Business Report: Analyzing Data for Donald Duque's German Expansion

This report analyzes data to inform Donald Duque, a small stationery business, on its potential expansion into the German retail market. It begins with an overview of the German wholesale stationery market, highlighting key players, market size, and trends. The report then examines per capita spending on writing and drawing materials in European countries. It proceeds to analyze Duque's sales data from 2015 to 2017, including product-specific sales figures and sales forecasts for 2018 and 2019. The report uses a "pros and cons" method to evaluate the expansion into Belgium and Germany. Financial analysis includes calculations for mortgage payments and APR. It also addresses statistical analysis of order values and provides recommendations for improving customer surveys. The report concludes with a summary of findings and recommendations for Duque's expansion strategy, considering the financial implications and market dynamics.

Analysing Data

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................3
TASK 3............................................................................................................................................4
A)............................................................................................................................................4
B)............................................................................................................................................5
C)............................................................................................................................................5
D)............................................................................................................................................5
TASK 4............................................................................................................................................6
a).............................................................................................................................................6
b).............................................................................................................................................7
TASK 5............................................................................................................................................7
a).............................................................................................................................................7
b).............................................................................................................................................8
TASK 6............................................................................................................................................8
TASK 7............................................................................................................................................9
a).............................................................................................................................................9
b).............................................................................................................................................9
TASK 8..........................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12
APPENDIX 1.................................................................................................................................13

INTRODUCTION
Donald Duque is a small sized stationery business which is situated in the Northern
France and its main aim for expansion of the business in the Germany in retail market. The main
aim of this report is to analyse the data in an effective manner so that the company could frame
strategy in an effective manner. The company is expanding its operations since fifty years in the
wholesale market and the business is expanding its operations in the retail market. Its have
various goods which contains cartridges of printer, office related supplies, furnitures and other
paper related substance. Under this report, overview of the Germany is evaluated and various
tools are used for expansion of business in Germany (Bahmani-Oskooee, Harvey and Hegerty,
2015).
TASK 1
Wholesale Market Overview of Germany
Germany is the world's most effective market for the stationery where there are so many
number of top brands of stationery which are: Faber-Castel, Montblanc, Stedtler, edding with
Stadbilo and Lamy. Stationery market remains the top of the success for so many years. This is
mostly said that the new product emerged to the tailor customer habits, forecasting and choices
with emerging viatality and the higher issues which has raised in this industry. As per trade
association for office Supply and Writing Materials, overall turnover of the entire industry is
higher than €14.8 billion each year. Which can be equal to higher than €182 annually. Around
€35.2 of it is spend on the writing and drawing materials, which pushed the Germany in the
second position in terms of spending for stationery among countries in the European Union. The
total turnover of the Germany industry is growing by 3.5% between 2014 and 2015. this is the
emergence of enhancing domestic demand which enhanced domestic demand which enhanced
by 2.5% and alsos enhancing demand form abroad which grew to 5% (MGCC Perspective,
2016).
1

There are almost 2200 wholesale firms which are working in the Germany which offers
office supplies, paper, writing tools, out of which majority of them have net income which is
less than €500,000. B2B intermediaries are offering commercial customers in an direct manner.
Merger and the exit strategies of an organisation lowering the wholesale number. In
addition to this, there are various number of specialists where offer standard goods. The above
mentioned report, that report in year of 2002, mostly declined which evaluates in the number of
office supplies and stationery retailers. Henceforth, at the time of such period, offices are 5200
only which has less than than as compared to the earlier time. In addition to this, majority is
likewise laid down by the suppliers on serving innovative stationery products to the consumers
which could meet their forecasted level in a best effective manner. In addition to this, due to the
emerging quality of the supplies in local and international market growth in the sales revenue
which tool place by 3.5% in effective manner. Further, particular variation were likewise
evaluated in this sector after entry of the particular retailer. Further, these kinds of retailers
serves premium products by using their own labels. These retailers believe that labeled goods
which emerge comfort recognition of the same. In addition to this, Germany's retailers are
currently providing goods 24 hours which means that the products are highly measurable for the
firm.
TASK 2
Annual spending for writing and drawing material per capita
2

Country Per capita
Switzerland 35.5
Germany 35.2
Austria 35
France 28.3
Italy 18.6
Poland 8.5
Spain 8.9
(Source: MGCC Perspective. 2016)
Abovementioned chart is showing the annual spending for writing and drawing material
per capita of European Country. This can be said that European countries reflect the annual
spending and Switzerland is the only country which spends more in European territory which
spends 35.5 euro. While Germany comes after Switzerland and its per capita spending is 35.2
which is slightly less than the Switzerland in the European territory. France is the country which
comes at the 4th rank in the European countries. As, it spends 28.3 euro on the writing and
drawing material per capita. While, on the other hand, the least per capita of Poland which turn
out to be least spending for the writing and the drawing material.
3

