Duque Papetiers Gros: Data Analysis for European Expansion Plan

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Added on 2024/07/12

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This report analyzes the business expansion prospects of Duque Papetiers Gros, a stationery manufacturer based in Northern France, focusing on potential expansion into European markets like Germany and Switzerland. It examines the wholesale stationery market in Germany, including annual spending per capita, sales data from 2015-2017, and the feasibility of expanding internationally while adhering to ISO standards. The analysis includes evaluating the costs of a new building, the mean value of orders, and customer satisfaction levels. The report uses correlation coefficients and linear progression to predict future sales trends and assesses the benefits and drawbacks of expanding into Germany. It concludes that expanding into Germany could be profitable, provided the company adheres to international standards and improves customer satisfaction.

BUSINESS ANALYSING INFORMATION AND DATA
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Table of Contents
1. Introduction.............................................................................................................................. 3
2.Analysis of Issues for Duque Papetiers Gros...............................................................................4
2.1 An Overview of the Wholesale Stationers Market in Germany................................................4
2.2 Annual Spending on Writing/Drawing Materials per Capita....................................................6
2.3Analysis of Duque’s last three financial years of sales data (2015-2017)..................................8
2.4Feasibility of Expanding to Germany & International Standards............................................11
2.5Costs of a New Building...........................................................................................................13
2.6Mean Value of Orders.............................................................................................................. 14
2.7Customer Satisfaction............................................................................................................... 15
3.Conclusions.................................................................................................................................16
4.Reference List............................................................................................................................. 17
5. Appendix....................................................................................................................................18
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1. Introduction
Analyzing the prospects of business expansion is one of the important elements of growing the
business. ‘Duque Papetiers Gros’ is an organization based in Northern France and
manufactures various kinds of stationery items. The organization is planning to expand its
operations in other countries of Europe. For this, the organization needs to analyze the market
and identify the potential opportunities and risks. The company has been earning considerable
amount of profit in the mother country and now is looking for opportunities to trade in other
countries. Switzerland and Germany are viable options for expanding the business for the
above mentioned organization.
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2. Analysis of Issues for Duque Papetiers Gros
2.1 An Overview of the Wholesale Stationers Market in Germany
According to the MCGC reports, the demand for stationery products in Germany is quite high.
On the other hand, the demand for German stationery goods is quite high all around the world.
The stationery products manufactured by different organizations in Germany possess high
quality and are quite popular among people around the globe. The German products include all
the new innovations in it which caters to the need of the consumers. Various well-known
stationery items manufacturing organization is Germany are Faber-Castell, Lamy Stabilo and
MontBlanc. €15 billion is the annual turnover for the stationery market of Germany. Due to the
increased demands of German stationery items all around the world, the turnover of the industry
is increasing every year.
Figure 1: Production of different stationery items in 2014
(Source: MCGC Perspectives, 2018)
The graph provided here gives information about the manufacturing of different stationery goods
in the year of 2014. The items which have been selected in the graph give a total production cost
of €510 million. The demand of the writing and drawing materials has increased and the
organization needs to increase its production to meet the needs of the consumers. This can be
helpful in curbing the competition in the market. The export quotient is quite high for stationery
products manufactured by the various organizations.
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Figure 2: Export Rate of stationery products in 2014
(Source: MCGC Perspectives, 2018)
In the graph given above, the export arte of stationery products produced by Germany have been
evaluated. The worth of the exports of stationery items is €676million. The production rate and
the export rate provide important facts and figures regarding business expansion in countries
such as Germany and Switzerland.
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2.2 Annual Spending on Writing/Drawing Materials per Capita
(Refer to the appendix for the graph)
Table 1: Stationery Items and its Worth in 12 Countries
