The Bundeskartellamt is required to prohibit a merger if it is “expected to create or strengthen a dominant position.” Market dominance is defined as an undertaking which either has no competitors or is not exposed to any substantial competition or has a paramount market position in relation to its competitors.

Some of the best known U.S. franchises are e.g. McDonald’s, Mail Boxes Etc., and Subway.

Foreign franchisors must be prepared to adapt to required market norms and standards, invest in market research, test market receptivity through pilot projects, and to adjust their concepts to German business practices and consumer tastes.

(Source for figures: U.S. Commercial Service of the Department of Commerce)

Embarrassments in the job – they can really make you sweat. But with the right knowledge and a feeling for situations, unpleasant situations can be avoided.

“So, when are you due?”

This question, looking at the round belly of a female colleague, is extremly embarassing when the lady isn’t pregnant and has “only” put on some weight recently. In order to avoid this clanger, remember never to make someone’s physique the topic of a remark – especially not in your job! Once the question has left your tongue, you can’t make it undone anymore. But if it already has happened, make a short but honest excuse. Don’t broach the issue any further as that would make things even worse.

Open zippers.

No matter if it’s your skirt or your pants – an open zipper is always embarrassing. Obey the easy rule: Women should give a discreet hint to their female colleagues, males to their male colleagues. Say somthing like “You’re not quite complete there” and try to briefly look at the spot, but don’t point with your finger. If you’re the “incompletely” dressed person, say thank you, fix the little problem somewhere not so public and don’t further talk about it.

Food in the face.

Parsley in your teeth, tomato sauce in the beard or residue from blowing your nose on your chin – imagine yourself in a very important situation, maybe a job interview… Whatever it is, make sure to make your colleague or business partner aware in a discreet way so as to allow your counterpart to clean himself up in the restroom or with a napkin and to make sure this problem is gone. How terrible to imagine the person coming home after work and, at the first glance in the mirror, realizing he had been running around like this in the office for hours…

Stained Business Shirt

The knocked-over coffee cup

No matter if it’s a wine glass or cookie jar – during a business dinner, a lot of things can be in harm’s way. But what do you do when it has actually happened and you have soaked the table cloth with your coffee? If it’s a minor mishap such as this, apologize and quickly use a few napkins to clean it up. However, if your wine is now on your neighbor’s suit or costume, don’t touch the person. Apologize first and offer your assistance, e.g. by saying that you will cover the dry cleaning or, if this doesn’t help anymore, to get a replacement. And, therefore, if it was a € 2,000 suit, then you better have an insurance covering the damage.

Stains on clothes

You know the situation: A meeting is scheduled for 2:00 P.M., and right over lunch you spill salad sauce on your shirt or blouse. For situations as such, you should be prepared and have a substitute in your office. If you don’t, open the meeting with a little remark on your mishap and make a little joke about it. If it’s your colleague’s shirt that has the stain, you can inform him in a discreet way, maybe there’s a possibility to cover it up with the jacket. At any rate, don’t make somebody aware of the problem whom you are not familiar with, e.g. when it’s a business parter or a client of yours.

The four Americans, three young ladies and one young man, all aged between 16 and 24, give an account of what Americans are being confronted with when first coming to Germany and staying here in a normal living environment for a certain period. 

U.S. - Germany

Heidi is 18 years old and is quoted to say that her first impressions of Germany were “shocking and yet representative.” She was alienated by half naked women in late night television expecting male viewers to give them a call and have phone sex with them. Also, when she first went to a sauna, she noticed that men and women were both sitting in the sauna all naked – where in the world had she ended up here? However, she concedes that with the German youths having a more relaxed attitude towards sex, they have an easier time talking about their first sexual experiences with their parents. Another experience of hers is that the boys her age misunderstand a first date as an invitation for a relationship, whereas Heidi only wants to go out and have fun. She is not interested in a relationship as she will be leaving once the year is over, and she does not take dating too seriously. Yet.

Maria Noel of Orlando enjoys the very sophisticated public transport system of Berlin, which saves her from having to buy a car. But she says that she has been confronted with numerous prejudices her German fellow students have towards the United States, saying that everyone was wasting resources and energy there, that all Americans were conservative  and were all supportive of the war in Iraq. She admits that the Americans were speaking, on a broad level, fewer foreign languages and says this was not because of a lack of interest, but because of a lack of possibilities.

