Evaluation of Partnership in Start-up Business: Fra-Pas Frozen Yoghurt Business in Birmingham

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Introduction
Partnership in any form of businesses has been essentially an association between two or
more individuals who collaborate in order to set up business enterprise with a fundamental aim
of earning revenue (Lopez, Cauty and Guyomarc’h 2015). Individuals who work in partnership
have been typically regarded as “Partner and collectively as a business enterprise. Partners who
primarily offer the major proportion capital operate the business jointly and share business
liabilities equally (Eastham 2014). The following paper aims to evaluate business partnership
between the two owners of Fra-Pas Yoghurt business enterprise in Birmingham who both have
previous work experience in hospitality sector. In addition to this, the paper use Porter’s Five
Forces in order to analyse Fra-Pas Yoghurt business and further discuss three Macro
environmental factors to understand Frozen Yoghurt business in Birmingham.
Discussion
Evaluation of Partnership in Start-up business
In reference to the case of Fra-Pas Frozen yoghurt business both the owners have been
jointly contributing to the essential capital in order to execute the shop in utmost collaboration.
Additionally, according to Moulton (2017), there must be certain agreement between any start-up
business partners prior to the establishment of the business. Entrepreneurs have been drawing
great significance to “Partnership Deed’ which has efficiently laid down certain terms and
conditions for establishing and executing partnership firm (Sundara, Manez and Vieira 2014).
Furthermore, drawing importance to this agreement Frank Jones and his business associate,
Paddy Jackson have started its business underlying the provisions of the UK Partnership Act,
1890 which justifies business association as a relation between individuals who have mutually
agreed to share revenues and incomes of Fra-Pas frozen shop which would be carried on by all or

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any of the acting for all.
Significantly, one of the primary objectives of every business association relies on profit
sharing of business among its associates in the pre-decided proportion (Hegde and Tumlinson
2014). Evaluating the case of Fra-Pas frozen yoghurt it has been essentially noted that in any
absence of agreement for revenue sharing of the yoghurt shop, it should be sincerely is shared
equally among the partners. At this juncture, it is significant to note that Frank and Paddy have
put in £30,000, which protected the 3-year lease on a shop and other working resources in order
to guarantee payment to suppliers and comprise adequate amount of stock (Paton, Chia and Burt
2014).
Porter’s Five Forces Analysis
 Bargaining power of buyers- Purchasing power primarily depends on the structure of
market networks along with the product attributes. Reports of Hegde and Tumlinson
(2014) have stated that in Birmingham, the major distribution channels for dairy products
especially yoghurt is supermarkets with over 58.5percent of the total market value. The
market rivalry environment of the supermarkets is thus highly concentrated. Furthermore
according to Bocken (2015) the major grocery retailers in Birmingham aid multinational
companies with successive bargaining power. There can be found a non-vertical
integration between leading grocery retailers and dairy processes such as Fra –Paz frozen
yoghurt. Meanwhile as majority of supermarkets have been adopting unique promotion
tactics it can pose challenges to the market share of pro yoghurt (Paton, Chia and Burt
2014).
 Bargaining power of suppliers-The dairy processors have shown high dependence on
one vital raw material that is milk. Thus there can be identified no essential substitute