hallga'tag | Business Venture Report | 2021

Berlin, DE Fall 2021

the plan Linda Liao and Sophie Schönbach in conversation about plans and strategic recommendations for hallga’tag.

Linda Liao Sophie Schönbach

We are the safe haven for Berlin’s night owls.

hallga’tag Contents

Global and Cultural Research

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Business Overview

Venue Style Location Location Rationale Brief Concept Rationale

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02 Business Etiquettes

Gift-giving in a Corporate Environment Strict Adherence to Rules Assertiveness Opening Hours & Meeting Times Planning & Preparation Jokes are Appropriate

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03 Industry Analysis

Global Competitors & Business Models Global Trends and Forces

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04 Host Country Analysis

Social Technological Economic Environmental Political Legal Ethical Demographic

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05 City Analysis

Organization Customer Market Profile Competition in Berlin

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hallga’tag Contents

Global Strategy Development

06 07 06 Cultural Variables

Values Norms Beliefs Cultural Attitude Individualism vs. Group Behavior Cultural Analysis Decision Making Flowchart

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Value System Mission + Objectives Organizational Structure Organizational Culture Social Responsibility ISR: International Social Responsibility Sustainability Model Company Ethics Employees Management IJV: International Joint Ventures

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Germany as Operating Environment

08 Culture Sensitive CSR Communication Strategy

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09 Moral Philosophy Strategy

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Business Strategy

Mission, Vision, Objectives Business Model Canvas

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Alternative Strategy Assessment

Competitive Analysis

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hallga’tag

Business Operations

Contents

Venue and Experience Digest & Works Cited

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External SWOT

Global National Regional Strategic Partnerships, IJV, and Alliances

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Internal SWOT

Key Success Factors Distinctive Competencies Comparative Advantages Weaknesses

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Strategy Combination

Global Integrative Strategy Corporate Integrative Strategy Entry Strategy Alternatives

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Internal Structure and Behavior

Moral Philosophy Hypothesis Decision-Making Flowchart Internal Communication Strategy Canvas

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Resource Needs Assessment

Intellectual Capital Staffing Orientation Plan Compensation Example

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Operational Model

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Experience Design

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Venue Design

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20 Digest

Business Idea

01 Business Overview

hallga’tag

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Venue Style

RD&E

Location

Friedrichshain-Kreuzberg (Xixerone, 2020), Berlin, Germany

Location Rational Berlin is a multicultural city with a fascinating everyday nightlife, holding an estimated €1.5 billion a year from party tourism, setting the standard for the European party scene (Hanford, 2020). Within the recent turn of events, Berlin’s rather liberal corona virus restrictions regarding night culture venues have turned the city into an even clearer defined party capital of Europe (Stole, 2021).

Brief The proposed venue is a combination of a cafe and non-alcoholic bar that invites its guests to join this self-care space after a night out. While it offers snacks and non-alcoholic drinks, the dining aspect is not its focus. Its focus lies on shared values, its hang-out spots and the educational culture that surrounds it. Hence, this may also be categorized as an after-party clubhouse.

hallga’tag Business Idea

02 Busin

Concept Rationale Berlin is the world techno capital (Noire, 2013). As of 2019, Berlin is home for more than 400 nightclubs and venues, with no closing time and perhaps the only place where 24-hour parties are normal (Welt, 2019). Consequently, Berlin has evolved into a drug culture (Jenkins, 2013) as those are used by clubbers to boost their experiences (Tossman, 2001). As a result, drug related deaths have also increased (Fishman, 2021). On a positive note, the need for solving this issue has gained public attention and governmental support (Germany: Taking a HUMAN-RIGHTS based approach to injecting drug use, 2018) over the years.

Our proposed business focuses not only on contributing to the normalization and education regarding safe drug use, but furthermore, on the self-care aspects of responsible partying. The overall value principle functions similarly to the decriminalization of drugs (Drug decriminalization in Portugal: Setting the record straight, 2021).

Through an inclusive and inviting space, we offer a curated shelter for the night owls of Berlin. We provide a place for young people to spiritually rest and detox after a long night out. By selling soul warming teas at night, as well as refreshing coffees and detox smoothies in the morning, we create a space that allows young people to process and reflect on their experiences. We offer smoke areas, board games, hammocks, swings, doodle walls as well as quiet rooms and facilitate talking areas. One further aspect that makes us stand out are our opening times.

Space Due to the stigma around clubs in Berlin, banks are hesitant to give loans to startups and rental contractors are not likely to give more than 2 years of con-tracts to club owners. Big clubs can bring up to five-digit sums on a given evening throughout the week. However, it costs a high price to maintain it (Welt, 2019). Building a club requires a lot of investment. This is why we are going to expand the ruin pub culture in Berlin and place our club into a ruined building. All furniture is second-hand or donation-based.

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ness Etiquettes

Gift-Giving In the German business culture, gift-giving is not an expectation. However, bringing a small gift from home to the host of the business gathering won’t hurt anyone. Even chocolate, as well as a nice bottle of red wine, would be a good idea, or maybe a bouquet of flowers. If you would like to gift flowers (Globe Media, 2020), you must consider the meaning the flower’s color carries. On the other hand, if you receive a gift, usually you should open it right away with the gift-giver present (Warnimont, 2021).

hallga’tag Business Idea

Adherence to Rules Germany has an extensive bureaucratic system set in place for most situations that a member of society can find themselves in. This stems from the value placed on democracy and the goal to make systems ‘failproof’ in order to avoid any incidents from the past. Hence, communities in Germany trust and value rules, even if they might not be immediately understandable to the end-user. In turn, this means that strict adherence, even on a small scale, is expected. One current example is the wearing of masks. If a store specifies its use at the entrance, then the social norm is set to follow those rules. Even if you disagree with the act, one would first put on their mask and then enter to confront the cashier or store manager if the individual wishes to express their disagreement. Another example would be the leashing of dogs. If you enter an area that requires you to leash your dog (Berlin Tourismus & Kongress GmBh, Etikette & Trinkgeld) and you do not abide by this rule, other individuals that share the public space with you will most likely speak up about it, as well as point out and clarify the rule to you. In a business environment, this means educating yourself about the rules of space before entering as well as respecting the rules until allowed otherwise.

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Assertiveness Besides being very straightforward or blunt, German people could also be quite assertive. Sometimes this kind of behavior can be viewed as rude or inconsiderate, but from their perspective, it’s more about being efficient in communicating their ideas and being honest with the person they are interacting with. They get straight to the point and don’t take things too personal either (Stein, 2021).

Opening Hours & Meeting Times Within the perception of time, Germans place a huge value on punctuality.

The reason for that is the underlying appreciation for all things efficient. If you are punctual and prepare, you get to make the most out of your meeting time. If you can make the most out of your time, then you can efficiently take a break and dedicate hours to launch and other resting periods such as the weekend. Due to the high demand during work hours, off-limit time blocks are very respected (Globe Media, 2020). This is pertinent to know when trying to set up a meeting or call with a German business partner. The reason for Sundays being off-limits in all regards, not even for emergencies, stems from Germany’s religious background. Although it originated from a misunderstanding in the old testament (Got Questions Ministries, 2011), Christians view Sunday as a holy day that is used to rest as God did on the seventh day

of creation, and spend time with Him. The religious origin bled into the overall societal culture and set that as a strong norm.

Planning & Preparation Due to the value placed on efficient time management, it is a must to be well prepared for every meeting. This goes hand in hand with the respect for given opening hours. Germans do share the viewpoint that time is money (Globe Media, 2020).

Being prepared does not stop with the meeting. It is highly valued to follow up within 24 hours after the meeting via an email that recaps all points discussed in detail. This allows for the organization and detailed-oriented business conduction that Germans strive for.

Jokes are Appropriate Business in most countries is of-ten seen as a serious and strict environment.

People want to approach business situations as appropriately and professionally as possible. Germany is not an exception.

Although German people might seem cold and humorless, they like to joke around and have a good laugh (Warnimont, 2021).

When it comes to business, make sure your jokes are appropriate in the office setting.

hallga’tag Global and Cultural Research

In order to understand the positioning of hallga’tag, how it moves within its market space and what cultural aspects define its behavior, it is pertinent to analyze every stage from the macro down to the micro level. This allows us to see the bigger picture in order to classify individual aspects better and put them into perspective.

In addition, it is important to understand the influences that define internal operating systems, its moral philosophy and communications strategy in context.

Industry 03 Analysis

16 17 Global Competitors & Business Models Within the first stage of analysis, the business model itself is prioritized. This means that it is important to understand global competitors, even if they do not have a direct influence on hallga’tag’s specific audience to geographical distances.

However, similar business models allow us to understand the movement within space and all lessons learned when it comes to external influences.

As specified in our competitive advantage, hallga’tag has a very unique business model. It utilizes target audiences such as ravers or coffee goers at a different stage in their journey. Rather than speaking to their primary desires, such as clubs, bars or coffee shops would do, it offers a post-party space that supports processing and allows the consumer to settle down after a long night. This being sad, there are no direct global competitors within the market.

Cafes The cafe culture is very common and spread over the entire globe. Any major city, and even communities in the countryside, offer coffee shops and spaces to chat, work and relax. This is directly influenced by the booming journey of urban development (Urban growth fuels booming café culture. BeanScene, 2019). In perspective to hallga’tag, it becomes apparent that the business model itself is not something that needs to be newly introduced to the community. It is also something that is entirely accepted across the world. Hence, hallga’tag communication can entirely focus on its competitive edge.

Bars Similarly to coffee places, bars are a very common business model around the world. Their specific appearances can vary based on the scale of the community that

they are a part of. Some global regions such West Africa are dominated by religions, such as Islam, that do not place the consumption of alcohol into the everyday life.

This is important to note when introducing such a business model to a community.

Hallga’tag, however, does not engage in the selling or promotion of alcoholic beverages. It merely aligns with the aspect of bringing people together in order to engage with each other and enjoy each other’s company. Its familiarity within the Western world supports the acceptance of hallga’tag’s business model, similarly to cafes.

Ruin Pubs Ruin pubs are a phenomenon that is placed as a crossover venue between bars and cafes, just like hallga’tag, and arose in Budapest in the early 2000’s (Mackintosh, A., 2021). Its focus, however, is more specific. Ruin pubs utilize ruins to create very personable, backyard vibes that invite consumers of all ages to engage with each other. They often revive run-down neighborhoods and focus on the community and creativity rather than revenue. This can be seen in the fact that beverages are unusually very low-priced (Michelle, J., 2021). This communal aspect and the sustainability of space-design is applied to hallga’tag. It fosters creativity through affordability and re-design. However, its opening hours and specific offers do differ, as specified above.

hallga’tag

Outdoor Bars & Garden Nightclubs

Drug Decriminalization (Portugal)

The Covid-19 pandemic has shown that engaging with each other outside tends to be safer than to do so inside (Healey, N. , 2021). Hence, many bars and similar venues started offering outside drinking spaces within the last two years (Ferguson, M. ,2021). Since the ruin pub influence has a beer garden aspect to it, hallga’tag in of itself offers outside spaces. The weather, greenery and nature supports its calming hangout purpose and offers a more attractive space design to the consumers.

This trend, on one hand, offers a healthier customer interaction, supports its overall purpose and is, similarly to the bar and cafe business models, not a new feature that needs to be introduced. On the other hand, it is something that is well-known and expected.

The legalization and decriminalization of drugs is a change in governmental structures and laws that are flooding the planet. Looking at the United States alone, 1 in 3 Americans live in places where the possession of marijuana is legal (Miller, K., & Beckstrom, M., 2021). Looking across the pond and taking it one step further, Portugal is a splendid example of a drug culture transitioning and its effects. The legal change did not only target a distribution control, but mainly a change of mindset. As the Guardian pointed out, Portugal’s decriminalization in 2001 is working as they have seen a dramatic drop in overdose, HIV infection rates and drug related crime. It claims that their policy is about treatment, harm reduction and support (Ferreira, S., 2021). This rationale directly aligns with hallga’tag’s positioning. As we do not promote or foster drug usage, we support everyone who chooses to do so and create a safe environment through education. It is important to notice that safety and invitation are not the same thing. This trend describes the overall transitioning in mindset and forms a cultural environment for hallga’tag that is accepting at the least. As it is such a dominant trend, it is pertinent to track and stay up-to-date with its effects and most importantly community perceptions.

Overall, looking at global competitors, we see that very known business models path hallga’tag’s way and offer clear insight into what is accepted and what aspect need to be introduced as new.

Global Trends & Forces

Global and Cultural Research

Raving The Covid-19 pandemic has severely shifted the music industry. Big gatherings such as festivals are not feasible the way they used to be. This caused a development towards online and VR based music consumptions. However, in spaces such as Europe, physical parties remain dominant (At Europe’s Illegal Parties, the Virus Is the Last Thing on Anyone’s Mind, 2020). They are described as a “huge part of the city’s identity” (Dov, Y. ,2020). Open-air events are gaining popularity and are defining the scene in Europe. This is pertinent to note as it describes the development of hallga’tag’s main target audience. This subgroup is not decreasing in size, on the contrary, it is growing even further. This is an important trend that sets the basis for our demand.

