Analysis of Sales Data and Pros and Cons for Expanding Business of Duque Papetiers Gros

This report analyzes the sales data of Duque Papetiers Gros for the last three years and provides a pros and cons table for expanding the business to Belgium and Germany. It also includes a calculation of monthly cost for 30 years and descriptive statistics for customer satisfaction.

Report for Duque Papetiers Gros

1. INTRODUCTION
Nowadays, each business requires to analyse data set by implementing data set via
appropriate statistical tools. As, it is rightly observed that assessment of data is the critical thing
which ultimately assist the business operations in making trends and execute decisions. This
assignment is based upon Donald Duque case scenario which is the small stationary company
and operates in Northern France which are managed by the family. Duque focus his business on
the wholesale trade instead of retail. It offers various products such as printer, general office
supplies, furniture for the commercial purpose, drawing materials and so on. This report is based
on assessing cited company’s sales for last 3 years for making an effective decision.
Additionally, future business about its expansion would be assessed via Pro & Cons methods and
research outcome is going to be assessed via basic statistical tools.
2. ANALYSIS OF ISSUES FOR DUQUE PEPTIERS GROS
2.1 Overview of wholesale stationers market in Germany:
By evaluating the performance, this is rightly observed that the Germany is leading in the
stationery market. Henceforth, there are diverse organizations which renders consumers along
with the quality stationery goods which are: Staedtler, Lamy, Stadbido etc. Although, stationery
market in Germany remains in the top. As, company’s new products’ are emerged in customised
way which could lead to gain the sustainability (MGCC Perspective - German Chamber of
Commerce and Industry. 2016). Association for Office Supply and Writing Material described
that industry spanned its annual revenues over €14.8 billion by way of improving individual
spending more than €182 per year. Among these, €35.2 is consumed over writing and drawing
material. In Europe, Germany ranked second after Switzerland.
According to MGCC Perspective - German Chamber of Commerce and Industry, (2016),
Domestic demand from residents and overseas market at growth rate of 2.5% and 5% which
displayed effective growth of 3.5% in 2014-2015.
This has been stated that there are around 2200 wholesale companies which are now
working in the German market which comprises services like- office supplies, paper, writing
instruments and many more which have net income of less than €500,000. Their main aim is to
render consumer a quality stationery product. B2B intermediaries are helping commercial
consumers. There are so many techniques such as: merger and acquisitions, which reduce the
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wholesalers’. In addition to this, there are certain number of specialist retailers who are dealing
in labelled and standardised quality items.
2.2 Annual Spending on Writing Materials per Capita
The Above mentioned graph reflects that Germany is considered to the second largest market in
the Europe which comes after Switzerland and spending per capita income of €35.2 on writing
and drawing material. This majorly enhance their various products and services in their portfolio.
In addition to this, supermarkets comprise various stationery products in their store. They are
entitled to capture mass market consumers rather than professionals or premium goods services,
magazines, newspapers, concert tickets, editorials and others that can’t achieved at traditional
stores.
By having proper research, this can be rightly observed that out of consumer spending, is
€35.2 which is concerned to writing and drawing materials. Although, online offerings of
products or services renders full comfort and convenience to potential consumers. Henceforth, it
is one of the key cause due to which now people are tending to buy online rather than going in
the store. Electronic marketing made crucial changes in the market which enhanced orders via
mails and online ordering which holds more that 17% market stake. Enhancement in the
employment rate improve consumption power and emerge demand for stationery products. By
taking into consideration of industry trend, this is reflected that it would emerge in the near
future.
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2.3 Analysing the sales data of Duque’s for the last three financial years (i.e., from 2015 to 2017)
A). Calculation of aggregate sales
REFER TO APPENDIX 1
According to results, this was found that in 2014, total turnover was €164,000 which was
increased to €182,000 and €178,000 in 2015 and 2016 by 10.30% and 2.20% respectively. By
analysing, total sales of 3 years, this was found that company gathered an optimum sale by way
of supply of writing and drawing material and shredders. Although, least value was generated by
the low cost printer.
B). Pie Chart
C). Scatter diagram to find out correlation coefficient
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Correlation is defined as a sound statistical tool which is applied for identified link which
emerges between two variables. Outcome of correlation analysis depict moderate link between
variables like year and sales. Additionally, while correlation emerge within range of .25 to .75.
henceforth, this can be considered as the moderate. This is rightly observed that sales would
improve positively in the upcoming period of time.
D). 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
Note: The amount €162000 was taken on assumption basis which emerged by using same scatter
diagram.
2.4: Pros and cons table
It has been analysed that overall case situation in the Duque is basically carried in their
overall operation in Northern region of France. It would be associated with the facts that
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Germany is considered as one of the reliable sources for operating their activities in more
sensible manner. It has been used to decided effective outcomes through asking question from
several respondents in Germany and other parts of Belgium.
Should I expand my business to Belgium & Germany?
Pros Score/10 Cons Score/10
Effective skills to attain economic
of scale 8
Minimum range of creative
capability and poor delivery
time 4
A team members of well organize
or talented people 7
Inappropriate preparation of
budget that are made for
increasing moral 5
Most of the time company used to
relies on resources 7
Regular evaluation of team
performance 4
Active communication assistances
and ability 8
Face to face interaction
regarding the new rules and
regulations 5
Accurate enough in facing tough
pressure and tried to attain goal in
allotted time 7 Regulation of operations ability 6
Total Pros 37 Total Cons 24
Average Pros 7.4 Average Cons 4.8
Conclusion: By evaluating company’s pros and cons, this is rightly observed that Donald Duque
should need to expand their business to Belgium and Germany. As, it has more opportunities for
expending its business in the stipulated areas.
2.5: (a): Calculation of monthly cost for 30 years:
It is essential for the company to evaluation to the total values they are going to the get
after the completion of 30 years. It can be computed which are mentioned as under:
Particulars Figures
Time 30 years
Loan payment = Total loan amount /
Discounting factor =
5

