Doing Business in Germany and China

Colin Forrest, Oleksandr Mazniker, Laura Mills

Table of Contents

•General Concepts•Fact Sheet•Structure and Hierarchy•Relationships and Communication•Business Negotiations•Conclusion

General Concepts

•Power Distance•Ascription and Achievement•Individualism and Collectivism •Time•Face•Task- and Relationship-Focus•Uncertainty Avoidance•Low- and High- Context Communication•Paternalism

Fact SheetGermany China

Population 82,400,000 1,298,847,624

Official language German Mandarin, Cantonese

Currency Euro (EUR) Yuan (CNY)

Capital city Berlin Beijing

GDP $3.31 trillion (2010) $5,88 trillion (2010)

Source: http://www.communicaid.com/

Structure and HierarchyGermany China

Rank and status • Low power distance

• Achievement (e.g. G. Schroeder)

• High power distance

• Ascription• Address with

honorific title

Status symbols • Cars• Houses

• Age• Family name

“With age comes

respect!”PD: 35 PD: 80

Hofstede (2002):

Artist: Yang Liu

Relationships and CommunicationGermany ChinaCommunication style • Truth and directness

• Formal• Non confrontational• Passive – no eye contact

Management style • Instructions• Specific capabilities• Strong leaders

• Rank is important• Manager seen as “father

figure”

Teamwork • ‘A group of individuals working to a specific leader towards a recognisable goal.’

• Supervision and responsibility

• Teamwork is important

Socialising • Clear division of private life and work

• Chinese like to get to know you

• Entertainment“I leave my work at the workplace, when I go

home”Individualism: 67

Individualism: 20

Hofstede (2002):

Artist: Yang Liu

Business NegotiationsGermany China

Meeting etiquette

• Appointments and agenda's

• Protocol• Pre-Planners

• Appointments 1 – 2 months in advance

• Patience

Dress etiquette • Formal and conservative

• Conservative and unpretentious

• Avoid white

Time • Punctuality• Uncertainty

avoidance (65)• Monochronic

• Punctuality• Uncertainty

avoidance (40)• Polychronic

“be punctual!”

“white is associated with death”

“meeting deadlines is obligatory”

Example of a German Business Meeting

Source: http://www.young-germany.de/uploads/pics/Meeting.jpg

Conclusion

Germany ChinaOrdnung

(Oraganisation)Guanxi (Networking)

Focus on facts Confucianism (focus on relationships)Focus on tasks

Direct communication Mianzi (Face)Individualism Collectivism

“You ask someone older than you for directions to a landmark. Rather than losing face by telling you that he

does not know how to get there, the man confidently points you in the wrong direction!”

Source: http://www.communicaid.com/

Thank you!

Danke!

References• http://www.gaoshan.de/kmchina/thesis.php?show=40• http://www.spiegel.de/fotostrecke/fotostrecke-23136.html• http://www.kwintessential.co.uk/• http://

www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing%20Business%20in%20Germany.pdf

• http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing%20Business%20in%20China.pdf

• http://www.icunet.ag/uploads/media/DA_Unterschiede_der_Kulturen_Jens_Walther.pdf

• http://www.patrickweber.info/files/WirtschaftKult_D&Ch.pdf• http://www.afs60.de/webcontent/files/AFS-Lehrerhandbuch_V1.

pdf• http://www.worldbusinessculture.com• http://www.communicaid.com/access/pdf/library/culture/doing-

business-in/Doing%20Business%20in%20Germany.pdf• http://www.lct-consultants.org/files/Eric_Lynn_DB_w_Germ.pdf