Report for Eco-Fone 2019

This report analyzes the UK's smartphone market and explores the feasibility of expanding Eco-Fone business. It covers market conditions, forecasts, pros and cons of expansion, potential market for older customers, costs of a new building, difference in net takings between two shops, customer satisfaction, and quality procedures. The report concludes with important findings.

-------------------------------------------------------
REPORT FOR ECO-FONE
Date: April ??, 2019

Report for Eco-Fone 2019
Introduction
Smartphones are multi-purpose computational instrument whose
demands have continued to grow as people embrace the latest multimedia
features which include songs, videos, gaming, and so on. The project study
is focused on UK's reviews and predictions concerned with smartphone
market conditions (Anderson, 2012). The study covers relevant and
detailed analysis on the UK's mobile market current position in all terms
and forecasts to support Eco-fone business. Study also explains pros and
cons associated with expansion of Eco-fone business. Further study also
contains critical evaluation of respective corporation's products' efficiency
and different tasks are performed accordingly.
2

Report for Eco-Fone 2019
1. Analysis of Issues for Eco-Fone Smartphones
1.1 An Overview of the Mobile phone market in the UK
In UK, currently all kind of technological changes are accepted by
different markets which indicates that UK's market is continuously moving
towards technological advancements. Here in this context smartphones
and other electronic gadgets are key and fundamental aspect of such
technological advancement. Smartphone market is most dynamic and
growing sector. In UK's population specially youth is highly attracted by
smartphones and covers a large portion of overall smartphone users
(Spekman and Davis, 2014). Growth in electronic products market in UK is
around 30%. According to the study conducted in UK's markets/sectors by
Deloitte, it's been ascertained that smartphones are more generally used:
about 44 percent for email and around 34 percent for voice calls. Further,
around 40percent of working persons are utilizes one of the common app
named Whatsapp regularly. Among around 33.5million workforce of UK
approx32 million personnel are using mobile and smartphone devices for
day to day business workings. Thus, users of smartphone continuously
increasing that significantly impacting revenues of smartphone companies
by approximately 1.56 billion per annum (Global mobile consumer survey,
2017). In addition, study has shown that around 58% of adults/youth are
users of smartphones and this figure is projected to expand by approx 90
percent by 2020. The increase in adult smartphone users obviously
indicates that major part of population is using smartphones in their
everyday workplace and routine life.
Usage of smartphones:
2016 2017
Email 41.00% 37.00%
Making standard call 33.00% 32.00%
Calendar management 3.00% 0.00%
Viewing document 17.00% 0.00%
3

Report for Eco-Fone 2019
Email
Making standard call
Calendar management
Viewing document
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45
41.00%
33.00%
3.00%
17.00%
37.00%
32.00%
0.00%
0.00%
2017
2016
4

Report for Eco-Fone 2019
1.2 Forecasting the UK Adult Smartphone use
2012 2013 2014 2015 2016 2017
0
10
20
30
40
50
60
70
80
90
52
62
70 76 81 85
Smartphone
Above presented chart shows increasing popularity and use of
smartphones among adults in UK. Diagram clearly sates that in 2012 adult
users of smartphones was 52% only which has been reached to 62% in
year 2013, 70% in year 2014, 76% in year 2015, 81% in year 2016 and
85% in year 2017. Based on Deloitte's 2017 study, the use of adult
smartphones stated that approximately 17 percent of population using
smartphones around100 times in single day, including age group varies
16years to 75 years. This upward trend in figures shows that this growth in
adult smartphone-users will continue in coming period. This scenario points
out that smartphone business in UK has great opportunities (Asgharzadeh,
Bakouch and Esmaeili, 2013).
5

