Evaluate Partnership as a Type of Business Organization - Little Dessert Shop

This case study evaluates the partnership as a type of business organization using the example of Mary and Sue's Little Dessert Shop. It also analyzes Porter's 5 Forces framework to advise on achieving competitive advantage.

BUSINESS

Table of Contents
BUSINESS.......................................................................................................................................1
INTRODUCTION...........................................................................................................................3
Evaluate the partnership as the type of business organisation with taking the reference from
Mary and Sue's “Little Dessert Shop”.........................................................................................3
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...........................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................6
Books and Journals.....................................................................................................................6

INTRODUCTION
In this case study of two partners Mary Jones and Sue Jackson have setup a new business
in partnership with a name of 'Little Dessert Shop'. Their business has just broken even and sales
revenue is increasing strongly. Due to Covid 19 crisis business has seen a downfall for 3 months
lock-down. This report involves various types of business organisations with its advantages.
Also, the one company engages in partnership and the relationship between macro environment
and its positive impact on business organisation. It is analysed with the help of Porter's five
forces to achieve competitive advantage (Banerjee and Jackson, 2017). It is achieved with the
help of managing all the forces to improve relationship and to increase productivity and growth
with the changing environment.
Evaluate the partnership as the type of business organisation with taking the reference from Mary
and Sue's “Little Dessert Shop”.
Partnership is define as the business practice in which two or more people come together
in order to carry the business under the legal contact or the agreement. While running business in
partnership the workload, strategies, polices, decisions and many more regarding business is
been taken by the partners. They function according to the mutual decisions. In context of Little
Desert Shop the business is been carried by two individuals in a partnership.
According to the laws and regulation of the government there are mainly three types of
partnership which is been explained below-
 General Partnership – These is normal form of partnership in which two or more entities
come together to start a business. The entities can be both natural and artificial person i.e.
one business company can enter into partnership with another company. These
partnerships are necessarily be registered with the authority designated under the law.
These partnerships are based on the partnership agreements entered between parties.
They have specified profit-loss sharing ratio, capital contribution, work sharing, etc.
Partners have unlimited liability.
 Limited Partnership – These partnerships are different from general partnership on the
basis that the partners have limited liability restricted to their capital contribution. This
structure is more like corporate and therefore, partners and partnerships are treated as
different entity (Dos Santos, Méxas and Meiriño, 2017). This allows flexibility to

partners in taking risk as they do not worry about having personal liability in case of
some failure.
 Joint Venture – These are the partnerships that are generally entered between two or more
already established organisations of same industry for carrying out specific projects. It is
to be noticed that when these projects become successful, these joint ventures are often
promoted to general partnership between two companies. If not, they are dissolved.
According to the given case study the organisational structure which the partners are following is
general partnership in which they enjoy various benefits and have advantages which are
explained below-
 Formation of this structure is quite easy where partners need not to get involved in any
type of complex legal formalities.
 According to the given case study both the partners are from different background which
provide great support to the company (Falkner, 2017) . There viewpoints and diverse
background will helps in developing effective strategies and better decisions are been
taken by them. Hence provide desire results to company and enhance its market
reputation.
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.
Porter's five forces is a model for analysing micro environment of a company. It is
consist of number and power of competitor's rivalry, suppliers, buyers and substitute products
and industry barriers for new entering. These forces directly influences level of profitability and
competition in a company.
1. Industry Rivalry- In this level of competition is determined in an industry. It
helps in understanding attractiveness of an industry with the available
profitability. Little Dessert shop operates under intense competition due to
availability of substitute products and large number of competitors. For this it is
recommended to provide differentiated products with the help of launching new
taste with good quality food products (Hardoon and Shmueli, 2015) . This will
help the company in increasing its market share and customer loyalty.