Covid-19 in Germany Germany’s approach to the Covid-19 pandemic was rather strict and radical in its early stages. As of now, the political system has tried to walk a more centric line as public outreach and frustrations are increasing (Nicholson, E., 2021) . Even though Germany is running strong vaccine campaigns, its development is rather slow (Ovaska, M., & Dutta, P., 2021). Currently, the venue industry is determined by the “three Gs”: geimpft, getested oder genesen (engl.: vaccinated, tested, or recovered) (Carter, A., 2021). If either of these three circumstances apply to you, and if you can show proof (e.g. through the CovPass) (CovPass: How the digital Corona vaccination certificate works. (2021), you are allowed to

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enter any venue inside and outside, while wearing a mask. If you do not have proof, you are allowed to enter only outside areas.

Hence, it is pertinent for any cafe or bar at this point in time to offer outdoor drinking spaces. Many consumers find themselves to be more comfortable in those situations as well. Another sub-trend to note here is the Luca App (Luca app: How the digital contact tracing works., 2021) . This app is a widely accepted form of digital contract tracing that happens through activated GPS and existential information transfer.

It allows the government to trace contact and reach out to anyone that could have been infected. Its positive public perception allows for further legal space when it comes to opening or running bar as well as cafe businesses. It is important to note here that the full closure of such venues and with that, one of its biggest threats is diminished.

Globalization & Food Our current world experiences migrations in volumes that it has never seen before. Climate change arguably sets us up for the biggest migration crisis yet (The Great Climate Migration Has Begun ,2020) . WIthin migration, people are not the only thing that travels. So does their culture, and with that their food. Entirely new cuisines are introduced all over the global and it is no surprise anymore that “you can eat traditional Indian curry while sitting in the middle of someplace like Berlin” (Berlin Population 2021 (Food Culture and Globalization · Global Gastros. ,2021) (Demographics, Maps, Graphs)., 2021). Again, this trend and global force sets the groundwork for our international venue. We see that our focus does not have to lay on the introduction of international venue offerings but rather on what makes us unique within that world.

The legal change did not only target a distribution control, but mainly a change of mindset.

hallga’tag Global and Cultural Research

04 Host Country Analysis In order to understand the specific macro environment that surrounds hallga’tag, it is important to analyze all external factors. In order to guide that process, this section utilizes a tool called STEEPLED, and looks at social, technological, economic, environmental, political, legal, ethical, and demographic forces.

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Technological

Berlin & Drugs

Google Maps

Berlin is an international city famously known for sex, drugs and techno (Brause, C. (2021). Phenomenon that functions as an all-explaining example is something called a “Ziehwagen”. To explain its name: “Eine Leine ziehen’’ means to have a line, and a “wagen” is a car or a trailer. This means, we are looking at a red car that allows anyone to enter, to safely consume drugs without the police or bouncers interrupting. As the insider points out in 2019, this phenomenon describes “Berlin’s pragmatism at its best: people are going to take drugs anyway, so they should at least be able to do so in a safe environment.” (Brause, C. (2021) This is a Berlin-specific drug related nuance that is pertinent to understand. Its inclusivity does not promote drugs, but it emphasizes the necessity of safety around a cultural development that occurs regardless of its legal context.

Since the 1990’s, local discovery has shifted from a 200 page book with yellow marks to an interactive platform that tracks your specific user behavior: Google Maps. After all, 87% of consumers use this platform as their first option (Clampet, J., 2021). Further expansions such as the “explore” tab, cause this platform to increasingly dominate discovery and marketing.

It not only communicates where the venue is placed, but informs the consumer about its rating, busy time-frames, pricing, and all other venues in the area that are similar. As a discovery platform, it supports the entire user journey all the way from “this is our answer to ‘bars near me’” to “the desired location is to your right” (KARAKAS, A., 2021). Hence, hallga’tag’s marketing and discovery as well as its SEO is influenced by this trend.

Economic Berlin & International Communities

Bottleneck Recession

Around 2010, over 13% of Berlin’s population were foreign nationalities (Berlin Population 2021 (Demographics, Maps, Graphs, 2021). These numbers have been growing ever since. In 2020, over 21% of the population was foreign born, coming from 190 different nations, mainly Syria, Poland and Turkey ((Demographics, Maps, Graphs, 2021). To us, this means that in Berlin, there is not only no need to focus on multicultural integration, but even more so, it is expected. On the other hand, this also means that any international aspect is entirely authentic as knowledge transfer is not guided from the outside but rather internally.

Again, this shows how hallga’tag can and needs to focus on its specific competitive edge beyond cultural boundaries, as those are not the focus of Berlin.

The international supply shortage of 2021 leaves companies is bottleneck situations that cause active struggle in production processes (McHUGH, D., 2021).. However, within Germany, this shortage namely falls into the semiconductor industry and does not directly influence the venue market the way it does in the United States (As Americans Return To Dining, Restaurants See Trouble Procuring Supplies. ,2021). Despite the geographical difference, it is to be kept in mind that the shortage is indirectly generated from the fast economic rebound after the deep stages of the Covid-19 pandemic. Similar parameters do apply to central Europe. Hence, this trend is to be taken very seriously and could within a short amount of time expand onto the restaurant industry.

hallga’tag

Covid-19 Decline Due the Covid-19 pandemic, the restaurant and catering industry experienced 41.9% decline on the year (Staff, R. ,2021).

From one month to another, revenue increased by 21.9%, in July 2021, yet still 26.8% lower than July 2019. This slow incline can be explained with Germany’s restaurant hesitancy, as 61% of consumers still avoid going out to eat. Overall, there are three direct insights gained from the pandemic’s effect on food services in Germany: 1. Delivery drives future growth; 2. Go cashless; 3. Don’t lose sight of long-term trends. We can summarize that Germany is on a slow, but steady incline that shifts the industry focus towards innovation, cashless and delivery. The most important one to note is delivery, as this solution would not align with hallga’tag’s business model and overall objective.

Global and Cultural Research

Discretionary Spending Restaurants overall are not as dependent on discretionary spending as it once was (Lander, S. ,2021). This also influences the growth of “quick-casual” dining. This sub-sector of the industry has been dominant in Berlin for a while, but is now on the rise as ethnic foods are becoming more mainstream (Lander, S. ,2021). For hallga’tag this could lead to a possible expansion of our targeted consumer subgroup as its concept was casual to begin with.

Environmental Sustainability & Organic Produce & Zero Waste Berlin has always embraced sustainable and green ideas. Within recent years, however, it has become one of the world’s

“sustainable congress metropolis” (Green Berlin ,2021). This not only becomes prominent in the fact that all events are planned through a climate neutral angle, but that restaurants and store rooms are home to already 50 indoor farming units (Green Berlin ,2021). To expand on sustainability within consumerism, this also shifts the focus onto organic produce and healthy food consumption. Within specific cuisine’s offered, we see more and more that vegetables are becoming the stars of the show (Sustainable Food Trends: Berlin’s Green Cuisine | All about visitBerlin – The official marketing company for Berlin ,2021).

This directly influences yet another trend: “ Berlin’s kitchens go zero waste” (Sustainable Food Trends: Berlin’s Green Cuisine | All about visitBerlin – The official marketing company for Berlin ,2021).

RECUP The way that this influences hallga’tag is on two levels. Firstly, it highlights the importance of supply and points out that it is absolutely necessary to obtain all of our products through a partnership with local produce suppliers in the area. Secondly, all cutlery and containers used need to be reusable refill options, even take-away products. The way that this can be made possible is through RECUP. Recup is a coffee cup sharing system that first started to take over Berlin in the beginning of 2017 (Pettit, M.,2021). To increase the relevance of this system, we need to understand that Germany goes through 2.8 billion paper cups each year. This translates to 10,000 cups every two minutes (German green lobby challenges throw-away coffee cups | DW | 02.09.2015.,2021). How does recup function: Recup are cups that are extra-light and shatterproof, BPA-free, created from

22 23 100% recyclable plastic, and made in Germany. When you purchase your drink, you pay a €1 deposit (in exchange for a discount on your drink), and receive your drink in a recup. You can either exchange the cup for your deposit directly at the same venue or later on at any of the 1000 other venues that participate (Hanley, S.,2021). As this is a clear and strong movement, hallga’tag has no problem jumping on this trend.

Political

This very complex matter caused a huge public outcry. As a political and social movement, gentrification remains on the forefront of any consumer and inhabitant of Berlin (Woolsey, B. ,2021). In reference to hallga’tag, we see a strict alignment with a potential public perception barrier and can comfortably say we are on the right side of gentrification. Through our ruin pub set up, we directly support a local movement and do not step against the government but rather private investors and firms such as Deutsche Wohnen, Germany’s second largest property company (McVay, D., 2021).

Kurzarbeit Germany has a government support program called “Kurzarbeit”. This system allows companies to reduce employee’s working hours instead of having to fire them. The government will then pay up to 60% of the employee’s salary. In order to qualify for this program, certain criteria have to be met. However, during the pandemic, the government loosened such criteria immensely so that companies regardless of their size and specific economic struggle can utilize this support system (Kurzarbeit: Germany’s Short-Time Work Benefit., 2021). Throughout this specific time, the finance and economics ministries have located €10 billion to help businesses.

Even though this system is by far not perfect, it provides a rather safe environment for hallga’tag, even in times of a pandemic.

Gentrification As Elisabeth Zerofsky explains 20199 in the New Yorker: “Berlin’s reputation as a compulsively livable city where creative types can rent inexpensively and still afford to do as they please is eroding” (Zerofsky, E., 2021). Gentrification in of itself describes the process when cheap, urban housing is being renovated and restored due to demand and with that rent and affordability go out the window (Gentrification Explained | Urban Displacement Project., 2021).

Legal Drug & Alcohol Generally speaking, the German Federal Narcotics Act, defines any narcotic substances, its framework, trade and prescription, as criminal and any individual to engage with is administratively liable (Bateman, J. , 2021). However, there is one example that highlights the legal position around drugs. Berlin has, as of September 2020, a legal LSD store. The owner, Carl Trump, sells 1CP-LSD that he purchases from Lizard Labs, a Dutch supplier. 1CPLSD is a derivative form the traditional LSD and therefore not included on the illegal psychedelics list. However, once injected, 1CP is transformed into LSD by our bodies and has the exact same effects. Most of Trump’s customers use the drug on a microdosis level to support their mental health journey and battle diseases, such as depression. Germany’s government announced that the legal framework will soon be adjusted to also cover this specific drug. Moving forward, however, the Dutch lab and Trump are planning on simply developing a slightly different derivative to

“It is human nature to eat when presented with food, and to eat more when presented with more food.”

hallga’tag

Ethical Work Ethics

keep their business open. To us, this means that we see a legal framework that is being pushed, and a society that accepts and tolerates such expansions and interpretations of the law. To reiterate, hallga’tag does not promote or engage in drug usage in any kind of way. This analysis is only pertinent through the lens of social perception.

Global and Cultural Research

Food Safety Food safety is surrounded by a pretty hefty law in Germany. The centric legal foundation is called BMELV, or Federal Ministry of Food, Agriculture and Consumer Protection. This ministry has subordinate public authorities in all 16 federal states. Its implementation is guided by the Federal Institute for Risk Assessment (BfR) and is strictly regulated (EU Food Safety Almanac., 2021). This risk can be mitigated by hallga’tag through the organic produce supply partnership and is accommodated through a safety and cleanliness policy and position. This person is ,in turn, also responsible for the obtainment of all licenses and authorizations required to open a food business in the first place (How to Open a Restaurant in Germany, 2021).

Business is taken very seriously in Germany. It includes values such as fairness, loyalty, punctuality, professionalism, and reliability (German Business Culture., 2021). This also tackles the positive reinforcement against fraud and other illegal activities. They are not just illegal, but they are perceived as highly unethical. This official approach is so important, that multiple universities created the GECS, the German Ethical Cultural Scale, in 2019 (Tanner et al., 2001).

Vegan Food Animal rights call activist onto the streets multiple times a year in Germany.

It’s focus directly influences vegan culture and is more and more on the rise (Chiorando, M. ,2021). This is a common and very string ethical value and influences hallga’tag’s supply chain. The Animal Rights Activists Alliance told PBN in November 2019: “Our vision is a society that includes animals and their ethical considerations and grants them a right to freedom and integrity.” (Chiorando, M. ,2021). This ethical stance is further developed through its sustainability angle.

Food Portions Over the last 40 years, the average food size in restaurants has doubled. Marion

24 25 Nestle, a nutritionist interviewed by the Guardian, offers an explanation: “It is human nature to eat when presented with food, and to eat more when presented with more food.” (Rayner, J., Wilson, B., Ray, T., & Erskine, G., 2021). This phenomenon has been defined as a problem by many European public health agencies, and food psychologists classify it as something called the “unit” bias”. Besides the devastating health issues that it causes, it is also the strongest influence on food waste. A self-declared food waste fighter explains in the Huffpost that shopping cart sizes in supermarkets have grown 20% over the last 20 years (Juul, S. , 2021). Specific suggestions say that one should aim to cook 30% less that usual, and it will “target just the right amount of food for your guests.”

For hallga’tag, this means that we offer relatively small sizes (for a small price) with the option for a free refill and any point.

