Duque Case Study | Assignment

DUQUE CASE STUDY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Germany: Overview of stationery market...................................................................................1
TASK 2............................................................................................................................................2
TASK 3............................................................................................................................................2
A. Assessing sales.......................................................................................................................2
B. Reflecting mixed pie chart of each product category (2016 and 2017).................................3
C. Extracting Correlation Coefficient.........................................................................................4
D. Prediction of sales 2017 and 2018.........................................................................................4
TASK 4............................................................................................................................................4
A. Pros and cons of business expansion.....................................................................................4
B. Mentioning international standards........................................................................................5
TASK 5............................................................................................................................................7
A. Monthly cost (30 year repayment mortgage).........................................................................7
B. Recalculating monthly cost with application of interest rate loan at each month..................7
TASK 6............................................................................................................................................7
Mean value of the orders at 5% significance level.....................................................................7
TASK 7............................................................................................................................................8
a. Advice to increase the responses from consumers.................................................................8
b. Descriptive statistic and analysis............................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
APPENDICES...............................................................................................................................11
Appendix 1................................................................................................................................11

INTRODUCTION
The Duque Papertiers Gros is small family stationery business which is owned by Donald
Duque as it does not sell stationery items directly to public. The present report will provide brief
overview of stationery industry of Germany on basis of MGCC perspective. This report will
provide graph with context of annual spending on writing drawing materials per capita of EU
and various product category of three years. In the similar aspect, it will articulate about total
sales, mixed pie chart along with correlation coefficient and predicting sales of 2018 and 2019.
This will be evaluating business expansion in Belgium and Germany on basis of its pros and
cons and implication of numerous international standards of Duque. Furthermore, it will be
evaluating mean order and method for improving survey responsive rate along with their
descriptive statistics.
TASK 1
Germany: Overview of stationery market
It has been evaluated by Trade association of Office supply and writing and drawing
materials that stationery industry of Germany is positioned in well mannered where its total
turnover is higher than €14.8 billion per year which is equal to spending more on annual aspect is
€182. It had been traced that €35.2 is spent on specific category of product is about writing and
drawing materials of Germany at its second position among European countries. In the similar
aspect, company's positive attitude has been underpinned in industry of stationery with fact as of
more than 70% with increment in sales of year 2015 (MGCC perspectives, 2018). Furthermore,
Association of Germany Stationery brands has total turnover of this German industry grew
through 3.5% among 2014 and 2015. It is outcome for raising domestic demand with attainment
of growth of 2.5% along with abroad demand through 5%.
There is observance of trends and potentials of brands of German stationery throughout
world as per positive image, these brands in instruments of General and writing has grabbed
significant market share against its various private labels. In contrasting, this industry consists of
very wide range of products along with challenges and developments. The products related to
paper like document folders had continued path of decreasing turnover as this category is also
suffering due to raise of digitalisation in work life and private life as well. On the contrary
aspect, paper and paper related products along with brands of multiple product category has
faced rate at positive aspect like office supplies and writing materials both are attaining growth
1

of 5% in 2015 and this trend wills continue in year 2016 and so on in current year (Germany -
Stationery - Market Analysis, Forecast, Size, Trends and Insights, 2018).
TASK 2
Annual spending on writing and drawing materials per capita
Country Yearly spending
France 28.3
Germany 35.2
Austria 35
Poland 8.5
Italy 18.6
Switzerland 35.5
Hungary 9.6
Interpretation: The above graphical format is about annual spending of European Union
countries especially of Germany and France. In this segment, Switzerland is leading with 35.5
and second position is of Germany and then Austria. In these European countries, Poland is at
last position followed through Hungary and then Italy. In the similar aspect, it had been traced
that Germany had gained significant market share in segment of writing and drawing
instruments.
2

