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THE INDIAN INSTITUTE OF PLANNING ANDMANAGEMENT GOTA REPORT ON GERMANY & DEUTSCHE
BANK DATE: 22.06.2009 to 03.07.2009 BY: FW/2008-10 (Sec-F1)
NAME ABHISEK PANDA ROLL.NO 01 MOBILE.NO +919711746572 E-mail ID abhisekpanda21@g
mail.com
FACULTIES: MS. AMANA GUPTA MR. ASHISH JAIN
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ACKNOWLEDGEMENT
I hereby take this opportunity to thank The Indian Institute of Planning and Man
agement, New Delhi, for providing me an opportunity to undertake this program ca
lled “GOTA”. I would like to thank our tour guide Mr. Ashish Jain & Ms. Amna Gupta w
ho gave me the first move towards this programme by teaching & introducing me to
others. It was his knowledge that I was inspired upon to look forward to this p
roject from early days. I would also like to thank, Dr. Robin Bartels, (Deutsche
Bank) my corporate guide, for his presentation and constructive criticism; with
out whom the project was not at all possible. I am indebted to all the companies
& their representatives, my faculties and elders who have facilitated my work a
nd helped me in making this project. Last but not the least, I would like to tha
nk my parents, family members, dear ones and my friends, without whose support t
his program & project would have been a dream.
Abhisek Panda
MBA/2008-10/FW
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CONTENT SERIAL.NO
01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12.
PARTICULARS
ACKNOWLEDGEMENT ABOUT DEUTSCHE BANK CORPORATE GOVERNANCE SHARE HOLDERS CLIENTS S
TAFFS DB IN INDIA SOME DATES, FACTS & FIGURES ABOUT DB WHAT WE LEARN FROM GOTA T
OURE PEST ANALYSIS OF GERMANY SWOT ANALYSIS OF DEUTSCHE BANK CONCLUSION
PAGE.NO
2 4 6 7 9 10 13 15 16 19 32 35
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ABOUT DEUTSCHE BANK
Deutsche Bank is a leading global investment bank with a strong and profitable p
rivate client’s franchise. Its businesses are mutually reinforcing. A leader in Ge
rmany & Europe, the bank is continuously growing in North America, Asia and key
emerging markets. The bank competes to be the leading global provider of financi
al solutions for demanding clients creating exceptional value for its shareholde
rs and people. Despite turbulence on the financial markets, Deutsche Bank mainta
ined its capital strength. This gives the bank affirm foundation from which to f
ocus on its responsibilities. Responsibilities to its clients who continue to lo
ok to the bank as a dependable business partner & responsibilities to its shareh
olders & staff, to whom the bank offers a fair perspective, and to whom it seeks
to remain attractive in future. Finally, responsibilities to the financial syst
em of which the bank is a part and which now needs to be rigorously analyzed and
re-engineered.
GROUP DIVISIONS Deutsche Bank is organized into the group divisions Corporate an
d Investment Bank (CIB), Private Clients and Asset Management (PCAM) and Corpora
te Investments (CI). Its core business is elaborated as follows:Private and Busi
ness clients provides individuals and small to medium-sized businesses with a fu
ll range of traditional banking products, including current accounts, deposits a
nd loans, investment management products and business banking services. Outside
Germany, private & business clients has for some years operated in Italy, Spain,
Belgium, and Portugal, and more recently in Poland. The business is also making
focused investments in fast growing Asian markets, for example in India and Chi
na. Private Wealth Management serves high net worth individuals, families and se
lects institutions worldwide. The bank offers these very discerning clients an e
xcellent, custom-tailored advice on matters such as inheritance and estate plann
ing, art and philanthropy, and provides solutions for family offices and financi
al intermediaries. Strategic asset allocation is always at the center of the ser
vice. Asset Management comprises four businesses: the retail mutual funds busine
ss (DWS Investments), alternatives (RREEF Alternative Investments), Institutiona
l Asset Management (DB Advisors) and Asset Management for Insurance companies (D
eutsche Insurance Asset Management).
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Global Markets undertakes trading and product structuring across a wide range of
financial products, including bonds, Equities and equity linked products, excha
nge traded and over the counter derivatives, foreign exchange, money market inst
ruments, securitized instruments and commodities. The origination, underwriting
and syndication of debt and equity securities are managed jointly by global mark
et and corporate finance. Global banking comprises Corporate Finance and Global
Transaction Banking. Corporate finance is comprised of M&A Advisory, Equity Capi
tal Markets, Leveraged Debt Capital Markets, Commercial Real Estate, Asset Finan
ce & Leasing and Corporate lending services. Global Transaction Banking delivers
commercial banking products and services for corporate clients & financial inst
itutions. Business units include Cash Management, Trade Finance and Trust & Secu
rity Services.
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CORPORATE GOVERNANCE:
Effective corporate governance is an important part of Deutsche Bank’s identity. T
he bank ensures the responsible, value-driven management and control through the
system of corporate governance, which has four key elements: good relation with
shareholders; effective cooperation between the management board and supervisor
y board; a system of performance-related compensation; and transparent, timely r
eporting. The essential framework for this is provided first by the German Corpo
rate Governance Code, which was last amended in June 2008. Since the bank’s shares
are listed on, the New York Stock Exchange, Deutsche Bank is also subject to th
e relevant U.S capital market legislation as well as the rules of the Securities
and Exchange Commission (SEC) and New York Stock Exchange (NYSE). The bank cont
inuously reviews its corporate governance in light of new events, statutory requ
irements and developments in domestic and international standards, and makes the
appropriate adjustments. Shareholders are involved in decision that are of mate
rial importance to the bank, as is legally required, including amendment to the
Articles of Association, the appropriation of profit, the authorization to issue
new shares and important structural changes. To make it easier for shareholders
to exercise their voting rights, the bank supports the use of electronic media
for the Annual General Meeting (AGM). For example, shareholders can order admiss
ion tickets or can issue authorizations and their voting instructions to Deutsch
e Bank proxies via the internet. Shareholders and the public are regularly kept
up to date, above all, through the annual report, including consolidated financi
al statements, and the interim reports. Deutsche Bank Group’s reporting is in acco
rdance with International Financial Reporting Standards (IFRS). This provides fo
r a high degree of transparency and facilitates comparability with international
peers.
