Introduction to Business

This report provides an introduction to business, focusing on the case study of Little Desert Shop. It discusses the issues faced by the shop, the concept of partnership as a business organization, macro environment factors that positively influence the business, and the Porter Five Forces framework. The report offers insights into pricing strategies, the importance of partnerships, and external factors affecting the business.

Introduction to Business
Table of Contents

INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Issue of Little Desert Shop................................................................................................................3
Partnership is a type of business organisation....................................................................................4
Macro environment factors positively influence the business............................................................4
Porter Five Forces framework...........................................................................................................6
CONCLUSION.....................................................................................................................................6
REFERENCES......................................................................................................................................7

INTRODUCTION
Introduction to business is denoted as introducing the business organisation in front of
all different stakeholders associated with the business. This report is based on the case study
of Little Desert Shop. Henceforth, report will project different elements associated with the
introduction to business. This project would discuss over the issue Marry Jones and her
husband is facing in regards to the shop. Evaluation will also do in respect to the partnership
as a type of business. Furthermore, three crucial macro environment factors that positively
influence the business operations. This project would also discuss about the Porter Five
Forces model.
MAIN BODY
Issue of Little Desert Shop
The main issue of the Little Desert Shop is associated with the pricing. They recently
opened the stores and looking for establishing the business in that locality. The place
associated with the shop contains many shops and healthy competition. They want to offer
the new product contain premium range of price. Marry and her business partner is in heavy
confusion on what price they should offer this premium price range product. This is a valid
issue in case of newly established business organisation. Pricing is always a key area of
concerned associated with the business organisation. They do not want to lose the existing
customers due to charging healthy price over any of the product. In order to increase the sale
they are planning to offer the new product in dessert. This product consumes costlier
ingredients which are increasing the overall selling price of this product. The analysis of this
issue is denoted certain facts that must be taken care of while dealing with the issue. This new
product contains healthy demand in the market. Due to costlier ingredients this product
belongs to premium price range in the entire market (Alexandros, 2019). If the Little Desert
Shop offers this product at the price equivalent to the existing selling price of the market than
still the organisation won’t be able to lose any of its existing customers. Right now the
business is in the initial stage of business life cycle. In order to grow it further they need to
establish the loyal customer base. In order to establish the loyal customer base its equally
important to maintain the right quality in the products offer by company. In order to reduce
the price of the new desert Little Desert Shop must not reduce the necessary ingredient
required to make this product. If they involve all such ingredients than the price would
contain the premium price range. The assessment of this entire issue bring certain facts which

are they can either set the prices equivalent to the average market price or limit the price
range in below the prices offer by other competitors in the market. Both these options would
allow the Little Desert Shop to lose the profit margins over this product as compare to other
competitors in the market. This strategy is effective for the organisation as it is under the
initial stage of business. If they offer the same quality product in the effective price range
than they will be able to establish the loyal customer base. This decision is beneficial for the
organisation in long run.
Partnership is a type of business organisation
Partnership is also a type of business organisation in which two or more than two
individual try to initiate the business with the support of some amount of capital. Partners
bring capital in the business in case of partnership business. The capital require in this
business is minimum as at the initial level they do not need to establish the big venture rather
they can start with the small place where they can work all the functions of business. It is also
not essential to register the partnership business (Boštjančič, Ismagilova and Maltcev, 2020).
The profitability is shared in the partnership in the basis of the partnership deed created
between all the partners. The set criteria would be used to distribute all profits of the
partnership business in all the partners of the business. Marry and Sue is also running the
business call as the Little Desert Shop in the partnership. They both bring certain amount of
capital to start the business. On the basis of partnership deed that share the profit in the
business. In case of small businesses partnership is the right form of business establishment
that can be used to initiate the business at small level. Once the business becomes huge they
can convert the business into the company.
Macro environment factors positively influence the business
Macro environment factor denoted the external factors associated with the business
environment that influences the business operations of the company. Following are the
factors of macro environment that could positively support the company.
Political Factor
Political factor could positively support the business of the Little Desert Shop.
Government in United Kingdom provide immense support to small businesses. Government
support such business from the policy making so they can enhances the growth opportunities.
In United Kingdom almost 99% of the total business houses belong to the small and medium
size business (Jasiulewicz-Kaczmarek, Saniuk and Nowicki, 2017). The presence of the small

