Duque Papetiers Gros: Expanding into the German Stationary Market

DUQUE ASSIGNMENT

TABLE OF CONTENTS
1. Introduction..............................................................................................................................................1
2. Analysis of Issues for Duque Papetiers Gros..........................................................................................1
2.1 An Overview of the Wholesale Stationers Market in Germany........................................................1
2.2 Annual Spending on Writing/Drawing Materials per Capita............................................................2
2.3Analysis of Duque’s last three financial years of sales data (2015-2017)..........................................3
2.4 Feasibility of Expanding to Germany & International Standards.....................................................5
2.5 Costs of a New Building....................................................................................................................7
2.6 Mean Value of Orders.......................................................................................................................8
2.7 Customer Satisfaction........................................................................................................................8
Conclusion...................................................................................................................................................9
REFERENCES..........................................................................................................................................10
APPENDIX................................................................................................................................................11
For question 2.3.....................................................................................................................................11
For question 2.6.....................................................................................................................................11

LIST OF FIGURES
Figure 1: Annual spending for writing and drawing material.....................................................................3
Figure 2: last three financial years of sales data..........................................................................................3
Figure 3: Mix pie chart for financial year 2016 and 2017...........................................................................4
Figure 4: Scatter diagram for three years....................................................................................................4
Figure 5: Formula used in Excel..................................................................................................................7
Figure 6: Total sales...................................................................................................................................10
Figure 7: Formula used to total the values.................................................................................................10

LIST OF TABLES
Table 1: Pros and cons.................................................................................................................................5
Table 2: Parameters for CUMIPMT function..............................................................................................7

1. Introduction
Duque Papetiers Gros is France based organization mainly dealing in stationary products and services.
The organization is seeking to improve and expand the business operations in the Germany. Presented
report will discuss the issues and trends in the German Stationary market those can be used by the
organization to forecast the business opportunities in the country. Also the writing/drawing Materials
related annual spending in the country will be discussed and analysed along with three financial year
sales analysis. Forecasting will be completed for next two years on the basis of the data interpreted from
various types of graphs. Also the feasibility to expand the business in Germany and Belgium will be
discussed with application of various standards on the industry. Cost for the new building will be
calculated with the help of the Excel formulas. Mean values and customer services feedbacks will be
discussed for the organization. Recommendations will be provided to improve the questionnaire format.
2. Analysis of Issues for Duque Papetiers Gros
2.1 An Overview of the Wholesale Stationers Market in Germany
German stationary market as annual turnover of €14.8 billion in which individual’s spending on the
stationary product is more than €182 per year. It means that the country has stable stationary market.
Also the business has increased to 3.5% in year 2015. 70% of the stationary business in the country has
achieved the increment in the product supply. Domestic demand of the stationary product is increased to
2.5% whereas annual demand in internal market is increased by 5% (MGCC magazine, 2018).
Key trends and potentials
General and writing instruments in the German stationary market has achieved significant share.
However, the vast range of products has also faced challenges some specific sections. For example,
digitalization has impacted the sales of paper and paper based products like file holders etc. However, it
has boosted the sales of office and writing instruments to the next level with 5% increments. HBC also
commented that the trend will be continued in the upcoming few years and businesses can inject their
strategies in stationary market.
Also the recent trend to sale directly to the customers is increasing and business to business relationship
is less promoted. The organizations are increasing the business scope wit direct sales to the commercial
customers (German stationary market, 2018). However, there is also large number of specialized
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retailers in the country. Retailers are using e-commerce to expand their customer base and profitability.
Also the recently conditions of the economy in the country was not so adequate in term of employment.
The issue of unemployment as supported the lower cost on the manufacturing and marketing practices of
the organizations.
Therefore, industry has need of dynamic practices with improvements in the quality of products and
services. The organizations also can become more innovative and customer oriented to cope with
changing business context.
2.2 Annual Spending on Writing/Drawing Materials per Capita
With the use of e-commerce businesses in the Germany and France, the industries have achieved high
expansion in business operations for high profitability. According to the graph, it can be said that in year
2015, individual member in the Germany has annual spending of 35.2 € whereas the people in France
has 28.3 €. Currently the market share of the Germany stationary businesses is around 17% and it is
expected that it will continue in the upcoming years.
From the graph, it can be said that German market is second largest stationary market from the given
countries. However, the gap in revenue and annual spending is not so effectively less than Switzerland.
In writing instruments, the German market has highest share of the market through the variety of the
pens like fountain pens, ballpoint pens, felt-tipped pens and roller ball pens. Also the drawing material
like canvas papers is increasing in use (Paper market in Germany, 2018).
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Figure 1: Annual spending for writing and drawing material
2.3Analysis of Duque’s last three financial years of sales data (2015-2017)
Excel spreadsheet
Figure 2: last three financial years of sales data
3

