Little Dessert Shop: Business Structure and Environment Report

This report provides a comprehensive analysis of the Little Dessert Shop, a business partnership operating in Birmingham. It begins by evaluating the partnership structure, detailing the contributions and agreements between the partners. The core of the report examines the application of Porter's Five Forces model to assess the competitive landscape, including threats of new entrants, bargaining power of suppliers and buyers, the threat of substitute products, and rivalry among existing competitors. Furthermore, the report investigates the macro environment factors impacting the business, such as demographic, socio-cultural, and economic factors, highlighting their influence on the shop's operations and strategic decisions. The conclusion summarizes the key findings, emphasizing the importance of understanding both internal structures and external forces for long-term business success. The report references key academic sources to support its analysis.

Individual report

Table of Contents
INTRODUCTION..........................................................................................................................3
MAIN BODY..................................................................................................................................3
Evaluate different type of organisation with reference to partnership.......................................3
Porter's five forces models.........................................................................................................4
Macro environment factors........................................................................................................6
CONCLUSION...............................................................................................................................7
REFRENCES..................................................................................................................................8

INTRODUCTION
To start a new business it is very important to promote that business with right strategies
so that, an entrepreneur can run the business smoothly and make the profit. There are various
strategies which an entrepreneur will be used to make starting growth of the business. For this
essay, the chosen organisation is Little Dessert Shop (Deasy and et.al., 2016). In this restaurant
there are two business partners Mary Jones and Sue. They opened their business in busy bullring
shopping centre in Birmingham. For completing this essays, discussion on different type of
organisation is discussed, porter's five forces and an evaluation on the nay three macro
environment factors are discussed which are effect the chosen organisation.
MAIN BODY
Evaluate different type of organisation with reference to partnership
There are various type of business organisation which are helpful to run the business. To
start a business, any organisation structure can be used that suit the best goal of the company.
Sole proprietors, partnership, corporation, Limited Liability company and corporative are the
different type of organisation.
Sole proprietors: There is no legal distinction in between the business entity and its
owner, so it the organisation which basically get the best fit where the organisation has only one
owner. It is popular for the small business owner due to the low production.
Corporation: These are the companies which are authorised to work and act as the single
entity. Here the company's owner and business have their own separate personal liabilities from
the company. This corporation is further divided in three parts: C-corporation, S-corporation and
Non-corporation.
Limited Liabilities Company: These type of company separate the owner's liabilities of
that company (Bah and Fang, 2015). This type of company can be corporates as corporation and
partnership, and they can owned by different business entities such as individual, partners, trust
and LLCs. As LLC doesn't put their shareholders at risk, by separating the personal liabilities
from the business owners.
Cooperative: It is the type of organisation which is operated for the benefit of the
individual who own the business and for their users. Which indirectly means that business
distribute their business earning in between the members and users-owner.

Partnership: This type of organisation constitute a formal agreement in between two or
members who agree to run a business together. In this partnership agreement is clearly show the
sharing amount, authority, profit sharing and liabilities.
In the given case study the the chosen type of organisation is Partnership. Here the two
individual person are come together with their mutual consent and make a partnership deed. In
this deed they two make the equal amount of contribution £30,000 and further they use that
financial amount in securing the three month lease, some working capital to ensuring the pay
suppliers and fully established resources. In addition to their business they would like to add
some more capital of about £20,000 for promoting the business more in the local authority while
they try to develop the new product line (Čepel and et.al., 2018). After facing the pandemic of
covid-19 they had to closed their shop for the three months. With their mutual consent they try
to start something special in their dessert menu. So all of these things show that how their
business are comes under the category of Partnership. They think to serve very friendly service,
good quality, health products and all of these at the low price.
Porter's five forces models
Porter's five forces models first appeared in 1979 by Michael E Porter. This model is
basically affect the companies attractiveness in the industry, how the new trends of the market
affect the companies competition and how their competitors affect the companies decision
making (Mansuy and et.al., 2019). This model is show the understanding competitive forces
which increase the profitability of the business. In the Little dessert shop, it is important to
check their competitive analysis so that they can again gain the profitability ration which is
loose by them due to covid-19.
Threat of new entrants: New competitors in the industry bring new capacity and desire
to make the strong market share within the company. This threat happen when there are some
barriers to enter the industry. The higher barrier in the market for the new entrants, the smaller
the threat to the existing company (Saleem, 2015). For the little desserts shop, there are various
type of competitors in the market because of the place where the outlet is setup. Threat of the
new entrant is very high for the company.
Bargaining power of suppliers: Here the force analysis about the power and control of
the suppliers has over the control of the price and quality of the raw materials. Which would
make the effect on the company to reduce the profitability. In the little dessert shop, the supplier

