Different Types of Business Organization, Porters Five Forces, Macro Environmental Factors

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This report discusses the different types of business organization, Porters five forces, and macro environmental factors. It focuses on the case study of Yoghurtology frozen yoghurt shop and provides insights into the partnership structure, competition analysis, and the impact of macro environmental factors on the business.

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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Overview of case study...............................................................................................................1
1. Different types of business organization.................................................................................1
2. Porters five forces...................................................................................................................2
3. Macro Environmental factors..................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
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INTRODUCTION
A report is developing of a organized document that precisely, define and analysis an
event or presence. This report contains different types of information like business organization.
A business organization is an entity which aimed at carrying on commercial business through
different goods & services to fulfil the requirement of customers (Dobbins and Dundon, 2017).
This report based on the case study of Yoghurtology frozen yoghurt shop. There are consisting of
different types of business organization and partnership structure. Along with define about
porters five forces and three macro environmental factors.
MAIN BODY
Overview of case study
Frank Jones and his business partner started a business Yoghurtology frozen yoghurt
shop about 18 months ago. Both are contributed about £30,000 which secured the 3 year lease on
a shop and some working capital to assure they can pay suppliers and have enough stock. Both
had experience of hospitality sector so decided to set up business effectively. To growing
business strongly decided to take loan from bank £20,000 and advertise the business activities
and produce new product lines.
1. Different types of business organization
The term of business organization defined that how a business are organized and various
structure supports to meet with the goals and objectives. Businesses are developed to concentrate
on either earning profit or developing society. The basic classified of business organization such
as sole proprietorship, partnership and corporation.
Sole proprietorship: In this type of business conduct business activities by individual
person and most of the individual select because it is easy to set up and least costly among all
types of ownership. It is beneficial because owner attain of all profit and require low cost for
start up and low operational overhead.
Partnership: A partnership consist of two or more person in business together and
contribute together into the entity. All co owners act on behalf of each other in an organization.
All partners are agreed to offer all the resources need for business and set aim of generate the
profit. Those people who invest money in business is known as partner.
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Corporation: It is a form of business organization that has a separate legal personality
from its owners. The stakeholders enjoy limited liability but have constricted engagement in
business activities. The shied executives an elected for a particular group from the stockholders,
controls operations of the enterprises (Ghebrehiwet and et. al, 2016).
In the context of case study Frank Jones and Peter Jackson are partners and set up
business of Yoghurtology frozen yoghurt shop about 18 months ago. Both are decided to invest
equally and share profit 50-50%. So both are agreed on mutual level to conduct business
activities invest amount about £30,000. The uniform partnership act offers governance for
business partnerships in different U.S. States. The uniform partnership act has undergone many
revise since it was first proposed in 1914 by the national conference of commissioners on
uniform state laws. The Yoghurtology frozen yoghurt shop follow all the rules and regulation of
the partnership act. There are defined different types of advantage and disadvantage of this
structure. In present time they are following all the regulations as per the Uniform partnership act
1997.
Partnership easier and less expensive which is set up the two or more people after mutual
understanding.
Partnership cartel the resources and expertise of a number of people.
It is simple to follow by people and register name as per the partnership act.
For any profit/loss all partners are equally liable and also for debts. Every partner is
individually oblige for debts incurred by the other partners which is called as jointly and
severally liable.
Tax is less on the personal tax rate due to increase earning (Aithal, 2017.).
2. Porters five forces
Porters five forces is a model which is recognise and determine five competitive forces
which provide shape to sector and supports to analysis an enterprise's weaknesses and strength.
These five forces determine is frequently manner and recognise ans industry's structure to
evaluate corporate strategy. This model is applied in any segment of the economy to interpret the
level of competition within the industry and increase the profitability of the business. There are
applied this model on Yoghurtology frozen yoghurt shop to analysis competition and related
advantages.
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Competitive rivalry: Competition in Yogurt can be fierce and very intense due to low
differentiation. In present time new brands are coming up every day and the important
factor which are playing essential role in price sector. Yoghurtology frozen yoghurt shop
is partnership based business that was situated in a busy mall where mostly people arrive.