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SHARE HOLDERS:
One of Deutsche Bank’s tasks on behalf of its owners is to address the negative de
velopment of its share price. The bank identifies the root causes of any losses
and takes corrective measures. The main objective is to have strong capital reso
urces as well as to safe guard sources of revenue of future. The number of share
holders rose strongly during 2008, and by the end of the year the bank had rough
ly 5, 80,000 shareholders. At the end of the year, institutional investors (incl
uding banks) held 71% of the share capital, 29% of the shares were held by the p
rivate investors. Increased interest in the bank’s share on the part of private in
vestors was also reflected by the higher percentage of shares held in Germany of
nearly 55%. Deutsche Bank informs its shareholders and analysts regularly about
the development of its business and strategy primarily through a toll-free shar
eholder hotline and the internet. Anyone who is interested can obtain comprehens
ive information about the company from the website. Additional information is av
ailable in analyst meetings and regular conference cell, live broadcasts through
the internet and the bank’s internet mailing list. The volume of trading in Deuts
che Bank’s shares fell by around € 50 billion to € 277 billion in 2008, the second hig
hest among all shares in the DAX. Due to much lower year-end closing price than
in 2007, the market capitalization declined to € 15.9 billion (2007: € 47.4 billion)
. At the end of 2008, Deutsche bank’s share accounted for a 3.6% weightin in the D
AX. Although the Duetsche Bank share price held up well compared to that of othe
r International peers, it’s weak performance during 2008 significantly impaired th
e return on investment, also from a long term perspective. An investor who bough
t Deutsche Bank shares for the equivalent of € 10,000 at the begning of 1980, rein
vested dividends and subscribed to capital increases without injecting additiona
l funds would have held a portfolio worth € 50,533 at the end of 2008. This corres
ponds to an average return of 5.7%.
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USEFUL INFORMATION ON DEUTSCHE BANK: 2008 Change in total return Shares in equit
ies trading (Extra & Frankfurt Floor Trading) Average daily trading volume Share
price high Share price low Dividend per share (proposed for 2008) As of Decembe
r 31, 2008 Issued Shares Outstanding shares Share capital Market capitalization
Share price Weighting in the DAX Weighting in the Dow Jones STOXX 50 Securities
identification codes DEUTSCHE BORES TYPE OF ISSUE Symbol WKN ISIN Returns REGIST
ERED SHARE DBK 514 000 DE0005140008 DBKGn.DE (66.8)% 5.6% 9.1 million shares € 89.
90 € 18.59 €0.50 570,859,015 562,666,955 € 1,461,399,078.40 € 15.89 billion € 27.83 3.6% 0
.82% NEW YOURK STOCK EXCHANGE TYPE OF ISSUE REGISTERED SHARE Currency US-$ Symbo
l DB CINS D 18190898 Bloomberg DBK GR
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CLIENTS
In different economic conditions, a reliable and competent partner is currently
important for customers. This is what Deutsche Bank aspires to be, with its well
-diversified business model and its performance culture. With innovative solutio
ns, the bank helps its clients to achieve lasting success. In conditions of cris
is, in which predicting the future is particularly prone to error, the bank deve
lops robust ideas aimed at safeguarding its clients’ future. In this respect, Deut
sche Bank’s attention is devoted both to its private customers & to its corporate
and institutional clients. Deutsche Bank offers its clients a broad range of fir
st-class banking services. It provides private clients as well as small to mediu
m-sized businesses with an all-round service extending from account keeping and
cash and securities investment advisory to asset management. In addition, the ba
nk has a leading position in international foreign exchange, fixed-income and eq
uities trading. Number of clients (rounded) STRUCTRAL DATA Corporate & Investmen
t bank Private clients and asset management Asset & wealth management -Retail As
set management (Germany) Institutional asset Management Private Wealth Managemen
t 2008 53, 100 14,600,000 3,410,000 2007 56,900 13,800,000 2,926,000 2006 54,200
14,100,000 2,530,000
2,300 92,000
2,400 92,000
2,300 90,000
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STAFF:
With roughly 80,000 staff from 145 nations and approximately 2,000 branches, Deu
tsche Bank offers in 72 countries a wide variety of investment, financial & rela
ted products & institutional clients around the world. REGIONAL DEPLOYMENT OF ST
AFF Total staff: 80,456*(as of Dec 31, 2008)
Percantage
AMERICA 15%
GERMANY 35%
ASIA/PASIFIC 21%
EUROPE(EXCLUDING GERMANY),MIDDLE EAST & AFRICA 29%
Deutsche Bank’s competence depends on the ability and commitment of its staff. The
Bank invests much in their professional & personal training and in positive wor
king environment. In addition to performance-based compensation, the Bank offers
its staff members
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Worldwide a broad range of benefits. Particular attention is paid to maintaining
and promoting health, including illness prevention. In addition, staff developm
ent with a group-wide training program forms an essential part of Deutsche Bank’s
Human Resources activities. At Deutsche Bank, promoting diversity is an essentia
l part of its corporate culture. The bank focuses on performance, regardless of
nationality, religion, skin colour or ethnic background. The bank firmly believe
s that in the end, a company like Deutsche Bank can continue to hold its ground
in international competition only with a cultural diverse workforce working clos
ely together across geographical borders.
