Eco-Fone Report

This report examines the UK mobile phone market and Eco-Fone's potential expansion to Kingston. It analyzes smartphone usage trends, forecasts future demand, and assesses the feasibility of cross-border expansion. The report also includes a cost analysis of a new building, customer satisfaction surveys, and quality assurance procedures.

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REPORT FOR ECO-FONE
Date: March 18, 2019

Table of Contents
INTRODUCTION........................................................................................................................................3
1.1 An Overview of the Mobile phone market in the UK.....................................................................4
1.2 Forecasting the UK Adult Smartphone use ...................................................................................5
1.3 Smartphones - A potential market for older customers................................................................6
1.4 Feasibility of Expanding business to Kingston using Pros and Cons table......................................7
1.5 Costs of a New Building.................................................................................................................8
1.6 Testing the Possible Difference in Net Takings in the Two Shops................................................11
1.7 Customer Satisfaction..................................................................................................................12
1.8 Quality Procedures......................................................................................................................14
1.9 Conclusions & Important Findings...............................................................................................15
REFERENCES...........................................................................................................................................16
APPENDICES............................................................................................................................................17

INTRODUCTION
In the current market, technology will change very rapidly and it will affect the
smartphone market and create pressure to adopt these changes (Anderson, 2012). This report is
about the Eco–Fone company which have smartphones business. This company deals in
smartphones and accessories items and having two shops first one in the Putney and another
one in Richmond. Purpose of this report is to identify UK's mobile phone market and the
expansion across the border. This report include the analysis of different challenges,
opportunities, quality issues occur in front of Eco-Fone company. It also include the deep
discussion about customer satisfaction, product quality, source or finance and market demand
for the smartphone.

1.1 An Overview of the Mobile phone market in the UK
Consumer survey based on Deloitte report in the year 2017. with the help of this report
Eco-Fone company identity the usage of mobile phones in the UK market. This survey clearly
show the usage of smartphones which is increased very fast. Annual sale of mobile phones is
increase by 1.5 million in the year 2016 to 2017. Highest users of smartphones is adult
population and it is approx 58% and in the future it will be increase up to 90% in the year
2020. mobile phone applications help the consumers in their personal or professional life to
complete their day to day activities with the full of efficiency (Asgharzadeh, Bakouch and
Esmaeili, 2013). Most of the consumers use the mobile phones to make easy their daily life
easy. Companies also develop various innovative features which help the consumers to support
their working life and it also helps in scheduling their work. Approx 32 million users use the
mobile phone to complete their office work so it is known that the future demand of
smartphone will be increased. Mobile phone include the various features which make the work
easy for the consumers. Such as provide call facilities, email, calender, documents can save in
their mobile phone, excess internet, editing options, insert etc. it also include the entertainment
applications such as Video games, can download various application such as movie player,
camera, notes etc. Currently, this is the growing industry in the market because consumers will
buy because of the entertainment applications.

1.2 Forecasting the UK Adult Smartphone use
On the basis of Deloitte report 2017, adult smartphones use declared that approx 17%
of the population use mobile phones 100 times in as day and it include the age group of 16 to
75 years. Almost 34% people declared as addicted of smartphones between the age of 16 to 75
and 12% adult use the mobile phone 200 times in a day. Addicted people use the smartphone
everywhere at the time of studies, eating food or even with families meeting. According to this
survey 49% of demographic area cover by the adult between the age group of 16 to 24.
From the above chart it is clear that number of adult smartphone use will increase in the
year 2018 and 2019. linear chart will not able to represent the accurate information and the
comparison. Because changes in the use of mobile phone not clearly seen in the chart after
certain points. For example bar or pie chart will be the best forecasting model to analyse the
data.
1 2 3 4 5 6
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Year
Usage of Mobile
Illustration 1: Use of smartphones (2012 - 2017)

1.3 Smartphones - A potential market for older customers
Usage of smartphones will increase according to age of consumers and the older generation
will adopt very fast. According to this survey, it indicated that more then 71% people have
their own handset and they are belong to the age group of 55 to 75 years. 20% old consumers
said, they will check their mobile phones 15 times in comparison to national average people
that is 56%.
According to Deloitte, age group of 55 to 75 years people who have higher wealth can
purchase premium smartphones for the use. Most of the phone applications help the consumers
to pay their bill online or by use of mobile phones. These apps offer the various facilities which
make customers life easy in the daily routine (Battaglini and et.al., 2012). Older generation
take advantage of smartphone because of their unique features. There are some the features
which make smartphones more popular among the old consumers such as:
1. Smartphones have bigger screen that is good for the older generation people because
they have low eye sites and it was beneficial for the old population.
2. Mobile applications are very easy to use and there is no complexity in the software and
provide higher version of app for the efficiency (Curado, Gazeau and Rodrigues, 2012).
3. It also provide the face recognize screen lock facilities which provide security from
other and make their data safe in their mobile phones.
4. According to this research, old people like these types of features which safe their time
and perform very fast. Such as screen lock options, font size and style change also like
by the old people.

