Institutes name

Table of Contents

Task 1........................................................................................................................................................3
Task 2..........................................................................................................................................................9
Task 3........................................................................................................................................................14
Bar/column diagram..............................................................................................................................14
Forecasting sales....................................................................................................................................15
Forecasting profit............................................................................................................................17
Task 4......................................................................................................................................................20
Future prospects of the organization.......................................................................................20
Task 5......................................................................................................................................................21
Network Diagram..................................................................................................................................21
Task 6........................................................................................................................................................21
Net present value............................................................................................................................21
Internal rate of return....................................................................................................................22
References.................................................................................................................................................25

Task 1

Brief background (Rationale)

The increase in the user of smart phones in United Kingdom has been the main reason of the
growth of United Kingdomes smart phone market. The main market leaders that capture around
45% of the market share are the iOs and the Android. In this race, BlackBerry is left far behind.
More people are switching to this operating system with the span of time. However, since past
years, iPhone and BlackBerry have been facing difficulties to secure their position in the market
(Williams, 2014)
There has been a 1% increase recorded in Androids market share. It has secured around 60%
Googles holders in the market. iOs secure around 30% of Apples market share, and there has
been a 3% increase in iOs market share. But unfortunately, BlackBerry is still suffering, and its
market share is decreasing with the span of time. There has been no increase recorded in its share
since past 2 years. This makes it hard for blackberry to maintain its position in Smart Phone
market. In total, there has been a 4% decrease in the portion of BlackBerry market share
(Williams, 2014).
In the market, windows phone is also doing a successful business, and is capturing more market
share with the span if time. In United Kingdome, it has secured the third largest amount of
market share. And this market share is continuously increasing. At first it was increased by 1%
and lately it has become 10.2%. Android is also capturing more market share; main reason of this
increase is the new entrants in Smart Phone market. For example, Huawei and Wiki that both
runs on the Android (Singh, 2014).
Objectives of Research
The main aims of research are as follow:
1- It helps outline the space in the market to launch the new product
2- It helps determine the needs of the customers
3- Analysis of the market of smart phones in United Kingdome and the trends

Research Methodology:
Research technique is the procedure of gathering data, examination of information and finish of
outcome (Creswell, 2008). For examination study on Cell phone in United Kingdome showcase
the exploration systems which will be utilized are clarified as takes after:Data collection (Primary and Secondary)
Data is the blood life of any research. Every researcher requires data to carry out the research.
This data should be authentic and true. Therefore, only reliable sources should be considered,
when collecting the data. Two main types of sources to collect data include (Polonsky and
Waller, 2004):
1- Primary Data: this is the type of data which is originally gathered by the researchers, also
known as the first hand data (Polonsky and Waller, 2004).
2- Secondary Data: this is the data which is already been collected by someone in past, and
is utilized by someone in present for research purposes (Polonsky and Waller, 2004).
In the research in hand, the data collected has been taken from both primary and secondary
sources. To collect primary data, a number of methods and techniques are available. But in this
current research, the tool used to gather information is:
Questionnaire
The answers obtained will be documented on the paper. To collect maximum data, both close
and open ended questions will be inquired from the respondent.
The main topic of research will be the latest inventions launching in the market, for this research
will cover many areas including magazines, articles, online surveys, etc. this will help gather
secondary data. To understand the market environment, researchers will also study the market
trends.

Qualitative and Quantitative

These two tools are mostly used by the researches, which makes the research more productive
and reliable.
Quantitative: includes numbers and statistical values in the answers. To introduce new products,
markets liquidity can be analyzed. This is an example of quantitative tool (Davies, 2007).
Qualitative: includes analysis, descriptions, and expressions in the answers. This approach is
free of numbers and figures (Davies, 2007).
Researchers will utilize both of these tools to make their research result oriented. To analyze the
data, quantitative approach is suitable, and to collect the data, qualitative approach is a best fit.
Questionnaire is an example of qualitative approach. The collected information will be compiled
in tables and graphs.
Sample:
Sample is the subset of the population (Davies, 2007). In the present study, the sample will be of
3000 individuals from the streets, markets, and roads. The results obtained will be recorded
through the questionnaires.
Analysis of data:
There are a number of techniques available to analyze the data. The researcher will use SPSS to
analyze the given data in the current research. An experience of people will be easily recorded
with the help of SPSS. It will also include the use of tables and graphs to make the calculations
less difficult.
Timeframe and budget of research
In every study, time plays a vital role. The current study will take around 30 days to complete
and the budget for this research is around 35,000 pounds. The research will feature the latter
activities (Polonsky and Waller, 2004);

Industry background information collection:

The study will gather data from industries carrying out the same type of business; this is the first
step of the research. This will take 6 days, and will help determine if there is space available for
new product or brand in the market. The process will include:
Analyzing the production capability
Analyzing the demand of the product
Analyzing the market situation
Analyzing the current trends of the market
Determining the competitive methods of current brands
Data collection through questionnaire
After completing the previous step, the next step is to distribute the questionnaire to targeted
audience. This process will take around 12 days
Data analysis
SPSS will help gather the data; the gathered data will be analyzed in this step. 2 days are
required for this
Interpretation
Data collected will be compiled and put into a statistical order. A numeric view of the data will
be obtained using the graphs and tables. This will help easily interpret the data and will take 6
days approximately.
Conclusion

Conclusion is the final step in the process. The final result will be obtained, and the opinion will
be made according to the launch of new Smart Phone. This will take around 4 days
The discussed information is given in the form of Gantt chart as follows:

Sample questionnaire
Chose your Gender
Male
Female
Chose your age
17 to 21
22 to 31
32 to 41
42 to 51

 More than 52
Chose your highest degree
Elementary
College
Degree in Bachelors
Degree in Masters
PhD
Your occupation
Student
Public employee
Private employee
Entrepreneur
Do you use any Smart Phone?
Yes
No
If you are Smart phone users, then please continue further;
What is the operating system of your phone?
iphone

 Windows Operating System

Android Operating System
BlackBerry or RIM Operating System
You spend how much of your time on your smart phone daily?
3 to 4 hours
5 to 7 hours
8 to 9 hours
More than 10 hours
Task 2

Arithmetic mean
Arithmetic mean is the total of all the values divided by the number of all the values. This is also
known as the Average. The importance of Arithmetic mean cannot be ignored, espically in
economics, mathematics, statistics, social sciences, etc. Following formula is used to calculate
the value of Arithmetic mean:
Mean = Sum of values / Number of values
Mean = X / n or fX / f
Mean = 5,470 / 100
Mean = 54.7
The value of Arithmetic mean will indicate average price of the clothes which john sold in that
span of time. The answer is 54.7, which means that john charged a price of 54.7 pounds for the
clothes.
Median
Median is that value which divides the data in 2 parts. Foremost step to calculate median is to
format the data in increasing or decreasing order. Just like mean, there is also a formula used to
calculate the median, which is (Morien, 2007)
Median = l+ (h f) x (n2c)
Where L is the Lower boundary of the median group, H is the interval, F is the median classs
frequency, N is the total number of available values, C is the cumulative F of the preceding class.
The median group can be calculated by dividing n by 2.
The median group in this case is 50.
Which implies that median is within the range of 50 and 60.

If we put the values in the formula, then:

Median = 50 + (1020) x (1002 43)
Median = 50 + 0.5 (7) = 53.5
The answer implies that 53.5 is the price which is between the highest and lowest. This is the
middle price
Mode
Mode is the value of the data that has the highest frequency. At times, there is more than 1 mode
in the data (Morien, 2007)
Just like mean and median, there is also a formula to calculate the mode, which is:
Mode = l + [(fm - f1) {(fm - f1) + (fm f2)}] x h
Where L is the lower boundary of the mode class, Fm is the datas highest frequency, F1 is the
preceding frequency of the maximum frequency, F2 is the proceeding frequency of the maximum
frequency, and H is the interval of the data.
The mode class is that where the mode lies, and it has the highest frequency. In the data given,
class of 50 to 60 is the mode class, as it has the maximum frequency of all.
We can now calculate the mode of the data by putting in the values.
Mode = 50 + [(20 - 16) {(20 - 16) + (20 14)}] x 10
Mode = 54
Mode will help john identify the price that influenced the customers to buy his products. John
can set this price to increase his sales. The mode obtained is 54 pounds.
Range

Range can be calculated by taking out the difference between the smallest and the biggest value
of the data. The formula to calculate the rage is (Schervish, 1995)
Range = Highest value lowest value
Range = 100 20
Range = 80
This will help outline the price variations in the total time span. The price
change was recorded to be 80 pounds.
Standard Deviation
This is the all over changes in the data given from the average of the data in hand. The higher the
standard deviation is recorded, the higher the dispersion is. In case the standard deviation is
lower, this means that there has been a low distribution in the data given (Schervish, 1995).
Standard deviation can be calculated trough following formula;
Standard deviation = {(fX2 / f) (Mean) 2}
Standard deviation = {(338,900 / 100) (54.70) 2}
Standard deviation = 19.9226
This will enable John to determine the price dispersion
25th percentile
The value that records 75 percent of the total data above and 25 percent of the given total data
below it is the value of the 25 th percentile. In simple words, its the 1/4 of the given data. The Q1
is the first quartile of the data. The formula to calculate 25th percentile is (Morien, 2007)
Q1 or 25th percentile = l + (h f) {(25n 100) c}

Group of 25th percentile = (25n100)

Group of 25th percentile = 25(100) 100 = 25
Group of 25th percentile is 30-40
Therefore,
Q1 or 25th percentile = 30 + (1015) {(25x100100) 12}
Q1 or 25th percentile = 38.667
This answer will help John to determine the level of price below which the sales generated was
25% of the total. Below 38.667 pounds, 25 percent of the total sales were produced.
75th percentile
It is the values that have 75 percent of the total data below it and 25 percent of the total data
above it. 75th percentile is the of the given data. It is also called Q3. The formula to calculate
the 75th percentile is (Morien, 2007):
Q3 or 75th percentile = l + (h f) {(75n 100) c}
Group of 75th percentile = (75n100)
Group of 75th percentile = 75(100) 100 = 75
Group of 75th percentile is 60-70
Therefore,
Q3 or 75th percentile = 60 + (1014) {(75x100100) 63}
Q3 or 75th percentile = 68.571

This will enable John to determine the level of price under which he produced a total of 75
percent of the sales. The answer implies that 75 percent of the total sales were made under
68.571 pounds.
Inter- quartile range
Inter quartile range is the difference between the first and third quartile (Schervish, 1995). The
formula to calculate this is:
Inter-quartile range = Third quartile or 75 th percentile First quartile or 25 th
percentile
Inter-quartile range = 68.5714 38.667
Inter-quartile range = 29.9047
This is enable john to determine the price range in which his sales were about 50% of the total
sales. John sold 50 percent of his items within the range of 29.9047 pounds.
Task 3
Bar/column diagram

Bar chart

Forecasting sales

b = {n (XY) (X) (Y)} {n (X2) (X) 2}

b = {11(6,683,720) (22,077) (3,330)} {11(44,308,649) (22,077) 2}
b = 3.7272
{(Y) n} - [b {(X) n}] = a
(3,330/11) {3.7272 (22,077/11)} = a
302.72 - 7480.49 = a
a = -7177.77
Y = 3.7272 X - 7177.77

Now through the above equation;

Sales (000) Forecasting can be done for WLCBMS
For 2013
Y = 3.7272 (2013) -7177.77= 325.08
For 2014
Y = 3.7272 (2014) -7177.77= 328.8
For 2015
Y = 3.7272 (2015) -7177.77= 332.54
For 2016
Y = 3.7272 (2016) -7177.77= 336.27
For 2017
Y = 3.7272 (2017) -7177.77= 339.99
Forecasting profit

Year (X)

Profit(000) (Y)

2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012

50
90
100
110
160
140
120
120
110
130
160

X=22,077

Y=1290

X2
4,008,004
4,012,009
4,016,016
4,020,025
4,024,036
4,028,049
4,032,064
4,036,081
4,040,100
4,044,121
4,048,144
2
X =44,308,649

XY
100,100
180,270
200,400
220,550
320,960
280,980
240,960
241,080
221,100
261,430
321,920
XY=2,589,750

b = {n (XY) (X) (Y)} {n (X2) (X) 2}

b = {11(2,589,750) (22,077) (1290)} {11(44,308,649) (22077) 2}
b = 6.545
{(Y) n} [b {(X)/n}] = a
(1,29011) {6.5454 (22,077/11)} = a
a = 117.27 - 7480.49
a = -13019.5
Y = 6.5454 X - 13019.5
Using the above equation;
Sales (000) Forecasting can be done for WLCBMS
For 2013
Y = 6.5454 (2013) -13019.5= 156.545
For 2014
Y = 6.5454 (2014) -13019.5= 163.09
For 2015

