Establishing strong market presence in the United States of America and in Germany requires dramatically different approaches to marketing and management (Daniels, Radebaugh & Sullivan, 2007). In particular, it is reasonable to assume that the corporate organizational structure, as well as the marketing methods, which were effective in the United States may not be as effective in Germany, or in other European countries. Penetrating into the domestic German market of geotechnical engineering and construction, indispensably require establishing an energetic research & development unit, adoption of the European-styled organizational culture and strong legal department, which will oversee all relevant cross-border issues.
Therefore, making the following modifications to the company structure are necessary:
Firstly, the company should establish a German Desk within its sales department. In addition to that, a position of the German Desk Director, who will be reporting to the Senior Vice President of Business Development, is necessary. This department will be responsible for collecting the relevant data about the German market and developing appropriate market strategies. Quantitative data about potential clients, their financial power and estimated financial turnovers are not openly available in Germany, as well in the other countries of the European Union (Luthas & Doh, 2015). Market research companies operating in this field are rare, as well as their pricing strategies make long-term cooperation costly. Coupled with the fact that this market constantly fluctuates, and the demand dynamically plummets down and rises, creating a permanently functioning in-house market research department is necessary (Luthas & Doh, 2015). Once the company becomes deeply rooted in the market, this department may be merged with the traditional sales department, though it is a long-term option.
Secondly, the studies show that there are substantial differences between the German and the United States business cultures (Minkov, 2007). Specifically, while laissez-faire approach to creating business culture is well established in the United States, in German authoritarian method of corporate governance is still strongly practiced, although some trends to patriarchal and flat frameworks are emerging on the business horizon there. Yet, whatever styles are in use there, there are several substantial differences between the two business cultures. Firstly, punctuality is paramount for the Germans. While coming 10 minutes late because of traffic jams is sometimes connived in San Diego, it is never an excuse in Germany. Secondly, the German professionals are more averse to risk-taking. In this dimension, only the Japanese workers outmatch them. Thirdly, it is important to remember that a German workplace is always highly formalized, and there is no place for personal communication or friendly talk there (Minkov, 2007). Assuming that the company will relocate some of their professionals to the Federative Republic, remembering all these intricacies, and, most importantly, interweaving them into their professional behavior will be a task of particular complexity. Therefore, it seems to be reasonable to establish a provisional ‘business culture transition and integration department’. It will be providing consulting to the employees of the USA origin and teaching them how to deal with the German customers and partners in an acceptable and professional manner.
Lastly, because the company operates in a specialized industry, where much high-tech equipment is involved, the need of competent cross-border legal advice is necessary (Luthas & Doh, 2015). Outsourcing these services to a law firm in the USA and Germany is both costly and organizationally burdensome. Therefore, establishing a small in-house legal department, which will be advising the management in relation to all necessary transatlantic shipments, personnel relocation and other issues is relevant.
Overall, making these small changes to the company structure will help the firm to finalize its business transition to the German market successfully, and with minimum amount of financial and human resources.
References
Daniels, J., Radebaugh, L. & Sullivan, D. (2007). International business: environments and operations. Upper Saddle River, N.J: Pearson/Prentice Hall.
Luthans, F. & Doh, J. (2015). International management: culture, strategy, and behavior. New York, NY: McGraw-Hill.
Minkov, M. (2007). What makes us different and similar: a new interpretation of the World Values Survey and other cross-cultural data. Sofia: Klasika i Stil Publishing House.
