Eco-Fone Smartphone Business Company Expansion Report

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SUMMATIVE ASSESSMENT - ECO-FONE

Table of Contents
INTRODUCTION......................................................................................................................................................... 3
TASK 1............................................................................................................................................................................ 4
TASK 2............................................................................................................................................................................ 5
TASK 3............................................................................................................................................................................ 6
TASK 4............................................................................................................................................................................ 7
TASK 5............................................................................................................................................................................ 8
TASK 6............................................................................................................................................................................ 9
TASK 7.......................................................................................................................................................................... 10
TASK 8.......................................................................................................................................................................... 11
CONCLUSION............................................................................................................................................................. 12
REFERENCE............................................................................................................................................................... 13

INTRODUCTION
The assignment report presents the summary information, product information, customer
information, financial information and recommendations for expansion for Eco-Fone
Smartphones Business Company. The company sells smartphones and accessories from
Putney and Richmond both the cities since 2014 and growing every year as its net profit
and income are steadily increasing every year (Berenguer et al., 2016). Business experience
various changes in the trends among customers in which one is a substantial difference
between the two shops with respect to net takings and other increases in sales of the
smartphones among old customers in which some of the old customers are buying a
smartphone first time. With respect to these change in trends, the learner produces a
report that shows various aspects of the mobile phone market of the UK.

TASK 1
There are currently 33.5 million people live in the UK in which 32 million people are
working people. It is found out that more than half of the working people use a smartphone
for at least one business activity (Berenguer et al., 2016). That shows that the people of the
UK is ultimately very dependable on smartphones for their work-related activity.
Email Calls Viewing
Documents None of these
0
10
20
30
40
50
60
2016
2017
Figure: Top 4 smartphone activity
Source: Deloitte, 2017
According to the above chart working, people mostly use smartphones to use email
services on the phone. As in 2016, it was 41% and in 2017 it was 37% of the people use
smartphones mainly for email services. The 2nd best activity is called as it is the basic
function of any mobile phone and people after email uses their smartphones for making
standard calls. There is significantly reduced in the viewing document activity as in 2016
17% of working individual uses smartphones to view files and documents but in 2017% it
reduces to 0% (Deloitte, 2017). The reason of reducing the document viewing to 0% is
because there are many smartphone applications are introduced that do multitasking as in
2016 there are 44% working individual uses smartphones for other activities that are not

listed such as what’s app, social sites, shopping sites and in 2017 it increased by 6% make
in 50% of the persons uses smartphones to using these activities for their work activity.

TASK 2
Following are the statistics that show the change in the demand for laptops, smartphones
and tablets and based on it, with the help of line chart and linear equation the penetration
rate of 2018 and 2019 is also predicted.
Year Laptop Smartphones Tablets
2012 73 52 16
2013 76 62 36
2014 75 70 50
2015 79 76 60
2016 76 81 63
2017 78 85 68
2018 77 89 72
2019 80 93 75
2012 2013 2014 2015 2016 2017 2018 2019
0
10
20
30
40
50
60
70
80
90
100
laptop
Smartphones
Tablets
Based on the above line chart the prediction of the laptop, smartphone and tablets for the
year 2018 are 77, 89, and 72 per cent respectively and for the year 2019 it is 80, 93 and 75
respectively. But according to the Deloitte (2017), it is expected that 80% of the people of
the UK use a smartphone daily for their daily and office work and considered this the
expected rate should be much higher for the smartphones. Whereas the increase in
technology can reduce the popularity of laptops and tablets as enhancement of technology

may provide various effective alternatives for the tablets and laptops that might reduce the
demand of these two significantly (Markoski, 2019). That point’s shows that linear forecast
is not a good option considering the popularity and technology as these two significantly
affects the demand of the laptop, smartphones and tablets which may not be predicted
through the linear forecast.

