Global Business Cultural Analysis: Germany

Introduction4

Discussion4

Major Elements & Dimensions of Culture7

Power Distance8

Individualism8

Femininity - Masculinity9

Uncertainty Avoidance10

Long-term orientation culture10

Elements & Dimensions Integrated By Locals Conducting Business in Germany11

Comparison of US Culture & Business in Germany15

Personal Relationships15

Showing Respect16

Communication16

Concept of time16

Individual and Group Dynamism17

Gender Issues18

Implications for US Businesses to Conduct Business in Germany18

Market Opportunities19

Market Challenges20

Entry Strategy20

SWOT & Foreign Direct Investment (FDI) Analysis22

The Impact of National & Cultural Difference on Functional Areas of Global Business29

Legal, Cultural, and Ethical Challenges Businesses Face within Germany30

Government Interventions in German Business Environment31

Conclusion31

References33

Global Business Cultural Analysis: Germany

Introduction

Germany is a monetary power house in Europe. Famous for assembling quality items, Germany makes a welcoming area for American organizations looking for a decent business in Europe. As a component of the exploratory transform for spotting in or exchanging with German organizations, it is insightful to think about a Global Business Cultural Analysis of Germany. This paper will investigate and explains the major components of culture incorporating; correspondence, religion, morals, qualities and disposition, behavior, traditions, social structures and associations and training. Neighborhood mix of components and measurements to lead business in Germany are identified, the US society and business analysis will be provided, and the suggestions for US business in the area are discussed.

Culture affects the way people think about business in their own society. A consciousness of cultural attitudes toward company will help you communicate efficiently and effectively when working with people from other cultures. For example, German culture, teamwork and promote cooperation in business environments, while Western companies promote individual action and responsibility. Understand these values will help you create a strategy for effective communication with partners in those regions.

Discussion

Organizations which operate in international environment experience various types of challenges. Similarly, cultural incompetence is a kind of challenge which international organizations face. This paper discusses the global business cultural analysis with respect to business in Germany. There are several aspects which must be kept into consideration the effective evaluation of cultural incompetence (Aydin, 2009). Global business culture plays a pivotal role in organization's success. Employees are compelled to follow the norms and values of the organization according to the defined principles. International organizations have a diversified workforce which demands mixed culture. People working in international organizations have different backgrounds and values which must be recognized in order to overcome any sort of barrier such as stereotyping and ethnocentrism. Removal of these factors might result in clean culture compatible with all diversified workforce. An effective cultural competence requires five essential principles:

1.Valuing diversity

2.Conducting cultural self-assessment

3.Understanding the dynamic of difference

4.Institutionalizing cultural knowledge

5.Adapting to diversity

Cultural competence refers to an ability to interact effectively with people of different cultures and socio-economic backgrounds. Failing to comply with any of the above mentioned standard principles leads to cultural incompetency. Organizations which do not outline the importance of adapting to diversity often face issues and challenges (Amann, 2003). Therefore, managers highly regard and emphasize on diversity in order to attain a level and remain in the region of culture competence. It is important to understand the culture in ...