Introduction to Business

This document provides an introduction to the concept of business and different types of business organizations. It explores the case of Mary and Sue's 'Little Dessert Shop' partnership and evaluates its effectiveness. The document also analyzes the business using Porter's Five Forces framework and provides advice on achieving competitive advantage. Additionally, it discusses the impact of macro environmental factors on improving the business.

INTRODUCTION TO
BUSINESS
(Assessment1)

INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Evaluate a partnership as a type of business organisation with reference to Mary and Sue’s
‘Little Dessert Shop’...............................................................................................................3
2. Use the Porters 5 Forces framework to analyse ‘Little Dessert Shop’ business and advise on
how Mary and Sue can achieve competitive advantage by managing the relationships with
these forces.............................................................................................................................4
Clearly discuss any three of the macro environmental factors with particular reference to how
they can help improve the business........................................................................................5
CONCLUSION................................................................................................................................6
REFRENCES...................................................................................................................................7

INTRODUCTION
Business is the process that deals with selling, managing and planning over products and
services required to be sold by an organization. This is considered to be very effective and
efficient medium to make an organization promote itself. It has its roots embedded since long
time period. In other sense it can be said that an organization which performs various kinds of
activities that is commercial in nature or are professional and involves monetary transactions is
known as business activities. Such activities which impacts economy of a country is known as
business. It has dynamic nature and covers wider scope due to its characteristics which affects
over all financial functioning of an organization. Organization that has been taken in this is Little
Dessert Shop. Things to be covered in this file porter's five force model, three factors of PESTEL
and partnership business is explained.
MAIN BODY
Evaluate a partnership as a type of business organisation with reference to Mary and Sue’s ‘Little
Dessert Shop’.
Partnership is known as that kind of business frim that is being formed by two or more than two
partners who comes together with the motive of earning revenue with profit. These organizations
is being run only by the partners themselves and all responsibility is being hold by them. In this
limited liability. There various kinds of partnership that can be formed within two individual or
organizations will to do business. In this government companies, non-profit enterprises and
private organizations is involved within it. Also partnership seeks for profit venture that is
undertaken by the partners themselves. Main categories of partnership are general partnership,
limited partnership and limited liability partnership (Kumar and et. al. 2020).
In general form of partnership all parties share legal and financial liability with equality. In this
individuals personally liable to attain responsibility for debts within partnership that takes on.
Profits is shared equally within partners. In case where profit is specific then partnership
agreement is required to be formed. In Limited liability partnership an common structure for
professionals like accountants, lawyer and architects. The arrangement limits partners from
personal liability for example if one partner is sued for malpractice, the assets of other partners
are not at risk. Some law and accounting firms make a further distinction between equity partners
and salaried partners. The latter is more senior than associates but does not have an ownership

stake. These are generally those bonus based over profit that is being generated. In such kind of
partnership hybrid and general principals through limited liability. According to it one partner
should be general and only holds limited liability. Such organizations are formed through mutual
understanding only under special cases they are required to form an agreement with registration
of the firm (Kumar and et. al., 2020).
Partnership is a kind of business organisation which is formed by two or more person
who mutually agree to share profit, losses, responsibility and decision making process. The
partners take up the responsibility by engaging in an agreement which states the share of profit,
losses, capital contribution and other aspects. In context to the case scenbario, the organisation
which shall be formed will be 'Little dessert Shop' which involve spartners who will sharetheir
profits, loss and responsibility according to their capital contribution in forming this business
organisation.
In the given case scenario the organization that is been formed is ‘Little Dessert Shop’.
This is formed with collaboration of partners. Also they hold common form to earn profit and do
business activities.
2. Use the Porters 5 Forces framework to analyse ‘Little Dessert Shop’ business and advise on
how Mary and Sue can achieve competitive advantage by managing the relationships with
these forces.
Poter's Five Force is considered to be that kind of model which has been analysing five
main forces which makes an industry in determining weaknesses and strength. Such analysis is
very much required in order to make identification of structure and corporate is being determined
strategy. Poter five force model is applicable upon different segments within a market. They
covers economy in understanding various level of competition which enhances organization with
long-term profitability. The analysis is done over Little Dessert shop has been explained as
follows:
Competition in the Industry
The first of the five forces in this competitors and ability of selling an organization is
covered. In this large competitors over product and services is being offered by them. Supplier
and buyer is seeking over dealing within monetary terms. These are required for generating over
deal with effectiveness in monetary terms. Both supplier and buyer seeks to from deal with
effectiveness regarding monetary issues. In this generation of deal should be better and at

