Evaluation of Partnership as a Business Organization in Respect with Mary & Sue Little Dessert Shop

This report evaluates the partnership firm in respect with Mary & Sue 'Little dessert shop' newly opened in Birmingham, United Kingdom. Also discusses the external factors which influence an organization's goals.

INTRODUCTION TO
BUSINESS

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK ..............................................................................................................................................3
Evaluation of partnership as a business organisation in respect with Mary & Sue Little dessert
shop.............................................................................................................................................3
Application of porters five forces for analysing of “Little Dessert shop” and advise on
management of such forces to achieve higher competitive advantage.......................................4
Discussion of macro environmental factors with reference to improvement of businesses.......6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
A business organisation has evaluate into different categories also with different provision
regarding their respective business concerns. It has categorised into separate firms i.e. sole
traders, limited company and other will be limited liability partnership (LLP) and a community
interest company (CIC). (Birch, and et.al., 2017) This report evaluates the partnership firm in
respect with Mary & Sue ‘Little dessert shop’ newly opened in Birmingham, United Kingdom.
Also discuss on the external factors which influence on an organisations goals. With the help of
porter’s five forces model which describes affects of suppliers and buyers power, competitive
rivalry, product substitute and more in context with the firm. An organisation also influenced by
external forces like legal, social and environmental which is also going to analyse here.
MAIN BODY
TASK
Evaluation of partnership as a business organisation in respect with Mary & Sue Little dessert
shop
Partnership firm is considered to be a sorted as well as critical at a same time, in which two
partners are ready to share their capital and profit in a decided ratio also bound by all terms and
conditions in partnership agreement, regarding working hours, salaries, leaves, insolvency,
arrival of new partners and dissolvent. Partners have to mutually agree in decisions, amendments
or investment which sometimes creates a matter of dispute. Also partners are individually liable
to pay cost of any miss happening or loss occurred to the firm, in other words they have
unlimited liability. There are other firms i.e. Limited partnership and General partnership
which are discussed below: Limited partnership: according to this partnership agreement, partners enjoy limited
liability up to the extent of its capital contribution, along with this, the firm can be sue
and be sued by the other members or firm for any fraudulent conduct. Investments are
made by companies’ shareholders who are a part of companies’ profit.
General partnership: according to this, no involvement of external investment considers, as the
profits and losses bear by the partners only, and unlimited liable in any circumstances.
(Cherunilam, 2020)

Personal liability: It is the crucial and vital factor for any business concern. The
members of the organisation stands at a risk of bearing losses of others partners, that
means any misconduct activity held by one partner leads to borne by others partners also
by way of compensating in losses or paying the whole amount.
The partnership firm owned by Mary and Sue bound them to retain their business with
mutual understanding and enjoy unbelievable profit by taking risks in order to expansion, this
sort of organisation ensures two partners to make their limited contribution in capital but their
innovative ideas and skills can make their organisation effective, as in case of Mary and Sue,
Mary has experience as a chef so that she can promotes better quality food as per customers
taste, on the other hand sue has experienced in hospitality, could promotes the management of
operations and activities in order to achieve effectiveness in their firm and enjoys enamours
benefits of their business with the acceptance of laws and provision. (Evans, 2017)
Application of porters five forces for analysing of “Little Dessert shop” and
advise on management of such forces to achieve higher competitive advantage
An organisation is affected by several factors which can be analyse by porter’s five
forces models who affects an organisations growth by way of competition and product demand
and supply in the market, in order to attain huge market share ‘Little Desert Shop’ need to take
these forces into consideration before making any amendments, as these forces plays a vital role
in their business prospectus. All these forces are examined below:
Bargaining power of suppliers: according to this force, there are enamours suppliers in
the market, supplies their material to various firms which increases their power of bargain to get
high price with their existing customers. This tends to cause rise in cost of the product and less
profit margin. In context with the, Little Desert Shop the barging power of supplier is high as
they acquire the material from a local cash and carry store which could increase its price in
future. (Jones, 2019)
In respect with this, Little desert shop should buy from various supplier so that rising price from
one supplier would not affect organisation cost as they often shift their demand to other
suppliers.

