Summative Assessment - Eco-Fone Smartphone
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Added on 2020-10-22
Summative Assessment - Eco-Fone Smartphone
Added on 2020-10-22
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ECO-FONESUMMATIVEASSESTMENT
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31.1 Overview of mobile phone market in UK ............................................................................3TASK 2............................................................................................................................................41.2 Forecasting the UK adult smartphone use ...........................................................................4TASK 3............................................................................................................................................41.3 Smartphones – A potential market for older customers .......................................................4TASK 4............................................................................................................................................51.4 A ‘pros and cons method’ table for expanding to Kingston ...............................................5TASK 5 ...........................................................................................................................................61.5 Cost of a new building and well-known commercial mortgage lenders in the UK..............6TASK 6............................................................................................................................................81.6 Testing the Possible Difference in Net Takings in the Two Shops.......................................8TASK 7............................................................................................................................................91.7 Customer Satisfaction...........................................................................................................9TASK 8..........................................................................................................................................111.8 Appropriateness of Poisson distribution in context to Eco-Fone........................................11CONCLUSION .............................................................................................................................11REFRENCES.................................................................................................................................12APPENDICES...............................................................................................................................13
INTRODUCTIONSmartphone is a multi purpose computing device whose demand has been keep onincreasing because people are adopting latest multimedia functionality that includes music,video, gaming and so on (Chang, Shen and Liu, 2016). For the better understanding of this reportEco-Fone smartphone has been taken which emphasize on selling smartphone as well asaccessories. It build its shops in 2014 and earn huge net profit each successive year. Respectivecompany has two retail shops Putney and Richmond and is thinking to expanding its business inKingston to enhance their customer base. This report provide a brief discussion on the overviewof mobile phone market in UK, adult smartphone user from 2012-2017. Moreover, pros and conswill be discussed to expand business in Kingston. Additionally, this report identifies expansionopportunities, challenges as well as quality assurance procedures. Lastly, detailed discussionregarding product, customer satisfaction and sources of finance will be made in context to Eco-Fone.TASK 11.1 Overview of mobile phone market in UK As per the survey conducted by Deloitte in United Kingdom market it has beendetermined that smartphone are most commonly used for email that is 44%, and voice call thatcontain 34% user. Additionally, 40% of the worker uses one of the most popular applicationsthat is whatsapp once in a day. Among 33.5 million UK's workforce around 32 million peopleare using smartphone for business related work activity. Therefore, the user of smartphone arekeep on increasing which directly enhances the sales of UK companies approx 1.5 billion annualbasis. Furthermore, on the basis of research it has been found that 58% of adult population areusing smartphone and this percentage is expected to increase by 90% till 2020. This hike insmartphone users among adult population clearly depict that majority of population are makingthe use of smartphone in their daily regime within workplace. Basically, smartphones help itsuser to engage in various activities like E-mail, voice calling, calendar management, applicationrelated to gaming and entertainment and so on (Global mobile consumer survey, 2017).
TASK 21.2 Forecasting the UK adult smartphone use According to Deloitte report on UK adult Smartphone user it has been found that on 2017more than 85% of adult were the frequent user of smartphone in caparison to laptop and tablet.Moreover, it is expected that this percentage will keep on increasing in case of adult whereas interm of younger generation this percentage is already at peak from several years. It has beenanalysed that 77% of UK adult are intensively making the use of smartphone in comparison toother electronic devices like laptop and tablet. After smartphone 78% of adult user uses laptopand 68% tablet by 2017. Thus, applications like weather forecast and news feeds, bookingappointments, hospitality apps etc. are preferred by smartphone users as they get hugeinformation by a single click. TASK 31.3 Smartphones – A potential market for older customers In relation to Deloitte's report the sales of smartphone are booming or increasingrepetitively among older consumer. From the last five years older adult people are keen to adoptnew innovation in smartphone about 71% of adult age between 55-75 uses app capable handset(Smartphone sales boom with over-55s, 2019). But this percentage is less in comparisons toyounger generation who are early adopters or innovators to adopt new technology like, 20%mobile user check their cell within 15 minutes. Additionally, wealthy adult aged group between55-75 years prefer buying premium quality handset whereas adult who are not frequent user ofsmartphone or have interest but low knowledge about the usage takes the second hand or olderversion of smartphone from their family members such as from their children. Thus, smartphoneprovide various benefit to older age group like booking cabs, making online payment viasmartphone. Furthermore, smartphone companies keep in mind their new target market andchange their product according to meet the need of their customers. For instance, bigger screenof smartphone does not leads to strain in the eye sight and loud speaker feature helps theirrespective age group. Therefore, it has been analysed from research that older age group prefersmartphone over keypad mobile phone as in smartphone they need not to wear their glasses andis better source to engage customer in comparisons to keypad system.
TASK 41.4 A ‘pros and cons method’ table for expanding to Kingston Should business be expanded in KingstonProsScore/10Cons Score/10Ecofone Eco fone is alreadyearning good revenuefrom its existing market.If it diversify itsbusiness withinKingston market,respective company cangenerate huge customersbase.8Eco- Fone require hugefund to make the hugecapital investment innew market in order towiden its reach inKingston market.7Expansion of existingproduct that issmartphone in newmarket of Kingstonincreases the brandawareness and visibilityof product 8Respective company hasto consider variousexternal marketcondition such asgovernment regulation,political stability, taxpolicy, inflation rate,purchasing power ofcustomer and so onwhile expanding itsbusiness operations(Schmitz Weiss, 2013).6Due to expansion ofproduct in new marketplace respectivecompany gives theopportunity to the localresidence of Kingstonby hiring them to run theoperations of firm. Onother side, company getsthe source of additionalrevenue.7Selected company mayface difficulty inunderstanding theculture as well aslanguage withinKingston that canhamper the growth ofbusiness operations6If selected companywiden its market it canattract the source offoreign investment.6Expansion in newmarket leads to increasein number ofcompetitors (Koch and7
Kerschbaum, 2014).This directly orindirectly affect thestrategies as well asprofitability of company Total Pros29/40Total Cons26/40Average Pros0.72Average Cons0.65Therefore, the average of total pros that is 0.72 is more than total cons 0.65 which depictsthat Eco-Fone should expand its market reach to Kingston. TASK 5 1.5 Cost of a new building and well-known commercial mortgage lenders in the UKEco-Fone is making decision in regard to expansion of its business operations inKingston. To make it possible business needs huge capital investment for which they will takethe help from bank. To pay back the principle amount company has to pay monthly instalmentamount. Thus, brief calculation regarding loan repayment is defined below whereas Appendices1 carries the detail calculation.Loan Amount£350000Number of EMIs180Annual Interest Rate0.07Monthly Interest Rate0.00583Monthly EMI Payment£3145.90Total Loan Amount Payable£566261.81Total Interest Payable£216261.81Loan is given by bank on the basis mortgage and creditworthiness of loan taker. It isbasically taken by bank to fulfil the requirement of an individual or company such as to buy land,plant, home, machinery and so on. Though bank take proper documentation but don't hesitatemuch to pay for secured loan as even if loan taker fails to payback amount then bank gain rightover the mortgage. Therefore, components associated with mortgage loan are principal amount,tax, interest to be paid etc. companies of United Kingdom that offering mortgage loans aredefined below (Haberman and et.al., 2015):
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