This is a foreign concept in Germany and, therefore, it has to be considered an active challenge of our business model.

Demographic Rather than analyzing stereotypical demographics such as GenZ through a broad lens, this section aims to identify specific motivations, desires and fears as parameters for the customer. Hence, this section asks two questions:

How do older people party?

Generally speaking, night clubbing is seen as a “young people thing”. However, Colin Crummy interviewed 6 seniors for the Guardina in an attempt to explain why seeing Mick Jagger at a gay nightclub in the beginning of 2019 is more normal than we think (Crummy, C. , 2021). Firstly, numbers suggest otherwise, In a study conducted in the UK by Eventbrite found that more

than 3.7 million Englishmen aged 45 years and older go clubbing every week. One defining difference seems to be the reduced consumption of alcohol. Older partying individuals tend to refrain from liquor.

Another aspect seems to be the search for like-minded people and the motivation through music. The most interesting aspect that Crummy seemed to have learned is that old people prefer the “afterparty”, as Victoria Sauders, 50, specified: “I prefer it when all the wallies have gone home.”

(Crummy, C. , 2021). In regards to hallga’tag, the question here is not “Why do old people not party anymore ?”. The question actually is: “Why wouldn’t old people party anymore?”

What do young people value in their lives?

A WISERD education survey in spring 2018, that interviewed 895 pupils in Wales, found that 82% value a sense of humor, 67% honesty, and 61% kindness (Dumangane Jr., C., 2021). Through time, this group of individuals aged directly into our target demographics. We see that relationships are formed through genuine behavior and open approaches. This sets the basis for supporting and self-caring generation the way we know it now. Even though the current definition of self-care can be rather dangerous, as it implies a temporary high and immediate gratification (Tang, A., 2021), and with that does not focus on sustainable mental and physical health, it does fit hallga’tag’s offer very well.

hallga’tag Global and Cultural Research

05 City Analysis Organization

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Hallga’tag is a midnight cafe that opens its doors to Berlin’s night owls. We offer an extensive drinks menu, such as teas or charcoal smoothies, as well as simple snacks, such as potato salads, that focus on after-party health. Rather than a cafe, hallga’tag is a place for refuge that helps you process your night out, sober up, calm down, and let your creativity flow freely.

Hence, our focus is not our specific drinks or food offerings, but our overall space design. We create a positive culture around partying and foster an inclusive environment through education or self-care. Our business model is very similar to that of a cafe, with a slight shift towards value creation as our opening hours, e.g. are from 4am to 10pm, and then from 12pm to 5pm.

Hallga’tag specifically aligns strongly with four cultural and social movements: sustainability, gentrification, mental health, and education on drug usage. As these four movements define Berlin in of itself right now, hallga’tag simply aligns, promotes and advocates for these values.

With that we are hoping to speed up and ride a wave of social movement that the founders of hallga’tag personally agree with. The values presented are defined by what is needed as well as what we would like to see in our own community.

The fight for Climate Justice Gentrification Mental Health Drug Education

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The Intellectual Raver Age Nationality Gender Income Level Occupation

Level of Education Marital Status Interests Values

The Lazy Cafe Goer Age Nationality Gender Income Level Occupation Level of Education Marital Status Interests Values

22-60 Mixed Mixed Low-medium Entry level jobs, senior positions Bachelors or lower Married, single Sustainability, art, job Like to visit places that are not just cheap but aesthetically pleasing and calming. Value high quality produce and sustainability.

16-32 Mixed Mixed Low Mixed; mostly students, or entry level job positions *It is important to note here that the average college student age in Europe tends to be higher than in the U.S. (Europe: share of population with a degree 2020 by age. , 2021).

Bachelors Single Healthy lifestyle, educating themselves, caring for the environment Life is short, work hard play hard, love to meet new people and interact with art. Appreciate sustainability and different sub cultures.

Global and Cultural Research

hallga’tag

Market Profile Germany (DEen-Germany - Infogram., 2021) GDP 2020: GDP Per Capita 2020: External Trade 2019: GDP composition 2019:

$3.803 billion; 4/194 world ranking $45,733 88% of GDP 0.8% Agriculture; 29.6% Industry; 69.6% Services Currency 2020: 0.88 per USD World Trade Ranking 2020: 3/212 Merchandise trade 3/139 Commercial services trade Ease of doing business: World ranking 2020: 22/190 Political System:

Federal Multiparty Republic Population 2020: 84 million; World ranking: 19/235 Median Age 2020: 45.7; World ranking: 5/202 Major religion: 66% Christians Language: German

Competition in Berlin Direct There are no direct competitors in Berlin. All venues that are structured similarly do have defining differences in their product and services offered.

28 29

Indirect Indirect competitors have a similar business model but offer a slightly different service to a slightly more defined target audience.

Bars: 2.469 Cafes: 5.000 (Number of bars, clubs and music venues in Germany | Statista., 2021) (Gastronomie Berlin - Steuerpflichtige Unternehmen nach Betriebsart bis 2018 | Statista., 2021)

Replacement Competitors Replacement competitors often exhibit a much stronger threat than direct or indirect competitors. To define this section, one must ask the questions: what would the consumer do instead?

Fast Food: Fast food venues such as McDonalds are often the only food options that are open within those late hours. As clubbers are often looking for food, places as such can often turn into post-party hangout spots.

Smoothie Bars: Rather than trying to support a detox process within the same night, party goers can go to sleep and gravitate towards venues such as smoothie bars throughout the next day.

Home-cooked food and personal garden, balconies and beds: Rather than seeking yet another venue, party people often simply go home and use their own personal spaces to rejuvenate after a long night.

hallga’tag

06 Cu Suppliers Die Dicke Linda - organic produced, locally sourced produce and ingredients (DIE DICKE LINDA - diemarktplaner.de., 2021).

Our snacks, teas and produce ingredients are all sourced from an organic supermarket called “Die Dicke Linda”, around the corner from hallga’tag’s location. As we believe in collaboration, we also support the market’s advertisement in our establishment.

Global and Cultural Research

VEB Orange - thrift store (VEB Orange., 2021) This neighborhood thrift store does not only sell clothing but individually selected furniture and other household items such as plates as well. Due to its proximity, we source most of our design space items from VEB Orange.

SirPlus - Online Store for “Soon to be expired” foods (SIRPLUS - Dein Online Shop für gerettete Lebensmittel., 2021) As often as we can, we try to source any other ingredients that Die Dicke Linda does not sell from SirPlus to support the fight against food waste.

As we believe in collaboration, we also support the market’s advertisement in our establishment.

30 31

ultural Variables Cultural Attitude View of Time

Values

Norms

* * *

* * *

Personal space Be on time, be efficient Have empathy towards customers and treat them equal

Diverse community Age has no further connotations Always discuss issues and be open about them

Efficiency is very important to German people, therefore they make sure everything they do is on time (Sarva, A. ,2021).

Materialism Showing off your goods in a German social circle is received with a “looks like she needs that,” “that” being the opportunity to show off because they apparently have nothing else to be proud of (“genuine”) (Are Germans materialistic?, 2021).

Individualism

Beliefs

* *

Official religion is Christian 2 thirds of the population identify as Christians (Religions in Germany. , 2021)

Individual + Group Employee Behavior Just as mentioned before, efficiency is a big motivation for German workers. They are focused on what they have to do, and they always try to use their time to the most in a meaningful way. They also separate their private life with the work environment and they communicate directly and clearly. German people are committed, reliable and consistent (Schroll-Machl, 2021).

Individualism is alive and well in the German society. The majority of families are small, with a focus on the parent-child bond rather than aunts and uncles. The concept of self-actualization is held in high regard. Personal preferences for individuals, as well as a sense of duty and obligation, are the foundations of loyalty (Country Comparison - Hofstede Insights, 2021).

Change Culturally, due to the historical background of Germany, there has been a change in anti-antisemitism. The effect of the past has been slowly decreasing therefore indicating that German people are open for changes.

hallga’tag Global and Cultural Research

Cultural Analysis Cultural differences influence the way we manage various workforces across different cultures. In order to classify and understand such differences best, one can look at differences using Hofstede’s 6 cultural dimensions. Indexes are measured up to 100 points and define the spectrum (Country comparison, 2021).

32 33

Individualism vs. Communitarianism.

Universalism vs. Particularism.

* * *

(The Seven Dimensions of Culture: Understanding and Managing Cultural Differences., 2021) Rules over relationships More focus on individual benefit Straight forward communication

* * *

(Cross-Cultural Communication online presentation., 2009) Individual performance is rewarded Freedom of decisions initiative Self expression

Trompenaar’s Cultural Dimensions Trompenaars Cultural Dimensions Model, commonly known as The 7 Dimensions of Culture, will assist businesses to conduct more successful work with individuals from other cultures. (“Expert Program Management”, 2021) Universalism versus particularism can be described by asking if rules or connections are more important. The questions “Do we work as a team or as individuals?” or “Are we showing emotion?” sums up Individualism versus Communitarianism and Neutral versus Emotional. Specific versus Diffuse refers to professional and private life separation.

Achievement versus Ascription refers to the question “Do we have to earn status or is it bestowed upon us?”. Sequential versus Synchronous time asks if completing tasks one at a time or all at once is preferred and Internal direction versus External direction is interested about if we control our environment or we are controlled by the environment. (Trompenaars Cultural Dimensions - The 7 Dimensions of Culture., 2021).

Specifc vs. Diffuse.

* * * *

* * * *

(The Seven Dimensions of Culture: Understanding and Managing Cultural Differences., 2021) Keep it short Prioritize people’s goals Provide easy to understand directions Division between professional and personal life

Neutral vs. Emotion.

(The Seven Dimensions of Culture: Understanding and Managing Cultural Differences., 2021) Effectively manage emotions Positive body language Goal oriented Hesitance to express true emotions

hallga’tag

GLOBE

Global and Cultural Research

* * *

Achievement vs. Ascription.

(Cross-Cultural Communication online presentation., 2009) Acknowledge good achievement Only use titles when they are necessary Excellent role model Sequential Time

* * *

vs. Synchronous Time.

(The Seven Dimensions of Culture: Understanding and Managing Cultural Differences., 2021) Concentrate on completing one task at a time Be on time.

Establish explicit deadlines

Internal Direction

* * *

vs. External Direction.

(Cross-Cultural Communication online presentation., 2009) Allow room for improvements Set clear goals Engage in constructive conflict through honesty

The GLOBE Project is primarily concerned with collecting data through surveys in 62 countries across the world in order to determine how “cultural values are linked to organizational practices, leadership conceptions, society’s economic competitiveness, and the human condition of its people.” In conjunction with almost 500 academics, a large-scale study of cultural practices, leadership principles, and generic and interpersonal trust was conducted in 150 nations (GLOBE 2020 GLOBE Project., 2021).

34 35

6.09

5.23

Performance Orientation Future Orientation

5.44

5.22

Humane Orientation

In-group Collectivism

4.68

4.90

Institutional Collectivism

Gender Egalitarianism

3.23

3.94

2.69

Assertiveness

Uncertainty Avoidance

Power Distance

hallga’tag Global and Cultural Research

Important Individualism Masculinity Long Term Orientation Uncertainty Avoidance Performance Orientation Future Orientation Achievement Universalism

Less important Power Distance Indulgence Emotion External Direction Institutional Collectivism Gender Egalitarianism

Visual Cultural Profile

36 37

Decision Making Flowchart

Global and Cultural Research

07 Germany as Operating Environment

hallga’tag

38 39

Value System Health As of 2009, the German health care system is decentralized, with ambulatory care provided by private practice physicians and inpatient care provided by autonomous, primarily non-profit institutions.

Approximately 92% of the population is insured by a ‘Statutory Health Insurance’ plan, which offers a defined level of coverage through one of 1,100 governmental or private sickness funds. (Einleitung zum Ratgeber Gesetzliche Krankenkassen., 2021) Employee payments, tax deductions, and government subsidies are used to support standard insurance on a sliding scale based on income level. Higher-wage workers may pay a fee and opt-out of the basic plan in favor of ‘private’ insurance. Premiums are paid by employers and employees for the majority of the healthcare system.

Every employee pays around 7.5 percent of their pay into a public health insurance pool. The 7.5% contribution is matched by employers. This “all for one and one for all” approach to health care dates back to the Middle Ages when German tradesmen contributed to a single fund that was used to assist any of the group’s members who got ill or faced financial difficulties. Edwards, E., 2021)

Safe environment The German system for workplace safety and health is divided into two parts. It

includes state-run (federal and land level) safety and health programs, as well as independent accident insurance companies.

The state (at both the federal and land levels) enacts laws, as well as regulations and state board rules. The accident insurance organizations release their own accident prevention regulations after examining their needs and receiving permission from the Federal and State governments. The Joint German Health and Safety Strategy (GDA) was created by the Federal and Land (State) governments, as well as accident insurance companies, in order to maintain, enhance, and advance people’s safety and health at work through a standardized and consented safety and health strategy (Germany | Safety and health at work EU-OSHA.l, 2021).

Respect In Germany, hierarchy is recognized.

When it comes to workplace decisions, the chain of command is strictly observed.