1.4 Feasibility of Expanding business to Kingston using Pros and Cons table
Expansion of their products across the boarder is very crucial decision because it
required intense research or huge capital investment. Eco-Fone company current operate two
shops in the Borough of Richmond. Before that company not expand their business anywhere
but now they wanted to expand in Kingston. On the basis of collected anecdotal evidence it has
been concluded that, Eco-Fone company is growing company and it will observed according to
it's product life cycle stages. So cross border expansion is the suitable opportunity for the
company which help the organisation to increase their operational activities, productivities as
well as profitability (Faisal Ahammad and Glaister, 2018).
Eco-Fone company chose the potential area to expand their business in Kingston which
is in Canada. With the help of some pros & cons company can identify the success of
company's new expansion and for this company follow the pros & cons method to analyse
which is discussed below:
Should we expand our business to Kingston?
Pros Score/10 Cons Score/
10Potential Revenue 9 Cultural Barriers 5
Increase Brand Awareness 8 Currency Risk 6
Develop Customers Base 8 Shortage of Cash 7
Attractive Foreign Investors 5 Loss of Control 5
Learn New Culture 9
Required Skilled Work force 7
Dicersify Market 6
Total Pros 52 Total Cons 23
Average Pros 7.43 Average Cons 5.75
As per the above table, there are enough opportunity for the Kingston in term of
revenue increase, brand value, customer base, learn new culture etc. It is highly innovative
technology market so Eco-Fone can sustain in this market (Goldie, 2017). To expand across the
boarder will provide various opportunities but they also have to face some challenges such as
currency risk, cultural barriers, shortage of cash etc. On the basis of pros & cons average pros
is higher then average average cons. Eco-Fone should expand their operational business in the
Kingston for the huge market share as well as revenue.

1.5 Costs of a New Building
(a) Calculate Equal Monthly Cost.
Company decided to expand their business and it required highly suitable premises.
Since Eco-Fone paying EMI it will reduce the burden and provide flexibility or affordability.
So they can sustain in the market for lung time until they settled financially (Hazra, 2014).
Overall calculations are represented below in the table and further detail calculation available
in the appendix of this report:
Loan Value £350000
Total no of EMI 180
Annual Interest Rate 0.07
Monthly Interest Rate 0.00583
Monthly EMI Payment £3145.90
Total Loan Amount Payable £566261.81
Total Interest Payable £216261.81
Eco-Fone decide to purchase land rather than taking lease so cost of property is
£4,00,000. Company decided to take mortgagee loan and the principle amount is £3,50,000 for
the next 15 years at the rate of 7% per annum. So company decided to pay on Monthly Equal
Installation for the next 180 months.
(b) Well known commercial Mortgage lenders.
 Principality

 NatWest
 Royal bank of Scotland
 Think business loan
 Alliance & Leicester PLC
 Bank of Ireland
 HSBC – UK Mortgage Lenders

 Together Commercial Mortgages

1.6 Testing the Possible Difference in Net Takings in the Two Shops
Eco-Fone company have two retail stores one in Putney and another one in Richmond.
Daily net taking of the company determined and identify that which shop provide the higher
profit in comparison to other (Understanding acceptance decisions and identity associated with
Luen and Stark, 2012). These shops provide various mobile phone range & accessories and it
will be running for the months. So the following informations are provided in the below table:
Particulars Putney Richmond
Mean 100 90
Standard Deviation 20 40
Sample data set 40 40
Total Net Daily
Takings
= 4000 (40*100) = 3600 (40*90)
From the above table, sample size of the Putney shop is 40 net taking and the mean is
100 or standard deviation is 20. On the other hand sample size of the Richmond is same but the
mean is 90 and standard deviation is 40. On the basis of above table total sale or daily net
taking of Putney is higher than Richmond. Even sample size of both shops are same that is 40
and in the Richmond store have more variability rather than Putney. Because of the reason both
have different standard deviation or total sale. If Richmond shop wanted to increase their sale
then have to decrease their variability this will increase the total sale or net taking or the
business.
So it has been concluded that total net taking of the Putney located shop is high then
Richmond located store since they have same sample size. Difference will create because of
the Standard deviation or mean of the stores.

