Donald Duque's Stationery Business Analysis

This report provides an analysis of Donald Duque's stationery business, including a survey of customers to improve responsive rates. The survey results are evaluated using statistical methods, and recommendations are made for improving customer satisfaction through competent pricing policy and product quality. The report also discusses the potential stationery market in Germany and Belgium, suggesting that diversification and product quality are key factors for success.

Analyzing Data

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Presenting the brief overview of wholesale stationers market in Germany................................3
TASK 2............................................................................................................................................5
Assessing annual per capital spending on writing and drawing material....................................5
TASK 3............................................................................................................................................6
1. Assessment of total sales.........................................................................................................6
2. Mixed pie chart........................................................................................................................6
3. Presenting correlation co-efficient via scatter plot..................................................................7
4. Estimating sales trend for the period of 2018 and 2019..........................................................7
TASK 4............................................................................................................................................8
1. Pros and cons evaluation.........................................................................................................8
2. Defining international standards with which Donald Duque needs to comply.......................8
TASK 5............................................................................................................................................9
a. Computing a monthly cost of 30-year repayment mortgage...................................................9
b. Re-calculating monthly cost assuming that the interest is applied to the loan every month...9
TASK 6..........................................................................................................................................10
TASK 7..........................................................................................................................................11
A. Stating ways that can be used for enhancing customer responsive rate...............................11
b. Analyzing data set gathered through survey..........................................................................11
TASK 8..........................................................................................................................................12
Conclusion.................................................................................................................................12
REFERENCES..............................................................................................................................13
APPENDIX....................................................................................................................................14

INTRODUCTION
In the present times, every business unit lays high level of emphasis on analyzing data set
through using suitable statistical tools and techniques. Data analysis or evaluation is highly
significant which in turn helps business entity in assessing trends and thereby aid in suitable
decision making. The present report is based on the case scenario of Donald Duque that owns a
small family stationery business in Northern France. Duque lays more focus on wholesale trade
rather than selling stationery items directly to the public. Products which are offering by such
business unit includes printer, general office supplies, furniture for commercial purpose, drawing
materials etc. In this, report will shed light on the trend of wholesale stationery market in
Germany. It also shed light on the spending on drawing material per capita. Report also presents
the manner in which graphical presentation helps in summarizing data set.
TASK 1
Presenting the brief overview of wholesale stationers market in Germany
From assessment, it has identified that Germany is enjoying leading position in the
stationery market. Hence, now there are several companies in Germany that provides customers
with quality stationery products namely Staedtler, Stadbilo, Lamy etc.

The above depicted graph shows that in the year of 2002, significant declined has
assessed in the number of office supplies and stationery retailer. Hence, during such period,
offices accounted for 5200 only which was less as compared to previous timeframe. Further,
focus is also laid down by the suppliers on introducing or offering innovative stationery products
or services to the customers that meet their expectation level in the best possible way. Besides
this, due to the growing popularity of the suppliers in both home and overseas market growth in
sales revenue took place by 3.5% significantly. Apart from this, specific changes were also
assessed in such industry after the entry of specialist retailer. Moreover, such retailers are
offering premium or high quality products using their own labels ( Germany – A Potential
Stationery Market, 2018). They believe that labeled products facilitate easy recognition of the
same. In addition to this, in Germany now products are available for 24 hours availability of via
online means. Thus, by building online presence Donald Duque can attain success.

TASK 2
Assessing annual per capital spending on writing and drawing material
Czech Republic
Croatia
Poland
Spain
Hungary
Slovakia
Italy
Slovenia
France
Austria
Germany
Sitzerland
€0.00 €5.00 €10.00 €15.00 €20.00 €25.00 €30.00 €35.00 €40.00
7.6
7.9
8.5
8.9
9.6
9.8
18.6
20.4
28.3
35
35.2
35.5
Per capita annual spending on writing and
drawing material
By doing research, it has assessed that out of customer spending, €35.2 related to drawing
and writing material. Out of all European Nations such as Austria, Bulgaria, Belgium, Cyprus,
Denmark etc Germany has secured 2nd and France attained forth position. Hence, product
collection or variety maintained by hypermarket and supermarkets has made significant
contribution in the attainment of leading position. Along with this, with the motive to develop
awareness among the customers and influence their purchasing decision emphasis has placed by
the suppliers on giving advertisements on newspapers, magazines etc.
Further, considerable shift in the market has identified after the introduction of e-
commercialization or digitalization. Online offerings of products or services provide high level
of convenience to the customers. Thus, it is one of the main reasons due to which now customers
purchase products via online rather than physical store. In addition to this, high level of growth
has assessed in the mail and online ordering business approximately 17%. Along with this, now
in Germany, retailers have also made focus on strengthening or increasing their market share.