When it comes to making decisions, defer to the immediate manager. If necessary, the manager will transfer your question to the next level of management, and so on. (Business Etiquette in Germany., 2021) Most German people respect rules and take regulations seriously. Walking on bike lanes, crossing the street when the light is red, or cutting in line in public are just a few examples of how you can gain attention for now following the rules. (Renouvel,

Organizational Structure

Bar Manager

Assistant

Lead Bartender Bartenders

hallga’tag

Store Manager

General Manager Waiters Servers

A., 2021) Also respecting private space and time are everyday standards for German people. Efficient workflow and productivity is expected in every work field.

Global and Cultural Research

Inclusion Despite the fact that Germany does not pay nearly as much attention to diversity issues as the United States, it is becoming more of a concern in recent years. This is due to the increasing focus on employment discrimination; the passage of the General Equal Treatment Act, as well as the discussions and debates that preceded it (Day, J., 2021). The demand for diversity and inclusion in Germany skyrocketed between 2015 and 2020, increasing by 200% due to online influence, as more individuals look for methods to improve their working lives. Berlin, Bavaria, Hessen, and North Rhine-Westphalia are among the regions with the most interest in these issues (3 in 5 German Employees Say Their Company Embraces Diversity, 2021).

Advocacy and Education The German education system also faces diversity issues, particularly, issues including children with disabilities. Many

parents do not want their children to learn in the same space as their disabled peers, despite the fact that more and more children are diagnosed with some sort of disabilities. Because education is a state-bystate affair, the federal government has limited ability to intervene (How Germany is failing disabled and special-needs students | DW | 11.03.2019, 2021).

Vision During the night, hallga’tag is the go to destination in Berlin. During the morning hallga’tag educates about safe drug usage while also accepting and respecting each customer.

40 41

HR Director Hiring Manager

Development Director

Marketing Director

Operations Manager

Marketing Associate

Director of hygiene and safety Facilities/Maintenance IT Cleaning Services

Accountant Development Associate

Mission Providing a safe environment for Berlin’s night owls to regenerate by offering them healthy food and beverages even during the most silent hours of the night.

Global and Cultural Research

hallga’tag

Organizational Culture Hallga’tag has a strong clan culture which refers to how an organization works as a large family or tribe, with individuals who share similar views and goals. Within the group, collaboration and consensus are strongly prized, while rivalry is minimized. Problem solving and group spirit is very important especially when unforeseen circumstances happen. There is a chance for people to join the venue after an intensive night out and we have to make sure everyone is safe in our environment.

This requires group effort and well trained communication skills. Another culture hallga’tag is defined by, is adhocracy culture which places high value on the ability to adapt to change. Employees that can be flexible in their approach and proactively adjust to changing conditions, goals, or industry standards are valued in an adhocracy culture. (Understanding the 4 Types of Organizational Culture | D’Youville Online., 2021) Customer service is one of the core capabilities that sets us aside. Taking care of customers with an adhocracy culture allows our audience to feel more comfortable and appreciated.

Social Responsibility Sustainability Berlin is overflowing with people. Over 80% of Berlin’s 3.7 million people live in rented apartments. However, the city’s allure to investors, a structural housing shortage, and the arrival of 350,000 residents in the previous decade have all contributed to soaring rental costs. Housing shortages and rising prices are hurting German cities that have been struck by hous-

ing scarcity. Although they keep building new houses in the northwestern district, the material prices have been increasing.

(Could housing shortages in Berlin and nationwide sway German voter choice?, 2021) Even though real estate prices in Berlin continue to climb gradually and gentrification transforms run-down areas into popular locations, Berlin nevertheless has unsettling patches of vacant land and abandoned buildings. (Schneider, E., 2021) The result of gentrification problems led hallga’tag to locate itself in abandoned buildings to reduce the pressure of demographic displacement. By following the ruin pub concept from Budapest, hallga’tag fights the real estate shortage problem and reuses buildings that otherwise would have been torn down. Decorations and furniture are sourced from second hand shops and donations. This not only saves money but allows us to give a second chance to preloved objects. The combination of different objects coming from all over the place will add to the ruin pub aesthetic.

In addition, our business has high standards for sustainability, and recycling culture. Food and beverages come from local markets and businesses in order to reduce our carbon footprint. Reusable equipment like utensils and cups is the standard at hallga’tag.

Food waste is one of the biggest yet easiest problems to change among other issues concerning sustainability. The more food waste we produce the more food itself is needed. In order to eliminate those chances, we manage our food portion sizes strictly and buy organic ingredients in order to recycle them. Organic food waste may be recycled and used to generate renewable energy. These wastes can also be sent to landfills and turned into organic fertilizers, which will help to nourish the soil. This, however, necessitates careful sifting to avoid contaminating the soil with non-biodegradable contaminants (Johnson, A., 2021).

42 43

Education The country has been developing educational and pedagogical media approaches to prevent drug usage on a social level.

(Bahr, D., & Dyckmans, M., 2021) The drug crisis in Berlin is the main focus for the mission of hallga’tag. Educating young people about drug usage and the long term effects of recreational drugs result in a positive change in the society. Besides providing a safe space, hallga’tag accommodates the lack of education on drug usage in the school system of Germany.

Hallga’tag’s Sustainability Model Hallga’tag’s sustainability model consists of:

ISR (International Social Responsibility Initiative) Hallga’tag combines advocating for sustainability, gentrification, and drug education in its core business model in order to serve it’s international social responsibility. By creating a successful combination of these values, hallga’tag’s business model aspires to motivate people from other countries to also create something that aims to tackle many issues in their society.

* * * * *

Space design consists only of second hand objects and furniture.

Tableware must be thrifted or has to be made out of reusable plastic or recyclable materials (RECUP).

Food is locally sourced. Partnership with local companies to reduce carbon footprint and support local businesses.

Beverages like tea and coffee have to be organic and fair trade.

Waste management has to be effective.

hallga’tag

Company Ethics Hallga’tag main priority when it comes to company ethics is safety and respect.

To ensure that all employees are well prepared for situations that harm the safety or disrespect the customer, we use training to avoid such situations. Safety of the customers always comes first and the protection of the environment is a secondary priority. Every aspect of what we do is situated around health, safety and sustainability. Each choice an employee makes has to be aligned with health, the safety of the employee and the customer and actions that keep our environment sustainable and as environmentally friendly as possible.

Global and Cultural Research

Employees For the store, hallga’tag employs local college students coming from diverse communities. Students who are eager to help and have high multiple skill sets and high ambitions. Other employees must be highly educated in their fields and have to have prior experiences. All employees must be fluent in English and German. More languages are preferred.

Management Due to our clan culture, hallga’tag’s management structure is flat and decentralized. Decisions are made in a team environment and decided by multiple people.

44 45 Always ask for feedback and be open to learning from past experiences.

IJV (International Joint Ventures)

Culture Sensitive CSR Communication Strategy

Partnering with a famous ruin pub from Budapest, Szimpla Kert, allows us to bring similar concepts to Berlin and support cross-cultural exchange.

*

Die Dicke Linda organic market located in Kreuzberg, Berlin has a variety of produce which are fresh and locally sourced.

*

To educate ourselves on drug usage and prevention, we are partnering with the Bundeszentrale für gesundheitliche Aufklärung (BZgA), a governmental agency.

VEB Orange is a local thrift store which sells not only clothing but furniture and household items.

* *

*

Respect working and resting hours of employees.

Prepare for meetings for efficiency.

Always ask for feedback and be open to learning from past experiences.

Main communication channels: text message & calls. Secondary channels: include email & mail.

Honesty and thoughtfulness in all situations.

Community Stakeholders Communication *

SirPlus offers products that are close to or past their expiration date, as well as mislabeled jars and deformed fruit and vegetables, all at up to 80% off.

*

RECUP is a coffee cup sharing system that an individual vendor, such as us, can apply for. We are then supplied by the specific cups and compensated by the original company behind Recup. This allows us to offer sustainable to-go options and reduces our own costs.

*

*

*

Respecting customers’ personal space while assisting them if needed.

Consent is the main priority when executing problem solving.

Communicating with the customer constantly is a main aspect of keeping the environment safe and healthy.

Patience and empathy towards troubled customers is standard at hallga’tag.

Employees must not take things personally from customers as they often face situations when the customers are under influence.

hallga’tag

Capitalist Economy

Western Society

Global and Cultural Research

09 Moral Philosophy Hypothesis Hallga’tag’s moral philosophy hypothesis is surrounding our ethics and local principles. Due to our respect to the German culture, all employees must be considerate of time and efficiency and have integrity over their work at all times. In addition to local values, employees at hallga’tag must

be human centered and act with empathy and attention to detail. As preparation and straightforwardness is common in the German business culture, we also put an emphasis on these values. Rules must be followed carefully during both supervised and unsupervised situations.

46 47 Macro Level Resources * *

* *

GDP per capita: $45,723.64 (“Germany - Place Explorer”, 2021) Key natural resources: Timber, natural gas, coal, lignite, uranium, iron ore, arable land, construction materials, potash, nickel, salt, and copper.

(Thomas, 2012) Political stability Germany is a democratic, federal parliamentary republic.

Dominant Moral Philosophy * * *

Effective and efficient work culture Respecting rules and regulations Individualism and idealism

Societal Moderators * * *

German Language Christianity Religious events, celebrations and holidays, Oktoberfest

Ethical/Unethical Societal Norms * * * *

Firm Specific Moderators * *

Strict and time conscious policies and business culture Social causes and liberal ideologies motivates profit

Individual Behavior * * * *

Goal oriented Time and environment conscious Respect regulations and rules Separates business from personal life

Sustainability Humanitarian society /liberalism Personal space Slow to show emotions

Global Strategy Development

Business 10 Strategy

hallga’tag

48 49 Mission Providing an inviting and safe space for Berlin’s night owls to regenerate by offering healthy bites & drinks, accommodated by soothing and rejuvenating vibesauras even during the most silent hours of the night.

Vision

Objectives * * * *

*

*

Creating a safe space for ravers and night owls to rejuvenate from a long night out.

Promote healthy living and self care through food, beverages and carefully crafted services Find deeper connection with customers through impeccable service and inviting atmosphere By the force of education, we aim to change the negative perceptions surrounding substance abuse and inspire safe and mindful substance usage.

After taking care of our people, we take care of our environment through our products and decor. Using sustainably and locally sourced organic ingredients while supporting local businesses.

As well as acquiring our furniture and decor from second hand shops.

Fighting against gentrification through our venue choice.

At night, hallga’tag is Berlin’s safe haven. During the day, hallga’tag invites for a coffee and empowers a safe drug usage through education and inclusion.

hallga’tag Global Strategy Development

Business Model Canvas

Key Partners Die Dicke Linda VEB Orange SirPlus Bundeszentrale für gesundheitliche Aufklärung (BZgA) Szimpla Kert RECUP Bonanza Coffee Roasters

50 51 Key Activities * * * * *

Providing a diverse list of healthy, organically sourced food and beverages.

Providing basic care to customers who are under the influence.

Safe space to relax or get sober.

Services that help customers relax or cure hangovers.

Selling coffee and pastry in the afternoon.

Resources * * * * *

Well trained employees.

Food and beverages.

Comfortable furniture and appropriate lighting.

Event organizers/speakers.

Marketing channels.

Value Proposition At hallga’tag, our customers experience self care on another level. By combining a soothing atmosphere with healthy rituals, and personal care activities, we round up Berlin’s definition of a successful night out. On top of all that, through the power of education, we aim to facilitate a safe and inclusive contact with enhancing substances.

Customer Relationships * * * * * *

Maintaining relationships through customer service and interaction.

Personalized care.

Phone class.

Social Media.

Website.

Word of mouth.

Channels * *

Person to person contact/Service.

Experiencing the venue - Taking

* * * *

pictures.

Showing up at the Die Dicke Linda market.

Social Media websites - Facebook, Instagram, Messenger, WhatsApp, LUCA. Phone calls.

Website.

Customer Segments The Lazy Cafe Goer, between 22-60 years old, mixed nationalities and genders with low to medium income level. People who like to visit places that are not just cheap but aesthetically pleasing and calming. Value high quality produce and sustainability.

The Intellectual Raver, ages between 16-32, mixed nationalities and genders with low income level. Individuals who live by the motto “life is short, work hard, play hard”, love to meet new people and interact with art. Appreciate sustainability and different subcultures.

Cost Structure * * * * * *

Goods resources (Beverage, food and other services) Human resources Maintenance Marketing Partnerships Construction and design (minimal cost)

Revenue Streams * * * *

Food and beverage sales Shisha and other services Brands collaborations/Feature display Event entrance fees

Global Strategy Development hallga’tag

11 Alternative Strategy A

52 53 In order to provide the most accurate comparison, we analyzed the main competitors including the option to return home. Since the concept of hallga’tag is to invite people to relax at our venue instead of going off the street or wandering at unsafe places, going home has similar values if not better than hallga’tag’s. The main reason why people with a safe and accepting home would not choose hallga’tag would be the extra cost they would spend, however the attractive environment and the ability to stay in the city while being able to relax can be a strong competitive edge for hallga’tag.

ve Assessment

hallga’tag

Hallga’tag is a one of a kind place to visit in Berlin, Germany. As a combination of a cafe and a non-alcoholic bar that invites its guests to join a self-care space after a long night out. While it offers snacks and non-alcoholic beverages, hallga’tag’s main focus lies on shared values, its hang-out spots and the educational that surrounds the drug culture of the capital. It’s a safe haven for the night owls of Berlin, an after-party clubhouse. Providing an inviting and safe space to regenerate and rejuvenate even during the most silent hours of the night.