TASK 3
A)
Various products are offered by Donald Duque which have been mentioned hereunder:
Product Items 2015 Sales (€) 2016 Sales
(€)
2017 Sales
(€)
Total Sales
Printer cartridges 25000 26000 22000 73000
General office
supplies
25000 27000 23000 75000
Low-cost printers 15000 18000 18000 51000
Office furniture 25000 25000 27000 77000
Shredders 25000 29000 29000 83000
Paper-based
supplies
25000 27000 27000 79000
Writing/drawing
materials
25000 30000 32000 87000
Total Sales 165000 182000 178000
From the above mentioned table, various products are sold out by Duque in various years.
During 2015, the total sales are 165000 which come to 182000. Which represents a good sign for
the firm? While in 2017 sales comes to 178000 which shows the negative sign for the firm.
4

B)
From the above mentioned pie chart, this can be said that company’s sales in 2016 and
2017 from diverse activities were showing.
5

C)
Formula for calculating coefficient correlation:
In this table, two variables are considered; Year and other is total sales. In this table, 3
years’ total sales are mentioned. Which totally reflects the total sales of the company? The total
sales of the company are mentioned under this. Coefficient correlation of these two variables are
mentioned which is 0.731 which ultimately reflects that this is closely related to the other factor.
6

D)
Sale forecast for 2018 and 2019
In the above table, this can be showed that the total sales of 2018 and 2019 are foretasted
on the basis of past year average return.. As, this is shown that the sales are increasing in an
effective manner.
TASK 4
a)
Expansion of business can result in success or a big failure to Duque. Below is ''pros and
cons method'' for deciding that whether Duque should enter in Belgium and Germany or not:
Should I expand my business to Belgium & Germany?
Pros Score/10 Cons Score/10
Increase in total sales 9 Increment in cost of
business
8
Increment in brand
awareness
7 Less focus on domestic
market
8
Increase in net profit 9 Higher financial burden for
short period of time
6
Less vulnerable to negative
domestic changes
7 If investments would not
pay off according to
8
7

projection, then company
may have to bear huge loss
Better growth opportunity in
the long run
8 More legal complexity
while entering in new
country
6
Increment in quality
workforce
7
More career growth
opportunities to local
employees
6
Total Pros 53 Total Cons 36
Average Pros 7.57 Average Cons 7.2
b)
At the time of expansion, Duque has to concentrate on following some standards which
are mentioned as below:
 ISO 26000 – Social responsibility
 ISO 45001 – Occupational health and safety
 ISO 14001 – Environmental management
TASK 5
a)
Mortgage amount is 200000 and its maturity is 30 years which has 10% interest rate. This
represents that the monthly payment of 1755.14 in the end of the 30years the total interest would
be payable as 631,858. Henceforth, this can be said that the total interest would be payable as
431,858.
Mortgage amount 200,000
Terms of years 30years
Interest rate 10%
Total interest 436437.4
Total Principle and 636476.4
8

Interest amount
€200 000 + – 12 * X * ( = 0
€3 489 880.45 – 12 * X * 164.49 = 0
X = = €1 767.99 / month
It means that if an individual use to borrow $200000 at the rate of 10% for 30 years. The
monthly payment will be $1767.99.
b)
(1 + APR) = (1 +
In our case n = 12 , therefore:
APR = (1+ – 1
APR = 10.47
€200 000 + – 12 * X * ( = 0
€3 966 072.2 – 12 * X * 188.30 = 0
X = = €1 755.17 / month
TASK 6 Null hypothesis is not statistically an important difference in the forecasted and real
average order value.
9

 Alternate hypothesis: There is statistically important difference in the forecasted and the
real average order value.
Significance level: 5% level of significance.
Rule of Decision: P-value > alpha value: Null hypothesis accept
 P-value < alpha value: Alternate hypothesis accept
Calculation of z-score
(Mean of the entire population - mean of sample)/ Standard deviation= (240-230)/43=0.23
According to the table of Normal Probability, 0.23 z score is identified with p-value of
0.5910 which is more than the targeted significance level (Alpha value of 0.05). Therefore,
outcome evidence that null hypothesis is valid. This is mostly clear that company gets an average
order of 240 euros and difference between mean of sample and expectation is statistically
insignificant.
TASK 7
a)
Management of company should call and message customers as well as request them to
fill the questionnaire (Malhotra and et. al., 2016). No one has time in this era so they may forget
to fill a form which is not too important to them. Besides this, they should also start a
promotional scheme where respondents will get some free products from the side of company for
filling and sending the form in allotted time. Organisation also needs to make some changes in
their questionnaire. Present questionnaire is not attractive and it fails to get attention of even
loyal customers. Same questions can be asked in more creative way. So, customer does not feel
boring at the time of filling questionnaire.
b)
Appendix 2
Particulars CUST_SERV QUAL_P&S SALES_STAFF PRICE_VALU
10

