„I don’t know, Mr. Lange… Do you really want to keep it on for the meeting with the Americans?“

Confucius spoke of three ways for people to act in an intelligent manner: the first and noblest is to take the time to reflect; the second and easiest is to imitate; the third and most bitter for being the most expansive is to act according to one’s own experience.

Human beings are surely capable of learning but are we also ready to learn from our experiences?  I do have my doubts when I see what is going on in everyday business.

That is why I invite you to take at least a short look at the following ten glocal game rules, which I have always tried to keep in mind in my many years of experience. More than ever, the most successful international companies are the ones which enter the exporting country with a global vision while also using glocal strategies. Bear in mind that potential clients increasingly wish for individual products and services as opposed to a product which is sold everywhere and does not meet their local perceptions.

1. Think global but act as local as possible. Take therefore enough time to work on the target market:
   Nothing is more dangerous than letting yourself get blinded by your success in your home market; the export market will require time before you gain an understanding of it. A shopping center is not a shopping center right away and consumers’ shopping habits are not the same everywhere.
2. Act as glocal as possible:
   To act as an internationally successful company is not necessarily wrong, yet without the right local touch with, for example, local employees, you will not be able to achieve a successful market entry. Expatriates are in my view no longer up-to-date as fierce competition requires having a deep understanding of target markets, and target markets are in the end people. Or would you actually want to reach trustful agreements with the Polish city administration in Spanish (universal language)?
3. Surround yourself with local partners:
   Speaking foreign languages is a good thing but you will not get the between-the-lines nuances if they are not a native speaker. With a 1.500-word English vocabulary, one comes across as limited, and therefore trust will be very slow to build.
4. Sell your products and services as if they were local products:
   Even globally-operating car manufacturers adapt their products locally. Just think for example of which side of the street people drive on, or if the honk has to meet higher requirements in India than in the German home market. All the same, the Berliner beer Schultheiss will not be marketed in Southern Europe with the advertising slogan “Dit is n Einkoofserlebnis!” (“What a shopping experience”, in Berliner dialect).
5. Consider the regional, cultural environment and the local conditions:
   Whether a matter of mini-skirts, alcohol or pork, a blunder is just around the corner! But success lies sometimes in very small details: just an inappropriate speech or greetings to clients can quickly lead to misunderstandings: informal or formal address or a simple bow?  When in Asia, have you thought about paying your respects to the entrepreneur’s father in order to get his consent to the business relationship?
6. Respect local laws:
   Not only labor legislation can make your life difficult or plain impossible, the legal foundations for franchises in Europe also greatly. Without thorough knowledge, nothing can be done.
   Contracts with agents must be concluded according to local requirements. The risk for you to suddenly have an employee and therefore unknowingly evade taxes and social security contributions is simply too great.
7. Take your local competition into account:
   Look closely at your local competition and their sales strategies and you will start to understand the market. For instance, why can the balance sheet of a Portuguese company only be dealt with by a certified accountant (TOC)?
8. Don’t do it alone:
   Why doesn’t the competition in Spain sell tobacco in supermarkets? Watch your competitor. He will gladly explain how things are done. Even better: if you cannot beat him, work with him. Both “never walk alone” and “if you can’t beat them, join them” are very valid in my view.
9. One market at a time:
   Just to mention two classical misleading statements: 1. “Spain and Portugal are for us one single market, which we serve from the same office” 2. “Prepare a list of the African countries we want to start working in next year”.  Each market has its own game rules and more than one assignment of this kind should not be expected.
10. Don’t look for instant success, think long-term:
    Rome was not built in one day, and I’ll add to that: I have nothing against quick successes and profits but the likelihood is still as high as winning the lottery. In the beginning, investments are inevitable, necessary and important, and if you start getting profitable after three years, I will congratulate you profusely.

Whether you have just browsed over the article, scanned it, read it with a colleague or thoroughly read through was your decision. I would hope for the latter one in consideration for your future success.