play an important role as they have high power. They help the company fro switching cost and
increase the strength of the company. Bargaining power of the supplier is low in the company as
compare to another's aspect.
Bargaining power of Buyer: Customer are the one who put the business under pressure.
Customer have a lots of power to change the sales and profitability of the business. In the little
dessert shop, the bargaining power of the buyer is so high. Customer are able to check the price
of their food and other food industry also. This will effect the sales of the business in the busy
street of bullring shopping centre.
Threat to the substitute products: The existence of the product or having the
similarities in the products increase the risk for the business (Khajeheian, Friedrichsen and
Mödinger, 2018). There are various substitute are available in the market. This cover the high
risk for the business, as to overcome this risk, both partners are try to serve something different
from the other competitors. In the starting they serve different sweet desserts and try to serve
some healthy food products.
Rivalry among the existence competitors: This is the last factor of porter's model, as to
know about the competition in the marketplace. This factor is known by identifying the real
Illustration 1: Porter's five forces analysis tutorial, 2020.

competitor and how that competitors are capable for affecting the business. In the respected
organisation, lots of competitors are there which affect the sales of the business and make a
strong impact on the brand image.
Macro environment factors
When an entrepreneur run the business, so they have to considered various factors which
affect the business at large context. This consist all the opportunities which create threats to the
company also.
Demographic factors: It involve the human population that help the business and
contribute to the economy. There are various factors which involve demography, age, gender,
size and occupation. Marketing of the any business can change the demographic factors, which
pay major attention to targetting the large number of customers. In the respected business, the
demographic factor help to meet the break even point (Sammut‐Bonnici and Galea, 2015) .
There main targets are youngsters, children and teenagers. Furthermore they provide healthy
eating for improving the demand of for their products.
Socio-culture factors: This is the factor which consist the factors which related to
demographic factors. Different groups and society have their own culture and needs. A new set-
up business need to be pay more attention specially when the entrepreneur move business into
new market. In the respected business, the socio-culture factors are very important as the
position of the outlet included different type of people. According to the diversifying products
and choice of the customer would be make a strong impact on their own business.
Economical factors: In this factor, the macro environment relate to the forces which
make an impact about how the customer spend and how the people spend their purchasing
power. To control the economical factors they employed very less employees some are full time
members and some are half-time members (Takata, 2016). As the weekend days are very busy
so the owners of the business try to increase the sale in that time only.
All these three factors make a strong impact on the business, as these factors help the
company to improve their business. Geographical, socio-culture, and economical factors help
the business to run smoothly and increase the profit. While keep analysing these factors any
company can reduce the risk and uncertainties. Remove the competition and complexity of the
business.

CONCLUSION
From the above essay it is concluded that to run the business, there are various factors
which affect the growth of the company. To become the successful entrepreneur, an individual
first find out the structure of the business and then try to make the good planning about the
future. With the help of porter's five forces an entrepreneur know about the company's position
and identify the risk about the competitors. After that the macro environmental factors affect the
decisions of the company and influence the various factors which affect the growth of the
company. To bring the long term viable success in the business the owner must be looking for
the more caters who satisfy the need of the customers and able to target the different market
situations.

REFRENCES
Books and Journals
Deasy, S. and et.al., 2016. Controlling use of a business environment on a mobile device. U.S.
Patent 9,247,042.
Bah, E.H. and Fang, L., 2015. Impact of the business environment on output and productivity in
Africa. Journal of Development Economics. 114. pp.159-171.
Čepel, M. and et.al., 2018. Business environment quality index in the SME segment. Journal of
Competitiveness.
Saleem, S., 2015. BUSINESS ENVIRONMENT, 3/e. Pearson Education India.
Khajeheian, D., Friedrichsen, M. and Mödinger, W., 2018. An introduction to competitiveness
in fast changing business environment. In Competitiveness in emerging markets (pp. 3-
11). Springer, Cham.
Sammut‐Bonnici, T. and Galea, D., 2015. PEST analysis. Wiley Encyclopedia of management,
pp.1-1.
Takata, H., 2016. Effects of industry forces, market orientation, and marketing capabilities on
business performance: An empirical analysis of Japanese manufacturers from 2009 to
2011. Journal of Business Research. 69(12). pp.5611-5619.
Mansuy, N. and et.al., 2019. Contrasting human influences and macro-environmental factors on
fire activity inside and outside protected areas of North America. Environmental
Research Letters, 14(6), p.064007.
Online
Porter's Five Forces Analysis Tutorial, 2020. [Online]. Avaliable thorugh:<https://www.visual-
paradigm.com/tutorials/five-forces-analysis-tutorial/>