Business Analysis Report: Eco-Fone's Expansion into Kingston Market

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1

Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
Task 2...............................................................................................................................................5
Task 3...............................................................................................................................................7
Task 4...............................................................................................................................................8
Task 5.............................................................................................................................................10
Task 6.............................................................................................................................................14
Task 7.............................................................................................................................................15
Task 8.............................................................................................................................................18
Task 9.............................................................................................................................................19
Task 10...........................................................................................................................................20
Appendices....................................................................................................................................21
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Introduction
In order to ensure a business’s success and its effectiveness, it is necessary for all business to
expand their operations, which can be done through entrance into new markets. In the current
scenario, Eco-Fone, a business that sells smart phones and its accessories from the two shops that
it has in Richmond as well as Putney is looking forward for expansion to the Kingston market.
This report will be evaluating the UK smartphone market in detail, the various ways in which the
people of the country are using smartphones while considering the factors necessary to be
evaluated before Eco-Fone enters the Kingston market.
3

Task 1
In order to find out the uses and popularity of the UK market in terms of sale of smartphones, it
can be seen that various researches have been conducted. However, the research by Deloitte
shows a comprehensive view of the market. The research shows that among the 32 million
employees of the country, almost 50% of them are presently using smartphones for addressing
their workplace troubles (Deloitte.co.uk, 2019). On the other hand, the 44% of this 32 million
use them for mail sending and receiving, 34% use for video calling or conferencing while 23%
of them are using to manage their calendars (Deloitte.co.uk, 2019). The research also shows that
43% of this workforce uses WhatsApp and other messaging applications (Deloitte.co.uk, 2019).
In this context, Kusset al. (2018) added that there has been a boom in the company’s sale of
smartphones and their accessories among elderly citizens ranging among 55 to 75. The sale of
smartphones also shows a sharp increase in the country since the year 2012 while forecasts
indicate their further improvement. The citizens of the country are also finding it easy to move
around due to smartphones (Anshariet al., 2016).
4

Task 2
The research that Deloitte conducted on the UK smartphone market has been of great help. The
following table has been prepared through the means of the information that has been derived
from the research that Deloitte conducted and forecasts have been made for the next two years -
Figure 1: Compare and contrast of uses of smartphones, tablets and PCs in the UK
smartphone industry
(Source: Deloitte.co.uk, 2019)
As per the above table, the forecasts have been made for 2018 and 2019 through the
“FORECAST” function and has been presented below -
5
20%
40%
60%
80%
100%
120%

(Source: Created by the learner)
In order to forecast the market penetration during both 2018 and 2019, the appropriate method
that can be used in the extended forecast method. According to Zhaoet al. (2016), it is beneficial
for companies or individuals to use the extended forecast method while the variables are either
progressive in nature or are degressive. The data above highlights that the variables are
inconsistent in nature since the utilization of PCs show improvements from 2012 to 2013 and
subsequently a decrease from 2013 to 2014. Because of this inconsistency, moving average has
been applied for the forecast. The method of moving average proves beneficial by nature when
inconsistency can be seen among the variables(Xu et al., 2017).
6
2012 2013 2014 2015 2016 2017 2018 2019
0%
Values Forecast
Lower Confidence Bound Upper Confidence Bound

Task 3
The research on the increase in the fame or popularity of smartphones among aged customers
conducted by the BBC helps in understanding how smartphones help elderly people in the
present scenario. According to BBC News (2019), an approximate of 70% of individuals that
belong to an age group amid 55 to 75 is smartphone users and use diverse types of applications
for smartphones as well (BBC News, 2019). The research involved 1163 individuals among
whom most of them are smartphone users because of recommendations from the members of
their family. It can be seen that the life of elderly citizens have become easy because of
smartphones. The following are the reasons for which elderly citizens are smartphone users in
the current scenarios, as found from the survey -
 Booking cabs for elderly people have become easier.
 People with poor eyesight can be going through videos, movies and news on their
phones.
 Parking tickets of these people can be paid through phones.
 The features such as fingerprint unlock, face detectionand others make it easier for
elderly people to operate.
 Improved functionality, smooth operating systems and such features are also helpful for
living the daily lives of elderly citizens.
7

Task 4
To derive whether Eco-Fone can be improving its performance by expanding its activities to
Kingston or not, the formulation of a pros and cons table can be proving beneficial. Through the
allocation of weights to individual factors, the company can be evaluating its pros and cons for
entrance into the Kingston market from the pros and cons table. The following is the pros and
cons table created for Eco-Fone -
Should Eco-Fone consider expanding to Kingston?
Pros / Advantages Score on
10
Cons / Disadvantages Score
on 10
Meeting market demand 8 Widening of turnover among
staff
8
Enhancing the resources of the business 9 Distribution of control 5
Accomplishing a stronger base of
customers
9 Expenses spent for logistics
related purposes
5
Effect on the market prices of the area 7 Funds externally available 7
Improvement in brand recognition as
well as brand name
8 Lack of enough cash or funds 7
Excess sales made or turnover achieved 9
Competitive rivalry benefits 6.5
Total of the pros 41 Total of the cons 24
Average Pros 8.071 Average Cons 6.4
Table 3: Table showing the potential cons as well as cons for Eco-Fone to expand
operations to Kingston
(Source: Created by the learner)
By the evaluation of the table presented above, one can be interpreting that there are both
advantages and disadvantages for Eco-Fone to expand its operations to Kingston. The average
pros of this expansion are 8.071 while the average cons are 6.4. Thus, it can be determined that
the advantages that Eco-Fone will be having for entering the Kingston market is larger than the
8

average number of disadvantages it has. The potential threats or disadvantages that the company
can be having for entering the market can be eradicated and dealt with through the means of
effective strategies and rational decisions.
9

Task 5
a. Calculation of mortgage repayment for 15 years
Lo
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a
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ou
nt
In
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Loa
n
ter
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Pay
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Loan
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start
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Opti
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extr
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Sch
edu
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pay
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Sched
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numb
er of
paym
ents
Actu
al
num
ber
of
paym
ents
Years
saved
off
origin
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term
Total
early
pay
men
ts
To
tal
int
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es
t
V
A
L
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LO
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(rate
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r,pv,f
v,typ
e)
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07 15 12
2/18
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9
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$17,
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$2
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,9
22
.6
7
b. Represent an appropriate graphic containing any of any of the eight logos of well-known
commercial mortgage lenders in the UK.
10

Companies Logos
1. Barclays
2. Royal Bank of Scotland
(RBS)
3. HSBC
4. Lloyds
11

5. Santander
6.Nationwide
7. Accord mortgages
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