Introduction to Business

This document provides an introduction to the concept of business, including the different types of partnerships, an analysis of market competition using Porter's 5 forces framework, and an examination of macro environment factors. It discusses strategies for tackling market competition and adapting to changing trends.

Introduction to Business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1: Business Partnership-..............................................................................................................3
2: Porter’s 5 forces framework....................................................................................................4
3: Macro environment factors......................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
The process of buying and selling in order to earn money is called as business, in which
goods or services are being exchanged in context of taking appropriate prices. Little desserts is
an dessert option provider which provide wide range of desserts options to its customers.
Analysis of types of business partners is done in this report with that evaluation of market place
in context of porter five frame work is also done in this report.
MAIN BODY
1: Business Partnership-
Business is said to running in partnership if there are two or more people responsible for
profit or loss achieved by the organization through organizational activities. Organizations may
implement different types of partnerships as per their requirements through which it can
distribute the responsibilities equally among all partners. Following are the types of business
partnership.
General Partnership-
In this type of partnership, business partners are equally liable for managing organization and are
fully responsible for results which are achieved. Since both the partners share equal
responsibilities, therefore they are equally responsible for the debts of the organization, this can
be seen in case of little deserts where both that partners are equally responsible for managing
operations (Strydom and Rudansky-Kloppers, 2016). In this type of partnership the personal
assets of partner can also be seized if in case organization faces debt settlement.
Limited Partnership-
In this type of partnership organizations like little desert shop would be having more number
of partners than general partnership but in this case their partnership is not equally divided. But
instead their partnership is divided on the bases of their contribution for organization, since
increment in partnership will increase their liabilities towards organization due to which it is one
of most complicated form of partnership.
Limited liabilities-
In this type partnership organization is having limited sharing partnership with other
organization due to which it is able to provide new customer attracting products and services to
its organizational customers. This short time collaboration of organization will allow little desert

shop to get multiple partners, which will provide it an advantage of getting high revenues and
with that wide variety of products would also be provided by organization. This is one of the
most effective ways of partnership because these collaborations are made on experimental bases
which can be easy broken if they are unable to achieve results as per expectations.
2: Porter’s 5 forces framework
It is important for the organization to evaluate current market competition by which it analyse
the requirement for developing effective strategies for tackling market competition. This tool
enables little desserts to improvise its working as per changing market trends allowing a
improved performance in front of customers (Cox, 2019). Following is the porter five analyses
for little dessert shop.
New entry of competition
Many other organizations provide dessert options similar to little dessert shop due to
which market competition is having wide range of customers. However little company can
implement creative customer attracting schemes due to which it can attract customers towards
the organization and at the same time maintain existing organizational customers. Organization
can enhance its advertisement methods such that it is able to increase its customer count due to
which it can achieve a high market share. This increased market share will allow organization to
limit the new entrance in the market due to which it can maintain its efficient economical
growth.
Existing market competition
Competition is increased in various sectors and can also be seen in the field of little dessert
store, because of which there are wide range of options available in the market place which are
able to provide several unique creative products for attracting customers. Thus by providing
creative and rare products to customers, little dessert can efficiently tackle existing market
competition.
Bargaining power of suppliers
Suppliers are one of the most efficient assets of organizations like little desert store
because on the basis of this raw material they are able to develop products which are required for

showcasing to customers. Thus it is important for little dessert store that it maintain a good
relation with its suppliers by which it can get creative discounts and will also reduce the chances
of increasing supply charges.
Bargaining power of customer
Customer are the main reason for which organizational activities are done, thus little dessert
must provide creative discount offers to its customers by which it can increase their purchasing
of organizational products. Thus little dessert must maintain effective relation with its customers
by which it can increase their loyalty towards the organization which will lead to better
performance at the market place (Grosser, Moon and Nelson, 2017. ).
High chances of brand switching
There are a lot of large organizations in the market which have developed a base for
themselves in the market in this department therefore this is a great threat for the company. It is
going to be difficult for the Shop to be able to make a place for themselves in this competitive
industry but having experience is going to make Little Dessert Shop be able to get the base that
they expect which is going to be very good for the functioning.
3: Macro environment factors
It is important for company to understand the external factors which influence the
organizational working because if the organization is not able to improvise its working as per
market trends then chances of brand switching by customer will increase. With that it also allow
organization at effectively understand the requirements such that high results can be achieved at
minimum expenditures. Following are the external factors which affect the organizational
working of little dessert.
Social factors
These are the external factors which affect the organizational working of little dessert, these
factors comprises of activities such as customer requirements and current market trends due to
which organization has to implement changes in organizational structure. By changing
organizational structure as per changing market trend little dessert store would be able to attract

trendy crowd towards the organization, but with that it will also provide company an ability to
provide new variety of products to its organizational clients. Through this strategy little dessert
can increase customer’s engagement with the organization which will lead to increment in
organizational sales.
Economic factors
Economic factors comprises of the financial limitation which organization is having, this
financial strength of little dessert to maintain the flow of services to its customers. However with
certain investments, little desserts can invest some capital in advertising itself to a wide range of
customers. Through this capital investment company can not only promote itself to customers
but can also provide wide range of products to showcase to its customers (Greener and Martelli,
2018). By doing so, it can maintain their loyalty towards the organization, which will increase
their loyalty towards the organization resulting better organizational sales.
Environmental factor
Little desserts provide wide range of desserts options to its customer which allows it to attract
customer towards the organization resulting increment in sales. However environmental factors
can affect organizational working because in recent times of COVID-19, customers are showing
high interests in utilizing organic products. Thus little desserts can implement creative organic
food options in its products such that it can provide new and attractive products to its customers
(Burton, 2019). Through this new and creative product little desserts can implement premium
pricing because it is providing rare items to customers; therefore organizational sales can be
increased.
CONCLUSION
From the above analysis it can be concluded that due to increasing competition and COVID-19
customer are changing the ways of buying and utilizing products. Thus little desserts must
implement organizational changes such that it is able to improve its performance in front of its
customers which will result in improvement in organizational sales. For achieving this little

desserts has to evaluate market competition such that it can improvise its working as per
changing market trends.

REFERENCES
Books and journals
Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business management.
Oxford University Press Southern Africa.
Cox, R.W., 2019. Introduction: bringing business back in—the business conflict theory of
international relations. In Business and the state in international relations (pp. 1-7).
Routledge.
Grosser, K., Moon, J. and Nelson, J.A., 2017. Guest editors’ introduction: gender, business
ethics, and corporate social responsibility: assessing and refocusing a
conversation. Business Ethics Quarterly. 27(4). pp.541-567.
Greener, S. and Martelli, J., 2018. An introduction to business research methods.
Burton, N., 2019. Guest introduction Quaker business, industry and commerce: new critical
perspectives and pathways. Quaker Studies. 24(2). pp.181-188.
1

2