Stationery Market Analysis and Business Expansion

The assignment involves evaluating the stationery market in Germany, analyzing customer satisfaction, and determining business expansion strategies. It includes descriptive statistics, conclusions, and references to support the analysis. The study concludes that the stationery market is increasing year by year, with Germany contributing significantly to this industry.

Analysing Information and Data
for Problem Solving

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Overview of wholesale stationers market in Germany................................................................1
TASK 2............................................................................................................................................2
Using excel sheet, producing graph for reflecting annual spending on writing/drawing
materials per capita......................................................................................................................2
TASK 3............................................................................................................................................3
a. Analysing Duque;s consecutive three year sales data of year 2015 to 2017...........................3
b. Mixed pie chart of product item of 2016 and 2017 sales.........................................................4
c. Extracting correlation coefficient of total sales and year with scatter diagram.......................4
d. Forecasting sales of year 2018 and 2018.................................................................................5
TASK 4............................................................................................................................................5
a. Assessing pros and cons of business expansion in Germany and Belgium.............................5
b. Application of International standards to activities of Duque.................................................6
TASK 5............................................................................................................................................7
a. Calculating monthly cost of 30 year repayment mortgages.....................................................7
b. Re-calculating monthly cost with application of interest to loan at each month.....................8
TASK 6............................................................................................................................................8
TASK 7............................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
APPENDIX....................................................................................................................................12

INTRODUCTION
The Duque Paertiers Gros is business entity which directly deals with numerous
stationery products and distributor in global market. It has built strong customer base from 50
years as it includes wholesale trade with business in Northern France. This report will provide
discussion about stationery market in Germany along with challenges and trends. Further this
will show annual spending on writing and drawing material per capita in seven European
countries. In the similar aspect, it will articulate sales of three consecutive year 2015 to 2017
along with correlation, mixed pie chart and scatter plot as well. This will reflect different pros
and cons for business expansion in Belgium and Germany.
TASK 1
Overview of wholesale stationers market in Germany
The current stationery industry of Germany is positioned in appropriate aspect and as per
Trade association of Office Writing materials and Supply, its turnover is more than €14.8 billion
in single year, which is equalising spending of individual which is higher than €182 yearly. A
major proportion is belonged towards writing and drawing material which is €35.2 because of
this Germany has ranked second as it has spent for stationery in European Union countries.
There are numerous companies which had reflected positive attitude in this industry as fact is
that more than 70% stationery brand has raised sales in year 2015.In the similar aspect,
Association of German Stationery brands, its aggregate of turnover has attained growth by 3.5%
among year 2014 and 2015. It is outcome of increment in raising domestic demand which had
accomplished growth by 2.5% and international demand grew by 5.5% (Germany – A Potential
Stationery Market, 2018).
By considering trends and potentials, Germany stationery brands has good reputation
through world especially in Germany. It has attained positive image, stationery brands of
Germany with writing and general instruments had gained significant market shares which are
not in favour of private labels. On the contrary, industry comprises a broad product range with
various developments along with challenges as well. In this aspect, paper and paper related
products such as document folders are declining in continuous aspect as this category of product
is suffering significantly because of digitalisation which is undertaken in private and work life
(Darnton, 2016). However, this category of product has attained positive growth as well as office
writing and supplies instruments which grew about 5% in year 2015.
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TASK 2
Using excel sheet, producing graph for reflecting annual spending on writing/drawing materials
per capita
European Countries Annual spending
Switzerland 35.5
Germany 35.2
Austria 35
France 28.3
Slovenia 20.4
Italy 18.6
Hungary 9.6
Switzerland
Germany
Austria
France
Slovenia
Italy
Hungary
0 5 10 15 20 25 30 35 40
35.5
35.2
35
28.3
20.4
18.6
9.6
Annual spendings in European countries
Annual spending
Interpretation: The above graph is representing annual spending on writing/drawing
material per capita of year 2016. The Germany stationery market is considered as one of vital
sectors which is contributing highly to German economy. It could be clearly viewed that
Switzerland is leading in this industry, where Germany has gained second position followed by
Austria. Further France has gained fourth position in annual spendings for writing and drawing
materials per capital.
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German stationery has accomplished huge demand as it is driven through high propensity
for consumption and to invest through private along with commercial customers. The main
reason for Germany with strong positioning and economic growth as 35.2 in year 2015 along
with growth rate of GDP of 17% and bright outlook in labour market, Germany and even in
remaining Europe. The present mitigation rate in Germany has numerous effects as it has
presence of reliable estimations with its unavailability.
