Business Report: Yoghurt Shop Partnership in Birmingham Analysis

This report examines a yoghurt shop partnership in Birmingham, owned by Frank Jones and Peter Jackson, situated in a busy shopping center. It begins by evaluating the partnership as a business type, highlighting equal capital contributions and shared liabilities. The report then explores three macro-environmental factors: social, economic, and environmental, emphasizing their impact on the business. Social factors focus on consumer preferences for healthier options; economic factors consider the influence of per capita income; and environmental factors address consumer concerns. Finally, the report applies Porter's Five Forces to assess competitive advantage, analyzing the threats of new entrants, substitutes, bargaining power of buyers and suppliers, and competitive rivalry within the frozen yoghurt market. The conclusion emphasizes the importance of environmental analysis for business success, summarizing the key findings on partnership type, environmental factors, and competitive forces.

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

analyse the changes in the taste and preferences of the consumers. In the present era the
consumers are becoming more conscious towards their health and are preferring healthier foods
and beverages. Thus, this is an opportunity for Youghurtology of developing some healthier
drink instead of yoghurt (Blanco and Cohen, 2017).
Economical factors- this is also a factor which the company must take into consideration
because the business run in the economy and if economy will be at boom then this will be an
opportunity for the company. This is majorly because of the reason that if economic condition
will be good then per capita income of the consumer will be high and they will expand more.
Environmental factors- this is also an important factor which need to be studied by the
company because the business run in environment and it is the duty of the business to take care
of the environment. Also, the consumers have become more protective relating to the
environment and this is an opportunity for Yoghurtology because of the fact that if company take
measures for the protection of the environment. Then the consumers will like the goods and
services of the company and will consume it (Xu, Fu and Liu, 2019).
Porter five forces for gaining competitive advantage
Threat of new entrant- this is defined as the possibility of the new business entering in
the same field. As the concept of frozen yoghurt is new so there is less new entrant because of
the reason that if this business will not run then loss will be suffered by the company. Thus, this
threat is very low in the market.
Threat of substitute- since the concept is new and modern thus, there are not many
already established products which are identical to this. Thus, the threat of the substitute good is
also low as there are less product which can be substituted with yoghurt.
Bargaining power of buyer- the buyers have the high bargaining power because of the
fact that the buyer for this product is very low and they have the power to reject or approve the
product.
Bargaining power of supplier- the supplier for the product are many but the company is
thinking of going for more of the organic products and ingredients (Prasad and Warrier, 2016).
But they are in dilemma because of the reason that this may increase the cost for the company
and this in turn will increase the prices for the goods and services of the company.
Competitive rivalry- the competitive rivalry that is the competition is less within the
market because the concept of frozen yoghurt is a newer one and many companies did not enter

the market till the product become successful in the market. Thus, the competitive rivalry is low
for the product range of frozen yoghurt and this is beneficial and profitable for Yoghurtology
(Safari, Farhang and Rajabzadehyazdi, 2016).
CONCLUSION
In the end it can be concluded that it is very necessary for the company to analyse its
market and the environment in which it operates. This is because of the reason that the changes
within the environment impact the business operations in both positive and negative way. Thus,
in the report the type of business was discussed that is partnership among Frank and Jackson.
Further the discussion was made on the different factors which may improve the working of the
company like social, environmental, economic and other related factors. In the end the Porter
five force were used to identify the competitiveness of the company in the whole industry.

REFERENCES
Books and Journals
Blanco, J.M. and Cohen, J., 2017. Macro-environmental factors driving organised crime.
In Using Open Data to Detect Organized Crime Threats (pp. 137-166). Springer, Cham.
Keith, L., 2017. Environmental sampling and analysis: a practical guide. Routledge.
McCarthy, J., 2016. Partnership, collaborative planning and urban regeneration. Routledge.
Prasad, A. and Warrier, L., 2016. Mr. Porter and the new world of increasing returns to
scale. Journal of Management Research. 16(1). pp.3-15.
Safari, N., Farhang, M. and Rajabzadehyazdi, E., 2016. The study on the competitive status of
construction companies based on Michael Porter's five competitive forces (Case study:
Armeno Project Development and Management Company). European Online Journal of
Natural and Social Sciences: Proceedings. 5(3 (s)). pp.pp-72.
Xu, W., Fu, H. and Liu, H., 2019. Evaluating the Sustainability of Microfinance Institutions
Considering Macro-Environmental Factors: A Cross-Country
Study. Sustainability. 11(21). p.5947.