Eco-Fone SmartPhone Market Analysis and Business Expansion Plan Report

Desklib provides past papers and solved assignments for students. This report analyzes Eco-Fone's smartphone market and expansion plan.

Summative assignment
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Table of Contents
Task 1:.............................................................................................................................................3
Task 2:.............................................................................................................................................4
Task 3:.............................................................................................................................................5
Task 4:.............................................................................................................................................6
Task 5:.............................................................................................................................................8
a):.................................................................................................................................................8
b):.................................................................................................................................................9
Task 6:...........................................................................................................................................10
Task 7:...........................................................................................................................................11
Task 8:...........................................................................................................................................14
Task 9:...........................................................................................................................................15
References:....................................................................................................................................16
Appendix:......................................................................................................................................17
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Task 1:
In modern life culture, mobiles are becoming a basic need for everyone. Due to different
functions and high durability, mobiles phones are essential for each human being. The economy
of the UK is one of the richest and advanced economies of the world so there is a huge market
for mobile phones in the UK. As per statistical data, approx. 33.5m people are able to work in the
UK out of which more than 32m are employed in different sectors. Results of researches are
indicating that more than 50% of employed people are using their Smart-phones in work-related
activities (Deloitte, 2017). E-mails, voice and internet calls, calendar management are some
examples of popular activities that are performed through smartphones. Many unofficial smart-
phone applications are also available that are highly utilized by the organizations to ensure
connectivity among employees and management. Following graph is showing usage of smart-
phones for different activities:
From the above data, it is indictable that Smartphone is highly popular among the age group of
18 to 26. As smart-phones are offered with many unique functions, application of mobile phones
is not narrow to the traditional activities of calling or messaging (Deloitte, 2017). For example,
more than 35% of people are using their phones to manage E-mails. Similarly, more than 17% of
people are using smart-phones for the management of documents. These facts are enough to say
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that smart-phones are highly popular In UK and utilization of Smartphone is increasing every
year.
Task 2:
Below data is showing the penetration of phones, laptops, and tablets among adults of the UK.
Data is indicating that growth of laptop usage is limited but smartphones and tablets are showing
huge improvements. For instance, only 16% of people were utilizing tablets in 2012 which
reached to 50% in 2015 and 68 in 2017. While conclusions are provided below:
2012 2013 2014 2015 2016 2017
0
50
100
150
200
250
Smartphones
laptop
Tablets
Above graph is indicating that people are adopting mobile and tablet devices rapidly but laptops
are still highly popular. From 2012 to 2017, the market of Smart-phones has been experienced an
unbelievable growth which is still continued in 2018 also. To predict the future sales of 2019 and
2020, the use of linear forecasting model will be not suitable for a different reason. The linear
model is highly popular for the prediction of future demand through the study of two different
interlinked variables (Mathworks, 2019). As the impact of substitute or similar items is not
determinable through this model, the use of the regression model will be most appropriate in
which future demand can be evaluated through the comparison of two different dependent and
independent variables.
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Task 3:
The popularity of Smart-phones is not restricted to young age people because there are serval
trends which are proving that old-age people are adopting smart-phones very rapidly. Results of
some researches are proving that more than 68% part of old age people (age between 55 to 75
years) are adopted mobile phones for different purposes (Kelion, 2017). As modern mobile
phones are offered with many special applications, old people are accepting these devices as an
essential part of life. Following are some curial factors which are making the smart-phones
popular among old peoples of the UK.
 Big screen with sound:
Currently, trends of smart-phones are signifying that mobile companies are focused to increase
the screen size and reduce the device weight so that mobile devices can be made more useful. A
phone with a large screen helps the old people to deal with problems of eyesight. Additionally,
smart-phones are coming with more efficient loudspeakers which is necessary to handle hearing
related issues of old people.
 Easy in utilization:
As the income level of old people is good in UK and old people are adopting mobile phones
rapidly, mobile companies are offering many specific applications that are highly useful for old
people. For example, the voice recognition system is available in many phone devices which are
utilized to operate the phone through voice (Kelion, 2017). These features are highly supportive
of the old age people in day to day activities, so the adoption rate of mobile phones among old
age people is enhancing continuously.
 Innovative applications:
There are numerous Smartphone based applications which are presenting an innovative solution
to old age people for their day to day problems. For example, online doctor service can be
accessed through a Smartphone to get a doctor in an emergency. Similarly, online food delivery
or taxi booking can be made easily through mobile applications (Kelion, 2017). Due to these
innovative life supportive applications, mobiles are being popular among old people.
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Task 4:
Suitability analysis of business expansion plan
Pros Score/10 Cons Score/10
Availability of new market and
growth opportunities
8 Need for large capital
amounts and human sources
9
Availability of new customer
base
8 Problems in management 6
The increment in goodwill and
brand value
7 Reduction in customer
satisfaction due to product
quality issues
5
Availability of new financing
sources
6 Augmentation in competition 7
Augmentation of the probability
of business expansion in new
sectors
6 Legal compliance
complexity
5
Total of pros 35 Total of cons 32
Average of pros 7 Average of cons 6.4
In the above table, all positive and negative aspects of current business expansion plan have been
evaluated to find the suitability of expansion decision. Outcomes of analysis are signifying that
the expansion plan is containing several positive aspects but there are numerous negative factors
also, which are needed to be considered during the selection of the project (Mindtools, 2019).
For example, through the new business expansion, Eco-Fone can avail new markets and business
opportunities but it will come along with problems of heavy competition and managerial
practices. Here, overall results are sufficient to signify that the total of pros is 35 whereas a total
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of cons is only 32. As beneficial factors are more than negative aspects, the expansion plan is
looking suitable for the company so it is advised that Eco-Fone can expand its business.
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Task 5:
a):
Building value 400000
Amounts with company 50000
Required loan value 350000
Rate of interest 7%
Time frame of loan 15 years
Instalment ($3,145.90)
Repayment schedule
Loan
value
Loan
period Frequency Number of Instalments Amount of instatement
350000 15 Y Monthly 180 3145.90
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b):
Above companies are engaged in the banking operation so Eco-Fone can borrow money from
any of these companies to finance the building cost. It should be noted that each institution is
offering a different type of loan products with different interest rates and facilities so the
selection of lender should be made with enough research.
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Task 6:
A z test tool is a statistical tool used to analyze the difference between the two population means
whether they are same or different when the variances are known in advance and the size of the
sample is large (n>30). The Z test is more significant as compared to the student’s t-test because
z test has distinct values for each sample size, whereas the t-test has a separate sample size that’s
why t-test works more smoothly, efficiently, and effectively. Therefore many of the statistical
tests are based on the pre-known variances. While T-test is based on when the population is
unknown and the size of the sample is not large. Z-test is also known as the hypothesis test often,
null offer common view of something wile hypothesis is that the researcher believes that was the
real cause of the phenomenon. 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 (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:
 Independent data should be there.
 Data normally distributed.
 Select data randomly from the population, where every item gets an equal chance of being
selected.
 Equal sample size (Anderson, et. al., 2016).
 Size of the sample is more than 30
From the analysis of given case study,
1.41
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Task 7:
7 (1):
Result Frequency
1 15
2 9
3 16
4 5
5 9
6 6
Mean 10
7 (2):
Result Frequency
1 16
2 10
3 8
4 6
5 14
6 6
Mean 10.00
7 (3a):
Result Frequency
1 23
2 13
3 8
4 16
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