Paul, 24, is quite confused by the lack of organization at the university he is attending. He is very fond of the German history, saying that he  is seeing so much of it in Berlin. He has realized that the Germans are much more open than he had expected and is happy that the members of his host family are quite interested in what is happening in the United States. Funniest insight so far: He finds it hard to believe that men are expected to sit down in the toilet when peeing.

Elizabeth, 16 years old, praises the Germans for their environmental awareness. She came here to get to know Germany, the country of their ancestors. Her grand parents had left Germany during World War II. She says that high school was quite demanding and that students were given very little freedom of choice regarding which courses they can take at high school and finds it hard to accept that, even though she does not like it, has to take physics lessons. She drank her first beer here and didn’t like the taste and finds the differece between “Sie” and “Du”, the German way of addressing somebody in the right respectful way, as somewhat exaggerated.

The entire article (in German) can be found here.

Have you had your own experiences with Germany? Have you lived here, gone to school, or worked here before? Please share your memories by posting comments on this page. Please lick the link, “Post Comment”, on the top of this page. Thank you.

Gift or Bribery?

In 2007, a legal investigation into the dealings of Utz Claassen, the CEO of one of the top five German utility companies (EnBW), caught the attention of the German public. Germany was the sponsor of the 2006 Soccer World Championship; “A Time To Make Friends” was its motto. Claassen must have taken this slogan very seriously indeed. With the corporate Christmas mailing in 2005 to, amongst others, local and state politicians, EnBW included ticket vouchers for some of the soccer matches. The vouchers had a value of up to several hundred Euros each.

Big deal? The decisive factor when making gifts to business partners (or politicians) in Germany is not the price of the gift. Rather, it is if the gift is given in expectation of a favor or a service in return. Think about it: When you give a real gift to, say, a friend, then you do it, because you want to make your friend happy and not because you want him to give you something back. So why would you make a gift to your business partner? You probably don’t even know him (yet) that well. You normally have no personal, but only professional interests in him. 

It may be customary in your own country to make a gift to somebody you intend doing business with. Well, you don’t have to abandon your habits altogether. But you need to be quite selective as to which gift you choose. In the past two to three years, numerous companies have adopted a so-called compliance or code of conduct policy. This policy governs the type of gifts a company’s employees are allowed to accept. Especially large corporations also publish their policy on their websites.

Which gift is OK?

In general, it is not too common in German business dealings to give or receive gifts. Even if you are used to giving something to your (prospect) business partner in your own country or area, you should ask yourself if you really want to do this in Germany, too. If, however, you decide to bring a gift, you may want to obey the following three basic and easy rules so as not to create an awkward situation or give rise to any undesired implications:

1. Try to find out if and which restrictions a company has established in their compliance or code of conduct policy. You may find it on the company’s website. If not, you can, prior to your business meeting, inquire with the compliance officer of that company or with a competent manager. (An example for how a company publishes this information on the internet can be found on the website of HENKEL, a German global player in the chemicals market.)
2. The gift you are brining should, if possible, have no practical purpose. The presentee should not be able to actually use the present. An example: Giving a framed picture of your company’s production site to be hung in the presentee’s office should be OK. A digital camera and a free flight to the production site is not.
3. Whatever your gift is, please make sure it has no significant material value. There is no law which limits the amount of what a gift is allowed to cost. But the higher the price of a gift actually is, the more likely you may encounter insinuations or suspicions of bribery.

Remember: With the inappropriate choice of a gift, you can cause anything from embarrassment to legal investigations to your business partner – not a good start into a successful relationship. Think very carefully about what you want to bring as a gift. And if you decide not to bring anything at all, none of your German business partners will be disappointed and you’re always on the safe side. And, although stating the obvious: Never give cash!

This page is part of the blog, “Doing Business With Germans,” by Sascha Röber.

