Feasibility Study of Stationery Business Expansion

This assignment provides a detailed analysis of the feasibility of expanding a stationery business in Germany. It includes an assessment of the German market, focusing on consumer behavior and purchasing patterns. The study also examines the competitiveness of the stationery industry in Germany, identifying potential countries for expansion. Additionally, it calculates the cost of new building in Germany, including yearly loan costs and monthly rent. The assignment concludes by stating mean value of orders and customer satisfaction, which is necessary for success in business.

Analysing information data and
problem solving

Table of Contents
INTRODUCTION ..........................................................................................................................1
2. ANALYSIS OF ISSUE...............................................................................................................1
2.1 Overview of wholesale stationers market in Germany..........................................................1
2.2 Annual spending on drawing and writing material per capital..............................................2
2.3 Analysis of Duque's financials of sales of last three years...................................................3
......................................................................................................................................................4
......................................................................................................................................................4
2.4 Feasibility of Expanding to International and German standards..........................................6
2.5 Cost of new building..............................................................................................................7
2.6 Mean value of orders.............................................................................................................8
2.7 Customer satisfaction ............................................................................................................9
3. CONCLUSION..........................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Analysing information data is crucial part of problem solving in business where focus of
company is on accumulating relevant information about business sin order to depict customer
satisfaction, growth and profits. The study will evaluate Duque Papetiers Gros who owns
stationery business in Northern France. The person is aware about data analysis for small
business management but the analysis of data in this report will be done to assist in better
decision making and problem soling with regard to mean cost, sales, annual spending. Thus, the
study will outline customer satisfaction by evaluating all the perspective of stationery business.
2. ANALYSIS OF ISSUE
2.1 Overview of wholesale stationers market in Germany
In Germany the stationery industry is positioned on epic graph which depicts its
sustainable growth and economic contribution. In accordance with evaluation of German
stationary brand association stationary industry in Germany grew by 3.5 % in between of year
2014 to 2015. The increasing growth of industry resulted in incline in demand graph by 2.5 % at
domestic level and at international level there was increase of 5 %. Th inclines in demand graph
depicted a remarkable growth of stationery industry of Germany.
As per Trade association for office supply and writing material evaluation it is
demonstrated that stationery industry has total turnover of 14. 8 billion Euro every year. Th
turnover of every year is equal to spending on each individual which is 182 Euros annually.
However, the stationary industry if Germany comprise wholesalers who sell paper, writing
instruments and office supplies, business to business trading and direct commercial selling of
shoppers (Hobby & Stationery, 2018). The stationery market of Germany comprise 5500
specialist retailer among which majority of them have turnover less than 250,000 each.
The major strength of industry is high quality standard products with premium stationery
services which aid in managing consumer trust and attention over industrial products. Further,
some retailers who offers premium and unique customised stationery are settled in high end
shopping malls which is more conducive to shoppers. Th location and uniqueness of retailer
stationary products in Germany is the copy right of industry which makes stationers services of
Germany uniqueness and customer satisfactory.
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2.2 Annual spending on drawing and writing material per capital
On the basis of pictorial presentation, it can be said that simplification of numerical data
is the best of analysing information and data analysis for better decision making. Analysis of
data is best understood when in form of picture and graph as it promotes clear comparison of
financials on the basis of incline and decline in figures (Charnes and et.al., 2013). The below
given illustration has clearly predicted annual spending on drawing and writing material of
European countries.
Switzerland
Germany
Austria
France
Slovenia
Italy
Slovakia
Hungary
Spain
Poland
Croatia
Czech Republic
0 5 10 15 20 25 30 35 40
Spending in €
Illustration 1: Annual pending of European countries on drawing and writing material
In accordance with bar graph it is demonstrated that the major spending is of Switzerland
with overall spending recorded at 35.5 Euros. It is the highest spending country in comparison to
all other European countries. The major competitor of Switzerland is German which is on second
rating with spending of 35. 2 Euros. On the other hand, Austria is on 3rd position with spending
of 35 Euros which is competitive with regard to 1st and 2nd postilion. In addition, from the graph
it is clear that France is on 4th potion from where it is determined that spending of France on
drawing and writing material is 28. 3 Euros. From the study it is analysed that France is one of
the highest grossing market and is focused on expanding its business to support unique in
innovation and spendings.
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Further, Hungary is on 8th rank with spending recorded at 9.6 Euros which is
comparatively very less from other European countries in graph but the country is focusing on
increasing spending by promoting flow of money and products in accordance with customer
expectations (Frieden, 2012). In accordance with analysis and graphical placing of European
countries it can be said that Duque Papetiers Gros can focus on expansion in German as it is
major consumer spending which can boost its sales sustainability and revenue generation.
2.3 Analysis of Duque's financials of sales of last three years
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Ill
ustration 3: Sales data

