Free Paper Sample: An Overview of the Stationery Business in Germany

Task 1

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The German stationery brand has gained over time an outstanding reputation both locally and internationally that has enabled it to increase its market shares among the various private labels. The German stationery brand was formed by Trade Association to supply office stationery and the writing materials with the total revenue that the stationery industry brought about 14 billion and 8 million per annum (Turnover from retail sale of stationery, 2018). Comparing with other countries in the European Union regarding expenditure on stationery, Germany is ranked number two.

There has been an increase in sales in German of most of the companies that sell stationery since 2015. The data available shows that between 2014 and 2015, the sales volume had a growth rate determined at about 3.5% which was as a result of both the increase in demand in both the domestic by 2.5% and foreign markets by 4.5% (Turnover from retail sale of stationery, 2018).

The market has responded in different lengths in regards to the various products which in some aspect provide a challenge. For instance, there is a decreased sale level on the paper products while there has been substantive growth in the sales of both the writing instruments and offices supplies. According to HBS, this trend may continue in the foreseeable future (Statistica, 2017b).

The market is experiencing a decline in the number of wholesalers caused by mergers that are happening between companies or some companies leaving the market. Another trend that is happening in the market is the aspect of some supplies selling the stationeries direct to the consumer instead if using the middlemen with the aim of widening their market. The stationery is regarded as so easy to sell, and the retailers have increased. This can be illustrated by the situation whereby two pharmacy chains in Germany are expanding their supply chain in stationery products. The supermarkets and hypermarkets in Germany have also increased their stationery products. However, the main focuses of most of these stores are people who are buying products in masses and not those who are seeking for specific products (Franze & Sim, 2016). As a result, many retail traders have decided to expand and diversify their products to offer their customers a wide range of products that they can choose from

There is a meager birth rate in Germany, and this has in a significant way hindered the growth of the stationery market. The last trend that can be attributed to the stationery industry in Germany is the growth experience in e-commerce (Revenue share of e-commerce in paper, 2018). The market shares for businesses that own an online platform have been shown to increase with a current market share that is over 17%.

Task 2

From the per capita annual spending, we are in a position to known how much a person spends when they are buying stationery. In the table below, we can see the per capita income that is used in seven European countries to purchase stationery products (Franze & Sim, 2016). The counties I decided to use are;

• Switzerland
• Germany
• Austria
• France
• Slovenia
• Italy
• Slovakia

Table 1

The above data on per capita income by the seven countries can be represented in a graph as shown below.

Figure 1

From the graph, we can conclude that Switzerland followed by Germany had the highest per capita income that was spent on stationery at EUR35.5 and EUR35.2 respectively. As such we can also find that there is a viable market for Duque and if the company has the right product positioning and branding, the company can get high sales revenue In Germany.

Task 3

From the table provided, we can add a total sales row to show the total revenue generated from the sale of stationery.

Table 2

We can also calculate the total sales of the stationery products for both 2016 and 2017 as shown in the table below. LINK Excel.Sheet.12 "C:\\Users\\kibet\\Desktop\\Nerdy Turtlez\\Book18.xlsx" Sheet3!R1C1:R8C4 \a \f 5 \h \* MERGEFORMAT

Table 3

We can represent this data on a pie chart as shown below.

Figure 2

The total annual sales are as shown below.

Year / Sales

2014 - 164000

2015 - 173000

2016 - 179000

Table 4

These total annual sales by Duque can also be represented in a scatter diagram over the three years.

Figure 3

The correlation coefficient, in this case, is 0. 5348 which can be interpreted to mean that the sales have a positive correlation from 2015 to 2017.as a result we can conclude that there exists a linear relationship between the different variables and as a result, we expand the sales revenue to increase as the year progresses. The line of best fit is shown below.

Figure 4

As such, using the line of best fit, we can forecast the sales revenue for 2018 and 2019 using the forecast function Y=6500X - 1E+07. In this case, our correlation coefficient (R squared) is 0.5348. The forecasted sales revenue for 2018 is EUR188,000, and 2019 is EUR194,500.

Task 4

Pros and Cons When Duque is Expanded to Germany

Pros Score/10

Cons Score/10

The sales revenue of Duque is expected to increase as a result of a broader market. 6 There are cultural differences that exist. 2

The product brand visibility will be enhanced. 4 There might be financial losses in case the market fails. 2

The high demand means there is less competition in Germany. 3 Due to geographical differences then goods may be lost while in transit. 1

The changing trends in Germany favour the business. 3 Interferences by local politics may hinder the operations of the company. 1

Infrastructure development will help in the marketing due to movements of the stationery. 2 High cost expected to be incurred in the process of research. 2

Total 18 Total 8

Average pros 3.6

Average cons 1.6

Table 5

International Standards that Relate to Duque's Operations.

There are various international standards that Duque should comply with in its operations. One of those these international standards are the ISO 9000 which involves quality management. According to this international standard, the company should focus on the needs of the customers, the influence the top management has on the company, and that Duque should continue to improve its products and operations over time.

The other international standard that Duque should comply with is ISO 14000 which expects the company to mind the environment and protect it. This standard expects that Duque not to cause environmental pollution or deplete the natural resources instead it should conserve them. The third international standard is the ISO 26000 which emphasizes on corporate social responsibilities in that the company should have a good relationship with the members of the society and the environment in which they are undertaking their operations. In this case, Duque should operate in a manner that shows that it is socially responsible (Nbea.org, 2018). As a result, Duque should be transparent and ethical in all its operations and also contribute towards the development of the society.

Fourthly, Duque should adhere to the ISO 37001 that prohibits bribery and corruption in a company (guidelines et al., 2018). According to these International standards, a Duque should help fight graft and enhance good ethics in the society. Lastly, Duque should ensure that it complies to the ISO 45001 that aim to ensure that occupational health and safety measures of employees are enhanced. This standard provides the companies with a framework that can help improve the safety of its employees, reduces disease at work and also reduce risks. As a result, Duque should ensure it complies with these international standards to the letter.

Task 5

In this instance, the interest is charged on a compound interest basis, i.e. the principal amount at the beginning of every month. Thus we can calculate the principle using the formula;

Principle = total loan given = EUR 200,000 = EUR 555.56

Number of months 360 month

Then we calculate the compound interest using the formula;

Principle*(1+interest) ^years = compound interest

No. of months

EUR 555.56*(1+0.1) ^30= EUR 628.08

12

Per month they will pay EUR 628.08

using APR we can get the monthly repayment using the formula;

Principal*{(1+r) ^30-1} = EUR 555.56*{(1+0.0083)^30-1 = EUR 1755.14

Thus the monthly repayment is EUR 1755.14

Task 6

According to Donald, mean = 240 is his null hypothesis while else the alternative hypothesis to his assumption is mean 240

Since the sample size is 50, we can use the Z score test in the calculations

In this case, Z is calculated as the sample mean less the value being tested divided by the sample SD.

Z= (230-240)/43= -0232558

The value of computed Z from the Z tables is -1.645

We reject the null hypothesis mean = 240 because -0.2326 > -1.645.

Therefore the mean is not equal to 240