SUBMITTED BY:

MOHAMMAD HARUN AL RASHID EMON

ID: 2011010000315
BATCH: 27
TH

SECTION: MARKETING
SUBJECT: INTERNATIONAL MARKETING

SUBMITTED TO:
TARAFDAR MD. MEHADI AL MASUD
LECTURER of SOUTHEAST UNIVERSITY
(DEPARTMENT of BBA)

Presentation Objective
To analyze and understand the economic, social,
and cultural climate that impacts business
practices in Germany. The following analysis will
highlight the opportunities and threats for
introducing product into the German market.
History
1871: German Empire formed
1914 - 1918: World War I
1929: Global Depression
1939 - 1945: World War II
1949: Germany divided into East and West regions
1961: Construction of the Berlin Wall
1973: East and West Germany join the UN
1989: Fall of the Berlin Wall
1990: Germany joins the EU
2005: First female Chancellor, Angela Merkel elected
2008: Germany officially declares recession
2009 (Feb): Parliament signs $63 billion stimulus package
2009 (Aug): Germany comes out of recession
Demographics
Population: 82,282,988
Population growth rate: -0.061%
Birth rate: 8.21 births/1,000 population
Life expectancy: 79 years
2nd most populous European country
Population density: 230 per sq.km = 597 per sq.mi
Median age (male): 42.6
Median age (female): 45.2
Age structure:
0 - 14 years: 13.7%
15 - 64 years: 66.1%
65 years and over: 20.3%

Geographical Location
Geographical Location
Total: 357,022 sq km
Land: 348,672 sq km
Water: 8,350 sq km
Located in central Europe
Area comparison: slightly smaller than Montana
Bordering countries: Austria, Belgium, Czech Republic,
Denmark, France, Luxembourg, Netherlands, Poland,
Switzerland
Water: borders the Baltic Sea and the North Sea

Geographical Location
Germany is made up of 16
different states
Baden-Wrttemberg,
Bavaria, Berlin,
Brandenburg, Bremen,
Hamburg, Hesse,
Mecklenburg-Vorpommern,
Lower Saxony, North Rhine-
Westphalia, Rhineland-
Palatinate, Saarland, Saxony,
Saxony-Anhalt, Schleswig-
Holstein, Thuringia

Geographical Location
Climate: temperate and marine; cool, cloudy, rainfall
during summer and winter
Terrain: lowlands in north, uplands in center, Bavarian
Alps in south
Natural hazards: flooding
Major cities: Berlin, Hamburg, Munich, Cologne


Geographical Location
Natural Resources
Coal, lignite, natural gas, iron ore, copper, nickel, uranium,
potash, salt, construction materials, timber, arable land
Land use:
arable land: 33.13%
permanent crops: 0.6%
other: 66.27%

Trade
Exports $1.159 trillion (3rd highest in the world)
Machinery, vehicles, chemicals, metals and
manufactures, foodstuffs, textiles
Export Partners: France 10.2%, US 6.7%, Netherlands
6.7%, UK 6.6%, Italy 6.3%, Austria 6%, China 4.5%,
Switzerland 4.4%
Imports $966.9 billion (3rd highest in the world)
Machinery, vehicles, chemicals, foodstuffs, textiles,
metals
Import Partners: Netherlands 12.71%, France 8.3%,
Belgium 7.19%, China 6.89%, Italy 5.88%, UK 4.76%,
Austria 4.55%, US 4.25%, Switzerland 4.07%

Trade
Trade
Industry
One of the world's largest and most technologically
advanced producers of:
Iron, steel, coal, cement, chemicals, machinery,
vehicles, machine tools, electronics, food and
beverages, shipbuilding, textiles
Industry and construction accounted for 29% of gross
domestic product in 2008, and employed 29.7% of the
workforce.

