DUQUE PAPETIERS GROS: Business Expansion in Germany Market Analysis

This report critically evaluates the expansion idea of DUQUE PAPETIERS GROS in Germany, analyzing the stationary wholesale market conditions. It assesses per capita spending on writing and drawing materials, performs calculations like mean, median, mode, and correlation coefficients on financial data, and checks the feasibility of expansion in Belgium and Germany. The report also includes an analysis of consumer satisfaction levels and provides suggestions to improve consumer responses. The document covers total sales, financial data analysis, and the pros and cons of expansion in different regions. It also includes international standards that the company must adhere to. The expansion plan is considered successful as the pros are higher than the cons.

ANALYZING INFORMATION & DATA
FOR PROBLEM SOLVING

TABLE OF CONTENTS
1. INTRODUCTION.......................................................................................................................1
2. Analysing the issues faced by DUQUE PAPETIERS GROS....................................................2
2.1 Presenting an summary on Germany's wholesale market................................................2
2.2 per capita spending on writing/drawing material.............................................................3
2.3 presenting an analysis of last three's financial data of Dauque........................................4
2.4 Checking the feasibility of expansion in Belgium and Germany.....................................8
2.5 Expenses done on new building.......................................................................................9
2.6 Computation of mean value orders.................................................................................10
2.7 Determining level of consumer satisfaction..................................................................11
3.CONCLUSION...........................................................................................................................13
4. REFERENCES..........................................................................................................................14
5. APPENDIX................................................................................................................................15

