Evaluation of Partnership as a Type of Organization

Introduction to
Business
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1 Evaluation of partnership as type of organisation....................................................................3
2 Application of Porter Five forces to advices the way Mary and Sue can achieve competitive
advantages....................................................................................................................................4
3 Three macro environmental factor that helps in improvement of business operation..............5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Business is started by individual by undertaking associated risk and performing several
activities related to sales of products and services so that it can enjoy high profit margin and
attain its objectives. Enterprise can be owned, controlled and managed by sole proprietors or
partners with an aim to generate maximum revenue by delivering qualitative services to
customers. This report is based on case study of two partners named as Mary Jones and Sue that
have planned to start and operate new business i.e., “Little Dessert shop”. It have contained
information related to evaluation of partnerships, make use of porter five force model to
understand the way company can gain competitive advantages.
1 Evaluation of partnership as type of organisation
Partnership can be terms as formal written agreement between two or more interest
parties that want to start and operate business in order to earn maximum profit margin.
Partnership agreements vary as per condition and requirements of members that are associated
with particular project. Partners or member may equally or in particular ratio are responsible for
losses and profit that have been incurred and earned by company during particular financial
years. All partners have equal rights to take decision for growth and success of business or
manage day to day operation so that end goals can be achieved. In the above case study Mary
and Sue are two partners that have respective background in hospitality industry that motivate
them to pursue business in same field (Schiavi and Behr, 2018). Such as Mary has worked as
chef in large contract cantering and Sue as Hospitality manager so both have planned to use their
skills and knowledge to develop or establish new business so that they can generate maximum
revenue. There are both advantages and disadvantages of partnership which can be understood as
follows:
More availability of resources: It can be stated that partnership between individuals lead to
increase in overall resources of organisation as compared to sole proprietorships. Thus,
partnership firm can easily expand its scale of operation as it has more capital, human resources
for achievement of common goals. Thereby, both Sue and Mary by contributing specific amount
of capital i.e., £30,000 are able to arrange sufficient resources for effective operation of Little
Dessert shop and lead its growth.
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