SOCIETY
Deutsche Bank views ―Corporate Social Responsibility as an investment in society &
in its own future . The underlying principles of its CSR program is ―More than mone
y: Building social capital . The bank leverages its core competencies in five area
s of activity: Sustainability: An integral part of all Deutsche Bank activities –
in the core business and beyond – is being responsible to the shareholders, client
s, employees, society and the environment. Corporate Volunteering: A growing num
ber of employees are committed to civic leadership and responsibility – with the s
upport and encouragement of Deutsche Bank. In 2008, employees around the world c
ompleted a total of 35,738 days of volunteer work in various projects, 84% more
than in 2007. Social Investments: The bank creates opportunities for people and
communities and helps them overcome unemployment and poverty and shape their own
future. Art: Deutsche bank believes that creativity and inspiration open minds
to innovative solutions. That is why the bank supports art and young aspiring ar
tists. Education: The bank enables talent across all disciplines as one of the m
ost important sources of growth and progress. Investments by area of activity (2
008 total of € 82.3 millions)
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PERCENTAGE IN DIFFERENT SECTORS
Corporate Volunteering 8%
Art 24%
Social investments 37%
Education 31%
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DEUTSCHE BANK IN INDIA
Deutsche Bank started operations in India in 1980. Today, Deutsche Bank is one o
f India’s most respected financial services providers, widely regarded for its dee
p commitment to the Indian market, strong client Relationships, sophisticated pr
oduct technology and global connectivity, and built with strong corporate govern
ance standards. In December2008, the Bank increased its Tier 1 capital in India
by Rs. 325 crore to fund the Bank’s growth. The capital infusion takes Deutsche Ba
nk Group’s total capital in India to over Rs. 6000 crore, making it among the most
highly capitalized foreign banks in India. With over 7,800 employees in India,
Deutsche Bank operates branches in Mumbai, New Delhi, Bangalore, Chennai, Kolkat
a, Gurgaon, Noida, Aurangabad Kolhapur, Pune, Salem and Vellore. India is amongs
t the largest franchises of Deutsche Bank’s presence in 17 markets in Asia- Pacifi
c.
Integrated financial services provider in India:
Deutsche Bank has successfully launched several new businesses in India - reflec
ting its desire to engage with a larger population of clients across the country
. Building on its dominant global markets - debt and derivatives - and leading t
ransaction banking cash management, trade finance and custody - franchises, Deut
sche Bank has gained significant market share in on-shore investment banking. In
stitutional equities broking, asset and private wealth management, retail bankin
g & credit cards (with over 520,000 clients) and business processes outsourcing,
thus making Deutsche Bank a fully integrated financial services provider to Ind
ian financial services provider to Indian clients. In 2008, Deutsche Bank was th
e No.1 Equity Capital Markets and G3 Debt Capital Markets book runner as well as
No.3 announced M&A advisor in India(source: Dealogic).
A responsible corporate citizen:
Deutsche Bank is deeply involved with the welfare of the communities it operates
in. Focused on empowering the underprivileged sections of society through educa
tion, Deutsche Bank has evolved a robust program to support leading non-governme
nt organizations (NGOs) like Pratham India, Sujaya Foundation, VIDYA, Swashrit,
SUPPORT as well as Swashrit, SUPPORT as well as Swashrit, SUPPORT as well as Fou
ndation. To this end, the Bank also lent support to Habitat for Humanity(an NGO
that builds and finances houses for the poor) by helping build three houses for
villagers of Khandan, Karjat – a suburb outside Mumbai. Deutsche Bank was also inv
olved in a heritage conservation project that includes the restoration maintenan
ce of two Grade II heritages buildings in Mumbai, and has espoused the cause of
environment conservation through support to non- governmental efforts. Deutsche
Bank has also repeatedly stepped forward to aid disaster relief initiatives, bei
ng among the first entities to contribute to the Bihar flood relief in 2008 and
the Prime Minister Relief Fund for tsunami victims. As a strong advocate of corp
orate and regulatory governance standards, Deutsche Bank is regularly invited to
contribute to the development thought in banking and finance in the country thr
ough participation in high-level committees of regulators – the RBI and SEBI - and
leading industry associations.
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Recognition:
Deutsche Bank’s consistent performance and business focus has resulted in it recei
ving several awards including: Best Bank and Best Equity House by ―The Asset Tripl
e A 2008 Country Awards. Best Cash Management Bank in South Asia and ―Best Sub Custo
dian India by ―The Asset Triple A Transaction Banking Awards 2009. ―Best Investment B
ank in India 2007 and ―Best Debt House in India 2007 by Euro money. ―Best Private Bank
in India 2009, 2008 and 2007 in the Asia money Private Banking Polls. ―Best Cash M
anagement Bank in South Asia 2007 and ―Best Sub Custodian India 2007 by ―The Asset Tri
ple A Transaction Banking Awards. Best Bank Award for Growth by the Financial Exp
ress. Recent investment banking transaction highlights include: EUR 583 million
sales of secondary shares of DLF Limited(May 2009). Sole manager for the reverse
book-building process for the delisting of Tudor India Ltd(February 2009). Sole
sellside advisor on a USD900 million stake acquisition of Swan Telecom by Etisa
lat, which was awarded the Best India Deal in 2008 by Finance Asia(September 200
8). A USD 1.25 billion dual-tranche global bond for Vedanta Resources, which was
named the Best High Yield Bond in 2008 by Finance Asia (June 2008). A USD 4.3 b
illion rights issue for the State Bank of India in what was India’s largest-ever r
ights issue at the time and the first deal to pass through the Securities and Ex
change Board of India’s fast-track process, which allows companies listed on India’s
two main exchanges to raise equity capital quickly and efficiently. (February 2
008) A USD2 billion bond for ICICI bank which was the largest ever deal from Ind
ia at the time and the largest 5-year USD fixed rate deal out of Asia. Deutsche
Bank was the joint lead manager to the issue. (September 2007) The GBP6.2 billio
n acquisition of Corus Group by ―Tata Steel which at the time created the fifth lar
gest steel producer in the world. Deutsche Bank acted as financial advisor and c
orporate broker to Tata Steel(January 2007).
