Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 Discussing overview of German Wholesaler stationers market.................................................1 TASK 2............................................................................................................................................1 Enumerating annual spending by people of European nations...................................................1 TASK 3............................................................................................................................................1 Listing and explaining sales information of last three years of financial performance..............1 ..........................................................................................................................................................3 ..........................................................................................................................................................3 TASK 4............................................................................................................................................4 Enumerating expansion feasibility to German Wholesaler stationers market............................4 TASK 5............................................................................................................................................5 Providing calculation of costs of new building of firm..............................................................5 TASK 6............................................................................................................................................6 Assessment of mean value of orders by formulating hypothesis................................................6 TASK 7............................................................................................................................................6 Assessment of customer satisfaction with reference to firm.......................................................6 TASK 8............................................................................................................................................8 CONCLUSION................................................................................................................................8 REFERENCES................................................................................................................................9
INTRODUCTION Duque is a France based company which is owned by Donald Duque and owns a small stationary business in in northern France. Duque don't sell stationary directly to public but this business have built a hugecustomers base within 50 years. This report discuses about the overview of the entire stationary market of Germany (Pérez-Fortes and et.al., 2016). This report also discuses about the annual spending on the drawings materials per capita in seven countries of Europe. This report also discuses about the analysis of last three financial years on the sales of Duque. This report also discuses about the pros and cons of Duque for carrying out the business in Germany and Belgium. Task 1 1. Overview of Germany's wholesale stationary market Germany's stationary market is well positioned. As per the associations of trade of writing materials and office supply the total turnover Germany's stationary market is 14.8 billion Euros annually. As per the report of the Association each individual is spending more than 182 Euros annually on their stationary (Pasaoglu and et.al., 2016.). The brands of Germany's stationary have good reputationin the Germany as well across the world. German stationary have gained a good size of market share due to its positive image. Stationary industry consists of a broad range of products and is continuously evolving.Due to digitization,paper related products like folders are declining significantly in the markets of Germany and has also decreased its turnover rates. There are more than 2200 whole sale companies of stationary in Germany as per the official statics of Germany. The turnover rate of half of these companies is less than 500,000 Euros and this also includes the whole sellers too which are selling office supplies, writing instruments and papers to business to business intermediaries. There has been decrease in the total number of stationary whole sellersbecause of their merging with other companies and their decision of exit from the markets of stationary. Now the strategies of the wholesalers is that they are increasing the scope of their business by making a direct contacts with the customer in order to increase their sale of stationary (Ahlgren, Börjesson Hagberg and Grahn, 2017). Addition to the wholesalers in Germany there are other small stores of retailers 5500 in number and their turn over is more than 250,000 Euros each. As per the specialist of HBS the retailers that are selling good quality products can be easily recognized with the help of of the official labels which is been issued by the HBS and these labels are in-front of the shops. 1
Specialist retailers ofGermany is proving to be successful concept in selling the high quality stationery in Germany. Task 2 2.1 Seven European countries annual spending on stationary Graphical representation is the best way to simplify the numeric data in recent times. It helps in the clear understanding of facts and figures by taking the looks on the graphs. Graphical representation helps in the analysis of the entire data effectively. Interpretation:It can be interpreted from the given graph the Switzerland is on the top position in spending the 35.5 Euros on the stationary and is also the highest spending on stationary among the given European countries (Abdon and et.al., 2017.). It can also be interpreted from the given graph that after Switzerland, Germany comes on the second place in spending on the stationary which is equivalent to 35.2 Euros annually. It can also be interpreted from the above graph Austria is on the third position among the seven European countries in the spending on stationary and comes after Germany and is spending 35 Euros per capita. The fourth position is been occupied by France and is spending 28.3 Euros annually and also the largest grossing business market. Its is also interpreted that Slovenia holds fifth position among the seven European countries and is spending 20.4 Euros on their stationary annually and the difference is 7.9 Euros between Slovenia and France. Also on the basis of this analysis Italy comes in sixth position and is contributing 18.6 Euros annually towards stationary. At last among these seven European countries Slovakia comes at the seventh position among Seven European countries and Slovakia is spending 9.8 Euros and there is a much difference between Italy and Slovakia. 2
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TASK 3 Listing and explaining sales information of last three years of financial performance A) Sales revenue data B) Drawing mixed pie chart 3
C) Calculating Correlation coefficient and drawing scatter diagram 4
Interpretation- The performance of Duque Papetiers Gros has been analysed for last three financial years such as 2015, 2016 and 2017. The total sales in 2015 was 165000 which increased to 182000 and reach to 178000 in recent year. It can be assessed that firm has been performing good in the recent time period. Organisation is performing good as it can be seen from the recent sales data. For making further analysis of correlation, firm may be able to attain good sales in effective manner in Germany with amount of sales in long-term. For analysing this, correlation coefficient is opted for assessing how much amount of relationship exists in variables. It is one of the important measure for assessing sales revenue is whether good sales are accomplished over the years or not (Thomas, 2018). The correlation coefficient of company is carried out in which correlation comes to 0.73. The correlation is of two types developed by Pearson such as positive and negative correlation. It can be identified that range of correlation should be within + to -1 and value of correlation 5
