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Germany” -Land of Technology A GLOBAL / COUNTRY STUDY AND REPORT ON “Germany” -Land Of Technology Submitted to PARUL INSTITUTE OF MANAGEMENT & RESEARCH-2nd shift (Formerly Dr. J. K. Patel Institute of Management) Institute Code: 792 IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In Gujarat Technological University UNDER THE GUIDANCE OF Faculty Guide Ms. VIJAYANTI TIKYANI Assistant Professor Submitted by Batch: 2011-13, MBA SEMESTER IV (Parul Institute of Management & Research-2nd shift) MBA PROGRAMME Affiliated to Gujarat Technological University Ahmedabad June 2013 Parul Institute of Management & Research, 792 1 PREFACE Passing the theoretical subjects is not the way to become a manager in future. The subjects are the bases for our carrier from which we can strengthen our knowledge to apply it in real world. This project provides the platform of opportunity to know the current market situation and the behavior of environment. It gives the opportunity where we can apply the theory knowledge in real world and so that we can be a successful manager in future. This changed the market structure, character and focus of marketing strategies. MBA is course where unlike many other courses practical studies are accompanied together with theoretical studies, case and preparation of various reports consist of the practical studies in this course. The preparation of the GCSR is one such part of the practical studies here. For this purpose we are required to select one particular topic or trade and prepare a report through study research. As the student of management it is learning experience to analyze a trade. It is the most essential for us to expose our skill as a future responsible management post. So, we have decided to go for detail study of country “GERMANY”. How investor could invest after using this report. It helps us to develop our skill and confidence to do better in all respect in management field. Parul Institute of Management & Research, 792 2 ACKNOWLEDGMENT We have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and publications. We would like to extend our sincere thanks to all of them. We are highly indebted to PROF. VIJYANTI TIKYANI for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. We would like to express gratitude towards all our members of Parul Institute of Management & Research, 792 for their kind co-operation and encouragement which help us in completion of our project. We also would like to express our special gratitude and thanks to DIRECTOR DR. P G K MURTHY for giving us such attention and time. Our thanks and appreciations also go to our colleague in developing the project and people who have willingly helped us out with their abilities. Parul Institute of Management & Research, 792 3 TABLE OF CONTENTS Sr. No Particulars Page ECONOMIC OVERVIEW OF THE SELECTED COUNTRY Part -1 (GERMANY) 1 Demographic Profile of Germany 2 Economic Overview of Germany 3 Overview of Industries Trade and Commerce Overview Different economic sectors of 4 Germany 7 - 34 Overviews of Business and Trade at 5 International Level Present Trade Relations and Business with 6 India 7 PESTEL Analysis Part -2 MICRO ANALYSIS OF INDUSTRY/SECTOR Wind/solar energy power plant of Germany 8 35 - 46 and opportunity with Gujarat/India Renewable/green industries of Germany and 9 47 - 55 opportunity with Gujarat/India Tourism industry of Germany and opportunity 10 56 - 65 with Gujarat/India Hotel Industry of Germany and opportunity 11 66 - 74 with Gujarat/India Education Sector of Germany and opportunity 12 75 - 96 with Gujarat/India Textile Industry of Germany and opportunity 13 97 - 126 with Gujarat/India 14 Conclusions & Summary 126- 128 15 Bibliography 129 - 139 Parul Institute of Management & Research, 792 4 PART – I ECONOMIC OVERVIEW OF GERMANY Parul Institute of Management & Research, 792 5 1. DEMOGRAPHIC PROFILE OF THE GERMANY COUNTRY OVERVIEW President: Johannes Rau (since May 1999) Chancellor: Gerhard Schroeder (since September 1998) Independence: January 18, 1871 (reunification of West and East Germany took place on October 3, 1990) Population (2002E): 83 million Location/Size: Central Europe, bordering the Baltic Sea and the North Sea, between the Netherlands and Poland, south of Denmark/137,821 square miles (slightly smaller than Montana) Major Cities: Berlin (national capital since 10/3/90), Hamburg, Munich, Cologne, Frankfurt, Essen, Dortmund, Stuttgart Language: German Ethnic Groups: German 91.5%, Turkish 2.4%, other 6.1% (made up largely of Serbo- Croatian, Italian, Russian, Greek, Polish, Spanish) Religions: Protestant 38%, Roman Catholic 34%, Muslim 1.7%, unaffiliated or other 26.3% Defense (8/98): Army, 230,600; Navy, 26,700; Air Force, 76,200 (including conscripts) GEOGRAPHY 1. Area Year area 2011 est. 357,114 sq. km Parul Institute of Management & Research, 792 6 2. WATER 2.416% 3. Major cities – population Cities Population Berlin (capital) 3.438 million Hamburg 1.786 million Munich 1.349 million Cologne 1.001 million PEOPLE 1. Nationality Noun: German(s) Adjective: German 2. Languages German 80% Germans, Turks 5%, other Europeans 5%, other 10% (Greeks, Kurds, Arabs, etc.) 3. Population Month Year Population July 2011 est. 81,471,834 4. Population growth rate Year Population growth rate (%) 2011 est. -2.08% 5. Age structure Age(years) Male Female Total age structure (%) (2011 est.) 0-14 5,569,390 5,282,245 13.3 15-64 27,227,487 26,617,915 66.1 65 years and over 7,217,163 9,557,634 20.6 Parul Institute of Management & Research, 792 7 6. Ethnic groups German 91.5%, Turkish 2.4%, other 6.1% (made up largely of Greek, Italian, Polish, Russian, Serbo-Croatian, Spanish) 7. Literacy Definition: age 15 and over can read and write Total Population: 99% Male: 99% Female: 99% (2003 EST.) GOVERNMENT 1. Flag three equal horizontal bands of black (top), red, and gold; these colors have played an important role in German history and can be traced back to the medieval banner of the Holy Roman Emperor - a black eagle with red claws and beak on a gold field Coat Of Arms 2. National anthem Name: “Lied der Deutschen" (Song of the Germans) Lyrics/Music: August Heinrich HOFFMANN VON FALLERSLEBEN/Franz Joseph HAYDN Parul Institute of Management & Research, 792 8 3. Currency Euro (€) (2002 – present) Swiss franc (de facto in Büsingen) (EUR, CHF) 4. Government type Federal republic 5. Founded 1949 (Basic Law, i.e., Constitution, promulgated on May 23, 1949) On October 3, 1990, the Federal Republic of Germany and the German Democratic Republic unified in accordance with Article 23 of the F.R.G. Basic Law. 6. Capital Name: Berlin 2. ECONOMIC OVERVIEW OF GERMANY Finance Minister: Hans Eichel Currency: Euro Exchange Rate (03/12/03): 1 US Dollar = 0.90 Euro Gross Domestic Product (GDP, nominal, 2002E): $1.98 trillion (2003E): $2.16 trillion The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Parul Institute of Management & Research, 792 9 Like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms. 1. GDP (purchasing power parity) Year GDP RATE 2011 est. $3.085 trillion 2010 est. $3.003 trillion 2009 est. $2.9 trillion Note: data are in 2011 US dollars 2. GDP - composition by sector Agriculture: 0.8% Industry: 28.6% Services: 70.6% (2011 est.) 3. Population below poverty line 15.5% (2010 EST.) 4. Unemployment rate Year Unemployment rate 2011 est. 6% 2010 est. 6.8% Note: this is the International Labor Organization's rate for international comparisons; Germany's Federal Employment Agency reported an annual average unemployment rate of 7.1% for 2011 and 7.7% for 2010. 5. Investment (gross fixed) 18.2% of GDP (2011 EST.) Parul Institute of Management & Research, 792 10 6. Budget Revenues: $1.551 trillion Expenditures: $1.588 trillion (2011 est.) 7. Inflation rate (consumer prices) Year Inflation rate 2011 est. 2.2% 2010 est. 1.1% MAJOR COMPANIES OF GERMANY IN FORTUNE 500 Country Company Global 500 City Revenues Rank rank ($ millions) 1 Volkswagen 13 Wolfsburg 168,041 2 Daimler 24 Stuttgart 129,481 3 Allianz 27 Munich 127,379 4 E.ON 29 Düsseldorf 125,064 5 Siemens 47 Munich 102,657 6 Metro 65 Düsseldorf 89,081 7 BASF 71 Ludwigshafen 84,597 8 Deutsche Telekom 75 Bonn 82,674 9 BMW 79 Munich 80,099 10 Munich Re Group 88 Munich 76,220 11 Deutsche Post 93 Bonn 71,121 12 RWE 107 ESSEN 67,179 13 Robert Bosch 119 Stuttgart 62,593 14 ThyssenKrupp 138 ESSEN 57,586 15 Deutsche Bank 146 Frankfurt 55,314 16 Bayer 178 Leverkusen 46,473 17 Deutsch Bank 185 Berlin 45,575 18 Franz Haniel 242 Duisburg 36,333 19 Lufthansa Group 245 Cologne 36,190 20 Continental 265 Hanover 34,498 21 DZ Bank 278 Frankfurt 33,611 22 Commerzbank 294 Frankfurt 32,420 23 Edeka zentrale 324 Hamburg 29,392 24 Heraeus Holding 327 Hanau 29172 Parul Institute of Management & Research, 792 11 25 Phoenix Pharmahandel 335 Manheim 28,641 26 Hochtief 353 ESSEN 27,334 27 Energie Baden-Wurttemberg 418 Karlsruhe 23,190 28 TUI 439 Hanover 22,091 29 Bertelsmann 444 Gutersloh 21,791 30 Evonik industries 452 Essen 21,545 31 Fresenius 462 Bad Homburg 21,154 32 Landes Bank Baden- 464 Stuttgart 21,035 Wurttemberg 33 Henkel 486 Dusseldorf 19,989 34 KFW Bankengruppe 497 Frankfurt 19,585 GERMANY - LOCATION FOR BUSINESS AND INVESTMENT Germany's great competitive strength internationally is illustrated most clearly in its high level of and rapidly growing merchandise exports.
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