Little Dessert Shop: Business Partnership and Porter's Five Forces

This report provides a detailed analysis of the 'Little Dessert Shop' business, focusing on its partnership structure, specifically between Mary and Sue. It evaluates the partnership as a business organization, highlighting the roles and contributions of each partner. The report applies Porter's Five Forces model to assess the competitive landscape, examining factors such as existing rivals, supplier power, consumer bargaining power, threats of new entrants, and substitutes. Furthermore, it discusses three key macro-environmental factors—economic, social, and legal—and their impact on the business's operations and performance. The conclusion summarizes the key findings, emphasizing the importance of understanding the business environment for achieving strategic goals. The report provides a comprehensive overview of the business, its challenges, and potential strategies for success.

Introduction to Business
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Contents
INTRODUCTION...........................................................................................................................3
Questions.........................................................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Business is basically denote a board term that usually comprises of different partners
along with efficient working practices. The assets that are being possessed by enterprise which
enable to achieve its desirable goal or objective within specific time interval. This report is
focused on the “Dessert shop” which undertaken into specific consideration in respect to the two
partners such as Mary and Sue. They have been decided to establish a little business in order to
maintain position in global marketplace.
This report will discuss about the partnership as consider type of enterprise in order to
handle by partners sue and Mary. It will explain porter’s five force model that will utilise for
providing the better advice and gain more competitive advantage in marketplace. Furthermore, it
will identify the different macro environment factors which will carry out the brief idea about the
external environment of “Little Dessert shop”.
Questions
Evaluate the partnership as type of business organization with respect to Mary and Sue’s Little
“Dessert shop”
A partnership is a kind of formal arrangement by two or more parties to operate or manage the
entire business, also sharing business profits equally. According to the case study, it has been
analysed that Sue and Mary operate as partnership “little dessert shop” business. Typically, they
were following the proper government structure, systematic approach while delivering the better
functions in marketplace. In general, partnership can imply in the formal agreement that mainly
occurs with different parties. Afterwards, they can manage or operate simultaneously (Köseoğlu
and Almeany, 2020). A formal partnership needs of one or two members, who are registered
their business under specific rules and regulations.
As per given scenario, it has found that Mary and Sue both are two professionals, those
having a relevant experience in the hospitality industry. Therefore, it become easier for handling
the complex business operation and function. Initially, they have started as small venture and
named as Little Dessert Shop, located in Birmingham, bullring shopping centre. As per study,
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Mary was head of chef in large catering business chain and Sue is also plays important role in
hotel as manager to handle all kind of accommodation services. In this way, both partners have
experienced to handle the business functionality and agreed on the partnership. Afterwards,
decided to open a “Little Desserts” Shop and approach to the do investment around Euro 30,000
in the business establishment. Dessert shop is consider as partnership firm so that both partners
involves equally. In this way, it would be consider as kind of business that exits and utilised by
partners/ owner for defining overall structure of dessert shop. Both partners have given equal
contribution within business operations accordingly (Kumar, 2017). This will help for owner to
make right decision in business growth and development. Moreover, it is also supporting to
divide profits & loss, many other aspects associated with business.
The partnership agreement is defined as approach that supports for small business in term
of capital share, partnership rights, share profit and other kind of regulations. These are generally
applicable in the business to change the policies and procedures. Sometimes, it depend upon the
partner those are putting more efforts to establish a mutual understanding between staff
members. In case of “Little Dessert” Shop, both partners are having enough experience regarding
hospitality industry. That’s why, they have identified the better investment in business
improvement. The primary objective of Mary and Sue to establish a strong position of “little
dessert” shop, giving better offers to optimise price or cost. This will support for establishing a
trust, loyalty among potential consumers regarding product quality or services.
By using Porter 5 Five, identifying that how Sue and Mary achieve its competitive advantage or
managing relationship with forces.
Porter’s five forces is based on the framework for analysing the overall business
competitive environment. This kind of model is usually consider the different factors that help to
create an impact on the offers and competitiveness with respect to the uniqueness in the
organization (KUROCHKINA and et.al., 2019). As per given Scenario, it has been focused on
the little Dessert shop in context of competitive condition or situation. In this way, it will require
to create more awareness, marketing strategy regarding the promotion of small business in
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marketplace. In recent times, it is very difficult to maintain the position of “little dessert” shop
due to Covid-19. By using Porter’s 5 force, it has been determined the competitive advantage
and enable them to find out the competitiveness of business in marketplace.
