Eco-Fone Smartphones Assignment

ECO-FONE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Overview of the mobile market in the UK...................................................................................1
TASK 2............................................................................................................................................3
Data on the usage of smartphones by Adults during 2012-2017.................................................3
TASK 3............................................................................................................................................5
Analysing of the popularity of smartphones between older customers.......................................5
TASK 4 ...........................................................................................................................................6
Recommendation on the expansion of the Eco-Fone to Kingston...............................................6
Recommendation on the expansion of the Eco-Fone to Kingston...............................................6
TASK 5............................................................................................................................................6
A. Calculation of Monthly costs of repayment mortgage ...........................................................6
B. Logo of 8 mortgage lenders....................................................................................................7
TASK 6............................................................................................................................................7
Comparison of net taking of both shops of Eco-Fone.................................................................7
TASK 7 ...........................................................................................................................................8
Customer questionnaires..............................................................................................................8
TASK 8 ...........................................................................................................................................8
Appropriation of Poisson distribution and advise to them...........................................................8
TASK 10..........................................................................................................................................9
CONCLUSION................................................................................................................................9
TASK 9 ...........................................................................................................................................9
APPENDIX....................................................................................................................................10

INTRODUCTION
Eco-Fone is working under the consumer electronics industry it is the Private limited company is
which was founded on 18th August 2009 in United Kingdom. Eco – fone is a firm which deals
with selling smartphones and other electronic accessories. Key employee is Mr. Michael David
Bruford who is director and company secretary for the company (KUMAR, 2019).
The Present report is based on brief overview about the UK mobile market. The report
will cover the various forecasting methods such as line chart. Furthermore, assignment will
analyse different features which make smartphones so popular. Moreover, report will explain
“Pros and Cons method” for identify that company should expand the business or not
Furthermore, It will represent the logo of 8 mortgage lenders of UK calculate the repayment
amount of mortgage loan and. Study will highlight the comparison the net taking between both
shops of firm. Lastly, report will measure the average values for the entity customers’
questionnaire.
TASK 1
Overview of the mobile market in the UK
Overview
The success of Smart phone is increase day by day and the demand of smart phone is also
increased. The sales of the smart phone is 1.5
billion annual sales, or over four million per day, Therefore, in recent times smart phone is
becomes more popular the majority of people are purchase the phones. In year 2017, the
penetration rate of smartphone was 85% which is lead to be enhanced by 90% in year 2020.
Therefore, the industry of smart phone is increase as per the demand and needs of consumers so,
the popularity is increasing with passing years. Mobile industry is considered to be international
market where in this industry the level of competition is more. By the analysing it can be
described That Every day, 91 per cent of the 41 million 16 to75 year old peoples have a
smartphone in the UK. Therefore, phone is the most usable device in the UK market and the
mobile industry expand their business in the UK market in order to increase the sales and
profitability.
There are different types of consumer who use the smartphone on daily basis. Following
table show the % of population and different types of age groups and their style of usages on the
basis of teenagers, parents and grand parents.
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Age Groups (% of UK Population) Usage Styles
16 to 18 (Teenagers) (30%) Use smartphones in a few minutes of waking
up.
18 year (Teenagers) (34%) Use their mobiles within 10 minutes of waking
up.
18 year (50%) Use their smartphones within 5 minutes prior
of sleep
18 to 40 years (17%) (Teenagers and parents) Use their mobiles at least in every hour in a
day.
16 to 19 years (12%) (Teenagers) Use their smartphones at least 100 or more
than 100 times in a day.
16 to 75 years (34%) (Teenagers, parents and
grand parents.)
This all age group of people use their mobiles
always with another activities such as eating,
watching, talking or schooling, with friends
etc.
16 to 75 years (12 %) Use their smartphones during watching TV and
mid night.
18 to 75 years (53%) Use their smartphones during crossing the
road.
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Interpretation — from the above table, it can interpret that teenager are describes as (16 to 18)
age group, parents are described as ( 40 to 50) age grumps and grand parents are described as 65
to 75 age group. Therefore, by analysing the percentage of population and usage style it can
cycles describe that the People of UK is more attracted toward the phone services.
Bar chart and their interpretation
From the above chart, it can describe that smart phone is provided the easy work life balance to
the customer. Thus, there are different work related activities which is done by the aid of
smartphones. These activities are described below -
Activities % in Year 2016 % in year 2017
Emails 41.00% 37.00%
Standards Calls 33.00% 32.00%
Calender Management 3.00% 0%
Managing my time 8.00% 6.00%
TASK 2
Data on the usage of smartphones by Adults during 2012-2017
Year Smartphones Penetration Rates
2012 52.00%
3
1 2 3 4
0
5
10
15
20
25
30
35
40
45
2016
2017
Series3

