Fra-Pas Yoghurt: A Case Study on Business Partnership and Strategy

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Case Study
AI Summary
This case study examines the business of Fra-Pas Yoghurt, a partnership between Frank Jones and Peddy Jacksons in the hospitality industry. The study begins by defining partnership as a business structure and then analyzes Fra-Pas Yoghurt using Porter's Five Forces model, assessing factors such as the threat of new entrants, supplier power, buyer power, availability of substitutes, and competitive rivalry. It further explores the macro-environmental factors impacting the business, including technological, social, and environmental influences. The analysis highlights how these internal and external factors affect the business's decision-making processes and overall performance, concluding with recommendations for achieving a competitive advantage and sustainable business performance. The study emphasizes the importance of adapting to market dynamics and expanding product lines to maintain relevance and profitability.
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CASE STUDY
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Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
1.Partnership as a business type in reference to Frank Jones and Peddy Jacksons .......................3
2.Porters five forces in reference to Fra-Pas yoghurt......................................................................4
3.Macro environmental factors........................................................................................................5
CONCLUSION....................................................................................................................................6
REFERENCES.....................................................................................................................................7
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EXECUTIVE SUMMARY
This case study is based on a case study given on two partners named, Frank Jones and peddy
Jacksons who started their partnership business. It is specifically on their experience in hospitality
industry. It has thereby assessed the type of business which is partnership in nature. In the second
part explained about porters five forces model and third part will be base on external factors and
affect of them on the industry.
INTRODUCTION
There are different types of organisations which exist with their own different legal structure and
these companies are in form of public, private and voluntary. Partnership define as when two or
more people start a business together it is called partnership and the firm will be called partnership
firm. Frozen Yoghurt is under private company and it is a shop which provides dairy products like
ice-cream. Frank Jones and Peddy Jacksons started this shop in partnership. This file will include
partnership in reference to this shop and linked this shop with porters five force model. This file
will consider macro factors and their effect the business.
MAIN BODY
1.Partnership as a business type in reference to Frank Jones and Peddy Jacksons
Frank Jones and peddy Jacksons started a partnership business. They opened a shop named
with Frozen Yoghurt an ice-cream parlour. A partnership is a business in which two or more persons
cooperate with each other to run the business and the business is called partnership
business(Charan, 2017). Partnership has many types like general partisanship, limited partnership
and limited liability partnership. In general partnership any individual who is making partnership
for the business, is responsible for everything. They all persons who are in the partnership have
same responsibilities and liabilities regarding the business and share equal rights to take any
decision for the business. Other one is limited partnership in which a person add in partnership
business for a short time and they have their own liability and in this partnership someone is taking
general partnership. but limited time partners not able to take decision about the business and their
legal actions.
Frank Jones and Peddy Jacksons open a business named with Fra-Pa's Yoghurt Shop. It is a
partnership shop which provides dairy items and ice cream named with Frozen yoghurt. It existed
near the shopping mall so they earn more profit and there are many shops regarding the food and
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other products but they are owned in frozen yoghurt.
They used general partnership in which they both are equal owner of the shop and have equal
responsibilities and liability for the shop. They both known to the hospitality sector in which Frank
had worked for the catering chain and hospitality sector and Peddy was working as a manager in the
hotel. They both are understood about this sector that wet actual it is and they make profit through
it(Charan, 2017). They took loan from the bank to increase in their supply chain and also to develop
new products in the market regarding to their shop and business.
Their product is less demand on the month of winter because it introduces the cold products and in
winter least people create their interest toward the product.
Advantage of general partnership in which Frank and Peddy doing business
Easy to establish
No interference of government
strong growth potential
synergistic
2.Porters five forces in reference to Fra-Pas yoghurt
Base Fra-Pas yoghurt golden spoon frosty boy
Industry ice cream ice cream ice cream
rating(out of 5) 4 3.5 3
competitors a few competitors many competitor a few competitors
Porter five forces model which is used to analyse the environment in which an organisation
works. Following things which include in this model-
Threat of new entrants- In this model it is threat for the new entrants to open a business in this
competitive market. In the market nothing which is not available so competition is already high and
they have to face more of the cost factors legislation and interfere of Govt. etc. Fra-Pas Yoghurt use
their product to take competitive advantage because their shop is nearby the shopping mall and they
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are only the persons who sale that product so they earn competitive advantage through it(Itani and
Mason,2014).
Power of supplier- If a supplier is in power than it make business effected because high demand of
the product in the market make supplier more powerful and they start raising in price of the product
or raw materials. In the market only a few supplier exist for a particular product. In case of Fra-Pas
Yoghurt there is no threat of supplier because the raw material is not costly and it is all made by the
shop Fra-Pas Yoghurt. From using this advantage Frank and Peddy can earn more profit because it
is threat for any business to high supplier power. So they both can earn profitability and increase
their credibility for the business.
