Germany

As for doing business in Germany, the political and economic system makes it fairly simple for American companies to enter the market. Germany recognizes corporations with shareholders, such as PMC; registering with the commercial registrar and complying with the applicable laws is straightforward and easily accomplished. Export assistance is offered to companies in many markets wishing to do business with Germany. Although European countries are the favored trade partners, the US is also considered a valuable source for trade and it accepts a large percentage of American goods for import.

It is a recognized practice to do business through agents, who will arrange available markets for goods and secure contracts with principals, although there are no restrictions on distribution channels. The German Office for Foreign Trade has developed an e-trade center which lists business and networking contacts, making it easier to find distributors and buyers. There are few restrictions on imported products such as the mobility devices offered by PMC, and they are duty free (Burkard, 2008).

The high rate of e-commerce means that German consumers are willing to spend money over the Internet, which also aids marketing efforts. Although doing business in Germany is rather simple, one caveat will be the waiting time. German businessmen are notorious for the length of time it takes them to make decisions as they meticulously examine and analyze every angle of a business deal, so profits from selling in this market cannot be expected to be timely and the strategy must include facts and examples to sway their buying tendencies.

Culturally, Germans place strong emphasis on masculinity, individualism and uncertainty avoidance; they are open to change and adaptation although changes in business contracts can doom a transaction. The religious preferences of the majority of Germans is Christian. Their propensity for speaking on the phone will mean many follow-up calls, although a decision will not be reached during conversations (Priest, 2008). Environmental concerns and social responsibility are significant issues in Germany today.

Products sold should be labeled with a “blue angel” which signifies their environmental quality in order to be competitive in German markets. As well, a “GS” marking on products indicates their safety and is a valuable tool for marketing (German Business Portal). Quality and technology are two important factors which induce German buyers to make a positive decision. There are risk factors involved in moving into German markets. The greatest one is the high amount of taxation on transactions and the over-regulation of business.

Although the government is seeking reform to entice foreign business concerns to reconsider Germany as a trade market, current conditions make doing business there risky from a financial standpoint. From a marketing perspective, direct marketing via Email and Internet is well received, but German laws regarding privacy and data protection are quite stringent; there are also laws regarding unfair competition practices which must be researched in advance.

United Kingdom In the United Kingdom, 15.8% of the country’s total population is aged 65 and over. The UK has recently reported a 3. 8% increase in health expenditures. The life expectancy of its citizens is 70. 6 years old and the country spends 7. 7% of its total GDP on health. An average $1,429 per capita is spent on public healthcare funding and the UK is ranked 19th in the world for the number of practicing physicians, at 2. 1 per 1,000 people. Per capita total expenditure on health averages $2,160 per person (“Health Statistics by Country”, 2008).

The UK is continually making it easier for foreign companies to do business in its country. Recently, the UK lowered its corporate tax rate to one of the lowest available in the industrialized world; it is reputed to be a fair and open marketplace. The country enjoys one of the most stable political environments as well as the highest GDP growth rate in all of Europe; and the economy is quite strong. Transportation and communications are both well-developed in the UK and intellectual property protection is a high priority, making distribution of goods nearly worry-free.

Residents of the country are known for their high standards of living and mobility products would definitely be a market of interest for the aging population. Culturally, there are few barriers to doing business in the UK. The language is the same and many of the customs are similar to those in the US. Citizens’ religious preferences are predominantly Christian. Individualism and masculinity are highly valued traits and change can be affected quite rapidly due to little emphasis being placed on uncertainty avoidance.

Even so, the pace of making business decisions is slower than in the US and caution must be taken to avoid pressuring British agents (Priest, 2008). One risk to doing business in the UK is the competition factor. The National Health Service is the system whereby residents receive medical care and it is a large, booming industry which has received a great deal of accolades for its success. According to a case study developed by the UK Trade and Investment Services Division, “The UK is one of the largest medical device markets in the world”.

