Business Process Management and Sustainability

This report focuses on the key aspects of business process management and its application in a sustainable environment, using the example of a yoghurt manufacturing business. It highlights the importance of adapting to seasonal demands, competitive analysis, and effective pricing strategies to achieve market success. The assignment also emphasizes the role of partners' contributions in achieving sustainable growth and market share.

Introduction to Business

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Evaluate Partnership form of business....................................................................................1
1.2 Porter 5 forces to analyse partnership business.....................................................................3
1.3 Macro-environmental factors to improve Frozen Yoghurt business.....................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................5
Books and Journals.....................................................................................................................5

INTRODUCTION
There are different forms of business organisation such as Sole proprietorship,
Partnerships, corporations etc. out of this the people should need to decide which types of
business organisation they want to operate. Every form of organisation required to adopt some
legal configurations which indicates the rights and liabilities of member in the business's
ownership, personal liability, life span, control and financial structure. In this report, the two
person i.e. Frank and Paddy decide to start the “Fra-Pa's Frozen Yoghurt Shop” business in
partnership form in Bullring Centre situated in Birmingham where they both can perform
different roles and responsibilities to achieve their business's desired goals and objectives (Jeston
and Nelis, 2014). In this report the Porter five forces are need to be mentioned din order to
analyse the competitive environment.
1. Evaluate Partnership form of business
Partnership is one of the form of business organisation where two or more person come
together and form an agreement in which they make an agreement to follow terms and conditions
related to their roles and responsibilities to run partnership business more smoothly in order to
achieve their common desired goals and objectives. For example In given case study the two
partners Frank and Paddy mutually decide to start Fra-Pa Yoghurt business (Lang, 2013).
Therefore they both are responsible to bring resources and contribute their experience in order to
carry out the business smoothly. They have to form partnership deed in which the roles and
responsibilities and liabilities of both are clearly defined. Here are the some advantages and
disadvantages of partnership business:
Advantages:
Easy to form: As a partnership can easily formed without following any legal formalities
therefore Frank and Paddy both who decide to start a business in partnership form should not
required to contribute more efforts as they can form partnership business through simple
agreement either in oral or written (Kuckertz and Wagner, 2010).
Availability of Larger resources: As two or more person are required to form partnership
business therefore the availability of resources are high as compared to sole proprietorship form
of business organisation.
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Better decision: In partnership business, the partners should contribute their knowledge
and experience while formulating any business plan therefore the chances of taking effective
decision should be more which directly helps in the performance of business.
Sharing of Risks: As the there are two partners in Fra-Pa Yoghurt business therefore if
any losses incurred in business then it should be shared by both of them as per the agreed ratio
(Birge and Louveaux, 2011).
Benefits of specialisation: As the partners who come together to form a partnership
business may have different knowledge and skills in their different specialization therefore if
they both contribute their skills and knowledge in the operation of business should have chance
to make business more successful in future. In given case study One partner Frank has skills of
playing a role of chef where other partner has skills in hospitality through which they can
contribute to the performance of business in effective and efficient manner.
Disadvantages:
Unlimited liability: The partners involved in partnership business are personally liable
for any debt and obligations. It means if the business incurred huge losses then personal property
of both the partners should be utilised in order to make repayment of all their firm's liabilities.
Instability: In the given case study the business is depend on the two partner i.e. Frank
and Paddy and if any uncertainty occur such as death, insolvency or the retirement of any
partner, the stability of business comes in danger (Axler, Bourdon and Wade, 2013).
Possibility of conflicts: As there are two or more person come together to form
partnership firm may carry different opinions and views on certain things therefore the
possibility of conflicts are high which may affect the business adversely.
Lack of public confidence: As the information of operation of the partnership business
are not open to public and keep secret through which public does not have much confidence. The
government control are also less on the operations of partnership business.
1.2 Porter 5 forces to analyse partnership business
In order to attain competitive advantage for any business, it should required to do
analysis of market situation through using Porter five forces which helps in understanding the
competitive environment:
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Bargaining power of Buyers: There are large number of dairy products available at
different shops in Bullring shopping centre in Birmingham therefore the consumers prefers those
shop's products which provides good quality product at low prices that will help them in
enhancing their bargaining power (Khurana, 2010). Therefore it should required for business to
enhance their quality of product and offers discount on them in order to attract large number of
customers.
Bargaining power of suppliers: The bargaining power of suppliers in the yoghurt
business is low because of the nature of the product. Therefore It is important for the business to
use high quality of milk in their products and comply government regulations in order to