Report for Eco-Fone 2019
1.3 Smartphones - A potential market for older customers
As per Deloitte research study, people aged 55 to 75 who are financially
strong are preferring to buy premium featured smartphones. It is
interesting fact about usage of smartphones that older generation
population in UK are adopting smartphones technology quickly. Approx
more-than 71percent of individuals belongs to age category of 55-57 years
have their own smartphone-devices and are using them (About smartphone
feature. 2019). Following are several crucial smartphone features are
described which are also main cause of increasing popularity, as follows:
Bigger-size screen: It is quite crucial and essential feature in
smartphones which attracts aged users as mostly old customers due to
vision problems in eyes prefers to buy a large-screen in mobile phones.
Also it is convenient for them to operate a larger screen smartphone in
comparison to ordinary mobile phones.
Better sound quality: It another major feature in smartphones that
attracts old-age individuals towards purchasing smartphones. Since latest-
range of smartphones comes with latest and innovative technological
aspects that makes much easier to old-customers to clearly hear call-voice
or sounds. This also includes features which improve sound quality for ear
friendly sound (Smith, 2014).
User-friendly and easy interface: Most of the smartphones are based
on android and IOS which provides most attractive and easier interface for
operating smartphones. Interface is so easy to understand even for old
customers who don't have computer knowledge. It also allow to operate
multiple tasks at same moment.
Safety, privacy and other features: Smartphones not only allow to
carry large amount of data but also it provide proper safety and privacy
features. Old customers can easily rely on the safety features and privacy
options in smartphones.
So, these are several core features of smartphones which are reasons
behind growing popularity of smartphone specially in old customers.
Consideration of these features in a smartphone business is significant to
cover old-customers user group.
6

Report for Eco-Fone 2019
1.4 Feasibility of Expanding business to Kingston using Pros and
Cons table
Feasibility check of expanding ECO FONE business to Kingston:
Pros Scor
e
out
of
10
Cons Score
s out
of 10
Reach to new-customer group- It
is one of main advantages of
extending business to such a
new place. Business has a
chance of reaching new/fresh
segment of clients. Like the
above corporation, attracting
more fresh clients can be
advantageous to them.
5 Shortage of cash- It is most
fundamental issues that the
above-mentioned
corporation can encounter if
they diversify or expand
business in new
geographical location:
Kingston
9
Increased market/industry share-
Due to expansion of business in
new location company's sales
and customer also will increase
this will ultimately lead to
increased market share (Chang,
Chen and Zhou, 2019).
4 Cost of controlling- With
expansion in new place
another major issue that will
rise is additional cost of
setting up branch office for
establishing proper control
over business.
8
Reduction in external risks:
Expanding geographical
locations leads to minimisation
of risks arising from external
sources such competitive
effects, inflations etc.
5 Increased capital funding
requirements: Step like this
require heavy investment
and capital funds which
leads to increase in
business risk and impacts
capital structure (Shaban,
2018).
9
Sum-total pros: 14 Sum-total cons 27
Average pros: 4.67 Average cons 9
Based on above reviews, it could be concluded that it would be not
appropriate for company to make expansion in Kingston as weighed of
disadvantages are higher than advantages.
7

Report for Eco-Fone 2019
8

Report for Eco-Fone 2019
1.5 Costs of a New Building
(a) Monthly costing of loan taken for 15 year amounting £350000:
Here,
Loan amount is: £350000
Interest rate or i: 7 percent
Tenure of loan : Fifteen years
EMI of loan (per month) : £ 3127.65
Total interest amount payable: £ 212977
Total payment made against loan: £ 562977
Form above results and information its has been evaluated that cost that
will occur in respect to new office building in context of respective company could
be £ 562977 if corporation is selecting funding though loan of £ 350000. This cost
is aggregate of loan amount and interest payable on loan taken. Company has to
make payment of loan by monthly EMI of £ 3127.65 for 180 months to take
possession of building and repayment of loan.
(b) 8 well known and famous corporation and financial institutions for
obtaining loan in UK:
Business can be financed by taking loans, for which selection and
identification of most trusted and reliable banking corporation and financial
institution is crucial. In this context following are some major organisations for
taking loans for business in UK, as follows:
9

Report for Eco-Fone 2019
1.6 Testing the Possible Difference in Net Takings in the Two
Shops
Efficiency and cost-effectiveness of 2 retail-shops of Eco-Fone corporation:
Respective corporation is operating its key activities and functions
into 2 distinct locations having different geographical locations. For
assessment of making comparison of effectiveness and efficiencies of these
shops, a sample size i.e. 40 has been taken that is futher analysed below:
1st Shop:
Mean of samples: £ 100
Standard deviation: 20
Coefficient of variation: Standard deviation / Mean x 100
=> 20/100 x 100
=>20 %
2nd Shop:
Mean of samples: £ 90
Standard deviation: 40
Coefficient of variation: Standard deviation/ mean x100
=> 40/ 90 x 100
=> 44.44 %
Above outcomes shows Shop first with SD of 20 is less risky as in
comparison with Second shop has SD of 40. While COV of Shop 1st is 20%
while 2nd Shop's COV is 44.44% which indicates that efficiency of Shop 1st is
much more as in comparison with 2nd Shop.
10

