Analysis of Little Desert Shop: Business Structure and Market Forces

This report provides a comprehensive business analysis of the Little Desert Shop, a partnership operating in the hospitality sector. It begins with an evaluation of the partnership structure, discussing its advantages and disadvantages, and its impact on profitability. The report then applies Porter's Five Forces framework to assess the competitive landscape, examining threats of new entrants, bargaining power of suppliers and buyers, threat of substitute products, and rivalry among existing firms. Finally, it describes the micro-environment factors using the PESTEL model, including political, economic, and social factors, and their effects on the business's performance. The analysis aims to provide insights into the shop's strategic positioning and potential for improvement.

Introduction to Business

Table of Contents
INTRODUCTION...........................................................................................................................3
1.Critically analysed partnership business in order to enhancing profitability of business........3
2.Evaluation porter's five forces framework in order to little desert shop effectively analysed
business environment and established business. ......................................................................4
3.Describe micro-environment factor which helps to improve performance of business. .......5
CONCLUSION...............................................................................................................................7
REFERNCES..................................................................................................................................8

INTRODUCTION
There are ample number of business model established in the market so those
organisation wants to starts their business operation so must evaluates business environment and
on that basis investing capital amount. For instance, organisation analysed organisation structure
which one is more feasible in order to smooth flow business functions (Brijs, 2016). The report
is about the Little desert shop which is owned by two partners in Bullring shopping centre in
Birmingham. It is formal partnership business they dealing in hospitality sector within opened
restaurant chain. The paper consist is analysed partnership form in order to feasible or not as
well as evaluates PESTEL model and porter's five forces model because it help to improve
performance of organisation.
1.Critically analysed partnership business in order to enhancing profitability of business.
A partnership is business where two or more individual operates business together. It is
kind of formal agreement between two or more partners to mange and operates business
successfully Both the partners equally liable for all the activities of business and both the
partners invest capital in business. It is legal agreement between partners which knows as
partnership deed. In reference of little desert shop, both the individuals share liabilities and
profits equally as well as limited liability (Chang, 2016). Both partners work in effective and
efficient manner so accordingly achieved their organisation goal and objectives of company.
These kind of organisation structure which set code of conduct in order to income tax is not paid
by partnership itself. Both partners after sharing portion of profit or losses are divided in equal
ratio and then each partner pays income tax on their individual tax return. In context of
organisation, there are so many forms of partnership so which are effectively established in order
to generated high sales revenue and improving performance of employees. Little desert shop
also evaluated these forms of business which one is better they adapting and conduct smooth
flow operation.
General partnership-: A general partnership is first form of partnership in order to two
or more individual owned company who agree to run the business with partners or co-owners. In
these partnership both partners have legal agreement due to conduct business. In reference of
organisation, each partners share profit and losses on the basis of sharing ratio. If organisation
plan top start these form of business so both are signed on partnership agreement which stated

partner's role and shares. These kind of partnership run on the basis of mutual understanding
between both partners. They are easily established, low-cost and flexible.
Limited partnership-: limited partnership refers to is more structured business in order to
it is combination of both general and limited liability partnership. These business owned on the
basis of at least one general and one limited partner. In relevance of Little desert shop, it
effectively established because limited partner plays vital role in business. They are investors of
business who investing money in business due to growth of business. These partners have not
right to take decision which related to firm. They are not handle risk and responsibility of
business but general partners have authority to managed business in proper way (Evans, 2017).
Limited liability partnership-: These is the third form of partnership which said that
there are two or more partners called members. In relevance of organisation, personal assets
must be protected and they are not power and authority to sued for business debts.
Hence, these forms of business is one of the famous business model and most of
companies establish due to operates business function in smooth way & easily run profitable
business along with achieved goal and objective of company.
2.Evaluation porter's five forces framework in order to little desert shop effectively analysed
business environment and established business.
Porter's five forces model is developed by Michael E Porter in 1979. These model is
effectively utilised in order to assessing and evaluating the competitive advantages, strength and
position of business organisation. These models most of business model used because they helps
to determines the competitive intensity and attractiveness of market. In reference of Little desert
shop, organisation manger used these model and analysed market condition and situation and
accordingly developing business strategy (Kolk, 2016).
Threats of new entrants-: These is first component of porter's model which said that to
evaluating organisation easily entered into a particular industry. They are analysed industry are
profitable, few barriers enter and competitors available at marketplace. In context of Little desert
shops enter in hotel industry is difficult because they required huge amount of investment and
face cut throat competition. They are various other hotel industry are situated in UK and they
provides high quality goods and services so attract more customer.
Bargaining power of suppliers-: Supplier bargaining power have low because they are
ample number of buyers are available so they easily switch from other brand. Little desert shop

