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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.

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Analysis Of Issues For Duque Papetiers Gros

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.

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.

Nations

Yearly spending (€) in billion

Poland

8.5

Croatia

7.9

Germany

35.2

Hungary

9.6

Italy

18.6

Switzerland

35.5

Austria

35

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.

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

Product items

Sales 2015 ()

Sales 2016 ()

Sales 2017 ()

Printer cartridges

25000

26000

22000

General office supplies

25000

27000

23000

Low-cost printers

15000

18000

18000

Office furniture

25000

25000

27000

Shredders

25000

29000

29000

Paper-based supplies

25000

27000

27000

Writing/drawing materials

25000

30000

32000

Total sales

165000

182000

178000

(B) Computation of coefficient of correlation

(i) Coefficient of correlation between sales of 2015 and 2016

Product items

Sales 2015 ()

Sales 2016 ()

Printer cartridges

25000

26000

General office supplies

25000

27000

Low-cost printers

15000

18000

Office furniture

25000

25000

Shredders

25000

29000

Paper-based supplies

25000

27000

Writing/drawing materials

25000

30000

Total sales

165000

182000

Coefficient of Correlation

0.9

(ii) Coefficient of correlation between sales of 2016 and 2017

Product items

Sales 2016 ()

Sales 2017 ()

Printer cartridges

26000

22000

General office supplies

27000

23000

Low-cost printers

18000

18000

Office furniture

25000

27000

Shredders

29000

29000

Paper-based supplies

27000

27000

Writing/drawing materials

30000

32000

Total sales

182000

178000

Coefficient of Correlation

0.85

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.  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.

(C): 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:-

Product items

Sales 2018 (€)

Sales 2019 (€)

Printer cartridges

22440

23000

General office supplies

23460

24000

Low-cost printers

18360

18870

Office furniture

27540

28090

Shredders

29580

30171

Paper-based supplies

27540

28090

Writing/drawing materials

32640

33292

Total sales

181560

185513

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.

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 better success and growth in upcoming years

9

Controlling of operations capability

5

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.

Calculation of certain cost for new building

(a) Calculation of monthly cost for 30 year

Formula:

A*(1+r)n – 12 * X { (1+r)n / (1+r) – 1} =0

Where,

A= value of mortgage

R= rate of interest expressed as decimal

n = repayment period

x = Monthly repayment

=200000 (1.1)30– 12 (x) {1.130– 1 / 1.1 -1} = 0

=200000 (1.9756) – 12 (x) {1.9756-1 / 1.1-1} = 0

= 395120 – 12x (.9756/ .1) =0

=395120– 12(9.756) x = 0

=395120= 117.072x

X= 395120/117.072

X= 3375.017.

(b) Re-calculation of using loan interest amount

Particulars

Figures

Time period (n)

30 years * 12 months (each year) = 360 days

Interest rate per month (R )

10% / 12 = 0.00833

Monthly repayment

0.00833

Mean value of orders

For making effective evaluation of all gathered information, it has analyzed that mean value of order can be calculated by using overall data. This would be cost to near about €240 pounds (Miletzki and Broten, 2017). But, finance managers of Duque Papetiers are required to make at least 100 orders in every month. In this regard, samples size of 50 has been taken into account with standard deviation of €43. The null hypothesis i.e. the mean value of order that is near about €240 per month. In contrast with this, alternative hypothesis can be defined in following manner:-

H0: μ = £240

H1: μ ≠ £240

Where, μ stands for the mean value.

Working at the 5% level of significance.

Since standard deviation of total population is not known, therefore, statistical team of  Duque Papetiers has identified an estimation of standard error from mean sample standard deviation that is near about S= 43. Thus, a sample that is wider than 30 is taken into account for calculation of standard errors(SE) of errors by using the given formula:

SE: Standard deviation / √���

= 43/ √50

= 43 /7.07

= 6.08= 6.

while in this regard, acceptance interval will be taken from [ μ – 2SE, μ + 2SE]

= 240- 2(6), 240+2(6)

= [228, 252].

Therefore, the sample mean which is taken into account as 230, has lied in given calculated interval (228, 252). Henceforth, acceptance region i.e. 95% of randomly-sampled also lie within this mention interval range. In this regard, accounting team of have to accept H0 and reject H1. It stated that mean value of orders received by Duque Papetiers is not as €240.

Customer satisfaction report

As per customer feedback, it has been analyzed that for successful expansion of business in new market of Germany, it is necessary for Duque Papetiers to adopt effective system. It will help in getting various benefits through which  this company can achieve its business objective in given period of time (Bardach and Patashnik, 2015). In addition to this, managers are needed to concern on various challenges also entering into new market area. This would help in making better decision and taking essential steps for better improvement also. For this purpose, effective business plan, adequate of  information, strategies and policies will aid Donald Duque to successfully expansion their business into Germany market.

Conclusion

From the mentioned information which is collected on Duque Papetiers, it has been concluded that wholesale market for stationary business is quite beneficial for earning profitability. For expanding business in other countries, this company is required to make proper business plan and strategies. This would help in launching business more effectively in new market area.

References

  • Bardach, E. and Patashnik, E.M., 2015. A practical guide for policy analysis: The eightfold path to more effective problem solving. CQ press.
  • Dunn, P.F., 2014. Measurement and data analysis for engineering and science. CRC press.
  • Jamin, J. ed., 2016. L'extrême droite en Europe. Bruylant.
  • Kaisler, S., and et. al., 2013, January. Big data: Issues and challenges moving forward. In System sciences (HICSS), 2013 46th Hawaii international conference on (pp. 995-1004). IEEE.
  • Krpan, D. and O'Connor, A., 2017. The man who mistook his wife for a hat. Macat Library.
  • Miletzki, J. and Broten, N., 2017. Development as freedom. Macat Library.
  • Munson, B. R., and et. al., 2014. Fundamentals of fluid mechanics. John Wiley & Sons.
  • Nečas, D. and Klapetek, P., 2012. Gwyddion: an open-source software for SPM data analysis. Open Physics. 10(1). pp.181-188.
  • Sevier, M. P. , Hand Held Products Inc, 2015. System and method for reliable store-and-forward data handling by encoded information reading terminals. U.S. Patent 8,971,346.

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