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Reasoning of the Issues Relating to Eco-Fone Smartphones

The company Eco-Fone Smartphones sells smartphones and accessories from two shops, one in Putney and one in Richmond. Eco-Fone does not currently sell laptops or tablets. Business has fared well since it set up the shops in 2014. Indeed, it has seen a steady increase in net profits every year since start up. Recently it has noticed various trends among their customers.

One trend seems to be an increase in sales among older customers, some of whom are buying a smartphone for the first time. Another seems to be a possible significant difference in net takings from the two shops.

Accordingly, as a work placement from the University of Roehampton, you have been set a number of tasks, the results of which should be presented in report format for Eco-Fone (word length 2000, excluding graphs/figures/references) and written in English.

(a)   You have been asked to write a brief overview of the mobile phone market in the UK. Specifically, Eco-Fone would like to know summary statistics with respect to work-related activities in the period 2016-17.

Prepare your one-paragraph overview based on information from Deloitte which can be found on page 19 and data in figure 6, page 20 at:  and on Moodle.

(b) Based on the most recent data in Figure 6, include in your report your own mixed bar chart for 2016 (green) and 2017 (blue) for only the top FOUR activities. Include the data used in your appendix

Using an EXCEL spreadsheet, produce an appropriate line chart based on data contained in figure 3, page 13 of the Deloitte Report to represent the UK adult smartphone use in the period 2012-2017. Use your line chart to forecast similar use in 2018 and 2019. Show your workings.

Explain briefly why a linear forecast would not work well in this case.

Which forecast model would work well? Show the new model and use it to  forecast smartphone use in 2018 and 2019.

(You must show how you get the forecasts for 2018 and 2019 and include the data used to generate the charts in your appendix )

Having gained a better understanding of the smartphone market, you decide to start analysing a perceived increase in smartphone sales by older customers based on a BBC news article available at: Identify and summarise some of the features which make smartphones so popular with older customers.

Currently, all of Eco-Fone’s operations are carried out at the two shops in the Borough of Richmond. The business has never operated across the border in Kingston but anecdotal evidence suggests that business is thriving. In order to initially answer Eco-Fone’s question “Should we expand our business to Kingston”, you have decided to use a ‘pros and cons method’ table (see figure T4). Complete the table and briefly summarise whether or not Eco Fone should expand its business to Kingston.

An Overview of the Mobile phone market in the UK

If Eco-Fone does decide to expand, extended operations will require improved facilities and, as it happens, highly-suitable new premises for retail use are available in central Kingston. The new building is available for lease or sale but Eco-Fone already owns (subject to repayment mortgage) the two Borough of Richmond shops and prefers to own rather than lease. The asking price for the new building is £400,000 but this might be negotiable closer to £350,000.

a) Calculate the monthly cost of a 15-year repayment mortgage of £350,000, where interest is applied to the loan outstanding at the beginning of each year and the mortgage rate is 7% per annum. Show your Excel formula in your report Appendix.

b) Represent an appropriate graphic containing any of the eight logos of well-known commercial mortgage lenders in the UK.

Eco-Fone’s two retail shops offer discounted mobile phones and accessories. Both shops have been running for several months and Eco-Fone now wants to compare the net taking from both shops. A sample of 40 net daily takings from the first shop has a mean £100 and a standard deviation of £20. A sample of 40 net daily takings from the second shop has a mean of £90 and a standard deviation of £40.

Are the two shops’ net takings the same? Using the 5% level of significance, explain your findings.

Each year Eco-Fone has regularly processed customer questionnaires in the form of hard-copy forms filled out both in the shops and as email attachments. The typical format of the questionnaire is shown in figure T7a.

The latest results from these questionnaires are contained in the file Excel File Task 7 ( on Moodle) .

Use Excel to calculate average values for questions 1-6 and briefly summarise your findings in your report.

The accounts department at Eco-Fone sends out about 10,000 invoices a month and has an average of two returned with an error per month? Quality assurance procedures require that the probability that more than three invoices will be returned in a given month should be less than fifteen per cent.