The healthcare industry in the country is quite strong and develops innovative and cutting-edge medical products on its own. Tapping into this market will mean going head-to-head with fierce competition, although British businesses are quite willing to try new products and as long as the need for PMC’s products is stressed, entry into this market should be successful. UK Trade and Investment is also very willing to help start-ups in the country, which bodes well for market newcomers. In conclusion, PMC has already made the decision to expand globally and with good reason.

As the United States economy continues to falter, other nations are experiencing rapid economic growth and higher standards of living. The time to infiltrate foreign markets could not be more ideal. Although there are risks involved, not the least of which is a financial loss, with proper planning the move to international sales should benefit the company.

References

Burkard, Peter H. “International Business Practices in Germany”. Burkard International Law Office. Retrieved May 22, 2008 from the Burkard Law Website: http://www. burkardlaw. com/doingbusinessingermany/.

Bismarck exemplifies the best in effective leadership. While his methods may have been temporarily distasteful, his successful ends for Germany more than justified his means to achieve them. (ATTACK) Otto Von Bismarck spent 10 years working for at united Germany in an attempt to shift the balance of power in Europe. He was once quoted as saying “People don t make nations, strong leaders and wars do”, and he was more than willing to sacrifice his fellow Germans for his vision of a powerful Germany.

Even with the great idea to bring Germany together, I believe it was the farthest example of the best in effective leadership. In fact based on the video and research I believe Bismarck used blackmail and temper tantrums to get his way which is not the mark Of a great and powerful leader. When the King of Prussia asked Bismarck to be his Prime Minister, he wanted Bismarck to unite all Germans under one power, and one crown. He had a parliament that wouldn’t pay their military and needed a way to get all

Germans from the Saxons, Bavarian and Hessians to unite and become a stronger county. Bismarck believed he was being led by God to bring all of Germany together. This to me sounds very Hitler-issue and very much like someone who is going to step on everyone in his path to get what he wants. He attacked Denmark and then Austria, even though the King of Prussia was against it. While see where his thought process was, and why he attacked to unite his country, the King was very hesitant to have “Germans shooting at Germans”.

After the wars, Bismarck had what he wanted as far as national pride and Germans having a sense of country and dedication to the father land. This is where his effectiveness as a leader ends. The Prime Minister then decided to provoke France into a war. He wanted to make sure no one would try and intervene in German affairs and bring some of the smaller German states out of the nation as a whole. He then adds insult to injury by suggesting a German prince become the new ruler of Spain, which France vehemently denied.

Bismarck had become so power angry and now longer concerned with German affairs that he was blinded to what was going on. There was no need to provoke the French into a war for pointless gains. Bismarck had no need for the French territory but was more concerned with himself and his legacy than his people. Being out only for himself and provoking other countries needlessly is by no means an effective leader much less a great one.

Germany happens to be an ideal place for American Interests United to market its new product – the Soccer Franks. This is because Germans are known to thrive especially on sauerkraut and sausage! There are over fifteen hundred types of sausage made in Germany already (“Facts about Germany”). Although the competition faced by Soccer Franks would be stiff, AIU can expect to gain a reasonable share of the market given that Germany is as diverse as New York (Boldt, 2001).

There will be countless consumers desiring the Soccer Frank because of its exotic value. Our product would be, after all, of the very best quality coming from the global leader in business, the United States! In our review of the international marketing environment, we also have to consider the politics, economy, and the technological infrastructure in Germany. Given the turbulent history of politics in Germany, the nation is still said to have a political system that is under challenge. Many changes have been made after the collapse of the Berlin Wall.

Thanks to the stability of the political institutions in the country, however, our business in Germany is not expected to be under threat by turbulent politics in the near future (Sontheimer, 1995). One of the main reasons why American Interests United expects great success in Germany is that the nation has a highly developed national economy (“Banks, building and loan associations, insurance, 2001”). Plus, there are many women working at least part time, which makes packaged food products even more important since innumerable German women do not have the time to cook for their families.

Finally, we are aware that Germany has welcomed new technological advances with open arms. The nation is hiring many foreigners in the fields of technology, principally Information.