2. Bargaining Power of Buyers- In this buyers exert their bargaining power by
demanding low cost and quality product. In case of “little dessert shop” company
faces buyers with price sensitivity and availability of substitute products. For this
it is recommended to produce quality product with organic ingredients. This will
help in attracting new buyers and can charge higher prices. Due to increase
consciousness for healthy intakes. Consequently, it will build competitive
advantages for firm.
3. Bargaining power of Suppliers- In this strong power of suppliers due to scarce
resources in an industry affects the profitability of a company. In case of the firm
they are facing less force from its supplier due to easy availability from a local
cash & carry. But for acquiring its raw material from a local orgaic farm can
affect its profitability (Nitsenko and et.al., 2016). For this it is recommended to
build good vendor relationship as there are few organic farms in the region. Also,
they can go for backward integration strategy in few years to gain competitive
advantage.
4. Threat of substitute- In this buyer threats to use substitute products with less
switching cost and good quality. The firm faces this threat due to availability of
substitute products in the industry such as from dessert to healthy drinks and other
sweets. For this it is recommended to introduce new products by exploring
relevant markets in the same industry.
5. Threat of new entrants- In this force it determines the attractiveness of entering
in the industry. It intensifies when there is low capital, less government
regulation, similar products, and low threat from existing firms. In case of Little
dessert shop the firm faces high intensity of new entrants due to attractiveness of
the industry and its location of business. For this it is recommended to expand its
business by analysing needs of different segment (Plewa, Galán-Muros and
Davey, 2015). It can be done by targeting specific needs of customers and
providing great experience. They should focus more on delivering quality
customer centric services such as friendly environment, quality of experience with
attractive ambience and fast services

Analysis of macro environment factors which affect on organisation
The number of micro environment factors which are associated with organisational
performance. This factor has direct influence on the working of firm in the current business
environment. Some of these factors which influence the latest dessert shop are discussed below:
Economic factor: Economic factors are those which are related to the economic condition
of the area where the organisation is working. In context of the chosen organisation, there is a
number of factors impact the organisation economically. These factors are increasing GDP ratio,
better employment opportunities and many others. These Factor helping little dessert shop in
improving its working conditions as well as achieving its goals and objectives. Under these
economic factors organisation can use resources were better economic conditions will serve
effectiveness and performance of task.
Political factors: Political factors can also consider as an important part in relation to the
current organisation which will impact their performance in a direct way. Political factor include
political stability is within the area where organisation is working. In context of the chosen
organisation, it is operating environment of UK where it is required by the organisation to
perform its function in an appropriate we can conduct appropriate analysis of political elements.
There is political stability which help the organisation in improving its functioning. this will
improve organisational credibility as well as help in managing resources without any political
interrupt.
Social factors: social factors are those which are related to social trends in the society
which can impact on the organisation. Under the current case study, vacancy in the derivatives
factors which affect on the organisations. This is because organisation is operating in bakery
industry where it has to use current social trends according to needs and requirements. This is
helpful to the organisation in maintaining a better working environment where it can use the
social trends to improve its products and services and perform according to the requirement.
There are number of external environment factors which affect the organisation
performance. They will helpful to organisation in improving its function its objective in a timely
manner by using appropriate strategies.

CONCLUSION
From the above report it can be concluded that partnership firm “Little Dessert Shop” is a
successful type of business organisation. Both the partners have same background which help in
making good decision making and framing of strategies. It has been seen that company holds
strong relationship with its business environment. This helps in improving and expanding its
business activities (Schmiedel and vom Brocke, 2015). Company has used tools and models for
analysing its macro and micro environment. This has helped in expanding and improving its
business operations. Thus, partnership is one of the popular type in cafes and dessert shops. It
has resulted in effective business strategy.

REFERENCES
Books and Journals
Banerjee, S. B. and Jackson, L., 2017. Microfinance and the business of poverty reduction:
Critical perspectives from rural Bangladesh. Human relations. 70(1). pp.63-91.
Dos Santos, R. A., Méxas, M. P. and Meiriño, M. J., 2017. Sustainability and hotel business:
criteria for holistic, integrated and participative development. Journal of cleaner
production. 142. pp.217-224.
Falkner, R., 2017. Business power and conflict in international environmental politics. Springer.
Hardoon, D. R. and Shmueli, G., 2015. Getting started with business analytics: insightful
decision-making. CRC Press.
Nitsenko, V. and et.al., 2016. Business model for a sea commercial port as a way to reach
sustainable development goals.
Plewa, C., Galán-Muros, V. and Davey, T., 2015. Engaging business in curriculum design and
delivery: a higher education institution perspective. Higher Education. 70(1). pp.35-53.
Schmiedel, T. and vom Brocke, J., 2015. Business process management: Potentials and
challenges of driving innovation. In BPM-Driving Innovation in a Digital World (pp. 3-
15). Springer, Cham.