Fra-Pas Frozen Yogurt Shop Partnership Assessment

The report evaluates the partnership firm of Fra-Pas Frozen Yogurt Shop, highlighting its strengths and incorporating a market analysis using Porter's five forces model. The study also examines macro environmental factors to enhance the business's operations. This comprehensive assessment provides valuable insights for students studying entrepreneurship and business management.

ASSESSMENT

EXECUTIVE SUMMARY
The main purpose of this report is to demonstrate a good knowledge of the partnership
businesses of Frank and Paddy. This report is divided into three sections which are question one
to question three. In the first question, report has evaluated partnership of frank and Paddy of
Fra-Pas Frozen Yogurt Shop. In addition to this Porter's Fiver Forces model to analyse the
competitive advantage of Fra-Pas Yogurt Shop of Frank and Paddy has been done and after that
three macro environmental factors that can help Fra-Pas Yogurt Shop of Frank and Paddy to
improve the operation. At last, the business of Frank and Paddy will be successful as of they be
always aware of external factors.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1.Evaluate Partnership of frank and Paddy of Fra-Pas Frozen Yogurt Shop..............................1
2. Porter's Fiver Forces model to analyse the competitive advantage of Fra-Pas Yogurt Shop
of Frank and Paddy. ...................................................................................................................2
3.Three macro environmental factors that can help Fra-Pas Yogurt Shop of Frank and Paddy
to improve the operation.............................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Partnership is the type of business where the firm is formed by more than one person or
individual. It is the structure of the business where two or more than two people share ownership,
profit, loss, risk and responsibilities involves with the business. There are three types of
partnership which are General partnership (GP), Limited Liability Partnership (LLP) and Limited
Partnership (Berezin, Sergi and Gorodnova, 2018). In this present report, the detail of partnership
business will be carried out. The partnership discuss in this assessment will be general
partnership of Frank Jones and Paddy Jacksons. The name of the business is Fra-Pas Frozen
Yogurt Shop. Porter's five forces model will also be done in order to analyse the competitive
advantage in the market. Further, some external factors will also be discussed in this assessment.
MAIN BODY
1.Evaluate Partnership of frank and Paddy of Fra-Pas Frozen Yogurt Shop.
Partnership refers to the form of business where two or more than two person share
ownership, profit, losses, risk and responsibilities involved with the business.
The business which is conducted by Frank and Paddy is General partnership. They are
selling Frozen Yogurt since last eighteen months in Bulling Shopping Centre in Birmingham.
The business which was carried out by them are going on a smooth way and they are earning
adequate profit from their business (Wettstein, 2015). The critical success factor of their business
is that both Frank and Paddy have a good experience in the hospitality sector as Paddy was a
hospitality manager in a local hotel and Frank was a chef in his last job. In order to measure the
performance of their business, the best method is to identify the good things of the partnership
which are as follows-
Ease of Creation- Frank and Paddy both have started the business without conducting
too many activities. They have started there business with a short discussion and no need of such
long formalities. They both contributed £30000 each and started the business of Frozen Yogurt.
Favourable Standing of Credit- This is another good thing of there partnership that they
have opportunity to enjoy the effectual credit rating in front of creditors because of unlimited
liability. Paddy and Frank has taken loan of £20000 from bank easily. With the advantages of
favourable standing of credit, financial institutions easily land the loans and advances to the firm.
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Effective Decision Making- It is the best advantage that a partnership firm have that
decision which are taken are very effective as it is taken by two or more than two people. It is
fact that decisions which are taken by two or more people is much better than decision which are
taken solely (Brunner, Craig and Watson, 2017). The decisions of opening the Frozen Yogurt
Shop is the best decision because in Bulling Shopping Centre in Birmingham is no any seller is
selling Frozen Yogurt. Another decision of using organize products for preparing yogurt is also
very effective decision for there business to grow and develop more.
Greater Management Strength- Management is the strength of all firms. It is very
important that management of the firm should be effective and efficient. When there is
partnership firm, the management is more effective as it is managed by two or more than two
people. In this present case scenario, the management is incredible because it is managed by two
experienced people (Frank and Paddy).
Profit and Loss- This is also a very good feature of a partnership firm as profit and loss
both are shared equally among the agreed partners in agree ratio. In the present case scenario, the
business of Frank and Paddy both is rising very strongly because of there effective performance.
Apart from this, the loss or any other expenses related to the there shop is also share among them
(Wu and et.al., 2017).
Limitations if Partnership
The major limitation of partnership businesses are-
 Uncertainty of duration
 Risk of additional liability
 Lack of harmony
 Difficulty in withdrawing investment
 limited resources
 Unlimited liability
Sole Trader- A person who is the exclusive owner of the businesses, entitles to keep all profits
after the tax had been paid but liable for all the losses. The liability remains unlimited for all the
debts as there is no legal distinction between private and business asserts. The capacity in this
type of business is unlimited.
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Limited Partnership- Limited Partnership is a partnership consisting of a general partner, who
manages the business and has unlimited personal liability for the debts and obligations of
the Limited Partnership, and a limited partner, who has limited liability but cannot participate in
management.
2. Porter's Fiver Forces model to analyse the competitive advantage of Fra-Pas Yogurt Shop of
Frank and Paddy.
Introduction
The business of Frank and Paddy is operating their business very effectively and
efficiently. In order to gain the competitive advantage in the market, it is very essential that
company will use Porter's five forces model. It is the best frameworks to analyse the competition
of the business. This model was developed by Michael Porter. There are five forces which are
