Evaluation of Partnership as a Business Organization - Little Dessert Shop

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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Evaluate a partnership as a type of business organisation with reference to Mary and Sue’s
‘Little Dessert Shop’...................................................................................................................3
Use the Porters 5 Forces framework to analyse ‘Little Dessert Shop’ business and advise on
how Mary and Sue can achieve competitive advantage by managing the relationships with
these forces..................................................................................................................................5
Clearly discuss any three of the macro environmental factors with particular reference to how
they can help improve the business.............................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
An organisation which is involved in activities such as: professional, commercial or
industrial, then such an entity is termed as a 'Business'. Activities generally relates to providing
services and supplying goods to generate profit for an organisation. Not all organisations have
the motive to earn profit, some organisations are non-profit organisations and the profit
generated by them is used either in charitable work or any social cause(Dumont., 2017). The
ownership in an organisation can be in many forms, such as: partnership form, corporation,
limited liability companies, sole proprietorship etc. In all organisations there are many internal
and external factors that affect the functioning either directly or indirectly of a company. Factors
like: demand and supply, clients, owners, market trends, economic changes, etc. collectively
influence the environment of an organisation.
This report contains an evaluation of partnership as a type of business organisation,
analysis of 5 Porter forces and 3 macro environmental factors with reference to Mary and Sue's
'Little Dessert Shop'.
TASK
Evaluate a partnership as a type of business organisation with reference to Mary and Sue’s
‘Little Dessert Shop’
Partnership is a form of an organisation where two or more individuals come together and
runs a business with a same goal and motive to achieve. It is an agreement of formal nature in
which partners share all of companies responsibilities, profits and losses. All partners are equally
responsible for the management and running of the company. There are certain types of
partnership in which liabilities of partners are limited to the amount invested by them into the
business(Fried and Mumcu., 2016). In this type of partnership not all the responsibilities are
equally distributed and neither is profit. Partners get their share of profit according to the ratios
pre decided by the agreement made before starting of partnership.
'Little Dessert Shop' by Mary and Sue is a partnership organisation. Out of various types
of partnership, they have an ordinary type of partnership which is regulated by Partnership Act,
1890. Both Mary and Sue are equally responsible for the management and running of their
business. They have invested equal amount for starting a business which held them equally
responsible to share all the burdens and profits.