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Doing Business and Promotion of
Business Development in Germany
Niedersachsen Delegation in PA | Peter Eisenschmidt
At the Heart of Europe

                                               •




Business Development in Germany | Sept 2011 | Page1
Do I need To Tell you About…Industries in Niedersachsen?
                                                                                                            •



• ICT
• Automobile
• Aerospace
• Mechanical engineering
• Food processing/Agriculture
• Biotechnology/Life sciences
• Energy technology
• Trade fairs
• Logistics
• Tourism




                                                             Business Development in Germany | Sept 2011 | Page2
Gate to the European Market
                                                                                          •




Hannover Region:

• City of Hannover and 20 surrounding cities and boroughs

• Surface: 2,290 km²

• Inhabitants: 1.12 million


Catchment Area:

• 56.8 mill. people in a radius of 300 km (Germany only)

• 129.2 mill. people in a radius of 500 km (Germany and
  neighbouring countries)




                                                            Business Development in Germany | Sept 2011 | Page3
Transportation infrastructure
                                                                                              •




The Role Of Hannover As a
                                                                                      1„5 hrs
  Transportation Hub

• Traditional role as an East-West trade hub with easy                                                 2„5 hrs

  access from all points within Europe

• Main crossroads of major German and European road,
  rail and water arteries
                                                              3 hrs
• Linking the north-south and west-east arteries of the
  German autobahn network

• International Airport to all major European destinations

• International Railway Hub, >110 high speed connections



                                                             Business Development in Germany | Sept 2011 | Page4
Infrastruktur
                                                                                                    •




International Railway Hub
110 fast train connections, 20 international connections




                           Hamburg 1„09
           Bremen 0„59

                                        Berlin 1„31
      Cologne 2„43

                                        Leipzig 2„45
         Frankfurt 2„06



                          Munich 4„34



                                                           Business Development in Germany | Sept 2011 | Page5
Transportation Infrastructure
                                                                                                •




International Airport Hannover
•   Operation hour 24/7 (night-flight traffic)

•   Direct access to numerous European destinations

•   3 modern terminals with a capacity of 10 mill.
    passengers

•   Direct S-bahn (train) access to Hannover Central Station

•   13,000 parking lots

•   Several low-cost-carrier

•   Air Cargo Center with an annual capacity of
    about 60,000 tons handling of cargo.




                                                               Business Development in Germany | Sept 2011 | Page6
International exhibition centre
                                                                                       •




The world’s largest exhibition facilities

• 1 million square meters; 27 halls

• 28,000 exhibitors and 2.5 million visitors p.a.

• hosting leading international fairs and associated
  congresses and venues of global reputation,
  such as CeBIT, Hannover Fair, IAA, Biotechnica ...




                                                       Business Development in Germany | Sept 2011 | Page7
Companies in the Hannover Region
                                                                 •




• Hannover‘s Economy

• Automotive / Engineering

• Financial Services / Insurance

• Logistics / Trade

• Other services

• and even more




                                     Business Development in Germany | Sept 2011 | Page8
Education
                                                                                                      •




Academic Institutions / Research Bodies
• Hannover University (focus: natural/technical sciences)

• Hannover Medical School (MHH)

• Veterinary School (TiHo)

• University of Applied Sciences and Arts

• Hannover College of Music and Drama

• GISMA Business School

• International School Hannover

• First class science and research institutes




                                                            Business Development in Germany | Sept 2011 | Page9
Developing Economic Relations
                                                                                                               •




Possibilities of An Economic Development Agency

    Global / Transnational Level : guidelines and treaties


              National level: laws and fundings


                     Federal State Level


        Municipal level: regulations and local needs

                  Economic Development
           Industry Level: business needs of SME



                                                               Business Development in Germany | Sept 2011 | Page10
First Steps in Germany
                                                                                                 •



Success Factors for International Expansion

• Market Knowledge – Prozess knowledge, communication expertise,
  Business Development Approach


• Market entry – vertical Know-How, customers, partners, sales channels


• Localized Marketing – Public Relations, PR work, collateral, localized
  information / translation, homepage, pricing etc.


• Internationalization – Strategy, lokalized knowledge, synergies in affinity of
  markets or market participants


• Market values – Behaviour in business, Mentality, Culture



                                                             Business Development in Germany | Sept 2011 | Page11
Understanding German (Business) Culture
                                                                                                                  •




The Land of the „Dichter und Denker“ (Poets and Thinkers)
• Value individual opinions (allowing everbody to communicate his opinion?)

