Report for Duque Papetiers Gros: Germany Market Expansion Analysis

This report analyzes the potential for Duque Papetiers Gros, a French wholesale stationery business, to expand into the German market. It begins with an overview of the German wholesale stationers market, including annual spending on writing materials. The report then examines Duque's financial performance over the past three years, including sales data analysis and correlation coefficients. It assesses the feasibility of expansion, considering both pros and cons, as well as relevant international standards like ISO 45001 and ISO 14000. The report also includes calculations related to the costs of a new building, the mean value of orders, and a customer satisfaction report. The conclusion summarizes the findings, emphasizing the importance of a well-defined business plan and strategies for successful market entry. The report highlights the potential for profitability in the German market and underscores the need for strategic planning and market research for successful expansion.

Report for Duque Papetiers Gros

Table of Contents
1. INTRODUCTION.......................................................................................................................1
2. ANALYIS OF ISSUES FOR DUQUE PAPETIERS GROS......................................................1
2.1 Overview of Wholesale Stationers Market in Germany.......................................................1
2.2 Annual spending on writing/drawings material per capita...................................................2
2.3 Evaluation of Duque financial period of sales from last three year......................................3
2.4 Feasibility of expanding to Germany & International Standard...........................................8
2.5 Calculation of certain cost for new building.........................................................................9
2.6 Mean value of orders...........................................................................................................10
2.7 Customer satisfaction report...............................................................................................11
3. CONCLUSION..........................................................................................................................11
REFERENCES..............................................................................................................................13
.......................................................................................................................................................13

1. INTRODUCTION
Donald Duque has run a small family business in Northern France in departmental sector.
It serves stationery products like office furniture, shredders, low-cost printers, cartridges, paper-
based supplies and more. This organisation doesn't sell items directly to end-customers. It
comprises with other whole sale traders of this nation (Taylor and et. al., 2014). For growth of
business, this company is going to expand its market area in other countries like Germany. The
present report is going to make proper planning for this expansion by gathering specific
information. It includes annual spending on writing and drawing material per capita and
feasibility of expansion as per Germany and International Standard.
2. ANALYIS OF ISSUES FOR DUQUE PAPETIERS GROS
2.1 Overview of Wholesale Stationers Market in Germany
Germany is taken as one of the highly developed country in terms of social market
economy. It is the fourth largest nation which has earned highest nominal GDP. Along with this,
it is also recorded as largest trade surplus therefore, it has strong innovative as well as profitable
base for foreign companies. This country also rich in natural resources like Timber, lignite,
potash and some ores. Thus, companies dealing under manufacturing sector gain advantages to
get resources and other raw materials on low cost easily. According to Sevier, Hand Held
Products Inc (2015), it has evaluated that 99% of all companies in German are family owned and
deals in small and medium sector. Therefore, it proves beneficial for Duque Papetiers to enter
into business market of Germany. With growing use of technological devices like smart phones,
portable computers in organisations, tablets and so on, need for writing instrument are reduced.
But as per Germany reports, it provides retail sales data which give information about shape and
size of marketplace at national level. This will allows Duque Papetiers in determining proper
sectors for driving future growth for business.
Overall sales position:
As per MGCC report, it has ascertained that in first stage of accounting period, near
about 3.5% earned by selling of stationary products. While overall revenue collected at the end
of financial period is more than 14.8 billion per annum.
1

2.2 Annual spending on writing/drawings material per capita
Stationery includes a wide range of daily usable items like paper-based supplies, office
furniture, low-cost printers, cartridges, shredders, writing/drawing materials, greeting cards,
pencil and more. These are considered as essential requirement for organisations, schools and
educational institutions. But with innovation of electronic products like smart phones, tablets,
portable computers and more, demand of writing pad materials are decreased from marketplace
(Nečas and Klapetek, 2012). In context with other stationery items like printing supplies, carbon
& stencil paper, inked ribbons, mailing supplies, paper envelops, paper-based products, business
forms and books etc. are considered as still in demand for personnel usage by people.
It has been analysed from annual report found in MGCC, that near about 35.2 billion
turnover earned in accounting period of 2016. It has shown that still in some countries,
companies deals in stationary product has opportunity to earn high revenue by fulfilling demand
of marketplace. As compared to other countries like Poland, Hungary, Italy and more, Germany
has more growth opportunities for stationary business. Therefore, by expanding business in this
nation, Donald Duque will get definitely high growth and success. This company will gain
specific favourable aspects for improving and increasing its sales performance.
2

