is equivalent to 17.5% and Indonesia makes about 3.5%. The population, especially in Asia, is growing whereas Germany’s population is characterised by zero or declining growth. If businesses want to stay competitive they should consider potential global clients. How does the population develop over the next years in your home country?

A global talent pool

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