Analysis of Fra-Pas Yogurt Shop's Partnership Business

The assignment provides a detailed analysis of the partnership business of Frank and Paddy's Fra-Pas Yogurt Shop. It uses key performance indicator tools to measure the success factors of the firm and identifies opportunities for growth and development in the market place. Additionally, Porter's Five Forces tool is used to analyze the competitive advantage of Fra-Pas Yogurt Shop. The assignment also discusses macro environmental factors that can help improve the operation of the shop, as well as recommendations.

ASSESSMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1.Evaluate partnership business of Frank and Paddy Fra-Pas Frozen Yogurt Shop...................1
2. Porters Five Forces to analyse the competitive advantage of Fra-pas Yogurt Shop of Frank
and Paddy....................................................................................................................................2
3. Three macro environmental factors that can help Fra-pas Yogurt Shop of Frank and Paddy
to improve the operation.............................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Business is the activity of making one's living or making money by producing or buying
or selling products such as goods and services. There are various types of businesses which are
service business, merchandising, manufacturing, hybrid, sole proprietorship, partnership, limited
liability company and many others (Cohen, 2017). In this present report, the details of
partnership will be discussed. The current report is bases on the case study of partnership
business of Frank Jones and paddy Jackson as they are running the business of Fra-Pas Frozen
Yogurt Shop. Furthermore, this report will evaluate the partnership business of Frank and Paddy
as well as advise them to gain the competitive advantage by managing relationship with external
parties.
MAIN BODY
1.Evaluate partnership business of Frank and Paddy Fra-Pas Frozen Yogurt Shop.
Overview of Fra-Pas Frozen Yogurt Shop
Fra-Pas Frozen Yogurt is the small partnership business of Paddy Jackson and Frank
Jones. It was started last eighteen months ago. It is an ice-cream parlour style shop that is
specialises in selling frozen yogurt. Shop is located in Bullring Shopping Centre in Birmingham.
Both Frank and Paddy is had contributed £30,000.
There are three types of business organisations which are-
 Sole Proprietorship- It is a type of business which is owned and control by only a single
person or individual.
Advantages Disadvantages
 It is easy to form.
 Control and Management remains in
the hand of single person or owner.
 Owner enjoys profit.
 Owner is personally liable for all
business liabilities and losses.
 Partnership- It is the type of business which is owned and control by two people jointly.
Advantages Disadvantages
1

 Easy to formation.
 Large resources.
 Skilled are combined and balance
judgement.
 Profit and losses are shared among
partners.
 Risk is also shared.
 Lack of harmony.
 Limited resources
 Instability.
Corporation- It is a large or group of companies authorized to act as single entity and
recognised in law.
Advantages Disadvantages
 Shareholders are not liable for any
dents incurred or any judgement
handed down against the corporation.
 Limited liability.
 Ownership can be transfer.
 Double taxation.
 Excessive filling of tax.
Partnership is defined as the form of the business where two or more than two people
share ownership along with the responsibilities of managing the organisation as well as profit
and loses of the organisation.
The partnership business which was carried out by Frank and Paddy is for selling Frozen
Yogurt form last eighteen months ago. They are running the business very smoothly but they
have to make some changes and amendment by taking advantages in the market. The main
successful factor of there business is that both have a good experience in the hospitality industry
as Frank was a chef in his last job and Paddy was hospitality manager in local hotel. In order to
evaluate there partnership business, identify the advantages of there business is the best way.
Here are the advantages of the partnership business of Frank and Paddy which are as follows-
Easy to form- This is main advantages of partnership that it is formed very easily. There
is no such huge formalities are required in forming the business of partnership like in joint stock
2

