Establishing a Business Organization: Partnership, Porters 5 Forces, and Macro Environmental Factors

Business 1
Business organization
Name
Affiliation
Instructor
Date

Business 2
Table of Contents
Executive Summary........................................................................................................................3
Introduction...................................................................................................................................4
1.Partnership as a business.............................................................................................................5
2. Porters 5 Forces..........................................................................................................................6
3Macro environmental factors ................................................................................................................... 7
Conclusion......................................................................................................................................8
References.....................................................................................................................................9

Business 3
Business organization
Executive Summary
Establishing a business is a tricky venture. Frank Jones and Paddy Jacksons have established a Fra-
Pas Frozen Yoghurt Shop and it is essential for them to enter into a legitimate partnership. The
agreements signed will guide them on how to manage the business apart from setting guidelines on
how profits, losses and liabilities will be handled. On the other hand, it is prudent to have a better
understanding of the market and business environment in terms of competition, threats and
opportunities with the help of the Porters 5 Force Model. Lastly, this study presents factors in the
macro environment which influence how a business is run amidst these factors.

Business 4
Introduction
The business organization is a group of people or an individual who work together
with the aim of pursuing commercial interests. This is mainly in businesses that have the
main aim of getting products through the sale of services and products. There are different
kinds of business organizations with the main emphasis being the manner in which they are
structured. They include Partnerships, Sole proprietorships, limited liability companies, and
corporations.
Sole proprietorships are owned by individuals. They handle all tasks embedded in a
business such as acquiring and managing assets as well as bearing the losses or enjoying the
profits alone. Any debts and liabilities that the business faces are held by the sole
proprietors. Partnerships are also under business organizations. Here, two people or more
share ownership of the existing single business. There is no clear distinction between the
owners and the business according to law. In partnerships, legal agreements are used
because they set guidelines on how profits are shared, decisions are made, solving of
disputes how to admit more partners, how to buy out partners and the procedure in which
the partnership will be dissolved, (Charan, 2012). In addition, the use of time and capital
invested by each partner should be clearly laid out. Lastly, corporations are business
organizations that are mainly chartered by a country or state. The owners and the business
are two different entities that have been separated by law. As such, corporations can be
independently sued, taxed, and can also be part of contractual agreements. The people
owning the entity are the shareholders who elect directors to manage the business. In case