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Business Business Profile Since World War II, Munich has developed into one of Germany’s leading economic and industrial centres. Industrial production accounts for slightly more than half of the city’s annual turnover of €201 billion in 2000, with wholesale and retail trade contributing €36.6 billion. In terms of unemployment, Munich is faring much better than the rest of Germany, with an unemployment rate of just 4% compared to the national rate of 9.4% at the start of 2001. The city’s major industries include mechanical engineering, electronics (Siemens), automotive assembly (BMW), computer industry (IBM Deutschland GmbH and Microsoft GmbH), precision mechanics, optics and construction. Approximately 25.8% of the workforce is employed in manufacturing. Meanwhile, Munich’s world-famous breweries produce 5.6 million hectolitres (123 million gallons) of beer per year and employ some 2400 people. The media sector, including 1500 publishers, one national newspaper, four regional newspapers, the state broadcasting corporation and a film-studio, employs over 100,000 people. In recent years, there has been substantial growth in high-tech industries – especially microelectronics, computer software and hardware – making the so-called ‘Isar Valley’ one of Germany’s main IT locations. The city is a centre of medical research, biochemistry, biogenetic and medical technology, with companies including Glaxo Smith Kline Pharma GmbH and GPC Biotech AG. Also significant are communications technology, financial services, instrument engineering and new materials. Measured in terms of premium revenue, Munich leads the world as a centre of insurance. The city is home to 280 domestic and foreign insurance companies, which provide employment for some 30,000 people. Among these are the headquarters of four of Europe’s leading insurers – Allianz (direct insurance), Münchener Rück (reinsurance) and DAS (legal insurance). Munich is the country’s second most important banking city (after Frankfurt), with the HypoVereinsbank and the Bayerische Landesbank both headquartered in Munich. In all, some 80 insurance and banking firms have their national headquarters here. The favourable economic climate and impressive industrial calibre of the city, combined with its numerous tourist attractions, make Munich a popular congress, trade fair and incentive destination. The Internationales Congress Center München – ICM (website: www.icm-muenchen.de) is located in the east of the city, on the Messe München International (website: www.messe-muenchen.de) trade fair grounds. Business Etiquette Business hours are Monday to Friday 0900-1800 and, although rarely, Saturday 0900-1400. Some offices close early on Fridays, at 1400. Punctuality is absolutely essential in Germany and although Bavarians may appear more relaxed than their northern counterparts, they will regard lateness as rude and incompetent. A smart appearance is also important and it is wise for business travellers to enquire as to the dress code if socialising with business contacts outside work. The usual greeting in both business and social settings is a firm handshake. Business contacts should be addressed by their surname, prefixed by Herr for a man or Frau for a woman. Where applicable, academic titles should always be used (eg Herr Doktor). Germans are known for straight talking and they will expect business counterparts from other countries to be similarly direct. In some circumstances, instead of showing approval with applause, Bavarian businessmen and women may rap their knuckles on the table instead. Business may be conducted in a social setting although usually only with well acquainted business contacts. Germans rarely invite business associates to their homes. In a social situation, one should always wait for the host to initiate business discussions. Lunch meetings, often with alcohol, are most favoured. Visitors should remember that when drinking beer, the common toast is ‘Prost’, while with wine it is the more genteel version, ‘Zum Wohl’. |
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