Chapter 139 What changed Germans was American mergers and acquisitions

Another mid-sized country that Japan should learn from is Germany. Although Germany is a medium-sized country, its economy can rival that of a big country.In any case, before its GDP was surpassed by Japan, Germany was also the second largest economic power in the world.However, after the end of the Cold War, the unification of East and West Germany made East Germany a burden for Germany, and Germany has been in a long-term downturn since then. But later Germany broke away from this long tunnel of downturn and realized the great cause of adapting to globalization.Now Germany is not only the "leader" of the EU economy, but also feeds the 20 million population of the former East Germany, playing an important role as a member of the global economy.

Ordinary countries and ordinary citizens cannot do this.After the reunification of East and West Germany, the unemployment rate in East Germany was once as high as 40%. West Germany supported East Germany for five years with the 5% extra tax paid by its citizens every year. This may have gradually changed the consciousness of the citizens, who seriously considered how to survive in this globalized world. However, the most important reason why Germany’s national consciousness has undergone such a drastic change is that large German companies have implemented large-scale mergers and acquisitions (M&A) in the United States, forcing the citizens to change their original quality.

Known as the three major chemical companies, Hearst, BASF, and Bayer have made large-scale acquisitions in the United States one after another.If the acquirer can turn the acquired company around, but does not reorganize it, the entire company is in danger of falling into crisis. Daimler was in crisis when it acquired Chrysler, as was Siemens when it acquired WH Industries in the United States.To overcome these crises, the Germans began to seriously consider global operations. Both Japanese companies and German companies have suffered a lot in the huge market of the United States.However, compared to the organic growth adopted by Japanese companies, German companies have adopted a bold growth strategy of mergers and acquisitions.Doing so not only requires a huge investment, but also may lead to a temporary decline in the productivity of the company due to differences in corporate culture.

Therefore, if you want to obtain a position above a department manager in Germany, German-style management is not feasible. Not only must you have the ability to run an American company, but you also need to reorganize your finances, and you must be able to use English.In this way, Germany began a truly global operation. For example, the Mercedes-Benz cars produced by Daimler in Stuttgart, their home country, are technically and technologically correct, but the ones produced in the United States are not good. .Daimler was held back by acquired Chrysler. Therefore, how to rectify the acquired companies, how to let Americans make full use of German technology, how to boost the morale of American employees-talents who can do these have become the top priorities.In other words, only by doing these things can one become an employee of the German headquarters.At this point, the time to test the German businessmen has come.

"If you only stick to your own country, you will not be able to win in the world. If you can't use it in the world, you can't use it in your own country." This is globalization, and German companies and Germans have sprouted this awareness.