Business Report: Analyzing the Stationary Business of Donald Duque

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Added on  2020/09/17

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This report provides a detailed analysis of Donald Duque, a small stationary business, examining its performance and potential for expansion. The report begins with an overview of the stationary market in Germany, highlighting key trends, market structure, and the industry's contribution to the German economy. It then presents an analysis of Donald Duque's sales figures over three years, including total sales, a mixed pie chart of product sales, correlation coefficient measurement, and sales forecasts. The report also analyzes the benefits and drawbacks of business expansion, along with the international standards the business must adhere to. Financial aspects, such as mortgage repayment calculations and interest rate impacts, are included. The report also includes a hypothesis test, suggestions for improvement, and descriptive statistics. The report concludes with a summary of the findings and recommendations for future growth.
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ASSESMENT
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Overview of stationary business in Germany.......................................................................1
Overview..........................................................................................................................................1
TASK 2............................................................................................................................................2
2.1 Presentation of annual spending upon writing/Drawing material.........................................2
TASK 3............................................................................................................................................3
3. Analysis of last three years subject to sales figures of Donald Duque...................................3
a) Total sales...............................................................................................................................3
b) Mixed Pie chart.......................................................................................................................4
c) Measurement if correlation coefficient and its interpretation.................................................4
d) Sales forecast..........................................................................................................................5
TASK 4............................................................................................................................................5
a) Analysis of benefits and drawbacks........................................................................................5
b) International standards required to adhere by Donald Duque................................................6
TASK 5............................................................................................................................................6
a) Calculation of each month cost about repayment of mortgage of 30 year..............................6
b) Re-calculation of each month cost after application of interest on loan at every month........7
TASK 6............................................................................................................................................7
TASK 7............................................................................................................................................7
a) Suggestion for betterment.......................................................................................................7
b) Descriptive statistics...............................................................................................................9
TASK 8 .........................................................................................................................................10
Summary of report....................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
APPENDIX....................................................................................................................................13
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INTRODUCTION
Data analysis is known as a process contains logical and analytical examination of
subject, problems remain associated with a component and elements. Transforming, cleansing,
inspecting of information and data subject to particular purpose are considered in this process.
This is one of the essential aspect in respect of analysing data subject to decision making process
(Shagoury and Power, 2012). With the help of analysing data small business and entities get
opportunities to grow further and be able to achieve desired goals and objectives.
Donald Duque which is a small family running a small stationary businesses. It is
working in Northern France and wants to explore more and the wants to contributes to economic
growth of country. Information about customers, feedbacks and suggestions are analysed for
further business expansion plan.
TASK 1
1.1 Overview of stationary business in Germany
Overview
As per provided data an information it is seen that the market of stationary is in optimum
condition. there are some significant aspects come across while analysing the report published by
Trade Associations for office writing materials. It is analysed that the overall industry is counted
as 14.8 billion every year. Stationary products are used in Germany at high rate. Architectures,
artists and art fields are the major section subject to utilising stationary products. As per report it
is recorded as 35.2 was spent every in drawing materials and stationary products. Germany is
on the 2nd position in European countries. It is seen that 70% of the brand are experienced
increase in sales in 2015.
Current trends and potentials
German stationary market is one of the booming sector in Germany and all over the
world. Goodwill of German Stationary market is in very well position due to which it become
able to capture stationary market (Polkowski, 2013). Price of stationary products are differ as per
clients requirement. At present 3D painting artist demand variety stationary products like sketch
brushes, types of shades and colours, papers. Due to increasing trend of creative paintings and
sketches sales also increased by 5% in 2015. it is estimated that the trend will continue till 2016.
Market structure
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As per past analysis some statistic records are seen that 2200 wholesale organisations are
operating and running their stationary industry. It is analysed that the companies are having
optimum turnover less than 500000. Approx 5500 retailers exists in the German market with
the turnover of less than €250,000.
Contribution of stationary market in German Economy
Significant changes are made in respect of turnover in stationary retail market. There are
two main pharmacy company of Germany are offered to continue business as stationary business
(Masoud and Hardaker, 2012). Providing type of papers and stationary products are the main
objective subject to enhancing customer attraction and interest.
Technology and advancement are also economic booster which contributed valuable
efforts within the economy of German. E-commerce is the part of technology which helped
organisations to enhance their business at next level. Customers be able to get products through e
commerce websites (Chambers, 2018). It works 24 hour so that clients and customers can easily
get products and services through E-commerce.
TASK 2
2.1 Presentation of annual spending upon writing/Drawing material
There is a graphical presentation is done in respect of stationary market in Germany. Turnover of
stationary industry is defined in below table on the basis of graphical presentation done.
Country Per capita (€)
Switzerland 35.5
Spain 8.9
Poland 8.5
Italy 18.6
Germany 35.2
France 28.3
Austria 35
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As per above Bar chart presentation it is analysed that Germany is on the second position
in the stationary market. As per above bar chart analysis it is observed that drawing, sketching
and writing material contains large number of share in turnover of stationary industry. As per
above mentioned information the turnover of stationary market in Germany us €14.8 Billion per
annum. From the above table the total turnover was calculated as €35.2 in which drawing
material contains major share (Benth and et. al., 2014). There are also some other counties are
defined in table which also deals in different paper sheets and associated products. Bulgaria,
Poland, Italy and France are the countries which in diversified products papers. Hypermarkets
and supermarkets are the main assisting factor which helped to boost the stationary market in
Germany. These market captured large share subject to attaining consumer and client attraction.
Advertisement and promotion are also some market exploring approached and attaining
customer interest. Digitalisation also played vital role in respect of increasing the number of
customers.
