Introduction to Business

This document provides an introduction to business, including types of organizations in terms of partnership, identifying Porter's five forces and competitive advantages, and macro environmental factors. It discusses the benefits and advantages of partnership, as well as the impact of competitive forces and macro environmental factors on business. The document also includes references for further reading.

Introduction to Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Types of organisation in terms of partnership.............................................................................1
Identifying Porters five forces and competitive advantages of business.....................................2
Macro environmental factors of company and benefits to its company......................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Introduction to business means introducing new business idea after identifying the needs
and requirement of costumer and deliver to them accordingly. In this types of organisation in the
reference of partnership and defining the porters five forces model and maintain competitive
advantages with the forces (Dibrell and Memili, 2019). Apart from that Macro environmental
factors for the company and how it will be benefit to it is going to study.
MAIN BODY
Types of organisation in terms of partnership
Organisation is form of certain activities and function that combine together into one
enterprise and has some motive, mission and vision that it accomplish. There are certain type of
organisation in which partnership is also included. Partnership refers to mutual agreement
between two parties who were come together to do business. In this individuals shares risk and
rewards as per the agreement like in “ little Dessert Shop” Mar and Sue were equally contributed
the amount and like wise take loan together from bank to finance in their business. It is located in
South Ealing area. This is most commonly used business practices as it divided the profit and
loss between two parties. Following are the ways partnership is benefit for organisation -
 This is proper agreement in which two partner agreed to work together on certain laws
and rules. It is most convenient and cost effective way to do business, as when some does
not have much money then, they can start their enterprise in partnership. As, in Mary and
Sue partnership organisation they both equally invected in their new venture.
 It is easy to form a partnership firm as they do not have many rules and law that ned to
consider apart from few important agreements (Doern, Williams and Vorley, 2019). In
the partnership of “Little Dessert Shop” they both can easily plan out the strategies and
activities. Both has specialised knowledge in their business that will help in formulating
the functional and successfully implement them.
 It will be help in achieving the growth of individual desired d because both are not good
at everything so they balance out the responsibilities and duties between each other, and
accordingly play their role in business that will increase the efficiency of organisation.
As, Mary and Sue are doing their roles in which they are good at and improve the
effectiveness in organisation.
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 Partnership will help in developing the trust and consent between two partners as they are
mutually come together to fulfil their common objective and maintain. It will help in
erode in most of the problem as they know what are their issue and how they can
overcome this (Mendling and et.al., 2017). As, in Mary and Sue they both know each
other capability and competence and they try to put that into their specialised field where
they are good at. It will increase the productivity and efficiency of the business. So, this
is helpful in utilising their abilities.
 In partnership, both the partners were doing their job sincerely and they also responsible
for any loss that will occur in their business such as, in “little Dessert shop” if they were
facing any issue, they together will going to confront it.
Identifying Porters five forces and competitive advantages of business
Porters five forces model is tool that help in identify the strength and weakness of
competitor and accordingly, and identify the various factors that impact the business
effectiveness (Grosser, Moon and Nelson, 2017). It is useful in analysing the different aspects of
competitors strategies. In the “Little Dessert Shop” this tool will be helpful in determining the
various strategies run be its market intensity and overview. Following are forces that impact
organisation -
Competitive rivalry- This consist of many competitors that exist in market and how
they impact the operational activities of other business. In “ little Dessert shop” many other
venues are their to give tough competition to it. As this is not new in market, and it provide
friendly services, good quality and healthy products at low price. So, this is not put high force on
this business and many certain better services will help it to sustain in market. But it also need to
improve its other services so that it could give fair competition in industry.
New entry threat- It refers to entry of new player in market and because of it how much
it impact the business process of organisation. It is necessary to evaluate this force. For “Little
Desert shop” new entry will impact the operational function of firm. If new one will come, they
has better idea and innovative concept. So, it will build the threat for this organisation if any new
one will enter in market. As there is no barrier in this industry, with minimal requirement any
new enterprise can enter and enjoy the advantages.
Bargaining power of buyer- This refers to the how easily costumer can make the
organisation to put their price down and how frequently they change their choice. For “ Little
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Dessert shop” buyers will easily change their choices if they do not find good according to their
prospective. So there is strong force of costumer towards the shop. Because there are number of
shops and venues in their which provide similar kind of food product (Jones, 2019). This shop
must easily understand that what is beneficial strategies for them to retain their loyal costumer.
