Week 4, due in 5 hours, 5 slides, 2 Pages

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Germany Business Environment

Germany Economy

  • Germany has exhibited a positive economic growth in the recent past.
  • The economy grew at a rate of 2.2% in 2017
  • The growth was 1.86% in 2016 in comparison to 1.59% in 2015.
  • The economy is projected to grow steadily at about 2.4%
  • Export and import segments recorded $1.61 trillion and $1.35 trillion worth of trade. (German government ups (.2018).

The German economy has exhibited a positive economic growth trend in the recent past. The economy grew at a rate of 2.2% in 2017 as a result of the increase in domestic demand. The growth was 1.86% in 2016 in comparison to 1.59% in 2015 ( Germany: In-depth PESTLE insights' 2017).

The economy is projected to grow steadily at about 2.4%

The export and import segments recorded an impressive $1.61 trillion and $1.35 trillion worth of trade (German government ups, 2018).

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Germany Economy

  • Growth is as a result of:
  • Increase in domestic demand.
  • Robust foreign trade in recent past
  • Private consumption and raise in wages
  • Economic growth is projected to lead to a robust budget surplus and decrease the public debt.

The growth in economy is attributed to a strong domestic demand and robust foreign trade. The growth in private consumption and raise in wages have fueled the demand for products. The rise in economic growth is projected to lead to a robust budget surplus and decrease the public debt.

Growth in gross domestic product (GDP) is outpacing the potential output. This will lead to a decline in unemployment and increase in wages (Deutsche Bundesbank Monthly Report December, 2017).

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Does Economy Favor Expansion?

  • Germany is an economically influential member of the EU
  • A social market economy that embraces free enterprise
  • The legal system protects businesses
  • Excellent infrastructure contribute to sustainable businesses
  • Welcoming to foreign investment
  • The robust economy makes Germany most attractive business environment

Germany economy is characterized by political stability, flexibility, innovative capacity, and overall quality. The country ahs social market economy that makes it embrace the spirit of free enterprise. However, there are numerous controls and legal administrative measures that are meant to help create level playing field. There are laws against competition, antitrust provisions, and other protection measures meant to safeguard the enviroemnt from unscrupulous business practices. The positive growth trends and growth prospects make it an attractive business enviroemnt for foreign investors. It presents numerous opportunities for growth and expansion (Pwc, 2017).

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Source: https://www.cesifo-group.de/ifoHome/facts/Forecasts/Ifo-Economic-Forecast/Archiv/ifo-Prognose-20-06-2017.html

Business Ethics Germany

  • Germany business enviroemnt is highly regulated
  • Germany has a business assessment ethics
  • Business regulations are applied both at the federal and regional government levels
  • German is ranked 13th out of 176 countries worldwide to corruption perceptions index (CPI)
  • Germany takes part in several EU anti-corruption measure

Germany has a business assessment ethics at the federal and regional government levels. German policies and initiatives do support ethics practices aimed at preventing private businesses from engaging in unethical business practices.

According to transparency international, German is ranked 13th out of 176 countries worldwide to corruption perceptions index (CPI).

Germany takes part in several EU anti-corruption measures and hence has increased its penalties against corrupt practices such as bribery, price fixing, and public tender. (Saskia et al., 2015).

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Business Ethics Germany

  • Business ethics to be observed include:
  • Bribery and Corruption
  • Price fixing
  • Unfair completion
  • Unethical marketing strategies
  • Target will have to guard against while operating in Germany
  • Target employees need to be aware the significance of these laws and hence comply with the legal regulations (Saskia et al., 2015).

German has a Behavior in competition guide provides competition and antitrust laws hence Target employees need to be aware the significance of these laws and hence comply with the legal regulations (Saskia et al., 2015). Therefore, for companies operating in Germany or planning to venture into the Germany business enviroemnt, they should be aware that the country has in place stern measures against unethical business practices such as giving or receiving kickbacks, Bribery and Corruption are some of the key challenges that Target will have to guard against while operating in Germany.

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Corporate Social Responsibility

  • German government has strict measures aimed at protecting the enviroemnt.
  • It has set goals to reduce greenhouse gas emissions.
  • Corporate social responsibility (CSR) is a key requirement for businesses
  • The German public associate with companies that observe more responsible and ethical business practices
  • Target must be socially responsive to avoid trouble with government and consumers

German government has strict measures aimed at protecting the enviroemnt. The government tries to promote energy efficiency and renewable energy as part of its goal to reducing greenhouse gas emissions.

Federal Government is keen on businesses that promote corporate social responsibility (CSR). Germans themselves have expressed their desire to associate with companies that observe more responsible and ethical business practices.

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Refferences

  • Berthoin, A,, Maria, A. & Sobczak, A. (2009). (Re)discovering the Social Responsibility of Business in Germany. Journal of Business Ethics. Vol. 89, Supplement 3: What the European Tradition Can Teach about Corporate Social Responsibility (2009), pp. 285-301
  • Germany: In-depth PESTLE insights (2017). Hospitality & Tourism Complete, EBSCOhost, viewed 27 May 2018
  • German government ups (.2018). Economic outlook. DW. Available at: http://www.dw.com/en/german-government-ups-2018-economic-outlook/a-42381436
  • Deutsche Bundesbank Monthly Report December (2017). Outlook for the German economy – macroeconomic projections for 2018 and 2019 and an outlook for 2020. https://www.bundesbank.de/Redaktion/EN/Downloads/Publications/Monthly_Report_Articles/2017/2017_12_outlook.pdf?__blob=publicationFile
  • Pwc (2017). Doing business and Invetign in Germany. Available at: https://www.pwc.com/hu/hu/german_business_group/assets/doing_business_in_germany_guide_2017.pdf
  • Saskia K. Nagel, Michael Nagenborg, Wessel Reijers - (2015). Ethics Assessment in Different Countries: Germany. Ethical Assessment of Research and Innovation: A Comparative Analysis of Practices and Institutions in the EU and selected other countries. http://satoriproject.eu/media/4.e-Country-report-Germany.pdf

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