Business Expansion Feasibility Study: Eco-Fone Kingston

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REPORT FOR ECO-FONE

Report for Eco-Fone 2019
Table of Contents
Introduction..............................................................................................................................................2
1. Analysis of Issues for Eco-Fone Smartphones..................................................................................3
1.1 An Overview of the Mobile phone market in the UK......................................................................3
1.2 Forecasting the UK Adult Smartphone use.....................................................................................4
1.3 Smartphones - A potential market for older customers.................................................................6
1.4 Feasibility of Expanding business to Kingston using Pros and Constable........................................7
1.5 Costs of a New Building..................................................................................................................8
1.6 Testing the Possible Difference in Net Takings in the Two Shops.................................................10
1.7 Customer Satisfaction...................................................................................................................12
1.8 Quality Procedures.......................................................................................................................17
1.9 References....................................................................................................................................18
1.10 Conclusion..................................................................................................................................19
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Report for Eco-Fone 2019
Introduction
The given case study is related to Eco-Fone. It is the company that deals with the product
whose name is a smartphone. It is the company deals with the smartphone and its part. The
smartphone is the product which is the fastest-growing product in the market. It improved the
market by bringing the new technology in the market and also it will help in increasing the
standard of living in the market. Eco-Fone is also one of the companies among all the company
who is selling the smartphone. It is the company which is located in the United Kingdom.
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Report for Eco-Fone 2019
1. Analysis of Issues for Eco-Fone Smartphones
1.1 An Overview of the Mobile phone market in the UK
The time is continuously passing which means that new technology will be developed. New
technology helps in increasing the income of the individual which means that individual will
also increase its purchasing power. As needs will increase it will switch toward the product
which gives more satisfaction. So in the case of smartphone earlier the individual has a phone
but that is not smart and also it is of keypad but new technologies helps in advancing the
technology and bring the smartphone with the touch screen. It helps the individual to increase
their knowledge and also helps in satisfying the need. Eco-Fone is the company that studied the
technology changes and implemented in the product so that it can become popular in the
market and also create an image in the market as they are with advanced technology. New
technologies bring new ideas and also improve the skill as the smartphone reduces human work
by doing the work of human in it. Various application is introduced in the smartphone which
helps in reducing the time of the individual such as online shopping applications, social media
application so that it helps in getting connected with friends and family and much more
application (BBC, 2017).
(Deloitte, 2017)
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Report for Eco-Fone 2019
1.2 Forecasting the UK Adult Smartphone use
Year Smartphones (in %)
2012 52
2013 62
2014 70
2015 76
2016 81
2017 85
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Report for Eco-Fone 2019
2012 2013 2014 2015 2016 2017
0
10
20
30
40
50
60
70
80
90
Smartphones (in %)
Smartphones (in %)
The above diagram is a linear graph which shows the uses of the smartphone and also how the
demand is increased and also how the user is increased. The above graph is based on the data
that is provided by the report from 2012 to 2017. It shows the increment in smartphone users in
the percentage. In the year the smartphone user is just 12% which means that half of the
population is using the smartphone whereas it is increasing year by year. As the time is passing
the users are increasing at it clearly seen in the table. In the year 2017, the smartphone user is
increased to 85% which means that almost the entire population is using the smartphone, and
only those individual who cannot able to afford the smartphone are not using it (BBC, 2017).
The linear graph is not been suitable for some conditions: -
1. The analysis is based on past information.
2. It will not able to provide a perfect analysis and assumption.
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Report for Eco-Fone 2019
1.3 Smartphones - A potential market for older customers
The report is provided by the Deloitte. The report shows that the crass of the smartphone in the
individual is increasing every day. As per the survey every family contains at least more than
one smartphone and that too is also with advanced technology. An individual knows about the
self-potential which means that the smartphone is purchased by the individual based on the
income and its potential to buy the smartphone (Deloitte, 2017).
The current situation in the society is that individually started comparing with others based on
the smartphone that they have. As the rich individual will able to buy the smartphone which
contains advanced technology and it is launched very recently. After analysis, it was founded
that more than 70% of the individual of the age group from 55 to 75 are switched towards the
smartphone and it will tend to increase in the near future. New technology also helped old age
individual to develop themselves by using the new technology and smartphone. The above-
discussed figures are based on the survey and the views of 1163 different categories individual
so that better analysis and understanding can be made. The report also shows that on an
average after every 15 minutes the individual usually checks its phone so that if any activity is
going can able to check (BBC, 2017).
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Report for Eco-Fone 2019
1.4 Feasibility of Expanding business to Kingston using Pros and Constable
The above solution helps in deciding whether the company should expand its business or not.
As the decision is based on the pros and cons. The solution is will provide to think the business
expansion to Kingston. All the pros and cons should be analyzed before deciding the expansion
plan. It is the technique which is called balance scorecard. The analysis is usually based on
various points so that a perfect decision can be established. As per the solution the expansion
can be made as pros and more than cons which means that expansion will be successful. So the
expansion can be done in the Kingston (Deloitte, 2017).
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Report for Eco-Fone 2019
1.5 Costs of a New Building
A
The technology helps in the development and also the expansion of the business. It means for
expansion a new place for business is also required. The new building is to require by the Eco-
Fone so that the expansion can be possible and for this, the company requires the fund. As the
loan has been taken by the company so that it easy to purchase the building and also the load of
the fund will not take by the company. After calculation of loan for £350,000 into 15 equal
installments and the amount of each equal installment will be £3,146 (Deloitte, 2017).
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Report for Eco-Fone 2019
B
Given below are some financial institutes that provide the loan and advancement facility.
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HALIFAX
ATWEST
Lloyds Bank
Principality
Building
Society
Godiva
Mortgage
Barclays Bank
HSBC Bank
TESCO Bank

Report for Eco-Fone 2019
1.6 Testing the Possible Difference in Net Takings in the Two Shops
Z-test is known as the test which is mostly used by the company to find out the difference
between two shops so that it helps in preparing of the report and also better decision can be
taken after analyzing the report. It also helps in taking the decision that is based on the
expansion plan of the two shops (Bialek, and Pennycook, 2018).
It is very useful in finding the total taking by the company so that it better to find out the
difference in both the shops. It also helps in analyzing the net profit earned by the shop during
the period.
It is the test which is mostly used to find out the population mean by comparing the
information with other company.
Some assumptions: -
1. The population size should be more than 30.
2. Resources should be selected on a random basis.
3. Collection of data should be similar.
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Report for Eco-Fone 2019
1.41, is the result from the given data.
= 0.05>H0<0.05 = 0.05<H1>0.05 (alternative)
It shows that there is no relationship exists
between the information of the two shops
(Bialek, and Pennycook, 2018).
It helps in finding the relationship and it
shows the relationship between the two
shops (Okpotse, and Yousefi, 2018).
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