businesses in United Kingdom motivate the government to support these small businesses
with proper polices associated with taxation, easy licensing and different other policies of
government. In United Kingdom government also hold the stable position which allows the
government to sustain the policies for long time. This also supported the business growth of
the Little Desert Shop.
Social factors
Social factor of macro environment is another crucial factor that could support the
growth of the Little Desert Shop. Social factor involve fashion, trend and certain other factors
associated with the society. People in United Kingdom like to enjoy sweet which could
support the sales of the Little Desert Shop. This is a crucial factor that somehow supported
the sales of the organisation. In order to entertain success in the business it is essential that
people likes to use the service and products offer by company (McCarth and et.al., 2019).
Due to the trend in the United Kingdom about eating sweets strengthen the growth of the
business. Per capita income of the people in United Kingdom also motivates them to buy
such products offer by the business organisation.
Technological Factor
Technological factor is another positive factor associated with the macro environment
that could support the growth of the Little Desert Shop. In United Kingdom due to the
constant effort of the government country could boost its potential ability to enhance the
technological advancement of the country (Pietzsch, Ribeiro and de Medeiros, 2017). This
factor could support the organisation to sale its product over internet and also to promote the
brand over social media and other digital mediums.
The above mentioned factors are the key factors and aspects of macro environment
that could support the overall growth and success of the Little Desert Shop.
Porter Five Forces framework
This model given by the Porter project the key external factors that directly influence
the business operations of the organisation. Different forces that influence the business are
projected in this model in the following manner.
Competition in the industry (High): Competition in industry is huge and aggressive. This
force directly influences the business operations of the Little Desert Shop. The locality of the

shop is very competitive as many other peoples are also running the small businesses in such
a area. Due to availability of the plenty of options in front of the customers this force is high.
Potential of new entrant in industry (High): Potential of new entrant is also high. As the
desert shop business do not require much investment if an enterprises looking to start from
the bottom level (Straková, 2017). The requirement of the investment is minimum which
create a huge possibility for the new entrants to start the similar business. This force is high
due to all these factors and aspects.
Power of supplier (High): Suppliers also carry a huge power in the business. Little Desert
Shop is a small business house. In case of small business organisation this force is relatively
high due to extra dependency of the small businesses over its suppliers.
Power of customer (High): Customers always carry the huge power for sustaining and
growing the business. They play the huge role for the Little Desert Shop in sustaining the
business and the same time growing the same business also (Wing, 2018). The influence of
customers makes this force high.
Threat of substitute product (High): Substitute product threat also exists. The Little Desert
Shop conducts its business operations in the sweet market. The possibility of the substitutes is
huge for the organisation.
CONCLUSION
Pricing is always a huge issue for the business. On what price company should offer
its products are a key area of concerned. Partnership is a type of business in which more than
one individual invest in the business. Macro environment factor such as political, social and
technological could support the business of the Little Desert Shop.

REFERENCES
Books and Journals
Alexandros, P. N. 2019. Porter vs Krugman.
Boštjančič, E., Ismagilova, F. and Maltcev, A., 2020. The Relationship between Control over
a Deal and Cognitive-Based Trust in an International Business
Partnership. Organizacija. 53(2). pp.95-110.
Jasiulewicz-Kaczmarek, M., Saniuk, A. and Nowicki, T., 2017. The maintenance
management in the macro-ergonomics context. In Advances in Social &
Occupational Ergonomics (pp. 35-46). Springer, Cham.
McCarthy, M. and et.al., 2019. A Typology of Citizen Presentations in Police Use of Force
Events: Are There Ecological Drivers?. Police quarterly. 22(3). pp.360-387.
Pietzsch, N., Ribeiro, J. L. D. and de Medeiros, J. F., 2017. Benefits, challenges and critical
factors of success for Zero Waste: A systematic literature review. Waste
Management. 67. pp.324-353.
Straková, J., 2017. Influence of the Meso-environment and the Macro-environment on the
Success of Enterprises in the Czech Republic.
Wing, K. E., 2018. Nonprofit-business partnership: the social construction of value (Doctoral
dissertation, University of Nottingham).