Eco-Fone Business Expansion Report: A Comprehensive Analysis

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Eco-Fone
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Table of Contents
Introduction.................................................................................................................................................3
Task 1..........................................................................................................................................................4
Task 2..........................................................................................................................................................6
Task 3..........................................................................................................................................................8
Task 4..........................................................................................................................................................9
Task 5........................................................................................................................................................11
Task 6........................................................................................................................................................15
Task 7........................................................................................................................................................18
a)...............................................................................................................................................................18
Task 8........................................................................................................................................................25
Task 9........................................................................................................................................................27
Task 10......................................................................................................................................................28
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Introduction
Under this report, it has been studied about the Eco-Fone organization whose work is to sell the
smart-phones and accessories across the country basically in the UK (United Kingdom). The
organization also run two other shops, one in Putney and another in Richmond and also be seen
that company grow instantly because of earning a good income from their business products. In
this report also be seen various variances between the two shops and for this each shop mean is
being calculated based on the net taking of shops and find the reason. Also, discuss and advice to
the company management whether the expansion decision is better for the company or not based
on the market research.
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Task 1
As the technology advance day by day, the numbers of new improved smart-phones increased
very fast because the users find that smart-phones are more important for life as it, make life
become simple and easy. The smart-phones can be accessed anytime, anywhere with a single
touch. The demand for smart-phones in the country of the UK (United Kingdom) has been grown
with a very fast rate. With the new technology used in smart-phones, the rate for them decreased
because of new techniques used which reduced the cost price of the smart-phones in the UK. The
same techniques are also be used by the Eco-Fone organization because it also wants to increase
its customers by providing the best quality of product at a reasonable price. In the current period
of time, using mobile phones is just not end with use now it also acts status of the people. If
smart-phones are not used by the person then he will not stand with others using smart-phones
because it shows status (Deloitte, 2015).
Email
Making standard calls
Calendar management
Viewing documents
0 5 10 15 20 25 30 35 40 45
2017
2016
The above bar chart indicates that the uses of the four activities such as email, calls, see
documents and management of calendar has been decreases in the year 2017 as compared with
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2016. The reason being the organization provides smart-phones with new additional features will
take place the old (Deloitte, 2015).
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Task 2
Year Smartphones
2012 52
2013 62
2014 70
2015 76
2016 81
2017 85
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2011 2012 2013 2014 2015 2016 2017 2018
0
10
20
30
40
50
60
70
80
90
Smartphones (in %)
Smartphones (in %)
Polynomial (Smartphones (in
%))
In was seen from the chart diagram that the demand and use for the smart-phones has been
increased over the year between of 2012 to 2017. On this basis it is forecast for the upcoming
year for 2017 and 2018 that this will goes up year by year. The reason is using of smart-phones is
not is up to the group of young people now it spread in the old aged group and through the
various features of this it encourage and influence customer towards the mobile phones.
Following are the why this is not suitable for the analysis of forecast
 Inaccuracy.
 Based on assumption events influenced.
From these points linear forecast is not compatible for this type of data.
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Task 3
This study is based on 1153 people taken as a sample and question from them for the month of
May and June this year. As per the Kelion, it presents that the age between of 55 to 75-year-olds
of the people possess their own mobile phones which are 71 percent of the aged group people. In
the last 5 years, it has also been that this age group people more attracted to the smart-phones
over the young people. The report also provides information about the use of mobile phones by
the member so the demographic has been used less over the young generation of people. The use
of smart-phones by the people has been increased rapidly even they check their phones within
every 15 minutes. This was 20 percent of the total national average of 56 percent. And it also
was seen near half of the adults who are in 70 percent installed Facebook in their phones and
uses significantly. The Deloitte report also is suggested that rich people prefer to buy premium
smart-phones and by seeing this even the parents also started to provide mobile phones as
mandatory. From the research also find those people who buy mobile phones first time in their
life may enforce to buy smart-phones. It was seeing that the existing customers of the phones are
more benefited from the changes in the smart-phones over the past few years because of new
phones come with various additional features such as big screen, easy to use for sending mail,
book taxi, and good software techniques (Kibona, and Mgaya, 2015). In this field find another
two companies work such as Apple and Samsung. These companies also offer more features in
addition to the previous on like facial reorganization and others.
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Task 4
Should the company expand its business to Kingston?
Pros Score/10 Cons Score/10
The rise in customer number 8 Limited accessibility 4
Enhanced profit 7 The language barrier between
management and local people
6
Minimized competition 5 5
Increase resources 7 Increased capital requirement 7
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Increase opportunities for
new employees
8 Need more staff and difficult to
control each
7
Create a brand image across
the areas
7 Create pressure among employees 8
Consumer awareness 6 Increase expenses on infrastructure 5
Sales Increased 8 Required more capital 6
Total pros 56 Total cons 48
Average pros 7 Average cons 6
According to the above table of pros and cons, it is clearly seen the company’s pros is more than
cons. The company pros show that it enables to expand its business across the country because of
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it have to create a name of their brand into another world and also it helps to increase in the
profitability via an increase in sales. There are various advantages to the company if they decided
to expand its business like create a brand name, able to know the preference of the customers and
others (BBC, 2017).
Task 5
a)
Description
Rate of Interest 7%
Loan Repayment Duration(in years) 15
Loan Amount 350000
Monthly Installment $3,145.90
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As per the loan repayment method, it is calculated that the company needs to pay $3,145.90
every month for 15 years. The owner of the building decided the cost of the building is $ 400,000
but as per the given, its final price after bargaining with the owner is $ 350,000. As per the
information is given about the profit-generating ability of the organization, it is advised to the
management that they should take the building because the monthly installment is easily payable
in easy installment by the company as the company is profit-making over the past years and also
been decided to spread its business (Deloitte, 2015). This will come when the company possesses
enough funds within the business. Hence the advice is to the organization that building is to be
taken.
b)
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