Report: Analysis of Duque Papetiers Gros's Market Expansion

This report analyzes Duque Papetiers Gros, a stationery product distributor, focusing on the German stationery market, its trends, and challenges. It presents data on annual spending on drawing and writing materials in European countries, Duque's sales from 2015-2017, and a correlation analysis. The report evaluates the feasibility of expanding into Germany and Belgium, considering international standards, pros, and cons. It also includes financial calculations, hypothesis testing on order values, and a customer satisfaction analysis based on questionnaires. The findings suggest a positive outlook for expansion, particularly in Germany, and provide recommendations for improving customer satisfaction and controlling costs.

Analysing Information and Data
for Problem Solving no 2

Report for Duque Papetiers Gros
Date:
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Report for Duque Papetiers Gros 2018
Introduction
Duque Papertiers Gros is organization which is dealing with stationery products along
with its distributions in international market. This business has appropriately built strong
customer base over 50 years as it consists of wholesale trade along with other business in
Northern France. The present report will give brief discussion about overview of Germany
stationery market with its trend and challenges. In the similar aspect, it will represent annual
spending on drawing and writing material per capita in European countries. This report will
show total sales of year 2015 to 2017 of each item with pie chart. It will represent various
merits and demerits for expansion of business operations in Belgium and Germany.
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Report for Duque Papetiers Gros 2018
Analysis of Issues for Duque Papetiers Gros
2.1 An Overview of the Wholesale Stationers Market in Germany
The stationery industry of Germany is positioned in proper aspect which could be
observed from this report. The total turnover of this industry is higher than €14.8 billion equal
to spending of every individual on yearly aspect by €182 billion. Germany has attained second
position among European Union countries as it spends €35.2 on material of writing and
drawing. In year 2015, Germany has increment of 70% sales in stationery brands as this
industry has gained growth from year 2014 to 2015 by 3.5%. It is outcome of increment in
domestic demand by 2.55 along with international demand by 5%.
Germany has obtained significant market shares because of its positive image in general
and writing instruments against private labels. On the contrary, this industry is also facing
numerous challenges such as products of paper like document folders and many more are
declining because of digitization but in offices its growth is raising due to office supplies along
with writing instruments (Germany – A Potential Stationery Market, 2018).
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Report for Duque Papetiers Gros 2018
2.2 Annual Spending on Writing/Drawing Materials per Capita
Illustration 1: Annual spendings for writing and drawing materials
per capita
The above graph is reflecting annual spending of writing and drawing materials which
is 35.2. There are various countries like Czech Republic, Hungary, Italy, Spain and Poland are
mentioned in this analysis. Switzerland is at 1st position and 2nd is belonged to Germany
followed by Austria and France as 4th position. The hypermarkets and super markets has also
collected various stationery products on basis of assortment as they are considered as leading
distributors in countries. In the similar aspect, the target customer are mass market products
and premium products such as specialist retailers. The advertisement of product should be on
continuous aspect as gained positive aspect for increment of buyers.
E-commerce had given positive effects in this stationery market. It helps the
organizations for marketing its products via digitization in appropriate aspect which gives
advantage to overall organization's setup. It had been indicated by statistics that online
stationery business and mail orders has accomplished growth in rapid aspect which is more
than 17% market share. The product assortment of huge range along with 24x7 accessibility is
refereed as important reason for preferring online mode. Further, to compete in this market the
stationery products are customized through retailers as per needs of consumers. In simple
words, it strengthens market presence through product selling which other retailers doesn't
have.
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Report for Duque Papetiers Gros 2018
2.3Analysis of Duque’s last three financial years of sales data (2015-2017)
The Duque's operation of three consecutive years plays essential role in elaborating
organization's future operation in this international market. In the present scenario, it is very
important for undertaking numerous factors which are engaged for setting appropriate
objectives. The sales of printer cartridges has reflected increment by 4% from year 2015 to
2016, however, it shows negative effect of -15.38% in its sales from 2015 to 2016. The main
reason was due to general office supplies as there is huge requirement of broad line for
understanding margin in two years but then significant loss in last year. In the similar aspect,
low cost printers had attained huge growth of 20% in 2016 and in 2017 it was neither profit nor
loss.