Considering industry trend, it can also be depicted that it will rise or grow in the near future.
Nevertheless, decreasing trend has assessed in the number of pupils by 11.9% which in turn
places adverse impact on the demand for writing and drawing material.
TASK 3
1. Assessment of total sales
Refer appendix 1
In order to determine the figure of total sales, revenue of all the items included in product
portfolio have been added. Further, for presenting the suitable view of sales level or trend
comparison of current year has also been done with the previous year (Chambers, 2018). In the
year of 2015, 2016 and 2017, total sales accounted for €165000, €182000 & €178000
significantly. It has assessed from evaluation that sales revenue of the firm inclined by 10.30% in
2016. On the other side, in 2017, declining trend (-2.20%) has assessed in the sales revenue of
Donald Duque. The main reasons behind such decreasing sales trend or level are low demand for
printer and general office supplies. Thus, for maximizing sales revenue and margin business unit
needs to develop sound strategic framework that enhances demand for both printer and office
material.
2. Mixed pie chart
14%
15%
10%
14%
16%
15%
16%
12%
13%
10%
15%16%
15%
18%
Pie Graph
printer cartridges
general office supplies
low-cost printers
office furniture
shredders
paper-based supplies
writing/drawing materials

3. Presenting correlation co-efficient via scatter plot
Year Total sales (in €)
2015 165,000.00
2016 182,000.00
2017 178,000.00
Correlation coefficient 0.73
2014.5 2015 2015.5 2016 2016.5 2017 2017.5
155000
160000
165000
170000
175000
180000
185000
165000
182000
178000
f(x) = 6500 x − 12929000
R² = 0.534810126582278
Scatter chart
Total sales
Linear (Total sales)
Correlation may be defined or served as a effectual statistical tool that can be used for
determining relationship that takes place between two variables (Ghilani, 2017). Outcome of
correlation analysis presents that moderate level of relationship between the variables such as
year and sales. Moreover, when correlation falls within the range of .25 to .75 then it is
considered as moderate. By keeping in mind the outcome or trend it can be entailed that sales
will increase positively in the upcoming time period.
4. Estimating sales trend for the period of 2018 and 2019
Year Sales
2018 €6500x + €162000
= €6500 (4) + €162000
= €188000
2019 €6500x + €162000
= €6500 (5) + €162000
= €194500

TASK 4
1. Pros and cons evaluation
Pros Score/10 Cons Score/10
Enhancement of customer base 9 Excessive staff turnover 5
Economies of scale 8 Impact on quality 8
Talented or proficient
personnel 7 High capital need 7
Relocation possibilities 6 Loss of operational control 6
Total Pros 30 Total Cons 26
Net results or outcome: Total score of pros – cons
= 30 – 26
= 4
Referring the net results, it is advised to Donald Duque that focus should be placed on
expansion. Hence, it can be presented strategy pertaining to the expansion of business operations
in Germany and Belgium will prove to be more beneficial. This in turn helps business unit in
enhancing customer base and thereby both sales as well as profit margin.
2. Defining international standards with which Donald Duque needs to comply
There are several international standards with which European companies need to comply
while performing business activities and functions. Hence, international standards that associated
with the operations of Donald Duque are enumerated below:

