Analyzing Information and Data for Problem Solving

This report analyzes various data analysis techniques for effective decision-making in business, focusing on the wholesale stationery market in Germany. It includes an overview of market trends, sales predictions, and recommendations for business expansion, along with a detailed examination of financial calculations and international standards relevant to the industry.

ANALYSING
INFORMATION AND DATA
FOR PROBLEM SOLVING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Overview of stationer market (wholesale) in Germany.........................................................1
TASK 2............................................................................................................................................2
2.a Framing graph for reflecting annual spending..................................................................2
TASK 3............................................................................................................................................3
3.a Analysing information in tabular format..........................................................................3
3.b Mixed pie chart of sales of year 2016 and 2017...............................................................3
3.c Extracting correlation coefficient.....................................................................................5
3.d Predicting sales for year 2018 and 2019...........................................................................6
TASK 4............................................................................................................................................7
4.a Completing the table with its pros and cons.....................................................................7
4.b Listing international standards for activities of Duque....................................................8
TASK 5............................................................................................................................................8
5.a Monthly cost of mortgage repayment...............................................................................8
5.b Recalculating monthly cost with applied interest to loan.................................................8
TASK 6............................................................................................................................................9
6.a Calculating mean value of order.......................................................................................9
TASK 7..........................................................................................................................................10
7.a Advice related to Donald's firm performance.................................................................10
7.b Suggestions with respect to cause for concern...............................................................11
TASK 8..........................................................................................................................................11
Conclusion............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Data analysis is referred as process for purpose of effective decision making in any
business. The present report will discuss about various techniques which leads to analyse
organizational data used for problem solving and decision making. In this report, it will provide
overview of wholesale stationery market and analyse information of Duque Paerties Gros with
suggestions for purpose of expanding business activities.
TASK 1
Overview of stationer market (wholesale) in Germany
Germany is replicated as highly influential economies of world due to high GDP which
gave an outcome of high consumer market. The GDP of this economy has huge contribution with
context of wholesale stationery market. In this aspect, it has very impactful case because of
which market's productivity is reduced in numerous school age children. The current stationery
is positioned in appropriate aspect. As per trade association for writing and office supply
materials, its total turnover was €14.8 billion whereas every individual spending was equalised
and more than €182 on yearly aspect as it has been decreased by 30% over past 10 years.
Further, €35.2 was spent on drawing and writing material where Germany has ranked second
among European union (Germany – A Potential Stationery Market, 2018). The organization's
positive attitude in stationery industry has underpinned fact higher than 70% of its major
stationery brands of Germany has increment in sales in year 2015.
As per association of German stationery brands, its total turnover of stationery industry of
Germany had attained growth by 3.5% from 2014 to 2015. It is replicated as outcome of raising
domestic demand with growth of 2.5% along with international demand by 5%. However, there
are four factors which had impacted stationery industry such as specialist, convenience, stationer
and lifestyle. First factor as specialist which could be for writing instruments where model is
very easy for end user linked with this. Second is convenience, shops have huge range but not at
deep like stationery, tobacco and books as this is considered very unattractive to members but
they are performing in appropriate aspect due to huge frequency. Other factor stationer, there is
wide range of items of stationery with expertise in areas and last is lifestyle, which forms steps
by just selling to provide skills and advice to customers (Darnton, 2016.). Henceforth, with
trends in stationery market, turnover has been analysed which had faced increment through 3.5%
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which has enhanced international economic environment. Thus, trends has been observes in past
few years where demand has raised at declining rate.
TASK 2
2.a Framing graph for reflecting annual spending
(Source: Malaysian-German Chamber of Commerce and Industry, 2016)
Interpretation: The above graph is formed with application of data of Malaysian-German
Chamber of Commerce and Industry as this information reflects data with context of annual
spending through customers of multiple countries. It has been clearly viewed that Switzerland
has the highest earning amount with reference to GDP through stationery industry with huge
consumer spending. In the similar aspect, Germany has second highest rank with 35.2 through
consumer spending on unit of stationery on yearly basis due to high population. In this context,
France is at third position, then Italy, Hungary, Poland and Czech Republic is lowest (Fang and
et.al., 2015). The main reasons behind these variations due to uneven population distribution
along with high number of population are students in Switzerland and Germany.
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TASK 3
3.a Analysing information in tabular format
Interpretation: The above data is reflecting aggregate sales formed through organization
as it has been clearly viewed that in year 2016, organization has gained the highest amount of
total sales revenue. Furthermore, it had been observed that writing and drawing materials are
replicated as very profitable comparatively to other products (Kowalski, MacWhinney and
WorkFlow, 2018).
3.b Mixed pie chart of sales of year 2016 and 2017
Sales of year 2016
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The above pie chart is reflecting sales of year 2016 and 2017 with its various categories
such as printer cartridges, low cost printers, general office supplies, office furniture, paper based
supplies, shredders along with writing and drawing materials.
Interpretation: The above pie chart is reflecting sales of year 2016 where maximum sales
has been retained with writing and drawing materials and minimum sales through low cost
printers.
Sales of year 2017
4

