Managing a Business of Frozen Yogurt - Case Study Analysis

Running head: MANAGING A BUSINESS OF FROZEN YOGURT
Managing a Business of Frozen Yogurt
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1MANAGING A BUSINESS OF FROZEN YOGURT
Executive summary
This report has focused on the case study of Fra-Pas frozen yogurt business in order to
understand crucial areas of partnership types. Further, porters’ five forces analysis has been
conducted to evaluate company’s potential to compete, sustain and accomplish goals of
longer terms. This report has also discussed three macro environmental factors for improving
the business. The entire discussion revolves recent trend of food industry and the way Fra-Pas
frozen yogurt shop is trying to capture market value by addressing the same. It has been
found that being comparatively new to the industry, although they are successful in
acknowledging customer demand yet they need to improve promotional techniques, culture
of innovation and investment policies in order to ensure long-term sustainability within
competitive business environment.

2MANAGING A BUSINESS OF FROZEN YOGURT
Table of Contents
Overview of the case study............................................................................................3
Evaluate partnership as a business type: Fra-Pas Frozen Yogurt Shop.........................3
Porter’s five forces analysis...........................................................................................4
Key solutions to achieve competitive advantage...........................................................6
Macro environmental factors for improving business...................................................7
Demographic forces...................................................................................................7
Economic forces.........................................................................................................7
Technological forces..................................................................................................8
References......................................................................................................................9

3MANAGING A BUSINESS OF FROZEN YOGURT
Overview of the case study
The entrepreneurs of Fra-Pas Frozen Yogurt business, Frank and Paddy, are aware of
potential low rate of sales during months of winter. Although, they never fail to meet market
trends yet this concern has made them think for product diversification. Acknowledging the
tendency of youngsters they are trying to provide healthy, fat free yogurt made from organic
material. In this due course, they cannot meet the expectation of low price and if they try to
meet that criteria they cannot provide premium quality. Therefore, two central issues has
been identified which are as follows. At first, they are facing issues to balance quality and
price and secondly, the sales target cannot be achieved without diversifying the products into
some healthy alternatives. In addition to that, market is highly competitive.
Evaluate partnership as a business type: Fra-Pas Frozen Yogurt Shop
Being experienced in Hospitality sector both Frank and Paddy have created a unique
balance between taste and how the taste must be served. They contributed the same amount at
initial stage to gather basic capital of business. As stated in Iyer (2013), co-owning a business
is quite normal and the case study is an example of general partnership where both of them
came together to carrying out equal responsibilities in terms of business and its legal
boundaries too. The advantage they have is to return the tax at lower rate as profit amount has
been divided between them equally like liability. Considering the case study, their partnership
cannot be considered neither as limited partnership nor as limited liability partnership
business. On one hand, limited partnership requires a partner with unlimited liability and the
other one signs a contract for a limited duration whereas, limited liability partnership offers
limited liability to each owner along with equal protection from financial and legal risks. This
can be called a combination of both general partnership and co-operative business.