So local shop can impact on the business regarding to price structure and quality (Zeldin
and et. al, 2017). Threat of substitute: A threat of substitute occur when demand of a particular product
due to lower prices of a better substitute product. Some substitute such as soda, cake, ice
cream, chocolates and other desserts are competing that can threaten the yogurt market. Threat of new entrants: If economic activity in favour of new entrants so it is beneficial
for the enter into the Yogurt industry due to most equipment can be rented, purchased
easily. Moreover, the barrier of entry is low, staff members do not require to be highly
experienced and disciplined. Additionally, there are no specific production technique or
procedure that are employed. Bargaining power of buyers: Due to increase more and more competitors are entering
into Yogurt industry so buyers have choice to select brand according to that. So customer
able to choose substitute brand of Yogurt at any point in time. In case of attract customer
for Yogurt advertise of products and offer at low price with good quality.
Bargaining power of suppliers: The main suppliers of Yogurt who is offering raw
materials and ingredients. These ingredients offered by every suppliers are not greatly
distinguished. Moreover, Yogurt producers are able to switch between suppliers rapidly
and effectively. Thus, bargaining power of suppliers of ingredients is rather low.
3. Macro Environmental factors
A macro environment is a condition that relates to the economy as a whole, rather than in
a particular sector or region (Türker Ahi and Yildiz, 2018). There are different factors which is
related with the macro environments such as inflation, gross domestic product (GDP),
employment, spending and monetary and fiscal policy. There are defined three major factors that
impact on the business activities such as:
Economical Factor: In this factor consist of inflation rate, unemployment, interest rate
which is direct related to macro business environment. These factors impact on the
business activities in direct and indirect manner and according to that they take further
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steps. In USA unemployment rate is rise and reaching on high level that impact on
personal income and according to that they invest money on requirement things.
Political Factor: For the different industry government set specific rules and regulation
and according to all business and shops conduct the activities. If Govt. are in favour of
shop so it impact in positive manner otherwise shows negative impact. Compliance with
rules & legislation is becoming more costly. To set the business require to follow all the
legal formalities and after registration take further steps for the business activities.
Yoghurtology frozen yoghurt shop affect by political factor when USA government apply
any changes regarding to production of Yoghurt (Cummings and et. al, 2016).
Social Factor: In this factor involves social activities, interest of people, product
expectations and many others. To remain long time in the market require to analysis all
the marketing activities regarding to our product and according to that prepare strategy.
Otherwise Yoghurtology frozen yoghurt shop loss business and become unsuccessful. So
it is required to provide option of customization of product according top interest if
people like ice cream more than Yoghurt so it shows negative impact on the business.
CONCLUSION
As per the above discussion it is concluded that partnership act is form of the business
organisation which is easily adopted by the people to set up business and earn profit in equal
level as per the act of Uniform partnership act 1997. Both partners follow the all rules and invest
same amount to set up and advertise their business. To analysis the competitive advantages apply
the Porters five force model which is helping to know actual market position in the market which
is good but face high level of competition. Macro environment factors impact in position and
negative manner on business operations.
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REFERENCES
Books and Journal
Dobbins, T. and Dundon, T., 2017. The chimera of sustainable labour–management
partnership. British Journal of Management. 28(3). pp.519-533.
Ghebrehiwet, B. and et. al, 2016. The complement and contact activation systems: partnership in
pathogenesis beyond angioedema. Immunological reviews. 274(1). pp.281-289.
Zeldin, S. and et. al, 2017. Youth–adult partnership and youth civic development: Cross-national
analyses for scholars and field professionals. Youth & Society. 49(7). pp.851-878.
Cummings, A. C. and et. al,2016. Galactic cosmic rays in the local interstellar medium: Voyager
1 observations and model results. The Astrophysical Journal. 831(1). p.18.
Türker Ahi, M. and Yildiz, K., 2018. Determining performance criteria of railway market: a case
study. Journal of Open Innovation: Technology, Market, and Complexity. 4(1). p.6.
Aithal, P. S., 2017. Company Analysis–The Beginning Step for Scholarly
Research. International Journal of Case Studies in Business, IT and Education
(IJCSBE). 1(1). pp.1-18.
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