Interpretation: On basis of above pie chart with sales of year 2017, it is clearly observed
that minimum sales had been acquired through low cost printers as of 18000. On the contrary,
writing and drawing materials had generated maximum sales of 32000 among all product
categories.
3.c Extracting correlation coefficient
Year Total sales revenue
2015 165000
2016 182000
2017 178000
Correlation coefficient 0.73
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Interpretation: Correlation coefficient is considered as statistical measure of particular
degree to which it alters to value of single variable which forecast alterations in value of another.
Usually, it is of types such as negatively and positively correlated variables as if value of single
variable raises and leads for decreasing value of another variable is referred as negative (Kannan
and et.al., 2018). However, with context of positively correlated variable, the values decreases
and increases in tandem. On basis of above scatter diagram, it has been observed that its
correlation coefficient is 0.73 which underlies in range of 0.25 to 0.75 is defined in moderate
level. It could be elaborated that there will be change in sales in positive aspect for better future.
3.d Predicting sales for year 2018 and 2019
Formula: 6500x + 162000
X is equal to year so, in this there is requirement of forecasting sales for 4th and 5th year as
2018 and 2019 respectively.
Year Particulars Sales
2018 (6500 * 4) + 162000 188000
2019 (6500 * 5) + 162000 194500
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Interpretation: On basis of sales revenue foretasted of year 2018 and 2019, it has been
clearly observed that there is increment in trend from year 2018 to 2019. In simple words, it
could be elaborated that sales are increasing in every year. On the similar note, this forecasting
had been performed with consideration of increment in sales in 2018-2019 with reference to
preceding years.
TASK 4
4.a Completing the table with its pros and cons
Should I expand my business to Belgium & Germany?
Pros Score/10 Cons
Score/
10
Economies of scale 9 Quality degrading 9
Logistic task 10 Requirement of huge capital 4
Improvement in customer base 9 Language 4
Euro currency 8 High employee turnover 6
E-commerce 10 Inflexibility 4
Qualified personnel 8 Subcontractor as competitor 5
Market activity 8 Nationalism 8
Decreases inflation expectation 8 Lack of operational control 4
Opportunities 10 Administrative cost 5
Possibilities of reallocation 8 Risk in market entry 8
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Total Pros 88 Total Cons 57
Average Pros 8.8 Average Cons 5.7
Interpretation: The above table has been formed for deriving pros and cons of business
expansion in Belgium and Germany with score from 10 of every factor. The factor which leads
to advantages for business expansion are stated at left side as pros and conversely, its limitations
are at right side as cons. There are various aspects which are ascertained with this table impact
Duque Paperties gros for expanding business (Kannan and et.al., 2018). In the similar aspect, the
pros factors which lead to business expansion are economies of scale, logistics task,
improvement in customer base, Euro currency, E-commerce and many more. While scoring
them, its total scoring is 88 whose average is 8.8. On the contrary, cons factors related to
business expansion are degradation in quality, requirement of high capital, language, high
employee turnover, inflexibility, lack of operational control and so on. This cons are aggregately
scored as 57 whose average is 5.7 is ascertained.
Pros > Cons
While considering this, organization should give some efforts for business expansion to
Belgium and Germany because there is variation 31 score which is in positive method.
4.b Listing international standards for activities of Duque
International standards Details
ISO 9001 This international standard reflects that business should be
capable for fulfilling every measure of quality given
internationally. It lays special emphasis on organization's
quality (International Organization for Standardization, 2018).
ISO 30401 In this standard, it has been elaborated that organization must
manage human resources in effective manner. If there is any
misconduct through employees then this will provide direct
impact on entire business (International Organization for
8

Standardization, 2018).
ISO 14001 It is an international standard for protection of environment
which specify that company should not conduct any task or
activity which impacts environment on positive manner
(International Organization for Standardization, 2018).
TASK 5
5.a Monthly cost of mortgage repayment
Particulars Details
Interest rate 10.00%
Number of payments 360
Loan amount 200000
Monthly 1755.14
Formula for monthly amount= PMT (10%/12, 360, 200000)
On basis of above formula, monthly amount of mortgage has been calculated with
application of MS Excel. It is considered as type of loan where one has stated interest value paid
at each month. For calculating payments of monthly aspect through Duque Paperties Gros with
this PMT formula ix extracted as 1755.14.
5.b Recalculating monthly cost with applied interest to loan
=>
Conversion of APR in percentage format: 0.10427 * 100 => APR % = 10.42%
Application of APR value with identification of monthly payment:
A * - 12 * X * = 0
Here,
r Annual rate of interest in decimal
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X Monthly repayment
A Amount of mortgage
n Repayment term in years
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
200000 * 19.60-12 * x (18.60 / 0.10)
3,920,019.32 - 12 * x * 178.383 = 0
3,920,019.32 – 2,140.60x=0
3,920,019.32 = 2,140.60x
X= 3,920,019.32/2,140.60 => X=1,831.26=>
Monthly payments: €1,831.26
On basis of above table, it has been identified that application of concept of APR in
Donald's firm with monthly payment would be high of 1831.26.
TASK 6
6.a Calculating mean value of order
The scenario of Donald has determined that organization would gain monthly mean value
of order as 240. In the same series, it has been assumed that highly reliable with assumption of
giving false mean value. Furthermore, there is formation of hypothesis which is stated below:
B1 – μ = 240
B2 - μ ≠ 240
μ is replicated as mean value of orders
Here, significance level of standard deviation is 5% with 43 as value along with 50 as
sample number. On basis of above data, standard error could be applied as below:
For getting absolute answer, its stand error is 6 with interval acceptance as
10