Mixed pie chart
Figure 3: Mix pie chart for financial year 2016 and 2017
Scatter diagram
Figure 4: Scatter diagram for three years
4

From the above scatter diagram, it can be interpreted that low-cost printers has not achieved any changes
in the sales in the year 2016 and 2017. Also the sales of the office furniture, shredders and paper based
products have no improvements in both years. But it is determined that the writing and drawing material
has achieved effective growth in year 2017 in comparison of the previous year. Also printer cartridge
and general office goods have achieved increased sales in comparisons of the previous years. However
in comparison of the year 2015, low-cost printers have achieved high sales in two consecutive years.
Also the variation writing and drawing equipments, paper based products and shredder is high in 2016
and 2017 in comparison of previous years.
Forecast of the sales in 2018 and 2019
From the analysis of the scatter diagram, it can be said that the industry will have high demand of the
office furniture and writing and drawing material in the upcoming years. Also the demand of the low-
cost printers might be increased. There are too many fluctuations in the printer cartridge and general
office supplies so that the sales of the products cannot be forecasted in upcoming years. Therefore, the
organizations can focus on the writing and drawing materials.
2.4 Feasibility of Expanding to Germany & International Standards
Table 1: Pros and cons
Should I expand my business to Belgium & Germany?
Pros Score/10 Cons Score/10
The industry in Germany has root
in innovation and creativity so
that organization can lead the
competitive advantages.
8 Dynamics of digital technology
and competitive advantages.
5
Quality is preferred in
comparison of prices.
7 Recent recovery from the
economic crisis.
6
Recognised brands in the market
have less risk of competition.
8 Local market and brand
establishment related issues.
6
Stable economy and growing 9 High traffic of businesses in 9
5

