Introduction to Business - Individual Essay

Introduction to Busi-
ness - Individual Essay
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1 Evaluation of partnership..........................................................................................................3
2 Use of porter five force model..................................................................................................4
3 Macro environmental factors that contribute in improvement of business..............................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8
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INTRODUCTION
Business is process of making money by selling products and services to end users as per
its taste and preferences or it is organisation that is engaged in commercial activities to earn
maximum profit. Tourism and hospitality is one of the fastest growing business that have
recently adversely affected due to impact of Covid-19. This report is about one such company
named as Little Dessert shop that was started by two partner i.e., Sue Jackson and Mary Jones.
Therefore, it contain relevant information related to evaluation of partnership, porter five forces
and three macro factors that contributed in improvement of business.
1 Evaluation of partnership
Partnership is a term that means formal agreement between two or more individuals to
effectively operate and manages business equally or in definite ration so that enterprise can earn
maximum profit margin. In context of partnership business, all associated members are equally
responsible for taking accurate decision regarding business operations, sharing profit and losses
of firm. Partnership agreement can vary from person to person so there are several type of
partnership like general, limited partnership, limited liability partnership and public private
partnerships. It can be stated that partnership business has both advantages and disadvantages
that are illustrated below:
Advantages of partnership
Cost saving: One of the biggest advantages of partnership business is that both partners and
members are equally responsible for profit and financial loss of organisation. Sharing of
financial loss save both partners from heavy losses or mental stress. Thus, Mary and Sue both
have to bear any financial risk that arise form establishment and operation of business.
More business opportunities: Partnership contributes in sharing of resources, capital that are
required for smooth running of business operation. Mary and Sue can effectively use their
respective experienced and knowledge to make best utilisation of available opportunities for
growth and development of firm (Partnership – advantages and disadvantages, 2019).
Moral support: Another advantages of partnership is that it contribute in providing moral
support to owner or individuals that have planned to start and operate business in order to
achieve particular goals. Like in Mary can take decision related to cater as it have experienced in
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