Evaluation of Partnership as a Type of Business

REPORTS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Evaluation of partnership as a type of business..........................................................................4
Three macro environmental factors............................................................................................4
Porter five forces for gaining competitive advantage.................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The present report is based on the case study of a yoghurt shop which is opened in
partnership by two people established in Birmingham. This shop is situated in the busty shopping
centre in Birmingham. The present report will start by outlining the partnership of Frank Jones
and Peter Jackson. Further the report will outline the macro environment factor which can help
improve the working of the company. In the end Porter five forces will be applied in order to
attain competitive advantage.
MAIN BODY
Evaluation of partnership as a type of business
The business carried on by Frank Jones and Peter Jackson is a type of partnership. The
partnership is a type of business under which two or more people come together and bring
money with purpose of running and operating the business. This is a type of business under
which more that two people comes together and starts a business and bring in equal amount of
money for running the business (McCarthy, 2016). Also, whatever is the profit is shared by them
in the agreed ratio. Like in the case study both Jones and Jackson bring in equal amount of
capital and worked in equally. Both of them brought in equal amount that is £30,000 and also are
liable in equal proportion even in case of loss. The partnership type of business is very helpful
for the both Frank and Jackson because of the reason that there is more inflow of cash as every
partner has to bring in capital and also it is advantageous because of the reason that there is
limited liability of each partner that is only up to the share which they invest in form of capital or
otherwise which is agreed by all the partners.
Three macro environmental factors
The business operates in the environment which is very dynamic and ever changing and it
is very necessary for the business to time- to- time verify the changes taking place in the
environment. This is majorly because of the fact that these changes can be both positive and
negative hence, if company will keep an eye over the changes then it will be helpful for the
company. the different factors are as follows-
Social factors- this is the most important factor because of the reason that consumers are
the king for the company and if the consumers are not happy with the changes taking place in the
taste and preferences of the consumers (Keith, 2017). It is very crucial for the company to