Report for Eco-Fone 2019

The report is prepared for demonstrating the assessment of mobile phone market of United Kingdom for gaining a better understanding of the market. Analysis is confined to analyzing the operations of Eco-Fone for expanding the business of the sales of smart phones.

Running head: REPORT FOR ECO-FONE 2019
Report for Eco-Fone 2019
Name of the Student
Name of the University
Author Note

REPORT FOR ECO-FONE 2019
Table of Contents
1. Introduction:...........................................................................................................................2
2. Analysis of issues for Eco-Fone Smartphone:.......................................................................2
2.1 An overview of the mobile phone market in UK.................................................................2
2.2 Forecasting the usage of UK adult Smartphone...................................................................2
2.3 Smartphone- A potential market for older customers..........................................................2
2.4 Feasibility of expanding the business to Kingston using table of pros and cons:................2
2.5 Cost of a new building.........................................................................................................2
2.6 Testing the possible differences in Net takings in the two shops........................................2
2.7 Customer satisfaction...........................................................................................................2
2.8 Quality procedures...............................................................................................................2
2.9 Important Findings...............................................................................................................2
3. Conclusion..............................................................................................................................2
Conclusion:................................................................................................................................2

REPORT FOR ECO-FONE 2019
1. Introduction:
The report is prepared for demonstrating the assessment of mobile phone market of
United Kingdom for gaining a better understanding of the market. Analysis is confined to
analyzing the operations of Eco-Fone for expanding the business of the sales of smart phones.
The discussion of the assessment is divided into different tasks that help in gaining a better
understanding of the market of smart phone of UK. Eco-Fone is a Smartphone selling
organization that operates in Putney and Richmond with steadily increasing net profit every
year (Rizos et al. 2015). Based on the analysis of product, customer and financial
information, it is recommended whether the expansion of business would be viable or not.
2. Analysis of issues for Eco-Fone Smartphone:
2.1 An overview of the mobile phone market in UK
The sale of smart phones in UK is booming among older customers with 71% of the
older population owning handset which is app capable. Such older groups which have higher
than average wealth tend to buy premium sets with some of the buyers purchasing the smart
phone due to force. It is predicted that the adults will spend more than two hours in using the
smart phones every day. Due to shifting of older people to smart phones, it is expected that
the features of smart phones would suffer. The growth rate of possessing smart phone in this
age group is highest in the country (Balamurali et al. 2016).
Out of the total employed people in UK, smart phone were used by half of the
respondents for at least one work related business activity. It has been found that for work
related applications, the usage of smart phones by employees have been modest for those
focusing on the flow of work. In the coming years, smart phone is likely to be major
contributor in improving the productivity of workforce. Smartphone is considered as ideal

REPORT FOR ECO-FONE 2019
device for workers who do not need to analyze or process information and are required to
receive contextual information for rapid response (bbc.co.uk 2019).
Email Making standard calls Viewing documents Managing my
time/workload
0%
5%
10%
15%
20%
25%
30%
35%
40%
45% 41%
33%
17%
8%
37%
32%
0%
6%
2016
2017
Mixed chart of top four activities:
(Source: created by author)
From the above mixed chart depicting the top four activities, it is observed that people
use smart phone mostly for email with usage declining in year 2017. The second activity is
making standard calls 33% in year 2016 and declining to 32% in year 2017. Viewing
documents is the third activity with 17% in year 2016. The forth top activity involved
managing workload with 8% in year 2016 and declining its usage to 6% in year 2017
(Deloitte.co.uk 2019).

REPORT FOR ECO-FONE 2019
2.2 Forecasting the usage of UK adult Smartphone
2012 2013 2014 2015 2016 2017 2018 2019
68%
70%
72%
74%
76%
78%
80%
82%
84%
Laptop usage forecast
Laptop usage Forecast(Laptop usage)
Lower Confidence Bound(Laptop usage) Upper Confidence Bound(Laptop usage)
Forecast of usage of laptop:
Source: created by author
2012 2013 2014 2015 2016 2017 2018 2019
0%
20%
40%
60%
80%
100%
120%
Smartphone Usage Forecast
Smartphone usage Forecast(Smartphone usage)
Lower Confidence Bound(Smartphone usage) Upper Confidence Bound(Smartphone usage)
Forecast of usage of Smartphone:
Source: created by author

