Eco-Fone Expansion: Market Analysis, Kingston Strategy & Finance

This report provides a comprehensive analysis of Eco-Fone's potential expansion, focusing on market trends, customer demographics, and financial considerations. It includes an overview of the UK mobile phone market, analysis of smartphone usage among older customers, and a pros and cons assessment of expanding to Kingston. The report also covers financial calculations for mortgage options and an evaluation of net takings from existing shops. Ultimately, the report aims to provide Eco-Fone with actionable insights and recommendations for strategic decision-making, leveraging data and market analysis to inform their expansion plans. The report uses graphs and charts to explain data in a visually appealing manner. Desklib provides students access to similar solved assignments.

Table of Contents
Introduction.................................................................................................................................3
Task 1...........................................................................................................................................4
TASK 2 – USE APPENDIX...............................................................................................................5
Task 3...........................................................................................................................................8
SUMMARISE.................................................................................................................................8
Task 4...........................................................................................................................................9
Task 5 – USE APPENDIX – SHOW FORMULA...............................................................................10
Task 6.........................................................................................................................................14
Shop A....................................................................................................................................15
Shop B....................................................................................................................................15
1) Workings............................................................................................................................15
2 Workings.............................................................................................................................15
3 Workings.............................................................................................................................15
4 Workings.............................................................................................................................15
5 Workings.............................................................................................................................16
Workings conclusion..............................................................................................................16
Task 7.........................................................................................................................................16
briefly summarise your findings in your report..........................................................................18
Task 8.........................................................................................................................................20
Introduction to theorem............................................................................................................20
Conditions of theorem...........................................................................................................20
Task 9.........................................................................................................................................21
References:................................................................................................................................21
Task 10.......................................................................................................................................22

The company Eco-Fone Smartphones sells smartphones and accessories from two
shops, one in Putney and one in Richmond. Eco-Fone does not currently sell laptops or
tablets.
Business has fared well since it set up the shops in 2014. Indeed, it has seen a steady
increase in net profits every year since start up. Recently it has noticed various trends
among their customers.
One trend seems to be an increase in sales among older customers, some of whom are
buying a smartphone for the first time. Another seems to be a possible significant
difference in net takings from the two shops.
Accordingly, as a work placement from the University of Roehampton, you have been
set a number of tasks, the results of which should be presented in report format for Eco-
Fone (word length 2000, excluding graphs/figures/references) and written in English.
These tasks are detailed in the following pages and generally concern:
 Summary information
 Product information
 Customer information
 Financial Information
 Recommendations for expansion
Your report should not be a simple list of tasks. Rather, it should read as a professional
business report with an introduction, sections, summary, references and appendices, in
Word format.
All tasks are worth ten marks each.

Introduction
The use off Smartphones as an auxiliary tool facilitates communication and accelerates
the dissemination of information and decision making, especially when directly linked
to the administrative, operational and industrial processes. Obviously, the need to use
smartphones for business purposes is not due to lack of deficiency. With so much
technology available to these users, they end up using their phones as hand-computers
to send emails, make voice calls, manage calendars, etc. With the rapid evolution of
mobile communication technology, Smartphones have been use more and more by
people, regardless of age, income, culture, “training”, training to use well this tool.

Task 1
You have been asked to write a brief overview of the mobile phone market in the UK.
Specifically, Eco-Fone would like to know summary statistics with respect to work-
related activities in the period 2016-17.
Prepare your one-paragraph overview based on information from Deloitte which can be
found on page 19 and data in figure 6, page 20 at:
and in Moodle.
Note that you should not copy verbatim the information contained in the Deloitte report.
Based on the data, include your report your own mixed bar chart for 2016 (green) and
2017 (blue) for the only the top FOUR activities.
According to statistics conducted in the UK, the number of workers in the United
Kingdom goes from 33.5 million people, and more than half of that resulted, around 32
million are employed. Based on these results of the 32 million workers use their phones
not only for personal use but also for tasks related to their professional activities. In
2017 the activities had a significant increase.
The survey points out that many unofficial applications are also used by users of
smartphones to send and receive emails, browsers, photo application, and so on. Of all
interviewed workers, 43% use WhatsApp at least once a day. According to these users,
this greatly facilities contact with other workers.
However, there was only the simple use of smartphones for the other work-related
utilities, especially those pointed to the worker´s movement, in time of information. The
use of production movement functions transformed a little year after years, as shown in
Figure 6. Only 5% of employees used their smartphone to transmit timesheet, 4% did
this to communicate expenses and 6% did this to connect an intranet.
The British production includes thousands of individuals that for them the smartphone
manages to be the instrument ideal, where the PC and Tablet would be excess.
However, for the most efficient use of the tool, it is appropriate to establish rules of use,
passable subjects of mobile communication, as well as whom, can communicate with
whom and in what situations. Importance, urgency, and speed in decision making can
guide these definitions.

