Little Dessert Shop Case Analysis: Business Overview and Strategy

This report provides a comprehensive case analysis of the Little Dessert Shop, a UK-based food and beverage venture. It begins with an introduction to the business, highlighting its product offerings and market success since its establishment in 2015. The report explores different types of business structures, focusing on the application of the partnership model to the Little Dessert Shop. It then delves into a detailed analysis using Porter's Five Forces framework to assess the competitive landscape, including competitive rivalry, supplier power, buyer power, the threat of substitution, and the threat of new entrants. The report also examines the macro-environmental factors impacting the business, such as political, economic, technological, and legal considerations. The conclusion summarizes the key findings, emphasizing the importance of strategic decision-making and adaptability in maintaining the organization's growth and competitive edge within the food and beverage market. References from books and journals have been included in the report.

Running Head: Little Dessert Shop
Little Dessert Shop Case Analysis
Introduction to bussines

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TABLE OF CONTENTS
Introduction......................................................................................................................................2
Main body........................................................................................................................................2
Different kinds of business and application.................................................................................2
Porter’s five forces framework....................................................................................................5
Macro-environmental factors and its impact on business............................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
The purpose of the study is to explore the different types of business and its application to
the considered case study on Little Dessert Shop. Basically, the Little Dessert Shop is a UK
based food and beverage venture which innovates different exclusive range of cookies, coffee
crepes, cheesecakes, etc. since 2015. In these few years of establishment, this venture has gained
huge success in the market place. Currently many of people within the United Kingdom very like
to buy products and services due to its an extra-ordinary quality. The partnership structure will
be explored and applied to the considered case study. The macro-environmental analysis will be
done to analyze the impact of the microenvironment on the partnership business. The
competitors will be analyzed using the analysis tool known as Porter’s Five Forces. The
considered case study focuses on developing a customary partnership venture where the growth
is good and it requires an effective strategic decision to be applied for the business continuity.
Main body
Different kinds of business and application
Partnership is the concept to run a business to by involving one or more than one person
within the business environment as an owner. When a business is operated by two or more than
two persons, them that business is known as a partnership business in the market place
(Sosnowska, 2016). Currently there are many partnership businesses exists in the market place,
and many of people are gaining huge profit margins by this concept in the market place. In this
dynamic and modern world, when two persons wants to start a new venture together, then they
are highly required to follow a legal procedure of its country’s business law (Visconti, 2016).

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There are various kinds of businesses. These are given as follow:
 Proprietorship
 Partnership
 Corporation
 Limited Liability
Proprietorship indicates the most common and simplest form of business ownership. it is
operated by someone for their sole benefit and the owner makes independent decisions.
Partnership business offers the partner the right to invest property, labor, and money to the
business (Suryanti, Sumardjo, Syahyuti & Tjitropranoto, 2019). The owners are responsible for
all debts. In the limited partnership structure, the partner makes a certificate to limited liability
and will only pay the debt to a limit.
The corporation indicates the income generated will be considered as a personal income. The
distribution of profit is shared but the tax is changed as a personal income from the distributed
profit.
Limited Liability Company is similar to that of limited partnership where the partner is
offered some advantages.
Application of partnership concept
A partnership business requires two or more two partners to jointly make a venture to
stand the business and operate it. (Partey, Nikoi, Ouédraogo & Zougmoré, 2019). . The
considered case depicts the characteristics of an organization which involves in full partnership
business where the owners are ready for making all investment and bearing all debt associated

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with the company as Mary Jones and Sue Jackson are the partners sharing 50-50% share of the
business
There are some key advantages and disadvantages of partnership has been discussed
below;
Advantages of partnership
Two heads (or more) are better than one: This is the first advantage of partnership, in which
when a business has two or more than partners, then they all use their intellectuality in growing
the business. In this situation, intellectuality of one head always gives the limited growth in
comparison of two or more heads (Enea, 2016).
Sharing risks: No business can run its operations within the selected market place without
considering different risk factors in market place. In this situation, partnership provides the best
solution to a business man for sharing its risks in market place.
Disadvantages of partnership
Raises conflicts: This is the first and key disadvantage of partnership, in which mostly there
many conflicts raises between different partners of a business. Basically, each person has its own
mind-set and mentality, in which while operating a business together, two or more heads always
wants to make such changes in the workplace which are appropriate according to their mind-set.
Hard to find appropriate partners: This is another major disadvantage of a partnership firm, in
which upper management of Little Dessert Shop have to understand this little thing that, trust is
everything to a business, so it will hard to management for finding an appropriate or honest
partner in marker place (AthuluruTlrumala and Ytrre, 2019).

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These all are major advantages and disadvantages of partnership. However, partnership
always provides higher advantages to a business in comparison of disadvantage, so upper
management of Little Dessert Shop can use partnership term while management feels necessary
to use it, because partnership mostly provides great growth opportunities in market place.
Porter’s five forces framework
Porter’s five forces help to analyze the organizational position in the competitive market
scenario.
Competitive Rivalry
The organizations have a large number of rivals which are situated near it. These
competitors can cause damage to the revenue generation through the effective use of the products
and similar kind of service (Anwar, Ashraf & Alam, 2018).
As Sue and Jones had a background of working experience from a reputed organization,
they could manage to develop taste and service quality so high that other competitors fall back to
compete against the organization. The high-quality product at an affordable cost helps to gain a
competitive advantage over its peers.
Supplier’s power
The suppliers have the power to raise the price of raw materials and can affect the cost of
production. It will have an impact on revenue and profit. The industry has a lot of suppliers
(Anwar, Ashraf & Alam, 2018). The organizations in the industry have an option to switch to
another supplier.

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The organization under Jones and Sue purchase raw material at the low cost by the policy
of cash payment. It helps the organization to buy the product at the lowest possible cost and help
to produce the product at a lower cost.
Buyer’s Power
The customer in all industries has the power to affect the organization. It is the same in
the industry. Brand loyalty and customer satisfaction are to be generated (Mukhtar, Williams &
Shaw, 2017). The buyer has to understand the cost of switching to another retailer. It is the taste
of retailer and service quality that are offered by the organization.
In the operational region, the organization has created a unique taste and quality of the
product which prevents the customer to engage in other organizations. The buyer can hardly
switch as the organization offer s high-quality taste along with better product quality at an
affordable cost.
Substitution
The arrival of a new product with a similar taste can affect the sales and distribution of
the organization. The kind of similar product weakens the company’s position and has a deep
impact on the organization (Allen et al., 2020). A substitution is a quite easier way to weaken
organizational position.
The organization has unique product quality and can hardly be affected by other rivals
making similar products. It may affect the organization slightly in terms of profit and brand
position. The brand image that it has built over time with its taste and service quality can protect
the organization of Jones and Sue.

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New Entrant’s Threat
The threat of new entrants affects organizational progress. The impact on the
organization is greater as the entry is not a barrier (Levy, Morecroft & Rashidirad, 2020). The
new entrant can affect the organizational progress as their entry will affect the organizational
revenue.
Ways in which Mary and Sue maintain an effective relationship with all five forces
The threat of new entrants is indeed there, but the organization continues to develop new
products, improves product quality, and enhances customers. The strategy will work and
customer loyalty and customer satisfaction can help to allow constant growth. There are Mary
and Sue need to maintain an effective relationship with all five forces of market, because these
factors can affect business in both ways, positively and negatively (Dinh, 2016).
Macro-environmental factors and its impact on business
There are economic, social, technological, legal, political and environmental six major
factors of Little Dessert Shop’s macro business environment.
Political: There is good political stability in the country under the government of Boris Johnson.
Except for the Brexit issue, there is little or no political threat to the organization. The single-
party government can take an effective decision on the economy (Sridhar, et al., 2016). The
weekend and weekday change the nature of the customer.
Economic: The economic condition is unstable as the GDP of England is deeply affected in the
post-pandemic situation. The positive growth in GDP presents a good sign of business
development and the resumption of business order.

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Technological: technology in the industry helps to process and preserve food. It is the support of
technology that helps to prevent the food from destruction. The technologically advanced nations
have all technical availability to the organization to produce food in cost-effective (Anwar,
Ashraf & Alam, 2018).
Legal: Pollution is one of the most significant aspects of business and the environment. The
organization needs to adopt green technology emitting less carbon in cooking and roasting. The
prevention of pollution increases the cost of cooking and reduces the profitability of the
organization.
Conclusion
It can be said the organization depicts a good and effective partnership with a combined
understanding and decision along with the technical knowledge of the industry. The organization
has the threat of substitutes and therefore, improvement of taste and quality of the product needs
a regular consideration with the joint effort to effectively manage the organization at a greater
scale.

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References
Books and Journals
Allen, J., Piecyk, M., Cherrett, T., McLeod, F., Oakey, A., Piotrowska, M., ... & Friday, A.
(2020). Combining on-foot porters with vans for last-mile parcel deliveries: results of a
study in central London. World Review of Intermodal Transportation Research.
Anwar, B., Ashraf, M. I., & Alam, A. (2018). Opportunities and Risk Factors in Public-Private
Partnership on Energy: A Critical Analysis of Solar Photovoltaic Plant at
Bahawalpur. Global Political Review. 3(2). 61-74.
Levy, P., Morecroft, J., & Rashidirad, M. (2020). Developing a transformational digital strategy
in an SME: The role of responsible management. Emerald Open Research. 2(52). 52.
Moro Visconti, R. (2016). Healthcare public-private partnerships in Italy: assessing risk-sharing
and governance issues with PESTLE and SWOT analysis. Corporate Ownership and
Control. 13(4).
Mukhtar, E. M., Williams, I. D., & Shaw, P. J. (2017, October). Visible and invisible factors of
solid waste management in developing countries. In 16th International Waste
Management and Landfill Symposium, Cagliari, Italy. (pp. 2-6).
Partey, S. T., Nikoi, G. K., Ouédraogo, M., & Zougmoré, R. B. (2019). Scaling up climate
information services through public-private partnership business models.
Sridhar, R., Sachithanandam, V., Mageswaran, T., Purvaja, R., Ramesh, R., Senthil Vel, A., &
Thirunavukkarasu, E. (2016). A Political, Economic, Social, Technological, Legal, and

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Environmental (PESTLE) approach for assessment of coastal zone management
practice in India. International Review of Public Administration. 21(3). 216-232.
Suryanti, R., Sumardjo, S., Syahyuti, S., & Tjitropranoto, P. (2019). The business capacity of
broiler farmers in the partnership business pattern. Journal of the Indonesian Tropical
Animal Agriculture. 44(3). 314-322.
Dinh, T., 2016. Establishment of a Vietnamese Restaurant in Rauma, Finland–A Business Idea.
AthuluruTlrumala, G., Ytrre Inc, 2019. Real-time tracking and analyzing to improve business,
operations, and customer experience. U.S. Patent Application 16/506,072.
Enea, C., 2016. Modern Management and Its Importance in Achieving Success in Business.
Concrete Examples. Ovidius University Annals, Economic Sciences Series. 16(2).
pp.20-25.
Sosnowska, A., 2016. Business plan: the kite bus Australia (Doctoral dissertation).