Eco-Fone Smartphones: A Business Development Report

Desklib provides past papers and solved assignments for students. This report analyzes Eco-Fone's business performance.

Eco-Fone
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Table of Contents
Introduction:....................................................................................................................................3
Task 1...............................................................................................................................................4
Task 2...............................................................................................................................................5
Task 3...............................................................................................................................................6
Task 4...............................................................................................................................................7
Task 5...............................................................................................................................................8
Task 6.............................................................................................................................................11
Task 7.............................................................................................................................................13
Task 8.............................................................................................................................................17
Task 9.............................................................................................................................................18
Task 10...........................................................................................................................................19
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Introduction:
In this report of Eco-Fone smartphones, it has been discussed about the products of Eco-Fone
smartphones. The Eco-fone organization engaged in the production line of manufacturing
smartphones and accessories. This organization increases its profitability in the smartphone
market every year since it has been established. Under this, it also been discussed about the Z
test, and understand how it will helpful for the Eco-fone organization and the quality of their
products. In this section of Eco-fone organization, it will discuss the organization that it will
spread across the Kingston or not for ranging. It adopts a systematic method of doing business to
manage properly, efficiently and effectively.
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Task 1
According to the Research, it has been found that approximately half or just more than half of the
workers use the smartphones for the purpose of business activity that has relation with the work
although, the population should be higher as compared to now (Deloitte, 2015). The worker's
population in the UK is nearly about 33.5 million out of which about 32 million people are found
engaged in their work properly. The optimization of the smartphones till the mid of 2017, is done
by the usage of such applications namely - email (43 percent), calendar management (22 percent)
and voice calls (35 percent). Most of the workers use these applications as a reason behind these
applications is they are easier to use as compared to the applications that are difficult to use such
as reporting systems and legacy information are probably have lower usage among the workers.
It has been found that about 43 percent workers use Whatsapp at least single time in a day and
also some unofficial smartphone applications such as messaging, GPS, mobile browser and snap
applications are used to enhance the usage of the smartphone. Smartphones do help the workers
to provide the contextual information on a timely basis and become the ideal information
provider for them. They made the habit of using smartphones regularly instead of tablets or
personal computers as PC's and tablets become the overkilling thing for them. Work-related
activities like email, making standard calls, calendar management; documents viewing etc. are
declined from the year 2016 to 2017 (Mobasheri, et. al., 2015).
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Task 2
Year
In %
Tablet
s
Laptop
s
Smartphone
s
2012 16 73 52
2013 36 76 62
2014 50 75 70
2015 60 79 76
2016 63 76 81
2017 68 78 85
1 2 3 4 5 6
0
500
1000
1500
2000
2500
Year
Year
In % Tablets
In % Laptops
In % Smartphones
With the help of the above linear chart, it can be understood that there should be an increase in
tablets, smartphones and laptops year by year. So, it can be forecasted that in the year 2018 and
2019 again these will be increased on the basis of the past record. Linear forecast model is not
working well in this case as it does not explain the data properly (Yedekar, and Johnson, 2018).
For the purpose of understanding the data, there should be a proper model should be used.
Column chart model will definitely work well in this case as it shows the data clearly.
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Task 3
It has been found that smartphones are mostly used by the younger generation people as compare
to the older age people. According to the market report, it has been found that the sales of
smartphones are increasing with older customers in the UK (Belair, 2015). For instance, about
21% of people said that they regularly check their cell phone every 15 minutes as compare to the
national average of 57%. Facebook is installed in the smartphones of about 57% people out of
which 71% of people are found to be adult. The screen of old phones is small so the people need
to face some problem in viewing but now the screen of the newly coming smartphones are big
so, older people are not facing problems regarding the view. Deloitte suggested that people
between the ages of 55 to 75 years should buy the premium quality handsets as the company is
providing high-quality services to the customers like making payments with the help of cell
phones and booking a taxi from phones and also new smartphones have a louder speaker as
compared to the older ones. Facial recognition and fingerprint sensor feature are also very
attractive towards the older generation people which force the people to buy the smartphones.
Another feature that was added to Samsung and Apple's latest smartphone would attract older
customers to buy these phones (Kibona, and Mgaya, 2015). In early days, people face some
problem regarding picking up the phone by pressing the keys but now phone can easily be picked
by just swiping the screen.
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Task 4
Pros Score/10 Cons Score/10
Knowledge of another
market
7 Handling the behavior
of customers
6
Different varieties of
product
9 Lack of understanding 6
Expansion of business 9 A rise in
Infrastructure
expenses
5
Increase in customers 8 Problem in
management
8
Increase in Sales 7 Increase in
Competition
6
Total pros 40 Total cons 31
Average pros 8 Average cons 6.2
A ‘pros and cons method’ table for expanding to Kingston.
From the above pros and cons method table, it has been understood that Eco-Fone company
should expand its business to Kingston as there are many benefits of expanding the business like
different varieties of products come into existence according to the need of customers of
Kingston (Krause, and Rädler, 2016). The company may grow fast as people taking part and help
the company in making a profit. Also, there should be an increase in customers as the company
is expanding its business in Kingston so the customers of that country also participate or engage
in the business. A problem regarding understanding the language and behavior of the customers
of some other country can be taken into account.
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Task 5
a)
Details Amount (£)
Loan Amount 350,000
Loan Repayment Duration (in
years) 15
Rate of Interest 7%
Monthly Installment 1633.333333
On the above calculation, the monthly installment of Eco-Fone is 1633.33 which should be
payable up to 15 years at the rate of 7% per annum continuously at the beginning of every year.
The interest rate is applicable to the outstanding balance of a loan. The price demanded by the
owner of the building was £400,000 but the eco-fone bargained it and comes down the price up
to £350,000. As the company is making profits every year and it is increasing so, this installment
amount is payable by the company. If a company wants to expand the business then it requires
better facilities for managing the business and doing well in the market competition. With the
help of this, Eco-fone can easily purchase the building (Mackey, and Gass, 2015).
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b)
 = Bhp Billiton
 = Unilever
 = Aviva
 = Lloyds Banking Group
 = SSE
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 =HSBC
 = Glencore
 = Tesco
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Task 6
Z test is also known as a hypothesis test. Z test is a statistical tool used to test whether the two
population means are different or the same when the variances are pre-known and the sample
size is large ( n>30). It is the comparison of at-least two different groups of samples, ones are
taken from a single population with already known variance. The Z test is more important in
compared with the student's t-test because Z test has separate single critical values for each and
every sample sizes whilst the T-test has separate critical values for each sample sizes that's why
Z-test is most useable and more smoothly or conveniently. Thus, most of the statistical tests were
worked on a large sample size with pre-known variance whilst the T-test used when the sample
size of population variance is unknown and the size of the sample is not large as in case of Z test.
Hence this test has to be determined itself from the sample (Sharpe, 2015). A null hypothesis
(HO) test is the test of researching which the person who is researcher try to nullify or to void the
result. It comes between -0.5>n<0.5. Oftenly, null offer common view of something wile
hypothesis is that the researcher believes that was the real cause of the phenomenon (Anderson,
et. al., 2016).
There are many types of test that are used in statistics. The one test is z used in the following
conditions:
 The sample size is equal.
 Data normally distributed.
 Collected data should be independent.
 The Z test is used when the size of the sample is more than 30.
 Randomly select data from the population in such a way where each and every item gets
an equal chance of being selected in the testing.
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From the analysis of given case study,
1.41
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