References

1. “Banks, building and loan associations, insurance. ” Federal Statistical Office Germany, 21 May 2001. Online. Internet. 8 Jul. 2001.
2. Boldt, Axel. “A subjective comparison of Germany and the United States,” 29 Jun. 2001. Online. Internet. 8 Jul. 2001.
3. “Facts about Germany. ” Europe Page. Online. Internet. 8 Jul. 2001.
4. Nuenke, Matthew. “Reproduction & The Nationalist Eugenic State. ” Eugenics, 23 Nov. 2000. Online. Internet. 8 Jul. 2001.
5. Sontheimer, Kurt. “United Germany: Political System Under Challenge. ” SAIS Review 15 Special Issue (1995): 39-54.

With an inclination in the construction of road networks and expansion in number of international tourist visits to Germany, the demand of cars or renting purpose would increase, thereby increasing the growth potential of car rental industry of Germany in future. Carpooling and non-airport segment of the industry will be the major growth areas for the car rental companies in the Germany in the coming few years. The car sharing market in the country is anticipated to grow at a CARR of 15. % by members over the period 2013-2017. It is expected that by 2017, Germany’s car sharing market would grow at a rapid pace due to enhanced integration with third party mobility solution suppliers as well as surging readerships with cooperatives, facilitating immense car sharing facilities among neighborhood communities. In Germany, a pilot project has been started by the semiconductor manufacturer Infinite to replace regular pool vehicles with a corporate car sharing system.

Corporate car sharing among employees is a more economical solution than company cars in regard to administration, travel and running expenses and maintenance. Thus, overall the car sharing market in the country is expected to showcase considerable growth in the coming five years. Despite some recent legal challenges to peer to peer car sharing, the range of sharing options is growing, as it makes easier for the travelers to skip taxis, traditional car rentals and car ownership.

According to research report, “Germany Car Rental Market Outlook to 2017: Car Pooling and Online Bookings to Drive Future Growth, Germany car rental market is estimated to grow at a CARR of 4. 17% over the period 2013-2017 because of recovery in the economy, growing off-airport car rental market and increasing business and leisure trips by German people.

With an inclination in the construction of road networks and expansion in number of international tourist visits to Germany, the demand of cars for renting purpose would increase, thereby increasing the growth of car rental industry of Germany in future. It is expected that by 2017, Germany’s car off-airport market would grow at a rapid pace due to the expansion of rental services to the suburban areas of Germany and aggressive geographic expansion plans by the major companies to open offices in off-airport locations, thus making it convenient for the travelers to rent a car near their place.

The report revised detailed overview on the Germany car rental market in India and aids readers to identify the ongoing trends in the industry and anticipated growth in Germany Car Rental Industry to Reach Used 4,400 Million by 2017: Ken Research By Snatcher help industry consultants, car rental companies to align their market centric strategies according to ongoing and expected trends in the future. For more information on the industry research report please refer to the below mentioned link: http://www. Snatcher. Com/automotive–transportation/automobiles/Germany-car- rearmament/389-100. HTML

Construction is a well-established construction company in Eastern Spain. Because of a recent decline in contracts in the Spain society, Martinez Construction Company needed to expand to international market in order to survive (expand and grow). After a survey in the international market, the newly formed Democratic Germany seemed the perfect place. Furthermore, the best solution was to acquire an existing firm with the help of Treuhandanstalt (privatization agency).

This was a result of the lack of liquidity of the Martinez Company. Therefore, an alliance with another German company would not allow it to establish itself as a serious competitor on the international market. The intermediary for Martinez Construction was THA (Treuhandanstalt), a company created in the former German Democratic Republic, whose main purpose was to find private buyers for some 13 500 business and 15 000 parcels of real estate that had been owned by the former German Democratic Republic.

Their primary job was to sell the companies and match existing companies with buyers. That’s why Martinez Construction used THA’s services to find a new German company to acquire. From the time of his arrival in Germany, Juan felt that he was having a difficult time just getting acquainted with the Germans. . They didn’t seem to have time to get to know Juan personally: rush and urgency to complete the sale was the focus of their approach. Thus, THA found Konstruktion Dreizehn, based in Leipzig.