Explain why a Poisson distribution is appropriate in this case and advise Eco-Fone if quality procedures have been met. Show all your workings

Prepare a list of ten to fifteen references that you have used as sources for your report, all in Harvard format. Your list should include at least one text book, website, video, news article, journal and each one should be cited at least once in the body of your report.

Based on all the data you have considered in Tasks 1-9, summarise in just one or two paragraphs your most important findings. Also, check the overall structure and presentation of your report (see the Brief in Moodle for more details).

Reasoning of the Issues Relating to Eco-Fone Smartphones

Cell phones association, namely Eco-fones, sells additional items including cell phones from its both shops, masterminded in Putney and Richmond. By and by, the phone company is not selling tablets or workstations. The business has been sparsely earning well since it had started in 2014. It has seen an essential addition in its yearly advantages. One of the developments of offers has been recognized among the more settled customers. A part of these customers in securing a phone. In this report, we will discuss a graph showing the small market in the United Kingdom, and the use of cell phones among the existing customers. We will likewise examine why previous customers like present-day cell phones, focal points, and weaknesses of business advancement to Kingston, the expense of building new buildings, and lastly if  the quality affirmation gatherings meet the frameworks.

An Overview of the Mobile phone market in the UK

The United Kingdom is comprised of  33.5 million people’s workforce, out of which 32 million people are already hired. An investigation coordinated by Deloitte shows that nearly 50% of the respondents,engaged from the period 2016-17, used their cell phones for any business-related event, due to which various business-related activities dropped. The usage of the email facility also reduced from 41% to 37%.  Standard call rates are being reduced to 1% from 33%. Timetable the officials and study records diminished to zero percent from 3% and 17% exclusively (Deloitte, 2017).

Time management was required in the work profile along with  making voice calls using web/extraordinary weight moreover demonstrated a slight drop of 8-6% and 6-4% exclusively. The level of associating to the intranet business-related work remains unaltered (6%), binding from phone to PC (7%-4%), changing trends (6%-5%), getting to the association report organize/limit (5%-4%), and clinging to prescribed working hours (5%-3%). The costs duly submitted moreover showed a considerable drop (4% - 3%) similarly as various uses (3% - 2%). Nothing based on what was simply referenced uses characterizations extended from 44% to half. This shows the phone devices made in 2017 had unexpected usage in comparison to the previous year. In 2016, the clients used cell phones in business-related activities more as compared to the year 2017(Deloitte, 2017). Figure 1 underneath shows four top activities for 2016 and 2017.

Figure 1: Top four activities

Figure 2: Line chart forecast.

Utilizing the line chart, determined qualities for 2018 and 2019 can be assessed as 94% and 100% individually. The given technique doesn't function admirably because it is difficult to recognize the fundamental qualities anticipated for the years. It relies upon what an individual can see from the diagram. Another issue is that the technique is foreseeing that every single grown-up individual in 2019 will possess cell phones, which is illogical to execute.

An Overview of the Mobile phone market in the UK

Linear Regression model is best suited in this case. Linear trend is shown in the dataset (Sen and Srivastava,2011). For this circumstance, we acknowledge a rate as the penniless variable and years as the free factor. Table 1 underneath shows the regression coefficient. Together,  the intercept and coefficient of year factors are huge at a significant level of 5%; thus, the regression deciding model is the best model to use. It gives an estimation model as:


Table 1:

Coefficient estimates


Standard Error

t Stat


Lower 95%

Upper 95%
















Standing at the first place, current cell phones have full screens, which causes more established individuals to have the option to see without troubles. Present-day cell phones have a higher view region than more established variants. The more seasoned adaptation had a little view of territory, which made progressively previous clients strain when review messages. Second, present-day cell phones have stronger speakers, which makes more established individuals hear the voice. The more remarkable piece of more seasoned people have hearing issues, which makes it less vaguely audible during the voice calls. The propelled phones consists of more grounded and straightforward speakers that make audibility valuable to progressively new clients. Lastly, the new mobile phone has programming which is more user-friendly. The present mobile phones are utilizing easy programming, It is simple to  install and uninstall applications when they appeared differently concerning increasingly settled firms — standard makers of Android mobile phones by offer streamlined application launcher adjustments at progressively settled people. The progressing Android mobile phones have Playstore application that energizes downloading of PDA applications. It is straightforward and requires less strategy to do all things considered. Another important feature of the latest technology mobile phones are, the facial recognition facility , which makes it unique than the others. With the use of this facility, face is recognised for unlocking the phones, which enable complete security, and increasingly prepared customers dynamically incline toward this segment, wherein  people can just stare at the phone and unlock the same , instead of tinkering with the gets to press or on any occasion, dealing with their glasses see and type the mystery key. The more critical pieces of the more established people have this habit of checking the incoming call details, which becomes easier with the latest technologies of the PDA glasses.( Kelion, 2017).