The office furniture sales gained positive fact such as low cost printers in year 2016 but
in 2017 its sales increase by 8%. The shredders cost was stable in years after initiating sales
which are mandatory practice of Duque on basis of complications in this story. Further, sales of
paper based supplies increased by 8% in 2016 and constant in 2017. The most important aspect
is opf writing and drawing materials is of 20% in 2016 and 6.67% in 2017. Hence, it could be
evaluated that in 2016 it attained increment in total sales by 10.30% but in year 2016 it was
negative effect as of -2.20%.
b. Mixed pie chart
c. Correlation coefficient through scatter plot
Total sale of year:
2015: 165000
2016: 182000
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Report for Duque Papetiers Gros 2018
2017: 178000
Correlation coefficient: 0.73
Interpretation: Correlation could be known as effective statistical tool for identifying
relationship among two specific variables. The result of correlation analysis shows moderate
level of relationship among sales and year (variable). The correlation in specified range of .25
to .75 is considered as moderate. Hence, the above analysis has given correlation outcome as
0.73 which is in range so it could be interpreted that sales will change in positive aspect in the
future.
d. Estimating sale of year 2018 and 2019
 Sales of 2018: 6500x + 162000
x=4: (6500*4) + 162000
=188000
 Sales of 2019: 6500x + 162000
x=4: (6500*5) + 162000
=194500
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Report for Duque Papetiers Gros 2018
2.4 Feasibility of Expanding to Germany & International Standards
There are various international standards which are necessary for complied by
European companies to expand business functions and activities. The global standards which
are directly associated with Duque's operation are stated below:
 ISO 9000 family- Quality management: It addresses different aspects on basis of
quality management which consists of ISO's best standards. It gives tools and guidance
for business entities for ensuring services and products in consistent for accomplishing
customer requirements from which quality is improved on consistent aspect.
 ISO 14000 family-environmental management: With reference to this standard,
organization has attained responsibility for undertaking activities of business in
environmental or eco friendly aspect.
 ISO 26000 Social responsibility: It provides guidance on organizations and business
could operate in social responsible method. It signifies act in transparent and ethical
aspect which directly contributes in health and welfare society (International
Organization for Standardization, 2018).
 ISO 31000 risk management: The objective of business could be accomplished by
following risk management strategies and practices showed be followed by Donald
Duque.
 ISO 45001 Occupational health and safety: As per this standard, Duque's accountability
has to make various appropriate arrangements on basis of personnel of health and safety
at workplace.
 In the similar aspect, Duque has to comply with Data Protection Act and has to
maintain confidentiality on basis of maintaining its requirements.
Pros and Cons of expanding in Germany and Belgium
Pros Score Cons Score
Out of 10 Out of 10
Improvement in consumer
base 9 High employee turnover 6
Economies of scale 8 Quality effect 7
Skilled and talented personnel 7 Requirement of huge capital 8
Possibilities relocation 6 Lack in operational control 5
Total Pros 30 Total Cons 26
Net outcome: Total of pros – Total of cons
= 30 – 26
= 4
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Report for Duque Papetiers Gros 2018
Interpretation: From the above analysis of pros and cons of expanding business
operations in Belgium and Germany is in positive aspect. It had been suggested to Duque that
it should lay special emphasis on this present expansion. Thus, this expansion is beneficial and
helps business for improving customer base along with profit and sales as well.
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Report for Duque Papetiers Gros 2018
2.5 Costs of a New Building
a. Calculating 30 year repayment mortgages
b. Re-calculating with assumptions about applied interest for monthly cost
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Report for Duque Papetiers Gros 2018
2.6 Mean Value of Orders
Null Hypothesis H0: There is no significance variation among mean value of actual and
expected average order value.