Power of buyer- Buyer power also make impact on the business because they have alternative
choices of many products and they can switch anytime for the another product. Customers are price
sensitive and 90% customer move toward the product according to their price. Many of customers
also quality conscious and they only demand for quality product no matter what the cost is. Fra-Pas
Yoghurt can take advantage of it because they have many customers and Fra-Pas Yoghurt is only
one shop which provide the ice cream at that particular area and it is special type of ice-cream. They
give both cost and quality products so they can earn competitive advantage for their shop(Itani and
Mason,2014).
Availability of substitutes- It is threat for any organisation that every product have its substitute
product so threat of switching the customers to another product. Customers switching their product
with a little difference in price. In the case of Fra-Pas Yoghurt shop, in that point of sale no one is
having substitute product in comparison to that, only food and drink stores are available near them.
Fra-Pas Yoghurt can create profitability to take advantage of this thing because they have not fear of
substitute good but they also have to move to different product line because this product is
seasonable.
Competitive Rivalry - The big threat for any organisation is competitive market because day by
day many of the competitors' comes with the same product. Fra-Pas Yoghurt have to move toward
different product line because it is threat for them to exist in the market with only one product. They
can start food supply also because the ice cream is seasonable due to the weather and in the month
of cold their product sale decreases. So they can take competitive advantage to use this idea and
earn more profitability and goodwill.
Mini Conclusion of five forces- From the above study it has been summarised that if Fra-Pas
Yoghurt wants to make sustainable business performance with competitive advantage then they
have to follow more other thing. They can increase in their product line for new products like
different varieties of food. From this they can make competitive advantage.
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3.Macro environmental factors
These are that factors which directly influence on the business. It affects on the decision making
process of the business. Macro environmental factors affect the business too much. It may be
influence by internal environment or external environment the factors which effect on the
organisation are political, economical, social, technological, environmental and legal. Here will
describe 3 factors and how they can help to improve Frozen Yoghurt business(Bai and et.al., 2017).
Technological factor- It is the most effected factor of organisation. Everyday comes with a new
technology and with a new idea so in the business technology create a special place. Technology is
not only used for developing the new product or idea, it can also use for the efficiency run of
business. Frozen Yoghurt business can use new technologies for make stability in the market and
also for penetrating customers toward them. They can use the online selling policy to make business
profitable because if the customers like the product they will definitely use the online shopping
from them. It is costly for the organisation but also make profitable for the business.
Social factors- Social factors include many of the things like gender, age, lifestyle change,
immediate needs, trends fashion etc. They all factor effect the business because customers taste and
preferences are change day by day and it creates major impact on the business. Frozen Yoghurt
business also affected by social factors like taste and preferences but they can use this for their
profitability because they give quality product in low cost and there is no one who replace their
business so Frozen Yoghurt business make profit on the bases of good public relation and having
positive impact on social factor on their business. customers are also health conscious and their
product do not affect negatively on the customers.
Environmental factor- Business is also affected by environmental factor in term of external and
internal environment. Scarcity of raw material, polluted environment, carbon footprint they all are
included in environmental factor. For Frozen Yoghurt business it can be probable of scarcity of raw
material but it is normal and small business so they are not much effected by this thing because it is
only one shop in that particular area of dairy products so they can achieve their goals and also create
profitable business by taking advantage of it(Bai and et.al., 2017).
Mini conclusion- From the study of these three factors it has been summarised that these factors can
help the business Fra-Pas Yoghurt. and these factors not affecting too much to the business so they
have to take benefit of it and take themselves in competitive advantage.
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CONCLUSION
From the above study it has been summarised that partnership is a business type in reference to their
business. Porters five force model which described how to make competitive advantage. between
Frank Jones and Peddy Jacksons had successfully implemented and their business has also situated
successfully. They both were known to hospitality industry and it made positive impact on the
business. It has also summarised that porters five forces model helped them to achieve their goal
and they needed to be create a new product line to make stability in the market because competition
in the market was too hard. Also, explained about the external and macro factors and their impact
on the Frozen Yoghurt business. Technological, social, environmental factors impacted positively
on their business.
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REFERENCES
Books and journals
Bai and et.al., 2017. Macro-environment analysis and management countermeasures of nursing
development in China based on PEST model. Chinese Journal of Hospital
Administration.33(10). pp.784-786.
Charan, R., 2017. HOW HIGH‐POTENTIAL LEADERS CAN MASTER THE MACRO
ENVIRONMENT. Leader to Leader, 2017.(85). pp.31-36.
Iossa, E. and Martimort, D., 2015. The simple microeconomics of public‐private
partnerships. Journal of Public Economic Theory.17(1).pp.4-48.
Itani, N. and Mason, K., 2014. A macro-environment approach to civil aviation strategic
planning. Transport Policy.33.pp.125-135.
Tasios, A., 2018. The implementation of TQM models in an unstable macro-environment (Doctoral
dissertation, University of Salford).
Yescombe, E.R., 2018. Public-Private Partnerships in Sub-Saharan Africa: Case Studies for
Policymakers 2017.
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