Should we expand our business to Kingston?





Invite fresh clients


Expanded working capital necessities


Acknowledge economies of scale through spreading of risk factors and reduce the limit of a single fundamental authority that pulverizes the (Business Queensland, 2015).


Extended the board costs as the association aims at using another supervisory gathering in the new field (Business Queensland, 2015)


Increment in the quality and margin


Expanded strategic difficulties by continuously testing requests from the clients and different stakeholders (Business Credit and Capital, 2015).


Improvement in the brand name,which will facilitate offers from other firms asap. (Thompson,2019).


Maintaining debilitated connections and the work culture between the administration and staff.


Increasingly noteworthy effect on the nearby network by using their experts (Business Credit and Capital,2015).


Expanded expenses for preparing and procuring of the representatives.  


They are carrying fresh challenges to the new area, which will help improve the product quality and also lowering the  costs to the purchasers.


The development may prompt a degradation in the quality.


Total Advantages


Total Disadvantages


Average Advantages


Average Disadvantages


Illustrating from the above advantages and disadvantages method, Eco Fone should stretch out its business to Kingston because the ordinary of experts (mean=7.8333) is higher than the typical of cons (-6.833). This suggests stars have higher  unit score than the cons.

Use of cell phones among existing customers

Costs of a New Building

In this section, monthly expenses of 15-year reimbursement home loan of £350,000 at the rate of 7% every year, shall be considered. The accompanying equation will be utilized to process month to month charges.

, where P-mortgage value

r- Mortgage rate

n- Number of periods


r= 7%=0.07

n= 15*12= 180 periods

Utilizing exceed expectations, the monthy costs reimbursement are £24500.13.

As demonstrated by (2019), the best eight business agreement credit authorities of the United Kingdom in 2019 are; Natwest, HSBC, RBS, Lloyds Bank, TSB, Bank of Scotland, Barclays, and Clydesdale Bank. The layout underneath addresses the symbol of the preeminent eight business agreements advance experts in the United Kingdom.

To analyse the critical differentiation, if any, in net takings of both the shops, a two-model t-test will be taken (Chew). The going-concern information will be utilized for the test. Assuming the  case, where 40 net progressive steps from the leading shop has a mean of £100 and a standard deviation of £20 whereas, 40 net step by step takings from the second shop has a mean of £90 and a standard deviation of £40. From this record, it is analysed that the previous shop is leading by higher undertaking, which illustrates that layout estimations can never provide the clear picture. Assuming 5% level of tremendousness as our benchmark point.

Null hypothesis: there is no enormous complexity in net taking between the two shops

Alternative Hypothesis: There is a liberal difference in net taking between the two shops.

Test statistic, = 1.414

P-value= 2 * (t > 1.414) = >    2*(1- 0.9193) = 2*0.0807 = 0.1614.

Null hypothesis is expelled when the p-regard is less or equal to the vitality level (Mark, 2011). Since p-value =0.1614, higher than 0.05, the null hypothesis is considered to be expelled, reason being that the centrality complexity of attempts is missing between the two shops. It is deficient with regards to the confirmation to help the cases that there is an imperative differentiation in net takings of the two shops. From the strategies, we find that the leading shop has a higher undertaking of £10 more than the second shop. This comes to be not the circumstance in the wake of coordinating a two-example t-test.