1. INTRODUCTION
Business expansion is a stage in an organisation life where it faces both opportunities and
risk. The growth of the business bring with it increase in financial profitability for employer and
owner of firm. Expansion means new employees will be hired and management of company will
get decentralize. New opportunities for growth will be discovered and many more. In the present
report the expansion idea in Germany for Dauque Papetiers Gros is critically evaluated. This is
done in context with determination of condition prevailing in German stationary wholesale
market.
The evaluation is carried to determine per capita expanding on drawing and writing
material in German, certain calculation are carries out for such as mea , median, mode,
correlation coefficient for different variables. In the last part of the report suggestions are
presented as how organisation can increaser the number of reposes on their questioners.
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2. Analysing the issues faced by DUQUE PAPETIERS GROS
2.1 Presenting an summary on Germany's wholesale market
The wholesale stationary market in Germany is determined to in an excellent position as
this is growing with time. As per trade association for office supply and writing material (HSB)
the turnover for each year for this industry have reached up to €14.8 billion. On the individual
sectors of writing and drawing material the turnover amounts to €35.2. the brans of stationary
items have a good reputation in the nation as well as worldwide. This can stated with the fact
that in year 2015 only the firm have experienced a growth of 70% in sales in this industry only.
The growth in this market is escalating and one of the Major items that is facing a boon
German brand in general and writing instruments against private brands (Hurdebise and et.al.,
2017). The stationary industry consist of various articles and faces different development
challenges. At present main issue is faced by paper and paper related products as world is
shifting its concentration to digitalisation and with this use of paper has been reduces significant.
This is a boon to environment ans its protection but the stationary industry faces a problem.
The market structure is changing and by at present 2200 wholesale companies are
operating in Germany 's stationary industry. This includes wholesalers who
are selling paper, office supplies and writing
instruments as well as business-to-business
(B2B) intermediaries who directly deliver to
the commercial customer. The main reason for decrease in number is due to merger of the
companies. The number of retail companies in this industry in Germany is 5500 which is more
than double.
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2.2 per capita spending on writing/drawing material
Figure 1 Annual spending for writing and drawing material per capita
(Source: MGCC Perspectives, 2016)
Analysis of the per capita income:
The interpretation of above graph can be started with analysis the leaders counties in
this field. The nation which have higher per capita spending on drawing/writing, material is
Switzerland with €35.5. the second player in this list is Germany with as spending of €35.2,
nest comes Austria with €35. France comes 4th in this list with per capita spending of €28.3.
With this it can be clearly seen that the top three countries are in though competition
with each other as anyone can lead another in coming future. But France is somewhat lacking
its spending power to reach to level of toppers. As stated in above question the German brand in
writing instruments growing with a faster face and in developments and innovations are made
frequently. This can be a reason for the nation to at this position and the fact ca hot be denied
that it will reach to top very soon.
As German is the target company for our organisation Dauque Papetiers Gros and its
Currently operating in Northern France. The country of operation also in top 4 and the nation of
expansion is 2 in the list for per capita spending in drawing and writing material. The factors that
prevents strong growth of German industry is low birth rate and first graders who are sent to
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school. As per the information provided by HBS, the figure for students, dropped by 11.9% over
the last decade to a current level of about 11 million.
2.3 presenting an analysis of last three's financial data of Dauque
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1. Deamination of the total sales:
Year of sales 2015 2016 2017
Sales in totality €165,000 €182,000 €178,000
The sales in totality for year all three years is determined with adding sales figure of
all products sold by the organisation Dauque Papetiers Gros in a financial year (Secanell and
et.al., 2014). The stationary soled by the firm are printing cartridges, general office supplies, low
cost printers, office furniture, shredders, paper based supplies and writing/drawing materials. The
total sales amount also reveals the fact that sales have increased in 2016 as compared to 2015
and in the next year he sales figure were dropped down.
2. Presenting Mixed Pie chart
PIE GRAPH:
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SCATTER CHART:
3. Presenting calculation for associated with correlation Coefficient:
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Interpretation:
Correlation coefficient is a statistical measure that calculates the relative rat between two
different variables. With this it is found out that how strong relationship is between data (Ye,
2014). In the present case relation between sales revenues and financial years has been
determined. A moderate correlation coefficient is between range of +1 to -1. The negative
results determine that the relation between variable as negatively related. A positive results state
s that both are positive connected and increases and decreases together, form the above table it
can be interpreted that sales and years are positive connected and both changes together.
4. Forecasting the sales in totality for financial year 2018 & 2019:
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2.4 Checking the feasibility of expansion in Belgium and Germany
a) Presenting and comparing the pros and cons for expansion criteria
Determination of Pros and Cons for expansion in Belgium and Germany
Pros Marks out
of 10 Cons Marks out of
10
To connect to as larger mass
of customers around the globe 9 Sales revenues increments in
domestic market 5
Enhancement in research and
development of newer and
innovation existing products
8 Impact of international
regulation and standards. 8
A bigger contribution of gross
domestic products and national
economic development
9 Increase in requirement of
international and skills staff. 7
Benefit in boosting brand
images from excellent German
stationery brands
8 Increase in requirement of
working capital. 9
Total Pros 34 Total Cons 29
Average of marks for Pros 8.5 Average of marks for Cons 7.25
Result of total pros and cons:- 34-29=5
With this it can be stated that the expansion plan can be considered as pro are higher than
the cons which give as hight rate of success and hurdle free operation in Belgium and Germany.
b) Presenting list of the international standard that Duque Papetiers Gros must adhere:
1. ISO900 1 QUALITY MANAGEMENT: the product musts be free form any hazardous
substance that can effect the health of user both in long and short term.
2. ISO 31000 RISK MANAGEMENT: the techniques and measure must be used and
abide by the organisation to mange the risk in present as well as future period
(International Organization for Standardization, 2018).
3. ISO 45001 OCCUPATIONAL HEALTH AND SAFETY: Duque Papetiers Gros must
ensures about health and safety of all its staff and employee as with expansion people
from other nation and part will be recruited and for with this international standards
required to be followed.
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2.5 Expenses done on new building
a) Computation of month wise instalment for the loan taken to repaid in a time frame of
30 years:
Time for repayment of
loan
30 years
Payments of loan
amount
Loan amount in totality
Total discounting factor = €21215.85
Installment for each
month
21215.85
12 = 1767.98
b) Presentation of the cost for the month:
Time for payment (n) Interest rate (R)
Years \rate 30 10%
Month 12 12
(30*12) =360 10/12= 0.00833
Monthly payments to be made
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2.6 Computation of mean value orders
Hypothesis of mean value:
4. Null Hypothesis: (H0)
This can be defined as when there is no difference which is statistically significant for
the mean value of actual order in relevance to expected value.
5. Alternative Hypothesis: (H1)
This can be defined as the statistically significant difference between mean value of
actual order in relevance to expected value.
Interpretations :
The interpretation can be started as, to be in null hypothesis the calculation of mean
value order must be below 0.05. a resultant under this is considered a moving in different
direction and no have statistical significant difference between expected and mean value of
(How to Calculate the Correlation Coefficient, 2018). In case calculation comes out to be more
than 0.05 it can be stated that there is no existence of null hypothesis rather alternative
hypothesis exists stating the fact the there is significant difference between the two.
From the calculation present in above table it can be stated that both mean value order
and expected values are moving in same direction so its is an alternative hypothesis with a
statistical significant difference between mean value of expected and actual average order value.
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