The direct translation of the name was adopted for use in the official breed registry; however, at the conclusion of World War I, it was believed that the inclusion of the word “German” would harm the breed’s popularity, due to the anti-German sentiment of the era. The breed was officially renamed by the UK Kennel Club to “Alsatian Wolf Dog” which was also adopted by many other international kennel clubs. Eventually, the appendage “wolf dog” was dropped. The name Alsatian remained for five decades, until 1977, when successful campaigns by dog enthusiasts pressured the British kennel clubs to allow the breed to be registered again as German Shepherd Dogs.

To combat these differences, the Phylax Society was formed in 1891 with the intention of creating standardised dog breeds in Germany. The society disbanded after only three years due to an ongoing, internal conflict regarding the traits that the society should promote; some members believed dogs should be bred solely for working purposes, while others believed dogs also should be bred for appearance. While unsuccessful in their goal, the Phylax Society had inspired people to pursue standardising dog breeds independently.

Max von Stephanitz, an ex-cavalry captain and former student of the Berlin Veterinary College, was one such ex-member. He believed strongly that dogs should be bred for working.

Source: http://en.wikipedia.org/wiki/German_Shepherd