E
Mean 3.5 3.15 3.45 1.95
Standard Error 0.17 0.08 0.18 0.11
Median 4 3 4 2
Mode 4 3 4 2
Standard Deviation 0.76 0.37 0.83 0.51
Interpretation: As per the above information, this can be said that total average number of
various respondents which are implemented in order to identify favourable aspects of the clients
services or support. Quality of the products of the cited company is pretty sound. In addition to
this, total mean value of the factors which related to the prices which applied for 1.95 in turn out
to be exhibits which is mostly assessesd by the similar value. In addition to this, all the values are
measured and standard deviation is calculated as 0.51 which simply means.
Formula for Mean:
Mean: ∑X/N
Standard deviation: √∑Fdx2/N – (∑Fdx/N)2
TASK 8
Using ''pros and cons'' method reveals that this company should expand their business in
Belgium and Germany. Because, there is a huge difference between column of pros and cons.
Increment in sales and profit is the most important thing for any company. Entering in new
marketplace will result in better growth opportunities to Duque (Wellinger, Murphy and Baxter,
2013). Questionnaire shows customer service and quality of products & service is fine but
11

enterprise needs to focus on their sales staff. This division does not get good rating and issues
related to human resources should be addressed on priority basis.
By analysing findings, it can be summarised that company may have to bear huge loss if
they fail to adjust in new business environment. But, on the other hand, if company will not
adopt the strategy of rapid expansion then they may get failed to earn various competitive
advantages which are currently available to this firm. Questionnaire made by this company for
getting clients feedback is not impressive. It needs major modifications and so, customers do not
feel that they are wasting their time on in significant thing. Price value is another major problem
of this company. Questionnaire clear reveals that ''Price value'' get least rating among all the
available options.
CONCLUSION
From the above report, it can be concluded that stationary market of Germany is stable.
According to loyal customers of Duque, company is failing to provide value for the price. But
they are happy with the customer service and quality of products. Questionnaire is made to get
views of customers but enterprise did not get expected response. Expansion would be beneficial
for Duque but they should analyse all the financial data and information regarding German and
any other market where they want to enter.
12

REFERENCES
Books and Journals
Wellinger, A., Murphy, J.D. and Baxter, D. eds., 2013. The biogas handbook: science,
production and applications. Elsevier.
Malhotra, A., Battke, B., Beuse, M., Stephan, A. and Schmidt, T., 2016. Use cases for stationary
battery technologies: A review of the literature and existing projects. Renewable and
Sustainable Energy Reviews, 56, pp.705-721.
Gillingham, J., 2014. Industry and Politics in the Third Reich (RLE Nazi Germany &
Holocaust): Ruhr Coal, Hitler and Europe. Routledge.
Schiebahn, S. and et. al., 2015. Power to gas: Technological overview, systems analysis and
economic assessment for a case study in Germany. International journal of hydrogen
energy, 40(12), pp.4285-4294.
Cunado, J. and de Gracia, F.P., 2014. Oil price shocks and stock market returns: Evidence for
some European countries. Energy Economics, 42, pp.365-377.
Tuohy, A. and et. al., 2015. Solar forecasting: methods, challenges, and performance. IEEE
Power and Energy Magazine. 13(6). pp.50-59.
Bahmani-Oskooee, M., Harvey, H. and Hegerty, S.W., 2015. EXCHANGE-RATE
VOLATILITY AND SWEDEN'S TRADE WITH GERMANY: EVIDENCE FROM
INDUSTRY DATA. Current Politics & Economics of Europe, 26(3).
Online
MGCC Perspective. 2016 [Online]. Available through:
<file:///C:/Users/user/AppData/Local/Temp/Rar$DIa1.106/MGCCReport2016151878708
0.pdf>.
13

APPENDIX 1
Mortgage Amount 200000
maturity 30 years
interest rate 10%
Rate 0.008333333
nper 360
pv 200000
Monthly interest ($1,755.14)
Total principle and
interest ($6,31,851.53)
Total Interest ($4,31,851.53)
Payment number Interest Rate Monthly payment
1 4% 954.83
12 6 1192.63
24 6.50% 1254.46
Mortgage Amount 200000
Term 30years
Starting Interest Rate 4%
Initial Monthly Payment 954.83
Current Index 4%
Margin 2.50%
Total Principle and
Interest payments
4,47,272
14

Total Interest 2,47,272
z-score
(Mean of entire population-mean of standard deviation)/standard
deviation
0.23255814
5% significance level 1.64
Mean value 0.381395349
Mean Standard deviation
CUST_SERV 3.5 0.76088
QUAL_P&S 3.15 0.3663
SALES_STAFF 3.45 0.82557
PRICE_VALUE 3.45 0.51041
Product item 2015 Sales (€) 2016 Sales (€) 2017 Sales (€)
printer
cartridges 25000 26000 22000
general office
supplies 25000 27000 23000
low-cost
printers 15000 18000 18000
office
furniture 25000 25000 27000
shredders 25000 29000 29000
paper-based
supplies 25000 27000 27000
writing/
drawing
materials 25000 30000 32000
Total Sales 165000 182000 178000
15

Sum
=SUM(B15:B21)
=SUM(C15:C21) =SUM(D15:D21)
16

17

18