1.7 Customer Satisfaction

As per the above questionnaire it is confirmed that Eco-Fone company highly satisfied
and loyal customer base (Mishra and Mahesh Kumar, questionaire survey”Ocran, 2017). In the
future, company provide the long term commitments to their customer to use smartphones at
least 3 to 5 years. Eco-Fone company provide the 4 rating for their product quality which is
satisfactory for the business. It will show the excellence quality of product but they required to
improve their customer service through improvement in their staff members. Consumers also
recommend Eco-Fone products to their friends or family, it is a kind of promotion without any
monetary investment. So basically, if company provide quality product to their consumers
then they can satisfy customer's need or demand and achieve their business goals & objectives.

1.8 Quality Procedures
Eco-Fone company follow the various quality procedures where department of accounts
sent 10000 invoices in a month average return will create errors. Quality assurance procedures
of Eco-Fone company require probability more than three invoices will be returned in a month
and it should be less than fifteen percent (Global mobile consumer survey, 2017). Poission
distribution is discrete probability distribution is the number of events occur at the particular
time period. It will use at the time of describing huge population. It is also called statistical
distribution and it is the most suitable method for the Eco-Fone company. Because it required
the calculation of probability within time and respect of occurrences or non – occurrences.
Company have knowledge so it is beneficial for the company and for the future prediction it
will make easy by statistical techniques (Smartphone sales boom, 2019). To improve their and
forecast about their quality issues Eco-Fone use the Poission distribution process for the quality
assurance.

1.9 Conclusions & Important Findings
It has been concluded that, smartphones provide various benefits to their consumers and
mostly for old people. Because of it's unique features and the demand among the market.
According to UK report, mobile phone companies have rapid growth in the market among the
adults because it will provide huge benefits through their different applications or software.
Deloitte report 2017 clearly represent that number of smartphone user is highly from the age
group of 24 to 75 years. Along with this, Eco-Fone expansion across the border will provide
various opportunity as well as challenges but on the basis of pros & cons method expansion is
profitable. In addition, company prepare a questionnaires so they can analyse customer
satisfaction and the area of improvement in their organisation. It will help the Eco-Fone
company to take effective decision in respect of achieving business goals & objective which
will increase the profitability or productivity of the entity. Eco-Fone expand their operational
business in Kingston so they have to build strategies which increase the customer loyalty,
satisfaction or provide new consumer base.

REFERENCES
Books & Journals
Anderson, W. P., 2012. Public policy in a cross-border economic region. International Journal
of Public Sector Management. 25(6/7). pp.492-499.
Asgharzadeh, A., Bakouch, H. S. and Esmaeili, L., 2013. Pareto Poisson–Lindley distribution
with applications. Journal of Applied Statistics. 40(8). pp.1717-1734.
Battaglini, A., and et.al., 2012. Perception of barriers for expansion of electricity grids in the
European Union. Energy Policy. 47. pp.254-259.
Curado, E. M. F., Gazeau, J. P. and Rodrigues, L. M., 2012. On a generalization of the
binomial distribution and its Poisson-like limit. Journal of Statistical Physics. 146(2).
pp.264-280.
Faisal Ahammad, M. and Glaister, K. W., 2018. Recent trends in UK cross-border mergers and
acquisitions. Management Research News. 31(2). pp.86-98.
Goldie, J., 2017. Letter and Questionaire from James Goldie to HB Everand, April 17, 1940.
Hazra, U. T., 2014. Understanding acceptance decisions and identity associated with
smartphones: A qualitative enquiry(Doctoral dissertation, University of Cape Town).
Luen, B. and Stark, P. B., 2012. Poisson tests of declustered catalogues. Geophysical journal
international. 189(1). pp.691-700.
Mishra, A. and Mahesh Kumar, M., questionaire survey”. International Journal of Current
Research Available onl Key words.
Ocran, T., 2017. Implementation of mobile technology based library service: case study of
University of Cape Coast(Doctoral dissertation, University of Pretoria).
Online
Global mobile consumer survey. 2017. [Online]. Available through:
<http://192.168.1.18/projectfiles/internal_chat_attatchment/deloitteglobalmobileconsumersurve
y2017_ukcut1552049277.pdf>.
Smartphone sales boom. 2019. [Online]. Available through:
<https://www.bbc.com/news/technology-41319684>

APPENDICES
1. Calculation of Monthly Cost for repayment of Mortgage Loan: