Partnership Evaluation and Competitive Advantage Analysis for Little Dessert Shop

Introduction to Business

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
1. Evaluating a partnership aspect of Mary and Sue’s ‘Little Dessert Shop’ as a type of
business unit...........................................................................................................................3
2. Analyzing how ‘Little Dessert Shop’ can achieve competitive advantage using the
Porters 5 Force analysis.........................................................................................................5
3. Discussing macro environmental factors which helps company in improve the
operational aspects.................................................................................................................6
CONCUSION............................................................................................................................7
REFERENCES...........................................................................................................................8

INTRODUCTION
In the current times, business units are placing emphasis on providing customers with
high quality products and services so that competitive advantage can be attained. The present
report is based on the case scenario of ‘Little Dessert Shop’ which offers healthy and organic
products to the customers. In this, report will shed light on the benefits and drawbacks
associated with partnership agreement done by both the business entities. Further, it will
highlight aspects firm should undertake for getting competitive edge and improving business
operations as well.
MAIN BODY
1. Evaluating a partnership aspect of Mary and Sue’s ‘Little Dessert Shop’ as a type of
business unit
Partnership may be defined as a legal business operation in which two or more people
manages company ‘s responsibilities, debt and profit as per the contractual agreement. As per
the case study given, both Mary and Sue started Little Dessert Shop in Bullring Shopping
Centre (Birmingham) by investing £30000 each. On the basis of this, both sharing equal roles
and responsibility regarding activities and operations associated with business aspects.
Advantages and disadvantages of partnership in the context of Little Dessert Shop are
enumerated below:
Advantages
Easy formation: Sue and Mary can open business as a partnership easily as it is free
from requirements pertaining to registration and incorporation. Thus, it is recognized as one
of the main benefits because concerned entities can start operations without any expenditure
and lawful aspects.
Availability of larger resources: Unlike sole proprietorship firm, partnership firm
enjoys greater resource availability. Moreover, in this business type, concerned partners make
feasible contribution of resources such as funds etc (Baresa, Ivanovic and Bogdan, 2017).
Along with this, banks also give priority to partnership firms while sanctioning loan. On the
basis of case scenario, for the purpose of business expansion Mary and Sue wants to take loan