Eco-Fone Smartphone Sales: A Comprehensive Business Report (2012-2017)

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

ECO-FONE
1

Table of Contents
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:
According to the report of UK based Eco-Fone organization, a discussion will be made on the
product of Eco-Fone organization. The organization has the business of selling smartphones in
the UK. The Eco-Fone organization having business operations in two branches, one in
Richmond and other is Putney. It adopts a systematic method of doing business to manage
properly, efficiently and effectively. The report is showing the difference between Z-test and
student's T-test. Poisson distribution also is discussed its effect and impact and used where the
chance of occurring of same events less or null. This organization increases its profitability in the
smartphone market every year since startup. By earning good profit from the business of selling
smartphones in the UK, the organization covering the good market share as well and having a
good position and good earning in order to expand its business operations.
3

Task 1:
As per the research report of the given organization, the number of workers in the UK is 33.5
million total but in the current time only 32 million people of worker are still in the working
category. Out of 32 million workforces, only half of all workforce that have been currently time
as in achieving standards. Receiving an email (which is 44 percent), voice calls (34 percent) and
calendar management (23 percent) is the primary purpose for using smartphones by the UK’s
employee for the purpose of transferring and receiving documents. Using these applications is
easy because most of the worker used such application and if they perceive problems regarding
smartphone they take help each other. These applications are easy to use is also the reason
behind that legacy information and reporting systems applications are difficult to use because
they need special skills and understanding. In the UK, the report of researching clearly showed
that at least one time in a day the population of worker use smartphones while forty-three percent
used smartphones for instant Whatsapp chatting. The worker of Eco-Fone organization also used
some restricted and unofficial applications for their own use which is totally unethically as per
the code of business conduct. Such applications such as using for mobile for browsing, picsart
application and use for navigation (Deloitte, 2015). Uses of smartphones application for business
work are just 5 percent. These applications use by the worker for presenting timesheet, 6 percent
access intranet and 4 percent use for submitting business expenses. Uses of smartphones are not
for the above reason but also for the purpose of getting contextual information on time. This will
made and express an ideal information device provider. Less use of smartphones was not the
reason is the lacking of need. Activities that are related to work are decreasing in 2016-17
(Deloitte, 2015).
In %
2016 2017
Emails 41 37
Making standard calls 33 32
Calendar management 3 0
Viewing documents 17 0
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It has been seen from the figure that using smartphones for the above activities has declined in
2016-17.
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Task 2
Year In %
Tablets Laptops Smartphones
2012 16 73 52
2013 36 76 62
2014 50 75 70
2015 60 79 76
2016 63 76 81
2017 68 78 85
2012 2013 2014 2015 2016 2017
0
50
100
150
200
250
Smartphones
Laptops
Tablets
The above line chart display that the uses of smartphones, laptops, and tablets have been
increasing from 2012. From this, it has been analyzed that if this trend is continuously going on
in 2018 and 2019 then the sale increase and it helps in covering more area. Due to the lacking of
impact on other product that line chart is not suitable in the above situation. In this case line chart
is not able to display the impact of the competitive product on other smartphones Eco-Fone
organization viz. the effect on the product of the above products except smartphones. Here for
the above figure regression line advised to the Eco-Fone management. This line chart helps in
generating the effect at the same time when the changes made (Chatterjee, and Hadi, 2015).
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Task 3
In the same year of the month of May and June, a report has been made with taking of 1163
people as a sample and put questioned, on using smartphones in official business activities. In
the last five year, the age of this type group of people has excited in accepting new things as
compared with the other age group of people. The research report showed that 71% of people
between the ages of 55-75 years are able to use their own app handset. Sale of the Eco-Fone
organization product has been increased since startup and due to this also earned a good income
in the business sector (Wang, et. at., 2015). For example, on an approx. 20% of people saw their
phones regularly every 15 minutes. This was the national average from the 56% of people. 50%
of adults’ generation of used smartphones (70% of all total adults) for the purpose of active in
social media like installing the Facebook application and access many times. In the UK, between
55-75 year age, people are rich and they believe in purchasing premium and high rated
smartphones. Because they believe that this type of smartphones are better than other
smartphones as they focus on offering good quality smartphones features including other special
features. The other features are safely payment via safely payment mode, booked taxi. And also
facial feature for lock-unlock phones, high standard loudspeaker, facilitates to listen to the clean
and clear voice. It is mandatory to purchase smartphones and provided to their children is the
thinking of most of the parents of the UK. New and better smartphones application attracts other
customers who buy first time (Wang, et. at., 2015).
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Task 4
Pros Score/10 Cons Score/10
The increment in the
number of buyers
7 Handle customer
behavior
6
Increase monthly sale 9 Increase in expenses 6
Spread business
operations
9 Perceive problems 5
A better understanding
of the language of
another market area
8 Increase Competition 8
Availability of product 7 Government policies 6
Total pros 40 Total cons 31
Average pros 8 Average cons 6.2
From the analyzing of the above table, it is clearly seen that Eco-Fone organization has more
benefits. At the same time opportunities runs with some barriers. After analyzing the pros and
cons, the management of Eco-Fone organization should take the decision of expanding their
business activities across Kingston. Organization arises their profitability more by providing the
new improved technology. This will help the other customer to buy their product and, from this
increase their sales and profitability ((Belair-Gagnon, 2015). This will also help the organization
to increase its customer and help the Eco-Fone reaching the top level. There should be an
increase in customer but at the same time problems of managing, lack of understanding their
local market also come. To overcome these problems the organization should use the above
method (Yedekar, and Johnson, 2018).
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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
3,145.90
Eco-Fone organization owns two building in the UK. The new building is available on lease or
sale. The organization is going to buy another building, not on the lease. On the calculation of
the above, the EMI (monthly installment) of the fresh building is equal to £3,145.90. The interest
rate is applied by the owner of the building on opening outstanding balance. Total amount with
interest is payable up to 15 years at the beginning of every year. The demanding price of the
building by the owner of the building was £400,000 but after negotiation, the price was
£350,000. The final price of the building after bargaining was £350,000. The decision of
purchasing building is beneficial for the organization because it is a profit making organization
(Macit, 2017).
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b)

Broken Hill Proprietary Company Limited

Unilever

Aviva

Lloyds Banking Group
11


Scottish and Southern Energy

HSBC Holding Plc

Glencore
Tesco
12