included in this model-
Bargaining Power of Suppliers- The pressure exerted by the suppliers on the business is
in order to raise the price of products which they are supplying. The power of suppliers is high in
the Frozen Yogurt Shop because the business is small and they are also planning to use organic
ingredient in frozen yogurt (Ren and Li, 2017). The business which Frank and Paddy are
operating is small and they cannot maintain the contact with many suppliers.
Bargaining Power of Buyers- The pressure exerted buyers on the business to decrease
the price of the products as well as this force also shows the willingness of customers to pay the
price of the products. The bargaining power of buyers is moderate because this is the only shop
in Bulling Shopping Centre in Birmingham which are serving Frozen Yogurt. There are many
food ventures near to them but no any food venture is serving Frozen Yogurt.
Threat of Competition- The threat of competition is also moderate because in the Bulling
Shopping Centre in Birmingham there are only the shop of Frank and Paddy who are selling
Frozen Yogurt. But still they re facing cut-throat competition because there are so many food
ventures who are serving many other products similar to frozen yogurt. In order to achive the
best position in the market, Frank and Paddy both have decided to keep the prices low and run
the business in low cost leadership (Li and Whalley, 2014).
Threat of Substitute- This is also one of the force that shows that how it is easy for
buyers to switch from one product to another products of the organisation. The threat of
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substitute is low because there are no any food venture who are selling only frozen yogurt. Thus,
at that locality, customers have no option. But in order to gain the higher market share and
publicity, Frank and Paddy both have decided to keep the prices low.
Threat of New Entrants- This is also one of the force in porters five forces model which
shows that how it is very simple for an individual or firm to enter in the market to open the same
business. The threat of new entrants is high in frozen yogurt business of Frank and Paddy
because in opening of the business is not requires huge amount of fund and capital. The
infrastructure is not huge. But by providing tasty and unique frozen yogurt to customers, they
can capture the market share, it becomes difficult for an individual and company to enter in the
market (Salaman and Storey, 2016).
Conclusion
The above discussion concluded that the partnership business of Frank and paddy has a
good position in there current market but they are facing competitive forces. With the help of
porter's five framework, they analysed the competitive position in the marketplace.
3.Three macro environmental factors that can help Fra-Pas Yogurt Shop of Frank and Paddy to
improve the operation.
Technological Factor- It is one the best leading macro environmental factor that impact
the entire organisation. The partnership firm of Frank and Paddy are also going to adopt the
latest and advance technology in order to make the work effective and efficient
(Vandekerckhove, 2016). The development and growth of the business is depends on the
technological factors such as online presence, web technology, broadband facility in the shop,
advance machines and equipments. These advance technology is very useful for the Frozen
Yogurt business in order to improve the activities as well as bring efficiency.
Environmental factors- This is also a macro environmental factors that directly and
indirectly influence the food industry or food business. In order to raise the name of the shop and
show the environmental awareness in the society, Frank and Paddy do not use plastic bags and
plastic packaging. Further, they will also provide organic products which is also a good example
of environment friendly firm. By this factor, they can improve there brand name in the market
place.
Social factor- This factor includes the attitude, belief, living standard, market trends and
behaviour of customers towards the products of the firm. Changes in the social factor influence
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the operations and functions of the firm in different ways. Frank and Paddy are aware these
factors and they have taken the major concern of public which is highly demand of organic
products (Harvey and Thomas, 2016). Thus, the sales and revenue of the company is also
increased keeping customers at first priority.
Recommendation
Frank and Paddy should take opportunities of technological factor as hese advance
technology is very useful for the Frozen Yogurt business in order to improve the activities as
well as bring efficiency.
Frank and Paddy should do market research and identify the needs and demands of the
customers or market as if they understand the impact of social factor than it leads to increase the
sales and revenue of the businesses.
Frank and Paddy should use environmental friendly products and should stop use of
plastic bags and plastic packaging.
CONCLUSION
The above report evaluated the partnership firm of Fra-Pas Frozen Yogurt Shop. All the
good things of there partnership was also included in this assessment. Furthermore, porter;s five
forces model was also included in order to analyse the frameworks of competition in the market.
At the end, macro environmental factor was also included in this study to improve the operation
of the firm.
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REFERENCES
Books and Journals:
Berezin, A., Sergi, B. and Gorodnova, N., 2018. Efficiency Assessment of Public-Private
Partnership (PPP) Projects: The Case of Russia. Sustainability, 10(10), p.3713.
Brunner, R., Craig, P. and Watson, N., 2017. Evaluability Assessment of Thriving Places: a
Report for Glasgow Community Planning Partnership. What Works Scotland: Glasgow.
Harvey, H. and Thomas, J., 2016. Partnership Support for international Students.
Li, C. and Whalley, J., 2014. China and the Trans‐Pacific Partnership: A Numerical Simulation
Assessment of the Effects Involved. The World Economy, 37(2), pp.169-192.
Ren, G. and Li, H., 2017, September. BIM Based Value for Money Assessment in Public-Private
Partnership. In Working Conference on Virtual Enterprises (pp. 51-62). Springer, Cham.
Salaman, G. and Storey, J., 2016. A Better Way of Doing Business?: Lessons from the John
Lewis Partnership. Oxford University Press.
Vandekerckhove, W., 2016. Whistleblowing and organizational social responsibility: A global
assessment. Routledge.
Wettstein, F., 2015. Normativity, ethics, and the UN guiding principles on business and human
rights: A critical assessment. Journal of Human Rights, 14(2), pp.162-182.
Wu, Y and et.al., 2017. Risk assessment in straw-based power generation public-private
partnership projects in China: A fuzzy synthetic evaluation analysis. Journal of Cleaner
Production, 161, pp.977-990.
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