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coefficient is 0.73 highlighting that there exist positive correlation among the variables under study. The criteria for evaluating is that if value arrives at more than 1, positive correlation and if comes less than 1, negative correlation prevails. Thus, 0.73 falls within range of 1 and as a result, positive correlation exists. It can be said that Duque Papetiers Gros has good performance in last three years. Furthermore, correlation coefficient comes to positive which effectively clarifies that German wholesaler stationers market will be fruitful for firm in attaining stated objectives in the best manner possible (Raik, Etzold and Haukkala, 2017). Thus, on behalf of sales performance, expansion to Germany seems to be feasible for company. Trend Analysis The trend analysis means to identify future performance of company with reference to past data of business in effective manner. In relation to this, trend analysis is calculated by using scatter diagram which is as follows- 2018 sales The equation is formulated with the help of scatter diagram, Y = 6500 x + 162000 Y = 6500 * 4 + 162000 = 188000 2019 sales Y = 6500 * 5 + 162000 = 194500 The trend analysis shows that firm will be able to attain good amount of profits in Germany as it is clarified that firm will 188000 of profits in 2018 and 194500 in 2019. TASK 4 4.1 German Market Feasibility Should I expand the business to Germany and Belgium? ProsScore out of 10ConsScore out of 10 Profitability5Cultural Differences5 6
Growth6Management problems6 Customers Satisfaction8Funding2 Competitive Advantage 4Company expenses4 Total Pros23Total cons17 Average pros5.75Average Cons4.25 Interpretation As per the analysis, the total spending on the stationary Germany comes at the second position among the seven European countries that mean Germany can prove fruitful for the companies in expanding the business in Germany. Duque Papetier Gros plan of expanding the businesses of Wholesale of stationary in Germany of stationary an proves successful for the companyas the business of stationary is expanding in Germany. As per the sales data of last financial years of the Germany, Duque Papetiers Gros has the high chances ofgenerating the huge sales for the company, as this businesses is expanding year after year in Germany. From the above table it can be interpreted that the average of pros is more than the average of cons which means that the company has more positive results than the negative results for the company in expanding the business in Germany (Dash and et.al., 2018). So the expansion of businesses in Germany can be fruitful for the Duque Papetiers Gros. Enumerating expansion feasibility to German Wholesaler stationers market B) International Standards ISO 14000- Environmental Management The environmental management provides clarity that firm is required that firm should be responsible for not harming nature in any manner (Brooks, 2018). The ISO standard should be followed by Duque Papetiers Gros so that operational activities may be done with ease. ISO 45001- Occupational health and safety It states that firm should not indulge in activities where employees are harmed. In simple words, if any incident takes place in premises, it is required that health and safety of employees should be prioritised. 7
TASK 5 Providing calculation of costs of new building of firm 8
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TASK 6 Assessment of mean value of orders by formulating hypothesis Hypothesis testing H0 = No statistical difference between mean order and sample mean H1= There is statistical difference between mean order and sample mean z = (x – μ) / σ = 240 - 230 / 43 = 0.23 The value arrived from z test comes to more than 0.5 leading to acceptance of null hypothesis. Moreover, it has been arrived with the help of normal distribution curve. TASK 7 Assessment of customer satisfaction with reference to firm A) Improving responsive rate The respondents should be provided with objectives behind questionnaire. It is suggested that vague and too broad questions should not be asked by company. Moreover, incentives should be provided so that they timely fill and revert back questionnaire. Thus, company will be able to attain good responsive rate. B) Statistics Statistics CUST SERVICEQUAL P&SSALES STAFFPRICE VALUE 1331 2332 3342 2311 4232 9
2433 3144 2322 4212 1422 2134 4441 3321 4212 2322 4332 4441 3332 4342 3321 Arithmetic Mean2.852.852.71.95 Standard Deviation1.03998987850.87509397991.03109548280.8870412083 Thus, it reveals that mean of price value is low which means customers want lower prices. By alleviating prices, good rating can be achieved. TASK 8 CONCLUSION Hereby it can be concluded that business expansion decision is required to be made with reference to proper market research and financial performance of company. It can be analysed that Duque Papetiers Gros will be able to meet good growth in the market as German market of 10
stationers is quite effective for firm. This is evident from the fact that people will be satisfied by writing and drawing materials are used in more quantum by people. Moreover, purchasing power of people in Germany is high as well which means that customers will be attracted in a better manner. On the other hand, correlation coefficient is 0.73 which means that strong relationship exist between variables. Moreover, Germany is second-most highly spent nation in terms of stationery products. Feasibility analysis carried out also has more pros in comparison to cons. The sales data of last years and trend analysis provides clarity that Duque Papetiers Gros will be able to attain good growth in the market and desired profits would be gained. 11
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REFERENCES Books and Journals Abdon, A and et.al., 2017. Techno-economic and environmental assessment of stationary electricity storage technologies for different time scales.Energy.139pp.1173-1187. Ahlgren, E. O., Börjesson Hagberg, M. and Grahn, M., 2017. Transport biofuels in global energy–economy modelling–a review of comprehensive energy systems assessment approaches.Gcb Bioenergy.9(7). pp.1168-1180. Brooks, R., 2018. Understanding thehigher education student in Europe: acomparative analysis.Compare: a journal of comparative and international education.48(4).pp.500- 517. Dash, S and et.al., 2018. Insurance market penetration and economic growth in Eurozone countries: Time series evidence on causality.Future Business Journal.4(1). pp.50-67. Pasaoglu, G and et.al., 2016. A system dynamics based market agent model simulating future powertrain technology transition: Scenarios in the EU light duty vehicle road transport sector.Technological Forecasting and Social Change.104.pp.133-146. Pérez-Fortes and et.al., 2016. Formic acid synthesis using CO2 as raw material: Techno- economic and environmental evaluation and market potential.international journal of hydrogen energy.41(37). pp.16444-16462. Raik, K., Etzold, T. and Haukkala, H., 2017. The northern European member states. InForeign Policies of EU Member States(pp. 37-51). Routledge. Thomas, S., 2018. Corporate performance of the Seven Brothers of the European energy market: Then there were five.Utilities Policy.50.pp.164-174. 12