Introduction to Business: Little Dessert Shop Case Study Report

This report provides a comprehensive analysis of the Little Dessert Shop, a business established by Mary Jones and Sue Jackson. The report begins by evaluating the advantages and disadvantages of a partnership business structure for the shop, considering factors like capital, liability, and decis...Read More

INTRODUCTION TO BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
1. Evaluating partnership type of business for Mary and Sue 's little dessert shop....................3
2. Analysing dessert shop of Mary and Sue with porter's five forces model..............................4
3 Three of the macro environmental factors analysis for improving the business......................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
A partnership type of business refers to organization that has two or more owners who
come together to share responsibilities, profit and loss of operations. In current era there are
several type of business structures that are use by owners to conduct transaction easily.
Partnership business increases knowledge, resource and expertise of owners and make operations
effective and efficient. The present study is based on the case of Mary and Sue's Little Dessert
Shop (MSLS) that provides products such as sweets and cakes The present report give emphasis
on dessert shop of Mary and Sue as well as explains what are benefits and drawback of their type
of business. It also elaborates the porter's five force model and help the dessert shop to analyse its
competitiveness in industry. The current report also represents three macro environmental factors
that includes economic, social and technological which can help business to identify strengths and
weaknesses of dessert shop to improve its strategy to deal with uncontrollable factors. MSLS is
located in busy Bullring Shopping Centre in Birmingham. The business was setup with £30000
that for 3 year lease shop and working capital so that supplier's payment can be done within time.
In addition to this, they have taken loan from bank for smooth functioning of organisation. They
targeted customers are local area residents. MSLS have sales mostly in weekends.
MAIN BODY
1. Evaluating partnership kind of enterprise for MSLS
From case it can be analysed that Mary and Sue capitalized their dessert organization
shop with good amount of capital. There are several advantages and drawbacks that they will get
while using these type of business structure.
Advantages
There are various benefits that partners of business get with partnership firm. The
advantage partnership business will get includes more heads for managing business which makes
easy for them to enhance their efficiency and effectiveness of organization. It also includes benefit
of low start-up cost as two or more partners are sharing capital to establish business. Further, Mary
and Sue business will be able to get more credit as their creditworthiness will increase as both
partners' liability is unlimited (Creditworthiness in the eye of lender, 2021). Beside this it will
have profit- loss sharing ratio as if there is any burden of loss only one partner will not have to
bear it, so it will enhance their risk bearing capacity.

In addition to this, Mary and Sue are able to access knowledge, skill, experience and
contact that will make decision-making process more accurate as all aspect which can affect or
boom their business can easily identify with contribution of more persons' expertise. Mary and sue
both can share their experience related to hospitality industry to make their dessert shop
successful. They can use their knowledge to innovate new products with organic ingredients so
that they can attract more customers. In addition to this they are safe from legal obligations as in
partnership type of business it is not necessary to register their enterprise (Filippova and et.al.,
2020.). Mary and Sue take advantage of serving products to customers without any legal
obligation burden and match the standard of quality of their dessert goods with health regulation.
Drawbacks
There are various drawbacks of partnership type business unit that Mary and Sue may face
which can affect their profitability and success of firm. The biggest drawback of partnership
business is that it has no independent identity which may make Mary and Sue unsecure of their
transaction and lack of trustworthiness in success of business. Furthermore, unlimited liability
makes partner liable for those debts also, which are not incurred by them personally (Daroń, M.,
2017). This demerit of partnership type of business makes the partner demotivate and
unenthusiastic for taking risk for expansion.
Additionally, partners of dessert shop can perceive lack prestige in continuing business
transaction. Whenevr there are more than one person carrying operations it may result in
disagreement and friction among partners and management. It is also referred as each partner is
liable for debt as they are unlimited liability holders. In addition to this, less protection and
excessive of burden is felt by other partners that result in less inters in carrying forward business.
Mary and Sue can face the situation of disputes due to differentiation in perceptive of thinking
about particular business problem and way of handling consequences may also be different due to
contrasting human nature and experience (Cygler and Sroka, 2017). So, before starting a
partnership type of business partners need to consider all benefits and drawbacks that can enhance
or decline flexibility of working of organization unit and accept the fact that different opinion can
be there for decision-making process.
2. Analysing dessert shop of Mary and Sue with porter's five forces model
Porters five force model identifies and analyse competitive elements that can help business
to evaluate strengths and weaknesses which will contribute in success and failure of organization.

It will help the dessert shop to identify industry's structure to determine corporate strategy suitable
to business (Kartika, Nadirah, and Ramlan, 2021). These five forces measure attractiveness,
competition intensity and profitability level of market.
Competition in industry(Low)
Mary and Sue can measure Competition prevailing in the market with help of porters
model which enable it to identify its position in market. The first force give emphasis on analysing
competition sustaining in industry (Porter's Five forces, 2021) This analysis helps organization to
check that current strategy can deal effectively with changing scenario or not. It can identify that
which strategy is making competitors' more powerful and what actions can be taken to tackle with
these challenges. Mary and sue can analyse that how other dessert shops are pricing their products
and which methods are used by them to attract customers as this will help company to know
trends and preference of customers.
Potential of new entrants
The second force of model is evaluating potential of new entrants into industry which will
help Mary and Sue to get knowledge that what is scope of their industry. It will make them enable
to check that how new rivals can enter into market and affect their power of charging higher price.
Dessert shop of Mary and Sue can adapt innovative ideas to find loyal customers as they will not
suffer even if any new shop comes into market. An industry with strong barriers to entry is ideal
for all existing company as they will be in position of charging higher prices.
Power of suplliers customers
Further to this, Power of supplier is an important force that any company need to evaluate
to get information that how this factor can drive up their cost . Mary and Sue can modify their
strategy of dealing with suppliers so that they can get organic ingredients easily which will not
drive their cost of production in upward direction.
Power of customers
In addition, power of customers is the biggest force that can affect its competitiveness and
profitability as they are dependent on customers for recovering their cost of business and have
motive of earning profit by charging higher prices (Stindt and et.al., 2017). It can affect the dessert
shop by losing customers that are reason for generating revenue. It is considered that larger the
customer base lower will be their poer to affect sales of company and vice versa. The shop can get
situation of less demand for its products whenever customers preferences changes, or they get