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Some Dates, Facts & Figures about DB:
1870 Deutsche Bank is founded in Berlin & its purpose: ―to transact banking busine
ss of all kinds, in particular to promote & facilitate trade relations between G
ermany, European countries & overseas markets . First branches in Bremen & Hamburg
, followed by more branches in, e.g. Frankfurt am Main, Munich, Leipzig & Dresde
n. Opening of the first European Foreign branch in London. Deutsche brings to su
pply industry with loans and capital market products. Foreign investment in Nort
h and South America, Eastern Asia, and Turkey. Because of the acquisition of sev
eral regional banks, Deutsche Bank establishes a branch network all over Germany
. The biggest ever merger in German banking history by creating the ―Deutsche Bank
und Disconto-Gesellschaft . Jewish employees are forced to resign. The company na
me is changed back to ―Deutsche Bank . Deutsche Bank is involved in ―Aryanisations . Clo
sure of Deutsche Bank’s Berlin Head Office and of all branches in the Sovietoccupi
ed zone. In the western zone of occupation, Deutsche Bank was decentralized into
ten regional institutions. The so-called Big Banks Act allows the amalgamation
of the ten successor institutions into three joint stock companies: ―Norddeutsche
Bank AG , ―Rheinisch-Westfalische Bank AG & ―Suddeutsche Bank AG . Re-amalgamation of the
three successor banks to form Deutsche Bank AG, a joint stock corporation with
its registered office in Frankfurt am Main. Deutsche Bank enters retail banking
by introducing small personal loans. Foundation of today’s Deutsche Bank Luxembour
g S.A.; in the next ten years, the bank pushes ahead with the internationalizati
on of its business. Acquisition of Morgan Grenfell Group; with this step, Deutsc
he Bank strengthens its position in the international securities business & expa
nds its presence on the important London capital market. Acquisition & integrati
on of Bankers Trust in the U.S.A., Deutsche Bank starts expansion in Middle East
and opens a branch in Abu Dhabi (UAE). Complete acquisition of the Russian inve
stment bank, ―United Financial Group (UFG) and acquisition of the German norisbank.
Deutsche Bank closes the acquisition of Berliner Bank.
1871/72 1873 From 1880 From 1914 1929 From 1933 1937 1938 1945 1947/48 1952
1957 1959 1970 1989
1999
2006 2007
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WHAT WE LEARN FROM THE GOTA TOURE ?
During the ―GOTA trip, especially in Munich we came to know & experience things tho
se are a lot more new. In Deutsche Bank, Dr. Robin Bartels gave a clear-cut idea
about the bank. In ―Ministry of Economic Affairs , we learn economic policies in th
e state of Bavaria, in terms of crisis. Their regional policies & land use plann
ing and energy policy. Mr. Shri. Anup K. Mudgal(Consul General of India) & Mr. M
anish Pandey(TCS), told us – what is the current position of India and about selli
ng in German market. Now I can make a SWOT analysis of India.
SWOT MATRIX of INDIA: Analysis of Indian SocialEconomic- Political- Technologica
l conditions.
By, Abhisek Panda There are few questions about our complex & unique system of I
ndia. How we can change our system thinking? How we can make a synergetic triang
le: Industry-GOI- Institution for co creation of knowledgeable resources for evo
lution of innovations. Root Causes – Why Plans are not execute at the bottom. Cons
trains - Where are missing link? Strategy & tactics - What is the action plans?
Methods-how these actions plans execute for achieving the end Goal.
SW0T ANALYSIS:
INDUSTRY-GOVERNMENT –INSTITUTION STRENGTHS

Highly educated , skilled ,young, capable & dynamic human resources English spea
king & analytical students World class business-social-spiritual –political leader
, Professor, scientist, ManagerDoctor-Engineer-Civil servants etc Very rich in N
atural & Living resources Biodiversity & Traditional knowledge base Diversity vs
. Ideas-Innovation-Integration Powerful spiritual strength (yoga-Ayurvada-Healin
g-therapy services) Geographical location (whole markets are shifting toward Asi
an nations) India Strategic position at various platforms Big democracy, Big mar
ket & free media
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Range of emerging professional champions IT & Software superpower

WEAKNESSES

Lack of trained & skill work force Small supply of specialize professional Lack
of spirits of entrepreneurship, patriotisms and leadership skill Lack of effecti
ve & execution framework Lack of Indian management models Lack of transparency-T
rust-Responsibility Lack of learning habits & Team work spirit Fear of sharing k
nowledge & taking risk Thinking win-lose lose-win look-outside Slow absorption o
f Innovation & change Lack of Indian management models Absence of greater techno
logy impetus Unawareness: Quality-Standardization Lack of Emotional-Spiritual de
velopment Rush of getting high marks not Development Blindly respect anything ta
ught by elders
OPPORTUNITIES

Big potential market in education Sector & emerging new market Segment in servic
es (create it) General Agreement of trade on Services Research & Development cap
ability Generate intellectual property Resource Building capacity Competition- c
ost – Quality service Collaboration : win-win thinking Hybrid solution–balancing & b
lending Tourism, health sector, food processing Rural economy development & soci
al transformation ( PURA model ) Need modernization of infrastructure , Library
and laboratory Internet institute network & e-Library Councilors and student adv
isors
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THREATS (Internal & external):

A feeling of unstable government Self centered political leadership Slow & Dysfu
nctional judiciary and corrupt law enforcers Regulation, protection and restrict
ion Mechanistic -stable-Layered-complex system Corruption, Ignorance & Complacen
cy High competitive & marketing forces To patent Indian intellectual property by
outsider (unawareness about own research) Fast change Internet-information tech
nology& new Inventions-Technology-Innovations Diversity vs. Imbalance- clashes R
egional-Religion-caste-culture conflicts Migration of all branch to software job
Job seeking mind sets, not job creator Unnecessary social pressure on students
Excessive rich & powerful mindsets
Key: India has lots of weakness but this is a space of thinking (new Ideas or ne
w perceptions), understand it as a space of opportunities and transform into str
ength. -------------------------------------------------------------------------
--------------------------------------------
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PEST ANALYSIS OF GERMANY
POLITICAL ENVIRONMENT: Profile of Germany Name: Federal Republic of Germany Capi
tal: Berlin Government

Head of State: Federal President - Horst Köhler Head of Government: Chancellor Ang
ela Merkel Governing parties: Christian Democratic Party/ Christian Social Union
, Social Democratic Party Opposition: Alliance 90/ The Greens, Free Democratic P
arty, Party of Democratic Socialism
Population: 82.4 million (2007) Ethnic groups: About 8.8% of the population is o
f foreign origin. The largest groups are from
Turkey (2.4%) Others(Serbo-Croatian, Italian, Russian) (6.1%)
Religion: Protestant (34%), Roman Catholic (34%), Muslim (3.7%), unaffiliated or
other (28.3%) Language: German; English is widely spoken throughout the profess
ional population.
