RUNNING HEAD: REPORT FOR ECO-FONE 2019

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REPORT FOR ECO-FONE

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 Report for Eco-Fone 2019

Introduction

This report presents a brief overview and understandings about the company Eco-Fone

which sells samrtphones and accessories. The Eco-Fone has two shops which are located in

Putney and the other in Richmond. The shops were established in 2014 as well as the company

is continued to make immense growth and profit since it has been established. Eco-Fone is now

intending to increase the number of its customers as the organisation has gained a significant

profit growth. The company is recognised as highest among the customers. It has noticed the

increase in number of customers of the Eco-Fone. This report aims to incorporate number of

tasks related to the Eco-fone Corporation which includes a detailed concern related to its

products, customer for expansion.

1. Analysis of Issues for Eco-Fone Smartphones

1.1 An Overview of the Mobile phone market in the UK

According to the information about UK’s mobile market it is examined that most of the

people motivated towards Eco-Fone Smartphones due to their durability products. The

customers commonly prefer smartphones with advanced innovations as well as also want to

avoid regular update scenarios on Smartphone (Alshurideh, 2016). The United Kingdom

Smartphone manufacturers are developing such phones with lots of benefits, and this

specialised product targets every age group from elder to old people (Faith, 2018). According

to the Deloitte report Smartphone usage is going to becoming very enticing to use. It is the

reason that production companies of Smartphone are continuously increasing prices

(Gathergood, Guttman-Kenney and Hunt, 2018). According to the report the use of

Smartphone is categorised according to the age group such as 65;-75 (12%), 55-64 (16%), 45-

54 (30%), 35-44 (47%), 25-34 (55%), 16-24 (56%). From this statistical data it is analysed that

the use is highest among the people of age group 16-24 in the United Kingdom (Deloitte

Report, 2017). According to the global mobile survey of 2017 the location or time when people
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 Report for Eco-Fone 2019

use too much mobile phone during the period 2016-2017 includes; all the time (40%), in

evening (21%), with family (34%), at weekends (16%), with friends (15%), at work and school

(13%) (Deloitte Report, 2017).

Currently the UK workforce includes 33.5 million people from which 32 million people

are in work so, in the mid of 2017 the use of mobile phone by workers was 44% for email,

34% for calls and 23% calendar management. The figure below shows Smartphone usage by

UK people between 2016-2017 because, all the Smartphone owners in the United kingdom are

working people of age 18-75 as well as mobile phone applications also used by the business

users and billions of other people also (Deloitte Report, 2017).

Figure 1: work-related activities in the period 2016-17. Source:

https://www.assignmentace.co.uk/uploads/order_file/deloitte-global-mobile-consumer-survey-2017_uk-cut.pdf

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1.2 Forecasting the UK Adult Smartphone use

The line chart is used in to forecast the use of samrtphones in 2018-2019 likewise,

2012-2017. The linear method is not suitable to forecast because, the data will need to run in

distinct variables. Linear forecasting model is a short-term solution moreover; the forecasting

according to the time series non-linear model is solely based on historical pattern or record. A

straight line in linear model increases or decreases goes up or down. The another main reason

for not to use linear forecasting model is, it is quantitative forecasting technique whereas, non-

linear is solely based on the opinion, past trends, use of product over the past years and past

consumer behaviours (Deloitte Report, 2017).

Therefore, an accurate forecasting model to predict the future values include “linear

regression model. This model is appropriate to cope with the uncertainty of future, and the use

of smartphone by UK people. A new time series linear regression forecasting model is

forecasting the samrtphone use in 2018-2019 as shown in figure below.

1.2.1. The UK adult Smartphone use in the period 2012-2017

use of Smartphone in percentage among

UK adults during 2012-2017
100%

80%

60%
use of Smartphone in
40% percentage among UK
adults during 2012-2017
20%

0%
2012 2013 2014 2015 2016 2017

Figure 2: Line chart indicating the Smartphone usage by UK adult

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1.2.2. The new model and use it to forecast Smartphone use in 2018 and 2019.

Smartphone usage forecasting for the year

2018-2019 among UK people
86%
84%
82%
80%
78%
Smartphone usage
76% forecasting for the year
74% 2018-2019 among UK people

72%
70%
2015 2016-2017 2018 2019
(adults among
age of18-75)

Figure 3: forecast Smartphone use in 2018 and 2019 by using Time series non-linear forecasting model

1.3Smartphones - A potential market for older customers

According to the BBC news article this report interprets better understanding of the

Smartphone use and market. According to this article it is analysed that the use of Smartphone

has increased among older people (Kadylak et al., 2018). It indicates that 71% of age 55-75

years old people are continuously using applications with Smartphone (Kelion, 2017). The

research by Leo Kelion article also indicates that this age group has seen a faster adoption rate

over past five years.

These features include modern bigger screens so older people can easily use it because

they usually have their eyesight weak. In addition to this, another feature include louder

speaker. The loudspeaker with soft loud voice provides a benefit of amplified voice to older

people (Lai et al., 2019). According to Lai et al. (2019), facial recognition is also the most

preferable feature of Smartphone which by older people. The research of Petrovčič et al.

(2018), suggests that older people do not like to press buttons so, the idea of just pick and hold

Smartphone attracts people, by putting their hand on the mobile phone glass they can unlock it.

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Furthermore, they also do not need to type any password. This quality of Smartphone is the

reason which makes Smartphone so popular among older people.