2013 62.00%
2014 70.00%
2015 76.00%
2016 81.00%
2017 85.00%
2018 90.00%
2019 95.00%
There are different types of forecasting model such as Time-Series, Linear approach
For the above linear chart, it describes the straight line which can be analysed and
forecasting the relationship between independent and dependent variable. Thus, this method is
not much suitable for forecasting because its only describe the straight line, that means the
researcher are not clearly identify the relationship between variables (Cox, 2019). Thus, there are
some reason why this method is not suitable for the forecasting and analysing such as -
linear method is only describes straight relationship between variables. This is unable to
prediction for seasonality or other cycles, as well as non-linearity. This method is always devised
that there is a straight relationship between variables, So it clearly defines it is the wrong in case
of seasonal fluctuation relationships between variables (dependent and independent).
4
2013 2014 2015 2016 2017 2018 2019
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1

The another disadvantage while using the linear forecasting method, in this method it
defines that it includes independent data but in above chart, the data is dependent with each
other, and they are not independent, Thus, forecasting the smart phone demand, this method is
not suitable. Therefore, it can lead to non-suitability of linear forecasting method.
Thus, Time series is another method which is suitable for forecast the smart phones
demand. For the above linear chart, the forecasting and analysing is not clear so, time series
forecasting helps to identify the series of data which is in the form of time order. So this method
analysis the data on the basis of historical performance of the variable so, it can help to
forecasting about its future.
TASK 3
Analysing of the popularity of smartphones between older customers
The popularity of smartphones among the older customer is increased day by day because
of new trends and to make the easy work life. The modern smart phone have different types of
feature which attracts the customer such as payment and booking facility. Thus, this features
which are available in the modern smartphones which lead to enhance the sales and demand
among the older customers whose age varies between 55 and 75 years in the year 2016-17. These
features are as follows -
Booking cabs
Smart phone provide the various applications in their system customer can download and
use which can be installed in mobile and through these applications, users or customers can order
their cab or auto. This will help them in difficult situation.
Facial recognition
This is also one of the best system which operate under the mobile it helps to provide the
better facility to older customer that they easily recognize the person by facial identification.
Payment through Mobiles
This is one of the best features which attracts the older customer mostly. For example,
mostly older customers afraid of keeping a cash in purse. Thus, they encourage payment via
mobile phone they are using smartphones and different types of payment app. These apps
provide the benefits such as pay all the bills through online, recharges facilities, booking tickets
and salaries through online apps available in the app store. So this all apps provide the best
5