Juan Sanchez was sent to handle the negotiations part of the acquisition in Germany. Juan was accompanied by Diego’s nephew and projected manager of the new German acquisition, Miguel Martinez. His background includes a business degree from a university in the United States, as well as years of employment in the family business, although lacking in practical managerial experience. During the negotiations, there were noticed strong discrepancies between the business styles of the two representatives of the companies, the cultural barrier between the two being noticeable.

However, they managed to arrive at a common point by modifying the initial contract, after Juan insisted. The final contract stated that the original price would be reviewed in two years, and the contracted parties would recalculate it based on new and presumably more reliable data concerning the true value of the firm. The company had employed approximately 350 workers inside the German Democratic Republic (GDR). The THA had reduced the workforce to 100. Miguel and his team estimated that 50 employees would be sufficient.

Miguel was frustrated by the unwillingness of some employees to actively participate in the formulation of ideas and implementation of new procedures and policies. Six months after Miguel’s triumphant arrival, his optimism was fading fast. He had just received the latest report concerning the company’s financial position, and it was clear that the figures were far from what Martinez Construction had been led to believe. Cash flow problems were beginning to arise, and this threatened the very existence of the company.  Identification of the problem(s), causes and negative effects: The main problem of The Spanish Company consists of the fact that they were not prepared for the acquisition of a foreign company and further more for the negotiations with the German THA. Companies which operate only in one country are not familiar with all the economic, cultural and political differences between societies because they are not confronted with them on daily basis.

In order to do successful business, it is of major importance to acknowledge this differences and to take it into consideration when doing business. A second problem will be that the manager of Martinez Construction Company choose the wrong people in order to complete the negotiations and after words to develop the new business in East Germany. Identification of the causes that led to the appearance of this/these problem(s): The problems arise mainly because the CEO of the Spanish company made his decisions of expansion in Germany on a blue-eyed approach.

The idea occur to him when meeting German tourists in Spain that were relax and happy without taking into account that the East Germans were not allowed to travel so far and there are important differences between the mentality of Western and Eastern Germany. Another cause is represented by the Manager’s idea that he can develop a well-established business in the Eastern German because of cheap labor and raw materials. His choice to expand on German marketplace was not based on rational facts or clear developed objectives.

Despite the fact that the management of Martinez Company conduct a series of research regarding the different market entry strategies into German markets which ended with the solution of acquiring a company from THA, a market selection can not rely only on information based on secondary sources. There are always certain information that can only be found when visiting the potential marketplace (distributors, suppliers, the existing management and employees).

Identification of the potential negative effects that will appear if the problem(s) is/are not going to be solved: Negative effects on the short-run:

• Lack of experience in managing a portfolio of business in another market than Spain as well as the lack of knowledge about the personality of German employees and the already existing procedures and policies
• Different developed management information systems, governance structures, managerial skills and corporate processes
• Lack of initiative coming from the employees because of fear and distrust of management due to the cultural differences between Spanish and German business practices. Exposure to unfamiliar business practices such as strict environmental and employee protection regulations that forced unexpected large investments in plant modifications.
• Other costly projects that have not been foreseen during the negotiations process that would have required attention.

Cash flow problems The negative effects in the long run:

• Cash flow problems that finally may threaten the existence of the German company or even of the whole company’s
• Closing the German enterprise would mean losing the whole investment (money invested in research, development, implementation, the price itself paid to THA and other costs hat incurred over the time).
• Inability to achieve the forecasted figures 3.

Identification of alternative solutions for identified problems Solution 1: Joint – Venture with a company from Western Germany Joint ventures are the most common method of entering the market, especially in Europe, because it allows companies to gain competitive advantage through access to a partner’s resources, including markets, technologies, capital and people.

International Joint Ventures are viewed as a practical vehicle for direct investment along with knowledge transfer, such as technology transfer, from multinational expertise to local companies, and such knowledge transfer can contribute to the performance improvement of local companies.

Advantages: Access to local know-how which will help the company to evolve faster . Sharing development costs and risks, along with  technology and complementary IP assets for the production and delivery of innovative goods and services. Cheaper than acquisition  Reduce political friction and improve local/national acceptability of the company.

