How to Conduct Business While in Germany

When conducting business abroad, it is vital to business that you are aware of the different customs and techniques of other cultures. In order to maintain a happy and successful business relationship, you must maintain a fundamental knowledge that will guarantee you success in a foreign country. The following is crucial information that you should be equipped with when conducting business in Germany.

BUSINESS ETIQUETTE AND RULES

Business Attire

It is very important to dress very professionally when conducting business in Germany. Business people should always dress elegantly without elaborating it (The Bag Lady, 2005). Both men and women generally wear dark suits. Business wear in general is informal but still appropriate for the business atmosphere. Men are usually dressed more formally than women. They often wear suits and ties. Khakis are inappropriate, even when accompanied by a tie and suit jacket. This is especially so for first meetings. Women should avoid wearing excessive jewelry. Colors for business wear are more often than not in muted, neutral colors (Peterson, 2003). Germans will also sometimes make a fashion statement by wearing white socks with black suits (Priest, 2003).

Negotiations

It is imperative to enter a business meeting well prepared. Germans will expect all parties involved to be well informed. Know your facts before conducting any negotiations and be prepared for any possible questions that may arise. Germans absolutely do not like last minute changes in contracts or in negotiations. They do not like surprises (Priest, 2003). Germans do not like anything spontaneous in business transactions. They expect to know what is going to happen next and be aware of their situation and all negotiations (Peterson, 2003).

Germans like to follow an agenda. There is very little time for small talk when participating in a meeting. Rather, they follow the agenda, point by point. Germans do not feel it is rude to interrupt someone while participating in a business meeting and in fact will do so if they feel that you are getting off topic. Germans will often try to speak up when they feel that they may be interrupted in order to try avoiding being interrupted.

Often at a first meeting, Germans try to get to know the person or topic by conducting a meeting that is similar to a question and answer meeting form. They will often throw out questions 4 or 5 right after another and expect you to keep up with the pace of the meeting (Peterson, 2003).

Making Appointments

Punctuality is key in all business meetings and negotiations in Germany. Germans see latest as a sign of weakness. Even arriving 5 to 10 minutes late is not approved (Peterson, 2003). In order to conduct a meeting with someone, you must have an appointment. You cannot drop into someone’s office unannounced and expect to conduct any business. Give one or two weeks notice for all meetings. Ideally, you should allow for month’s notice for business meetings.

General Business Behavior

There is no humor in German business relationships. Business is a serious matter and German’s regard it as such. Germans also prefer to keep a large area of personal space, usually about 6-8 inches (Priest, 2003).
When entering a business meeting or social event, shake the man’s hand. You also should wait until a woman extends her hand to initiate the fact that she wishes to shake hands. Germans prefer to be introduced to a third party. They do not like having to introduce themselves (Peterson, 2003). Titles are very important to Germans. It’s very inappropriate not to address someone by his or her correct title (Priest, 2003).

SOCIAL ETIQUETTE AND RULES

Conversation

Maintain eye contact with speaking with someone in a business or social relationship. It is a sign of respect. Do not presume that everyone speaks English. There may be some offense taken at that presumption. When having a conversation with someone, you should typically keep a distance of about 2 feet (Peterson, 2003).

Entertainment

Most of the time, you seat yourself in restaurants. It is not uncommon to share a table with strangers on a business night in a restaurant. If this situation arises, it is not necessary to maintain a conversation with the people at your table. Always use utensils when eating. Very few meals in Germany do not require utensils. When eating, never put your elbows on the table. If you wish to smoke and the people in your party are not smoking, it is polite to inquire if they mind before you smoke. Before lighting a cigarette, always ask those in your party if they would like one (Peterson, 2003).

A tip of 10% or less is plenty. If you invite someone to dinner, you are offering to pay. The person who is inviting the people to the meal is inviting to pay. However, if someone suggests that you go out to eat together, this is not an invitation to a meal and it is not an invitation to pay for the meal.

When invited to a meal at someone’s house, the host expects you to be direct. For instance, if you have a food allergy, etc. and cannot eat something, the host will not be offended by this information (Peterson, 2003). Unlike restaurants, when you are invited to a person’s home for a sit down dinner, you should not assume that you are seating yourself and should wait to be seated by the host, unless said otherwise. If you are invited to a business meeting at home, usually business will not be conducted there and rather it is more of a “getting to know you” type of meeting to build a social camaraderie.

Gift Giving

A small gift is generally polite when you are meeting someone for the first time. It is not necessary to give small gifts to thank people, but it will be appreciated. Some gift ideas are quality office items; such as pens, imported wine or liquor are safe choices. A food specialty of your country is also a good gift idea (Peterson, 2003).

REFERENCES

Petersen, A and S. German Business Culture, Etiquette- Business Dress. 2003. Retrieved October 10, 2005, from:
http://www.executiveplanet.com/business-culture-in/137024466218.html

Petersen, A and S. German Business Culture, Etiquette- Conversation, Part 1. 2003.
Retrieved October 10, 2005, from:
http://www.executiveplanet.com/business-culture-in/132162950169.html

Petersen, A and S. German Business Culture, Etiquette- Appointment Alert. 2003.
Retrieved October 10, 2005, from:
http://www.executiveplanet.com/business-culture-in/132163255348.html

Peterson, A and S. German Business Culture, Etiquette- Let’s Make a Deal Part 1. 2003.
Retrieved October 10, 2005, from:
http://www.executiveplanet.com/business-culture-in/132163526658.html

Priest, Mark. German Business, Etiquette, Manners, Cross Cultural Communication, and
Geert Hofstede. Retrieved October 10, 2005, from:
http://www.cyborlink.com/besite/germany.htm