Introduction to Business: Evaluation of Partnership and Porter's Five Forces Analysis

Introduction to
business

Table of Contents
PART-1............................................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Evaluation of partnership as a type of business organisation with reference to Marry and Sue's
Little Dessert Shop.................................................................................................................3
Porter's five forces framework to analyse 'Little Dessert Shop' business and suggestions for
Marry and Sue's to manage competitive advantage...............................................................4
Three macro environmental factors explanation and how they can improve business..........5
CONCLUSION................................................................................................................................6
PART-2............................................................................................................................................7
INTRODUCTION...........................................................................................................................7
MAIN BODY...................................................................................................................................7
Business idea and structure....................................................................................................7
Investment amount and type of capital required....................................................................7
Location, layout and equipment budgets................................................................................8
Human resource requirements for the proposed business and costing...................................9
Products offered with features and benefits...........................................................................9
Target market and how the business addresses target market with promotion plan............10
Identification of competitors................................................................................................10
Strengths and weaknesses of the proposed business with relation to competitors...............10
Unique selling points of the business...................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................12

PART-1
INTRODUCTION
Business is an economic activity which provides effective and essential returns to a
person in the market with the attachment of risk. There are various types of business which are
there in the market, which performs different operations to facilitate economy (Jena, 2020).
Business is one of the major factor which derives positive change in an economy and helps in
generation of employment in a country. In this report a case study of Little desert shop is taken
into consideration which is started by Marry Jones and Sue Jackson in a busy shopping mall at
Birmingham. This report uses case study to understand partnership and porter's five forces
model. This report also covers explanation of macro environmental factor's explanation and how
they can improve a business.
MAIN BODY
Evaluation of partnership as a type of business organisation with reference to Marry and Sue's
Little Dessert Shop
Partnership is a type of business which is started by two or more persons under which
they perform their business operations. In Partnership there is generally preparation of an
agreement which is known as partnership deed. Partnership deed contains sharing of profit and
loss which are earned during the running of a business. In this case study there are two partners
Marry Jones and Sue Jackson, who are from hospitality industry. They both decided have
decided to open a shop in Birmingham which sells desert items to the people. The capital
investment is shared by both of them which is £ 30000. All the business activities are performed
by both of them, also the risk associated with the business is handled by both of them. In
choosing the prices for their product in market, they both take mutual decisions. In partnership
business strategy formulation is done on the basis of advice between partners. In situation of this
case, Marry Jones and Sue Jackson are facing various issues in market due to COVID 19
situation and Pricing strategy for its products in the market. Impact of COVID 19 has stopped
Little desert shop operations for 3 Months as well as reopening of market in UK has provided
with various challenges to both of them. In partnership, there are more chances of conflicts due
to clash in mentality of two or more persons. There is also benefit of partnership in most of the
cases where there is a formulation of good decisions. In the case of Little desert shop, there is a

good mutual understanding between Marry Jones and Sue Jackson which is a good point. There
is a spirit of commitment of in both the persons as well as they both are dedicated to work for the
business in a well defined manner. In partnership business of Little desert shop, both the partners
have also decided to use organic food from market in order to gain competitive advantage. In
partnership there are also various challenges which comes in between the functioning of a
business (Kim, 2018). In the case of Little Desert shop, there is a major challenge which is faced
by Marry Jones and Sue Jackson which is, there shop is situated in busy place at Birmingham
that has more rivalry competitors. Expansion of business in market is also important for Little
Desert shop, in order to develop business in market, which will take support of partnership.
Porter's five forces framework to analyse 'Little Dessert Shop' business and suggestions for
Marry and Sue's to manage competitive advantage
Porter's five forces model is helpful in identification of various factors that affects a
business. Porter five force is one of the major powerful tool which is used by many organisations
to analyse the business environment in a precise manner (Porter's five forces model,2021). The
Porter's five forces also helps a business to gain competitive advantage, as well as helps a
business to maintain stability at the marketplace. The explanation of Porter's five forces model is
given below with the consideration of Little Dessert shop :
 Competitive rivalry- This factor under Porter's five forces states various competitors
which are present at the marketplace selling same product and services. The strength of
competitors majorly impacts a business's functioning at the marketplace. For Little
Dessert shop, there are various competitors present at the marketplace. As the shop is
situated in busy shopping area at Birmingham, there are various shops present in market.
 Supplier power- The power of supplier is referred to the capacity of suppliers to supply
raw materials to a business. It also helps in determination of prices which are fixed by
suppliers of a business. Little Dessert shop purchase organic raw material in bulk quantity
which helps the shop to minimise its production cost.
 Buyer power- Buyer's power is major strength of a business which states the strength of
customers available to a business. It also states the business, to determine the number of
customers as well as how big are orders of the customers. For Little Dessert shop, there
are various customers who are regularly consuming products and services of the shop. It
is also a major advantage for the shop in market.