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Biotechnology Incorporated: Is Expansion to Germany a Good or Bad Ideal

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Biotechnology Incorporated: Is expansion to Germany a good or bad ideal?
At Biotechnology Incorporated we are looking towards globalizing our organization into other parts of the world. One of the countries that our organization Biotechnology Incorporated are considering expanding to is Germany. In this report I will go over the different factors such as the economy, political influences, language, culture, and cost of doing business in Germany. From the research I will gather I will give my opinion on wither Biotechnology will benefit from opening an office in Germany and the type of operation we will chose to do business in Germany.
Germany and the Economy
The Federal Republic of Germany is the European Union’s most populous country, the EU’s largest economy and the world’s fourth largest economy.8 According to the IMF, Germany has achieved a GDP of $US3.4 trillion in 2011, and enjoys a relatively low unemployment rate of 5.7% which is significantly lower than most EU countries.8 Germany’s economy remains strong, focusing on service sectors, science, technology, and specialized manufacturing and engineering. Germany is also a global leader in the development of environmental technologies, with a focus on energy efficiency and sustainability of resources.
In Germany the biotechnology sector is growing at a steady pace. The reason for this growth is because biotechnology has become the basis and driving factor behind many applications in medicine, the food and feed industry and chemical industry. The growth can also be contributed to the government funds that Germany created in order to promote the creation of new biotechnology companies.
Politics in Germany
Unlike many nations and countries Germany is a federal parliamentary republic. The federal legislative power is vested in the Bundestag which is another name for parliament and the Bundersat which stands for the representative body of Lander, Germany’s regional states.5 Germany is divided into sixteen states which are called Lander, there are also two subdivision and they are districts known as Kreise and cities known as Kreisfreie Städte. Each of the sixteen states in create the federation of Germany all posse their own constitutions, parliament, and governments.
Since the states in Germany all have their own government and constitution it is important to research the laws and regulations of a particular state. This research can be the difference between following the law or breaking the law in the state that we chose to conduct business in.
Language in Germany
German is the official language that is spoken in Germany.5 The German language is also one of the four official languages spoken in Switzerland along with French, Italian, and Romansh. The German language has different dialects and variations of their language. One might encounter individuals who might speak Low German, most Upper German and High Franconian dialects, and even some Central German dialects when spoken in their purest form, are not intelligible to people who only know standard German.5 While German is the main language spoken in Germany it is not uncommon to hear other languages as a result of immigration. Some of the different languages you might hear can range from Sorbian, Danish, Romany, Frisian, Turkish, Kurdish, Polish, the Balkan languages, and Russian are the most spoken languages of immigrants.3
It is important to understand how body language and facial expressions can affect how effective a business meeting will be. It is vital that our biotechnology company understand that customs and culture might be different when doing business in Germany. For example Germans value their privacy, so asking a personal question while at work might offend a fellow employee. One should also realize that Germans poses a style of communication that is very direct and straight to the point; this can reduce the amount of miscommunication between individuals.
The Culture in Germany
The culture of Germany is rich in art, literature, festivals, architecture, and cuisine, while their customs are based on punctuality, efficiency, and discipline.9 When introducing yourself to German’s that you know or unfamiliar with handshakes and guten tag are acceptable.9 When attending a business meeting, luncheon, or dinner it is important to arrive set arrival time, arriving before or after scheduled time is considered signs of inefficiency.9
In business practices it is important to remember that while your own culture provides an acceptable framework for behavior and belief that your preference and behaviors are culturally based but does not mean they are the correct or the only ones.1 An example of some German behaviors range from having direct eye contact, closed doors at the offices does not mean an individual does not want to be bothered.
Cost of doing business in Germany
Opening a biotechnology company in Germany can be a very costly venture. Before a biotechnical company considers opening an office in Germany they should first consider finding investors to back up their venture capital.10 Acquiring investors is vital for the success of biotechnical companies because it allows them the freedom for drug discovery and development without worrying about where the cash is coming from.
Our organization will benefit from creating a joint-venture when opening a biotechnology company in Germany. A joint-venture will allow our organization to share the burden of cost, and responsibility with another organization. Along with acquiring joint-ventures with other companies, government funded programs also have the ability to help our organization deal with the high price of research and development when dealing with a biotechnology field.
Recommendation for our organization
It is in my opinion that we should extend our biotechnology company to Germany because of the numerous amount of potential benefits we could see. Germany is rich in Universities and companies that teach and deal with the biotechnology field. By creating a joint-venture with an existing biotechnology company in Germany we will be at an advantage, because we will receive help and reduce the full burden of cost. Government funding for different biotechnology research is another way our organization can benefit from opening an office in Germany while cutting down on our costs. Another benefit of being in a joint-venture with a native German company is that there is a high possibility that the amount of miscommunication, misinterpretation, preconceived notions can be reduce by educating individual the correct customs that Germans live by. Any individual in our organization that will be employed in our Germany office should be fluent in German and their customs in order to deal with the day to day interactions in the office. The biotechnology field in Germany will continue to grow; I want our organization to follow this growing trend.

References 1. http://businessculture.org/western-europe/business-culture-in-germany/business-communication-in-germany/

2. http://www.expatica.com/de/essentials_moving_to/essentials/setting-up-your-own-business-in-germany-27408.html

3. http://businessculture.org/western-europe/business-culture-in-germany/

4. http://en.wikipedia.org/wiki/Politics_of_Germany

5. http://www.heritage.org/index/country/germany

6. http://en.wikipedia.org/wiki/Economy_of_Germany

7. http://www.hrzone.com/feature/strategy/doing-business-germany-cultural-considerations-hr/140972

8. http://www.mapsofworld.com/germany/about/culture.html

9. http://www.nature.com/bioent/2009/090501/full/bioe.2009.5.html

10. http://en.wikipedia.org/wiki/Joint_venture

11. http://www.research-in-germany.de/dachportal/en/Research-Areas-A-Z/Biotechnology.html

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