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Geography :
Area: 137,926 sq. miles (357,092 sq.km)
Neighbors: Denmark to the North; Netherlands, Belgium, Luxembourg and France to
the West; Switzerland and Austria to the South; Czech Republic and Poland to the
East.
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States & Population (year 2009, in million.) Baden-Wuerttemberg: 10.74 Hesse: 6.
08 Bavaria: 12.49 Lower Saxony: 7.98 Berlin: 3.40
Brandenburg: 2.55 Bremen: 0.66 Hamburg: 1.75 Major Cities And Population (2008)
Berlin: 3,388,477 Stuttgart: 591,114 Hamburg:1,754,317 Essen: 589,499 Munich: 1,
338,955 Dortmund: 585,000 Cologne: 1,024,346 Düsseldorf: 577,505 Frankfurt: 662,35
9 Bremen: 547,765
Saxony: 4.25 Saxony-Anhalt: 2.44 Mecklenburg-West Pomerania: Schleswig1.69 Holst
ein: 2.83 North Rhine-Westphalia: 18.03 Thuringia: 2.31 Rhineland-Palatinate: 4.
05 Saarland: 1.04 Hannover: 507,524 Leipzig: 507,095 Dresden: 506,337 Nürnberg: 50
2,324 Duisburg: 501,564
German Business Practices
Business Hours

normal working hours: 09.00am - 05.00pm retail opening hours: German states have
different regulations. Opening hours vary. 24h shopping on Sundays is only avai
lable at certain gas stations and at other sites related to travel.
Labor
Wages and Productivity When compared internationally, wages in Germany are among
the highest in the European Union and worldwide. Average industry wages in 2005
were 27.9 EUR (Western Germany) respectively 17.4 EUR (Eastern Germany) per hou
r. Nonetheless, German labor is known to be productive and skilled. German quali
ty is famous throughout the world.
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Labor Law Unions are powerful and large in Germany. Workers are protected by str
ong labor laws that provide them many different rights. They are much more subst
antial than in the U.S. Here are some examples: Ordinary dismissal of workers mu
st be proceeded by notice, which depends on the duration of the time the employe
e was with the company. It may vary from 1-7 months. The employee may also chall
enge the dismissal in court. The Mother Protection Law grants a mother a total o
f 36 months leave. 6 weeks prior to birth and 8 weeks thereafter are on paid lea
ve. The mother and the employer can agree on a parental leave (max. 36 months),
after which the employer provides her with the same job prior to the birth of th
e child. Social Security and Health Care cost are equally split up between the e
mployee and the employer. Average working hours are 37.5 hours/week and annual l
eave varies between 20 and 30 working days.
ECONOMICAL ENVIRONMENT ECONOMY CURRENCY: The euro (1 EUR = 100 cents) is the leg
al tender for 321 million people in 15 European countries: Austria, Belgium, Cyp
rus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Portug
al, Slovenia, Spain and The Netherlands.
Exchange rates 1 EUR = 1 USD = 0.70 EUR (August 2009) 1.44 USD (August 2009)
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Tax Value added tax (VAT): 19% value added tax for food: 7% corporate income tax
on distributed and undistributed income: 25%
Economic Data
Year 2002 2003 2004 2005 2006 2007 Average Unemployment rate Annual Inflation ra
te 9.8% 10.5% 10.6% 11.7% 10.8% 9.2% 1.4% 1.0% 1.7% 1.5% 1.6% 2.3% 2.9%
2008 (March) 8.0%
Note: The unemployment rates of East and West Germany differ. Please check the G
erman Department of Labor for detailed information.
Source of unemployment and inflation rates: German Central Bank
Year 2002 2003 2004 2005 2006 2007
Source:
GDP (billion EUR) 2143 2164 2211 2245 2322 2424
German Central Bank
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U.S. Exports and Imports to Germany
After Canada, Mexico, China and Japan, Germany is the fifth largest trading part
ner of the U.S. 2000-2007 Note: all figures in millions of U.S. Dollars Year 200
0 2001 2002 2003 2004 2005 2006 2007 Exports to Germany Imports from Germany Bal
ance 29,448.4 29,995.4 26,629.6 28,831.9 31,415.9 34,183.7 41,319.1 49,652.0 58,
512.9 59,076.6 62,505.7 68,112.7 77,265.6 84,750.9 89,082.0 94,364.5 -29,064.5 -
29,081.2 -35,876.1 -39,280.8 -45,849.7 -50,567.2 -47,763.0 -44,712.5
Source: U.S. Census Bureau
Main Exports and Imports by Commodity with Germany* Note: all figures in thousan
ds of U.S. Dollars Commodities Food and live animals Beverages and Tobacco Crude
materials, inedible, except fuels Mineral fuels, lubricants and related materia
ls Animal and vegetable oils, fats and waxes Chemicals and related products, n.e
.s. Manufactured goods classified chiefly by material Machinery and transport eq
uipment
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Exports 848,758 337,741 1,858,159 235,539 17,576 8,563,947 3,334,843
Imports 712,311 567,341 972,129 2,249,581 13,650 15,786,658 9,596,921
26,739,400 54,071,216
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Miscellaneous manufactured articles
6,046,398
8,695,756 3,974,233
Commodities and transactions not classified elsewhere in the 1,669,645 SITC Tota
l
49,652,006 96,639,795
*Information for the year 2007. (Import Information represents C.I.F value)
Source: U.S. Census Bureau
Business Infrastructure
Direct Flights to Germany
New York JFK, New York-Newark Berlin Düsseldorf Atlanta, Chicago, Detroit, Fort My
ers, Los Angeles, Miami, New York JFK, New YorkNewark Frankfurt Anchorage, Atlan
ta, Boston, Charlotte, Chicago, Cincinnati, Dallas, Denver, Detroit, Fairbanks,
Houston, Las Vegas, Los Angeles, Miami, New York JFK, New York-Newark, Orlando,
Philadelphia, Portland, San Francisco, Seattle, Washington Hamburg New York JFK,
New York-Newark Atlanta, Boston, Charlotte, Chicago, Denver, Fort Myers, Los An
geles, New York JFK, München New York-Newark, Philadelphia, San Francisco, Washing
ton Atlanta Stuttgart
Sea- and Inland Ports
Bremen Duisburg Kiel Sassnitz Bremerhaven Emden Lübeck Stralsund Cologne Flensburg
Nordenham Wilhelmshaven Cuxhaven Hamburg Rostock Wismar
German Stock Exchanges

Frankfurt Deutsche Börse1 Hamburg & Hannover BOAG Börse2 Berlin Börse Berlin3 Düsseldorf
Börse Düsseldorf4 Munich Börse München5 Stuttgart Börse Stuttgart6 Hamburg Hamburger Börse
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Links
1. 2. 3. 4. 5. 6. 7. http://deutsche-boerse.com/dbag/dispatch/de/kir/gdb_navigat
ion/home http://www.boersenag.de/ http://www.berlin-boerse.de/ http://www.boerse
-duesseldorf.de/ http://www.boerse-muenchen.de/ http://www.boerse-stuttgart.de/
http://www.hamburger-boerse.de/
SOCIAL ENVIRONMENT Social system Social security Germany has an elaborate networ
k of social security systems (pension, health, healthcare and unemployment insur
ance), financed in equal measure by employees and employers alike
Health Almost all Germany’s inhabitants have health insurance (88% on statutory an
d just fewer than 12 % in private insurance schemes). Given total outlays on hea
