Evaluation of Partnership in Little Dessert Shop

This report evaluates the partnership form of business in the context of Mary & Sue Little Dessert Shop. It discusses the application of Porter's five forces model to achieve competitive advantage and analyzes macro environmental factors for business improvement.

Introduction to Business

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
1Evaluation of partnership as a business organisations in respect with Mary & Sue Little
dessert shop............................................................................................................................4
2Application of porters five forces for analysing of “Little Dessert shop” and advise on
management of such forces to achieve higher competitive advantage...................................5
3Discussion of macro environmental factors with reference to improvement of businesses.7
CONCLUSION................................................................................................................................9
REFERENCE...................................................................................................................................9

INTRODUCTION
There are various forms of business that is associated with the legal formalities and is
consider as partnership, sole proprietorship, joint stock company and many more. Every form of
business has different features and characteristics that is followed in order to implement
activities in a proper manner (Ritter and Lettl, 2018). In the present report, Little desert shop is
taken into consideration which is a partnership business between Mary and Sue. The report will
cover a detailed analysis and evaluation of partnership form in context to respective shop. In
addition to this porter's five force model is describe in order to achieve competitive advantage. In
the last, there is a discussion about macro environment factors which help in attaining business
objectives.
MAIN BODY
Evaluate a form of partnership as a form of business organisations in context to Mary & Sue
Little dessert shop
Partnership is defined as a formal agreement that take place among two or more than
people in a proper manner. In this form of business, the profits and losses is equally divided
among the partners or according to the partnership deed. In addition to this, partners are able to
share risk, cost, benefits and responsibilities while running business. Moreover, in this form of
business the agreed profit share is decided and partners pay tax according to it. It is analysed that
such form of business is mainly divided into two parts that is limited partnership as well as
general partnership, which are as follows:
General partnership is operating activities & are serving to many investors. In addition to this,
they did not have control on activities as well as operations of company as they are subjected to
some liabilities.
Limited partnership involves a general partner who has the ability to manage business & has
unlimited personal liability in order to pay debts.
Personal liability is main concerned and focused of general partners as they are
associated with the right to pay debts personally (Di Benedetto and Kim, 2016) . It is analysed
that each general partner is act on behalf of partnership obligations and dents as well. Moreover,
their decision is directly affecting as well as binding on partners. In partnership business, each of

the partners is liable for any of the misconduct and negligence as well. Along with, the profit &
loss are divided among partners as per their agreed ratio.
In context to the given case study of Mary and sue who are partners of Little desert shop
is based on the general partnership form. Both the partners has contributed around 30,000 pounds
for the activities and operations of business. In addition to this, they have secured 3 year lease of
shop. It is analysed from the given case study that both partners are contributing towards
working capital in order to ensure availability of stock in shop. Moreover, partnership is consider
as one of the appropriate and suitable form of business as it is formed as legal agreement that
involves both the partners signature. Furthermore, if any of the partners is dead then business is
not called as partnership if two persons are partners.
Porters five forces framework for examine “Little Dessert shop” & advise on how it can attain
competitive advantage though maintaining relationship with such forces
It is important for “Little Dessert shop” to analyse the level of competition prevailing at
marketplace so that an effective strategy is build to maintain performance at marketplace.
Porter's five force model is defined as a framework that involve five competitive forces that help
business entity to attain competitive advantage at marketplace (Alvarez, 2016). The five forces is
discuss below in relation to “Little Dessert shop” :
Threat of new entrants: In the present situation of COVID-19, there is decline in the
spending level of people which state that threat of new entrants is low for the “Little Dessert
shop” . It is determined that opening a shop like “Little Dessert shop” arise high cost and time
to other person that directly show that this threat is low for the shop.
Bargaining power of suppliers: It is analysed that “Little Dessert shop” borrow raw
materials in huge quantity that assist in gaining high profit margin. In addition to this, it focuses
on developing effective relationship with suppliers that ensure availability of raw materials on
time. It borrow raw materials from cash & carry in large quantity and maintain effective
relationship in order to develop trust in them. This signifies that threat of bargaining power of
suppliers is moderate for “Little Dessert shop” .
Threat of substitution: There are lot of competitors exist in market that offer the same
product ans service at marketplace. This shows that threat of substitutes is high for “Little
Dessert shop” . It is important for respective shop to offer something unique and different and
also gain trust of customers so that they did not think to switch to other brand.