Offering healthy food and beverages, as well as safety tools for unexpected occasions. Safe space for people who can’t return home after a night out. Late opening hours.

Primary - Generation Z and Y Secondary Generation X

Global Strategy Development

Less than 1% market share duo to our recent entry to the market.

Strong mission and vision. Projecting the main value of hallga’tag which is consumer experience. Selling the feeling and experience not the product. Encouraging learning and growth instead of shaming and discouraging.

Tea and coffee, fresh juices and healthy snacks. Shisha and other relaxing activities&services. Educational events. $ - $$ Store/Bar, Consumer products, Interactive offerings, Online services

54 55 Kaschk is a café-bar hybrid in the Scandinavian style that serves a variety of third-wave coffee and craft beers. Kaschk’s knowledgeable and experienced staff their customers to navigate through the extensive craft beer menu, which includes brews from Germany, Scandinavia, and beyond, while a collection of old-school shuffleboards in the basement will keep their customers entertained. People adore Kaschk because of its signature décor, which includes wood-heavy, cozy, and warm furniture that complements the laid-back mood and creates a beautiful, friendly ambiance in the heart of Mitte (“The Coolest Bars in Berlin, Germany”, 2021)..

Home, this is the place we all go to, the place where we all feel safe and can put ourselves to rest. After a long night out, the best feeling is to dress down and fall in bed to warm up under our soft blankets.

Having a cold refreshing bottle of water on the balcony after returning from the club on a summer night or having a cup of tea next to the fireplace after bar-hopping all evening in winter describes all the freedom and comfort that home has.

Coffee and alcohol is accessible anytime when open. Great atmosphere, appealing to different audiences. Located in the center of Berlin. International food and beverage options.

Free, don’t have to spend more money after the club. Feeling safe and familiar at your own space. The freedom of doing anything you want, no closing time.

Primary - Generation X and Y Secondary Baby boomers

Everyone

Distribution of club and bar revenues in Germany in 2019 was 1.29 billion Euros (“Club and bar revenue in Germany 2019 | Statista”, 2019). The general pricing of Kaschk is between $$ - $$$. Less than 1%.

N/A

Social media platforms. Primary channels are Facebook and Instagram (no website). Displaying the products and events.

Sharing customer experiences and engaging with them through their own lens.

N/A

Tea and coffee, alcoholic beverages such as beers, hard liquors and ciders. Pastry, lunch and side dishes.

All food and beverages found in one’s fridge. Unlimited water from tap. Bed to lay down and entertainment. Clothes to change and shower to get clean.

$$ - $$$

“free”

Store/Bar, Consumer products, Interactive offerings

Home

hallga’tag

hallga’tag

People centered, Safety and efficiency, Health motivated, Inclusivity, First/one of a kind or unique business concept, Late opening hours

Global Strategy Development

Not open for morning coffee audience, New concept

Opportunity for responsible individuals to seek help or just calm down after clubbing, therefore impacting the culture.

People who are not responsible might choose other places to go to. Governmental regulations, COVID-19

Kaschk

Returning Home

Social awareness, Understands it’s customers, Authenticity, Location, 2 main products

“Free”, Comfortable, Familiar, Trustworthy, Suitable for each individual, Freedom

Closes early (3am latest), Weak marketing/social presence

If the conditions at home is not suitable to return home, there is no other fixed place to go to after a long night. Parent’s restrictions, Embarrassment, Threat of neighbors, No food at home/Empty fridge

Opportunity for more alcohol consumption in case the customer is not responsible. Open for morning coffee audience.

Food delivery attracts more people since there is no extra effort needed to access the food. Streaming services are also accessible right away from the comfort of their sofa or bed.

COVID-19, Alcohol policies, Other bars with similar opening hours.

Individuals can’t get the help they need or are not able to ask for help.

56 57

Global Strategy Development

hallga’tag

Cyber Security failures allure to further economic and energy-based crises, similarly to how UK’s exit of the EU has an effect on Europe’s currency.

12 External SWOT

Now that we zoomed in on the industry and all neighboring markets from a macro, down to a micro-scale, this section covers the specific positioning of hallga’tag. It looks at the business’s specific strengths and weaknesses, but also what threats surround it and what opportunities might open up moving forward. Similar to before, this section zooms in on the external circumstances from a global to a regional perspective.

58 59 Global Risks In order to deeply understand global risks and how they pertain to hallga’tag, this section covers developments and risks in all pertinent areas. It discusses the effects of the pandemic in regards to political, financial, and production turmoil. In addition, consumption patterns are studied from a lens of supply shortages as well as Brexit. This political phenomenon also outlines additional political turmoil, which is further expanded upon by discussing the relationship between Europe and Russia due to its gas dependency as well as weapons of mass destruction as an imminent threat to the current world. Cyber Security failures allure to further economic and energy-based crises, similarly to how UK’s exit of the EU has an effect on Europe’s currency. Lastly, extreme weather as a direct result of climate change outlines an overall, global instability and arguably the most prominent risk of 2021. (McLennan, 2021)

Supply Shortages

Pandemic

Brexit & the EU

The human coronavirus disease, known as COVID-19, was first reported in December 2019 and was declared by the World Health Organization as a pandemic only 3 months later (Moore, 2021). As of now, the World Economic Forum calcified this pandemic as a “clear and present danger’ (Gordon, 2021). It’s direct effects can be identified through social unrest, political fragmentation and geopolitical tension.

On a more direct note, COVID-19 had the ability to shut down an entire society and freeze all operational activities. Depending on its outreach and the intensity of waves it floods the country with, such lock-downs can occur again. Here, it is important to note that such a pandemic can occur not only due to COVID-19. We saw that global infrastructure and our connectivity allows for such a virus to spread like wildfire. This means that any other occurring virus can

Britain officially split from the European Union in January 2021. Since then, it has affected its economy, as well as its foreign policies and politics. Even though its borders officially stay open, around 80% of the service sector experiences a dependency on European regulations. The Office of Budget Responsibility in the UK has estimated that this decreases Britain’s economic productivity by 4% (Mueller & Robins, 2020). As of now, this resulted in a shortage in the UK’s supermarkets due to a truck driver shortage. Even though the negative economic effects are limited to the UK as of now, it is important to note that those tables can turn fastly as new regulations are being formed every day.

The global pandemic disrupted many supply chains around the world. Big industrial giants were forced to shut down their sites as societies were sent into lock-down.

While the demand for certain aspects such as restaurants meals or spa services did die, the demand for other goods such as gym gear or printers exploded (Goodman, 2021).

This mismatch broke the system. While most production happens in one location, many items do depend on at least one part produced elsewhere. However, even when those factories stayed open, there were no shipping containers left to transport such items as they got stuck around the world in various harbors. This broken chain eventually hit basic demand areas such as shoes or food in Haiti (Goodman, 2021). As hallga’tag falls into the restaurant category, this is an important goal threat that needs to be accounted for.

Global Strategy Development

hallga’tag

In order to shift gas import to the United States, expensive and new technology is required.

Gas from Russia As of 2018, around 40% of the EU’s gas supply came from Russia (Popovic, 2020).

While this outlines a clear dependency on both sides, it is a very fragile relationship as geopolitical turmoil, such as the Crimean crisis in 2014, put it on ice. To be specific to hallga’tag’s region, 49% of Germany’s gas supply came from Russia in 2020 (“Russian gas dependence in Europe by country 2020”, 2021). On another note, this dependency is predicted to come to an end, as Europe’s long-term demand is expected to drop due to climate-change concerns.

In order to shift gas import to the United States, expensive and new technology is required. This presents one of the barriers for change. Needless to say, due to this rapid development in these geopolitical ties, extensive turmoil around this relationship is to be expected.

Extreme Weather Climate change has increased the number of disasters by a factor of 5 over the last 50 or so years. Besides reported deaths, weather, climate and water hazards accounted for 74% of all reported economic losses between 1970 and 2019 (United Nations, 2021). These disturbing numbers outline the increasingly dangerous impact of extreme weather due to climate change.

Hallga’tag not only needs to account and prepare for weather in Northern Germany, but has to take global economic disturbances due to this cause into account.

Digital Inequality & Cybersecurity Failure & IT infrastructure break down As the World Economic Forum Global Risk report 2021 points out, the failure of cybersecurity has to be on our radar within the coming years (McLennan et al., 2021).

It is predicted that business, government and household infrastructure measures are becoming obsolete based on the rapid development of cybercrime. For hallga’tag specifically, this threatens economic stability as it can lead to financial loss. In addition, this increases the barrier to entry as cybersecurity costs fall into individual business, as of 2021. Digital inequality, on the other hand, has been ranked as the 5th most critical short-term threat (McLennan et al., 2021, p.20). Specifically, this treath talks about the potential of the governments taking control of major social media platforms and with that controlling communication and indirectly acting upon their power by restricting internet access (McLennan et al., 2021, p. 35). This digital inequality mainly comes through unequal access to critical networks and technology. Again, this is something to keep in mind and mainly influences budgeting plans as the threat needs to be accounted for.

Weapons of Mass Destruction One of the most outstanding global threats of 2021 are weapons of mass destruction, such as the proliferation of nuclear weapons. In the beginning of Oc-

60 61 tober of 2021, a UN speaker warned that “The threat to use or actual use of nuclear weapons remains the primary existential military threat to humanity” (“Delegates Highlight Disarmament Crisis Marked by Proliferating Weapons of Mass Destruction, Illicit Small Arms Trade, as First Committee Continues Debate | Meetings Coverage and Press Releases”, 2021). This threat specifically influences the strategy of organizations such as NATO. The Arms Control, Disarmament, and WMD Non-proliferation Centre at NATO headquarters aims to strengthen dialogue among allies, as well as assess risks to define defense efforts (“Weapons of mass destruction”, 2021).

For hallga’tag, there is not much that can be done. However, it is crucial to keep this threat in mind so it does not hit by surprise.

Post-truth politics Post-truth is considered a phenomenon that buries objective facts which are replaced by aspects of the media that “appeal to emotion and personal beliefs.” (Keane, 2018). If you combine that with what has been observed during Brexit or Trump’s governing years, we can safe;y say that we have entered an era of post-truth politics.

As William Davies expressed already all the way back in 2016, we are experiencing an “oversupply of facts.” (Davies, 2016). What this means is that politics cannot be considered as reports but rather performances and have to be processed as such (Fridlund, 2020). For hallga’tag, this is an observation necessary to predict political turmoil and create space that processes information accordingly.

Global Opportunities Post-pandemic Momentum Restaurants and more specifically indoor-dining are met with a huge anticipation in the post-pandemic era. Whereas full service dining in the U.S. pre-COVID was estimated at 5.9 visits per month per consumer (broken down into 2.9 dine-in vsitis and 1 take out per month amongst others), surveys estimating post-COVID behavior predict a total of 9.3 visits per month (3.6 dine-in visits and 1.8 take outs) (Klein, 2021). This shows just how excited everyone is for things to go back to normal. This momentum is a great opportunity that can help kick-start hallga’tag’s journey in Berlin.

Cultural Exchange As former U.S. President Barack Obama said: “Simple exchanges can break down walls between us, for when people come together and speak to one another and share a common experience, then their common humanity is revealed.” (Club, 2016). This statement highlights the importance of cultural exchange. An increased global understanding as well as globalization in general present this as a supporting opportunity for hallga’tag, especially since this venue is trying to introduce a new, foreign feeling into a multicultural city.

Individuals are ignited and drawn to new perspectives on life and the aspects that it can teach them. This is a pertinent notion to understand in order to capitalize on the priority that this is receiving within society.

hallga’tag

Before the pandemic, two-thirds of German businesses said they still regularly used a fax machine.

Global Strategy Development

Blockchain Blockchain in of itself is known to decentralize monetary means and markets.

The financial sector is exploring digital underpinnings such as Bitcoin as new and cheaper means to inefficient payment methods (Korea Advanced Institute of Science and Technology (KAIST), 2021).

While mining has a negative environmental impact, IoT (the internet of things) and AI (artificial intelligence) could soon relax the flow of financial transactions. For hallga’tag, this means that the business should adapt and capitalize on Bitcoin and other forms of cryptocurrency. While investment should remain small (due to the unpredictability of the market) (Haar, 2021), it should certainly be offered as a form of payment.

4% CAGR Global Bar and Cafe Market

(“The Global Cafes and Bars Market is expected to grow by $ 52.54 bn during 2021-2025, progressing at a CAGR of almost 4% during the forecast period”, 2021)

The compound annual growth of the cafe and bar market is at an estimated 4%

for the time period of 2021-2025 (“Global Cafes and Bars Market 2021-2025”, 2021).

While one usually concludes a positive outlook at 5% plus, this number can still be seen as a very positive sign as we need to take the effects of the COVID-19 pandemic into consideration. Firstly, this number indicates growth to begin with as it is not in the negative. Secondly, it estimates the average growth of a single investment and this is the perspective that allows us to classify 4% as a rather positive outlook (FERNANDO, 2021). This indicates that it is a good time to pursue a business in this market and presents itself as a direct opportunity for hallga’tag.