lth of 10.7% of GDP, Germany is well above the OECD average of 9.0% German socie
ty is a modern, open-minded society: Most people – both young and old – are welleduc
ated and enjoy a high Standard of living, as well as sufficient freedom to be ab
le to plan their lives as they themselves see fit. The nucleus of their lives is
the family, which is constantly adopting new forms. Yet society is faced with t
he challenge of solving important problems such as population trends – the ageing
of society as well as immigration, which is increasingly varied in terms of ethn
ic culture. In addition, there is one thing the Germans still have to overcome:
the effects of the 45 years during which the country was divided. Since politica
l reunification in 1990, much has happened, and yet restoring the social unity o
f Germany will remain an important issue for the near future.
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With reunification, Germany became the country with by far the largest populatio
n in the European Union. Around 82 million people live on German territory, almo
st one fifth of them in what was formerly East Germany. Three trends are charact
eristic of demographic developments in Germany: a low birth rate, increasing lif
e expectancy and an ageing society.
For 30 years now, Germany has been witnessing few births: With slight fluctuatio
ns, since 1975 the number of newborn infants has been approximately 1.3 children
per woman. This means that for 30 years the generation of children has been sma
ller than that of their parents. High rates of immigration to Germany from other
societies prevented the overall population from shrinking accordingly. At the s
ame time, life expectancy has risen continuously, and is now 77 years for men an
d 82 years for women.
The rise in Life expectancy and, to an even greater extent, the low birth rates
are the reason for the third trend: The ratio of young people in the overall pop
ulation is decreasing, that of elderly people rising: In the early 1990s there w
ere almost three people of an employable age for every person over the age of 60
. In the early 21st century, the ratio was only 1 to 2.2 and calculations indica
te that within the next decade the ratio will already be less than 1 to 2. The a
geing of society is one of the greatest challenges facing welfare and family pol
icy. For this reason the pension insurance scheme has been undergoing re-structu
red for some time now: The traditional cross-generational contract― (Cross-generati
onal contract) is becoming less and less affordable, such that private individua
ls are supplementing it by making their own provisions for old age. In addition,
family-related measures to increase the number of children are also being imple
mented. In Germany, as in other modern societies, there has been tremendous prog
ress with regard to the Equal rights for women stipulated in the Basic Law. As s
uch, with regard to education girls have not only drawn level with, but have ind
eed now overtaken boys. At grammar schools they account for 56 percent of gradua
tes; the share of young women embarking on degree courses at university totals a
lmost 54 percent. Of the apprentices who passed their final examination in 2006,
43 percent were young women. In addition, more and more women are embarking on
careers. In addition, the alimony laws in the case of divorce in force from 2008
make it all the more important for women to be employed. Nowadays 67 percent of
women in Western
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Germany and 73 percent in Eastern Germany work. Whereas as a rule men are in ful
l-time employment women, especially those with small children, work part time.
With regard to wages and salaries there continue to be differences between the s
exes: Female workers, for example, earn just 74 percent of their male counterpar
ts’ pay, and salaried staff a mere 71 percent. For the most part this is because w
omen frequently work in lower positions. Even though nowadays they are frequentl
y getting to occupy Top jobs on the career ladder, in doing so they still encoun
ter considerable hurdles. As an example, almost 50 percent of students are women
but only a third, research assistants, and just 15 percent professors with tenu
re.
One of the main obstacles to climbing the career ladder is the fact that the net
work of childcare facilities particularly for small infants is not so good on a
European comparison, not to forget that relatively little has changed with regar
d to the division of domestic labor between men and women. In 75 to 90 percent o
f all families, it is women who do the core of traditional housework. In additio
n, although 80 percent of fathers would like to spend more time with their child
ren, women, even those in employment, invest twice as much time looking after ch
ildren as men. To date it was almost exclusively women who have taken parental l
eave. Yet in the first nine months after introduction of parental support, the p
roportion of fathers who have taken leave to concentrate on childcare has almost
trebled to 9.6 percent, whereby half of the men only want to stay at home for t
wo months.
Women are well established in politics. In the SPD and CDU, the two main parties
, almost every third and fourth member respectively is female. The rise in the p
roportion of women in the Bundestag is nothing if not remarkable: Whereas in 198
0 they made up just eight percent of all members of parliament, in 2005 this fig
ure had risen to almost 32 percent. The same year Angela Merkel became the first
woman to become German Chancellor. Social security Affluence for everybody and
social justice: In the late 1950s that was the goal the then Federal Minister of
Economics Ludwig Erhard had in mind when he introduced the social market econom
y in Germany. The ―German model proved to be a success story and became an archetyp
e for several other countries. One of the pillars of this success was the extens
ive German
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welfare system. Today, Germany boasts one of the most comprehensive welfare syst
ems: 27.6 percent of the country’s gross domestic product is channeled into public
welfare spending. In comparison, the USA invests 16.2 percent, while the OECD a
verage is 20.7 percent. An allembracing system of health, pension, accident, lon
g-term care, and Unemployment insurance provides protection against the financia
l consequences of the risks we face in everyday life. In addition, the welfare l
ifeline offers tax financed services such as the family services equalization sc
heme (child benefit, tax concessions) or basic provisions for pensioners and tho
se unable to work. Germany sees itself as a welfare state (The welfare state) th
at considers the social protection of all its citizens to be a priority.