Bargaining power of customers: It is analysed that there are lot of options available to
customers due to which bargaining power of customer is high for “Little Dessert shop” . In
addition to this, customer can easily shift to other shop that can only be declined when “Little
Dessert shop” satisfying the requirements of customer and provide them quality as well as on
time service to customers.
Industrial rivalry: It is determined that “Little Dessert shop” have high threat of this
competitive forces due to presence of number of competitors at marketplace such as creams cafe,
Kasaps desserts, sweet escape cafe and many more (Davenport and Harris, 2017). In order to
decline this threat, “Little Dessert shop” is coming with the new offerings for winters as it help
in attracting large number of customers due to which it is able to achieve competitive advantage
at marketplace.
By analysing the above competitive forces, it is analysed that “Little Dessert shop” attain
competitive advantage at marketplace as it emphasis on providing quality and healthy offerings
to customer. In addition to this, it is going to add hot desserts and chocolates in its offerings for
winters so that it can gain eyes of large number of people and maintain its performance at
marketplace.
Discussion of three macro environmental factors along with how it help in improving business
For making crucial changes due to COVID-19 situation, Little desert shop needs to
conduct an in depth analysis of external factors so that an effective strategy were developed in
order to deal with changing business environment and external market situation as well. For this,
PESTLE analysis is used by Little desert shop that involve factors which has direct influence on
performance and operations of business entity. The factors are discussed below:
Economic factors: In the present condition of economy and market because of COVID-
19, it is analysed that willingness of buying a product or service by customer is declined that
impact negatively on the demand of Little desert shop. In addition to this, it also impact
negatively on the performance as well as profitability (Hofmann and Klinkenberg, 2016). In
order to deal with this and maintain its demand at marketplace, it is important for Little desert
shop revise price of its offerings and convert it as an affordable price so that customer can attract
towards it and sales is also raised in an effective manner.
Social Factor- Every country has different culture and the way of analysing a product as
well as service. If it is talking about the present situation, the needs and preferences of customers

is shift towards consuming healthy products and health conscious products. Little shop desert has
the advantage to offer something new that is herbal and healthy for customers as it will assist in
maintaining future sales and performance in an effective manner.
Legal factors: There are various laws that impact on the overall functioning of Little
desert shop that is partnership agreement among Mary and Sue (Gray, 2019). In addition to this,
government developed many laws associated to the safety of employees and customer as well
and after the situation of COVID-19, it is becoming more concerned. It is important for Little
desert shop to ensure that all the rules and regulations is followed so that all the activities is
implemented in a proper manner.
The above mentioned factors are major part of macro environment and is important for Little
desert shop to deal with it so that its performance level is maintained and all the activities is
executed in a proper manner (Myers, 2019).

CONCLUSION
From the above discussion, it is analysed that the present situation is impacting on the
business in a negative manner and maintaining is becoming difficult for them. In addition to
this, partnership is a formal agreement that involves two or more than two people in it. It is
determined that using of porter's five force framework help in gaining knowledge about
competition level prevailing at marketplace. Furthermore, it is analysed that macro
environmental factors has direct influence on the business performance and operations as well.

REFERENCE
Books & Journal
Ritter, T. and Lettl, C., 2018. The wider implications of business-model research. Long Range
Planning, 51(1), pp.1-8.
Di Benedetto, C.A. and Kim, K.H., 2016. Customer equity and value management of global
brands: Bridging theory and practice from financial and marketing perspectives:
Introduction to a Journal of Business Research Special Section. Journal of Business
Research, 69(9), pp.3721-3724.
Alvarez, J.L. ed., 2016. The diffusion and consumption of business knowledge. Springer.
Davenport, T. and Harris, J., 2017. Competing on analytics: Updated, with a new introduction:
The new science of winning. Harvard Business Press.
Hofmann, M. and Klinkenberg, R. eds., 2016. RapidMiner: Data mining use cases and business
analytics applications. CRC Press.
Gray, D.E., 2019. Doing research in the business world. SAGE Publications Limited.
Myers, M.D., 2019. Qualitative research in business and management. Sage Publications
Limited.