services to the customer so, they download all the apps in their mobiles and use it anytime for the
purpose of making payment.
TASK 4
Recommendation on the expansion of the Eco-Fone to Kingston
Should we expand our business to Kingston?
Pros Score/
10
Cons Score/10
Increase in market share
Recommendation on the
9 Shortage of cash 7
Increase in Customer Base 9 Increase in costs of training 7
Increase in demand 8 Enhance capital requirements 6
Generate high revenue 8 Compromised in quality 8
Increase resources and stock 8 Increase in Costs of production 7
Total Pros 42 Total Cons 35
Average Pros 8.4 Average Cons 7
From the above table it can be interpreted ‘pros and cons method’, that describe the
advantages of company that means firm should expand their business in Kingston.
Recommendation
Eco-Fone firm should expand their business in Kingston because there are different
advantages such as, if firm expand their business they enhance profits, Increase in their market
share which will help for to grow more in international market (Mort, 2019). Customer base and
demand of product will become increase which is helpful for the company probability.
TASK 5
A. Calculation of Monthly costs of repayment mortgage
Asking price 400000
Negotiable price 350000
15 years
Repayment mortgage 350000
Rate of mortgage 7%
Debt payment [((1+0.07)^15)-1]/[0.07*(1+0.07)^15]
Total amount of loan / Discounting factor 1.76/0.19
9.11
350000/9.11
Total amount of loan 38419.32
Repayment amount on monthly basis 38419.32/12
3201.61
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From the above calculation it can be interpreted that the repayment amount for one year is
£38419.32/12 and on the basis of monthly, repayment amount for the enterprise is £3201.61
B. Logo of 8 mortgage lenders
TASK 6
Comparison of net taking of both shops of Eco-Fone
Given
Particulars Figure
Sample 40
First shop (Mean) Average 100
Standard deviation 20
Second shop
Mean 90
Standard deviation 40
Assessment of Z score value
Table 1
Mean value of one shop 100
Mean value of second shop 90
Standard deviation (one shop) 20
Z score assessment (100 – 90) / 20
0.5
Table 2
Mean value of one shop 100
Mean value of second shop 90
Standard deviation (two shop) 40
Z score assessment (100 – 90) / 40
0.25
Conclusion
From the above table is can be described that Z score is define as value of alpha, where p
value is become smaller than 0.05 then null hypothesis is rejected and vice versa. Therefore, In
table 1 and 2 both it described that this both value is higher than 0.05 so null hypothesis is
accepted. Therefore, to analysing the both table it can be described that there is no significant
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difference in net taking of both shops.
TASK 7
Customer questionnaires
Value Ques 1 Ques 2 Ques 3 Ques 4 Ques 5 Ques 6
Mean 3.4 3.6 2.4 3.1 2.9 2.9
Median 3 3.5 2 3 2.5 2.5
Mode 3 5 2 2 2 2
SD 1.577 1.64 1.07 1.37 1.52 1.52
Range 5 5 3 4 4 4
Minimu
m
1 1 1 1 1 1
Maximu
m
5 5 3 4 4 4
TASK 8
Appropriation of Poisson distribution and advise to them
Poisson random variable 2
Mean rate of success 15
Poisson probability P(X=2) 0.000
Cumulative probability P(X<2) 0.000
Cumulative probability P(X>2) 1
Cumulative probability P(X>=2) 1
From the above case, it can be predicted that appropriate Poisson Distribution increases
when the event for error return can be occurred three time in a month. Henceforth. In this case
event was occurred so many times in a specific period (Tourism, 2019). Here the occurrence
doesn't change in any manner because it is constant. So, this method is appropriate for the given
case.
Advise
It is advised that company should focus on their minor error returning probability. Hence, firm
should maintain their current financial standards for enhance the future growth. Therefore, To
minimizing the errors and problems it can be reduced probability of loss and it positively impacts
on the performance of the firm that it can lead to enhance the profitability.
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TASK 10
CONCLUSION
From the above project report it can summarize that the demand of the smart phone is
increased due to used by different generation and age groups of the people. The report has
described the forecasting methods which helps to predict the demand of smart phones.
Furthermore, report has explained the porn and cons method to expand the business in different
market which can help to enhance the probability of the firm. Lastly, it has described various
types of graphs should be bases upon the data collected by the various sources.
TASK 9
BOOKS AND JOURNALS
Tourism, S.B. 2019. Canada Small Business Financing Program: Cost-Benefit Analysis–May
2019-SME research and statistics. Innovation.
Mort, D. 2019.UK statistics: a guide for business users. Routledge.
KUMAR, A. 2019. Applications of Statistics Tools in Business.
Johnson, R.A. and Bhattacharyya, G.K.2019.Statistics: principles and methods. John Wiley &
Sons.
Cox, R.W. 2019. Business and the state in international relations. Routledge.
Larson, R. and Farber, B. 2019.Elementary statistics. Pearson.
Online
Smartphone sales boom with over-55s. 2017. [ONLINE]. Available through:
<https://www.bbc.co.uk/news/technology-41319684>
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APPENDIX
Year
Discounting factor
(1) 1*0.07
1 1.07 0.07
2 1.14 0.08
3 1.23 0.09
4 1.31 0.09
5 1.40 0.10
6 1.50 0.11
7 1.61 0.11
8 1.72 0.12
9 1.84 0.13
10 1.97 0.14
11 2.10 0.15
12 2.25 0.16
13 2.41 0.17
14 2.58 0.18
15 2.76 0.19
Total 26.89 1.88
Solving: ({[(1 + .07)^ 15] – 1} 26.89-1=25.89
Solving: ({[(1 + .07)^ 15] – 1} / [.07 (1 +.07)^ 15]) 25.89/1.88=13.75
25454.55
25.89 2121.21
13.75
Amount 25454.55
Months in a year 12
Repayment amount 25454/12
2121.21
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