Imagine yourself being an oil trader from Saudi Arabia talking to a broker in Hamburg who wants you to supply him with x tons of crude oil every month via the Hamburg port. You have an appointment at a reputable hotel near Hamburg’s Alster river. For your meeting, you wear the same business outfit which you also wear when meeting for a business lunch in Jeddah: You’re wrapped into a white thobe, with a ghutra on your head, which is in turn adorned by a black camel-hair agal. You would never even think about wearing anything different. So when you meet up with the broker, he would even be disappointed if you showed up in a dark business suit like himself. The broker knows, this is your traditional dress. If he makes a remark about it, he’d be careful to make it a tasteful one and, most likely, compliment you on how proud and grounded you look in your dress. However, even if for your business lunch back in Jeddah you would keep your shades on, the German gentleman will most likely expect you to take them off, as it is quite important to look into one’s eyes when doing business negotiations. It is a means of mutual respect and allows one to “read in the eyes”, if the other person’s intentions are genuine and if this person is trustworthy.

Woman wearing a Chador. Image (c) Murat Subatli c/o fotolia.com

However, if you were a business woman from, say, Afghanistan, you would arouse confusion and, most likely, discomfort and even disaffirmation with your German business partner, if you showed up in your chador or burqua. Why? Easy. Your face would not be fully visible, and maybe even your eyes could not be seen by your business partner. Seeing somebody’s entire face and having eye contact are both an important part of business negotiations in the Western world, including Germany. In other words, it’s not what you wear because of your cultural background and habits, but rather if it disturbs an unhindered, face to face communication between yourself and your German counterpart. So, if for example you were wearing only a headscarf, which is a customary part of female attire in many Islamic countries, will normally not cause much of a discussion.

In summary, if you normally wear, in a business environment, a traditional or culturally / religiously determined attire, Germans will most likely have no problems with that as long as it does not, in their view, hamper a direct communcation. You can expect intrested questions from your German partner, which can be a good way to start a business meeting. Do not expect the German business person to know every detail about your own cultural background. In case of doubt, you may want to check ahead of the meeting if a certain part of your attire may give rise to discomfort or distraction from the business issue at hand. This will be regarded as a means of showing respect from your side.

This article is part of the blog, “Doing Business with Germans“, by Sascha Röber.

Yes, uhm, well, uhm…

When you are invited to a business meeting in Germany, you can expect that – unless it is cleary on an informal basis – serious business is being discussed. Germans are known for being quite thorough. They usually know the topic more or less by heart and have a deep knowledge of their part on the subject. And they expect the same of you. Since you will know why you are having this meeting, you should by all means also be properly prepared for your part on the subject of discussion. In case you have called for the meeting yourself, you should take the lead and open the discussion. (Further down below, there will be more informations on how to meet and greet.) 

Effective presentations = essentials only!

At first, you should be sure that everyone has had to get acquainted with one another. If that has not yet happened, make sure you do it now so that everyone at the table knows the names and the functions of the participants.

Next, you may want to briefly summarize what the meeting is about and what your expectations are with regard to what the result of the meeting should or could be. It will be helpful to ensure with the main participants (normally, the decision makers) that your expectation also matches with theirs.

With this, you will ensure that every attendant will know, right from the start, what the meeting is all about and what they will be taking with them afterwards. In case this is necessary, also make sure to mention that the minute writer (minues are an essential part of a business gathering) will also produce an action list, which will reflect all open items dicussed during the meeting and which need to be worked on by some individuals.

If you are required or expected to give a presentation, you may use Powerpoint slides, which are quite common in Germany, too. I recommend to use those slides only as supporting material. They should contain only the high level issues. All details should be coming from yourself in a free speech type of communication as else the participants would tend to only stare at the text of your slides rather than just taking a short glance and then turn back their attention to what you are saying. On the internet, you can find various resources which give hints as to effective usage of powerpoint presentations (e.g. on WebConferencingZone.com.) Try to avoid distracting effects, such as flying-in lines and all sorts of sounds.

In order to give a professional impression, your slides should be designed based on a so-called slide master, i.e. all slides should have the same basic design. If you use slide masters, you also save a lot of redundant work. The slide master should reflect your corporate identity / corporate design.

Make sure all the informations you have in your notes as well as on your slides are double or triple checked and that you have all background informations on them as well. You may need them to answer very specific questions on details. Be prepared: Germans can go into very much detail. And they expect you to be able and answer them in a professional way and, if possible, off the top of your head.