Email Making standard
calls Managing my
time/workload Accessing the
company Intranet
0%
5%
10%
15%
20%
25%
30%
35%
40%
45% 41%
33%
8% 6%
37%
32%
6% 6%
Figure 6. Usage of smartphones for work related activities, 2016-17
2016 2017
In 2016 the diagram shows us that 41% of the individuals in the activity site used the
smartphone to send and receive emails, and that in 2017 this percentage decreased to
37%. Regarding connections, the graph shows that in 2016 only 33% used to make
connections, and that in 2017 only 1% left the effect, that is, 32% continued using to
make connections in 2017. In forms of production load management, there was a
performance of 8% and 6% in 2016 and 2017, relatively. Internet access represents 6%
for 2016 and 2017.
TASK 2 – USE APPENDIX
A) Using an EXCEL spreadsheet, produce an appropriate line chart based on data
contained in figure 3, page 13 of the Deloitte Report to represent UK adult
smartphone use 2012-2017. I
The appropriate Line Chart has been presented as under:

2011 2012 2013 2014 2015 2016 2017 2018
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
52%
62%
70% 76% 81% 85%
f(x) = 0.0651428571428572 x − 130.520285714286
Smartphone Usage
Years
Smartphone Usage
Year Smartphone Usage
2012 52%
2013 62%
2014 70%
2015 76%
2016 81%
2017 85%
(Khan Academy, 2019)

B) Use your chart to forecast similar use in 2018 and 2019. Explain briefly why a linear
forecast would not work well in this case. Which forecast model would work well?
Year Smartphone Usage
2012 52%
2013 62%
2014 70%
2015 76%
2016 81%
2017 85%
2018 E 85%
2019 E 92%

2012 2013 2014 2015 2016 2017 2018 E 2019 E
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
52%
62%
70% 76% 81% 85% 85% 92%
Smartphone Usage
Axis Title
Smartphone Usage
The linear model presents similar result for 2018 E and 92% for 2019 E which is
not correct. Further, the relationship between variables is abrupt and does not
follow a systematic pattern to fit in linear graph. The best forecast model shall
be non-linear as the same shall account for any sudden diversion in paths.
Task 3
Having gained a better understanding of the smartphone market, you decide to start
analysing a perceived increase in smartphone sales by older customers based on a BBC
news article available at:
Identify and summarise some of the features which make smartphones so popular with
older customers.
SUMMARISE
Analyzes conducted in the UK through 1,163 individuals between May and June this
year show that the demand for Smartphones by older people are growing and that 71%
of 55-to-75 years old are exchanging their common appliances for devices with capacity
to Applications, however, the survey points out that 20% of respondents when waking
just after 15 minutes they check their phones, and this compared to a national average of
56%. Still according to the research, Deloitte together with its team of researchers,
suggested that the group of 55 to 75 years of age superior to the media of wealth, could
become members of users with smartphones premiums due to donations made by

members of Family that exchange their smartphones with a certain frequency. (Kelion,
2017)
According to observers, the centenarians should get privileges from some of the
changes made in smartphones a long time ago, because "new smartphones have much
higher cadres, such as the view of the elderly, get worse, are more possible to look at
and have speakers. " addressed Ian Fogg of IHS Technology consultancy. They still
think that: "It can become increasingly difficult as for example to ask for a taxi in cities
without using an application.” Different types present simplified alternatives to your
utility launchers for older population, and Apple is one of the manufacturers who also
has many accessibility features built into IOS, such as " facial check that is a very
common recognition among the elderly." According to Dave Birch, from Consult
Hyperion "Older people appreciate the idea of being able to just pick up a phone and
look at it, instead of having to touch buttons to press or have to put their glasses to enter
a password."
Task 4
Currently, all Eco-Fone’s operations are carried out at the two shops in the Borough of
Richmond. The business has never operated across the border in Kingston, but
anecdotal evidence suggests that business is thriving. In order to initially answer Eco-
Fone’s question “Should I expand my business to Kingston”, you have decided to use a
‘pros and cons method’ table (see figure T4). Complete the table and briefly summarise
whether to expand to Kingston. ( NC State University, 2019)
Should we expand our business to Kingston?
Pros Score/10 Cons Score/10
Create a Central office. 8 Create a personal computer
system and hire new staff. 7
Increase the type of products,
such as laptops and tablets. 9 Higher investments in new
products. 10
Creat job opportunity. 8 Hire qualified professionals. 10
Increase the net profit 10 Tax increase 8
To sell all products only in
one store. 10 A structure that meets the
juncion of all new products. 10
To offer to customers parking
service. 10 Rent na area to transform into
parking. 5

Offer more facilities to old
customers from other regions
to have a new store in another
place.
10
It would require a large
investment - Store Rental -
Training - New products, etc.
5
Total Pros 65 Total Cons 55
Average Pros 9.30 Average Cons 7.40
Figure T4. A ‘pros
and cons method’
table for expanding to Kingston.
From the above index, several benefits will be achieved by Eco-Fone if they develop for
Kingston. A different market can be seen, and the perception of profit will occur. In
addition, Han et al. (2017) noted that the increase activities for different parts increase
the values of each system for the users. So, this business manages to make a significant
advance in the smartphone market through sales of accessories and new products.
However, several cons, according to the growth of functional work and the large capital
requirements, are presented, which may hinder the development of business growth.
However, the risk position is very small, and this company can increase its activities for
Kingston.
Task 5 – USE APPENDIX – SHOW FORMULA
If Eco-Fone does decide to expand, extended operations will require improved facilities
and, as it happens, highly-suitable new premises for retail use are available in central
Kingston. The new building is available for lease or sale but Eco-Fone already owns
(subject to repayment mortgage) the two Borough of Richmond shops and prefers to
own rather than lease. The asking price for the new building is £400,000 but this might
be negotiable closer to £350,000.
a) Calculate the monthly cost of a 15-year repayment mortgage of £350,000, where
interest is applied to the loan outstanding at the beginning of each year and the
mortgage rate is 7% per annum.
(Money Today Team, 2013)
b) Represent an appropriate graphic containing any of any of the eight logos of well-
known commercial mortgage lenders in the UK.and references.
Loan Amount 350000
Annual interest rate 0,07
Life loans (years) 15
Nr of payments per year 12
Total nr of payments
month 180
payment per month £3.145,90
payment per 15years £566.261,24

Example
1. Mortgage for Business
(NACB, 2018)
2. Fox Davidson

(Davidson, 2019)
3. Iwoca
4. Natwest