Business Analysis of Duque Papetiers Gros: Expanding 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
2.4 Feasibility of Expanding to Germany & International Standards...........................................11
2.5Costs of a New Building...........................................................................................................13
2.6Mean Value of Orders..............................................................................................................14
2.7 Customer Satisfaction..............................................................................................................15
3. Conclusions................................................................................................................................17
4. Reference List............................................................................................................................18
5. Appendix....................................................................................................................................19
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1. Introduction
It is immensely important to analyze the prospects of business catering to any industry. When
business prospects are analyzed in an accurate manner, the valuable functioning of the company
can be evaluated. ‘Duque Papetiers Gros’ is an organization which manufactures stationary
goods. The organization wants to expand in other countries and therefore it needs to understand
the situations and the potential risks of the market where it wants to expand. The organization is
headquartered at Northern France. The organization has earned a considerable amount of profits
in the mother country now it wants explore the opportunities which lies in the markets outside
the geographical boundaries of northern France. The company has chances to expand its business
either in Switzerland or Germany. The organization possesses specialization in variety stationery
products. An accurate analysis of the market scenario of the above mentioned countries will
allow the company to know whether it is feasible to expand their business or not.
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2. Analysis of Issues for Duque Papetiers Gros
2.1 An Overview of the Wholesale Stationers Market in Germany
The MCGC report has stated that, in the domestic German markets, the demand for stationery
products is quite high. The organizations that produce stationary items in Germany, import a
high amount of stationary goods which indicates that German stationary products are quite
popular all around the globe. All the stationary products manufactured by German organization
have high quality. In addition to this, the products are innovation and creative in nature to satisfy
the current needs and trends among the consumers. Montblanc, Faber-Castell, and Lamy Stabilo
are some of the big names in the German stationary industry. The yearly turnover of the
stationary market in Germany is €15 billion. All around the world, the demand for German
stationary items is increasing and as a result the turnover for the industry is witnessing greater
heights.
Figure 1: Manufacturing of various stationary items in 2014
(Source: MCGC Perspectives, 2018)
The statistics regarding production of stationery goods in 2014 has been shown in the graph
given above. The cost of production of the selected items comes to approximately €510 million.
In the present scenario, the demand for stationery is quite high which sums up the fact that the
organization needs to incorporate innovative ideas in the products so that the demands of the
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consumers can be met as well as the competition in the market can be curbed (Kim, 2016). An
indistinct idea is provided by the export quotient of the German stationery products.
Figure 2: The rate of export of stationery items in 2014
(Source: MGCC Perspectives, 2018)
The graph provided here shows the rate of export of various kinds of German stationery products
all around of the globe. From the above graph it is evident that, the worth of the exported items is
€676million. The export rate and the rate of production provides am important fact that if a
company based in France wants to expand its commerce in Germany, the organization will get
ample chances to flourish.
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2.2 Annual Spending on Writing/Drawing Materials per Capita
(Refer to the appendix for the graph)
Figure 3: Annual worth of Stationery Items in 12 countries
(Source: MGCC Perspectives, 2018)
‘Duque Papetiers Gros’ wants to expand its operations in a country within Europe. When an
organization wants to expand its business, it is very important to analysis the market where it is
planning its expansion. This analysis helps the organization to assess opportunities and potential
risks. The yearly spending of 12 nations regarding stationery goods has been devised in the table
give above. In the first three nations given in the table the yearly outgoings regarding stationery
items is the highest. In Switzerland, Austria and Germany the expenditure is €35.50m, €35m and
€35.20m respectively. Looking at the expenditure rates of the countries mentioned above it can
be concluded that ‘Duque Papetiers Gros’ will get potential customers in these countries. The
organization should not consider the eastern European countries for expansion as the expenditure
rates regarding stationery items is quite low.
If the organization, decides upon to expand its business in Slovakia, Hungary and Italy, it won’t
be make to make a humongous amount of profit. Till now, the market of Germany has been a
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