is small restaurant so they are numerous supplier are available and they charge higher prices so
buyer switch other hotel.
Bargaining power of buyer-: These component said that busy have able and power to
charge price of product and services accordingly and drives price of product and services goes
down. In context of organisation, buyers have high bargaining power in order to these small
restaurant chain so other restaurant chain established in the market longer period of time so
buyer easily negotiate them (Kumar, 2017). Buyer have other options also available due to easily
switch them and other restaurants chains attract more customer and set brand image in the mind
of customer.
Threat of substitute products-: These model refers to that which more options are
available at market place so buyers easily purchased them when dealing in similar kind of
business model deliver same product and services so threat of substitute of good is high. In
relevance, Little desert shop, there are various other restaurant chain are available so buyer get
easily purchased product so it also leads tuff competition in the market.
Rivalry among existing firm-: There are so many competitors are available at
marketplace which brings tuff competition among hotel industry. There are various kind of hotel
industry available and they offering similar kind of product and services to customers. It
includes serves special kind of food item, deliver standard services and interior decoration of
hotel as well as trained & educated staff which attract retain more customers. In respect of Little
desert shop, is one of the famous shop at marketplace due to set strong barrier when few
competitors at marketplace (Lewandowski, 2016).
Therefore, it is model or frame work which helps to analysed market condition and
situation when organisation wants to set business so must be evaluated and manger accordingly
business plan and frame strategies.
3.Describe micro-environment factor which helps to improve performance of business.
Micro-environment includes varies factors so on that basis utilised particular frameworks
which known as PESTEL model. It involves various external factor which affect the business
operation and performance of business. These model organisation utilised in effective and
efficient way because they are essential to analysed model so know about the impact in
organisation. In reference of little desert shop also evaluated business model with help of these
model so mentioned below.

Political factor-: These is important factor it is essential to analysed in order to when
organisation wants to set up business in other country so know about political condition of
particular country. It includes rules, regulation, guideline and legislation so UK has strong and
stable political condition. Their government also support to business model the regulate those
policy which are favourable for business model. In relevance of Little desert shop, has not much
impact of policy on these business structure (Martí, 2018).
Positive impact-: Due to political condition are favourable so it leads to enhancing
performance of employees and smoothly perform business functions.
Negative impact-: Organisation paid higher taxes and import duties so it impact on
profitability of business.
Economic condition-: These factor plays vital role in order to affect the business
performance and profitability so superiors accordingly plan the strategies to gain competitive
advantages. It involves interest rates, inflation rates, GDP and income distribution. In relevance
of organisation, the economic condition of UK is strong they below interest affect business
model in order to enhancing profitability and capture huge market share. They are also included
positive and negative impact which are follows.
Positive impact-: The economy of UK is good so they support at all the level for an
organisation so increasing profitability and productivity.
Negative impact-: High interest rates charge so it directly impact on investment so
which brings lower profitability and reducing purchasing power of customers.
Social factor-: These is element of PESTEL model which refers to culture, belief,
tradition, values and attitude of customer towards the product and services. In context of Little
desert shops, it utilized in effective way to know about the taste, preferences and market trends f
customer on that basis serves to customer. Organisation necessary to needs analysed these factor
in order to fulfil the needs and demands of customer and conduct research in effective manner.
Business operates in specific country so must be know about culture and people needs that
country (Stacey, 2016).
Positive impact-: These factors help to analysed and fulfil needs and demands of
customer so it leads to positive impact on performance of company.
Negative impact-: Organisation not deliver product and services according to the taste of
customer so it shows negative impact on business functions.

CONCLUSION
From the above report it has been concluded that those organisation wants to set business model
in future so analysed the forms of business structure which one is more convenient and then
investing capital amount so according operates business operations. There are accordingly
evaluates business environment on that basis companies utilised various frame work such as
PESTEL and porter's model to analysed business model in order to enhancing profitability and
improve performance of employees.

REFERNCES
Books and journals
Brijs, B., 2016. Business analysis for business intelligence. CRC Press.
Chang, J.F., 2016. Business process management systems: strategy and implementation. CRC
Press.
Evans, J.R., 2017. Business analytics. Pearson.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business, 51(1),
pp.23-34.
Kumar, U.D., 2017. Business analytics: The science of data-driven decision making. Wiley.
Lewandowski, M., 2016. Designing the business models for circular economy—Towards the
conceptual framework. Sustainability, 8(1), p.43.
Martí, I., 2018. Transformational business models, grand challenges, and social impact. Journal
of Business Ethics, 152(4), pp.965-976.
Stacey, R.D., 2016. The chaos frontier: creative strategic control for business. Butterworth-
Heinemann.