attracted towards other competitors. With respect to this, firm may need to lower its price of
products.
Threat of substitution
Beside these four forces,company need to analyse threat of substitution that can reduce
sales of organization. Mary and Sue can analyse how competitors are affecting their sales of
dessert shop and it can also give them idea of taste and preference of customers that is changing
due to variance in price or quality.
3 Three of the macro environmental factors analysis for improving the business
Mary Jones and Suea as partners of the Little Dessert Shop has to strategically focus on
external macro factors for improving the business strengths, higher working innovation and
varied scale competitive efficacy within longer time run by which new targets can be reached on.
Economic factors: The changing economic parameters play strong role in generating advanced
work growth strategical functional positioning into wider run on which there are price
structures to be focused on for competitive positioning. The economic factors will enable
effective scale implementation into wider run which will generate competent scale
innovation into wider run for consistent efficacy. Economic pricing of all products and
services at Little desert shop will enable advanced functional efficacy towards wider run.
Also evolve towards wider working efficiency to generate new scale revenue targets reached
on imperatively for varied competent stable diversity into services. (). Economic factors
such as tax rates, laws, policies and government activities play crcuial role in enriching new
range of impact where company decisions towards bringing new economic structural rules
enhance competitive strength. This can be also analysed that Little desert shop has to head on
keeping economic factors at focus for further leveragin strength oriented goals (Paurova and
Gregova, 2020).
Social factors: The varied social dynamic factors among consumers are widely crucial to analyse
for innovative consumer market oriented goals and new advanced working reach for
consistent determining pace into scaled domains. There shall be dynamic focus towards
bringing on consumers' preference social factors where there is focus towards bringing
competent scale advancement, to generate social standards competitively for wider consistent
functional reach into market. There should be wider strategies formed as per consumers
oriented scale services, by focusing on their tastes and preferences innovatively to generate

new advanced work growth diversity towards competent scale functionally. Social factors
will enable external factors to be identified for strategical determining pace, into wider run for
competitive goodwill.
Technological factors: Little Desert shop needs to focus on technological factors for competitive
scale advanced functional promotion into varied paradigms towards new advanced marketing
strategies and generate stable technical innovative business reach. By heading on digital
functional reach and imperative usage of technological domains Little Desert shop will be
able to generate advanced monitoring of consumers oriented scale services. External
competencies will be able to get identified commercially for larger vision oriented growth
towards quest operational innovation aspects and also raise on competitive advanced
determining pace into varied run. The technological factors enhances new paradigms
towards imperative scale diverse functional reach and generate varied domains of competitive
innovation into competitive marketing. Little desert reach will be able to explore new
parameters within business reach for competent scale marketing and specific functional
growth. There will be new advanced functional reach within varied determinants towards new
scale diverged determinants, into competent scale marketing for advanced quest horizons
into varied scale innovation (Phan,2021).
CONCLUSION
The report has concluded in detail partnership as business organisation structure aspects
with merits and demerits for advanced structural scale functional innovation towards varied
efficacy. Advantages , disadvanategs of partnerships have been also concluded in report where
high range of connectivity towards determinants plays crucial role for startups. Study has also
concluded porter 5 force framework analysis to evolve on new competitive parameters within
vision oriented goals, and also macro environmental factors which generated detailed analysis of
varied functional scale efficacy into wider business run. Report has also concluded in detail
pestle analyis factors within external business domains, where businesss competitvity has high
strength towards new range of efficacy operations.

REFERENCES
Books and Journals
Cygler, J. and Sroka, W., 2017. Coopetition disadvantages: The case of the high tech
companies. Engineering Economics. 28(5). pp.494-504.
Daroń, M., 2017. A Verification of Advantages and Disadvantages in Partnership
Relations. Zeszyty Naukowe Politechniki Częstochowskiej. Zarządzanie. (27). pp.96-
105.
Filippova, V.D. And et.al., 2020. Public Private Partnership Project Management: Benefits For
The State And Business. International Journal of Management. 1(3).
Kartika, D., Nadirah, I. and Ramlan, R., 2021. Registration Legality of Deed of Establishment of
Limited Partnership from District Court to Ministry of Law and Human
Rights. Randwick International of Social Science Journal. 2(1). pp.113-123.
Paurova, V. and Gregova, E., 2020, December. Importance and Process of Marketing
Environment Analysis as Strategic Analysis Tool of Business. In Fifth International
Conference on Economic and Business Management (FEBM 2020) (pp. 720-723).
Atlantis Press.
Phan, S., 2021. The effect of PESTLE factors on development of e-commerce. International
Journal of Data and Network Science. 5(1). pp.37-42.
Stindt, D and et.al., 2017. On the attractiveness of product recovery: The forces that shape reverse
markets. Journal of Industrial Ecology. 21(4). pp.980-994.
Online
Creditworthiness in the eye of lender. 2021. [Online] Available through:
<https://www.creditkarma.com/advice/i/creditworthiness-what-lenders-look-for>
Porter's Five forces 2021. [Online] Available through:
<https://www.mindtools.com/pages/article/newTMC_08.htm>