Existing Rivals-
In Little dessert ship, the existing rivalry is becoming highly and also increases. This can
happen due to Covid-19 which has an impact on the overall business productivity as well as
profitability in marketplace. At certain time, “Little desert” shop was closed for few months.
Therefore, it has been increasingly the economic recession which will directly affecting on the
business revenue. Afterwards, owner of little Dessert shop can focus on perform different
promotional activities and also create awareness among potential consumer towards brand.
Bargaining power of Supplier-
The bargaining power of supplier is moderate because financial recession has impacted
on the closure of import or export activities. In this way, different supplier of dessert shop to
make a high power. New supplier will be negotiated and possess with low power.
Bargaining power of consumer-
The bargaining power of consumer is high in term of Little Dessert shop. Owners have
tried to increase their marketing activities and attract more consumer towards product as well as
service (Liu and et.al., 2020). But company needs to follow a proper regulation and guideline
with respect to health or safety. In order to maintain a proper hygiene during Covid-19. In this
way, many potential consumers have shown their positive response towards product and service.
Therefore, it keep maintain the consumer satisfaction.
Threat of New entrants-
Threat of new entrant is higher because it is a kind of small business that needs to be
increased awareness among consumers. in this way, owner of little dessert shop is develop or
create a strong relationship with consumers. This can help to create as strong brand image,
position in global marketplace. Sometimes, threat of new entrants is directly impact on the
consumer and strategies of organization.
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Threat of Substitutes-
Threat of substitutes is higher because availability of various substitutes in global
marketplace. It is consider as important part of “Little dessert” shop to analyse or evaluate any
kind of threat. Little dessert shop provide the various kind of food and drink item which are
managed according to the need or preference of consumers.
As per analysis, it has been examined the importance of Porter’s 5 force model which
help to identify current competition level in marketplace.
Discuss about three Macro environment factors, how to improve the business
A macro environment refer to the economic situation or condition which prevailing in the
entire economy rather than selecting the particular region. There are different factors that have
been consider the functioning and performance of enterprise (Mendling, Baesens and Fellmann,
2017). Basically, this kind of macro environment is consists of different factors such as political,
economic, social, legal, technological and environment. These factors are influence over
enterprise in context of improving the overall business operation and function.
Economic Factor-
This type of factor is consist of element which related to growth rate, interest rate,
employment rate, GDP. In recent times, Covid-19 has been increased the economic rate within
UK marketplace. Therefore, it is majorly impact on the “little dessert” shop enterprise. Economic
factor is usually applicable in little desert shop for taking important decision and improve overall
business performance.
Social Factor-
In this factor, it is identifying the specific need or requirement of potential consumers. it
help to identify by ‘little dessert” shop to enhance its current sales and production. This can
support to improve overall business operation and function (Urbach and Röglinger, 2019).
Generally, social factors include the demand, preference and attitude or behaviour of client
towards business offering. Little dessert shop can enhance its business functionality at the time
of holidays, weekends.
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Legal Factor-
This kind of factor is mainly focused on the rules and regulations that have developed by
owner of “little dessert” shop. In order to improve business performance while handling different
practices. Moreover, legal factors of enterprise which include different elements such as health &
safety legislation, employment act and other kind of wages, increment or salary. These are
consider as essential part for little dessert shop to use accurate resources which helping to
generate positive result or outcome.
CONCLUSION
From above discussion, it has been analysed that business possess its unique values that
enable to achieve desirable goal and objective. In this report, it has been described about the
partnership as consider type of enterprise in order to handle by partners sue and Mary.
Describing the porter’s five force model that help to identifying the competitive edges of
enterprise and how they can easily gain competitive advantage in global marketplace.
Furthermore, it can be analysed the different macro environment factors in which provide the
information about the external environment of “Little Dessert shop”.
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REFERENCES
Book and Journals
Köseoğlu, S.D. and Almeany, S.S.A., 2020. Introduction to Business Valuation. In Valuation
Challenges and Solutions in Contemporary Businesses (pp. 1-23). IGI Global.
Kumar, U.D., 2017. Business analytics: The science of data-driven decision making. Wiley.
KUROCHKINA, A.A. and et.al., 2019. Management features of small and medium-sized
business enterprises. Revista Espacios. 40(34).
Liu, Y. and et.al., 2020. Call for papers: Business hybrid offerings: International challenges,
entry modes and product-adaptation processes.
Mendling, J., Baesens, B. and Fellmann, M., 2017. Challenges of smart business process
management: An introduction to the special issue.
Urbach, N. and Röglinger, M., 2019. Introduction to digitalization cases: how organizations
rethink their business for the digital age. In Digitalization Cases (pp. 1-12). Springer,
Cham.
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