Fuchs Petrolub: The strengths and vulnerabilities of the German Mittlestand in the modern world
Date
2018
Authors
Chen, Amy
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Publisher
Bachelor of Commerce Best Business Research Papers
Abstract
This report explores the German phenomenon of the “Mittelstand”, argued by some to almost be a philosophy and way of life in and of itself; a method of running a business, remaining conservative, and being long-term oriented. This is a foreign ideology and there is no direct translation to English, however it is understood that Mittelstand firms are considered small to medium sized enterprises (SMEs) while also being characterized by specific values, work ethic, and management practices. The modern German economy has a reputation for being incredibly strong, and many consider Mittelstand firms to contribute to this strong economy. These firms are known to be foundational and critical in the modern German economy, employ most of the workforce, and its prominence in Germany is unique to the country. These companies are incredibly competitive in their respective niche markets, and command a strong reputation for high quality as well as innovative despite generally having low public visibility. Using Fuchs Petrolub SE as a prime example, the world’s largest independent lubrications producer, one can further examine how a company uses Mittelstand characteristics to its advantage on the global stage, but also how it may cause some complications and problems that managers face in Germany, as well as how they are consequently being handled.
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Citation
Chen, A. (2018). Fuchs Petrolub: The strengths and vulnerabilities of the German Mittlestand in the modern world. Bachelor of Commerce Best Business Research Papers, 11, 22–36.