TASK 3
A. Assessing sales
(Table in Appendix)
There is representation of total sales of year 2015, 2016 and 2017 of each product
category such as paper based supplies, office furniture, shredders and printer cartridges etc. It has
been assessed that printer cartridges were about 73000 whereas in 2016 it rose by significant
proportion but in 2017 it decreased. This trend continued in category of general office supplies as
inclined forwards by 2000 but in 2017 it declined by double as of 4000. In the similar aspect, the
category of low cost printers raised in 2016 which was constant in year 2017. The office
furniture is of 77000 which faced increment in 2016 and 2017 as well.
In the category of shredders which is increasing in 2016 and no movement in 2017 where
paper based supplies is similar to shredders and most crucial category is of writing and drawing
instruments which is increasing every year. Hence, it could be evaluated that writing and
drawing material and office furniture both are increasing from 2016 to 2017. Thus, it has been
evaluated that in year 2016, its sales increase by huge proportion such as approx 10% whereas in
2017 it decreased by approx 2% which could be easily viewed (He and Lu, 2018).
B. Reflecting mixed pie chart of each product category (2016 and 2017)
3

C. Extracting Correlation Coefficient
Interpretation: Coefficient is referred as technique used with objective of measuring
relationship among two or multiple variables. In case if two things are correlated then it shows
they are varying together. In simple words, it is statistical measure for extracting strength of
relationship in relative movements of specified variables as it is not capable for capturing non
linear relationships in these variables (Baak, Koopman and Klous, 2018). In the above table,
there is extraction of correlation coefficient among year and sales which is of 0.73 which is
moving towards quite strong positive relationship as it could be elaborated both variable will be
moving in similar aspect such as sales and year.
D. Prediction of sales 2017 and 2018
The equation derived from scatter plot is about €6500 (x) + €162000 with prediction for
the context of 2018 and 2019. In the similar context X will be eliminated by 4 and 5 in 2018 and
2019 respectively with outcome of €188000 and €194500.
TASK 4
A. Pros and cons of business expansion
Business expansion in Belgium and Germany
4

Pros Score/10 Cons Score/10
Availability of
resource 9 Degrading quality 6
Technology
upgrading 8 Cost control 7
Enhancing customer
base 8 Diversification 8
Distribution 8
High employee
turnover 5
Total Pros 33 Total Cons 26
Average Pros 8.25 Average Cons 6.5
Net Outcome= Total Pros – Total cons
33 – 26
7
Interpretation: There is appropriate evaluation of pros and cons of business expansion in
Belgium and Germany with scoring from 10. On basis of scores, resource availability,
technology up-gradation, distribution and for purpose of enhancing customer base as well with
aggregate of 33 as its average is of 8.25. In the similar aspect, its cons are even scored like huge
turnover on employees, quality degradation, diversification along with cost control with sum of
26 along with average of 6.5. In this context, its outcome is 7 which is positive so it could be
elaborated that Duque will gain advantage for business expansion in Belgium and Germany in
efficient outcome.
5

B. Mentioning international standards
International standards are developed through organizations of international standards
which is available with consideration and application in worldwide. The international standards
are stated below:
 ISO 9000 family Quality management: These standards directly addresses different
aspect about quality management as it consists of best known standards of ISO. It gives
guidance along with tools for business entity and for ensuring about services and
products in consistent aspect with requirement of customer where quality is improved in
efficient manner. It sets criteria for system of quality management which could be
certified. This is based on multiple principles of quality management as it comprises
strong emphasis on consumer.
 ISO 50001 Energy management: The application of energy in efficient manner helps in
saving money and for purpose conserving resources and to tackle climate changes. This
will be giving support to business entities in each sector for using energy in the best
aspect for purpose of development of system of energy management.
 ISO 14001 Environmental management: It gives multiple practical tools for numerous
organizations for purpose of managing environmental responsibilities. In the similar
aspect, it supports standards and lays special emphasis on particular approaches like
audits, labelling, communication along with appropriate analysis of life cycle and
environmental challenges like alteration in climate (International Organization for
standardization, 2018).
 ISO 45001 Occupational health and safety: The occupational injuries and diseases are
very significant especially for employers and economy as well. This will help business
entities for decreasing burden on basis of framework for purpose of improving employee
safety and to decrease risks at workplace and creating better along with safe working
conditions throughout the world. In this context, it was developed through committee of
occupational safety and health experts along with following various approach of generic
management system like ISO 9001 and ISO 14001.
 ISO 31000 Risk management: There are various business entities which are impacted by
risk along with multiple consequences with context of professional and performance
reputation along with safety, societal and environmental outcomes. Its guidelines helps in
6

giving principles along with process and framework for purpose of risk management. It
could be also used with business entities regardless to its activity, size and sector.
TASK 5
A. Monthly cost (30 year repayment mortgage)
B. Recalculating monthly cost with application of interest rate loan at each month.
TASK 6
Mean value of the orders at 5% significance level
7