personal spending on stationary
products.
market.
Adoption of technology for direct
selling to customers.
7 Online business practices and
reduced business to business
function scope.
8
Increasing demand in domestic
as well as international market for
products.
9
Suitable business conditions for
low cost operations and high
reach to customers.
8
Fluctuating but leading market
for specific products and services.
6
Total Pros 62/80 Total Cons 34/50
Average Pros 77.5 Average Cons 68.00
Application of international standards
Duque’s activities can consider the following international standards to achieve the competitive benefits
in the German stationary market:
ISO 85: It is mainly related to the use of paper technology for the various kinds of productions in the
country. For example, the standard enforces the organizations to use the paper technology which is
recyclable and reusable. It helps the organization to become socially liable and responsible.
ISO 9001 and ISO 14001: According to both of the standards, the organizations have to meet the
environmental challenges and issues at first in comparison of the growth and expansion of the business
functions. The standards help to achieve a sustainable competition environment and business operation
management (Heras‐Saizarbitoria and Boiral, 2013).
ISO 4046: The standard has focus on the classification of the technology and use of the material so that
commercial as well as personal use can be classified properly. It is also required to implement in the
organization to avoid conflicts with misuse of the technology.
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2.5 Costs of a New Building
Monthly cost of a 30-year repayment mortgage of £200,000
The organization has total cost of the €200,000 to build the new building. If the organization takes the
building with this principle amount for the next 30 years with annual interest rate of 10% then
organization has to pay an amount of €1755.14 per year as interest rate. The organization has total
interest amount as €430,184.86 and therefore the amount for the repayment becomes €630,184.86.
Therefore, the organization has to pay a large amount of interest on new building.
Suppose the organization has paid the interest in each month in comparison of the annual interest then
the monthly interest becomes 10/12= 8.3%. In this manner, the organization has less successive amount
for the interest at the end of the year. Total payment at the end of the month will be €1509.57. Also the
total amount will become €342,061.54 as interest amount.
The organization also can use CUMIPMT function in the Microsoft excel with the following details to
calculate the result.
Table 2: Parameters for CUMIPMT function
Parameter Value
Annual rate 10 (Only in number)
NPR (time in month) 360 months
PV (Principle value) 200,000.00
Starting month 1 (January)
End time 30 years or 360 months
Type 1 (as paid in sating of month)
I=APR/100 when the interest rate is paid monthly in comparison of the yearly payment.
Figure 5: Formula used in Excel
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2.6 Mean Value of Orders
With the average function, mean value of the interest, principle amount at the end of each month and
overdue balance can be calculated. For example, the mean value of the interest for the organization is
€950.170 over the 30 years. The average function of the Excel can contain the range of the numbers
those are required to determine the mean value. Also the in-build function of the Excel can
automatically calculate the count of the numbers. Total sum of the number is divided by the count of the
numbers in the selected data and result is generated in the defined cell. In this manner, the average of the
all other fields can be calculated.
It includes the last month of the payment in which interest has reach to zero value. If the row is avoided
then the average value can be calculated on the 359 months and average or mean value will become
€952.817.
Also the Donald has right assumption that the mean value of the 50 random orders will become €230
with standard deviation of €43. All the orders are near to the mean value and difference among the
sample value and mean value has deviation of €40 which is very near to the actual deviation if
calculated over the 50 random orders.
2.7 Customer Satisfaction
Customer satisfaction is essential in the organization. Presented questionnaire sample is not effective to
achieve the customer expectations as the form of mail attachment. Therefore the organization can use
the following recommendations to ensure that most of customers and employees are participating to
answer the questionnaire in effective manner:
 Rather than to use the questionnaire as the attachment to the mail, the organization can use the
online survey forms and websites those will help to attach only the link of the website in the
main. It will help to direct the users for the digital forms those are easy to form (They will not
bothered to take printout to add ticks and then re-scan to upload on mail).
 The organization can use some of the explanatory input boxes in questions or at the end of the
questionnaire to encourage the users to show their expectations in the improvements of the
questionnaire. The input boxes also can be used to improve the answering (Baumann et al, 2012).
 Alternative approaches for the questionnaire delivery and submission can be supported to
enhance the engagement of the respondent.
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Answer analysis
To analyse the answers of the 20 respondent for the third question, the organization can use the Excel
sheet in which answers are noted to calculate the mean value. Answers from all respondent can be
calculated with the use of average function. For example, the average of the response for question 3
from Customer service related answer is 3.5 which means that they are satisfy with the services and
operations of the organizations. The overall response is between good and excellence. The result can
help the organization to achieve satiability in the services to ensure the same experience to them in
nearby future.
Also quality staff has rated as good. They have rated less than the customer services. It means that they
are seeking for further improvements in the services and operations. Also they are seeking for more
effective questionnaire format. Sales staff has achieved satisfactory answers. They assume that present
services are excellent to the business requirements.
However, the feedback from the price value is considerable. Therefore the pricing of the products and
services should be improved to achieve the competitive benefits. The organization has to focus on the
more effective pricing policies and strategies.
Conclusion
Presented report has been used capabilities of the Microsoft Excel application to support the business in
decision making process. The organization also has discussed the issues and trends in the German
stationary market so that organization can understand the potentials to reach the competitive benefits.
Report also has been concluded that German market has high scope for the businesses dealing for
writing and drawing material. The country has effective benefits for such countries in next two years.
Also cost of the building and means values for the orders have been calculated to assist the business for
decision making process. From the report, it is concluded that organization has good benefits and scopes
to invest in German stationary market.
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REFERENCES
Books and Journals
Heras‐Saizarbitoria, I. and Boiral, O., 2013. ISO 9001 and ISO 14001: towards a research agenda on
management system standards. International Journal of Management Reviews, 15(1), pp.47-65.
Baumann, C., Elliott, G. and Burton, S., 2012. Modeling customer satisfaction and loyalty: survey data
versus data mining. Journal of services marketing, 26(3), pp.148-157.
Online
German stationary market, 2018 [PDF] [Accessed Through]
<https://www.marketresearch.com/seek/Stationery-Germany/119/1290/1.html> [Accessed On: 9th
March, 2018]
MGCC magazine, 2018 [PDF] [Accessed Through]
<http://www.malaysia.ahk.de/fileadmin/ahk_malaysia/Perspectives/MGC047-
Mar.Apr16_iPAD.pdf> [Accessed On: 9th March, 2018]
Paper market in Germany, 2018 [PDF] [Accessed Through]
<https://www.messefrankfurt.com/content/corporate/frankfurt/en/media/consumergoods/
paperworld/frankfurt/texte/branche-markt-papier-buerobedarf-schreibwaren-press.html>
[Accessed On: 9th March, 2018]
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APPENDIX
For question 2.3
Figure 6: Total sales
Figure 7: Formula used to total the values
For question 2.6
STDEV formula is used to calculate the standard deviation in the Microsoft Excel
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