Business Analysis: Expanding Duque Papetiers Gros into Germany

BUSINESS ANALYSING INFORMATION AND DATA
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Table of Contents
1. Introduction..............................................................................................................................3
2.Analysis of Issues for Duque Papetiers Gros...............................................................................4
2.1 An Overview of the Wholesale Stationers Market in Germany................................................4
2.2 Annual Spending on Writing/Drawing Materials per Capita....................................................6
2.3Analysis of Duque’s last three financial years of sales data (2015-2017)..................................8
2.4Feasibility of Expanding to Germany & International Standards............................................11
2.5Costs of a New Building...........................................................................................................13
2.6Mean Value of Orders..............................................................................................................14
2.7Customer Satisfaction...............................................................................................................15
3.Conclusions.................................................................................................................................16
4.Reference List.............................................................................................................................17
5. Appendix....................................................................................................................................18
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1. Introduction
Analyzing the prospects of business expansion is one of the important elements of growing the
business. ‘Duque Papetiers Gros’ is an organization based in Northern France and
manufactures various kinds of stationery items. The organization is planning to expand its
operations in other countries of Europe. For this, the organization needs to analyze the market
and identify the potential opportunities and risks. The company has been earning considerable
amount of profit in the mother country and now is looking for opportunities to trade in other
countries. Switzerland and Germany are viable options for expanding the business for the
above mentioned organization.
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2. Analysis of Issues for Duque Papetiers Gros
2.1 An Overview of the Wholesale Stationers Market in Germany
According to the MCGC reports, the demand for stationery products in Germany is quite high.
On the other hand, the demand for German stationery goods is quite high all around the world.
The stationery products manufactured by different organizations in Germany possess high
quality and are quite popular among people around the globe. The German products include all
the new innovations in it which caters to the need of the consumers. Various well-known
stationery items manufacturing organization is Germany are Faber-Castell, Lamy Stabilo and
MontBlanc. €15 billion is the annual turnover for the stationery market of Germany. Due to the
increased demands of German stationery items all around the world, the turnover of the industry
is increasing every year.
Figure 1: Production of different stationery items in 2014
(Source: MCGC Perspectives, 2018)
The graph provided here gives information about the manufacturing of different stationery goods
in the year of 2014. The items which have been selected in the graph give a total production cost
of €510 million. The demand of the writing and drawing materials has increased and the
organization needs to increase its production to meet the needs of the consumers. This can be
helpful in curbing the competition in the market. The export quotient is quite high for stationery
products manufactured by the various organizations.
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Figure 2: Export Rate of stationery products in 2014
(Source: MCGC Perspectives, 2018)
In the graph given above, the export arte of stationery products produced by Germany have been
evaluated. The worth of the exports of stationery items is €676million. The production rate and
the export rate provide important facts and figures regarding business expansion in countries
such as Germany and Switzerland.
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2.2 Annual Spending on Writing/Drawing Materials per Capita
(Refer to the appendix for the graph)
Table 1: Stationery Items and its Worth in 12 Countries
(Source: MCGC Perspectives, 2018)
The organization Duque Papetiers Gros is looking for opportunities to expand its business in
Europe. Before setting plans for expansion it is important for the organization to analysis various
external macro factors. This helps the organization the potential risks and opportunities. In the
table given above, the 12 nations have been considered and the per capita expenditure has been
evaluated regarding buying of stationery items. In the first three countries given on the table, the
per capita expenditure is the highest. In Austria, Germany and Switzerland the expenditures are
€35m, €35.20m and €35.50m respectively. The rates of expenditure provide a brief idea that
opening up stationery products manufacturing in these countries is a profitable idea. Duque
Papetiers Gros can open up franchises in Austria, Germany of Switzerland as the growth options
are quite promising in these countries. With innovation and creativity in its products, the
organization can have huge market share in above mentioned countries. Countries like Hungary,
Slovakia and Italy do not seem to a promising market for the organization. According to the table
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