1.4Feasibility of Expanding business to Kingston using Pros and Cons table

According to the case study of Eco-Fone’s operations it is analysed that all the

operations of this company currently operates only at the two shops, and it has never expanded

its business into any other area of the United Kingdom therefore, feasibility of expanding

business to UK Kingston can give Eco-Fone’s a wide range of benefits in terms of accessing

and increasing growth, revenues and capital (Whitehead and Seaton, 2016). Pros and cons table

below is highlighting that whether Eco-Fone’s should expand its business in Kingston or not.

Should we expand our business to Kingston?

Pros Score/10 Cons Score
Eco-Fone can reach to new customers 9 Shortage of cash /10
-7
Can generate more profit 8 Loss of control -8
Can reduce external risk in business (competition) 9 Increase labour cost -7
Can influence the market of Smartphone 6
Can increase products value 7
Increase Financial output 8

Total Pros 47 Total Cons 22

Average Pros 7.833 Average Cons 3.66
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Figure 4: Expanding business to Kingston using Pros and Cons table

From above it is analysed that Eco-Fone should expand its business to Kingston as

there are lots of pros/benefits which the company would get by growing its operations at this

location. According to the study of Wishart (2018), expansion of business allows companies to

gain a competitive advantage which, and it is one of the most excellent advantages that would

obtain by Eco-Fone.

1.5Costs of a New Building

This section of the report calculates the monthly cost of 15-year repayment mortgage of

£350,000 with 7% mortgage rate per year. The formula below is used to determine the monthly
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fees. The formula represents the value of P as a mortgage value, r is the mortgage rate where p

= £350,000 and r = 0.7 which is equals to 7% so, according to the formula the n will be 15*12=

180 period.

(a) M= P*r (1+r) 2 / (1+r) 2 -1

N= 15*12

N = 180 periods

By using excel the monthly cost repayment founded is £ 24500.13.

1.5.1. Appropriate graphic containing eight logos of well-known commercial

mortgage in the UK

In the United Kingdom the top eight commercial mortgage lenders are HSBC,

Barclays, Natwest, RBS, Lloyds Bank, TSB, Clydesdale Bank and Bank of Scotland. Below is

the chart which represents the top eight commercial mortgages across the UK.

1.6. Testing the Possible Difference in Net Takings in the Two Shops
Figure 5: Logo of the top eight commercial mortgages

To test that whether there is a vast difference between the two shops the two-sample

test is conducted with the following information for example, the sample of 40 net daily taking

of first shop has £100 (mean ) with S.D = £20 whereas, the second shop has a mean of £90

with S.D = £40. It indicates that the first shop has higher undertaking than the second one.

Ho: The difference between the net takings of the two shops is not present.

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Alternative Hypothesis: A substantial difference is present in net taking between two

shops of Eco-Fone.

Test statistic:

t=100−90/√202/ 40+402/40

t = 1.414

P-value = 2 * (t > 1.414) = > 2*(1-0.9193)

= 2*0.0807

= 0.1614

The null hypothesis will reject if the value of P is less or equals to the significance level

since the value of p is 0.1614 which is higher than 0.05 therefore, we cannot reject null

hypothesis. The first shop has higher undertaking by £10 as compare to the second shop.

1.7Customer Satisfaction

From the results of the customer satisfaction it is analysed that average of the last

customer who purchased service from Eco-Fone is 2.95 which means that the average is

between 3 to 6 months. The average duration is therefore, 2.89 which indicate that customers

had purchased products for an average period between 1-3 years. According to customer

satisfaction support the average of fair is 1.98 with mean of 2.5 (good). The overall satisfaction

score is 2.51 which indicates that customers have neutral satisfaction with Eco-Fone , and not

any item of the company rated poorly.

1.8 Quality Procedures

Poisson distribution is appropriate in this case because; it is a helpful tool to predict the

events before it happens, and the events which already had occurred. It is good to determine the

average of two returned with an error of each month (Wishart, 2018). According to the study of

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Alshurideh (2016), quality assurance is crucial step before passing any operation to the

completion or before using any thing for instance, in the case of Eco-Fone poison distribution

method is suitable to determine the error of two invoices which has returned out of 10,000.

Poisson distribution method is also known as probability distribution method for discrete data

therefore, it will be efficient to determine the probability of more than three invoices for the

given months which should be less than fifteen percent. By the method Eco-Fone can

understand the probability of events (three invoices) in a fix interval of time.

For probability error

Pr = 0.002

Using poison distribution method it is analysed that the probability of more than three

invoices is 0.0028 however, the probability of getting more than three errors is 15% according

which it has proved that quality procedures have been meet.

1.9 Conclusions &Important Findings

This report concludes that, Eco-Fone can expand its business to the Kingston market as

Smartphone usage is increasing continuously across the United Kingdom moreover, the report

had defined that older people are using Smartphones in a large proportion likewise elders. It

also defines that people at work also use Smartphones in a heavy proportion. The diagrams

which include line chart and bar chart of this report indicating the past usage of mobile phones

by elder people of the UK as well the forecasting for the year 2018-2019.
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 Report for Eco-Fone 2019

1.9.1. Recommendations from important findings and conclusion

From the pros and cons table on the suggestion to expand business in Kingston United

Kingdom it is concluded that, Eco-Fone should increase its business growth to several other

segments or markets likewise Kingston because, it will help the company to gain a competitive

edge. The rivalry in the UK’s mobile phone industry is already high due to existing

competitors like Tesco mobile, Vodafone, BT mobile and many others therefore to cope with

the cons/risks due of business expansion Eco-Fone should adopt project management

approach. Project management will prove as most beneficial approach for Eco-Fone. It will

help the company to establish good budget planning for excellent financial output.

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Report for Eco-Fone 2019

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