Business Expansion Feasibility Report: Duque Papetiers Gros in Germany

Desklib provides past papers and solved assignments. This report analyzes Duque Papetiers Gros' potential expansion into Germany.

Report for DUQUE Papetiers Gros

Table of Contents
Report for DUQUE Papetiers Gros.................................................................................................1
List of Figures..................................................................................................................................2
Introduction......................................................................................................................................4
Analysis of Issues for Duque Papetiers Gros..................................................................................5
An Overview of the Wholesale Stationers Market in Germany..................................................5
Annual Spending on Writing/Drawing Materials per Capita......................................................5
Analysis of Duque’s last three financial years of sales data (2015-2017)...................................6
Feasibility of Expanding to Germany & International Standards.............................................10
Costs of a New Building............................................................................................................11
Mean Value of Orders...............................................................................................................12
Customer Satisfaction................................................................................................................13
Conclusions....................................................................................................................................16
References......................................................................................................................................17
Appendices....................................................................................................................................18
List of Figures
Figure 1: Annual Spending on Material..........................................................................................6
Figure 2: Total Amount of Sale.......................................................................................................7
Figure 3: Sale Analysis in 2016 & 2017 Year.................................................................................8
Figure 4: Chart for Showing Co-relation.........................................................................................8
Figure 5: Plotting for Total Sales.....................................................................................................9
Figure 6: Predicted Sale for 2018 – 2019........................................................................................9
Figure 7: Sale Graph in Between 2018 & 2019.............................................................................10
Figure 8: Checklist for Business Exploration................................................................................11
Figure 9: Interest Rate Table.........................................................................................................11

Figure 10: Calculation for Mean Value & Confidence Range......................................................13
Figure 11: Standard Deviation & Mean Value..............................................................................14

Introduction
Duque has owned their own respect in the market by winning trust, reliability and supplier.
Product which is out of stock can easily accessible & delivered into specific time period that is
48 hours by making an order. Donald is renowned business into industry who are very generous
hearted people in schools, non-profitable organizations and religion also. It is having material for
drawing & writing in European countries with great potential by expensing their business with
nearby countries like Germany. In present time, at region of Germany almost 2200 companies
are working as wholesaler in industry or market of stationary with their different products of
Germany with annually turn over lower than 5, 00,000 €. In the region of Germany, special
retailers and branded boutiques have implemented correct & successfully sell out the stationary
with premium quality.

Analysis of Issues for Duque Papetiers Gros
An Overview of the Wholesale Stationers Market in Germany
The base of customer is divided into combination of different small shops, offices, organization
and schools. The list of products are further divided into printer, cartridges, general office
requirements, printers at low cost, furniture for office, things which are based on paper. It is
including the wholesalers who are selling the papers, instruments or things for writing and things
for offices with the help of Business to business communication which is direct connected to
customers who are commercial with main incremental change at large level for extending
business by executing some innovative ideas which are selling products directly to commercial
user without interfere of retailers. The main reason behind is that merging of companies which
are thrown by current market. The main important demand for stationary is grown up by 2.5 % to
3.5 %. This turnover is grown up in the year of 2016 & 2.1 % incresed in 2018 to the stationary
market of Germany is getting & exploring by 5500 retailers with annual turnover less than
250000 €. HBS report state that the retailers who are selling out good quality of things &
products with good amount & quantity are can easily recognized by market as well as
commercial customer also. In the region of Germany, special retailers and branded boutiques
have implemented correct & successfully sell out the stationary with premium quality. The main
disadvantage of merging companies are in result to moving towards failure But they can earn
profit with direct contact with wholesaler companies as well as customers also in (Germany
Prete, C.L., 2012).
Annual Spending on Writing/Drawing Materials per Capita
The market of stationary is increasing day by day with exponentially rate into industry. However,
this stationary market is not taking up by the organization who are having large number of
person inside this. This is used for earning a lot of profits in all regions. This will provides a
various change into market growth as well as revenue of industry. The revenue is defined as the
amount which is earned by selling out the products by the respective organization, however it
doesn’t matter for products which are bought from market. The products are sold out at world -
wide level with getting profit at large level with interest on customer. Interest on customer is
defined on all wide level at globally according to production of production. The operation which
are running in present of Duque organization are having rate per capita with 28.30 in France

which is published in the report of MGCC. By completing this analysis, we are able to getting a
better overview regarding the future aspects of organization into industry as well as future
exploration.
Figure 1: Annual Spending on Material
There are many factors which are available for affecting the overall consumption rate of
stationary items. These stationary items are online shopping and mortality rate for child. Due to
these reason, the complete whole sale market is affected by decreasing their market value. The
major issue is decreasing rate for birthing of child in Germany. Online shopping is also a major
issue because it is providing flexibility through which we can easily buy the product at anytime,
anywhere and anything.
Analysis of Duque’s last three financial years of sales data (2015-2017)
Here, in below figure it is having data or list of products which are sold out by Duque in the year
of 2015-2017. There are three types of information into 2015, 2016 & 2017. The high amount of
use of technologies gives the result in decreasing the total amount of sale as year by year.