The welfare-state social systems in Germany have a long tradition dating back to
the industrial revolution. In the late 19th century, Reich Chancellor Otto von
Bismarck devised the principles of the state social insurance scheme; It was und
er his aegis that the laws relating to accident and health insurance as well as
provisions for invalidity and old age were passed. Whereas in those days a mere
ten percent of the population benefited from the welfare legislation, nowadays a
lmost 90 percent of people in Germany enjoy its protection.
In subsequent decades, the welfare lifeline was expanded and refined; in 1927, f
or example, insurance covering the financial consequences of unemployment and, i
n 1995, Long-term care insurance were introduced. The 21st century calls for a f
undamental structural realignment to the systems, in particular with regard to w
hether they can be financed in the long term: The increasing proportion of elder
ly people in the population in conjunction with a relatively low birth rate and
trends in the labor market have pushed the social security system to its very li
mits. By means of extensive reforms politicians is now busy attempting to meet t
his challenge and ensure a welfare system based on solidarity for coming generat
ions as well. Alongside their peers of the same age, whose importance has risen
appreciably, the main group to which young people relate is the family. Never be
fore have so many youngsters – 73 percent of 18 to 21-year-olds – lived at home for
so long. Almost all 12 to 29-year-olds state that they have a very good, trustwo
rthy relationship with their parents.
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One reason for staying at home so long is that more and more young people are st
aying in the education system for longer and longer. Their Standard of qualifica
tion has risen considerably. In total, 43.4 percent of each year-group (18 to 20
-year-olds) is entitled to study at a university, and 36 percent of each year-gr
oup opts for such study in the medium term. In particular, young people from low
er social classes and immigrant families represent problem groups for the educat
ion system.
In comparison with earlier generations of young people, youngsters have become m
ore pragmatic and not only have a good relationship with their parents’ generation
but also with democracy: The pessimistic protest and ―can’t be bothered attitude of
the 1980s has for the most part given way to a non-ideological, optimistic pragm
atism. Today’s young generation is success-oriented and prepared to work hard. The
ir maxim of life can be reduced to the formula ―getting on instead of getting out .
With regard to the traditional left-wing/right-wing divide, today’s youth is typic
ally positioned somewhat to the left of the population as a whole; only very occ
asionally are there instances of political extremism. On the other hand, there i
s a high degree of willingness to get involved with Social commitment. Some thre
e-quarters of all youngsters are actively committed to social and ecological int
erests: elderly people in need of help, environment and animal protection, the p
oor, immigrants and the disabled. Interest in politics, political parties and tr
ade unions, on the other hand, is on the decline. Only about 30 percent of 12 to
25-year old youngsters claim to be at all interested in politics, whereas among
young adults and students the figure is considerable higher, namely 44 and 64 p
ercent respectively. The elderly In Germany, approximately every fourth person i
s over 60 years old. Because of the longstanding low birth rates and increasing
life expectancy, after Japan and Italy German society has the third-largest prop
ortion of elderly people worldwide. Their ways of life and Lifestyles have chang
ed a lot over the last decades. Nowadays the vast majority of elderly people lea
d independent lives. For the most part, they live close to their children, with
whom they are in close contact. Health-wise the ―young elderly , who are younger tha
n 75 or 80, are mostly in a
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position to carry on living independent lives with new goals and actively decide
how to make use of their leisure time. Financially speaking the elder generatio
n is for the most part taken care of: The 1957 pension’s reform gradually gave pen
sioners a full share in the nation’s wealth. Today it is even possible for them to
give their children financial support to start their own family. Poverty in old
age has not been done away with entirely, but the risk of being poor in old age
is lower than that of other age groups.
Increasingly seldom do families of three generations live under one and the same
roof, but there are strong emotional bonds between grown-up children and their
parents and between grandparents and grandchildren. A Federal Government specime
n project seeks to strengthen cross-generational ties. Thus in coming years each
district and municipality in Germany will seek to establish a so-called multige
nerational house. To date, 460 such houses are receiving financial support, form
ing a point of contact, network and hub for family advice, health support, crisi
s intervention and care planning. TECHNOLOGICAL ENVIRONMENT German Technology Ai
rbags, Aspirin, gummy bears, jet engines, light bulbs, maglev train, mp3, the pi
ll, spark plugs, and the theory of relativity, toothpaste and X-ray technology:
The list of German inventions that changed everyone’s lives is long – and is still g
etting longer: In 2006 only, there have been more than 70,000 patents registered
with the German Patent Office. Businesses worldwide trust in the quality and re
liability of German technology. It is demanded particularly in sectors such as e
ngineering, energy and environmental solutions. The major German companies inclu
de Daimler, Volkswagen, Siemens, BMW, ThyssenKrupp, Bayer and Deutsche Post. How
ever, just as important, there are thousands of small and medium-sized companies
contributing to Germany’s success as one of the world’s leaders in innovative Germa
ny’s Involvement in Environment Protection - Germany is a relatively small country
– but there are 82 million people living there in the heart of Europe. No surpris
e that the protection of the environment is playing an important role in Germany
. For example, German technology in regards to renewable energy is famous for be
ing advanced. Germany is a worldwide leader in environmentally friendly technolo
gies. Even though it rains a lot in Germany, our country accounts for 40% of the
solar energy produced worldwide.
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S W O T ANALYSIS OF “DEUTSCHE BANK AG”
Strengths Economies of scale Strong business model Strong financials Strong bran
d Threats Margin pressures Low chances of inorganic growth Weakening volume tren
ds High dependence on capital markets Dependence on key accounts Weaknesses Cust
omer profile for the Information Services division
Opportunities Cross-selling opportunities Recovery in the US equity markets Germ
an equity market

STRENGTH
Economies of scale- Deutsche Bank has been named "IT department of the year" and
has received an award for "Best back office project" in the hotly-contested Fin
ancial News Trading & Technology Awards 2008. Deutsche Bank had successfully mig
rated norisbank s products and customers onto its own IT systems, leveraging eco
nomies of scale and being able to switch off all previous norisbank IT systems.