REPORT FOR ECO-FONE 2019
2012 2013 2014 2015 2016 2017 2018 2019
0%
20%
40%
60%
80%
100%
120%
Tablet Usage Forecast
Tablet usage Forecast(Tablet usage)
Lower Confidence Bound(Tablet usage) Upper Confidence Bound(Tablet usage)
Forecast of usage of tablet:
Source: created by author
Under the linear forecasting model, the future value is determined using some
important metrics. Linear model make use of time series for projecting then future values of
target variables by using basic statistics. Therefore, this model predicts the value of one
variable based on another variable. Since, the data presented above is about the usage of
different products of Eco-Fone and there is not any other variable, it would be suitable to use
forecast model using excel. A forecast function in built in excel is used to compute the future
value and in order to find the line that best fits the point, a method of least square is used in
the excel (Balamurali et al. 2016). In case of using an array formula, computation of future
usage of products can be done using Trend function.
2.3 Smartphone- A potential market for older customers
The adult age group seeking convenience use smart phone as it has feature of
encouraging mobile payment. Such payment is encouraged due to growing number of
parking meters. Over the recent years, smart phones have introduced with some of the

REPORT FOR ECO-FONE 2019
changes that made some of the older population benefitting from such change. As the eye
sight of older people deteriorates, smart phone with bigger screens make them easy to view.
Moreover, smart phones also come with loudspeaker. The further members of older
generation are attracted to use smart phone because of added features in the latest handset of
Apple and Samsung. Among the elderly, facial recognition is the added feature is some
mobile phones which are a very popular authentication mechanism and an attractive feature
to use smart phone (Jws.co.uk 2019). This is so because it is suggested by research that older
people like the idea of just picking up the Smartphone and looking at it.
2.4 Feasibility of expanding the business to Kingston using table of pros and cons:
Should we expand the business to Kingston:
Pros Score/10 Cons Score/10
Kingston is considered home for
many companies involved in
sophisticated production and
research.
6 For starting business, funding
and growing of business remains
challenging.
7
This region can be central
activity for mobile business due
to recent investment activities.
9 In Kingston, there is lack of
access to capital outside of
traditional sectors
6
A large segment of economy of
Kingston can benefit from usage
of mobile phone. There also
exist opportunity for leveraging
strong e learning industry
(business.kingstoncanada.com
2019).
8 One of the overarching issues is
the low tolerance for risk.
7

REPORT FOR ECO-FONE 2019
The strength of Kingston lies in
the skilled labor and
telecommunication
infrastructure.
8 Security concern is a particular
challenge faced by mobile
companies in Kingston.
7
Inclusiveness and openness of
corporate culture.
6 Lack of business and marketing
skills.
8
The market of Kingston is
believed to be the second largest
mobile retail market.
8 Platform fragmentation
hindering the development of
services and products of mobile
companies.
8
Heavy investment in research
and development of mobile
industry.
7 Lack of compliance and
comprising on cost savings
resulting from extensive
communication
(business.kingstoncanada.com
2019).
7
Total pros 52 Total cons 50
Average pros 5.2 Average cons 5.0
2.5 Cost of a new building
Requirement a)
The asking price of new building to be purchased by Eco-Fone is £ 400000. However,
the negotiable price stood at £ 350000.
Rate of interest that is applicable to the outstanding loan= 7% per annum
Mortgage period= 15 years

REPORT FOR ECO-FONE 2019
Mortgage Amount £3,50,000.00
Mortgage Rate 7%
Period (in years) 15
Nos. of Payments p.a. 12
Total Nos. of
Payments
180
Monthly Repayment £3,145.90
Here, the monthly repayment is calculated using the built in formula in Excel which
has shown in the Appendix. The total monthly cost of repaying the mortgage with the
applicable rate of interest is computed at £ 3145.90.
Requirement b)
The appropriate graphic containing the eight logos of well known commercial
mortgage lenders in the UK is presented below:
Some of the well known commercial mortgage lenders operating in UK are Natwest,
Royal bank of Scotland, HSBC, Barclays, Cyldesdale bank and Cynergy bank. The graphics
of eight logos of well known commercial lenders are presented below:

REPORT FOR ECO-FONE 2019

REPORT FOR ECO-FONE 2019
2.6 Testing the possible differences in Net takings in the two shops
Total number of daily takings from both the shops is equivalent to 40. Therefore, the
sample size from both the shops is 40.
Net takings from first shop
n1= 40
Mean value= £ 100