Disadvantages: A joint venture would not allow the company to establish itself as a serious competitor. Lack of control over technology. Many joint ventures fail because of a conflict in tax interests between the partners. Solution 2: Licensing Another solution to the above identified problem would be a method whereby Martinez Constructions would agree to permit a company in another country to use the manufacturing, processing, trademark, know-how or some other skill provided by the company.

By following licensing model, Martinez company can easily and quickly penetrate the German market, using fewer financial resources. But if we take into account the other problems encountered in this case, namely cultural differences between German and Spanish, and lack of knowledge of international management, such a purchase would be a disadvantage. Nevertheless, the licensee can become the licensor’s competitor and the license agreement doesn’t always guarantee the necessary know-how for the licensee who might need technical assistance provided by the licensor. Implementation of the solution. When trying to expand globally through a joint venture strategy, Martinez Corporation must take into consideration three important elements: choice of partner, establishment of a strategic fit and the design of the joint venture organization. As prior mentioned, Martinez Company should choose a partner from the Western Germany as they are more accustomed to the Western style of doing business than the former German Democratic Republic. Thus, the negotiation could be more transparent and easier for the firm.

Furthermore, the most important thing that has to be taken into consideration is the field in which the firm with which the joint venture is going to be performing activates. This is because a classic joint venture is the merger of two companies which usually have complementary products or services in order to cover a larger part of the market share. As a result, Martinez Corporation should apply the joint venture strategy by making a partnership with an architecture firm. By joining these two kinds of companies two business segments will be covered.

This is a very good strategy because the future clients will have to sign only one contract and not waste time between two or more similar companies. Concerning the strategic fit and the joint venture organization, both the Spanish and the German companies will have to share the same vision in order to make the newly formed company to be profitable. The companies have the major advantage that they can complete each other in the sense of the business environment. This means that the German company will have the experience of working in the German business environment.

Furthermore, it could find cheaper and more qualified personnel (as the labor force in Western Germany is more expensive than that in GDR). The joint venture should be staffed by a full-time joint venture coordinator and other staff – designated by the 2 companies, as may be necessary to carry out the mission of the joint venture. On the other hand, Martinez Corporation comes with the know- how of production and the actual construction knowledge. This way, the structure of the new company shall follow that of the Martinez Company and similar technical prerequisites will be required for hiring of employees.

The capital for the new joint venture shall be provided by the two companies in equal shares, as to ensure limited risk exposure and possibilities for further investments. This is also due to the fact that Martinez should vote for an equity joint venture in order to be equal partners and share the same amount of risk. Concerning the organizational structures, this should be a mix between the two companies because, being two companies in two separate business areas, new departments shall arise. In addition, for the common departments they should choose the best people after a careful analysis of their skills.

The use of eugenics, or “racial hygiene” by the Nazi regime. Hitler’s intention as a political leader was to expand his empire and create a world government. Using the war as a preface to the mass genocide inflicted upon not only several racial and religious groups. He failed at expanding his empire and cleansing the population of all “genetic disorders” and what was considered defects in the general population. Though he did allow several hundred thousand mentally ill, physically handicapped, individuals deemed “unworthy” of life. Nazi Physicians were able to disguise their plans to annihilate what they regard as useless eaters.

After public protest, Hitler orders a halt to the killing programs, but they are inevitably continued in secrecy. Under the disguise of war, Hitler sought to hide the mass extermination of those that Germany believed were “unworthy” of life. Individuals who were mentally retarded, physically handicapped or mentally ill were targeted for murder in a disguised euthanasia killing operation codenamed by the Nazis as “Operation T-4”. Nazi Germany used Hereditary Health Courts to register every known case of hereditary illness, diagnosed victims were able to use Appeal courts but few decisions were ever reversed.

Germany was dominated by National Socialists for twelve years in which political, civil, and medical authorities targeted any individuals who suffered from hereditary diseases, persons with disabilities, and those individuals suffering from mental illness for procedures that would lead to death. In the beginning, Individuals marked for death would be bused to a psychiatric institution where Nazi officials used methods like lethal injection and disguised carbon monoxide gas chambers to eliminate any individuals they marked as “genetic parasites”.

