Analysing Information and Data for Problem Solving: Duque Project

This report presents a comprehensive analysis of data for Duque Papetiers Gros, a wholesale stationer. It begins with an overview of the German wholesale stationers market, examining market trends and factors influencing the industry. The report then analyzes various data points, including annual spending on stationary materials, sales revenue, and correlation coefficients. It includes the creation of graphs and tables to represent the data effectively. Furthermore, the report provides financial analysis, including mortgage calculations and forecasting future sales. The analysis extends to assessing the company's potential for expansion, considering factors such as logistics, currency, and e-commerce. The report also suggests international standards relevant to the company's activities and concludes with recommendations for improving performance, based on the data analysis.

Analysing Information and
Data for Problem Solving

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Overview of the wholesale stationers market in Germany..........................................................1
TASK 2............................................................................................................................................2
Producing graph for representing annual spending on stationary material.................................2
TASK 3............................................................................................................................................3
a) Tabular analysis of information...............................................................................................3
b) Developing mixed pie chart representing sales of 2016 and 2017..........................................4
c) Associated correlation coefficient and its interpretation.........................................................5
d) Forecasting total sales for 2018 and 2019..............................................................................6
TASK 4............................................................................................................................................6
a) Completing the table................................................................................................................6
b) List of few international standards that may apply to Duque’s activities...............................7
TASK 5............................................................................................................................................8
a) Calculating monthly cost of mortgage repayment...................................................................8
b) Re calculating monthly cost assuming that interest is applied to the loan every month.........8
TASK 6............................................................................................................................................9
Mean values of order...................................................................................................................9
TASK 7..........................................................................................................................................10
a) Providing advice about how performance of Donald’s firm can be improved.....................10
b) Suggestions on cause for concern.........................................................................................10
TASK 8..........................................................................................................................................11
Conclusion.................................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Data and information are used and analysed for effective decision making in an
organisation. The main aim of this project report is to build an understanding about techniques
which helps in analysing an organisational data which can further used for decision making and
problem solving. In this project report, a case scenario is followed in which a management
trainee analyses information of Duque Papertiers Gros and suggest them ways to expand their
business activities. Information such as product data, customer data and financial data is
analysed in this report to present reliable conclusions and recommendations using graphs and
tables (Bertot, Jaeger and Hansen, 2012).
TASK 1
Overview of the wholesale stationers market in Germany
Germany is considered as one of the most influential economies of the world. Main reason
behind their success is their high GDP which is a result of high consumer market of this nation.
Wholesale stationers market of this country contributes billions to GDP of this economy. The
most impactful cause due to which productivity of this market decreases is the number of school
age children. Current sales of stationary industry are approximately 15 billion annually which is
reduced by 30% in past 10 years. The German wholesale stationary industry has decreased in
past ten years due to which several market players has migrated their business towards other
sectors. Total number of specialised retailers in this sector are 5000 approximately. There are
four main factors related to market which affects stationary market. First factor is convenience,
in this factor, many market players are involved in multiple practices such as selling stationary
stuff along with tobacco which is considered as inappropriate. Second factor which affects
stationary market is intense competition. According to this factor, there are various market
players involved in due to which consumer share divides and few of the small players face
problem of low profitability. Third factor is demand for these items and forth factor is number of
school students (Fortier-Brochu, and et. al., 2012).
According to the trends in stationary market it has been analysed that turnover is raised by
3.5% which has enhanced international economic environment. Trends in this industry which has
been seen in past few years is that demand has been increased but with a declining rate.
1

TASK 2
Producing graph for representing annual spending on stationary material
(Source: Malaysian-German Chamber of Commerce and Industry, 2016)
The above graph is developed using data of Malaysian-German Chamber of commerce
and industry. This information states data for annual spending from the consumers of different
countries. From the above graphical representation of annual spending it has been analysed that
Switzerland is earning highest amount of GDP by stationary industry as they have highest
consumer spending. German has second highest ranking with 35.20 pounds spend by consumers
on stationary units annually. The reason behind this high spending can be high population of
Germany. Third rank is allocated to France, next to Slovenia, Italy, Spain and last as Poland.
Annual spending of Switzerland is larger than four times of Poland. There are two reasons for
these variations which are uneven population distribution and high rate of students in Germany
and Switzerland.
2

TASK 3
a) Tabular analysis of information
Above data represents total sales which is made by the company. In the year of 2016, this
company has earned highest amount of sales revenue and writing/drawing materials are seen to
be highest profitable.
3

b) Developing mixed pie chart representing sales of 2016 and 2017
Above pie chart represents that this organization has maximum sales from writing and
drawing materials and minimum sales from low cost printers. Other categories are classified as
printer cartridges, general office supplies, office furniture and others.
From the above pie chart, it has been analyzed that maximum sales is attained from
writing and drawing based materials that is 32000. And lowest sales are acquired from low cost
printers that is 18000.
4

c) Associated correlation coefficient and its interpretation
A correlation coefficient is a statistical measure which states relation of one variable to
another. Correlation variables are two types that is positively correlated variables and negatively
correlated variables. In case of positive variables, values increase and decrease in tandem. In
case of negative variables, if value of one variable increases it leads to declining value of another
variable (Green and Salkind, 2016). From the above scatter diagram, it has been seen that there is
a positive relationship between both the variables that is years and sales. Correlation coefficient
is measured using MS Excel which is presented below:
Year Sales
2015 165000
2016 182000
2017 178000
2018 188000
2019 194600
Correlation
coefficient 0.92335345
From the above ascertainment of correlation coefficient, it has been seen that correlation
between years and sales revenue of this company is 0.92 which is close to 1. So it can be said
that these variables have positive relationship between each other.
5

