Market Expansion for Stationery Products

This assignment focuses on analyzing the feasibility of expanding a stationery business into the German and Belgian markets. It requires conducting thorough market research, examining relevant data related to these countries' stationery industries, and providing recommendations for potential expansion strategies. The analysis should consider factors such as market size, consumer demand, competition, and regulatory environments.

ANALYSING DATA

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Brief overview of the wholesale stationery market in Germany:...........................................1
TASK 2............................................................................................................................................2
Evaluating annual per capita spending on writing and drawing material:.............................2
TASK 3............................................................................................................................................3
a). Evaluation of various figure of total sales:........................................................................3
b). Mixed Pie Chart................................................................................................................4
C). Presenting correlation co-efficient through scatter graph:...............................................4
d). Forecasting of sales:..........................................................................................................5
TASK 4............................................................................................................................................5
a). Pros and cons evaluation...................................................................................................5
b). Defining international standards with which Donald Duque requires to comply:............6
TASK 5............................................................................................................................................6
a). Computing a monthly cost of 30 year repayment mortgage:............................................6
b. Re-calculating monthly cost assuming that the interest is applied to the loan every month7
TASK 6............................................................................................................................................7
TASK 7............................................................................................................................................8
a). Advice for improvement:..................................................................................................8
b) Descriptive statistics...........................................................................................................9
TASK 8..........................................................................................................................................11
Summary of the report:.........................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Appendix........................................................................................................................................14

INTRODUCTION
This is the time where the need of data analysing is increasing. As, this can be said that if
the company wants to make sustainable development, then the manager of the company needs to
adopt various statistical and financial tools in order to analyse the data in an effective manner.
Because everyone knows that the data analysis is the most crucial term which finally assists the
company in evaluating trends and henceforth supports in suitable decision making. This report is
relied upon the case study of Donald Duque which is a small company in the Northern France.
Duque lay out higher concentration on the wholesale trade instead of selling stationery items to
the public (Benth and et.al., 2014). Company's products consist of printer, general office supplies
furniture which are used for commercial purposes, drawing material etc. Under this report, the
brief overview of the wholesale stationery market of Germany is used. This report reflects the
manner under which graphical reflection assist in summarized data set in an effective manner.
TASK 1
Brief overview of the wholesale stationery market in Germany:
Germany is the developed nation which is situated in Europe and has strong economy.
However, there are various organisations in Germany which renders customers quality in the
stationery market that makes the country recognised in the international market. There are so
many stationery companies which have strong brands, namely Staedtler, Stadbilo, Lino etc.
Illustration 1: Stationery market in Germany
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From the above mentioned chart, this can be said that during the year 2002, crucial
reduction has evaluated in the number of office supplies and the stationary market. Henceforth,
focus is likewise laid down by that was lowering as compared to earlier time-frame. In addition
to this, due to more suppliers which are ultimately helps to get the desired level in the best
effective manner (Cameron and Trivedi, 2013). Moreover, there are some other changes which
were likewise evaluated in this industry after coming in the market by the specialist retailers.
These are the retailers who offer great quality of products along with their own product brand
(Schabenberger and Gotway, 2017). This has been observed that the goods of the company are
available 24 hours via online means. Henceforth, by stimulating online presence, Donald Duque
could gain success.
TASK 2
Evaluating annual per capita spending on writing and drawing material:
Country
Per capita
(€)
Switzerland 35.5
Germany 35.2
Austria 35
France 28.3
Italy 18.6
Spain 8.9
Poland 8.5
(Illustration 2: Per Capita spending on drawing and writing material)
(MGCC Perspective. 2016)
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By way of doing research, this can be evaluated that various countries' people spends
diverse amount for their clients on drawing and writing material. Various European Nations like
Austria, Bulgaria, Belgium, Cyprus, Denmark and Germany grabbed 2nd position and France
attained fourth position. Although, stationery product varieties are maintained or controlled by
the supermarkets which has strongly incorporated for securing the most leading position. (Gunter
and Önder, 2015).
In addition to this, considerable transformation in the market has been determined after
implementing online marketing or digitalisation. Online servicing of products or services renders
high level of convenience to the consumers. Henceforth, this is the main aim due to which
existing consumers buy goods through online instead of using offline outlets. Apart from that,
high level of development has been evaluated in the mail and online ordering business.
Moreover, in Germany, Industry has likewise initiated focus on strengthening or enhancing their
market shares. (Hsiao, 2014).
This chart reflects yearly spending for the writing and drawing material per capita in the
seven European nations.
TASK 3
a). Evaluation of various figure of total sales:
Refer appendix 1
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For identifying the total sales, revenue of entire transactions covers in the products
portfolio have been added. Additionally, for reflecting appropriate view of sales trends as
comparison of current year has likewise done along with the last year. In 2015, 2016 and 2017,
total sales are contributed for €165000, €182000 & €178000 proportionately. This is evaluated
that sales revenue of the cited company is increased by 10.30% during 2016. On the other hand,
this can be said that in 2017, there was a declined trend (-2.20) which has evaluated in the sales
revenue of Donald Duque. The demand in the year 2017 decreased due to the decreasing sales
trend. Henceforth, for an optimal sales revenue and earning, business unit is required to emerge
strong strategic framework which could enhance demand for both printer and office material
(Lindman and Söderholm, 2012).
b). Mixed Pie Chart
From above mentioned pie chart, this can be said that Duque's low cost printers
contributed least percentage in both 2016 and 2017. On the other hand, printer cartridges
accounted for 16% in 2016 that was enhanced to 18% in 2017 from the total sales. While paper
based supplies staying constant in both years.
C). Presenting correlation co-efficient through scatter graph:
Year Total sales (in €)
2015 165,000.00
2016 182,000.00
2017 178,000.00
Correlation coefficient 0.73
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Correlation might be elaborated or served due to the effectual statistical tools which
could be implemented for identifying connection which takes place between two variables.
Correlation coefficient helps out to reflect the relationship between sales and year. In addition to
this, while correlation falls under this range of .25 to .75, then this situation will be known in the
name of moderate situations. By keeping in mind the results or trends, this can be said that the
sales would enhance positively in the future period.
d). Forecasting of sales:
Year Sales
2018 €6500x + €162000
= €6500 (4) + €162000
= €188000
2019 €6500x + €162000
= €6500 (5) + €162000
= €194500
TASK 4
a). Pros and cons evaluation
Pros Score/10 Cons Score/10
Increasing customer
base 9 Extravagant staff turnover 5
Economies of scale 8 Impact on quality 8
Skilled or proficient
personnel 7 Intensive capital need 7
Relocation
possibilities 6 Loss of functional control 6
Total Pros 30 Total Cons 26
Net outcome= Total score of pros – cons
= 30 – 26
= 4
5