Supplier power- It refers to how supplier can impact the choices of business and how
much numbers of them affect the organisation. As, it depends on numbers of supplier in market
and how frequently they can impact the prices. In “Little Dessert shop” industry there are large
number of supplier who are providing the services and they do not high their price and maintain
nominal rate. Due to this there is low force towards the business, as there are number of
suppliers and they switch over to other one if they find that any supplier is charging high.
Threat of substitute- It termed as close substitute products exist in the market and how
they will impact the business of other business. For “Little Dessert Shop” they have more risk as
there are many other shop, bakery and other food places where similar food item is served with
little change in taste and variety (Khajeheian, Friedrichsen and Mödinger, 2018). This largely
related with this industry as there many substitute is available in the market. So this is huge
threat of substitute for this shop as there are many similar items available in market.
For “Little Dessert shop” bargaining power of buyer will give competitive advantage to
this shop through developing the quality of goods and services and providing the different range
of product that will help in maintaining the position in market. It can attract the buyers through
serving the organic and fresh food items.
Macro environmental factors of company and benefits to its company
There are certain macro environment factors that will influence the operational activities
and function of business. As every organisation must study about the how they can achieve their
desired goals and objective with the external environment factors. Following factors are as
follows-
Economical factor- It means factors such as money and supply demand, inflation rate,
employment in country and how it influence the working of business. “Little dessert shop” is
located at Birmingham which is in UK. So, this is in prime location where it has good
economical condition, but after this pandemic it suffers a lot that impact the growth of whole
country (Orlov, 2016). So, consequently it will also impact the working of this shop. It will take
some time to revive and come to its normal track.
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Social factor- It include the costumer behaviour, taste and their standard of living in
particular country. So “Little Dessert Shop” is situated where costumer standard of living, taste is
so modern and they prefer to eat always good quality of product. It will be necessary to
maintaining that quality and serve the costumer with great taste(Kumar, 2017) . For that the can
include various good quality product that will be beneficial for costumer and attract them to buy
them.
Legal factors- It include all the laws, regulation , framework and policies that exist and
how it impact the organisation business activities and processes. The place where “Little Dessert
shop” is located, it contain lots of rules and policies regarding the food standard and safety. It is
important for every food outlet to follow certain rules and framework to avoid any uncertainity
in future (Likoko and Kini, 2017). Apart from them, there is some restriction towards the new
entry in industry and they have to adhere to all the legal formalities.
CONCLUSION
From the above project report it is conclude that Introduction of business refers to
implementing new business idea and coming up new plan, that include all the important
information about new organisation. In this type of organisation and benefit and feature of
partnership is discussed. Apart from that porters five forces model and its competitive
advantages in the relation to the business and macro environmental forces that impact the
organisation activity and how they can over come fro this is studied.
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REFERENCES
Books and Journal
Dibrell, C. and Memili, E., 2019. A brief history and a look to the future of family business
heterogeneity: An introduction. In The Palgrave handbook of heterogeneity among
family firms(pp. 1-15). Palgrave Macmillan, Cham.
Doern, R., Williams, N. and Vorley, T., 2019. Special issue on entrepreneurship and crises:
business as usual? An introduction and review of the literature. Entrepreneurship &
Regional Development. 31(5-6). pp.400-412.
Grosser, K., Moon, J. and Nelson, J. A., 2017. Guest editors’ introduction: gender, business
ethics, and corporate social responsibility: assessing and refocusing a conversation.
Business Ethics Quarterly. 27(4). pp.541-567.
Jones, L., 2019. Introduction to business law. Oxford University Press, USA.
Khajeheian, D., Friedrichsen, M. and Mödinger, W., 2018. An introduction to competitiveness in
fast changing business environment. In Competitiveness in emerging markets (pp. 3-11).
Springer, Cham.
Kumar, U. D., 2017. Business analytics: The science of data-driven decision making. Wiley.
Likoko, E. and Kini, J., 2017. Inclusive business—a business approach to development. Current
opinion in environmental sustainability. 24. pp.84-88.
Mendling, J. and et.al., 2017. Challenges of smart business process management: An
introduction to the special issue.
Orlov, V., 2016. Introduction to business law in Russia. Routledge.
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