Individual Report on Case Study

Individual report based on a case
study
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Table of Contents
INTRODUCTION......................................................................................................................... 3
MAIN BODY................................................................................................................................ 3
1. Evaluate partnership as type of business with reference to Mary and Sue..........................3
2. Porter 5 force model to analyse little dessert shop and how Mary and Sue can gain
competitive advantage.............................................................................................................3
3. three macro environmental factors and how it can improve business..................................3
CONCLUSION............................................................................................................................. 3
REFERENCES............................................................................................................................ 5
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INTRODUCTION
A business may be started in different ways such as in partnership, sole proprietorship, etc. This
defimes the form of business and its type. It is necessary to register business within law so that
all rules and regulations are applied. Also, there is need to analyse competition in market as
well so that accordingly strategy is developed. For that there are various models available. This
also helps in finding out factors that can impact on business growth and development. This
report will describe about case study of Mary and sue and their dessert shop. Also, it will be
explained about porter 5 force and 3 factor that can improve business growth (Durand, Grant, .
and Madsen, , 2017)
MAIN BODY
1. Evaluate partnership as type of business with reference to Mary and Sue
From case study it is identified that Mary and Sue has started a business. They both have
contributed equal amount of 30000 Euros in their business as working capital. However, in order
to fulfill more capital requirement there is nees of 20000 Euros that need to be taken as loan
from Bank. As both are working with equal capital amount so it is required that business is
regarded as general partnership type. In this partnership the profits distribution will be 50-50.
This is because they both have invested equal working capital amount in it. The partnership is
suitable type of business for Mary and Sue. In this both will be liable for profit and loss. They are
having common objectives for starting it and are responsible for their roles. Here, limited
partnership can not be considered as business type because in that each partner is liable for
limited liability. The risk shared are not equal as well in it.
Hence, general partnership agreement must be made between Mary and Sue for it. This will
make it easy for them to define their roles and responsibilities. (Ethiraj, Gambardella, and
Helfat, 2016)
2. Porter 5 force model to analyse little dessert shop and how Mary and Sue can gain
competitive advantage
The porter 5 force is a framework that is used to analyse competitive environment. It
considers 5 factors that derive business economies and attractiveness within industry in terms
of profitability. Similarly, for Little Dessert shop business as well this model is used to gain
insight about it. Thus, it is as follows :
Threat of substitutes- it refers to power in which it shows threat of substitutes available of
particular product in market. So, if there are more number of substitute available then power of
switching to other products is high and vice versa. However, Little Dessert shop is dessert shop
and there are several substitute available of dessert. Thus, people can easily use other
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