By taking the net outcomes, this is rightly observed that Donald Duque which
concentrates must be placed on the expansion. Henceforth, this could be reflected strategies
which are related to the expansion of the business operations in Germany and Belgium would
prove highly beneficial for the company. This would be in turn assist business units in improving
customer base as well as sales and profits margin.
b). Defining international standards with which Donald Duque requires to comply:
There are so many global standards which are applied by the various countries around the
globe especially in European countries while performing business activities and functions
(Masoud and Hardaker, 2012.). Therefore, global standards which are associated along with the
operations of Donald Duque are mentioned as under:
 ISO 14000 family-environmental management: By relying on this standard, business
firms are accountable for performing activities for making business environment in a
friendly manner.
 ISO 45001 Occupational health and safety: By applying this standard, various health
and safety standard, this is the responsibility of cited company in order to form adequate
arrangements related to the health and safety of personnel at the workplace.
 ISO 31000 risk management: This is the standard where all the risks which are directly
or indirectly connected to the company are managed in an effective manner.
Further, Donald Duque is required to comply along with the Data Protection Act and
according to this, confidentiality related to the information is required to be adopted (Würzburg,
Labandeira and Linares, 2013).
Apart from this, Donald Duque requires to follow up comply along with the quality
standards at this producing and offering stationery goods to customers.
TASK 5
a). Computing a monthly cost of 30 year repayment mortgage:
Particulars Figures
Time 30 years
Loan payment = Total loan
amount / Discounting factor =
= € 21215.85
Monthly repayment € 21215.85 / 12
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= €1767.98
b. Re-calculating monthly cost assuming that the interest is applied to the loan every month
Particulars Figures
Time period (n) 30 years * 12 months (each year) = 360 times
Interest rate per month (R ) 10% / 12 = 0.00833
Monthly repayment
TASK 6
H0 (Null hypothesis): There is no significant difference in the mean value
of expected and actual average order value.
H1 (Alternative hypothesis): There is a significant difference in the mean
value of expected and actual average order value.
Particulars Outcome
Mean of the entire population 240
Average of sample 230
Standard deviation 43
Z score assessment [ (Mean of the entire
population – sample average) / standard
deviation ]
(240 – 230 ) / 43
= 10 / 43
= 0.23
Criteria’s for selection and rejection of hypothesis
P > 0.05: Null hypothesis accepted or true
P < 0.05: Alternative hypothesis proved or true
By way of analysis, it is rightly said that p value of Z score 0.23 accounts for 0.59
significantly. This outcome reflects that p value is more than the standard limit such as 0.05.
Thus, by considering these aspects, it can be rightly said that null hypothesis is recognised and
other one is rejected (Chambers, 2018). On the basis of p value discovered, it can be implied that
no statistical significant quality emerges between the mean values of anticipated and actual
average order value. On the other hand, this is rightly said that actual and expected value orders
are moving in a similar direction.
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TASK 7
a). Advice for improvement:
Under-mentioned questionnaire helps the company to know about respondent’s attitude
and their suggestions for improving the products or services in an effective manner. There are 20
respondents taken from the market and under mentioned questionnaire is provided to them for
analysing it and making effective decisions for the firm.
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b) Descriptive statistics
Statistics
VAR00002 VAR00003 VAR00004 VAR00005