= € 21215.85
Monthly repayment € 21215.85 / 12
= €1767.98
(b): Re-computation of using loan on the interest amount
Time duration: 30 years
Rate of interest for each month=10%
Total monthly repayment= 10%/12= 0.0083
2.6:
Data analysis
It is one of the crucial process done with the motive of attaining overall aim of discovering
valuable data so that effective decision can be made in near future time. The best way of
conducting a well organize data analysis is by the use of qualitative and quantitative techniques
in order to increase productivity and business plan. The primary reason for examine behavioural
data and tools to determine organizational requirements during the period of time. Likewise, the
finance manager would need to keep 100 of total orders in each month. On that basis a total of 50
Sample size that would be taken into consideration with standard deviation of 43. In this case,
Null hypothesis for the mean value of petrol is been collected as 240 per month. On the other
hand, alternative hypothesis is not equal to 240. It can be further exampled with the use of below
mentioned analysis:
Significance level: 5%
Standard deviation is the statistical, measure which would be presented to examine the use of
quantifiable amount of variation in the given data series. In case the value is low it means that
the number if very close to average. A high rate can be the reason for spread. σ=43
SE: Standard deviation / √𝑛
= 43/ √50
= 43 /7.07
= 6.08= 6.
In context to analyses the outcomes, the research would need to be around the class
interval of (μ – 2SE, μ + 2SE)
Putting the values in the above formula;
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= 240 – 2*6, 240 + 2*6
= 228, 252
Hence, the outcomes show clearly that the 95% of total sample means is depend within
the class interval, the survey would say that to accept H0 and reject H1.
TASK 7
(a):
Evaluating overall customer responses is to determine their post-buying behaviour and
attain valuable review which is crucial for the current period of time for the purpose of making
essential decision in coming time (Piekkari, Welch and Welch, 2014). It is crucial for the Duque
company to adopt valuable system which would be use to bring plenty of advantage in specific
level. Certain issues as well as difficulties could need to take into account for effective decision
making. The vital detail for every one development in increasing in their aggregate deal and
connected with addition to wide number of results that are attain within the set limited period of
time. Likely, some of the financial incentives that could be offered to them in motivated them to
share their post-buying experiences with the firm so that company can serve them in better
manner in coming future.
(b): Descriptive statistic for the given variables
Refer to Appendix 2
According to the given information which are related with the customer services and
sales members reported with the mean value of 3.5 and 3.45. it is middle range of 3 and 4. The
results found on the customer related factors as quite excellent that means positive satisfaction
from maximum number of respondents. These data cannot show a very high rate of standard
deviation as it would observe as 0.76 and 0.83 respectively (Holcomb, 2016). On the other hand,
better quality of products and services can be marked to 3.15 that can be ranked as positively
presented in the mentioned company that required to put some efforts and measure modify the
quality by offering high quality products and services. It is more clear that maximum number of
customer believe accurate value for capital and that to have high prices which are charged by the
company.
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CONCLUSION
From the above mentioned report, this can be rightly said that domestic and foreign demand
are increasing due to providing quality products and diversified product portfolio of
organisations which have sound position in the German market. As all the stationery products are
in the huge demand and Germany comes second position in Europe. Although, Duque
performance reflects huge profits from writing and drawing material items. In customer
satisfaction survey, this was found that organisation requires customer’s affordability, own
profits goals, rivals’ product prices and other before going to set the price.
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REFERENCES
Books and Journals
Holcomb, Z.C., 2016. Fundamentals of descriptive statistics. Routledge.
Piekkari, R., Welch, D. and Welch, L.S., 2014. Language in international business: The
multilingual reality of global business expansion. Edward Elgar Publishing.
Online
MGCC Perspective - German Chamber of Commerce and Industry. 2016. [PDF]. Available
through: <http://www.malaysia.ahk.de/fileadmin/ahk_malaysia/Perspectives/MGC047-
Mar.Apr16_iPAD.pdf>.
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APPENDIX
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