Feasibility Study: Ecofone's Proposed New Store in Kingston, UK

Desklib provides past papers and solved assignments for students. This report analyzes Ecofone's potential expansion into Kingston.

Summative assignment
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Table of Contents
Analysis of case study on eco fone..................................................................................................3
Task 1: the overview of the Smartphone market in the UK............................................................4
Task 2: UK adult Smartphone use...................................................................................................6
Task 3: use of Smartphone in older peoples....................................................................................7
Task 4: pros and cons of opening a new store in Kingston.............................................................8
Task 5: Calculation of mortgage on new store...............................................................................9
Task 6: net taking from two shops.................................................................................................12
Task 7: customer satisfaction.........................................................................................................13
Task 8: procedure of quality check................................................................................................16
Task 9: References.........................................................................................................................17
Task 10: conclusion.......................................................................................................................18
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Analysis of case study on eco fone
Eco fone is a Smartphone seller company in the UK, eco fone have two stores currently in
Putney and another in Richmond. Eco fone only sell smartphones on these two locations. The
smartphone market is continuously growing from last decade due to new technology come every
day and know peoples can easily use this Smartphone in their day to day life. The smartphone
market is continuously growing and due to this growth, many companies expand their business
and eco fone is also trying to open a new store in a new location. In this entire study, it will
discuss whether it is beneficial for eco fone to expand their business in a new location and if it is
than eco fone need to do the feasibility study so that they can easily predict future expenses and
earnings.
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Task 1: the overview of the Smartphone market in the UK
The smartphone market is changing every year with advanced technology that will make peoples
lives more comfortable. Most of the peoples using Smartphone in their life from communication
to navigation it’s completely changing social life of peoples; know in next decade probably it
also change the working life of employees. The smartphone market is successful in global level
at least 1.5 billion peoples purchase Smartphone's every year that similar trend also followed in
the UK but still the majority of peoples in the world don't have Smartphone so this is an
opportunity for companies to grab market and earn revenue from this growing market.
In UK Smartphone market is continuously growing, peoples use Smartphone in their working
life also, in the UK around 33.5 peoples leave in which 32 million peoples work so there is a
large market for sellers.
email voice calender m viewing doc
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45%
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Most of the peoples in the UK use Smartphone for sending emails that are around 44 percentage
according to Deloitte and then second peoples use Smartphone in voice calling that is around 34
percent and the third most is calendar management that is around 23 percent so from this date it
can easily conclude that there is a broad market for Smartphone in the UK with increasing
workforce (Business today. 2013). There is a trend in Smartphone usage also like – peoples use
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more those applications which are easy to use as compared to those which are hard to use. In the
workforce, most of the peoples use Smartphone to submit time sheet that is around five percent
of the total workforce so there is a vast gap between usages of mobiles than second peoples use
most to submit expanse. Most of the peoples use Smartphone in their working life to save time
for other activities like – a person can easily prepare timesheet and expenses sheet while in a car
so this save their time for other important activities.
Those peoples who work in sales or retail job they need a device to control and save all the work
instant so they use Smartphone more than the person who works on the desk because it's not
possible for them to carry a PC or laptop.
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Task 2: UK adult Smartphone use
If a person is once used Smartphone than it's quite difficult for him to get rid of Smartphone,
every person needs new technology to use so peoples adapt advance technology and left old
technology (Deloitte. 2017.). Most adults use that Smartphone which is providing more
application support than normal Smartphone.
smartphone TABLET laptop
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2018
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According to the research of Deloitte on the last five years from 2012 to 2107; there is
forecasting about the use of the smartphone in 2018 and 2019.
Linear regression is a method of forecasting in which past data take into account as a tool to
forecast future expectation. This tool is mostly used as a quantitative tool to forecast about future
and this tool is used when prices are overextended.
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Task 3: use of Smartphone in older peoples
Smartphone sales are continuously increased among older consumers. According to market
research, 71 percent of people are between the ages of 55 to 75 uses a smartphone. The older age
is faster in the adoption of Smartphone than any other age group in the UK. This entire study of
BBC is based on 1163 peoples of all age group in the UK (Kelion, 2017). The use of Smartphone
is increasing among older peoples due to their higher wealth as compared to any other group. It's
obvious when the wealth of a person increase than definitely, they go towards luxurious goods.
Most of older peoples use Smartphone given by their Childs. Online services like – online
payments and online shopping help in increasing the use of Smartphone's because smartphones
make life easy in social life. Old peoples are more interested in Smartphone’s due to enhancing
technology like – big screens which provide better quality and display, face recognition this help
older peoples in security and easy to use so older peoples are more attracted towards new
technology than any other group of peoples. The software process also becomes easy to use in
these days, this also helps older peoples because they can easily understand this software's and
easily run them. Overall older peoples use smartphones a tool for entertainment and for
communication.
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Task 4: pros and cons of opening a new store in Kingston
Pros and cons of opening a new store in Kingston
Pros Score/10 Cons Score/10
Revenue Increases 9 Require new resources 9
Goodwill of brand increases 8 Chances of failure 5
Increase the area of operation 5 Limited Reach 6
Total sales increases 9 Quality issue 7
Increase employees strength 7
Total score 38 27
Smartphone market is on boom so it's a better strategy to a new store in a new location but there
are always consequences behind everything like – in this case, if eco fone is failed to capture
market over their than their brand value and goodwill both decreases sharply so it's a risky but on
the other hand, if store is running successfully than chain of eco fone increases with brand value
also increases. It's always a risky and critical task to open a new store in any new location but
there is a possibility in this case because eco fone run two successful stores so might be their
third store also runs successfully. In business risk always pay more so the risk is a part of any
business so it's better for eco fone to launch a new store in Kingston.
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Task 5: Calculation of mortgage on new store
Loan amount 350000
Years 15 year
Rate of interest 7%
The monthly installment on a mortgage is approximately 3146 euro.
 Lloyds bank: Lloyds bank is a Britain origin company which is founded in 1765 in
Birmingham. Lloyds bank is building their empire in the 19th and 20th century with the
help from smaller companies. Lloyds bank merges with many small financial institutions
and banks to build a big empire.
 Barclays: Barclays is a multinational company located in Britain and headquarters
located in London. Barclays is a financial services company which provides services such
as personal banking, wealth management, corporate banking, and investment
management. Barclays established in 1690 in London.
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 Santander bank: Santander is a US based bank which provides financial services across
the world. Santander has 650 retail banking offices across the world and provides
financial services such as mortgages, credit card, and cash management.
 TSB bank:
 One saving bank:
 The Nottingham building society
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Task 6: net taking from two shops
Z test is a mathematical tool which is helpful in the determination of whether two population is
the same or different when their variance is known and their size is large than usual. A standard
variation is an effective tool used to perform accurate z test. Z test takes a minimum of 30
samples to provide results or maybe it larger than 30. Z test is a critical process to calculate.
A null hypothesis is a useful tool in z-test and this will be completed in a significant manner
with assumption required from 0.05>HO<0.05
Particular Amount
Sample size 40 40
Standard deviation £20 £40
Mean £100 £90
Formula
The result of the z-test calculation is 1.41
Null hypothesis
A null hypothesis is a tool of comparing performance with the hypothesis; null hypothesis is a
position given to some set of things which is a company never achieves (Pararai et. al., 2015).
It’s a position which a company never achieve but a company always set higher obligations or
priority for them.
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