Eco-Fone Smartphones: A Business Development Report

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

Summative Assessment 2019
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Table of Contents
Introduction:................................................................................................................................................3
Task 1..........................................................................................................................................................4
Task 2..........................................................................................................................................................5
Task 3..........................................................................................................................................................6
Task 4..........................................................................................................................................................7
Task 5..........................................................................................................................................................9
Task 6........................................................................................................................................................12
Task 7........................................................................................................................................................14
Task 8........................................................................................................................................................22
Task 9........................................................................................................................................................23
Task 10......................................................................................................................................................25
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Introduction:
In this report, it has been discussed about the products of Eco-Fone smartphones. The Eco-fone
is in the production line of manufacturing smartphones and accessories. This organization
increases its profitability ratio every year since it has been set up. Under this, it has been
discussed about the Z test, how it will helpful for the Eco-fone organization and the quality of
their products. In this section of Eco-fone organization, it will discuss the organization that it will
spread across the Kingston or not. It adopts a systematic way of business doing to manage
properly and effectively.
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Task 1
The Population of workers in UK is nearly about 33.5 million out of which about 32 million
people are found engaged in their work properly. According to the Research, it has been found
that nearly about half or just more than half of the workers use the smartphones for the purpose
of business activity that is related to the work although, the population should be higher than it is
now (Deloitte, 2015). The optimization of the smartphones till the mid of 2017, is done by the
usage of such applications namely - email (43 percent), calendar management (22 percent) and
voice calls (35 percent). Most of the workers use these applications as these applications are
easier to use. The applications that are difficult to use such as reporting systems and legacy
information are probably have lower usage among the workers. Also some unofficial smartphone
applications such as messaging, GPS, mobile browser and snap applications are used to enhance
the usage of smartphone and also it has been found that about 43 percent workers use Whatsapp
at least once a day. Smartphones do help the workers to provide the contextual information on a
timely basis and become the ideal information provider for them. They made the habit of using
the smartphones regularly instead of tablets or personal computers as PC’s and tablets are
become overkilling thing for them. Work related activities like email, making standard calls,
calendar management; documents viewing etc. are declined from the year 2016 to 2017.
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Task 2
Year
In %
Tablets
Laptop
s 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
5

2012 2013 2014 2015 2016 2017
0
50
100
150
200
250
Smartphones
laptop
Tablets
Task 3
According to the report of the market, it has been found that the sales of smartphones are
increasing with older customers in the UK (Belair, 2015). Also it has been found that
smartphones are used mostly by the younger generation people as compare to the older age
people. For example, about 20% people said that they continuously check their cell phone in
every 15 minutes as compare to the national average of 57%. Facebook is installed in the
smartphones of about 57% people out of which 71% people are adults. Deloitte suggested that
people age between 55 to 75 years should buy the premium quality handsets as company
provides high quality services to the customers like making payments with the help of cell
phones and booking a taxi from phones. Old phones has small screen so the people need to face
some problem in viewing but now the screen of the newly coming smartphones are big so, older
people are not facing problems regarding the view and also new smartphones has a louder
speaker than older ones. Another feature that was added to the Apple and Samsung’s latest
smartphone would attract the older customers to buy these phones (Kibona, and Mgaya, 2015).
Fingerprint and facial recognition feature is also very attractive towards the older generation
people which force the people to buy the smartphones. Earlier, people face some problem
regarding picking up the phone by pressing the keys but now phone can easily be picked by just
swiping the screen.
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Task 4
Pros Score/10 Cons Score/10
Increase in sales 8 Increase in
competition
7
Increase in customers 9 Problem in
management
6
Expansion of business 9 Rise in Infrastructure
expenses
7
Different varieties of
product
8 Lack of understanding 6
Knowledge of other
market
9 Handling the behavior
of customers
8
Total pros 43 Total cons 34
Average pros 8.6 Average cons 6.8
A ‘pros and cons method’ table for expanding to Kingston.
From the above pros and cons method table it has been understood that Eco-Fone’s company
should expand its business to Kingston as there are many benefits of expanding the business like
different varieties of products come into existence according to the need of customers of
Kingston. Also there should be increase in customers as company is expanding its business in
Kingston so the customers of that country also engage in the business. Company may grow fast
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as people taking part and helps the company to make profit. Sometimes it is not easy to handle
the behavior of the customers of other country and also to understand the language of the
persons.
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Task 5
a)
Details
Amount
s
Loan amount 350000
Loan repayment
duration 15 years
Rate of Interest 7%
Monthly Installment 2041.67
On the above calculation, the monthly installment of Eco-Fone is 2041.67 which should be
payable up to 15 years at the rate of 7% per annum continuously at the beginning of every year.
Interest rate is applicable on the outstanding balance of loan. As the company is making profits
every year and it is increasing so, this installment amount is payable by the company. With the
help of this, Eco-fone can easily purchase the building. Price demanded by the owner of the
building was £400,000 but the eco-fone bargained it and comes down the price up to £350,000.
If company wants to expand the business then it requires the better facilities for managing the
business and doing well in the market competition.
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b)
10

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Task 6
Z text is a statistical tool used to test whether the two population mean are the same or different
when the variances are pre-known and the size of the sample is large ( n>30). It is the
comparison of two different groups of samples, taken from one population with known variance.
The z test is more significant than the student's t-test because Z test has separate critical values
for each and every sample size while the T-test has separate critical values for each sample sizes
that's why Z-test is more smoothly or conveniently. Therefore many statistical tests worked on a
large sample size with known variance while the T-test used if the population variance is
unknown and the size of the sample is not large (Sharpe, 2015). Z test is also known as a
hypothesis test. A null hypothesis (HO) test is that test which the person who research try to
nullify the result. It comes between -0.5>n<0.5. Oftenly, null offer common view of something
wile hypothesis is that the researcher believes that was the really cause of phenomenon
(Anderson, et., al., 2016).
There are many types of test that are used in statistics. The one test is z used in the following
conditions:
 The sample size is more than 30.
 Data normally distributed.
 Select data randomly from the population, where every item gets an equal chance of
being selected.
 The sample size is equal.
 Data should be independent.
From the analysis of given case study,
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