In labor camps the SS dispatched, in addition, 2,960 prisoners from Mauthausen and 1,881 from Gusen, a total of 4. 841 prisoners, to the Hartheim sanatorium and “euthanasia” killing center to be killed. Using procedures that were to be later instituted in the death camps, workers removed the corpses from gas chambers, extracted any gold teeth, and brought the bodies to the crematoria to be burned together and eventually placed in urns and prepared for the family in the event that the family requested the remains. After public protest against the euthanasia killings, Adolf Hitler ordered a halt to the Euthanasia Program.

According to internal calculations and data gathered during the T-4 program, 70,273 institutionalized mentally and physically disabled people were killed at six gassing facilities between January 1940 and August 1941. Despite Hitler’s public “halt” to the Euthanasia program, the Child “euthanasia” program continued as before. One year after Hitler’s public halt to all euthanasia killing on August 1942, German medical professionals and healthcare workers resumed the killings in a more concealed manner than previous programs. Historians estimate that the “Euthanasia” Program, in all its phases, claimed the lives of 200,000 individuals.

Nazi ideals for society include a population that is cleansed of all “genetic diseases” or any individual considered a useless eater. This belief was backed by scientists in Germany because they were influenced by a desire to use eugenics to perform “racial hygiene”, many supporters were medical professionals such as, physicians or psychiatrists. These medical professionals observed the population and made decisions about which individuals would be included in the euthanasia program. Individuals included were mostly mentally retarded, physically handicapped, or the mentally ill.

Nevertheless, thanks for our work on mistakes we started to see obvious the inns today; we can ;t be successful when only one leader is thinking but we can look at the robber from different perspectives and find an appropriate solution when we are discussing it collaboratively. Therefore, the contribution of everyone is essential. Personally, I think that if employees would get enough right to tell their positions and to present new ideas, big corporations could achieve better goals in the end.

In my country- Astrakhan and specifically in the regions of post-Soviet countries as Russia, Ukraine or Beleaguers employees are not treated as intellectual people and because of that fact, we have a big coordination among working and ruling class. That problem among employee and employer led to the ineffective work of whole company s workers. Good example of using the idea of employee led innovation is the system of Google workers. They are provided with freedom of action and do not restricted in their workplace.

The main aim of Google Corporation is to provide comfortable conditions for their workers, so they II be able to use their time properly and the work will be effective. The good side of providing such workplace for employees is that they have a freedom and by appropriate time-management, they are able to work effectively on their big projects, and also they are open to new ideas, which can be presented to administration, thanks for what Google looks at the problems from different perspectives fixing every mistake in their search tool, finding the right way to increase audience etc.

Furthermore, employees work directly with product and method of its production. It can be different product: informational, engineer or just simple production of food. Administration and leaders look only at result, which was achieved by the company, but they are not well informed about how the company is working inside and what problems does it have. Important thing to mention here is that leader only knows facts that was presented to him and even if he has some information about overspending on production, he could ;t look at that problem as professional as employee, who actually works on production of those products.

In this case, leaders should to work as filters, choosing the best solution and employees should to present problem and show the solution as they are more informed and experienced in this field. In other hand, cultural intent should be mentioned as it plays a major role on how employee works. Referring to my country, we have strict rules at most of governmental and business workplaces, because from the times of the Soviet Union population of Astrakhan were used to make their best only when failure led to punishment of the worker.

Even living in democratic country, direct and fast reconstruction to employee led innovation is not possible as it leads to problems of workers as laziness and procrastination. That s the reason why most of national and private companies still don t give full freedom of action ND speech to employees, because before we need to have a good base and experience in this field.

Overall, employee led innovation is becoming popular in nowadays as companies see the profit from that system of working. It provides workers with more critical and analytical thinking participating in company’s life and giving a chance to improve the sphere, where they are good. However, before the start of process employers should to prepare their workers mentally, so they ‘II be able to work using that system with maximum effectiveness and profit.