Market Analysis and Financial Projections for Eco-Fone

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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.............................................................................................................................................10
Task 6.............................................................................................................................................14
Task 8.............................................................................................................................................17
Task 9.............................................................................................................................................19
Task 10...........................................................................................................................................20
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Introduction
In this report, it has been seen that Eco-Fone organization is a company of manufacturing mobile
phones and accessories which want to see to spreads their business operations across Kingston.
For this purpose, it has been analyzing various parts of the business which enable management to
take their decisions in an optimum manner. The company doing well in recent years and able to
earn a good profit. In this also study on Z-test and Poisson distributing and analyze from that in
the interest of the company.
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Task 1
Brief Overview of the mobile phone market in the United Kingdom:
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With the advancement in technology, the mobile phone market has grown at a tremendous rate,
with this advancement in the technology the price of the mobile phones has also grown to and
fro. Nowadays, one mobile phone can cost 1000 Euros which is quite high for just one gadget
but people are paying it to be in fashion. Nowadays, mobile phones are not only used as mobile
phones they are used as the status of class as well as become the symbol of status for people. In
the year 2017, the sales value of smart-phones in the United Kingdom has increased by 24%
according to the data collected with the help of sales index. With the increment in the prices of
the smart-phones, the sales of the smartphone are not decreased instead it has increased with
good proportion. The smartphone penetration has increased year by year not only in the United
Kingdom but also in other parts of the world (Aslam, et. al., 2017).
Year 2016 Year 2017
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0.5
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1.5
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Sales of Smart Phone in Millions
Figure 1: Chart showing the data on sales of Smartphone in the United Kingdom in the
year 2016 and 2017.
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Task 2
Forecasting the use of Smartphones by the adults in the United Kingdom in the year 2018 and
2019 by looking at the data from the past years:
For taking
Photographs Social Media Uses Communication
purpose Gaming
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0.5
1
1.5
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2.5
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4.5
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Year 2018
Year2019
Figure 2: Chart forecasting the Uses of smart-phones by the adults in the year 2018 and
2019.
As the linear forecast is made on the basis of reports from the previous years so it is the
possibility that it can get fail to deliver the original case scenario. Nowadays, the adaptations in
the technology are at a good rate because the technology is changing very rapidly no one knows
that what technology he or she is investing in will stay longer in the market or will be changed or
replaced by some other technology the coming day (Kibona, and Mgaya, 2015). For Example
there are several Mobile companies in the market suppose some buyer use to buy a mobile phone
for some company with the latest version of android then on the other day the version of android
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gets updated than the latest technology in which the user has invested in no longer latest because
the advancement is already available in the market. So the predictions or forecasting of the usage
of smart-phones by the adults cannot be exactly predicted there are always the chances that it can
get wrong.
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Task 3
Summary of the features which makes smart-phones so popular among the older customers:
In the United Kingdom market, the growth of consumers of Smartphones between the age group
of 55 to 75 who owns the mobile phones which are application capable is increased rapidly
(Deloitte, 2015). The adoption rate of the people in this age group is also high than any other age
group in the span of over the past five years according to the reports. The features of the
smartphone that make it popular among the older citizens are:
 The Big screens of the smart-phones- As the vision of older citizens is not that good so this big-
screen resolution helps them to see the things easily and the loudspeaker option is also attracting
a lot of old age users.
 Easier Software usage- With the advancement in the technology the usage of applications has
also become easier so the accessibility and hands-on application of the mobiles have made it
easy for the elder people to get the latest technology mobile phones.
 Online applications- Everything from groceries to taxi booking has gone online so it has become
a necessity to get in touch with this technology so that the advantages of this technology can be
attained while sitting at homes (Deloitte, 2015).
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Task 4
Table 1: Pros and cons related to the expansion of business to Kingston.
Expanding the business to Kingston
As discussed in the table above it is quite clear that the expansion of business to Kingston will
lead to the organization to grow because the advantages related to the expansion of business are
higher than the disadvantages related to the expansion of business to Kingston and the most
important factor related to the advantage is that the sales of the company will increase and that is
one of the influencing reason to extend the market (Business today, 2013).
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Task 5
Details Amount (£)
Year required to the repaid loan amount 15
Amount of Loan 350,000
Interest Rate 7%
Installment (Monthly) 3145.90
The price of the building is £ 400,000 but as per the information provided, the final price of the
building is £ 350,000 after bargaining. This can also be said the amount of £ 350,000 as bargain
amount or cost of the building. The monthly installment is made of £ 3145.90 (approx £ 3146).
This is required to pay this amount on a monthly basis. The monthly installment is calculated by
applying the interest rate of 7 percent at the beginning of each year. According to the
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information, this company is enabling to make a profit so it can bear this amount of installment
and easily payout of from the company income (Pararai, et. al., 2015).
(b)
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