Germany

Faculty: Mehree Iqbal (Mei)Course: INB 410Section: 3Subject: Case Study AnalysisGroup: 6Group members: Name ID Rafi Islam 1210770030 Najiur Rahman Shojol 1210096030 MD. Shahrear Shifat 1210072030 Omar Farukh 1210010030 Munshi Neemal Ehsan 1210066030 Faizul Alam 1210283030Competitive advantage of GermanyGermany has absolute advantage in innovation. The countrys industries capacity to innovate and upgrade is high, which is why the manufacturing companies are now thriving. Germany has a stable governing body known as Fraunhofer Society which is a network of public institutions that help companies recombine and improve ideas. The evolution of Germany's assets, both human and capital resources, provided the pathway to pre-eminence in the engineering, chemical production, machinery, banking, and automotive industries.The management practices shared among all the companies in Germany is favourable for the economy of the country. The norm of their corporate culture is to infuse old products and processes with new ideas and capabilities or recombining elements of old, stagnant sectors into new, vibrant ones. This norm has helped the country to sustain its employment growth and productivity while expanding citizens real incomes. Furthermore, the workers in the companies are regularly trained to keep up with the innovation and have motivated work force. Thus these strategies have resulted in successful global brands such as: Miele, Bosch, BMW, and Audi.Competitive advantage of United StatesAmerica has absolute advantage on invention. The countrys industries capacity to innovate and upgrade is low, whereas for invention it is high. Clear evidences are the sophisticated system of financing radical ideas such as: Google, Apple, Facebook, Twitter, Amazon, etc.U.S. does not have any stable governing body for innovation of inventions. Thus U.S. suffers as it is easy to achieve competitive advantage, but it is difficult sustaining it.Management practices shared among the companies of U.S. are unfavourable and do not consider the consequences on the economy of the country. All the companies focus on technologies that reduce or eliminate the need to hire workers. Thus this practice does not sustain employment growth and productivity and this has resulted in the countrys balance of payment to get worse.DifferencesManagement practices widely differ between Germany and U.S. Germany innovate in a way so that it leads to economic growth and sustains employment and regularly trains its employees. On the other hand U.S. look for those technological innovations which will replace humans and this does not help in sustaining employment and thus do not lead to economic growth. U.S. has succeeded with its sophisticated appearance innovation but the firms failed to innovate it and sustain the invention. U.S. is good at inventing and Germany is good at innovation. Thus U.S. firms can form joint ventures with German firms to gain competitive advantage together in the technology sector. U.S. has that pressure, necessity and adversity to innovate. Thus forming this joint venture will allow free flow of information between the countries and this will lead to a positive sum game as following this strategy will benefit both countries including its population and economy.