effective price. As per this an organization like Little Desert shop is a low level organization
which makes profit with higher sales to be achieved (Klun and Trkman, 2018).
As Little dessert shop is a small partnership and it has number of rivals in the market, the
threat of this force is high as the competitors may not allow this small firm to establish in the
market.
Potential of New Entrants Into an Industry
An organizations like Little Desert shop is to be affected by the market. Less time and
money it cost competitors for entering within an organization that is being impacted competitors.
It is established in an organization and weaken position of an organization. Due to this prices of
product and services increases that impacts selling of organization. So, little Dessert Shop is
being required use in order to make established within an industry of education.
Establishing a restaurant at small level is easy task for the people as limited resources and
money is involved in the initial level. So the threat of this force is moderate as there are chances
that new entrants can enter the market easily.
Power of Customers
The ability that customers have to drive prices lower or their level of power is one of the
five forces. This is being affected by buyers over consumers within an organization which makes
significance of each customer possible. Also it helps in finding new customers within the
market.A smaller and more powerful client base means that each customer has more power to
negotiate for lower prices and better deals. An organization like Little Dessert Shop have
smaller, independent customers and it becomes easier for its to increase profitability.
Threat of Substitutes
The last force that is being used in order to make substitute goods and services to be used
for making an organization while impacting its selling. It means that an organization like Little
Dessert Shop's is impacted over selling of goods and services as substitute goods available in
market makes customer shift to other brand. As per the situation Little Desert Shop goods and
services that is not having any kind of substitute available is going to make sure profit is gained
(Goi, 2019).

Clearly discuss any three of the macro environmental factors with particular reference to how
they can help improve the business
Political Factor: These factor is all about how and what government is changing in their policy,
it can be taxation policy, ban on export, change in trade policy, instability, corruption and change
in labour law of the government. Little Desert Shop will be effected if there is any political
instability can be result of loose in business. This impacts the organization as tax increases
affects the selling of goods and services. This affects directly over profit building and revenue
generation.
Social Factors: These factor represent the demographic characteristics, norms, value and custom
of the population. this also include safety emphasis, health consciousness, growth rate, age,
income distribution and career attitudes. If this factor is not kept within the mind of Little desert
organization then they are going to lose customer based which directly affects the organizations
by making customers loyalty to be lost.
Technological Factors: These factor involve the innovation of new technology that can affect
the operation of the company. These factor may influence that company can enter in the new
industries or sustain in the existing industries. Organization like Little desert is required to be
focused over various development of technology that increase production quantity and quality.
This can be done by improvising machines that helps in quality certification and collecting data
of an organization like Little desert to help in staying ahead of customers and (Zolbanin, 2018).
The technological factor may result in increased cost which may decline the profit
maximisation. The impact of technology may be negative at initial level of the business as the
firm has limited capital.
CONCLUSION
From the above discussion the concept of business is clear which means any kind of
monetary transaction done over selling of product and services of an organization. In this file
partnership is explained regarding formation of Little Desert organization. Poter’s fuve force
model is been told which includes those factors that can impact growth of organization within
new market. In the end three factors is being explained which are macro factors that impacts an
organization’s form outside or externally.

REFRENCES
Books and Journals
Delen, D. and Zolbanin, H.M., 2018. The analytics paradigm in business research. Journal of
Business Research. 90. pp.186-195.
Goi, C.L., 2019. The use of business simulation games in teaching and learning. Journal of
Education for Business. 94(5). pp.342-349.
Klun, M. and Trkman, P., 2018. Business process management–at the crossroads. Business
Process Management Journal.
Kumar, B and et. al., 2020. Digital mediation in business-to-business marketing: A bibliometric
analysis. Industrial Marketing Management. 85. pp.126-140.
Kumar, B and et. al. 2020. Digital mediation in business-to-business marketing: A bibliometric
analysis. Industrial Marketing Management. 85. pp.126-140.
Valenzuela-Fernandez, L and et. al., 2019. A bibliometric analysis of the first 25 years of the
Journal of Business-to-Business Marketing. Journal of Business-to-Business
Marketing. 26(1). pp.75-94.
Van Looy, A. and Van den Bergh, J., 2018. The effect of organization size and sector on
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