(Source: MCGC Perspectives, 2018)
The organization Duque Papetiers Gros is looking for opportunities to expand its business in
Europe. Before setting plans for expansion it is important for the organization to analysis various
external macro factors. This helps the organization the potential risks and opportunities. In the
table given above, the 12 nations have been considered and the per capita expenditure has been
evaluated regarding buying of stationery items. In the first three countries given on the table, the
per capita expenditure is the highest. In Austria, Germany and Switzerland the expenditures are
€35m, €35.20m and €35.50m respectively. The rates of expenditure provide a brief idea that
opening up stationery products manufacturing in these countries is a profitable idea. Duque
Papetiers Gros can open up franchises in Austria, Germany of Switzerland as the growth options
are quite promising in these countries. With innovation and creativity in its products, the
organization can have huge market share in above mentioned countries. Countries like Hungary,
Slovakia and Italy do not seem to a promising market for the organization. According to the table
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given above, the per capita expenditure on stationery products is the lowest the countries like
Czech Republic, Poland and Croatia. ‘Duque Papetiers Gros’ should not consider these
countries as feasible options to expand its operations. The organization would not get more
profits to earn if it plans its expansion in these countries.
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2.3Analysis of Duque’s last three financial years of sales data (2015-2017)
A. (Calculations provided in the Appendix)
Table 2: Last three years sales of Duque Papetiers Gros
(Source: Created by the learner)
B. (Refer to the Appendix for pie diagram)
In the table given above, the sales for the years 2015, 2016 and 2017 have been given. The
yearly sales for the year 2016 were quite high and it has been a profitable year for the
organization. Duque Papetiers Gros witnessed the maximum sales in the category of shredders
and writing/drawing material in the year 2016. The graph resonates the fact that, there has been
an increase in the sales value of shredders and writing materials in the year of 2017. However,
the organization has witnessed quite a downfall in the annual sales amount for the organization.
C.
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Table 3: Correlation Coefficient of Annual sales
(Source: Created by the learner)
Figure 3:
(Source: Created by the learner)
The annual sales of Duque Papetiers Gros for the last 3 years have been plotted in the above
scatter diagram. The relation among the two different variable have been denoted by R2 . When
the value of R2 comes approximately near to 0, the result is predicted to be fragile in nature. In
other situation, when the value of R2 comes year to 1, the result is predicted to be strong in
nature. Generally, the value of R2 comes within 0 to 1. 0.9 is the value of R2 for the year 2015-
2016. The result of R2 proves that the calculation is strong. On the other hand, for the year 2016-
2017, the value of R2 is 0.85. Appropriateness is indicated by this value. For the years of 2015-
2017, the assessment of R2 is 0.54. The value of R2 here indicates the existence of relationship
between the two different variables.
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D. The given above diagram of linear progression deduces the fact that, the company will
flourish in the years that are coming. The company did not gain any profits in the year of 2017.
However, it is being predicted that the organization will earn profits at the end of this year.
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2.4Feasibility of Expanding to Germany & International Standards
Table 4: Drawbacks and Benefits aligned to the business
(Source: Created by the learner)
A business organization has to analyze and calculate the opportunities and the risk before
drawing plans of expansion. The table that has been drafted above shows that the organization
will gather more benefits than drawbacks. Expanding its business in Germany will be a
profitable idea for the organization.
B. The companies which are going to expand its business in the other countries should follow all
the rules and regulations for successfully conducting its business. When an organization tackles
the rules and regulations of the country where it is going to expand, the barriers get minimized
and introduction of innovative goods and services becomes easy. Easy business rules and
regulations help organization to operate with the existing structure. The ISO standards should be
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maintained by the organization which is operating in the manufacturing of goods and services
(Iso.org, 2018). Example of 2 ISO standards has been given below:
ISO 4217: 2015- This code of standard specifies that organizations should follow currency codes
very diligently. All the global financial transactions can be easily accessed by using
alphanumeric and alphabetical codes of currency.
ISO 50001: 2011- This code of international standards regulates the fact that the organizations
are improving various aspects of their business on a regular basis. This standard looks into the
matter that the organization modifies the services and the products on a regular basis and also
promotes development and growth in the organization. this is done to meet the demands of the
consumers and the market.
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