 ISO 14000 family-environmental management: On the basis this standard, business unit
has responsibility to perform activities in a eco or environment friendly manner.
 ISO 45001 Occupational health and safety: In accordance with such standard, it is the
accountability of Donald Duque to make proper arrangements regarding the health and
safety of personnel at workplace (International Organization for Standardization, 2018).
 ISO 31000 risk management: For the attainment of business goals, risk management
practices and strategies needs to be followed by Donald Duque.
 Further, Donald Duque must comply with the Data protection Act and as per the same
confidentiality regarding information needs to be maintained.
 In addition to this, Donald Duque needs to follow or comply with the quality standards
while manufacturing and offering stationery products to the 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
¿ € 200,000/({[(1+0.10)30 ]−1 }/[0.10(1+.10)30 ])
= € 200,000/9.42
= € 21215.85
Monthly repayment € 21215.85 / 12
= €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 ¿ € 200,000/(1+.00833)360−1}/[.00833(1+.00833)360]¿
¿ € 200,000/113.99

¿ € 1754.55
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 doing assessment, it has found that p value of Z score 0.23 accounts for .59
significantly. Such outcome shows that p value is greater than the standard limit such as 0.05.
Hence, by taking into account such aspect it can be stated that null hypothesis is accepted and
meanwhile other one rejected (Schabenberger and Gotway, 2017). On the basis of p value
determined, it can be entailed that no statistical significant difference takes place between the
mean values of expected and actual average order value. In other words, it can be said that values
of actual and expected orders are moving in similar direction.

TASK 7
A. Stating ways that can be used for enhancing customer responsive rate
Cited case presents that with the motive to make improvements in the current offering
and attain success Donald Duque conducts survey each year. Hence, for the purpose of taking
feedbacks from the customers, each December questionnaire is sent to them via e-mail.
However, in this, the issue is that responsive rate of customers or selected respondents fall below
5%. It has assessed from evaluation that customers are bothering in relation to returning a
completed questionnaire. Hence, through undertaking a reasoned action approach Donald Duque
can enhance survey responsive rates. On the basis of such aspect, by offering incentives to the
customers or respondents e-mail survey response rates can be increased significantly. In addition
to this, by sending an e-mail notification and communicating the motives as well as benefits of
such concerned survey Donald Duque can increase responsive rate to a great extent (25 Ways to
Increase Survey Response Rates, 2018). Along with this, focus needs to be placed on developing
likert scale questionnaire which in turn helps in grabbing the attention level of respondents.
b. Analyzing data set gathered through survey
Particulars CUST_SERV QUAL_P&S SALES_STAFF PRICE_VALUE
Mean 3.5 3.15 3.45 1.95
Standard Error 0.17 0.08 0.18 0.11
Median 4 3 4 2
Mode 4 3 4 2
Standard
Deviation 0.76 0.37 0.83 0.51
Interpretation: From primary data evaluation, it has found that average number of
respondents said that customer’s service or support, quality of product and sales staff of Donald
Duque is good. In addition to this, mean value of the element pertaining to price implies for 1.95
which in turn exhibits that customers viewed the same as fair. Further, value of standard
deviation accounts for .51 respectively that is neither too high nor too lower. Referring the same,
it can be depicted that perception level of customers does not vary significantly in accordance
with the rating given by the average number of participants. On the basis of outcome determined

through statistical evaluation, it is suggested to Donald Duque that lay emphasis on controlling
cost. This in turn helps company in providing customers with suitable products at affordable
price and thereby raises their satisfaction level.
TASK 8
Conclusion
By summing up this report, it has been concluded that Germany has built its strong
position in stationery market. Besides this, it can be inferred that German stationery suppliers are
placing more emphasis on diversification and product quality. It can be summarized from the
evaluation that large number of people are spending on money on purchasing writing or drawing
material. Further, it has been articulated that Duque will attain success as well as get the desired
level of outcome or success by exploring business operations in other countries like Germany
and Belgium. It can be depicted from the results of primary data evaluation that Donald Duque
needs to lay focus on employing competent pricing policy which in turn ensures suitable margin
and influences decision making aspect of customers.

REFERENCES
Books and Journals
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
International Organization for Standardization. 2018. [Online]. Available through:
<https://www.iso.org/home.html>.
25 Ways to Increase Survey Response Rates. 2018. [Online]. Available through:
<https://www.snapsurveys.com/blog/25-ways-increase-survey-response-rates/>.
Germany – A Potential Stationery Market. 2018. [Online]. Available through:
<http://www.malaysia.ahk.de/fileadmin/ahk_malaysia/Perspectives/MGC047-
Mar.Apr16_iPAD.pdf>.

APPENDIX