From this mentioned chart, it has interpreted that Switzerland and Germany are recorded as
high revenue viz. near about 35.5 billion and 35.2 billion respectively. While other nations like
Italy, Hungary and other nations, is noted as 18.6 billion and so on. Thus, all these conditions
shows that there are some favorable conditions which give opportunity to Donald Duque for
further business expansion of business in terms of stationary position.
2.3 Evaluation of Duque financial period of sales from last three year
(a): Data indicating the sales generated during the last three years of Duque Papetiers
3
Croatia Poland Germany Italy Hungary Switzerland Austria
0
5
10
15
20
25
30
35
40
7.9 8.5
35.2
18.6
9.6
35.5 35
Column B

b) Mix-pie chart
(i) For 2015 Sales
(ii) For 2016 Sales
4
25000
25000
15000
25000
25000
25000
25000
165000
Printer cartridges
General office supplies
Low-cost printers
Office furniture
Shredders
Paper-based supplies
Writing/drawing materials
Total sales
26000
27000
18000
25000
29000
27000
30000
182000
Printer cartridges
General office supplies
Low-cost printers
Office furniture
Shredders
Paper-based supplies
Writing/drawing materials
Total sales

(iii) For 2017 Sales
c) Computation of coefficient of correlation
(i) Coefficient of correlation between sales of 2015 and 2016
5
22000
23000
18000
27000
29000
27000
32000
178000
Printer cartridges
General office supplies
Low-cost printers
Office furniture
Shredders
Paper-based supplies
Writing/drawing materials
Total sales

(ii) Coefficient of correlation between sales of 2016 and 2017
6
0 1 2 3 4 5 6 7 8 9
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
25000 25000
15000
25000 25000 25000 25000
165000
Sales 2015 (€)
Sales 2016 (€)

As per above presented scattered representation, it has been interpreted that sales of wide
range of product items of Duque Papetiers are continuously increasing every by year. Through
correlation coefficient calculation, it has analysed that there is a high correlations between 2015
and 2016 with sufficient outcomes i.e. near about 0.90088. Similarly in years 2016 and 2017 i.e.
7
0 1 2 3 4 5 6 7 8 9
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
26000 27000 18000 25000 29000 27000 30000
182000
Sales 2016 (€)
Sales 2017 (€)

0.847510399 also shows effective positive correlation. This would reflect that there is a high
profitability and growth of business as well as consistently increasing.
(d): Predication of total sales during the period of 2018-2019
With above data analysis of previous three years of financial data, it has estimated that
there is a strong position of Duque Papetiers in marketplace (Munson and et. al., 2014). It also
shows that there is a strong base for making further plan of business for upcoming year. For this
purpose, its managers have targeted to enhance sales performance by near about 2% in next two
years. Therefore, a prediction of sale performance in upcoming periods can be assumed in
following manner:-
8

In this regard, as per given trend line that represents estimated sales of Duque Papetiers in
upcoming two years, it has interpreted that there is a large scope of its business in future. By
entering into new market area of Germany, sales performance of its business much improved and
enhanced too.
2.4 Feasibility of expanding to Germany & International Standard
It has been ascertained from all above discussion that opening business in Germany for
Duque Papetiers is much effective (Kaisler and et. al., 2013). As there is a large demand of
stationary products in this country as well as it is also rich in terms of natural resources.
Therefore, in order to know the feasibility of expansion to Germany and International standard, a
pros and cons is done in following manner:-
Should I expand my business to Belgium & Germany?
Pros Score/10 Cons Score/10
Potential to earn revenue on the
economics of scale 7
Less creativity in business and
ineffective delivery procedure 4
Highly talented and skilled staff
members 8
Less investment for motivating
and maintaining employee
motivation 3
Flexible and dependency on optimum
utilisation of resources effectively 6
Tracking ability of employee
performance 4
Proper communication skills and
abilities 8
Face to face interaction about
various programs and polices 4
Can handling any type of situation
and pressure as well as can achieve
9 Controlling of operations
capability
5
9

better success and growth in
upcoming years
Total Pros 38 Total Cons 20
Average Pros 7.6 Average Cons 4
ISO standards: There are different kinds of international standard that provide
opportunities to business organizations for further expansion in other countries (Krpan and
O'Connor, 2017). In context with Duque Papetiers, some of the international standards are:-
ISO 45001: It is considered as one of the international standard for management system
which gives an appropriate framework that needs to be managed by companies. This standard
helps in establishing high level of organisational structure needs which are beneficial for running
business for longer period.
ISO 14000: It refers to a series of management standard which gives a guideline for
companies to improve their management efforts. For this purpose, it provides appropriate tools
for managing environmental roles and responsibility. But following this international standard
affects negatively on environment in terms of implication on water, air and other aspects.
2.5 Calculation of certain cost for new building
(a) Calculation of monthly cost for 30 year
Formula:
10