Figure 2: Total Amount of Sale
By analyzing this below graphical image I got these following results:
 The amount for products which are sold out is calculated by sum function.
 The amount or profit of sale for material used for writing & drawing are increased every
year at very large level.
 The average amount of sale for in general items is 75,000.00 €.
 The amount for low cost printer are having minimum sale with monetary amount 51000
€.
 The amount for writing drawing items are having maximum sale with monetary amount
87000 €.
 First the sale amount for printer & cartridge are increased, however after some time it is
decreased.
 The total amount of sale are highest or maximum in the year 2016 & minimum in 2015.
Here, below is pie chart on which it is showing sale in the year of 2016-17. This will provide
visual analysis and by this it is showing that total amount of sale are increased for some products
and rest of them are constant (Anselin, L., 2013).

14%
15%
10%
14%
16%
15%
16%
12%
13%
10%
15%16%
15%
18%
Pie Chart for Sale in 2016 & 2017 Year
Printer cartridges
General office supplies
Low-cost printers
Office furniture
Shredders
Paper-based supplies
Writing/drawing materials
Figure 3: Sale Analysis in 2016 & 2017 Year
At below, it is having graphical relation representation of sale with year which are interlinked
with next upcoming year and it is as follows:
2015-2016 2016-2017 2017-2015
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Chart Between Correlation Coefficient with Year
Figure 4: Chart for Showing Co-relation
The below figure is explaining the relation with sale for each & every year with their different
types and it is as follows:

Figure 5: Plotting for Total Sales
Here, in below figure it is having data or list of products which are sold out by Duque in the year
of 2018-2019 (Roberts, J.C., Franklin, K.M. and Cullinane, J., 2014):
Figure 6: Predicted Sale for 2018 – 2019

printer cartridges
general office supplies
low-cost printers
office furniture
shredders
paper-based supplies
writing/drawing materials
Total Sales (€)
€ -
€ 50,000.00
€ 100,000.00
€ 150,000.00
€ 200,000.00
€ 250,000.00
€ 300,000.00
€ 350,000.00
Sale Graph in Between 2018 & 2019
2018 Sales (€) 2019 Sales (€)
Figure 7: Sale Graph in Between 2018 & 2019
Feasibility of Expanding to Germany & International Standards
Germany is having almost more than 80 million. Germany is renowned as a portion of EU,
however it is joined with western union in year of 2002. Berlin is the capital of Germany which
is most famous day by day with respect to their livelihood. Germany is having a large amount of
powers which are with the EU as well as political power by reflecting the economics of country
which makes an impact on overall world. Here, below are some reasons for exploring business
entities within inside Germany which should be followed and these are:
 Growth Opportunity
According to Germany law, it is allowing the organization in industry for setting up their
business as well as assigning opportunities and responsibilities for development of their
business.
 Law for Strict Employment
The law for employment are very hard & full of strictness in Germany and it doesn’t give
any allowance to work according to their own choice. If they doesn’t follow German law,
then they are not allowed to work.
 Strategies for Globally Located
This is containing various different analyzing aspects which are incentives & profits,
infrastructure and talent.

There are many types of competitions inside the German market which are exploring the growth
of business by completing different possibilities. By using these aspects, an organization can
extend & explore their business into different scenarios according to their requirement & need of
market.
Here, below table is showing requirement & need for extending & exploring their business into
different segments & aspects:
Figure 8: Checklist for Business Exploration
Costs of a New Building
Figure 9: Interest Rate Table

The above mentioned table is containing information for generating which is designed for Duque
organization. The very first most cost for building material is 200000 €, however the original
price is 220000 €. Donald are very dedicated towards these mortage as such he is paying extra
mortage other than interest.
Hence, Donald take the decision for paying the mortage within the time period of 30 years with
the interest rate of 10 %. If the amount which are completed by him are 12 per year, then whole
complete payment made by him is 360, however, 200000 € is the base monetary amount with the
interest rate 10 %.
After completing all professional calculations, the complete monthly installment are 1775.14 €.
Total monetary amount which are paid by Donald is 631851.53 €, however the interest in this
time period is 431851.53 €. The amount of interest rate value is twice of the amount which is
principal amount or base amount agreed for generating & developing the building. It is not an
efficient or correct effective manner for making payment. On the completion of this analysis, it is
decided that Donald should have a choice which have a proper plan & idea for making
repayment for the loan.
Mean Value of Orders
According to Donald, he is thinking that their team is receiving total amount of mean reference
value is 240 € for each & every product. But, the mean value price is changed as received by
organization which gives the result for changing the mean value for each & every product or
item by differing the final mean value. For making this method successfully, the almost fifty to
sixty account profiles are selected and we take that their mean price is 230 € & the amount of
standard deviation is 43 €. The amount of significance level is resulted as 5 %. 11.92 is the
confidence for working as sample data which is turned got. The amount of confidence range or
interval which is solved with respect to the given sample information is 23.84 €. After
completing these all calculation we got that the amount is laying in the range of 241.92 € –
218.08 €. At finally, this analysis will help Donald for making payment as well as other
organization things. By analyzing this below mentioned table, we are able to understand this
methodology which is going to be tested. For this, we have implemented various formula’s
which are based upon this analysis (Wan, X., Wang, W., Liu, J. and Tong, T., 2014).