Evaluate Partnership as a Business Organization for Little Dessert Shop

This report evaluates partnership as a type of business organization with reference to Mary and Sue's Little Dessert Shop. It also uses Porter's 5 forces framework to analyze the business and discusses macro environmental factors that can help improve the business.

Assessment 1
(Report)

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Evaluate a partnership as a type of business organization with reference to Mary and Sue's
“Little Dessert Shop”...................................................................................................................1
Use the Porters 5 forces framework to analyse “Little Dessert Shop” business and advise on
how Marry and Sue can achieve competitive advantage by managing the relationships with
these forces...................................................................................................................................2
Clearly discuss any three of macro environmental factors with particular reference to how they
can help improve the business ....................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCE ..................................................................................................................................6

INTRODUCTION
Business plan is defined as formal written document that contains business goals and
activities which is required to be complete. For each organization it is important to understand
the needs and wants of their customers and provide the products and services accordingly. This
can be lays out a written roadmap for each organization by considering marketing, financial, and
operational activities (Hair Jr, Page and Brunsveld, 2019). If all activities and performance are
managed or organised in changing environment then it will be difficult to operate the business
and attain the goals. The present report is based on case study of Mary Jones and her business
partner, Sue Jackson who set up “Little Dessert Shop” which is located in the busy Bullring
Shopping Centre Birmingham. Both partners have experienced as they worked in this sector.
This report covers understanding about types of business organization, uses of Porter's 5 forces
to analyse competition and macro environmental factors with particular reference that helps to
improve business.
MAIN BODY
Evaluate a partnership as a type of business organization with reference to Mary and Sue's “Little
Dessert Shop”.
Meaning of partnership: Partnership is an arrangement or agreement between two and
more than two people who are collected to operate their business and share the profits as well as
liabilities. This is a kind of business which is started by more than two people by sharing their
profitability ratio, distributing responsibilities and generating the higher performance. For
example, Mary and Sue started their business as a partnership by deciding the ratio of
profitability and loss in business activities that can help to operate the business and increase
performance in competitive market. Both partners have started “Little Dessert Shop” by working
collectively as they decided they roles and responsibilities by contributed £ 30,000, by securing
the – year lease on a shop. They understand what their customers wants and how they can be
satisfied so products and services in their dessert shop provides accordingly (Lopez, Bastein and
Tukker, 2019).
Types of Partnership
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General partnership: This is the basic form of partnership in which two and more than
two individuals agree to share all assets, profits and abilities by working collectively. For
example, a Little Dessert Shop which established by Mary and Sue by sharing profits.
Limited partnership: This is a form of partnership which is also started by two and
more than two person and working together. In this, one or more of the partners are liable up to
the amount of their investment that can help to operate the business.
Limited liability partnership: In this partnership, some and all partners have limited
liabilities that can help to save from higher losses. In this, partners have separate legal entity
which can help to complete the task and arrange all activities.
Use the Porters 5 forces framework to analyse “Little Dessert Shop” business and advise on how
Marry and Sue can achieve competitive advantage by managing the relationships with
these forces.
Porter's five forces – This can be explained as framework or method which uses by
organization to analyse competition of a business and attain the profitability in competitive
market. For each business industry it is important to analyse the competition and develop their
performance by operating activities and functions. This model in context to “Little Dessert Shop”
are as defined:
Bargaining power of Suppliers - Suppliers can be explained as entity that supplies
goods and services to another business organization. In context to “Little Dessert Shop”
bargaining power of suppliers is moderate as it buys the raw material or stock from organic
farms who give better quality of products which influence the customers. Herein, suppliers have
power to charge more for their products as less number of suppliers are available in market so it
can be challenging situation for organization to increase their sales and profitability (Ghosh and
Rajan, 2019).
Bargaining power of buyers - This means people who identify their needs and make
decision to buy the products which can help to increase sales and profitability. In England,
population are increasing and demand of customers is also changing where they wants different
types of products. The bargaining power of buyers in context to“Little Dessert Shop” is low
which create the business opportunity for organization to increase their sales by influencing
number of customers. As organization is selling variety of food products with better quality can
influence the customers. Moreover, Mary and Sue have option to charge more for their better
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quality of products as customers are getting full satisfaction and higher profitability in changing
environment.
Threat of substitution: This means availability of another product or similar that can
meet with needs and manage the all activities effectively. This can impacts on organizational