TASK 3
a. Analysing Duque;s consecutive three year sales data of year 2015 to 2017
(Table mentioned in Appendix)
Interpretation: In global market, operation of Duque in these three years had vital role for
explaining role of business entity. It is necessary for considering different factors which are
involved for setting objectives. The Printer cartridges had increment in sales by 4% in year 2016
but in 2017, it had negative effect in 2017 by -15.38% because of general office supplies with
essential of huge line for understanding profit in two years but in last year it was facing loss. In
the same series, printers of low cost had accomplished growth of 20% in year 2016 but in 2017,
it was at break even as no profit no loss.
The sales of office furniture had raised as low cost printers but in 2017 its sales rose by
8%. The cost of shredders was constant in years after primary sales which are necessary for
Duque practice with context of various complexities. Moreover, sales of paper based supplies
has raised by 8% in year 2016 but it was same in 2017. The concerned aspect is of writing and
drawing material is 20% and 6.67% in 2016 and 2017 respectively. So it could be considered that
2016 evaluation has raised increment in total sales by 10.30% as in 2016 it has negative impact
of 2.20% (Germany – A Potential Stationery Market, 2018).
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b. Mixed pie chart of product item of 2016 and 2017 sales
c. Extracting correlation coefficient of total sales and year with scatter diagram
Total sales of year
 165000 in 2015
 182000 in 2016
 178000 in 2017
The correlation and coefficient is 0.73
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Interpretation: Correlation is replicated as effective statistical tool which helps in
determining relationship in two particular variables. The outcome of correlation analysis has
replicated as 0.73 which is moderate as relationship level in year and sales. The range of
correlation is always specified as it is 0.25 to 0.75 which is belonged to moderate level. Further,
it could be articulated that sales will alter in positive ways for fruitful future (Riley, 2018).
d. Forecasting sales of year 2018 and 2018
Sales X= 4
2018
6500x + 162000
(6500*4) + 162000
188000
Sales X= 5
2019
6500x + 162000
(6500*5) + 162000
194500
TASK 4
a. Assessing pros and cons of business expansion in Germany and Belgium
Expansion of business to Belgium and Germany
Pros Score/10 Cons Score/10
Economies of scale 8
Impact on quality or
degrading 6
Reallocation
possibilities 9
Deficiency in
operational control 6
Consumer base
improvement 8
Huge employee
turnover 7
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Qualified and talented
personnel 8 Need of high capital 7
Total Pros 33 Total Cons 26
Average Pros 8.25 Average Cons 6.5
Net outcome: Total pros – Total Cons
= 33 – 26
= 7
Interpretation: The above table helps us for evaluating advantages and disadvantages of
business expansion in Belgium and Germany. The advantages will be framed as economies of
scale, improvement in consumer base, reallocation of possibilities and qualified and talented
personnel whose score are aggregated as 33 with average of 8.25. However, it has cons as well as
quality will be degraded, lack in operational control, need of huge capital and employee turnover
as well with sum of score as 26 with average of 6.5. From this analysis, its outcome is of 7 which
is positive which gives recommendation for expansion in Belgium and Germany as it is highly
beneficial to business.
b. Application of International standards to activities of Duque
In the present scenario, there are numerous standards which are mandatory to be
compiled through European countries for business expansion about its functions and activities.
The international standards are linked to operation of Duque are listed below:
 ISO 9001 Quality management: This standard frames different aspect of quality
management which comprises best known standards of ISO. It gives various tools and
guidance for business entities who wants to ensure about services and products in
consistent aspect for accomplishing requirements of consumer which are improved
consistently.
 ISO 14000 family- Environmental management: It gives various practical tools for
business entities with each type of managing various environment responsibilities. It lays
special focus on environmental system for attaining this along with different audit
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approaches, labelling, analysing life cycle and communication. In the same series, it also
lays focus on environmental challenges like climate change (Castka and Corbett, 2015).
 ISO 26000 Social responsibility: It provides guidance on operations of business entities
in socially responsible aspect which signifies to act in ethical and transparent method as it
also contributes to society's health and welfare. The relationship of environment and
society where operations are referred as critical factor with capability for continuing in
effective aspect. It has also raised as measure of overall performance.
 ISO 31000 Risk Management: The organizations which are impacting through risk has
numerous consequences with context of professional reputation and economic
performance as well. Hence, risk management is effectively helping business for
performing best in environment with numerous uncertainty.