Major German Companies
Volkswagen
Allianz
Daimler
Siemens
Metro
Deutsche Telekom
BMW
Mercedes Benz
Audi
T-Mobile
Nivea
Porsche
Merck
Adidas
Economy
Largest national economy in Europe and 5th largest in the
world
Monetary system: monetary policy was transferred to the
European Central Bank in 1999
Currency: Euro established in 1999
Economy
GDP: $3.353 trillion
GDP (PPP): $2.81 trillion (6th in
the world)
GDP per capita: $34,100
GDP growth rate (2009): -4.9%
GDP growth rate (2005): 2.5%
FDI: 503 billion EUR (2009)
Technology
105 million mobile cellular phone users (8th in the world)
61.973 million internet users (6th in the world)
German companies represent 15.6% of research advanced
goods worldwide, ranking 2nd in the world (following US)
The Federal Government provides funding through annual
grants or endowment capital
In 2010 the Federal Ministry of Economics and
Technology created a budget of 2.3 billion euros for
technology research and development

Education
99% literacy rate among males and females
Approximately 4.4% of GDP invested in education
250 universities, 100 of which focus on applied sciences
95% of universities and higher education are public
School life expectancy: 15 years
German Consumer
The typical German consumer rejects the idea discounts
shops and places value on quality
Emphasis on safety, quality, comfort and reliability
Household consumption (2008): 1,143,489 USD
Household consumption per capita (2008): 13,926

German Consumer
Political Structure
Government type: federal republic
Chief of state: President Christian Wulff
Head of government: Chancellor Angela Merkel
Elections: president elected for a 5 year term (eligible for
2nd term)

Legal Structure
Legal system: civil law
Value added tax: 19%
Value added tax for food: 7%
Corporate tax: 15%
Profit generated in Germany can be subject to corporate tax,
solidarity surcharge, and trade tax

Religion
Religious freedom
Protestant (33%), Roman Catholic (33%), Muslim (4%),
108,000 members of Jewish communities, and others

Culture
Germans have a strong sense of regional pride
Reputation for being industrious, thrifty, and orderly
Germans usually express their thoughts and opinions in a direct
way
Separation between private and public relations
Interest in academic credentials but not personal life
Formal communication and greetings
Business deal is usually mutually beneficial and the central
focus is just the task.
Attention to be paid to targets and time schedules.
Appointments are to be taken before meeting someone
Decision making is a slow detailed process.
Correspondence should be in German



Intercultural Communication
Power Distance
35
Low
Individualistic
67
High
Masculinity
66
High
Uncertainty Avoidance
65
High
Hostedes Cultural Dimensions
Business Environment
Starting a business in Germany is ranked 88 out of 183
economies by The World Bank
To start a business in Germany:
It will take approximately 15 days
9 different procedures
4.8% of income per capita
SWOT Analysis
Strengths
Increasing consumer
consumption
Efficient and educated work
force
Largest European economy
Weaknesses
High tax rates
Slow negotiations
Demanding employees
Opportunities
Location
Tax incentives
Introduction into European
market
Threats
Mature market
Competition
Recommendations
Focus business practices in Eastern Germany
Growing opportunities in Eastern Germany
Higher unemployment
Possible tax incentives
Lower labor cost
Use Germany as a starting point for European business
Germany is key to successfully entering the European
market
Pay attention to consumer patterns
Avoid discount and sale approach
Boast product quality
Recommendations
Use societal values to client advantage
Importance on education
Quality product
Increased awareness of social responsibility and
sustainability
Specific target market
Information and communications technology
Responsible for 80% of German innovations
Be aware of advancements in technology
Competitive market
References

http://news.bbc.co.uk/2/hi/europe/country_profiles/1053880.stm

http://www.countryreports.org/people/overview.aspx?Countryname=&countryId=91

http://www.populstat.info/Europe/germanyg.htm

http://www.destatis.de/jetspeed/portal/cms/Sites/destatis/Internet/EN/Navigation/Statistics/Bevoelkerung/VorausberechnungBevo
elkerung/VorausberechnungBevoelkerung.psml;jsessionid=92DC8F43948C823158298A7D3C91D160.internet

http://www.bmbf.de/en/1869.php

http://www.mynewsdesk.com/us/view/pressrelease/germany-information-technology-report-q3-2010-502588

http://www.buyusa.gov/germany/en/doing_business_in_germany.html

http://www.mapsofworld.com/germany/german-economy-and-business/germany-business/
References
http://www.doingbusiness.org/data/exploreeconomies/germany

http://www.laposte-export-solutions.co.uk/uk/markets/country-profiles/germany/consumption-trends

http://www.gtai.com/homepage/german-business-location/foreign-direct-investment/

https://www.cia.gov/library/publications/the-world-factbook/geos/gm.html

http://www.clearlycultural.com/geert-hofstede-cultural-dimensions/power-distance-index/

http://www.kwintessential.co.uk/resources/global-etiquette/germany-country-profile.html

http://www.nationmaster.com/red/country/gm-germany/edu-education&all=1