TASK 3
3. Analysis of last three years subject to sales figures of Donald Duque
a) Total sales
Refer appendix 1
As per sales figures given in the table it is ascertained that organisation is growing
towards success continuously. Sale of different type of product segment helps to increase the
graph of sale. Overall growth of organisation is depend upon diversified market situation. In
2015, organisation attain 165000 sales which get increased up to 182000. there are only two
stationary items such as cartridges, printer, general office supplies, shredders and paper based
3
Switzerland
Spain
Poland
Italy
Germany
France
Austria
0 5 10 15 20 25 30 35 40
35.5
8.9
8.5
18.6
35.2
28.3
35
Column E
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supplies are some key products. Stationary items and printer were the less selling products and
all other stationary products were recorded as increased selling products ( Öberg and et. al.,
2011). Products are recorded as less in terms of total sales such as 178000. percentage change is
recorded as 10.30% for the year 2016. in 2017 sales recorded get decreased in by 2.20% in terms
of revenues.
b) Mixed Pie chart
Above pie chart defines the sale graph of various stationary products in 2016-2017. it is
analysed that general office supplies and printer cartridges are recorded as less selling products
and least contribution to revenues. Sales records of cartridges in 2017 get increased by 2%. there
are constant results come out by analysis of sales records of paper products in 2016 and 2017.
c) Measurement if correlation coefficient and its interpretation
Year Total sales (in €)
2015 165,000.00
2016 182,000.00
2017 178,000.00
Correlation coefficient 0.73
Correlation coefficient is considered a statistical approach in order to determine the
relationship between two variables. There is a relationship between sales and revenues are
measured with the help of this statistical technique ( Peck and Devore, 2011). Results which
comes under limit form 0.25 to 0.75 are considered favourable. 0.73 correlation coefficient is
measured in terms of sales and revenues which shows positive outcomes.
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d) Sales forecast
1 2
2017.4
2017.6
2017.8
2018
2018.2
2018.4
2018.6
2018.8
2019
2019.2
2018
2019f(x) = x + 2017
Trend line
Year
Linear (Year)
Sales
Year Sales
2018 6500x + 162000
= 6500 (4) + 162000
= €188000
2019 6500x + 162000
= 6500 (5) + 162000
= €194500
TASK 4
a) Analysis of benefits and drawbacks
Pros Score/10 Cons Score/10
Increasing customer
base 7 Extravagant staff turnover 7
Economies of scale 6 Impact on quality 6
Skilled or proficient
personnel 8 Intensive capital need 5
Relocation
possibilities 6 Loss of functional control 6
Total Pros 27 Total Cons 24
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Net outcome can be determined as under = Total score of Pros – Total score of Cons
= 27 – 24
= 3
There is an analysis done in respect of business expansion plan of Donald Douque. Pros
and cons table is used to analyse the results. Types of pros are compares with type of cons and
the net results are evaluated on the basis of increased balance of pros (Shagoury and Power,
2012). In the above table results are measured in terms of business expansion plan in several
aspects like economical aspects, skilful personnel and customers Germany and Belgium are
preferred for the business expansion plan.
b) International standards required to adhere by Donald Duque
International standards are considered as a laws and legislations which provides
multinational organisation a compliance structure. It helps organisations to work ethically in
international market (William, Glover and Prawitt, 2016). There are some major standards
discussed below which may build strong ethical structure for Donald Douque:
ISO 31000 Management of risk: this standard basically helps to manage and control the
action and plans for a new business. It provides a path to comply control system with in the
organisation subject to abolish associated business risks.
ISO 14000 management of family-environmental: Donald Doque is an organisation
which deals in parer and stationary products. There is a huge amount of natural resources are
required to manufacture papers and colours. This standard will help to manage natural resources
with in the organisation.
ISO 45001 Occupational health and safety: providing health and safety features and
equipments to protect employee's health are covered in this standard. There is a responsibility of
organisation to protect right of employees.
TASK 5
a) Calculation of each month cost about repayment of mortgage of 30 year
Particulars Figures
Time 30 years
Loan payment = Total loan amount /
Discounting factor =
= € 21215.85
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Monthly repayment 21215.85 / 12
= €1767.98
b) Re-calculation of each month cost after application of interest on loan at every month
Particulars Figures
Time period (n) 30 years * 12 months (each year) = 360 times
Interest rate per month (R ) 10% / 12 = 0.00833
Monthly repayment
TASK 6
H1(Alternative Hypothesis): it indicates that the mean value with difference attained
from expected and actual order value.
H0(Null Hypothesis): It shows that there is no difference in mean value which is
calculated from expected and actual 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
There is a limit is measured in terms of selection and rejection of Hypothesis
P>0.05 : it indicates Null hypothesis is true or acceptable
P<0.05: Alternative hypothesis proved
As per above analysis it is seen that the value of Z score is measured as 0.23 which is
more then the limit of 0.05 which present favourable results. There is no significant difference
exist.
TASK 7
a) Suggestion for betterment
This is one of the important technique which helps to analyse customer perspective. This
is considered as a primary method which contains various research questions subject to gather
important information and figures. At present the closed enders format regarding questionnaire is
formulated and attached with multiple answers. These formats are distributed to 20 respondents
in order to attain feedbacks and suggestions.
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b) Descriptive statistics
Statistics
VAR0000
2
VAR0000
3
VAR0000
4
VAR00005
N
Valid 21 21 21 21
Missing 0 0 0 0
Customer service
Frequency Percent Valid
Percent
Cumulative
Percent
Valid 2 3 14.3 14.3 14.3
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