Before the participants depart at the end of the meeting, you should give them the possibility to pick up a copy of your presentation and / or notes so that they also have something which can refresh their memories even days and weeks after the meeting. However, if you distribute them at the beginning or during the meeting, there is a chance again for distraction. If participants ask you to do so, make sure to refer them, in a friendly manner, to the printouts they will receive at the end of the meeting and, of course, also the minutes. The latter will be appreciated via e-mail.

Practical advice: Make sure to find out, even a few days prior to the meeting, which technology will be available at the venue. In many cases, you should be able to use a projector, but also ask if there will be a computer which you can use or if you should bring your own. In case a computer is a available, store your presentation and all material you want to distribute on a USB stick which you can then just plug into the slot of the computer present at the venue. You may also want to know if, in case of need, technical assistance is available at the venue so that any unforeseen technical problem does not lead to undue delays of the meeting.

Read soon in Part Three how to greet and (get) introduce(d) at the beginning of a German business meeting.

This article is part of the blog, Doing Business With Germans

Good morning. Or good night?

Tired?

Yes, indeed, your meeting may also start in the afternoon. But it doesn’t matter. What does matter, though, is that you make sure you have had sufficient sleep before you have an important business meeting. You do not want to attend a meeting through which you are sleeping most of the time. Your time is precious and so is your business partner’s. Apart from being awfully impolite when you cannot hide how tired you are, why would you be wasting your time with a meeting which you cannot fully follow, because your body wants you to dream of something else? So, please, make sure you have had enough rest the night before and you’re are absolutely fit and awake. Only then you can have a sharp mind and you can be certain you don’t get taken to the cleaners. And: If you really cannot avoid to yawn, please hold your hand in front of your open mouth, that’s a matter of manners.

Today. Or Tomorrow. Or Never.

Be on time!

Before you even see the persons you will be meeting with, you need to obey one fundamental rule, which is timeliness. Say, you have an appointment at 10:00 A.M., you are expected to make yourself available at 10:00 A.M. sharp. Not at 10:02, and not at 10:15. If you are on time, you show your respect to the persons you are meeting. Your message to them is, “I know you only have limited time, thanks for giving it to me. I do not want to disturb your planned schedule, this is why I made sure to be here on time.”

Normally, you would make sure to be at the agreed upon venue just a few minutes ahead of the scheduled time (but make sure not to show up too early, either.) If you are uncertain how long it will take you to get there, you should consider asking somebody who you know should be able to tell you or, alternatively and if it is a really important meeting, you may want to check out the way yourself a day in advance, if you have the chance. Please also consider to reserve some time for contingent delays such as traffic jams or problems at the passport control at the airport. Always have a little bit of a time buffer as hardly anything is more embarrassing than showing up too late for a meeting.

Timeliness is regarded as a token of reliability. And reliability, which you will learn further down, is a key success factor when doing business with German companies. If you don’t manage to be on time, you may be regarded as somebody who may come today. Or maybe tomorrow. Or never?

“Hi Mom, I’m in a meeting right now…”

No cell phones!

Some ten years ago, you woudn’t have had to worry about this. When your mother wanted to give you a ring to remind you of your Dad’s birthday, the phone on your desk in your office far away from your today’s meeting would have rung. Not so today. You have your cell phone or your Blackberry with you. It not only rings when someone calls you, it also makes sounds when an e-mail or SMS arrives and makes disturbing sounds when it reminds you of your wedding anniversary tomorrow or your next appointment with the dentist. Certain coevals find it especially funny to have all sorts of strange noises in their sound profiles: A screaming T-Rex when their boss desires to talk to them or a honking car horn which tells them that their spouse has just packed up and left their house. Not good, not funny – only very disturbing. The least you can do is put your cell phone on mute or, if you keep it close to your body, on vibration so that at least you know you need to briefly check out of the meeting in a favorable moment to check what’s so important. Else, store it away in your briefcase and take it out only after the meeting has finished. Turn it off before the meeting starts or, better, even before you enter the building in which you will be meeting. Having no disruption from your ringing phone is a sign of respect: You make sure you can concentrate fully on the meeting, on its contents, and on its participants.