performance and productivity as reduction. There is less threat of substitution in context to
“Little Dessert Shop” that can help to operate the business and increase the sale of best quality of
food that helps to develop the business performance in changing environment and attain the
higher profitability (Gareche, Hosseini and Taheri, 2019).
Threat of new entrants: This means person who comes to new market by establishing
their business and completing the task. “Little Dessert Shop” is established in Birmingham where
there is moderate threat of substitution which impacted on business negatively. This can be
create the challenge for organization to operate. The partners Mary and Sue are operating their
business by offering better quality and organic food to customers as customers are demanding in
Covid-19 that can help to take the competitive advantages in changing environment and maintain
the profitability.
Competitive rivalry – This means how many competitors are available in the market and
how they are managing their activities in changing environment which can help to develop the
business. In relation to“Little Dessert Shop” many competitors are exists in market who are
providing tasty and better quality of food to their customers that can reduce the sale of selected
organization and affected the profitability negatively. For increasing competition Mary and Sue
can select the competitive pricing strategy where they need to provide their products at low price
than their competitors which can help to increase sales and performance effectively.
Therefore, “Little Dessert Shop” can get the competitive advantages by understanding
demand of customers due to Covid-19 and providing them better quality and organic food to
customers by managing all activities and functions. The management provide the food at low
prices that meets with demand and develop the business performance.
Clearly discuss any three of macro environmental factors with particular reference to how they
can help improve the business
Macro environment: This can be explained as external environment that affects
organization's ability and capability by building strategies and maintaining successful customer
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relationships. In context to“Little Dessert Shop” different factors can affect the business by
brining improvements such as:
Political: This factor is related to government, tax rate, and stability of policies which
can affect the business performance. The tax rate of Birmingham is low as their government is
stable which supports to operate the business continuously. This factor helps “Little Dessert
Shop” to establish their business by managing all activities and functions effectively
(Pavlovska, 2020).
Economical: This factor is related to economy that consider inflation rate, employment
rate, interest rate, and others important to consider. Due to Pandemic, rate of employment in
Birmingham has been reduced which has affected the buying behaviour of customers negatively
and reduced the profitability. On the other side, rate of inflation has been reduced which can help
to increased sale of products and services as customers are demand better quality of food, that
supports to improve the business (Velilla and et.al., 2019).
Social factor: For organization it is important to understand needs and wants of their
customers then provide products accordingly which can help to increase sales and profitability.
In context to “Little Dessert Shop” Mary and Sue is improving their business activity by offering
the better quality of food at affordable price that increases value and brand image of chosen
organization in competitive environment.
Technological factor: For each organization it is important to bring innovation and new
technology so that it can reach the targeted customers and develop their business performance in
competitive market. “Little Dessert Shop” bring the uses of new technology and innovation in
their food items that can help to reach the potential customers and increase the sales. Moreover,
by using advertisement, digital marketing and other activities can grow their business by
reducing problems (Zaharova, Sandrykina and Ivanova, 2019).
Therefore, it has analysed that these factors can help “Little Dessert Shop” to increase
sales and profitability by managing all activities and functions proper.
CONCLUSION
From the above report it can be concluded that business plan is effective for organization
as it helps to identify the problems which are pertaining in business environment and bring the
changes accordingly that can help to operate the business effectively. Porter's five force model is
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uses to analyse situation and get competitive advantages. And many factors are exists in
environment which can help to improve and grow the business profitability.
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REFERENCE
Books and Journal
Hair Jr, J. F., Page, M. and Brunsveld, N., 2019. Essentials of business research methods.
Routledge.
Lopez, F. J. D., Bastein, T. and Tukker, A., 2019. Business model innovation for resource-
efficiency, circularity and cleaner production: what 143 cases tell us. Ecological
Economics. 155. pp.20-35.
Ghosh, S. and Rajan, J., 2019. The business case for SDGs: an analysis of inclusive business
models in emerging economies. International Journal of Sustainable Development &
World Ecology. 26(4). pp.344-353.
Gareche, M., Hosseini, S. M. and Taheri, M., 2019. A comprehensive literature review in
competitive advantages of businesses. International Journal of Advanced Studies in
Humanities and Social Science. 8(3, pp. 223-309.), pp.223-240.
Velilla, E., and et.al., 2019. Outdoor performance of perovskite solar technology: Silicon
comparison and competitive advantages at different irradiances. Solar Energy Materials
and Solar Cells. 191. pp.15-20.
Pavlovska, L., 2020. PROVIDING COMPETITIVE ADVANTAGES AND BUSINESS
BENEFITS. Economics. Management. Innovations, (1 (26)).
Zaharova, T. V., Sandrykina, O. S. and Ivanova, O. Y., 2019, January. The Factor that Make
Competitive Advantages.(The methods which define the effectiveness of productive
activity). In International Scientific Conference" Far East Con"(ISCFEC 2018).
Atlantis Press.
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