d) Forecasting total sales for 2018 and 2019
From the sales revenue of is about the predictions for 2018 and 2019 are done. From the
above graph, it has been observed that sales revenue of this company is showing increasing trend
due to which sales are increasing every passing year. This forecast is done by considering that
increase in sales between year 2018-19 that will be followed by preceding years.
TASK 4
a) Completing the table
Should I expand my business to Belgium & Germany?
Pros Score/10 Cons Score/10
Logistic activity 10 Considerable risk market
entry 9
Euro currency 8 Nationalism 5
Market activity 10 Subcontractor could be
competitor 3
Economy 8 Language 7
Opportunities 8 Administrative cost 6
Reduced inflation
expectation 7 Inflexibility 5
6

E-commerce 10 Salaries 7
Total Pros 61 Total Cons 42
Average Pros 8.71 Average Cons 6
The above table is completed using method of pros and cons in which all the positive
aspects are provided marks and presented at the left side of the table. All the negative aspects are
recorded and presented at the right side of the table (Harrell, 2015). From the above table it has
been ascertained that aspects due to which Duque Papetiers Gros. Should expand their business
are their logistics activity, euro currency, e commerce and more. It has been seen that average
rating from all the pros is determined as 8.71. This average is ascertained from the total marks of
pros as 61. In the case of cons, total marks as cons are determined as 42 from which average of 6
is ascertained. Average of pros is more than average of cons that is 8.71 and 6 which states that
this company should make efforts to expand their business operations outside Germany.
b) List of few international standards that may apply to Duque’s activities
According to European Union, it is compulsory to provide a safe and reliable environment
to all the organisational employees. There are five standards shortlisted which has to be
considered and met by Duque Papetiers Gros and they are mentioned below (ISO, 2018):
ISO 9001 : 2015 States that a business organisation must fulfil all the quality measures
provided internationally. This standard has a main focus on quality of an
organisation (ISO,2018).
ISO 14298:2013 specifies a set of security printing measures which must be fulfilled by all the
organisations involved in business of printing or stationary (ISO,2018).
ISO 30401 Defines that a company should manage their human resources effectively. As
any misconduct performed by employees will directly affect company
(ISO,2018).
ISO 6422-1:2010 This international standards states that every document printed or written
which is compiled to governmental authorities must be double checked and
verified by top level management or owner of the business organisation
(ISO,2018).
ISO 14001:2015 This is an international standard for environment protection which states that
business organisations must not conduct any operation or activity which can
7

harm environment (ISO,2018).
TASK 5
a) Calculating monthly cost of mortgage repayment
From the above determination of monthly payment of mortgage, it has been ascertained that
client has taken interest only mortgage (Jin and et. al., 2015). It is a kind of loan which in which
person only asks for interest value to be paid every month. In order to calculate monthly
payments of loan taken by Duque papetiers Gros, MS Excel is used and formula of PMT is used.
From applying this formula, monthly payment of 1755.14 pounds is ascertained.
b) Re calculating monthly cost assuming that interest is applied to the loan every month
=>
Converting APR into percentage form -
Using the value of APR, monthly payments are determined below:
A * - 12 * X * = 0
Where, A = Amount of Mortgage
r = Annual rate of interest expressed in decimal
n = Repayment term in years
X = Monthly repayment
200000 * (1+ 0.10427)30 - 12 * x * [((1+0.10427)30 -1) / ((1 + 0.10427) – 1)] = 0
200000 * 1.1042730- 12 * x * [((1.1042730- 1) / 1.10427 – 1)] = 0
8

200000 * 19.6000966066-12 * x (18.6000966066 / 0.10427)
3,920,019.32132 - 12 * x * 178.3839705246 = 0
3,920,019.32132 – 2,140.6076462952x=0
3,920,019.32132=2,140.6076462952x
X= 3,920,019.32132/2,140.6076462952 => X=1,831.2647477012=>
Monthly payments of: €1,831.26
From the above calculation, it has been ascertained that if Donald uses the concept of
APR, monthly payment will be high that is 1831.26 pounds.
TASK 6
Mean values of order
From the given scenario of Donald, it has been ascertained that Donalds believes that his
company will receive monthly mean value of orders as 240. This assumption is considered as
reliable but he thinks that this assumption is providing incorrect mean value (Landauer and et.
al., 2013). A hypothesis is developed which is mentioned below:
B1 – μ = 240
B2 - μ ≠ 240
μ = mean value of orders
Information which is used to ascertain mean order is presented below:
Standard deviation significance level is 5%, standard deviation significance value is 43 and
number of samples is 50. From the above data, formula of standard error can be applied and
ascertained.
In order to gain an absolute answer, standard error will be rounded and will be equal to 6. Along
with this interval acceptance which is considered is:
= (μ -2SE; μ +2SE) => [240-(2*6)] [240+(2*6)] => Acceptance interval is [228]; [252]
By calculating and taking assumption for variables, it has been ascertained that mean value of
sample will be 240 pounds. In addition to this 95% of the random sample lies within the interval
and from which it can be concluded that Donald assumptions are relevant.
9