Alternative Hypothesis H1: There is significance variation among mean value of actual and
expected average order value.
Particulars Outcome
Mean of the entire population 240
Average of sample 230
Standard deviation 43
Z score assessment [ (Mean of the entire
population – sample average) / standard
deviation ]
(240 – 230 ) / 43
= 10 / 43
= 0.23
Interpretation: The criteria for choosing or rejecting hypothesis has been assessed that
when P value is more than 0.05 then null hypothesis is true or could be accepted. Similarly,
when P value is less than 0.05 then alternative hypothesis is true or accepted. In the above
scenario, P value of Z score is 0.23 which is greater than 0.05 from Z score assessment. By
considering this into account, it could be articulated about accepting null hypothesis and other
is rejected. Furthermore, p value is identified and it could be pertain that no significance could
take place among expected and actual mean value of average order. In simple words, it could
be elaborated that actual and expected order are moving in same direction (Wang and et.al.,
2017).
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Report for Duque Papetiers Gros 2018
2.7 Customer Satisfaction
There are total 20 questionnaires obtained which shows industry's position in its
market. The customer response gives present position of organization in market with
understanding about operations of organization in positive aspect with reference to industrial
domain. This task has reflected objective for making improvements and for accomplishing
success. The objective of considering feedbacks from customers is to respond on issues as
customer responsive rate of chosen respondents fall by 5%. It has been articulated with
customer evaluation are directly bothered on basis of returning completed questionnaire. The
customer responsive rate could be improved by various methods such as immediately feedback
should be taken after delivering goods and services as it should be gathered after 24 hours.
The right channel should be picked up such as email survey or sent through text
message. Generally, long surveys reduce response rates and bore as well so it should be always
short and focussed with absence of incentive. Further, the target audience must be motivated
through attractive designs and graphics along with clear questions. The respondents must be
thanked for time and motivating them for completing survey. In the similar aspect, survey
should be personalized for raising response rate along with customizing its questions, human
dimensions and invite for responses as well (15 Ways to Improve Survey Response Rates,
2018).
Descriptive statistics
Particulars CUST_SERV QUAL_P&S SALES_STAFF PRICE_VALUE
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: While evaluating primary data, it had been extracted that mean of
respondents had given positive outcome for Duque's quality of product along with sales staff,
customer's service and support as its mean is about 1.95 which exhibits customer view. In the
similar aspect, standard deviation is accounted as 0.51 which is not low or high. It could be
interpreted that, consumers perception level does not signify as per given rating through
average participants. With context to outcome by statistical evaluation has given
recommendation to Duque for controlling its cost and to give customers with appropriate
products at affordable price for increasing level of satisfaction.
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Report for Duque Papetiers Gros 2018
Conclusions
From the above study it had been concluded that Germany has gained the best position in
stationery market and in the similar aspect, Germany stationery suppliers are laying
importance to diversification along with quality of product. It had been articulated that
evaluation of numerous people highly spend on drawing and writing material. Duque
would accomplish its success by considering desired level of outcome with exploring
business operations in various other countries such as Belgium and Germany.
Furthermore, it had shown primary evaluation as Duque has to lay emphasis on various
competent pricing policy for ensuring appropriate margin and to influence of consumer's
decision making.
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Report for Duque Papetiers Gros 2018
REFERENCES
Books and Journals
Wang, Z. and et.al., 2017. Voltage fault diagnosis and prognosis of battery systems based on
entropy and Z-score for electric vehicles. Applied energy, 196, pp.289-302.
ONLINE
15 Ways to Improve Survey Response Rates. 2018. [Online]. Available through
<https://www.nextiva.com/blog/15-ways-to-increase-survey-response-rates.html>.
Germany – A Potential Stationery Market. 2018. [Online]. Available through:
<http://www.malaysia.ahk.de/fileadmin/ahk_malaysia/Perspectives/MGC047-
Mar.Apr16_iPAD.pdf>.
International Organization for Standardization. 2018. [Online]. Available through:
<https://www.iso.org/home.html>.
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