ACF658 Business Operations Level 3
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ACF658 Business Operations Level 3

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  • Level: Undergraduate/College
  • Pages: 16 / Words 4002
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INTRODUCTION

In accordance with stationary business which is happens to be more favourable in plenty of nations. Donald Duque wants to expand their business in global market. For this purpose, they have chosen Germany for their stationary products that is nicely balanced. According to the trade association for office supply and writing material, overall turnover of the entire company which expanding in more than £14.8billion yearly. This project report is providing vital information regarding various business operations of an organisation (Chambers, 2018). For this purpose of expanding its business operations in Germany they are looking to evaluate total market and other crucial facts. Further, this report is providing specific problems and to make their conclusion those are related with the business.

TASK 1

1.1: Overview About Stationary Business

In accordance with searching for appropriate business market, it is necessary to select those country which is providing maximum chances of generating more specific outcomes during the time. This will be helpful for an organisation to collect all essential resources that are going to be generate during establishment of business in various location. Through this, company owner will be liable to incur more reliable and positive results that is beneficial in delivering more effective opportunities to the company. As it has been seen that stationary business is capturing wide number of areas at very faster rate to various location in respect to attract maximum people to their own business (Ghilani, 2017).

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This will be more easy to increase overall customers base so that future advantages can be attain in more quick manner. This has been seen that approx £ 35.2 million of total spending is invested over the writing and drawing material. Germany is said to be second in accordance of costs for stationary products that are underpinned through evaluating facts that is more than 70 % of total market is captured by stationary brand. This positive reputation will lead to gain important market share at private or global level. Although, this particular industry consists of a large range of products with attractive features and quality to deal with any sorts of challenges those are associated with them. Paper industry are taken in consideration a primary sources of document folders that are expected to regulate their path of slow down total revenues.

Apart from this, specific business include certain range of products those are having valuable features which would attract maximum people toward their  own brand. This will assist in formulating an effective image and develop better opportunities of growth and performance in recent time. As per the mentioned case, it has been evaluate that a total of 2200 wholesale businesses are working in Germany. The decision made by the company out of setting more valuable gains during the period of time as more suitable for enhance profitability for Donald Duque. Thus, the product categorised as suffers significantly under the increasing of digitalisation which will make place to work in more effective manner. In respect to this, paper based products brand is primary segment which are experience as more strong growth rate for the company.  In respect to this is to provide maximum strength to their business at international level so that chances of gaining more benefits can be attain more quick time (Schabenberger and Gotway, 2017).

TASK 2

2.1 Presentation About Spending Upon Writing and Drawing Materials

Country

Per capita (€)

Switzerland

35.5

Germany

35.2

Austria

35

France

28.3

Italy

18.6

Spain

8.9

Poland

8.5

 Expenditure upon writing and drawing material

From the research, it is ascertained that writing and drawing material has largest contribution in the total turnover of stationary market. The total amount which spend by customers on writing and drawing materials is  €35.2. From all of the European nations, Germany attains the second and France has fourth position. It is noticed that there are large number of opportunities are available in Germany for expansion of stationary business. The total amount of turnover which is earned by Germany market from stationary business is around € 14.8 Billion per year. The major role is played by hypermarkets and supermarkets in development of the stationary industry. It is so because diversified products are provided by them simultaneously which helps in attraction of the large number of customers. It helps the nation to ascertain leading position. They providing their business activities at large level and for influencing the buying behaviour of customer they apply many promotional and advertisement techniques which bring awareness among them about their diversified offerings (Germany - A Potential Stationery Market. 2018.).

Online market is one of the important medium which helps in expansion of business operations. The major two conditions which helps in attraction of large number of customer's are 24 hour access with providence of diversified products. Such online market has 17% of share in stationary market of Germany.

TASK 3

3.1: Evaluating Total Sales Value of Donald Duques of Last Couple of Year

(a): Total Sale

Products

2015 sales

2016 Sales

2017 sales

Total sales

Printer cartridges

25000

26000

22000

73000

General office supplies

25000

27000

23000

75000

Low cost printers

15000

18000

18000

51000

Office furniture

25000

25000

27000

77000

Shredders

25000

29000

29000

83000

Paper based supplies

25000

27000

27000

79000

Writing/ Drawing materials

25000

30000

32000

87000

Total sales

165000

182000

178000

 

From the above data presented from the above report, it has been determine that proper growth is to be maintain through analysing stationary production done by the company during the time. There total increase in sales is recorded with 165000 in 2015 from printer cartridges and some common office supplies. There is increment in sales volume with 182000 in 2016. Total earning incur from office furnitures and writing or drawing equipments. Total earning incur by an estimation by the system which would increase from 10.30% in 2016 out of total sales done from stationary items (Ways to Increase Survey Response Rates. 2018.).

Total sales value of Donald Duques

(b): Pie-chart

From the above present pie-chart, it has been that printer has been minimum contribution to enhance total sales earning which is incur from 2016-2017. In respect to various part related with cartridges that is having valuable amount of increment of 2% increase in total sales in year 2017.