There can be an exception to this rule, though. There may be a case where it is essential for the successful conclusion of the meeting that somebody calls you or sends you an e-mail during this meeting, because maybe some important information is yet to be obtained from the outside. In such case, however, make sure to inform the persons at the table that you keep your phone / Blackberry turned on and why.

Please read on in Part Two.

This article is part of the blog, Doing Business With Germans

Coat

If you wear a coat (and you would normally do so from September through April / May), make sure also here not to choose the wrong color – here, pretty much the same rules apply as with suits / costumes. Coats these days end above the knees. Too long coats belong to the 1990′s and would be considered out of date by fashion aware people. Parkas, winter jackets, anoraks or Barbour quilts belong to other parts of your life, be it an Antarctic expedition, a sailboat trip, or a fox hunt. They don’t belong to your serious business outfit.

Briefcase

No backpacks, please! I don’t know how they ever managed to make their way on the millions of business people’s backs. But they definitely are not part of the German business attire.

Business Bag

Even if you don’t have a need for carrying a notebook computer with you, you may consider having a briefcase with you. First, because it can add a very stylish note to your appearance and, secondly, you wouldn’t want to appear in an office with a college block and a computer underneath your arm. For practical reasons, though, such a briefcase will indeed hold a notebook computer or a DIN A4 file, the normal paper format in Germany, plus a lady’s lipstick and some pens.

If you make the proper choice, your briefcase can be a fashionable statement in itself. Here, you have a bit more freedom regarding its design than you will ever have with your suit or shoes. The color may be black or brown, for ladies also orange and red. Popular and stylish: MANDARINA DUCK for ladies, BOSS for gentlemen.

Business Cards

Yes, they’re an accessory to. Of sorts, at any rate. Of course, first and foremost, your business card is a source of information for your German counterparts. When you enter an office or a conference room, you would normally shake hands and then, before or shortly after you sit down, you hand over your business card. But there are some things to be obeyed here, too.

Now, clearly you don’t have to re-design your business card only for the German market when you are an employee of a large corporation whose corporate design does not allow any deviations in looks, segmentation, and style. But having made the right choice regarding design and haptics, you may leave a first good impression on your vis-à-vis. 

Sample Corporate Logo. (c) Logomad.com.

Don’t save on your design. Generally, you should not try and design your business cards yourself. Remember, this little piece of paper will most likely be the very first impression you leave on somebody you intend to do business with. If you don’t have to use your company’s corporate business cards, you may consider specialized print shops. You may also use them to help you create a professional corporate logo. You can also have the corporate logo created separately, of course (e.g. with THE LOGO COMPANY or LOGOMAD, both with internet order.) Also make sure to get good advice on which font to use. Only if you represent an arts related company (in which case you may have the best ideas on your corporate identity and design yourself anyway), you can consider using playful fonts. Else, make sure to stick with non-serif fonts, which are easily legible.

Choose good paper. The paper should be of high quality. You do not want your business card to look like a washrag after it has gone through some hands. So, it should be made of good carton (200 grams and up.) Embossed printing can add a fine touch to the haptic impression of your business card.

Be progressive. If you want to add a progressive touch to your business card, you should also consider having a QR code printed on the back of your business card, which should contain the business card’s informations plus a link to your corporate website. Please read the related article on this blog.

What your business card should say. Your corpoate logo may go on the left or right side. On the opposite side (or, alternatively, on the back of the card) should be all important informations about you. Sample:

Your First and Last Name (and initial in the middle, if you have one)

Your coproate title (e.g. Vice President)

Your corporate function (e.g. Head of Procurement)

Free Line

Your Company’s legal name

Company address (following your country’s postal sequence of informations)

Your direct phone number (internationalized, i.e. with a + and your country code)

Your direct fax number (also internationalized)

Your e-mail address

And, if applicable and really permanently used by you, another communication channel info (e.g. “SKYPE: your skype name“)

Your company’s web address

Although this is quite a bit of information for such a little piece of paper, they all need to be on there. Make sure that the print is not too small so that it is still well legible by the person you hand your card to.

In Asian countries, it is customary to hand out business or credit cards with both hands. This is not necessary in Germany. You may do it if you are used to this style, but nobody would expect you to. You can either place your business card on the table in front of the person who is sitting there or you can, as the situation may be, hand it out personally. In either case, you should look in your business partner’s eyes during this little ceremony.