company (Dür and Lechner, 2015). In the present case study the formation of the partnership
between Frank and Paddy takes place very easily as they both contributed £30000 and they take
loan of £20000 from bank and start there business.
Favourable Credit Standing- This is another advantage of partnership business as they
enjoy the effective credit rating in front of creditors because of unlimited liability of both the
partners. Financial organisation easily pass the loans or advances to the partnership firm. In the
partnership business of Frank and Paddy they took loan form bank of £20000.
Greater Management Ability- The management ability in partnership business is very
effective and efficient because of more than one owner within organisation. In the partnership
firm of Frank and Paddy, the main strength is that both have a good experience in the hospitality
industry which in result great management in the firm. In addition to this, Paddy was hospitality
manager in the local hotel which is also a good advantage of there effective management at shop.
Profit Incentive and loss- The profit of there business are being shared among both the
partners. The sales and revenue of there shop was growing very strongly. On the other hand, loss
will also be share between them equally (Cañeque and Hart, 2017).
Effective decision making- This is also one of the best advantages of their partnership
firm. In the present case study of Frank and Paddy, the decisions which they have taken are very
effective for their business such as location of the shop is very good, target customers,
management techniques on weekends is very effective, use of organic ingredient etc.
In addition to this, Frank and Paddy can also use some tools in order to evaluate the performance
of there firm which are as follows-
Key performance Indicator- It is the type of indicator which measures the performance
of the organisation. It evaluated the success of the organisation. Frank and Paddy should use
some performance indicator in order to measure the success of there firm such as profit, cost,
Day sales outstanding, customer lifetime value, customer satisfaction and retention and spending
on promotion. By this metrics, the success factor or performance will be evaluated.
2. Porters Five Forces to analyse the competitive advantage of Fra-pas Yogurt Shop of Frank and
Paddy.
The business of Frank and Paddy is running very effectively thus it will be very better for
the organisation that they should gain the competitive advantages in the market. In addition to
this, it will also very fruitful for the organisation if they gain the competitive advantages from
3

external factors (Wettstein, 2015). Porter's five forces is the best model that they can use to gain
the competitive benefits from in the market. There are five forces which are as follows-
Power of Suppliers- This is pressure exerted by the suppliers on the firm in order to raise
the price of the raw material. The power of suppliers tens to high because of small size of
business. They cannot maintain relationship with many suppliers (Storey and Salaman, 2017).
But in order to control the power of suppliers, the best way is that Frank and Paddy should
switch to others as raw material for making yogurt are easily available in the market
(Wangsirilert and Simon, 2017). In addition to this, in order to gain the competitive benefits in
the market, they can also make the relationship or contract with suppliers who are selling only
organize products such as farmers etc.
Power of Buyers- This is also one of the great force that is exerted by the buyers on the
company. In the business of Frank and Paddy, the power of buyers is high because there are so
many shops around there shop. Thus, they have decided to keep the prices low so that they can
attract many customers and for those products which are made up off organic products, the price
of those products will be high.
Threat of Competition- The business of Frank and Paddy is facing cut-throat competition
in the market. The threat of competition is very high. The location of the shop is on the centre of
Bullring Shopping Centre in Birmingham where so many food ventures but no any food ventures
are serving Frozen Yogurt. Thus, this is the best competitive advantage that there is no other
shops of frozen yogurt is located in nearer to there shop. Frank and Paddy can raise the share of
profit and revenues by offering the best quality of services (Christensen and Bach, 2015). At
present there is no any other Yogurt Shop where it is located but in future if any other competitor
can come, they should have to increase the range of Yogurt like in flavours, taste, packing etc.
Threat of new entrants- This is the force that considered how easy or difficult it is for
competitors to join the market place. Frank and Paddy is dealing in the Frozen Yogurt, thus the
investment is not so high that any other firm or business cannot able to enter the market for the
same business. Thus, the threat of new entrants is high. In order to control the threat, Fra-Pas
Frozen Yogurt can build up the recognised brand name which makes someone difficult to enter
in the market.
Threat of Substitute- This force examines how it is very easy for customers to switch
from one product to another product of the company. The partnership business of Frank and
4