Null Hypothesis: There is no significant difference between the mean value of the of order in
terms of the externals value.
Alternative hypothesis: There is significant difference between the mean value of the of order
in terms of the externals value.
Hypothesis at 5% significance level:
Value of p Higher than 0.5 Accept null hypothesis
Value of P Less than 0.5 Accept alternative hypothesis
The mean value of order received and standard deviation the value of the p is
determined as 0.23 which is lower than then 0.05 (Aczel, Palfi and et.al., 2018). This gives an
acceptance to the alternative hypothesis establishing a significance between variables. The belief
of the owner is correct.
TASK 7
a. Advice to increase the responses from consumers
There are many ways by application of which the feedback responds from the consumers
can be increased. Every person gets attract towards prize and money so offering incentives and
reward for filling the questionnaires or the feedback form (Kurtz and et.al., 2016). This can be
an innovative method to enhances responses from consumers. Another methods that can be used
by Duque is to offer the survey through multiple channels. This can increase the approach and
extent of connection with consumers.
b. Descriptive statistic and analysis
Interpretation: From the above table it can be interpreted that the responses from the
consumers were good for the sales services they had received. This fact has been established as
8

from the descriptive statistics revels the highest mean value and Standard error. The median
value is same for the sales staff services and consumer services rather it is the lowest for price
value of the goods. This can be seen from the above table that the heights standards deviation is
calculated for Sales staff and it is lower for quality of products and services this means that the
quality of the products sold by the company of goods quality and consumers feels that there is
not many changes in quality of goods. For the above calculation the stander error is less than 0.2
which is not major so this s not a cause for concern for Duque.
CONCLUSION
From the above report it can be concluded that the expansion plan of the business in
Germany can be considered as this it has been interpreted in the above report that stationary
market is German still have potentiality of growth. The graph and pie chart present in the report
gives an interpretation that the wholesale market of the Germany is Going and it is second in the
number in context of per capita spending in drawing and writing material. The pros and cons
gives a resultant in favour of the expansion idea. Furthermore, the standards defined by ISO have
been presents to Duque which it needs to be abide with for going into international market. In the
lase section of the report methods are suggested to him through which the feedbacks form the
consumers can be increased. This has also been interpreted that customers are satisfied with the
sales staff of the organisation but they do not feel that products are worth for the prices paid for
the goods purchased by them.
9

REFERENCES
Books and Journals
He, C. and Lu, K., 2018. RISK MANAGEMENT IN SMES WITH FINANCIAL AND NON-
FINANCIAL INDICATORS USING BUSINESS INTELLIGENCE
METHODS. Management. 16. p.18.
Baak, M., Koopman, R. and Klous, S., 2018. A new correlation coefficient between categorical,
ordinal and interval variables with Pearson characteristics. arXiv preprint
arXiv:1811.11440.
Aczel, B., Palfi, B and et.al., 2018. Quantifying support for the null hypothesis in psychology:
An empirical investigation. Advances in Methods and Practices in Psychological
Science. 1(3), pp.357-366.
Kurtz, T. W. and et.al., 2016. An alternative hypothesis to the widely held view that renal
excretion of sodium accounts for resistance to salt-induced hypertension. Kidney
international. 90(5), pp.965-973.
ONLINE
Germany - Stationery - Market Analysis, Forecast, Size, Trends and Insights. 2018. [Online].
Available through <https://www.indexbox.io/store/germany-stationery-market-report-
analysis-and-forecast-to-2020/>.
International Organization for standardization. 2018. [Online]. Available through
<https://www.iso.org/home.html>.
MGCC perspectives. 2018. [Online]. Available through
<http://www.malaysia.ahk.de/fileadmin/ahk_malaysia/Perspectives/MGC047-
Mar.Apr16_iPAD.pdf>
10

APPENDICES
Appendix 1

12