Y = 6.5454 (2015) -13019.5= 169.636

For 2016
Y =6.5454 (2016) -13019.5= 176.18
For 2017
Y = 6.5454 (2017) -13019.5= 182.727

Profit and sales forecast

The revenue recorded for the year 2013 is around 325000 pounds.
For year 2014, the revenue recorded is around 329000 pounds.
The revenue recorded for the year 2015 is around 333000 pounds and for year 2016, the revenue
recorded is around 337000. Around 350000 pounds in revenue is recorded in year 2017.
The profits from this in year 2013 are recorded around 156000 pounds and 163000 pounds in
year 2014. Similarly, the profits recorded for year 2015 will be around 170000 pounds and
176000 pounds for year 2016. Around 183000 pounds in profits are recorded in year 2017.
Regression lines
For profit; Y = 6.545 X - 13019.5
For sales; Y = 3.727 X - 7177.77
Task 4

Future prospects of the organization

The upcoming form of WLCBMS is impressive. However, it is visible that the company will
face a fall in its profits in the upcoming years. The details of profits are further analyzed below.
Revenues
WLCBMS can predict its future revenues with the aid of its past revenues. With these
predictions, it is clear that there would be a significant fall in the revenues of the business. But
this decline will not last for a longer time, the revenues will revive soon. A decline in 25 pounds
will be recorded in the year 2013. However, the situation will revive in 2014 when the revenues
will increased to 329 pounds. After this, the revenues will continue to grow
Profits
It has been predicted that in year 2013, the profits of WLCBMS would face a decline, but will
soon start to increase. The first decline in year 2013 will adjust the profit to 156 pounds from 159
pounds. The profits will boost up in year 2014 and will reach tp164 pounds. After this, the profits
will continue to grow
Task 5
Network Diagram

Network diagram

Task 6
Net present value

Net Present value = Total present value of cash flows initial investment
NPV = 248,367 200,000
NPV = 48,367

Net Present value = Total present value of cash flows initial outlay
NPV = 249,033 200,000= 49,033
These projects have positive recorded NPVs, which makes both of these projects well accepted.
Project B is more favorable as it has a higher NVP as compared to project A (Lasher, 2010).

Internal rate of return

IRR = ra + [NPVa {NPVa NPVb}] (rb ra)

NPVb = Net Present Value at rate b
NPVa = Net Present Value at rate a
rb = chosen higher interest rate
ra = chosen lower interest rate
IRR = 10 + [48,367 {48,367 (-6,341)}] (20 10)
IRR = 18.8409%

IRR = ra + [NPVa {NPVa NPVb}] (rb ra)

IRR = 10 + [49,033 {49,033 (-2,487)}] (20 10)
IRR = 19.5172%
Project B should be prioritized over project A as it has a higher IRP as compared to project A
Recommendations
In this case, B project should be prioritized over A project, as it has a higher internal rate and
NPV as compared to project B (Lasher, 2010).

References

Creswell, J. D., (2008) Research Design: Qualitative, Quantitative, and Mixed Methods
Approaches, Sage Publications Inc.
Davies, M. B. (2007) Doing a Successful Research Project: Using Qualitative or Quantitative
Methods, Palgrave Macmillan.
Lasher, W. (2010) Practical Financial Management, South-Western College Pub.
Morien, D. (2007) Business Statistics, Thomson Learning Nelson.
Polonsky, M. J., and Waller, D. S. (2004) Designing and Managing a Research Project: A
Business Student's Guide, Sage Publications Inc.
Schervish, M. J. (1995) Theory of statistics (2nd ed.), New York: Springer.
Singh, S. (2014) Smartphone Market Share And Usage By Country Apr-May 2014, [online]
available at; <http://www.developereconomics.com/smartphone-market-share-usage-countryapr-may-2014/>, [accessed on March 27, 2016].

Williams, R. (2014) Samsung loses market share to Apple in smartphone battle, [online]
available at; <http://www.telegraph.co.uk/technology/samsung/10970260/Samsung-losesmarket-share-to-Apple-in-smartphone-battle.html>, [accessed on March 27, 2016].