Germans Way/ Characteristics of

Production
Group 3
Alvarez, Cheng, Javier, Pascual
Germany
Largest economy in Europe
Fourth largest by nominal GDP
Fifth by GDP
3rd LARGEST EXPORTER IN THE WORLD.
Germanys Production
Largest producer of lignite
Rich in timber, iron, ore, potash, nickel, salt,
uranium, copper and natural gas
Energy fossil fuels, nuclear power, and
renewable energy like biomass, wind, hydro,
and solar
GERMANY IS THE LEADING PRODUCER OF
WIND TURBINES AND SOLAR POWER
TECHNOLOGY IN THE WORLD.
EXPORT GOODS IMPORT GOODS
MOTOR VEHICLES MACHINERY
MACHINERY DATA PROCESSING EQUIPMENT
CHEMICALS VEHICLES
COMPUTER AND ELECTRONIC PRODUCTS OIL AND GAS
ELECTRICAL EQUIPMENT FOODSTUFFS
PHARMACEUTICALS AGRICULTURAL PRODUCTS
TRANSPORT EQUIPMENTS
MAIN INDUSTRIES
IRON AND STEEL
COAL, CEMENT, MINERAL FUELS, CHEMICALS, PLASTICS
PRODUCTION OF MACHINERY, VEHICLES, AND TRAINS
MACHINE TOOLS, ELECTRONICS
FOOD AND BEVERAGES
SHIPBUILDING, SPACE AND AIRCRAFT
OPTICAL AND MEDICAL PHARMACEUTICALS
TEXTILES, AGRICULTURE
CHARACTERISTICS OF GERMAN
PRODUCTION
Manufacturing firms are export-oriented
Germany industry are characterized by a clear
willingness to achieve consensus.
- Employers and employees may belong to diff.
parties but both sides are prepared to
compromise for the long term success of the
company
The framework in which businesses in Germany
operate is distinguished by moderation and
continuity, as well as, by a pragmatic and
flexible attitude
Balance also characterizes the countrys
education and training system
-average of level of Germanys college-level
education is very high in international
comparison
Mix of large and small businesses
-Germany profits from a healthy mix of large,
globally active firms along with numerous smaller
and medium-sized businesses (called Mittlestand)
Technology-based production
- Germanys firms utilizes machines to operate
more than man
High capacity for innovation
- German manufacturing is open to innovations
- Major expenditures for research and development paired with a pragmatic
sense for developing marketable products provide for a significant
competitive advantage for German businesses.
- Presence of German companies in technologically sophisticated branches
and segments widens their global reach

Expert Executives
- A further advantage enjoyed by German businesses is that they frequently
have engineers and natural scientists at their helms.
- Such leaders can generally be assumed to have deeper product knowledge
and a keener sense of the possibilities and limits of product development
than is usually the case with managers with other academic or
professional backgrounds.

Timing of product innovation and market entry match up
- Germanys businesses have managed conspicuously often to be present at
the right time, with the right products in the right places
- Supply matches demand
Supplier relationships developed over time
- An example of the close cooperation betweeen
larger and smaller firms is the automobile
industry
- Suppliers are increasingly assuming bigger parts
of the production chain, and often take on the
development of important components and even
of complete vehicles.
Quick decision-making processes and executives
with hands-on production experience
- Unlike large corporations, small and medium-sized
businesses in Germany can act quickly and
flexibly

CONCLUSIONS
Germany with its exceptionally stable economy
serves as a model to other nations in Europe. It is
particularly the strength of its manufacturing
sector which sets it apart from other nations
Their manufacturing firms are strongly and
heavily export-oriented and as a consequence are
exposed to intensified pressure to modernize and
adapt. This leads to heightened investments and
innovation efforts.