• Speak out directly what we think (probably rude?)

• Therefore have rude and complex language (which still allows great literature?)

• Like to discuss issues until all opinions had been heard (long decision processes?)

• Going for the perfect solution (probably too bureaucratic?)




                                                                  Business Development in Germany | Sept 2011 | Page12
hannoverimpuls
                                                                                                               •




hannoverimpuls is ...

• the business development agency of the Hannover Region

• a joint venture of the City of Hannover and Hannover Region

• privately managed and controlled to guarantee flexibility, versatility and speedy responses

• a highly motivated and experienced team of business sponsors and experts

• working together with partners from business

• focusing on six industrial sectors with a high growth potential

• stimulating sustainable processes relating to business start-up, growth and co-operation and
  company location




                                                                         Business Development in Germany | Sept 2011 | Page13
The Instruments of hannoverimpuls
                                                                                             •
                                              Strengthen the Strengths, Minimize the Weaknesses




Pushing the change of the regional
industrial sectors, creating qualified
jobs and corporate/economical Value

The City and Region of Hannover are giving
priority support to the following six key
industrial sectors using the instruments of

• Mobilising and supporting start-ups

• Attracting and establishing companies

• Initiating corporate growth




                                                          Business Development in Germany | Sept 2011 | Page14
Services of hannoverimpuls
                                                                                                  •



Services offered by hannoverimpuls GmbH
                                             Market
                                    • Strategic marketing/
                                      Consulting
                                    • Marketing & Sales
                                      Outsourcing
             Finance                                           Administration
                                                             • Visas
     •   Hannoverimpuls funds                                • Office-/Laboratory space
     •   Access to EU funds             Your company
                                                             • Registrations/
     •   Financing by 3rd parties        in Germany?           authorizations
     •   Office-/Laboratory space                            • Human Resources


                                    • Networks
                                    • Partnerships with
                                      regional R&D


                                           Technology

                                                                   Business Development in Germany | Sept 2011 | Page15
Products to Support Business Expansion
                                                                                        •




Products to Support Business Expansion

• ProMAP – Product Market Analysis and Placement: Strategic Marketing, Workshop

• GeMS – German Marketing&Sales Solutions: M&S Outsourcing

• Plug&Work: Office-, Lab-, Production-Space, for free, for one year




                                                             Business Development in Germany | Sept 2011 | Page16
ProMAP
                                                                                                       •




ProMAP - Strategic Marketing to Prepare Business Expansion

 ●   Product Market Analysis and Placement

 ●   “Workshop”

 ●   3 Modules

       ●   1. Module: Market Analysis

       ●   2. Module: Product Analysis

       ●   3. Module: Workshop – defining a strategy for marketing based on mod 1 + 2




                                                             Business Development in Germany | Sept 2011 | Page17
GeMS
                                                                                                       •




GeMS – German Marketing&Sales Solutions
 ●   Marketing&Sales outsourcing
 ●   In cooperation with Inline Sales GmbH
 ●   Services
       ●   Market Studies
       ●   Key Account Management
       ●   Road Shows
       ●   Sales with own Sales Force
       ●   Telephone Marketing
 ●   Fee-for-Service
 ●   Special Conditions for Customers of hannoverimpuls




                                                          Business Development in Germany | Sept 2011 | Page18
GeMS - Benefits
                                                                                                                •



Benefits
 • Professional support
 • Access to partner networks
 • Industry knowledge
 • Calculable costs of the sales function
 • Increased flexibility
 • Improved customer service
 • Perfect entry into new markets
 • Increase number of sales people without increasing head-count
 • Reduced disruption of current processes
 • Reduced risk of investment
 • Fast implementation     (sometimes without need to get approval from different departments)

 • Support of under-performing internal sales units



                                                                           Business Development in Germany | Sept 2011 | Page19
hannoverimpuls
                                                                                       •



Plug & Work –
the start-up and expansion initiative


• Rent-free work and office space for one year

• Intensive networking

• Comprehensive starter package including

    • Strategic coaching

    • IT support and free software

    • Hannover Welcome Package

    • and many added extras




                                                 Business Development in Germany | Sept 2011 | Page20
Support after setting up a Business in Hannover
                                                                                                 •




