MANAGERIAL EXPERIENCES OF AMERICAN FIRMS IN GERMANY

This research examines the management issues faced by the Whirlpool Corporation and the Gillette Company in their operations in Germany. Each of the American companies operates in Germany through a subsidiary firm that was acquired through acquisition. Whirlpool acquired the German household appliance manufacturing operations of N. V. Philips, while Gillette acquired Braun, A.G., a German manufacturer of consumer electronic personal care products (Maruca, 1994, pp. 135-145; McConnville, 1992, pp. 52-55).

Following this introduction, a brief description of German business environment entered by the two companies is presented. This description is followed by the international management issues faced by the two companies.

Germany is a nation of 80.3 million people (Hunter, 1994, p. 597). Per capita gross national product is US$24,650, gross domestic product is US$1.8 trillion. Germany's international trade balance is traditionally in the black (p. 604). Exports typically exceed imports by approximately five-percent. German monetary and fiscal policy emphasizes the control of inflationary pressures (Epstein, 1993, p. 47). Consumer prices in Germany have risen by an average of approximately three-percent over the past five years (Economic indicators, 1995, pp. 116-117). The inflation rate in Germany is expected to fall below two-percent per year for the full year in 1995.

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titudes in the United States. Both Whirlpool and Gillette have been required to adjust to these variations. Issues related to ISO 9000 compliance and attitudinal differences are discussed. Issues Related to ISO 9000 Compliance ISO 9000 is a quality assurance system that companies can use as a part of a total quality initiative or as a standalone system. ISO 9000 is a voluntary system for which a company must be certified if recognition as an ISO 9000 firm is desired or if ISO recognition for one or more specific products is desired. Certification must be made by an independent registrar who evaluates a company's processes within the context of quality standards established by the International Standards organization. ISO certification, however, is a fact of life for firms doing business in Germany, as adherence to the protocol is virtually mandatory because of demands made by customers and suppliers (Manufacturers, 1993, pp. 21-22). The International Standards Organization located in Geneva, Switzerland promotes the development of product and service standards that will be recognized and accepted by each member country, of which Germany is one (Ferguson, 1994, pp. 22-24). ISO 9000 is the set of standards that was created
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Some common words found in the essay are:
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Approximate Word count = 1779
Approximate Pages = 7 (250 words per page)