Low but growing CCI The bar and nightclub seen within the United States is currently threatened by a low consumer confidence index (Thomas, 2021). Whereas the consumer confidence index measures how optimistic or pessimistic consumers are regarding their estimated financial situation (MCWHINNEY, 2021), it is worthy noting that Germany’s CCI is also relatively low (101.1 in August of 2021), especially when being compared to an index of 102.4 in january of 2011. How-

62 63 ever, it is most important to note that the CCI, regardless of its low position, has been steadily growing in Germany, which is noticeable when we compare it to an index of 98.89 in May of 2020 (“Monthly CCI Germany 2021”, 2021). Similarly to the industry’s CAGR, hallga’tag needs to acknowledge that it is low, yet activity growing which turns this trend into an opportunity.

National Risks To further understand external risks to hallga’tag, it is important to discuss those on a national level. Extreme weather portraits itself through recent flooding catastrophes in Germany as one of many natural disasters. The affiliation with Brexit as well as U.S. ties outline trade restrictions.

The lack of digitalization discusses technological rights. The recent election results, in addition, converse on the topic of nationalisms and corruption as an important risk factor. Legal protection in Germany can be seen as an opportunity, rather than a threat. Hence, this subsection can be found under national opportunities.

2021 Elections & Nationalism As Kate Connolly specifies for the Guardian in late September of 2021, the AfD, Germany’s far-right party, did lose its status as a main opponent as its seats drop by roughly 2% (Connolly, 2021). However, these election results alsp outline that the party secured 10.3% of the national votes, afterall. This presents a huge risk. Looking even more closely to the East of Germany, the party managed to secure 24% in the sub-state of Thuringia, 1.3% more than in 2017 (Connolly, 2021). Since hallga’tag positions itself very much opposite of this party, political risks, strikes and turmoil has to be accounted for. This indicates that employee training should not just include safety management of intoxicated customers but also de-escalation methods for political opponents.

Lack of Digitalization Before the pandemic, two-thirds of German businesses said they still regularly used a fax machine and only one in three German companies had a central digital strategy (To see Germany’s future, look at its cars, 2021). Germany schools use outdated computers (Delcker, 2021). This highlights just how far behind Germany is when it comes to digitalization. The pandemic exposed digital shortcomings that have been obvious for years. According to Merkel’s digital advisor, this is partially due to the decentralized political system that simply did not include an IT department in its creation. For us, this means that again, similarly to global cybersecurity and additional costs required by the digital age, it is on hallga’tag to accommodate for those shortcomings. Especially since trends such as blockchain become relevant, this gap of understanding and support structure in hallga’tag’s immediate surroundings present a massive threat.

Überschwemmung (engl.: Flooding) Climate change increased the chances of extreme rainfall by 1.2 to 9 times. This caused deadly floods in Western Europe in July of 2021, which killed 202 people (Dewan, 2021). This is a clear example of the effects that climate change has on our environment, which in turn endangers our lives. Even though countries such as Germany are not on the watch list of environmental disasters, its effect can be clearly felt. This threatens the lives of all citizens and businesses, including hallga’tag. The most important aspect to note here is that environmental harm does not only affect communities overseas, but just as much local areas. This is to be taken very seriously and is a risk and threat that calls for action beyond preparedness.

National Opportunity

hallga’tag

2021 Election & Change The centric-left social democratic party (SDP) won the 2021 elections in Germany with 206 seats in the federal diet. This is 5.2% more than in 2017 and the first time that the centre-right Christian Democratic Union (CDU) does not have the majority (“German elections 2021”, 2021). Whereas certain election results, such as the AfD numbers, are alarming, the majority is very promising. Hallga’tag politically aligns mostly with the Greens (118 seats, 14.8% share of votes) and second mostly with the winning party. Certain political turmoil that was expected can now be disregarded as the general direction is expected to support our direction more and more. This “new wind’ as Germas” call it, is a great national opportunity for hallga’tag to fit in.

Global Strategy Development

Cashless Germany has, to the surprise of many, never been cashless. Even a simple 5$ amount at the pharmacy required cash. The pandemic, however, pressed on cashless options more and more with the argument of being “fast” and “hygienic” (Heinrich, 2021). One company, Germany’s top-selling bakery Kamps, used this opportunity to increase engagement by offering a 3% “innovation discount” for customers willing to pay via card in June of 2020. WE clearly see that the consumer desires such payment options, including the usage of smartphones and watches. This, even though a slightly out-dated trend, is still an important opportunity for hallga’tag to keep in mind, especially looking back at the blockchain trend we have discussed.

64 65

A1 Business Climate Rating

Investment Magnet

The business environment of Germany can be described as very good. (“Country Risk: Germany”, 2021) According to abc-amega its “Corporate financial information is available and reliable. Debt collection is efficient. Institutional quality is very good. Intercompany transactions run smoothly in environments rated A1.” At the end of the day, this means that the external national environment is perfect for entry.

The factors mentioned all ensure opportunities that allow hallga’tag to thrive, one of the biggest reasons and opportunities behind choosing Germany.

Germany is Europe’s largest market and leader in the field of innovation. As the world’s number three exporter, right after the US and China, and due to its high productivity, excellent workforce, first-class infrastructure, competitive tax conditions, and high quality of life, it attracts a novel amount of global investors (“10 Reasons to Choose Germany”, 2021). It’s legal framework and supportive government programs make the German market the perfect place to invest. For hallga’tag, this means that we sit at the forefront of potential expansion and global growth. This creates the baseline for new venues and portraits a huge opportunity at hand.

Global Expansion and U.S. Relationship Since this report is looking at hallga’tag’s inclusion into a geographical location from an international perspective, it is important to highlight that its relations with the United States of America, and with that its opportunity to expand globally, are very strong. As the U.S. Department of State highlights: “Today, Germany is one of the United States’ closest and strongest Allies in Europe. U.S. relations with Germany are based on our mutual and vital relationship as friends, trading partners, and Allies.” (“U.S. Relations With Germany United States Department of State”, 2021).

Looking at hallga’tag’s position form a big picture, this aspect underlines future opportunities as well as potential safety nets.

$108 billion Trade w/ China Since 2016, China has been Germany’s biggest trading partner. In 1998, its trade was worth $16bn, which then exponentially grew to $180bn, over eleven times as much (To see Germany’s future, look at its cars, 2021). Similarly to Russia, this needs to be understood with a grain of salt. Geopolitical relations are not as strong as they used to be and a dependency and shift in that relationship can cause political turmoil in the coming years. However, it is pertinent to understand the continuous growth that this relationship has. In 2020 alone, both countries exchanged goods worth $258bn.

Ever since a few incidents have turned Chi-

The centric-left social democratic party won the 2021 elections in Germany.

hallga’tag

Berlin just declared that its rent cap is unconstitutional.

na into a “systemic competitor”, Europe and GErmany specifically have passed more and more laws that protect individual firms within the EU (Casey, 2021). The opportunity here does not lie within the trading relationship in itself, but the laws that surround this sector now. Such laws take the wind out of big monopoly’s sails and create a less dominated market that opens up the opportunity for more market share within smaller corporations and even restaurants, such as hallga’tag. EVen though this trading relationship focuses mostly on the car industry, the political shift that we are experiencing is clearly in favor of our situation. This geopolitical shift needs to be observed and could open itself up as a very handy opportunity in the near future.

Global Strategy Development

Innovation: German Thinking Ethos In the World Economic Forum’s Global Competitiveness Report of 2018, Germany ranked highest in the field of innovation.

Even though Germany’s past influences a perspective that is afraid of change and relies heavily on a systemic structure (Hasel, 2016), this does not apply to the world of entrepreneurship. The competitiveness index specifically describes the speed at which Germany is capable of adapting to new ideas, methods as well as products (Whiting, 2018). To conclude, this shows how open the country is to new concepts and feels and how it, therefore, portrays the perfect situation to infuse a foreign business model. When it comes to hallga’tag’s integration into the local culture, this ethos is the societal aspect that needs to be capitalized on.

Regional Risks To fully grasp hallga’tag’s environment, it is now pertinent to understand the trends and developments that pose a risk to hallga’tag on a regional, in this case Berlin-specific level. THe development of bank loans in relation to Berlin’s clubs outlines economic and fiscal policies that can become a threat if not dealt with appropriately. Berlin, as of now, does not face any currency instability. However, regional turmoil can be expected due to its recent gentrification developments. These risks are outlined in detail below.

Bank Loan Hesitancy towards Night Clubs German banks do not find any attraction in providing loans to nightclubs (Brause, Kaiser & Moynihan, 2019). Such business seems rather risky than promising. This presents a huge dilemma. After all, Berlin’s clubs attract around 13 million visitors each year, which brings a total annual revenue of $1.48bn (Bender, 2020).

While this justifies hallga’tag’s presence, its night club affiliation could prevent it from receiving and financial support and loans from local banks. This is a huge risk that needs to be accounted for. It underlines the importance of hallga’tag’s space design and how its focus on fighting gentrification as well as its second-hand interior design lay the groundwork for its existence. This local threat highlights how hallga’tag’s affiliation with Hungarian ruin pubs is not just conceptual but necessary for its survival.

66 67 Gentrification As Ruth Bender highlights in the Wall Street Journal at the beginning of 2021, Berlin just declared that its rent cap is unconstitutional. This puts an end to attempted stop of splurgin rent prices and will most certainly define its demographics in the coming years (Bender, 2021). Similarly to other big developing cities, artists and other creatives are drawn to spaces that are affordable to live. THe culture blossoms and attracts more people, which in turn raises prices of all aspects of life, which then again kills creativity if such gentrification is not stopped and in the long run, the area becomes unattractive again. Within this circle, Berlin is at the end of its gentrification fight, meaning that the coming years will bring richer customers with less cultural diversity. To put it concrete, hallga’tag’s customer base is moving out. This is a transition is local demographics that risks hallga’tag’s existences under its current concept and needs to be accounted for sooner than later.

Regional Opportunities Club Culture As outlined previously, the average Berlin club tourist generates a turnover of €205 a day, per person (Bender, 2020).

Even the COVID-19 pandemic could not slow down that growth. To strategically increase vaccinations around Germany, clubs offer free concerts, raves, and various DJ sets if you agree to get vaccinated on site (Fokuhl, 2021). This outlines that Berlin’s club scene could not even be stopped by one of the greatest global threats in human history, on the contrary, it was even used to support social development. This outlines the need for hallga’tag’s existence and shows the greatest local opportunity at hand.

hallga’tag

Strategic Partnerships Strategic partnerships outline a big part of hallga’tag’s local and international opportunities. One one hand, they function as a direct support of its supply. On the other hand, they function as partners that we can learn from and use as an external integration into the local community. They highlight our values and communicate what we stand for to the consumer. Our partnerships mainly focus on sustainable business practices and integrated supply.

it also opens a produce market around the corner from hallga’tag(“DIE DICKE LINDA”, 2021). One one hand, we use the weekend market to purchase all ingredients and supplies that we are using that week. Under the umbrella of a strategic partnership, we also have a food and drink stand as well as educational content in the form of a food stand on that market. For Die Dicke Linda, this partnership is not just built on mutual customer attraction and supply benefits, but even more so on the values that it represents. On a side note, Die Dicke Linda used to be the name of one of the most popular potato breeds in Germany.

Global Strategy Development

RECUP As outlined earlier, hallga’tag has a strategic partnership with RECUP, a business in Berlin that provides a sustainable cup sharing and recycling system. To outline its function, the consumer can choose a recycled, reusable cup for a deposit of €1. In return, they receive a discount on their drink.

They can then choose to leave the premises with the cup and return it at any participating vendor, as well as hallga’tag itself to receive their deposit back. This strategic partnership is a fundamental part of hallga’tag’s sustainability model and directly integrates the business in Berlin’s thriving green wave and its focus on environmental concerns.

Die Dicke Linda Die Dicke Linda (engl.: the fat Linda), is an organic supermarket that focuses on sustainable produce supply. Each weekend

International Joint Ventures Szimpla Kert Szimpla Kert is one of Budapest’s most famous bars and is a prime example of the ruin pub culture. The bar has decades of experience and knows the effects of its space design and concept from the inside out (“Szimpla”, 2021). Per-COVID, it had a partnership with Szimpla Kert in Berlin, its sister-club, if you will. However, due to the pandemic, the bar had to close its doors permanently(“Szimpla”, 2021). To directly pick up where that relationship ended, hallga’tag seeks to re-establish that partnership and work with the original bar from Budapest in a more attractive and sustainable fashion. Its directory is run by two individual owners, while revenue and expertise is shared both ways. This directly supports

68 69

the strategy and marketing of hallga’tag.

It is understood that the concept behind both businesses needs to be adjusted to the specific audience. However, as the origin of hallga’tag’s name reflects, the underlying culture that such a space promotes is unique and present in both parties.

13 Internal SWOT After looking at external threats and opportunities, we have to establish a stable and realistic internal strategy in order to make hallga’tag successful. By looking at internal strengths and external opportunities, we are able to pinpoint areas that need more development. We approached this analysis through the lens of our goals, mission and main objectives.

hallga’tag

Comparative Advantages

Key Success Factors *

Global Strategy Development

* * * * *

Providing a service not even the customer knew they needed.