                         Innovation+                         Promotion of
                         Funding of
                                                             Investments
Office in Hannover




                      consulting service




                                           Growth




                                                                                                       > SME
                      Marketing/Design                       Financing in
                         Consulting                         Start-up Phase



                       Seed Financing                        Credit / Loan
                                                              Guarantees


                     Framework Program 7


                                                                    Business Development in Germany | Sept 2011 | Page21
•




Business Development in Germany | Sept 2011 | Page22
Endfolie Variante 1
                                      •




Business Development in Germany | Sept 2011 | Page23

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Doing business in Hannover

  • 1. Doing Business and Promotion of Business Development in Germany Niedersachsen Delegation in PA | Peter Eisenschmidt
  • 2. At the Heart of Europe • Business Development in Germany | Sept 2011 | Page1
  • 3. Do I need To Tell you About…Industries in Niedersachsen? • • ICT • Automobile • Aerospace • Mechanical engineering • Food processing/Agriculture • Biotechnology/Life sciences • Energy technology • Trade fairs • Logistics • Tourism Business Development in Germany | Sept 2011 | Page2
  • 4. Gate to the European Market • Hannover Region: • City of Hannover and 20 surrounding cities and boroughs • Surface: 2,290 km² • Inhabitants: 1.12 million Catchment Area: • 56.8 mill. people in a radius of 300 km (Germany only) • 129.2 mill. people in a radius of 500 km (Germany and neighbouring countries) Business Development in Germany | Sept 2011 | Page3
  • 5. Transportation infrastructure • The Role Of Hannover As a 1„5 hrs Transportation Hub • Traditional role as an East-West trade hub with easy 2„5 hrs access from all points within Europe • Main crossroads of major German and European road, rail and water arteries 3 hrs • Linking the north-south and west-east arteries of the German autobahn network • International Airport to all major European destinations • International Railway Hub, >110 high speed connections Business Development in Germany | Sept 2011 | Page4
  • 6. Infrastruktur • International Railway Hub 110 fast train connections, 20 international connections Hamburg 1„09 Bremen 0„59 Berlin 1„31 Cologne 2„43 Leipzig 2„45 Frankfurt 2„06 Munich 4„34 Business Development in Germany | Sept 2011 | Page5
  • 7. Transportation Infrastructure • International Airport Hannover • Operation hour 24/7 (night-flight traffic) • Direct access to numerous European destinations • 3 modern terminals with a capacity of 10 mill. passengers • Direct S-bahn (train) access to Hannover Central Station • 13,000 parking lots • Several low-cost-carrier • Air Cargo Center with an annual capacity of about 60,000 tons handling of cargo. Business Development in Germany | Sept 2011 | Page6
  • 8. International exhibition centre • The world’s largest exhibition facilities • 1 million square meters; 27 halls • 28,000 exhibitors and 2.5 million visitors p.a. • hosting leading international fairs and associated congresses and venues of global reputation, such as CeBIT, Hannover Fair, IAA, Biotechnica ... Business Development in Germany | Sept 2011 | Page7
  • 9. Companies in the Hannover Region • • Hannover‘s Economy • Automotive / Engineering • Financial Services / Insurance • Logistics / Trade • Other services • and even more Business Development in Germany | Sept 2011 | Page8
  • 10. Education • Academic Institutions / Research Bodies • Hannover University (focus: natural/technical sciences) • Hannover Medical School (MHH) • Veterinary School (TiHo) • University of Applied Sciences and Arts • Hannover College of Music and Drama • GISMA Business School • International School Hannover • First class science and research institutes Business Development in Germany | Sept 2011 | Page9
  • 11. Developing Economic Relations • Possibilities of An Economic Development Agency Global / Transnational Level : guidelines and treaties National level: laws and fundings Federal State Level Municipal level: regulations and local needs Economic Development Industry Level: business needs of SME Business Development in Germany | Sept 2011 | Page10