Paddy is located in the area where no any food ventures are serving Frozen Yogurt. Thus, the
threat of substitute is low.
3. Three macro environmental factors that can help Fra-pas Yogurt Shop of Frank and Paddy to
improve the operation.
Technological Factors- This is one the leading external factors that leads to impact the
entire operations and functions of the restaurant. Frank and Paddy can use the advance
technologies to make the dishes most fast and tasty such as grinders, Whisks and Forks, Ice-
cream machines, Sieve, Blowtorch etc. It is truth that technology improve the experience of
guest. In addition to this, they can also use voice payment as well as billings which is a
convenient mode of payment (Uhl and Gollenia, 2016). Robot services can also used to improve
the waiter services as well as it reduces the cost of labour.
Social Factors- This is also one of the biggest factor that impact the entire operations and
functions of the firm. Social factors includes demographic location, social status, living standard
and ethnic background. In order to control the impact of social changes and take opportunities in
the market, Frank and Paddy should use the product of organic ingredient as organic food are
exploding all over the world. With the use of organic food, Frank and Paddy can able to
convenience their customers to consume healthy food.
Economic Factors- This is factor that includes the rate of inflations, unemployment,
taxes and recession. In UK the economic condition is fine which is a great opportunity for the
company to raise there revenue and profit (Hansen, Rutt and Acheampong, 2018). Frank and
Paddy can expand there business in the market by taking advantages of stable economic
condition in United Kingdom.
Recommendation
1. Technological- Frank and Paddy can also use voice payment as well as billings which is
a convenient mode of payment. Robot services can also used to improve the waiter
services as well as it reduces the cost of labour.
2. Social- Fra-Pas Yogurt Shop - should use the product of organic ingredient as organic
food are exploding all over the world. With the use of organic food, Frank and Paddy can
able to convenience their customers to consume healthy food.
5

3. Economic- Frank and Paddy can expand there business in the market of Bullring
Shopping Centre in Birmingham by taking advantages of stable economic condition of
United Kingdom.
CONCLUSION
From the above report, it is concluded that partnership is the easiest form of business.
The report also evaluated the partnership business of Frank and Paddy of Frozen Yogurt
business. Key performance indicator tool was also used to measure the success factors of the
firm which provided opportunities to grow and develop in the market place. In addition to this,
Porters Five Forces tool was also used analyse the competitive advantage of Fra-pas Yogurt
Shop of Frank and Paddy. At last, macro environmental factors that can help Fra-pas Yogurt
Shop of Frank and Paddy to improve the operation as well as recommendations was also
discussed in this assignment.
6

REFERENCES
Books and Journals:
Cañeque, F.C. and Hart, S.L. eds., 2017. Base of the Pyramid 3.0: Sustainable development
through innovation and entrepreneurship. Routledge.
Christensen, D. and Bach, L.T., 2015. A Danish–Vietnamese partnership for business and
technology development in solid waste management. Resources, Conservation and
Recycling, 105, pp.123-133.
Cohen, E., 2017. CSR for HR: A necessary partnership for advancing responsible business
practices. Routledge.
Dür, A. and Lechner, L., 2015. Business Interests and the Transatlantic Trade and Investment
Partnership. The Politics of Transatlantic Trade Negotiations: TTIP in a Globalized World,
Farnham: Ashgate, pp.69-79.
Hansen, C.P., Rutt, R. and Acheampong, E., 2018. ‘Experimental’or business as usual?
Implementing the European Union Forest Law Enforcement, Governance and Trade
(FLEGT) Voluntary Partnership Agreement in Ghana. Forest Policy and Economics, 96,
pp.75-82.
Storey, J. and Salaman, G., 2017. Employee ownership and the drive to do business responsibly:
a study of the John Lewis Partnership. Oxford Review of Economic Policy, 33(2), pp.339-
354.
Uhl, A. and Gollenia, L.A. eds., 2016. Business transformation management methodology.
Routledge.
Wangsirilert, C. and Simon, L., 2017. How large-scale companies and social enterprises improve
the sustainability of their partnership?: The case study of IKEA and Doi Tung social
enterprise in Thailand.
Wettstein, F., 2015. Normativity, ethics, and the UN guiding principles on business and human
rights: A critical assessment. Journal of Human Rights, 14(2), pp.162-182.
7