Illustration 4: Mix pie chart
Illustration 5: Scatter presentation
Illustration 6: Correlation Coefficient
Analysis and Interpretation
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In accordance with sales data, scatter diagram and correlation coefficient it is determined
that Correlation coefficient helps in determining relationship of different variables of stationary.
Accumulation of sales data and correlation and coefficient helps the firm in understanding
performance f business and needs of improvement.
In accordance with sales revenue of three years that is 2015 to 2015, it is demonstrated
that business and demand of stationery products company has increased which denotes customer
support and increase in revenue of stationer. However, the correlation coefficient was recorded at
0. 73 which presents positive relationship of different variable of business.
As per increasing sales revenue of Duque Papetiers Gros it has been analysed that
stationery business has marking tremendous success and growth in industry which is beneficial
for the expansion plan. The coorelation of sales revenue is recorded at 1 which demonstrates
increase in positive relationship of variables of business which is supportive for the company
(Schmid, 2012). Thus, it can be articulated that expansion in Germany requires consumer
acceptance and sustainability in sales and revenue which is positive with regard to scatter
diagrams correlation with multiple variables of organisation.
Future trend analysis
Future trend analysis is made for two consecutive years is taken from scatter diagram and
future trend.
Hence, from the accumulation of future trend analysis it is demonstrated that the firm will
attain 188000 in 2018 which will increase to 194500 by 2019. Henceforth, it can be outlined
that the business will face tremendous growth in upcoming years in sales revenue which is
positive analysis of expansion plan in Germany.
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2.4 Feasibility of Expanding to International and German standards
In accordance with feasibility table pros and cons of expansion of stationery business of
Duque Papetiers Gros is determined from where it is articulated that expanding in Germany will
help the business in enhancing customer satisfaction because the stationery industry of Germany
supports innovation, and premium stationery products. However, the industry analysis outlined
spending of consumer and revenue generation of entire industry which denotes positive response
of shoppers to innovation of retailers.
In accordance with disadvantages it is determined that increasing needs of funding which
can be disastrous for the expansion but have score which denotes minor impact of the limitation
which is also in support of expansion. Thus, limitation can be managed Duque Papetiers Gros by
focusing inuring cost and expenditure (Gudipati and et.al., 2013). Further, on the basis of
advantage score, it is identified that increase stationery business will have remarkable increase in
revenue which denotes positive existence and acceptance industry. However, It is identified that
expansion will assist in enlarging sales which is another positive sides which denotes increase in
sales revenue of Duque Papetiers Gros business.
The average pros score is 2.3 and cons score is 1.5 which clearly depict advantages of
managing successful expansion. The business offers unique stationery products which will be
supported by general stationery trends and will assist the fir in managing successful growth
Hence, it can be said that acceptance of customer is another response which depicts increasing in
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Illustration 7: Table presenting feasibility