The previous customers’ purchase record of the Eco-fone organisation was 2.95, which  infers between 3.5 years, wherein the normal value was 2.89. This shows that the customers have utilized the item for a reasonable time upto 3 years. Purchaser steadfastness/support showed ordinary of 1.98 (canny), nature of the organization had a mean of 2.5 (right), total of the rating of the business staff was 3.25 (superb), and value regard assessments consisted of 2.51 (right). Standard satisfaction had an average score of 2.51 which exhibits that the customers had unprejudiced assessments on outright joy and their anxiety to continue coexisting business with Eco-Fone at an ordinary range of 2.52. This proves that the customers are relatively at risk to continue working with Eco-Fone. Customers are pressumed to recommend others to purchase things or organizations from Eco-Fone (mean=3.71). None of the items had a mean under 1. This exhibits none of the questions were assessed insufficiently.

Advantages and disadvantages of business expansion to Kingston

Furthermore, from the midpoints, none of the things had the most noteworthy score as its sound. A considerable segment of the request had a rate of someplace in the scope of 2 and 3. This illustrates the impartiality of the things.

Table 2:

Means of customer satisfaction questions





















Quality Procedures

The most proper kind of delivery is poisson distribution, for use in this situation since situations occur at numerous occasions where the blunder event is uncommon (Salacinski, 2015). The time ought to pursue poison because of the accompanying reasons. To start with, there exists an enormous number of measurements that essential part. Also, the probability depends on equivalent periods, and for this situation, the quantity of mistake solicitations is watched month to month (Khan Academy,2019). Poisson distribution is the appropriate fitting distribution to use in this case because of countless ideal occasions when contrasted with adverse circumstances (Bergman, 2019, 86). To see if the systems have been met, the probability of whether the likelihood of blunders of more than 3 is under 15 percent shall be decided. On the off chance that over 15%, at that point, we will presume that the strategies have not been made.

Probability of more than three.

0.6065+0.3033+0.0758+0.0126) = 1-0.9982=0.0028

The probability of multiple solicitations which has a mistake in a month is 0.28%. As the possibility of getting more than three blunder solicitations is under 15%, then we show that the quality methodology has been well acknowledged 

Conclusions and Crucial Findings 

With everything taken into account, an examination drove by Deloitte asserted that half of its used respondents in the period 2016-17 used mobile phones for single work at a time, be it at any rate. that too, only business related.  In 2016, PDA screens were used by the customers in publicity related activities as compared to 2017. Linear Regression best fits in for the evaluation. Linear trend is generally shown by the dataset. Assuming the situation, the dependant variable is acknowledged. The regression model assessed adults using a PDA in 2018 and 2019 as 92.43% and 98.08% independently. Increasingly settled individuals cherished present-day PDAs because the new phones had an inexorably exhaustive overview screen, facial recognition, enhancers, and dynamically open programming for use. With the help of  the ace and cons strategy, the company should expand its business to Kingston due to the fact that  typical of virtuosos is higher than the ordinary of cons. Monthly costs was viewed as £ 24500.13. When conducting the t-test, it is observed that verification is lacking in helping the cases where there is an enormous differentiation in attempts between both the shops. An audit carried out by the customer, demonstrates that the organizations were not feeble nor amazing. By far, maximum midpoints were fair. The quality affirmation of the company met the techniques since the probability of having different slip-ups was under 15%.


Bergman, B. (2019) "Conceptualistic Pragmatism: A framework for Bayesian analysis?", IIE Transactions, 41, 86–93

Business Credit and Capital (2015). The Pros and Cons of Expanding Your Small Business. Available at

Business Queensland (2015). Pros and cons of business growth. Available at

 Chew J. C (n.a) Making Sense of The Two-Sample T-Test. Available at

Deloitte (2017). State of the Smart: consumer and business usage patterns Global mobile consumer 2017: Uk cut. Available at

Kelion, L. (2017).Smartphone sales boom with over-55s. Available at 15 July 2019)

Khan Academy(2019). Poisson process 1 Probability and Statistics.Available at

Mark, T. (2011). Economics 421/521 - Econometrics - Winter 2011 - Lecture 2 (HD). Available at 

Salacinski, T (2015) SPC - Statistical Process Control. The Warsaw University of Technology Publishing House. 

 Sen, A., Srivastava M.(2011). Regression Analysis — Theory, Methods, and Applications, Springer-Verlag, Berlin.

Thompson, J.(2019). Advantages & Disadvantages of Expanding Your Business. Available at a mixed bar chart for top 4 activities

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