Report for Eco-Fone 2019
1.7 Customer Satisfaction
Insert text approx. 250 words
11

Report for Eco-Fone 2019
1.8 Quality Procedures
Causes for which application of Poisson Distribution is requisite in context
of Eco Fone company:
In statistical terms a Poisson distribution relates to distribution which
demonstrates how frequently a specific task or event possible to occur in
specified time duration. It mainly applied for independent tasks or events
that are occurring at specific intervals within specific timespan (Reynolds,
2017).
In case of respective corporation's scenario, Poisson distribution is
most appropriate as in this case there is a specific event i.e. among around
10,000 invoices in a month, probability of more than 3 invoices can return.
While normally 2 invoices are usually retuned in a month. Poisson
distribution act like a discrete function, which implies that event can be
easily measured based on as occurrence or not occurrence. Variable can
also assessed by this method in a whole number (Savic and Pedrycz, 2015).
In given case this distribution is relevant as given scenario is all about
occurrence and non-occurrence of return of 3 invoices in a single month.
Also a specific time interval of one month is also provided in given case
which is possible only by application of poisson distribution.
12

Report for Eco-Fone 2019
1.9 Conclusions & Important Findings
Through above discussed study, it has been articulated that smartphones'
market in UK is growing rapidly and current business environment is
appropriate for establishing Eco-fone business. Analysing marketplace
before establishing business is significant for both start-ups and existing
business entities. This kind of analysis help to recognise possible pros and
cons in relation to new business idea. Also further review of research
studies of consulting firms like Deloitte and other corporations is significant
to identify potential threats or risks as well as opportunities for business.
Also effective application of some statistical methods can help to easily
interpret current market situation and to determine possible risk weighted.
13

Report for Eco-Fone 2019
body text wordcount, excluding diagrams/captions, etc approx. 2000 words
14

Report for Eco-Fone 2019
2. References
Books and 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.
Chang, Y. F., Chen, C. S. and Zhou, H., 2019. Smart phone for mobile
commerce. Computer Standards & Interfaces. 31(4). pp.740-747.
Reynolds, P .D., 2017. New and small firms in expanding markets. Small
business economics. 9(1). pp.79-84.
Savic, D. A. and Pedrycz, W., 2015. Evaluation of fuzzy linear regression
models. Fuzzy sets and systems. 39(1). pp.51-63.
Shaban, S. A., 2018. Poisson-lognormal distributions. In Lognormal
Distributions (pp. 195-210). Routledge.
Smith, S. S., 2014. The expanding role of CPAs in a changing business
environment. The CPA Journal. 84(6). p.13.
Spekman, R .E. and Davis, E. W., 2014. Risky business: expanding the
discussion on risk and the extended enterprise. International Journal
of Physical Distribution & Logistics Management. 34(5). pp.414-433.
Online:
About smartphone market in United Kingdom. 2019. [online] available
through:<https://www.deloitte.co.uk/mobileuk2017/assets/img/down
load/global-mobile-consumer-survey-2017_uk-cut.pdf>
About smartphone feature. 2019. [online] available through:
<https://www.bbc.com/news/technology-41319684>
15

Report for Eco-Fone 2019
3. Appendices
1. Calculation of Monthly Cost for repayment of Mortgage Loan:
16

Report for Eco-Fone 2019
17

Report for Eco-Fone 2019
18

Report for Eco-Fone 2019
19

Report for Eco-Fone 2019
20

Report for Eco-Fone 2019
21

Report for Eco-Fone 2019
22

Report for Eco-Fone 2019
23

Report for Eco-Fone 2019
24

Report for Eco-Fone 2019
25

Report for Eco-Fone 2019
26

Report for Eco-Fone 2019
27

Report for Eco-Fone 2019
28

Report for Eco-Fone 2019
29

Report for Eco-Fone 2019
30

Report for Eco-Fone 2019
31

Report for Eco-Fone 2019
32