REPORT FOR ECO-FONE 2019
Standard deviation= £ 20
Net takings from second shop
n2=40
Mean value= £ 90
Standard deviation= £ 40
It can be observed from the above figures that mean value of net daily takings from
shop one is higher than the mean value of net daily takings from shop two. The total net
takings from both the shop comes to £ 4000 and £ 3600. Therefore, it is inferred that the net
takings from shop one is higher than the net takings from shop two. Hence, the net taking of
two shops is not same. Furthermore, the standard deviation of the net takings from shop one
is less than the shop two. This is indicative of the fact that the variability of net takings from
shop one is lower than variability of net takings from shop two. From the analysis of figures,
it can be concluded than the net taking from shop one is less variable as against net takings
from shop two. Hence, the net taking from retail shop of discounted mobile phone is higher
with lower variability as against the net takings retail shop of accessories.
2.7 Customer satisfaction
Summary of the findings generated from report:
Referring to question 1 asked from customers, the average value is computed at 3
which imply that the maximum customers purchase the product from Eco-Fone between six
and three months. For question 2, the average number of customers has used the products and
services for a time period of one and three years. Now, looking at the question 3, that requires
customer to rate the company for its different attributes, it is observed that the average
customers have rated the company good for its customer services and support. For the

REPORT FOR ECO-FONE 2019
quality of product and services, it has been found that the other attributes such as product and
service quality, price of goods and sales staff are also rated good by the customers (Cecere et
al. 2015).
For question 4, the customers are neutral on the overall satisfaction that they receive
from using products and services of Eco-Fone. With regard to question 5, customers are
neutral when it comes to continue doing business with the company. For question 6, it has
been found that customers are unlikely to recommend the products and services to others.
Therefore, from the analysis of above facts, it can be inferred that customers that it is less
likely that the services and products of customers would be recommended by customer. In
light of the outcome of the questionnaires, it is recommendation by organization to make
improvement in services and products. The pricing strategy should be attractive to customers
so that it increases the sales rate (Poushter 2016). In addition to this, Eco-Fone should add
some extra features in their smart phones by increasing the target market and increasing the
sales of products by capturing the share of market.
2.8 Quality procedures
The Poisson distribution helps in describing rare events distribution in large
population. Such distribution is regarded as special case of binomial distribution when large
numbers are studied with a constant or rare occurrence of success. The distribution helps in
identifying the defect of occurrence in a sample having constant size. Since, the mean and
variation of the Poisson distribution have equal numerical value, monitoring the value of
variability and its parameter using separate charts is not necessary (Kwan et al. 2017). In the
given case, it is observed that in a population are 10000 of invoices; the error per month is
average of two which is rare error. In addition to this, the probability that more than three
invoices will be returned per month is less than fifteen percent. Since the probability of

REPORT FOR ECO-FONE 2019
occurrence of error is considerably less in the large population, it is appropriate to use
Poisson distribution. Since the number of occurrence of error in the large sample of invoices
is low, it can be concluded that Eco-Fone has met the quality of invoices of the products
manufactured.
3. Important Findings
From the analysis of the above case of Eco-Fone, it can be inferred that despite steady
increase in net profits, the company does not have scope of expanding its profit in future.
This is because customers are less likely to recommend the company for its services and
products which would ultimately result in lowering the level of profits generated. However,
the segmented market of older customers is more inclined towards buying smart phone. In
addition to this, it has been found that the quality assurance helps in meeting the quality of
products. Therefore, it is recommended to Eco-Fone to make improvement in business by
devising its products with some added features that would help in increasing sales.

REPORT FOR ECO-FONE 2019
References and Bibliography list:
Balamurali, S., Jeyadurga, P. and Usha, M., 2016. Designing of Bayesian multiple deferred
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Business.kingstoncanada.com. (2019). Retrieved 20 March 2019, from
http://business.kingstoncanada.com/en/about-us/resources/Reports_and_Studies/theStory.pdf
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Jws.co.uk. (2019). Expansion – is your business ready? Kingston upon Thames : JWS .
[online] Available at:
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Smith, A.L. and Chaparro, B.S., 2015. Smartphone text input method performance, usability,
and preference with younger and older adults. Human factors, 57(6), pp.1015-1028.

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Appendix: