ANALYSING INFORMATION AND DATA FOR PROBLEM SOLVING 


Task 1

The recent study of Germany stationary industry has revealed that the industry is doing quite well in recent years. The overall turnover of the industry is more than € 14.8 billion per year; € 35.2billion of it is spent on writing and drawing materials(BurgerFuel, 2017).Among European Union countries, Germany ranks second in terms of spending on writing and drawing materials. Almost 70% of German stationary companies are witnessing increased sales since 2015. Germany stationary brands have good reputation in Europe and across the world. Especially writing materials produced in Germany has a significant market share against private brands(BurgerFuel,2017). Apart from development thisindustry is facing challenges due to massive digitalisation and reduction in paper and paper related materials production. However, office stationary and writing instrument brands are witnessing positive growth rates. According to Trade Association for Office Supply or HBS this trend will continue in long run. Not only for official purposes, demand for stationary products haswitnessed a significant growth in domestic sector as well.  Findings have shown that the sale of drawing materials and painting have grown above the average rate in recent years (BurgerFuel, 2017). People are encouraging their creativity and this contributes to a great deal in this industry growth.As per statistics, more than 2000 wholesale companies are operating in Germany’s stationary industry; this includes wholesalers who are selling office supplies, paper, writing instruments as well as B2B intermediaries who directly deal with commercial customers (Aposporiet al. 2012, p.30). The strategy of wholesalers of selling products directly to customers without retailer is gaining popularity in recent years, though apart from wholesalers, German stationary market is comprised of 5500 retailers who specialise in selling stationary products to customers (Kimet al. 2012, p.300).

Task 2

Total CD’s % of total Price of CD Estimated Profits % of total profit
Complimentary 130 2.7% 0 -260 -0.75%
General 353 7.4% 10 2824 8.12%
Mail order 167 3.5% 10 1336 3.84%
Web order 223 4.7% 10 1784 5.13%
Concert Performance 1376 28.8% 12 13760 39.57%
Retail 2459 51.4% 8 14754 42.43%
Brighton pubs 72 1.5% 10 576 1.66%
4780 34774

Task 3

a)

Product item  2014 Sales (€) 2015 Sales (€) 2016 Sales (€)
Printer cartridges  €      25,000.00  €     26,000.00  €     22,000.00
General office supplies  €      25,000.00  €     27,000.00  €     23,000.00
Low-cost printers  €      15,000.00  €     18,000.00  €     18,000.00
Office furniture  €      25,000.00  €     25,000.00  €     27,000.00
Shredders  €      25,000.00  €     29,000.00  €     29,000.00
Paper-based supplies  €      25,000.00  €     27,000.00  €     27,000.00
Writing/drawing materials  €      25,000.00  €     30,000.00  €     32,000.00
Total Sales  €    165,000.00  €   182,000.00  €   178,000.00

 

  1. b) Printer Cartridg
  2. General office supplies
  3. Low cost printers

Office Furniture

Shredders

per Based supplies

Writing/Drawing materials

c)

Correlation and coefficient:

YEAR Correlation and coefficient
2014-2015 0.900885233
2014-2016 0.693888666
2015-2016 0.847510399

 

 

It is evident from the correlation and coefficient that 2014-2015 has a strong uphill (positive) linear relationship. It is almost a perfect linear relationship (0.900885233) between 2014-2015. Moreover, in 2015-2016 a strong linear relationship is witnessed.

This continuous sales trend has witnessed that in 2016 company sales has gone down from previous year sales, though in 2017 Duque PapetiersGroswill witness €190000.00 sales and in 2018 the sales figure will be increased to €195000.00

Task 4

Should I expand my business to online (B2B)?

Pros Score/10 Cons Score/10
Payment speed, no issue of delayed payments or cheque bounce 7 Lacks personal communication 5
Receive orders from clients round the clock 8 Online payment could be inflated and this affects the revenue 6
Could reach clients from distant cities, states and countries 7 Flexibility is missing, loyal customer can’t get benefits of special offers and discounts 5
Online communication with clients incurs low cost 7
Total Pros 29 Total Cons 16
Average Pros 7.25 Average Cons 5.33

 

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