(c): Correlation Cost Effectiveness Through Drawn Scatter Graphs

Year

Total sales (in €)

2015

165000

2016

182000

2017

178000

Correlation coefficient

0.73

This seems to be essential to make use of effective charts which will provide total value about two variable that are being presented over two axes. This specific graphs would indicate maximum strength among their total sales which would provide more clear results that is visible upward from left to right. This seems to be utmost important tools which would present appropriate evaluation among two various types of variables. The outcomes collected from the variables are 0.73 which is more closed to +1. It means that there is positive relationship among those two variables.

(d): Future Forecasting Sales

In order to analyse total sale Donald Duques would be able to generate from their stationary business are needed to estimate in more appropriate manner. It will be done by estimating current and historical results during the recent time.

Year

Sales

2018

€6500x + €162000
= €6500 (4) + €162000
= €188000

2019

€6500x + €162000
= €6500 (5) + €162000
= €194500

As per the mentioned trend line which is presented on the basis of total sales projection in coming time. The results are indicating that they are able to earn maximum revenue from their available resources in 2019.

TASK 4

(a) Analysis of Benefits and Drawbacks

 

 

 

 

 

 

Pros

Score/10

Cons

Score/10

 

 

 

 

Increasing customer base

6

Extravagant staff turnover

4

Economies of scale

7

Impact on quality

6

Skilled or proficient personnel

8

Intensive capital need

8

Relocation possibilities

5

Loss of functional control

3

 

 

 

 

Total Pros

26

Total Cons

21

                 

Net outcome is analysed as under

Net outcome = Total scores of pros - total scores of Cons

                        = 26 - 21

                        = 4

As per analysis of pros and cons table mentioned in the above section, it is observed that favourable outcomes come across subject to business expansion plan for the business at large level. It is seen that the benefits of the business fall upon analysing the business structure at large  scale and help them to analyse the business structure. The expansion plan shows  positive results in terms of expanding business in Germany and Belgium.

(b) International Standards Required to Follow by Donald Duque

There are some norms and regulations are made in respect of expanding the operations and management with effective and efficient manner. Global standards which are made to monitor the operations and management of organisations subject to expanding the business at next level. There are some legislations are made in respect of expanding business of Donald Duque:

  • ISO 45001 Occupational health and safety: this is the standard which provides legislations and rules in terms of giving benefits to employees and staff members who works in the organisation. As per this standard organisations need to have proper safety tools and equipments in terms of providing health precautions to employees and staff members.
  • ISO 14000 management of family-environmental: this standard is basically associated with providing rules and legislations in terms of maintaining healthy environment. Providing environmental friendly ways to run business operations so that  it does not impact the environment are covered in this legislation.
  • ISO 31000 Management of risk: this standard provides rules and legislation in terms of identifying the risk and preparing strategies. How a better control system is can be implemented with the help of proper adherence of legislations are considered in this context (International Organization for Standardization.).

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

 

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

  • H0(Null Hypothesis): It shows that there is no difference in mean value which is calculated from expected and actual average order value.
  • H1(Alternative Hypothesis): This method shows the mean value with difference attained from expected and actual 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

 

Limit which helps in selection and rejection of hypothesis

 P > 0.05: Null hypothesis recognized or true

P < 0.05: Alternative hypothesis proved or true

            The Z score is determined as 0.23 which is higher than the limit of 0.05. In means no significant difference in project.

TASK 7

(a) Recommendations for Betterment

(b) Descriptive Statistics

Statistics

 

 

 

VAR00002

VAR00003

VAR00004

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

3

4

19.0

19.0

33.3

4

13

61.9

61.9

95.2

CUST_SERV

1

4.8

4.8

100.0

Total

21

100.0

100.0

 

                   

 

Quality P&S

 

 

 

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

3

17

81.0

81.0

81.0

4

3

14.3

14.3

95.2

QUAL_P&S

1

4.8

4.8

100.0

Total

21

100.0

100.0

 

               

 

Sales staff

 

 

 

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

2

4

19.0

19.0

19.0

3

3

14.3

14.3

33.3

4

13

61.9

61.9

95.2

SALES_STAFF

1

4.8

4.8

100.0

Total

21

100.0

100.0

 

               

 

Price value

 

 

 

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

1

3

14.3

14.3

14.3

2

15

71.4

71.4

85.7

3

2

9.5

9.5

95.2

PRICE_VALUE

1

4.8

4.8

100.0

Total

21

100.0

100.0

 

               

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TASK 8

Summary of Report and Conclusion

Donald Duque is small stationary business in Northern France which has main aim is to to expand their business in Germany because stationary market performs well in such nation. This will provides large number of opportunities to earn large number of profits and attain good position in market. There are many global standards which are need to fulfil by organisation for entering into new market.

It has been concluded from the above report that huge role is played by analysis of past data in preparation of effective strategies for attaining success in future business operations. It helps the Donald Duque to choose high turnover stationary market where large number of expansion opportunities are present.

REFERENCES

  • Chambers, J. M., 2018. Graphical methods for data analysis. CRC Press.
  • Ghilani, C. D., 2017. Adjustment computations: spatial data analysis. John Wiley & Sons.
  • Schabenberger, O. and Gotway, C. A., 2017. Statistical methods for spatial data analysis. CRC press.

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