Creating a safe place for the community.

Inclusivity without judgments Healthy is the new standard Low Capital Requirements Low Imports

Distinctive Competencies * * * *

Quality service, food, beverage and experience Taking care of the customers and giving them just what they need Unique atmosphere and business concept Low investment

Hallga’tag is a one of a kind service model which combines all aspects of healthy, modern living. Taking a regular bar and coffee business to the next level through customer service and care.

Weaknesses Due to its unique concept, hallga’tag has to heavily focus on its marketing. Governmental policies have to be understood before conducting any event. Non-traditional opening hours. Keeping everything that happens inside legal and strict. A new wave of COVID-19 might affect hallga’tag since it is an indoor space. * * * * * *

Low & Steady Barriers to Entry Low & Steady Level of Assistance High Competition High Volatility Low Profit vs. Sector Average Low Revenue per Employee

70 71

14 Strategy Combination Global Integrative Strategy Hallga’tag’s future expansion will be executed through a vertical integration, which means that the expansion will be acquired through another company that operates before us in the supply chain. The reason why hallga’tag is not interested in buying other companies at the same position of the supply chain, is because there is no other business that would fit under the value system that hallga’tag has established. Our goal is to make every step of the supply chain integrated with the values hallga’tag prioritizes the most. Healthy, sustainable, and safe.

In the future, buying businesses such as Die Dicke Linda, would help shape our supply chain to our business model and fit our sustainability restrictions better. Controlling what produce goes to the table and how we work with partners will enhance the quality of hallga’tag’s services. We chose vertical integration over horizontal integration strategy, because we want to control the whole supply chain of our business in order to make the least amount of impact on our environment as possible.

After we achieve that, we will be able to integrate horizontally.

Global Strategy Development

hallga’tag

Entry Strategy Alternatives - Operating Options

Global Corporate Strategy Hallga’tag’s main core value is focusing on the customer’s needs. By implementing the multidomestic strategy when expanding the business internationally, hallga’tag will be able to continue with that mission and serve the people at any location. Adjusting our services to meet local needs is extremely important. Selling different snacks to help customers rejuvenate from a long night will help hallga’tag to be easier to accept by locals. As an example, Japanese people have used Japanese umeboshi plums to cure hangovers for thousands of years now (Farrell, 2020). Serving local treats that help the customer at any location is the best way to integrate hallga’tag to any environment.

Those that offer unique items with great quality and modern style are the most successful market entrants in Germany. Germans are receptive to innovative high-tech items especially the ones from the United States. Multimedia, high-tech, and service industries all have a lot of potential. Certain agricultural goods provide intriguing export opportunities for American farmers. In many situations, quality and reliability matters more to German customers than price (“Germany - Market Entry Strategy”, 2021).

Entering as an independent, entirely owned business is the best way to have allover control and maximise revenue. Due to the daring nature of hallga’tag, there is a chance that stakeholders won’t enter our business right away.

Therefore, as an alternative, hallga’tag utilizes strategic alliances to enter the market. If conflicts arise with legal aspects of our company, hallga’tag will be partnering with already existing bars and coffee shops to combine our unique idea with their value propositions. This will not only benefit our easier entry to the market, but it will also allow the partner business to explore something new and generate more revenue.

Potential Strategic Alliances * * * *

Japanese people have used Japanese umeboshi plums to cure hangovers for thousands of years now

Casita Berlin - hidden coffee bar Bonanza Coffee Shop Klunkerkranich - outdoor bar with food and similar aesthetics as ruin pubs Refugio Café - cozy, inviting coffee bar

72 73

Moral Philosophy Hypothesis Hallga’tag’s moral philosophy hypothesis is surrounding our ethics and local principles. Due to our respect to the German culture, all employees must be considerate of time and efficiency and have integrity over their work at all times. In addition to local values, employees at hallga’tag must be human centered and act with empathy and attention to detail. As preparation and straightforwardness is common in the German business culture, we also put an emphasis on these values. Rules must be followed carefully during both supervised and unsupervised situations.

15 Internal Structure and Behavior

Business Operations

hallga’tag

Diagnosing their condition and evaluating their problem through verbal interaction is a necessary tool in this case, since the signs are not fully clear.

Decision Making Flowchart Similarly to the decision making flow chart presented previously, which was focusing on the general German business environment, at hallga’tag we also have a similar decision making process. To better understand some differences, however, we will go through each step with a possible real life example.

Let’s say there is a drunk customer entering our store. He is not loud or hard to talk to, he is just not feeling well and feels noxious. Our employees would recognize the problem immediately upon greeting the customer. Diagnosing their condition and evaluating their problem through verbal interaction is a necessary tool in this case, since the signs are not fully clear.

If the customer is unable to speak, it is considered a big problem, however, if the customer is able to speak, it is considered a small problem. If it is a big problem, the employee must help him get whatever he needs at the moment and try to find the closest safe space for him to sit down. After that the employee must inform the respective person for further help. If it is a small problem, the employee should take him to the designated area where he can mind his own business. While taking care of the customer in both situations, the employee must check in with him to make sure the service provided is being useful. If the solution implemented did not satisfy the customer, the employee should test other solutions. After successfully meeting the customer’s needs, the employee should reflect on the decision made.

Recognize the problem Diagnose it Evaluate the problem If big..

..then consult with the respective person If small.. ..then list solutions Make a decision Implement the solution Collect feedback Implement new solution if necessary Feedback Again Reflect

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Internal Communication Strategy Canvas Channels Email (Google Workspace) Google Calendar (Google Workspace) Slack Airtable Canva Internal and external members meeting

Expectations and Behaviors Honest and clear communication is expected from all employees. Assertive instructions should not be taken personally but should be evaluated and taken into consideration from all employees equally. Respecting each other’s opinion while also aiming for the best possible outcome is crucial to all team members. Employees look at each employee as a teammate. We work collaboratively and always watch out for opportunities to help each other with their tasks if needed.

Values and Basic Rules * * * * * * * * * *

Human connections Be on time Prioritize safety Clear and direct communication Quality work Respect for all employees Sustainability Strive for the best Take responsibility Integrity

Intellectual Capital

hallga’tag

“The value of a company’s employee knowledge, skills, business training, or any proprietary information that may provide the company with a competitive advantage.”

Intellectual property, the more tangible end-product of intellectual capital, also known as IP, refers to any creations of the mind. IP and products are a substantial requirement for business smailry to physical resources. This section, therefore, examines hallga’tag’s demand and needs of intellectual resources, and how to obtain and secure them. James Chen defined intellectual capital as “the value of a company’s employee knowledge, skills, business training, or any proprietary information that may provide the company with a competitive advantage.” (Chen, 2021).

Human Capital

Business Operations

The human capital of hallga’tag is defined by its employees, their knowledge, experiences, and expertise that they bring to the table. On one hand, hallga’tag employs local college students, often from

Resource Needs As

76 77 an international and diverse background.

Their unique experiences and human understanding allows them to understand and empathize with our average customer.

Another aspect to acknowledge is that our employees overlap with our target audience. In a business that focuses on customers needs and likes to blend the support we offer with who we are, this is a crucial strategic step. To expand and grow our human capital, hallga’tag has a unique training program for every employee. Our customers and the specific circumstances that we like to interact with them in require certain health and physiological training, which is provided in the onboarding process. This is how we secure and expand hallga’tag’s human capital.

Relationship Capital The relationship capital of a business can be seen as the networking position it has. This aspect focuses on shareholders, suppliers, customers, and employees. While hallga’tag is privately owned, we consider most of our stakeholders our partners. For example Die Dicke Linda is not just our supplier. We support their business, pair our customer interactions and attend each other’s events and businesses. We learn from them. They learn from us. Our transparent approach fueled by honesty is what allows us to capitalize on our relationship capital and build it in a way where it bleeds into our human capital. Another big aspect here is our partnership with Szimpla Kert. This is not just an economic partnership, but even more so a brotherhood that learns and grows from each other. While our individual interactions and campaign are aligned with two different national audiences, the trend behind it and the mission go hand-in-hand.

Through international joint ventures and strategic alliances, we grow our relationship capital that eventually, since Berlin is such an investor magnet, can be shared amongst various shareholders once expanded.

Structural Capital Organizational culture, our beliefs, our mission, as well as company policies build the ground for our structural capital. The overall objective of intellectual capital is to transform any human or employee capital into structural capital (Edvinsson, 1997).

In an ideal world, those two aspects go hand-in-hand. Human capital at any point should be aligned with hallga’tag’s vision and mission upon entry. Eventually, those two aspects should become one and feed off of each other. Overall, hallga’tag’s structural capital is very strong. This is also one of our competitive advantages. We focus on customer’s needs, through inclusion, education, and no judgment. This applies to our employees just as much. Hence, our organizational culture overalls with our employee values and beliefs, as well as our customer’s. The alignment and interwoven attachment of all aspects concludes that hallga’tag’s intellectual capital is important, in a good position, and if any, could grow in the aspects of external relationships. Since word of mouth is one of our main communication channels as mentioned before, these strategic objectives moving forward align.

e 16 ssessment

Staffing Orientation Plan

hallga’tag

Hallga’tag has a very regional approach to our staffing orientation approach. Since our underlying objective and mission is to support the customer’s needs, an understanding and knowledge on a personal and empathetic level is required. To spread our regional understanding and ensure alignment, certain rewards and evaluation standards are expanded from small to big, inside out, regional to global. While we acknowledge that standards vary regionally across the world, a unified understanding is required for this business. For us, this is one way to internally spread our values and strengthen our organizational culture.

Business Operations

Compensation Example Looking at the compensation for expatriates helps us understand the differences and similarities that we need to account for from a human resource perspective. While we like to employ regional standards, specific monetary compensation does always need to account for COLA (Cost of Living Allowance/Adjustment). These can be seen in the following model.

*

Additional costs do not included tax differential, health insurance, placement services for partners, moving expenses, home sale, pre-departure onboarding training, safety personnel, insurance, and security.

78 79 Ethnocentric

Polycentric

Regiocentric

Global

International

Multidomestic

Regional

Transnational

Expatriates used for very few, key positions, origin and training focus

Locals drive the business, and take over key positions after training

Regional individuals drive strategic positions to ensure integration and alignment; used regionally

Any location is supported; the deciding factor i expertise and motivation

To ensure appropriate integration: local standards are applied

Local standards apply

Local standards apply; not regional distinction made

Globally integrated

High at home; low in subsidiaries

Depending on level of position and training received

Based on regional objectives and successful integration

Based on level of expertise, contributions and worldwide objectives

Berlin

Budapest

Base Salary (Gross Income before taxes) + COLA

€29k (Average bar manager salary in Germany, 2021)

€21K Restaurant Manager (Restaurant manager average salary in Budapest, 2021) - €6K Bartender (ERI, 2021) (after currency conversion)

Relocation Allowance (20%)

-

€2.700

Housing Allowance (20%)

-

€2.700

Annual Transportation Costs of a Family of Four

-

€200 (BVG, 2021)

Two Trips per Year Home for Four

-

€600 (Lufthansa, 2021)

Components for Expat Bar Manager

Business Operations

hallga’tag

17 Operational Model Now that we have analyzed and assessed all risks and opportunities surrounding internal integration and the bridging of culture on an organizational level, this model summarizes how hallga’tags strategy takes place on a daily basis.

Therefore we can move on to the physical strategy of how hallga’tag looks like.

Value Delivery Chain * * * *

Sort out supply and choose the best quality ingredients Process beverages and food and deliver the best products Offering customer service and guidance at our location Engage customers through live events

Suppliers

Locations

* * * * *

Berlin hosts all of our vendors and partners for all parts the operation processes. Companies like VEB orange, Die Dicke Linda or RECUP are all local and will operate within the same city as hallga’tag is located at. Raw materials will be processed at Hallga’tag’s location in Berlin near the Kreuzberg area.

Beverages supplier partners Food supplier partners Furniture supplier partners Other service vendors (shisha) Event organizers

Value Proposition Our guests at hallga’tag get to experience self-care on a whole new level.

We’ve rounded together Berlin’s concept of a great night out by mixing a calming ambiance with healthy habits and personal care activities.

Organization

Information

Main positions:

* *

* * * * * * * * * * * *

CEO Store manager HR manager Marketing manager Development manager Operation manager Safety manager Senior and Junior chefs Senior and Junior baristas Servers Dishwashers Cleaners

Hallga’tag respects each employee no matter their position, but it has a hierarchical and teamwork centered structure.

Each member has to constantly make sure that the delivery chain is met and therefore they not only focus on their own tasks but also help each other out if necessary. All employees should utilize the company’s decision making flowchart and access any situation independently.

* * * *

HR Training methods Supplier records (order history, receipts, etc.)

Event marketing and development Communication strategies First Aid training Employee profiles

Management System The CEO and upper level managers are in charge of the decision making process.

Senior employees are required to lead the team and maintain smooth operations each day. Meetings are held for all members, however, the frequency may vary depending on their positions. Food and beverage controlling positions require daily meetings in order to discuss that day’s performance. Senior employees may meet weekly to prepare for the upcoming challenges and duties. The CEO and upper level managers meet monthly to discuss any external changes or internal threats.