sales of products when expanding in some other region. The stationery will be able to manage
changes and ease profits according to demand of German stationery industry.
International standards
Risk management in business: ISO 31000: As per risk mitigation standards uncertain
situation are common part of business. However, the standards promotes ways which can assist
the business sin managing risk at every step like identifying uncertain situation at initial stage.
Further, deriving changing trends which can be risk of product and sales of business (Gupta and
Gupta, 2017). Apart from this, the standard articulates about occupational health and safety
which is crucial part of business especially hen expanding in different region.
Social responsibility: ISO 45001: In accordance with this, it is the responsibility of
business when expanding to focus on socially responsible practices. Th international standard
assist the firm in managing sustainability in operational activities which is effective for growth in
new market.
2.5 Cost of new building
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In accordance with cost of mortgage for 30 years, it is articulated that amount of loan is
200000 with discount rate 0.10, which makes is 21215 per years. However, the company can pay
loan on monthly basis which will cost 1767. 8. Thus, it can be said that stationery business
should focus on monthly cost of building for year which will help in maintaining stability in
returns after expansion. After on year the firm can focus on yearly payment because it will assist
the business in outlining need of changes or consumer response to its products and services.
2.6 Mean value of orders
Hypothesis testing
H0: There is no significant variation between sample mean value and order mean value
H1: There is significant variance between sample mean value and order mean value
As per hypotheses testing the significant relation of two variables is of 5 % where null
hypothesis will be accepted which denotes that there is no significant variation between sample
mean value and order mean value. The acceptance criteria of null hypothesis is 0.5 which is met
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from the testing with regard to 0.5910 which is accomplished. The values denote normal
distribution curve for mean value orders. Hence, it can be articulated that mean population will b
considered in accordance with related test to study (Nakagawa, Johnson and Schielzeth,
2017).
2.7 Customer satisfaction
Response rate to questionnaire
The question are is deigned to seek quick response of shoppers over expansion of
business. The designing of question is precise in order to avoid the chance of confusion among
respondents. The question will set according to objectives of business. With the help of this
designing firm will able to attain positive responsive rate which is 5 %.
Statistics CUST SERVICE QUAL P&S SALES STAFF PRICE VALUE
2 3 3 3
4 3 4 2
3 4 3 3
4 3 4 1
4 4 1 2
3 3 4 2
3 4 4 2
4 3 4 3
2 3 1 2
4 4 4 1
4 3 2 4
3 4 4 1
4 3 2 2
2 3 4 1
2 4 2 3
4 3 4 2
3 4 3 1
3 3 3 3
2 2 4 2
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3 3 2 3
Mean 3.2105263158 3.3157894737 3.1052631579 2.1052631579
Standard
Deviation 0.8127277009 0.5712405706 1.0711528467 0.8750939799
In accordance with calculation it is determined that stationery business should focus on
prince management and strategic in order to retain shoppers of Germany when expanding.
Consumers are price sensitive and therefore to attract buyers attention at the time of expanding
business and its products focus of firm neds to on reducing process in accordance with
competitors.
3. CONCLUSION
The assessment analysed the data in order to promote better decision making for
stationery business of Duque Papetiers Gros. In this the business person focus on analysing
annual spending of European countries with the help of pictorial presentation from where it is
analysed that potential countries where firm can expand its business is France, Austria and
Germany. The analysis of Germany stationers industry denotes supportive expansion and
growth. Further, the study outlined international standards and feasibility of German market
which will support successful expansion of business. On the hand it outlined cost of new
building in Germany for where yearly cost of loan and monthly rent is calculated. Thus, it
concluded by stating mean value of orders and customer satisfaction which is necessary port of
success of business. Thus, from the report it can be concluded that expansion of stationery
business in Germany will assist in serving customer satisfaction, developing scale of operations
and increasing revenue which over all depicts braincase in sales revenue and profits of company.
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REFERENCES
Books and Journals
Charnes, A. and et.al., 2013. Data envelopment analysis: Theory, methodology, and applications.
Springer Science & Business Media.
Frieden, R., 2012. Probability, statistical optics, and data testing: a problem solving
approach (Vol. 10). Springer Science & Business Media.
Gudipati, M. and et.al., 2013. Big data: Testing approach to overcome quality challenges. Big
Data: Challenges and Opportunities. 11(1). pp.65-72.
Gupta, K.R. and Gupta, M.P., 2017. Business statistics. Atlantic Publishers & Distributors.
Nakagawa, S., Johnson, P.C. and Schielzeth, H., 2017. The coefficient of determination R 2 and
intra-class correlation coefficient from generalized linear mixed-effects models revisited
and expanded. Journal of the Royal Society Interface. 14(134). p.20170213.
Schmid, V., 2012. Solving the dynamic ambulance relocation and dispatching problem using
approximate dynamic programming. European journal of operational research. 219(3).
pp.611-621.
Online
Hobby & Stationery. 2018. [Online]. Available through:
<https://www.statista.com/outlook/260/137/hobby-stationery/germany#market-
revenue>.
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