TASK 3
Smartphones gain significant popularity among the old ones as it has so many features that
provide benefits and attraction to older customers. In the UK there are 14 million people
are belong to 55-75 age group in which 71% of the old people are capable of owning a
smartphone (Markoski, 2019). They are much more evolved and have a faster adoption
rate for the smartphone technology observed in over past five years. 20% of the old age
people check their smartphones within 15 minutes of waking whereas the average of the
country is 56% which shows the craze of the smartphones among the old age customers.
It is observed that the new technology significantly attract most of the old peoples which
influence their decision to buy smartphone whereas some of the old ones are forced by
their children and grandchildren and soon after that they got attracted by the ultimate
technology. 50% of the old people had to install Facebook in their smartphone compared to
70% of the total number of adults (Tallarida, 2015).
The reason of increase in craze is because smartphones offers so much that is needed for
the old peoples such as offers big screens which can be easily readable by the old peoples,
louder speakers to listen the their favorite songs and videos etc. also the software of the
smartphone makes so much easy for the old ones as it is easy to understand and operate
(Ageco, 2018). Apart from it, the face recognition and video calls are very effective in order
to make the old ones interested as through video calling old ones can talk to their children
and grandchildren.

TASK 4
Following are the table of pros and cons that presents whether the business expansion in
Kingston is favourable for the Eco-Fone or not.
Should we expand our business to Kingston?
Pros Score/10 Cons Score/10
Profit maximization 8 Competition threat 10
Increase customer base 9 Limitation of resources 8
Opportunity to increase in
market share
10 Financial challenge 8
Evolution of technology 9 Market challenges 9
Increase in demand for
smartphones 9 Increase the bargaining
power of customers 7
Total Pros 45 Total Cons 42
Average Pros 9 Average Cons 8.4
From the above table, it is found out that there are many pros are favourable for the
business compared to cons which show that conditions are good for the business
expansion. The increase in technology and the increase in craze in the old peoples for the
smartphone create various opportunities for the Eco-Fone. Deloitte (2017) stated that
incoming 2018-19 it is expected that smartphone demand will very likely to increase by
30% and it is expected that smartphones penetration will be 90 to 95 per cent by 2022. The
reason behind the increment is, in the UK it is expected that 80% of UK adults will likely to
use a smartphone daily compared to 56% in 2016-17 (Hunsaker and Hargittai, 2018).

TASK 5
Following are the computation of the monthly instalment of repayment value for the loan
required for the expansion of business in Kingston.
Determinations of monthly instalment of a mortgage
loan for expansion
Loan amount 350,000
Loan term 15
Payment per year 12
Rate of interest 7%
Monthly Installment
payment £3146
From the above calculation shows that Eco-Fone needs to pay £3146 per month for the
next 15 years in order to complete the whole sum. For solving the financial problem for the
expansion of the business, Eco-Fone needs to consider good loan company and for that
Paragon mortgages are seems to be best suitable financial institute to consider for taking a
loan (Firth et al., 2015).
Paragon Mortgages Logo

TASK 6
Hypothesis
Null Hypothesis = 0.05>H0<0.05 = There should be no significant connection between
the net taking of shops (Khan, 2019).
Alternative Hypothesis = there is a definite connection between the net taking of shops.
Particular Amount
Size of sample 40 40
Deviations (Standard) £20 £40
Mean £100 £90
In order to gain the result following formula is used:
The result obtained by using the formula is 1.41

TASK 7
Following are the questionnaire survey conducted by the management of Eco-Fone
business on a regular basis. Following are the responses and average of those answers to
the questionnaire survey:
1.) When was the last time you purchased a product or service from us?
Answe
r
Frequenc
y Answer
1 20 More than One year
2 17 Between 6 month to One
year
3 19 Between 3 month to Six
Month
4 14 Between 1 month to 3
Month
5 27 Less Than One Month
Mean 19.4 Between 3 month to Six
Month
2.) How long have you used our products or services?
Answe
r
Frequenc
y Answer
1 18 More than 5 Years
2 20 Between 3 to 5 Years
3 34 Between 1 to 3 Years
4 31 Between 6 to 12
Months
5 4 Less Than 6 Month
Mean 21.4 Between 3 to 5 Years
3.) Please rate us on the following where 4 means Excellent and 1 mean Poor.
Question 3A - Customer Service Support
Answer Frequency Answer
1 10 Poor