  • 12. First Steps in Germany • Success Factors for International Expansion • Market Knowledge – Prozess knowledge, communication expertise, Business Development Approach • Market entry – vertical Know-How, customers, partners, sales channels • Localized Marketing – Public Relations, PR work, collateral, localized information / translation, homepage, pricing etc. • Internationalization – Strategy, lokalized knowledge, synergies in affinity of markets or market participants • Market values – Behaviour in business, Mentality, Culture Business Development in Germany | Sept 2011 | Page11
  • 13. Understanding German (Business) Culture • The Land of the „Dichter und Denker“ (Poets and Thinkers) • Value individual opinions (allowing everbody to communicate his opinion?) • Speak out directly what we think (probably rude?) • Therefore have rude and complex language (which still allows great literature?) • Like to discuss issues until all opinions had been heard (long decision processes?) • Going for the perfect solution (probably too bureaucratic?) Business Development in Germany | Sept 2011 | Page12
  • 14. hannoverimpuls • hannoverimpuls is ... • the business development agency of the Hannover Region • a joint venture of the City of Hannover and Hannover Region • privately managed and controlled to guarantee flexibility, versatility and speedy responses • a highly motivated and experienced team of business sponsors and experts • working together with partners from business • focusing on six industrial sectors with a high growth potential • stimulating sustainable processes relating to business start-up, growth and co-operation and company location Business Development in Germany | Sept 2011 | Page13
  • 15. The Instruments of hannoverimpuls • Strengthen the Strengths, Minimize the Weaknesses Pushing the change of the regional industrial sectors, creating qualified jobs and corporate/economical Value The City and Region of Hannover are giving priority support to the following six key industrial sectors using the instruments of • Mobilising and supporting start-ups • Attracting and establishing companies • Initiating corporate growth Business Development in Germany | Sept 2011 | Page14
  • 16. Services of hannoverimpuls • Services offered by hannoverimpuls GmbH Market • Strategic marketing/ Consulting • Marketing & Sales Outsourcing Finance Administration • Visas • Hannoverimpuls funds • Office-/Laboratory space • Access to EU funds Your company • Registrations/ • Financing by 3rd parties in Germany? authorizations • Office-/Laboratory space • Human Resources • Networks • Partnerships with regional R&D Technology Business Development in Germany | Sept 2011 | Page15
  • 17. Products to Support Business Expansion • Products to Support Business Expansion • ProMAP – Product Market Analysis and Placement: Strategic Marketing, Workshop • GeMS – German Marketing&Sales Solutions: M&S Outsourcing • Plug&Work: Office-, Lab-, Production-Space, for free, for one year Business Development in Germany | Sept 2011 | Page16
  • 18. ProMAP • ProMAP - Strategic Marketing to Prepare Business Expansion ● Product Market Analysis and Placement ● “Workshop” ● 3 Modules ● 1. Module: Market Analysis ● 2. Module: Product Analysis ● 3. Module: Workshop – defining a strategy for marketing based on mod 1 + 2 Business Development in Germany | Sept 2011 | Page17
  • 19. GeMS • GeMS – German Marketing&Sales Solutions ● Marketing&Sales outsourcing ● In cooperation with Inline Sales GmbH ● Services ● Market Studies ● Key Account Management ● Road Shows ● Sales with own Sales Force ● Telephone Marketing ● Fee-for-Service ● Special Conditions for Customers of hannoverimpuls Business Development in Germany | Sept 2011 | Page18
  • 20. GeMS - Benefits • Benefits • Professional support • Access to partner networks • Industry knowledge • Calculable costs of the sales function • Increased flexibility • Improved customer service • Perfect entry into new markets • Increase number of sales people without increasing head-count • Reduced disruption of current processes • Reduced risk of investment • Fast implementation (sometimes without need to get approval from different departments) • Support of under-performing internal sales units Business Development in Germany | Sept 2011 | Page19
  • 21. hannoverimpuls • Plug & Work – the start-up and expansion initiative • Rent-free work and office space for one year • Intensive networking • Comprehensive starter package including • Strategic coaching • IT support and free software • Hannover Welcome Package • and many added extras Business Development in Germany | Sept 2011 | Page20
  • 22. Support after setting up a Business in Hannover • Innovation+ Promotion of Funding of Investments Office in Hannover consulting service Growth > SME Marketing/Design Financing in Consulting Start-up Phase Seed Financing Credit / Loan Guarantees Framework Program 7 Business Development in Germany | Sept 2011 | Page21
  • 23. • Business Development in Germany | Sept 2011 | Page22
  • 24. Endfolie Variante 1 • Business Development in Germany | Sept 2011 | Page23