 ISO 45001 Occupational health and safety: There are various requirements which will
help business entities for decreasing burden with framework of improving employee
safety and decreasing risk in workplace for creating better and safe working condition
throughout world (International Organization for Standardization, 2018).
 Furthermore, Duque has requirement for complying with Data Protection Act and need of
maintaining confidentiality with context of proper maintenance.
TASK 5
a. Calculating monthly cost of 30 year repayment mortgages
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b. Re-calculating monthly cost with application of interest to loan at each month
TASK 6
Null Hypothesis H0
There is no significant difference in actual mean value and
expected average order value.
Alternative Hypothesis H1
There is significant difference in actual mean value and expected
average order value.
Parameters Population mean Sample Mean Standard deviation
Result 240 230 43
Z Score assessment
[ (Population mean – Sample Mean) /
standard deviation ]
(240 – 230 ) / 43
10/43
0.23
Interpretation: The above able is representing Z score assessment of mean value order as
objective for selecting hypothesis has been determined with P value (Fang and et.al., 2015). The
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main criteria is in numeric method of value of P, if P value is more than 0.05 then null
hypothesis is accepted and less than 0.05 alternative hypothesis will be accepted. While
assessing Z score, its P value has been extracted as 0.23 which is higher than 0.05 so null
hypothesis is accepted. It could be interpreted as actual and expected order are moving in same
direction which is also observed in scatter plot.
TASK 7
The customer responsive rate could be improved with context of numerous methods like
considering feedback on immediate aspect after delivering goods and services in 24 hours. In the
similar aspect, appropriate channel must be picked like test messages or email surveys. Usually,
response rates are decreased and bore when survey longs for high time as it must be always short
and laid emphasis on without incentive. The target audience should be motivated with attractive
designs along with graphics and concise questions as well. The reminder surveys should be send
as it boost response rate but it should be only one reminder (Endsley, 2018).
After survey, consumers should be thanked and motivated for time and survey
completion. Similarly, survey should be directly personalized for increment of response rate with
numerous human dimensions, question customization and invitation for responses (7 Secret
Ways to Increase Your Survey Response Rate, 2018).
Descriptive statistics
Interpretation: The above descriptive statistic is of outcome of 20 questionnaires as
evaluation of primary data. The mean of customer service report is of 1.95 which is directly
exhibiting customer view. It standard deviation is extracted as 0.51 which shows very less
movement of risk so consumer perception level does not represent with average participants. In
this statistical evaluation, Duque has provided suggestion for cost control and affordable
product's price for raising satisfaction level.
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CONCLUSION
From the above study it had been concluded that stationery market is increasing by year
to year and Germany is giving huge contribution to this industry especially writing and drawing
materials. The stationery suppliers are giving huge importance on appropriate diversification
with product's quality. It had been shown that Duque would attain success with consideration of
desired level of outcome with appropriate exploration of operations of business in different
countries as it will be having business expansion in Belgium which is beneficial. Thus, Duqu
will focus on different pricing policy for ensuring specific margin for influencing decision
making of customer.
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REFERENCES
Books and Journals
Castka, P. and Corbett, C. J., 2015. Management systems standards: diffusion, impact and
governance of ISO 9000, ISO 14000, and other management standards. Foundations and
Trends® in Technology, Information and Operations Management. 7(3–4). pp.161-379.
Darnton, R., 2016. The Demand for Literature in France, 1769–1789, and the Launching of a
Digital Archive. Mémoires du livre/Studies in Book Culture. 7(2).
Endsley, M. R., 2018. Automation and situation awareness. In Automation and human
performance (pp. 183-202). Routledge.
Fang, Y. and et.al., 2015. No-reference quality assessment of contrast-distorted images based on
natural scene statistics. IEEE Signal Processing Letters. 22(7). pp.838-842.
Riley, V., 2018. Operator reliance on automation: Theory and data. In Automation and human
performance (pp. 39-56). Routledge.
ONLINE
7 Secret Ways to Increase Your Survey Response Rate. 2018. [Online]. Available through:
<https://www.promoter.io/blog/increase-survey-responses/>.
Germany – A Potential Stationery Market. 2018. [Online]. Available through:
<http://www.malaysia.ahk.de/fileadmin/ahk_malaysia/Perspectives/MGC047-
Mar.Apr16_iPAD.pdf>.
International Organization for Standardization. 2018. [Online]. Available through:
<https://www.iso.org/home.html>.
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APPENDIX
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