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hallga’tag

The Hallga’tag Experience When one first enters hallga’tag, the experience to expect for the rest of the night immediately translates. Immersive atmospheres, calming sounds and refreshing smells welcome the guest already at the front door. On top of our services, the guest can explore multiple experiences at hallga’tag, such as live music, themed rooms and fun stations as well as private spaces for groups. On the first floor one cannnot find any doors dividing the rooms.

Everything is connected to each other to enable not just shared spaces but shared experiences. On the rooftop, one gets to watch the stars with people from all around the world, while also being able to isolate from the external irritations in our private rooms. For the ultimate comfort, we offer our storage room at our reception to keep guest valuables in a safe place during their stay. Grab a cup of tea and join us for the ultimate post-party experience!

Reception As soon as one enters hallga’tag, they are greeted by our employees who help guests to orient themselves in our space as well as keep their valuables safe until they wish to have them back.

Venue and Experience

Dry Bars & Kitchen Hallga’tag prepares delicious and healthy foods for everyone at any point of their stay. Our pro chefs accommodate hungry customers while our senior baristas serve refreshing smoothies and teas. If you want to have extra relaxation, ask for the mint lemon-grass shisha!

Themed Rooms Hallga’tag offers something for everybody. Our themed rooms are named after Hungarian words which refers to the experiences our customers have. “Zene” means music, which implies that the customers experience live concerts and events there.

“Feny” means light, indicating the light projection shows we play all night. “Pipa” means pipe, which refers to the only room where you can smoke shisha. “Alkoto” means creator and “Tarsas” social, and they are both created to serve the inner child we all have deep inside of us. These rooms let you explore sensory play, art and games,.

One can select their favorite board games to play with. Each room has different themes reflected through lighting, odors and decorations.

Outdoor Garden If you need some fresh air, come swing with us on our handmade swings and explore our seasonal garden!

Bathrooms Each bathroom contains amenity kits that help our guests to refresh and become comfortable again after a long night out.

We have designated vomiting areas as well as sanitary stations to assist our clients the best we can. We also placed an emergency bathroom at the entrance for faster assistance.

6 Private Rooms Our private rooms on the second floor can be booked in advance for big or small groups to enjoy some private conversations without any distractions.

Glass Skylight A glass window placed in the middle of our rooftop let’s natural light into the “Kozpont” while dividing the space between the private rooms and the stage.

18 Expe

82 83 First Floor

erience Design

Rooftop

Venue and Experience hallga’tag

19 Venue Design

Rooftop

84 85

PIPA Room

Venue and Experience

Outdoor Garden

hallga’tag

86 87

Bathroom Amenities

Venue and Experience

Kozpont and Dry Bar

hallga’tag

88 89

20Digest Digest aims to summarize this report into a short, digestible read. If you are unable to read the full report, then this is the right place for you.

This International Ventures project was an opportunity for us to explore international management concepts through research, critical thinking, and creative problem solving. We were asked to come up with an international business concept under the categories of Dining or Entertainment. By applying cultural integration strategies we learned how to adapt familiar ideas in unfamiliar environments.

Here, we will share our specific proposal with you, and to dig into the nuanced cultural environment that transformed an idea into a solidified plan.

We will introduce hallga’tag, its reason for existence, its mission and vision, moving on to external and internal, global and regional threats and opportunities, how that translates into its strategy, and lastly, specific business operations and designs.

hallga’tag Digest

The big idea derived from a personal niche opportunity that we had identified during my summers in the capital of Germany, Berlin. Then we decided to combine our ideas and venture gaps with the Hungarian cultural heritage.

Our proposed venue is a combination of a cafe and non-alcoholic bar that invites its guests to join a self-care space after a wild night out, located right in the heart of Berlin. With that, we aim to fight 4 important battles in Germany, climate justice, gentrification, mental health, and drug education.

By merging German business innovation and the Hungarian pub experience, we believe that hallga’tag is a solution to improve the safety of Berlin’s party scene through an inclusive and reflective experience for everyone. Our comfortable space offers a curated shelter for the night owls of Berlin to regenerate after a long night out with healthy snacks or a cup of tea.

During the morning, hallga’tag invites the consumer to enjoy a cup of coffee and educates the community on safe drug usage through events.

Berlin is a multicultural city with a fascinating nightlife housing over 400 nightclubs and venues that makes 24-hour partying the norm. It is often called the techno capital, making it stand out from any other places in the world. This culture, consequently carries a drug affiliation, as clubbers often use them to enhance their experiences. While detrimental consequences have increased, this issue has gained public attention and governmental support.

For someone who has never experienced a

night out in Berlin, this information could sound somewhat concerning. However, due to Berlin’s inclusive, transparent nature and emphasis on safe drug and alcohol usage, we identified a need for a business that focuses not only on contributing to the normalization and education regarding safe drug use, but furthermore, on the self-care aspects of responsible partying.

Now that we have an overview of what hallga’tag is, let’s look at global, national, and regional factors that influence its existence. While the COVID-19 pandemic has put a stop to the festival and club scene around the world, raving has been “a huge part of the city’s identity” (Dov, Y. ,2020) that gained attraction and dominance throughout the years. With that hallga’tag’s audience is growing and developing further (At Europe’s Illegal Parties, the Virus Is the Last Thing on Anyone’s Mind, 2020).

As we push for an independent and educated consumer, we need to acknowledge the global shift and change of mindset towards decriminalization measurements.

Portugal, as the closest successful European example, has shown us that inclusive policies reduce overdosage, infection rates as well as crime (Ferreira, S., 2021). Looking even across the pond, New Zealand is the world’s first to fully legalize drug checking this month (McClure, 2021). Taking the new 2021 election result in Germany into consideration, we see this exact shift as the government currently proposes to legalize recreational marijuana use (Jaeger, 2021).

This undeniable cultural development, regardless of its legal context, requires the inclusivity that hallga’tag stands for, not to promote drugs but safety.

90 91 Within recent years, Berlin has become one of the world’s “sustainable congress metropolis” (Green Berlin ,2021) and that does not only translate to our limited food portions but it determines our partners, such as RECUP. Recup is a coffee cup sharing system that works with over 1000 venues in Berlin that allows you to choose and trade-in reusable cups at any [participating venue in Berlin.

While Covid-19 did hit the German economy just as hard as it did globally, certain responses have been rather thoughtthrough. The government has a program called “Kurzarbeit”, through which it pays up to 60% of an employee’s salary (Kurzarbeit: Germany’s Short-Time Work Benefit., 2021). The usually very strict program qualifications were loosened in order to support more businesses. Another restaurant sub-trend to note is the widely spread Luca App, an app that uses GPS to contact trace consumers that visited the same venue at the same time (Luca app: How the digital contact tracing works., 2021). While this pandemic destroyed economic opportunities, Germany has strict protective measurements that now allow the industry to gain prosperous momentum.

Gentrification in of itself describes the process when cheap, urban housing is being renovated and restored due to demand and with that rent and affordability go out the window (Gentrifica-tion Explained | Urban Displacement Proj-ect., 2021). This complex development causes extreme public out-cry in Berlin to this day. Our ruin pub culture directly supports this local movement as it utilizes existing but abandoned spaces too expensive to renovate.

This connection is not just political but also necessary as the risky nature of night clubs causes German banks to be more and more hesitant to provide loans to anything night-club affiliated (Brause, Kaiser & Moynihan, 2019).

hallga’tag

Hallga’tag is not just limited and propelled by greater environmental trends but also by the human response of its immediate community. To identify its strategic position, we need to understand who we are serving and who we are up against.

Digest

Our nighttime audience is defined by the typical party-goer. Within this generation, relationships are formed through genuine behavior and open approaches.

While self-care is often dangerously associated with temporary highs and immediate gratifications (Tang, A., 2021), it fits hallga’tag’s adapted profile through a sustainable lens. In addition, we cannot forget the indirect “older” party-goer who tends to refrain from alcohol and is often on the search for like-minded people and motivated by music. This specific group is also expanded upon through hallga’tag’s daytime activities. Cafe Goers tend to be older in age and enjoy sustainable, high-quality products.

As this market profile shows, being situated in Germany places hallga’tag at the forefront of potential expansion and global growth. Its competitive edge however, centers around the uniqueness of our model.

As we continued to look into the local market, we determined that there is a limited direct competition to hallga’tag. Similar venues have defining differences in their offerings and opening hours. Just like many big cities, Berlin is indeed filled with coffee shops and healthy bars where customers can turn to any time of the day…but in the early morning hours, hallga’tag is the go to.

That being said, we are threatened by replacement competitors such as fast food chains or the consumer’s own home. After a long night out, the ultimate and free option is to go home. You have your own snacks, your own tea, and your own sofa.

Returning home also means freedom to do anything...but is it really, anything?

Quiet hours or flatmates might prevent consumers from returning home with their friends. The individual might not have specific ingredients and would rather be served. Home can also be lonely and it misses reflection initiatives, support and the ambience that hallga’tag has. At the end of the day, each household is different and we are here to serve all.

Now that we understand external risks and opportunities, our target market and what competition means for us, we can summarize that we exceed through our one-of-a-kind business model that not just introduces a solution to a need but that combines all aspects of healthy, modern living.

To ensure a full fit, we also looked at the cultural variables of our host country.

We determined that German people are efficiency driven, assertive, individualistic and have a long term orientation in business settings. These behaviors are shown through various business etiquettes that they practice on a daily basis.

To further understand the local environment, we used several tools to conduct our cultural analysis. Through ​​Trompenaars Cultural Dimensions, we determined that Germans prefer universalism, individ-

92 93

ualism, being specific, neutral in emotion, achievement oriented, sequential timing, and internal directions. Through the GLOBE project we also determined that they are high in Performance Orientation, Humane Orientation, and In-group Collectivism.

on immediate problem solving and prioritize the individual in question. Let’s say if a drunk customer enters hallga’tag, the employee should recognize a problem as soon as they greet the customer. After that, they implement their training and prioritize the customer’s health.

Our research on cultural variables corroborated our vision for our organizational structure. Since hallga’tag heavily focuses on its customers and approaches everything with human centric strategy, it is important to have a flat structure, meaning we work in teams that are equally important in order to provide the best customer service.

Hallga’tag is driven by integrity and transparency. This means that future expansions are executed through a vertical integration. As we already closely work with our partners in the supply chain, it would only be organic to acquire businesses that operate before and after us in order to strengthen how we deliver our value to the customer.

Hallga’tag’s core is determined by the customer’s needs. Our employees overlap with our target audience. This is pertinent in order to understand the customer, niche cultural nuances and the applicable communication that defines our mission. With that, not just our staffing orientation but our overall corporate strategy, is regiocentric. We hire locals to drive strategic alignments and apply overall local standards.

When expanding internationally, this allows us to integrate our mission wherever we settle.

With this approach, our human capital is defined by an unmatched expertise.

By simply merging our employees with our target audience, we understand the customer’s needs from the inside out. In

As our context demands, all employees are expected to be considerate of time and efficiency and have integrity over their work at all times. As stated, our priority is the customer and their health. Sustainability becomes secondary if it interferes with our customer service. We expect our employees to respect rules during both supervised and unsupervised situations and act with empathy and attention to detail.

The human centered aspect leads us to prioritize safety and the customers wellbeing which we make possible through the products we sell as well as several experience design elements. We use education to bring people together and learn about issues that matter. Through our sourcing and production process we reflect sustainable practices and hope to help make our environment better.

Just as our moral philosophy implies, the decision making process has to focus

hallga’tag Digest

combination with our close partners we are able to transform our employee capital into structural capital as we apply the same values, and with that, expectations to our own.

Our operational model is entirely Berlin specific. Some of our suppliers include markets such as Die Dicke Linda, or previously mentioned, RECUP, as well as second-hand stores like VEB orange, where we get our furniture. This concept derives from our sister-bar Szimpla Kert, the best known ruin pub located in Budapest. Our interior and experience is based on the atmosphere they have created.

When you first enter hallga’tag, our experience immediately translates. It is a very immersive atmosphere that has calming sounds and refreshing smells. We offer multiple different experiences such as live music, themed group and private rooms and “sensory” stations. Our themed rooms are named after Hungarian words that summarize what to expect. For example, “Zene’’ means music, so if you still feel a little bit more active. On the first floor, there are also no doors. Everything is connected to each other to enable not just shared spaces but shared experiences. On our rooftop, you can watch the stars with friends or be more isolated in our private rooms. As we all know, fresh air is always nice, and for that we have palette swings in the garden. For the ultimate comfort and safety, we have a wardrobe and emergency bathroom at the front door.

To conclude, hallga’tag is a concept venue that expands the traditional business model in order to serve the emerging customer’s need for post-party reflection and self-care. As an unanswered need, it limits hallga’tag’s competition and elevates its competitive edge. To accommodate the raging trend of raving and drug usage, it focuses on education to deliver its value. In addition, it fights for climate justice and against gentrification through its integrated supply chain and international ruin-pub influence. This not only manages fiscal dependencies but it integrates what the local customer cares about.

hallga’tag turns a party into self-care.

hallga’tag

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