As from January 1, 2015, there is a legal minimum wage of 8.50 euros per hour for the first time in the Federal Republic of Germany. Germany is now one of the 21 out of 28 member states of the European Union to have a cross-industry minimum wage.

About 3.7 million workers from the low income segment can now profit from it. Through the introduction of a minimum wage, employees with unreasonably low salaries are now protected. Thus it should contribute to a fair and functioning competition and reduce the number of workers who despite full employment are obliged to rely on social welfare.

Employers will have to respect the statutory minimum wage, valid from the beginning of 2015, or otherwise will face back pay and fines as high as 500.000 euros.

The minimum wage is applicable to all dependent employed workers working in Germany, including foreign employees and German or foreign companies. The minimum wage is also valid for season workers, minijobbers and pensioners.

There are inevitably a few exceptions. For example, the new law stipulates that children and adolescents without professional qualifications, trainees, volunteers and interns are not required to be paid the minimum wage.

The minimum wage is valid through all branches without exception. For branches with wages traditionally lower than 8.50 euros, there is a transition period of three years until December 31, 2017, which foresees a gradual adaptation to the minimum wage. Until then, lower wages are still allowed.

With the introduction of the law on minimum wage, employers have the obligation to record the working time of marginal and temporary employees as well as of the economic sectors employees, as called in paragraph 2a of the law against illegal employment. The same obligation applies to temporary employment agencies. The records of the beginning, end and duration of the daily working time must be kept during at least two years.

The law on minimum wage provides that employers who are based abroad but active in Germany in the branches described in paragraph 2a of the law against illegal employment have to submit a written statement in German on an official form to the competent authority of the customs administration prior to any work or service.

In the event of non-payment of the gross minimum wage to the employee from the employer or subcontractor, the law on minimum wage provides the liability of the German contractor for the net remuneration.

Controls on the compliance of the minimum wage provisions are carried out by the Financial Control of Undeclared Employment (FKS) of the Federal Customs Administration. In order to be able to control the compliance effectively, the FKS will soon create 1.600 new positions.

Article collaboration:
Wendler Tremml
Rechtsanwälte
RA Michael Wendler
www.entsenderecht.de

It has become obvious that with globalization running high, the masses are searching for differentiation, as with global trends everything appears to be done the same way everywhere. This is as true for the increasing trend for regional markets ignoring national boundaries as for the trend for individualism of consumption on a personal level.

For that reason let me tell you a story about something that happened to me during a business trip to Hong Kong some years ago, and which in my opinion properly illustrates my perception of GOING GLOCAL.

After quite a busy day we went with some business partners to have dinner at a local restaurant in Hong Kong. Once we had agreed on the menu, the waiter asked us what we would like to drink. The British partner asked straight away for a beer, so we asked what beers were on offer. The waiter replied Tsing Tao, Heineken, Carlsberg and Hong Kong beer, and proudly recommended the last one. Being curious and open to try something totally new we ordered Hong Kong Beer.

To our surprise the waiter came back with 4 bottles of San Miguel, which led to some laughter. The waiter didn´t share the joke and asked us what was so funny. We explained that he had brought us a Spanish beer instead of a Hong Kong beer, but his reaction was to get somewhat annoyed proclaiming that this was not a Spanish beer but a Hong KONG beer pointing furiously to the text “Hong Kong Beer” on the back of the bottle in small letters. Now this made me really curious and I asked the Spanish partner to comment on the taste of the beer. With a big smile, he added straight away the taste was nothing like San Miguel.

But apparently the different taste did not reduce the success of Hong Kong beer. On the contrary the adaptation to local taste helped quite a lot. One has to simply recognize and applaud the marketing strategy as they had understood what GOING GLOCAL meant: the building up of a global brand taking into account the local circumstances. To convince the Chinese that San Miguel is Hong Kong Beer deserves my highest respect.

When I talk about GOING GLOCAL I mean that in order to build up a global brand you need to consider at the same time the local conditions and settings. From this point of view export meant to me up until now the sale of goods or services over national boundaries, whereas GOING GLOCAL means sales to different local markets considering the local conditions.