So. Now you’re set. If you follow the suggestions above (and those of Part One), at least your appearance will leave a very good impression. And that’s an important start.

This article is part of the blog, Doing Business With Germans

Suit / Costume

Professional business attire

Let’s begin with the suit – or costume (for ladies.) Wearing a suit or a costume is expected in a professional business environment in Germany. Most business people wear dark colors, such as dark blue or dark grey. It may also go into medium gray, but bright colors are rather to be avoided. Firstly, because they are not commonly worn, and secondly because the danger of getting stains on them in prominent spots (e.g. on the lapel of your jacket) is just way too high. In the recent past, tailor made suits / costumes have really become affordable. Really nothing compares to a perfectly tailored “outer skin” in the business environment. There are several tailors in Germany offering professional, high quality products at affordable prices. Two examples: (a) Dolzer. This tailor has shops in most big German cities. (b) You can get your tailor come to your office or home also. This service is offered, amongst others, by Harper & Fields, located in Frankfurt and operating country wide and even internationally (if you got the necessary change, that is.) The big advantage of tailormade suits is that the trousers have the correct length. Hardly anything is as embarrassing as wearing too short “high-waters” or “flood pants” which end at your ankles rather than properly cover them. 

A dress handkerchief is optional and may be regarded as slightly preppy, but if its style and color match well with the suit and, especially, the tie, then there is no reason not to wear one.

Combinations of a blazer and, say, corduroy slacks are normally not appropriate.

Men should wear a belt, either black or brown. The belt color should match with the color of the shoes.

Shirt / Blouse

Your shirt must be long sleeved, even in summer, and should be plain colors (white or blue.) No experiments, no exceptions. Also here, the best choice of all is, of course, a tailormade one (you can get them at the same sources as above, i.e. Dolzer and Harper & Fields, but also with numerous others.) The prices are no longer so much higher than shirts and blouses of a certain quality off the shelf in department stores, and often monograms are offered at little or no extra cost. Good middle class off the shelf shirts for gentlemen are, for example, the “Luxor” series by OLYMP and blouses by BURLINGTON. No matter if you wear off the shelf shirts or blouses or if you had them tailormade: Make sure to always wear neatly ironed shirts. You don’t even have to do it yourself. In every (larger) city, there are dozens of cleaners who offer to wash, iron, and fold your shirt for as little as one Euro. A really affordable way to make your outfit a perfect one.

Tie

Business Tie by Onorato.

Especially for your first meeting(s), you should choose a tie with a muted color which fits nicely with the color of your suit. It may have color and stripes, but it should be slighly more dark than bright, and the pattern of the tie should not be distracting and overly obvious. Little elephants, cars, and other pictures are a no-go! Paisley may already be a bit too much. If you are of a rather pale complexion, a somewhat brigher color may help to create a nice contrast to your suite and your face, but stay within boundaries and don’t overdo it. Your tie should be tied professionally. There are in total six knots of which you should be able to tie at least two. There is a very helpful website on how to tie the various knots in case you are not familiar with the techniques: www.tieknot.com.

Shoes

Classic Oxford Shoe

The ladies clearly have quite a bit more freedom regarding which shoes to wear, at least concerning the color. As long as it fits well with the colors of the costume and blouse (and, to make it perfect, the lady’s bag or purse), there are many possibilities. However, they should be plain colors. Also, high heels should be avoided, even if you master to walk in them with ease. The heels should be middle height, no more, even if you are rather small.

Gentlemen should wear black or brown business shoes, no slippers (they have been out of style since the 1990′s!) The color of the shoes should match with the color of the belt. And please: brown is not brown. Try to have the same brown tone on your shoes as on your belt and vice versa.

A very popular brand for business shoes and matching accessories is LLOYD. As a business man, you should stick to the classic “Oxford” form.

Socks / Stockings

That one is easy: black or very dark blue, no imprints, logos or designs on them, and long enough so your calf doesn’t show when your trousers happen to slide upwards. For ladies, stockings or nylons without designs; shading depending on the costume’s color. And: No socks are no option.

Read on in Part Two

This article is part of the blog, Doing Business With Germans