N Valid 21 21 21 21
Missing 0 0 0 0
Customer service
Frequency Percent Valid Percent Cumulative
Percent
Valid 2 3 14.3 14.3 14.3
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3 4 19.0 19.0 33.3
4 13 61.9 61.9 95.2
CUST_SERV 1 4.8 4.8 100.0
Total 21 100.0 100.0
Quality P&S
Frequency Percent Valid Percent Cumulative
Percent
Valid
3 17 81.0 81.0 81.0
4 3 14.3 14.3 95.2
QUAL_P&S 1 4.8 4.8 100.0
Total 21 100.0 100.0
Sales staff
Frequency Percent Valid Percent Cumulative
Percent
Valid
2 4 19.0 19.0 19.0
3 3 14.3 14.3 33.3
4 13 61.9 61.9 95.2
SALES_STAFF 1 4.8 4.8 100.0
Total 21 100.0 100.0
Price value
Frequency Percent Valid Percent Cumulative
Percent
Valid
1 3 14.3 14.3 14.3
2 15 71.4 71.4 85.7
3 2 9.5 9.5 95.2
PRICE_VALUE 1 4.8 4.8 100.0
Total 21 100.0 100.0
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TASK 8
Summary of the report:
By application of “advantages and disadvantage”, it reflects that Donald Duque can
expand their business in Germany and Belgium as having a vast difference in the advantages and
disadvantages. However, incremental sales and profits in this industry is the crucial factor for
expansion (Ghilani, 2017). By entering in the new market, its emergence would be adequate
opportunities of growth in Duque. Questionnaire reflects product and service qualities to their
consumers which are good. But firm needs to focus on staff of sales. This division will not have
issues connected with the human resources and sound rating that would address by relying
priority (International Organization for Standardization, 2018).
CONCLUSION
From the above mentioned report, this can be rightly observed that he Germany
stationery is constant. According to Duque, firm fails in rendering price value but they are
blessed with the quality of the products. Questionnaire is formed for getting customer’s advice
but they don't have get an adequate response. However, expansion will provide diverse benefits
to Donald Duque but before going to expand their operations, there is a strong need to analyse
the data relating to Germany and Belgium.
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REFERENCES
Books and Journals:
Benth, F. E. and et.al., 2014. Futures pricing in electricity markets based on stable CARMA spot
models. Energy Economics. 44. pp.392-406.
Cameron, A. C. and Trivedi, P.K., 2013.Regression analysis of count data(Vol. 53). Cambridge
university press.
Gunter, U. and Önder, I., 2015. Forecasting international city tourism demand for Paris:
Accuracy of uni-and multivariate models employing monthly data. Tourism
Management. 46. pp.123-135.
Hsiao, C., 2014. Analysis of panel data(No. 54). Cambridge university press.
Lindman, Å. and Söderholm, P., 2012. Wind power learning rates: A conceptual review and
meta-analysis. Energy Economics. 34(3). pp.754-761.
Masoud, N. and Hardaker, G., 2012. The impact of financial development on economic growth:
Empirical analysis of emerging market countries. Studies in Economics and Finance.
29(3), pp.148-173.
Würzburg, D., Labandeira, X. and Linares, P., 2013. Renewable generation and electricity
prices: Taking stock and new evidence for Germany and Austria. Energy Economics.
40. pp.S159-S171.
Chambers, J. M., 2018. Graphical methods for data analysis. CRC Press.
Ghilani, C. D., 2017. Adjustment computations: spatial data analysis. John Wiley & Sons.
Schabenberger, O. and Gotway, C. A., 2017. Statistical methods for spatial data analysis. CRC
press.
Online
MGCC Perspective. 2016 [Online]. Available through:<
file:///C:/Users/user/AppData/Local/Temp/Rar$DIa1.106/MGCCReport20161518787080
.pdf>.
International Organization for Standardization. 2018. [Online]. Available through:
<https://www.iso.org/home.html>.
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Germany – A Potential Stationery Market. 2018. [Online]. Available through:
<http://www.malaysia.ahk.de/fileadmin/ahk_malaysia/Perspectives/MGC047-
Mar.Apr16_iPAD.pdf>.
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Appendix
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