maximise standard of living of customers (Varnali and Toker, 2010). The Fra-Pa's Frozen
Yoghurt Shop has particular suppliers to get quality of milk which help them in offering best
quality of product to their customers.
Threats of substitutes: There are different shops located in Bullring Centre in
Birmingham which provides similar products at different prices. The customers are likely to
differentiate the substituted products on the basis of their price and quality to meet their needs.
Therefore the business should need to produce quality products at low prices in order to compete
with substitute products which helps in restricting the loyal customers not to switch from their
product to other substituted products.
Threats of new entrants: There are some laws and standards that the business should
need to comply such as laws on food safety, customer royalty and contracting to milk suppliers
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etc. while running the business (Dumas and et. al 2013). As the yoghurt products are most
perishable which required high turnover and reliable supply chain as well as distribution
channels therefore the barrier of entry of new competitor are low.
Competitive rivalry among competitors: The business should need to provide
competitive product than their rival company in terms of quality and price which help the
business to attain highest market share and growth in future. The business should need to identify
the strength and weaknesses of their rival which help new business to grab the opportunities to
compete with their rival's product and services.
Therefore in order to attain highest market share the partners of Fra-Pa's Frozen Yoghurt
Shop need to clearly evaluate the situation of their rival shop and produces better quality of
products and services which helps them in gaining competitive advantage (Kolk and Van
Tulder,2010). They should need to focus that how they attract customers towards their shop's
products and implement actions accordingly. As the customers prefer those shop's products and
services which satisfy their needs and demands at low prices therefore the business should need
to control their prices and offering discounts on the price of their product in order to attain brand
image in the market.
1.3 Macro-environmental factors to improve Frozen Yoghurt business
There are overall six external factors which helps in analysing the business structure that
will help to sustain in competitive environment through providing quality products at less prices
Out of the six external factors, there are three important external factors which are as follows:
Social: As the consumers are aware about the quality of products therefore the business
should need to use fresh milk in their product so as to achieve large number of customers. They
also need to produce yoghurt without using sugar in order to attract diabetes patients
(Achtenhagen, Naldi and Melin, 2010). Therefore the business can only be achieve growth in
future if they divide the market segment and accordingly produce products in order to fulfil their
needs and demands of the different customers.
Technological: Fra-Pa's Frozen Yoghurt Shop need to use advanced technology in
producing their products as well also needed for partners to reach their business's products across
different places through promoting their goods in order to attract large number of customers.
They should need to use various promotional techniques such as advertisement, pamphlets,
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brochures etc. which helps them in communicating about their products they offer to large
number of customers.
Environmental: The demand of the yoghurt increases in summer season therefore the
sales of the business are comparatively low during winter season (Zur Muehlen and Recker,
2013). Therefore the business should need to implement business plan according to the seasons.
For example the business should need to charge high prices when the demand of yoghurt rises
whereas in winter season they should need to lower the prices of product because of the limited
demand.
CONCLUSION
As per this report it can be concluded that before start the business in partnership form
the partner should need to contribute to the function of business as per agreed ratio. Combined
efforts of partners enable the business to achieve sustainable growth in market. Therefore in
order to attain highest market share in competitive environment it is essentially required for
partners to make comparative analyses of competitors products and services and implement
actions accordingly to fulfil needs and demands of the customers.
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REFERENCES
Books and Journals
Jeston, J and Nelis, J., 2014. Business process management. Routledge.
Lang, S., 2013. Complex analysis (Vol. 103). Springer Science & Business Media.
Birge, J. R and Louveaux, F., 2011. Introduction to stochastic programming. Springer Science &
Business Media.
Axler, S., Bourdon, P. and Wade, R., 2013. Harmonic function theory (Vol. 137). Springer
Science & Business Media.
Khurana, R., 2010. From higher aims to hired hands: The social transformation of American
business schools and the unfulfilled promise of management as a profession. Princeton
University Press.
Dumas, M and et. al 2013. Fundamentals of business process management (Vol. 1, p. 2).
Heidelberg: Springer.
Kolk, A and Van Tulder, R., 2010. International business, corporate social responsibility and
sustainable development. International business review. 19(2). pp.119-125.
Achtenhagen, L., Naldi, L and Melin, L., 2010. “Business growth”—Do practitioners and
scholars really talk about the same thing?. Entrepreneurship theory and practice. 34(2).
pp.289-316.
Zur Muehlen, M. and Recker, J., 2013. How much language is enough? Theoretical and practical
use of the business process modeling notation. In Seminal Contributions to Information
Systems Engineering (pp. 429-443). Springer, Berlin, Heidelberg.
Varnali, K. and Toker, A., 2010. Mobile marketing research: The-state-of-the-art. International
journal of information management. 30(2). pp.144-151.
Kuckertz, A. and Wagner, M., 2010. The influence of sustainability orientation on
entrepreneurial intentions—Investigating the role of business experience. Journal of
Business Venturing. 25(5). pp.524-539.
Online
Five Forces by Michael Porter . 2017 [Online]. Available through: .
<http://masonmyers.com/five-forces-michael-porter-business-fundamentals/>.
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