Threat of new entrants: As per this, competitors are waiting to grab market area in their
hands by providing more of high demand product which can affect existing firm in the same
market. In context with this, food industry has facing lot of competitions, customers preferred to
try new tastes in low prices. In respect with this, Little Desert Shop has facing low threat because
of COVID-19 scenario. In order to retain long term growth they should focuses on new start-ups
in different areas which promotes their brand name also by being quality oriented
Threat of substitution: customers want money worth satisfaction, and demands more
with less price, in order to fulfil their demand they can easily shift to its substitute which gives
more of quantity in less price. In respect with Little Desert Shop, threat of substitute is high as
there are other shops like Creams provide good quality desert. In order to survive in the market
Little Desert Shop needs to increase their product line and efficiency, also focuses on product
quality by using good quality material which makes them unique as compare to its substitutes.
Bargaining power of customers: customers demand are enamours, and can easily change
their demand in order to gain extra utility form other competitors firms. (Parris, and McInnis-
Bowers, 2017) Desert industry faces these challenges of customers preference and taste through
which, Little Desert Shop faces high threat of bargaining power, in order to prevent these
challenges it should provide exciting discounts and offers which can attract more number of
customers. And achieve long term benefit.
Industrial rivalry: rivalry in product industry impact on the performance of a business
firms which is affected by its competitions as they fulfilling more consumer demand. Just like
food and desert industry facing high rivalry which considers Kaspas Desserts, sweet getaway and
creams bistro. These firms give tough competitions to Little Desert shop. In order to attain huge
market share it should maintain their proficiency by analysing youth’s demand, health concerns
and other elementary factors.

From the above analyses for Little Desert Shop, the forces can affect firms profitability in future
for which it should diversify their product range with best quality criteria and best prices also by
taking raw material through different suppliers, they can launch exciting menu for winters as
well as other seasonal flavours. Through this, it can build pillars for competitors to enter into
market which leads them to long term growth and brand reputation.
Discussion of macro environmental factors with reference to improvement of businesses
An organisation is affected by internal and external factors which enables its duty
towards countries economic conditions, by analysing these factors an organisation could attain
huge success by serving in environmental favour. In order to examine these factors, PESTLE
analyses is a best way to find out the influence of external factors into organisations growth and
productivity.
Economic factors:
Economic factors considers involvement of individuals income, opportunities,
employment, GDP rates and inflation which affects an organisation in terms of well being
towards economy. In context with Little Desert Shop, the city Birmingham facing low skills
workers and less percentage of employment opportunity. In order to attain a sustainable growth,
firm should serve economy to its best extent by proving employment through product
diversification and specialisation also maintain inflation rates in control.
Social Factor-
Social factors considers population, education, age, size, and demand of the people living
in the society which also affects their living standards and health issues. An organisation must
perform by analysing these factors into consideration. In respect with Little Desert Shop. They
must diversify their product range by evaluating societies need in terms of age groups also
provide good quality product which does not cause any harmful effect, people tends to prefer
more of quality servings with wide range of varieties. (Dymek and Zackariasson, 2016.
Legal factors:
Legal factors include every rights an individual should get by working in an organisation
also values regarding emotions and eternity. In Birmingham, United kingdom there are several
legal rights which affects an organisation well- being which include Employment Act 1996
regarding leaves and health benefit of employees also the Equality Act 2010 ensures that no one
get discriminated in any way. The Little Desert Shop performing in the era of legal rights which

also bound them by partnership act. Also, in the situation of COCID-19 it must ensure proper
sanitisation and health facilities in their store.
By analysing above factors, it has been demonstrate the fact that Little Desert Shop must
evaluate these factors before taking any actions towards product diversification and must fulfil
economies demand in order to get huge success in the competitive market.
.

CONCLUSION
With the help of above mentioned report, it is concluded that Little Dessert Shop performs
in accordance with their partnership agreement by enhancing their ability and skills into their
business also by analysing porter’s five forces model it is well identified the most attentive areas
to work on with the main aim to attain sustainable growth. Also, by being in favour of every
environmental factors it become an easy criteria to move towards business goals and objectives
in an effective and efficient manner. (Trapp, Voigt and Brem, 2018.)

REFERENCES
Books and Journals
Birch, D. K., and et.al., 2017. Business and society: A critical introduction. Zed Books Ltd..
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
Dymek, M. and Zackariasson, P. eds., 2016. The business of gamification: a critical analysis.
Taylor & Francis.
Evans, J. R., 2017. Business analytics. Pearson.
Jones, L., 2019. Introduction to business law. Oxford University Press, USA.
Parris, D. L. and McInnis-Bowers, C., 2017. Business not as usual: Developing socially
conscious entrepreneurs and intrapreneurs. Journal of Management Education. 41(5).
pp.687-726.
Trapp, M., Voigt, K. I. and Brem, A., 2018. Business models for corporate innovation
management: Introduction of a business model innovation tool for established
firms. International Journal of Innovation Management. 22(01). p.1850007.