The project was carried out within a timeframe of just over 12 months, involving
up to 250 employees from the IT, PBC business and norisbank areas.
Strong business model - As experts in the global world of financial industries w
e know, that the influence of technology and operations is present in everything
the bank does, integrating business and technical know-how with exceptional lev
els of innovation to make the Deutsche Bank one of the most efficient and automa
ted organisations in the financial services industry today. Strong financials – It
has been discussed thoroughly in the previous pages about Deutsche Bank and its
financial position.
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Strong brand – As a brand Deutsche Bank is Europe’s largest investment bank & is ver
y well known all over the world.

WEAKNESSES
Customer profile for the Information Services division - Despite turbulence on t
he financial markets, Deutsche Bank maintained its capital strength. This gives
the bank affirm foundation from which to focus on its responsibilities. Responsi
bilities to its clients who continue to look to the bank as a dependable busines
s partner & responsibilities to its shareholders & staff, to whom the bank offer
s a fair perspective, and to whom it seeks to remain attractive in future. Final
ly responsibilities to the financial system of which the bank is a part and whic
h now needs to be rigorously analyzed and re-engineered and it can become streng
th in future. Dependence on key accounts – It still depends on some key accounts l
ike Private Wealth Management and Asset Management. It must fight with the real
situation.

OPPORTUNITIES Cross-selling opportunities - Deutsche pushes wealth cross-selling

with Credit Suisse hires. The top two bankers responsible for overseeing the co
operation between Credit Suisse s investment banking and wealth management opera
tions in the US and Europe have left to join Deutsche Bank as it moves to replic
ate its Swiss rival’s cross-selling model. In the first half of this, revenues fro
m cross-divisional collaboration at Credit are estimated to have hit Sfr2.5bn (€1.
5bn), but the Swiss bank forecasts they could reach Sfr10bn by 2010.
Recovery in the US equity markets - 2010 likewise looks to get off to a good sta
rt. The forecast of a continuation of the global economic recovery and the high
volume of liquidity create a favourable environment for equities. Amid low bond
rates and expected strong earnings growth upward of 20 percent, equity markets i
n the developed countries look highly attractive – despite the sharp rise in price
s – relative to bonds. Moreover, the dividends from many equities exceed the yield
on government bonds. Finally yet importantly, valuations, which are close to th
e long-term average based on a historical comparison, suggest upside potential.
German equity market - The German stock market has developed by leaps and bounds
over the past two years. German legislators have, for example, introduced a lar
ge number of improvements that have brought the underlying conditions of the Ger
man financial markets into line with international standards. Market participant
s thereby have the potential — above all
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through the introduction of a single European currency — to actively avail themsel
ves of the resulting opportunities. The future will see progressive globalisatio
n and increasing international competition on the financial markets and the mark
ets for goods and services. There will also be a greater need for pension plans
funded through the capital markets. These developments will further promote the
utilisation of shares as a financing and investment instrument in Continental Eu
rope and, especially, in Germany. Introduction of the Euro will considerably rei
nforce these developments and the integration of markets. The German financial m
arkets are well prepared to meet these challenges. Market participants are takin
g advantage of the improved underlying legal environment to develop their positi
on among international competitors.
THREATS Margin pressures - Deutsche Bank, like New York-based Goldman Sachs Grou
p Inc. and JPMorgan Chase & Co., probably saw a decline in revenue from fixed in
come, currencies and commodities as business slowed before year-end and competit
ion increased, shrinking margins. The German company’s annual profit was probably
4.3 billion Euros, analysts estimated, following the first full-year loss in mor
e than 50 years. Revenue at the debt unit probably fell 27 percent from the thir
d quarter to 1.6 billion Euros, analysts said. JPMorgan’s fixed-income trading rev
enue was $2.7 billion, down from a record third quarter, because of lower volume
s and a smaller gap between bid and offer prices, the company said on Jan. 15. G
oldman’s revenue from fixed-income, currencies and commodities also declined, miss
ing some estimates. Deutsche Bank said in December that pretax profit might reac
h a record 10 billion Euros in 2011 as it boosts earnings at the corporate and i
nvestment bank, helped by market share gains, and expands in Asia. Pretax earnin
gs at the investment bank may rise 50 percent from the level in 2007 to 6.3 bill
ion Euros in the same period, the company forecast. Low chances of inorganic gro
wth - Germany’s biggest bank, may report its smallest quarterly profit of 2009 fol
lowing a slowdown in fixed-income trading. The Frankfurtbased bank will probably
report fourth- quarter net income of 650 million Euros ($906 million), compared
with third-quarter profit of 1.38 billion Euros and a record loss of 4.79 billi
on Euros in the year-earlier period, according to the median estimate of 14 anal
ysts surveyed by Bloomberg. ―Deutsche Bank can’t escape the trends we’ve seen at the U
.S. peers of lower corporate activity, which is partly seasonal, and margin pres
sure, said Fabio Mostacci, a Madrid- based analyst at Banco de Sabadell SA. ―Analys
ts have adjusted sales and trading expectations downward after the U.S. bank ear
nings season. Weakening volume trends – The above mentioned points are supporting t
his point. But Deutsche Bank can recover from this situation. High dependence on
capital markets – The capital market is highly volatile in Germany currently. So
there is a threat of collapsing.
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CONCLUSION During the ―GOTA trip, especially in Munich we came to know & experience
things those are a lot more new. In Deutsche Bank, Dr. Robin Bartels gave a cle
ar-cut idea about the bank. In ―Ministry of Economic Affairs , we learn economic pol
icies in the state of Bavaria, in terms of crisis. Their regional policies & lan
d use planning and energy policy. Shri. Anup K. Mudgal(Consul General of India)
& Mr. Manish Pandey(TCS), told us – what is the current position of India and abou
t selling in German market. Finally, in Istanbul (Turkey), we stayed 2 days and
enjoyed the ancient beauty of that city. The whole GOTA trip was an unforgettabl
e learning experience.
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THANK YOU
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