Fra-Pas Frozen Yoghurt: Partnership, Porter's 5 Forces & Macro Factors

This report provides a comprehensive analysis of Fra-Pas Frozen Yoghurt, a business established as a general partnership by Frank Jones and Paddy Jackson. It explores the implications of their partnership structure and analyzes the competitive landscape using Porter's Five Forces, evaluating competitive rivalry, the threat of substitutes, the threat of new entrants, bargaining power of suppliers, and bargaining power of customers. The report also identifies key macro-environmental factors, including economic, demographic, and social/cultural aspects, that impact the frozen yogurt business. The analysis provides insights into achieving a competitive advantage and improving the overall business strategy for Fra-Pas Frozen Yoghurt.

Running head: MANAGEMENT
Management
Name of the Student:
Name of the University:
Author Note:

1MANAGEMENT
Table of Contents
1. Partnership as Business Type in Reference to Frank Jones and Paddy Jacksons Fra-Pas
Frozen Yoghurt Shop.................................................................................................................2
2. Porters 5 Forces for Analysis of Fra-Pas Yoghurt Business and how Achieve Competitive
Advantage by Managing Relationships with the Forces............................................................3
3. Three Macro-environmental Factors that will improve the Frozen Yogurt Business............5
References:.................................................................................................................................8

2MANAGEMENT
1. Partnership as Business Type in Reference to Frank Jones and Paddy Jacksons Fra-
Pas Frozen Yoghurt Shop
The concept of partnership refers to the business comprising of different individuals,
each owning a part of business (Siurdyban 2014). The association between partners and
duties of the partners is made clear in partnership agreement. It is s often found that each of
the partner have certain amount of investment in the partnership business. Besides, the share
of profits and loss of partnership depends on the percentage share of the ownership of each of
the partners.
However, the concept of partnership has undergone massive changes over years as
businessmen have introduced newer features to older forms of business. The new types of
partnership intend to reduce the partnership liability issues (Cohen 2017). It is to be noted
that Partnerships formed following the laws of the state laws therefore certain types of
partnership might not be existent in some of the states. The two types of partnership include:
General Partnership
The concept of general partnership refers to partnership comprising of only the
general partners (Allen and Kraakman 2016). Here each of the general partners plays a role in
managing the business while taking responsibilities for the business liabilities. Suing of one
business partner will hold the others liable and hence this form of partnership is less
desirable.
Limited Partnerships

3MANAGEMENT
The concept of the limited partnership combines both the general partners and the
limited partners (Davies 2017). The limited partner does not participate in the daily
management activities and therefore have a limited role. In most of the cases, it has found
that limited partners are the investors who does wish in participating in partnership but
provides investment and receive the share of the profits.
In this regard, it can be said that Frank Jones and Paddy Jackson went into general
partnership for setting up the ‘ Fra- Pa’s Frozen Yogurt Shop’, an ice-cream parlour that
specializes in sell of the frozen yogurt. They decided to go into partnership for setting up the
shop after their redundancy from respective employments. Frank has been a chef in a
contractual catering chain of restaurant and Paddy has been a hospitality manager in the local
hotel. Their redundancy money provided start-up capital for business venture. Both of them
contributed close to £30,000 that helped in securing three year lease on the shop along with
some amount of working capital paying the suppliers and stocking enough inventory. The
existing outlet has broken even with a rapid growth in the sales revenue. This necessitated the
need for additional finance of about £20, 000 in form of business loan from the bank. This
would help in business promotion in local community and develop newer product lines.
2. Porters 5 Forces for Analysis of Fra-Pas Yoghurt Business and how Achieve
Competitive Advantage by Managing Relationships with the Forces.
Porter’s Five Forces helps in determining level of competition within the industry
environment along with determining the profit level. It also helps businesses in preparing and
responding to changing roles of the business and helping them in analyzing the business
problems and opportunities. However, the five forces of Porter include:

4MANAGEMENT
Competitive Rivalry : Competition acts as advantage for various industries as it allows
them in working harder and developing products for attracting the target audience and the
own customers(E. Dobbs 2014). There exist a higher level of competition between the frozen
dessert and the ice cream industry. United Kingdom is still a novice in the frozen dessert
industry and so competition faced by Fra-P’s Frozen Yogurt shop in terms of raw materials is
less. Most often it has been found that the companies with the industry are usually small with
close to 20 workers which might also be the reason for the rise in competition within the
particular industry. The competitive advantage of Fra-P’s Yogurt shop lies in primarily
attracting the health conscious consumers thereby targeting people who buy such products
due to their good health. In addition due to the absence of a frozen yogurt shop within the
vicinity of its location at Bullring Centre, the Fra-P’s Yogurt shop will also experience the
growth in the target audience.
Threat of the Substitutes: Substitutes in the frozen yogurt industry includes products
having similar purpose and chosen by consumers (Suwardy and Ratnatunga 2014). It has
been found that no frozen yogurt can be totally healthy but can be organic, have reduced fat
or sugar content. Thus, frozen yogurt can act as a bigger threat to the regular ice cream due to
its lower fat content. Besides, the increasing number of health conscious customers is looking
for products healthier than ice cream. This might results in the rise in popularity for frozen
yogurt provided by the Fra-P’s Frozen Yogurt shop.
Threat of the New Entrants: Setting up a company requires everything to be done from
the scratch. However, the start up can face various threats within the industry that results in
the brand loyalty (Nillesen, Pollitt and Witteler 2014). Besides, a start up like Fra-Pa’s
Frozen Yogurt shop will face a harder time sharing with target market. The new Frozen
Yogurt Shop can however enhance its competitive advantage through brand loyalty and

5MANAGEMENT
repeat purchase through its lower fat, fat free and sugar free content. Further, the company
might find it costlier in setting up the shop.
Bargaining Power of the Suppliers: The power of suppliers in the particular industry is
weaker since yogurt is prepared from milk and there exists innumerable milk suppliers in the
UK (Andersson, Forsgren and Holm 2015). Thus, the ample number of milk suppliers in UK
makes it easier for Fra-Pa’s Frozen Yogurt Shop to make a choice of its suppliers from the
huge number. The presence of the huge suppliers also enables an easier movement to a newer
supplier if required. Thus, supplier cannot exert power over the Yogurt Shop that requires
raw materials.
Bargaining Power of the Customers: The power of the buyers’ increases or decreases
with the profit of the firm (Suwardy and Ratnatunga 2014). However, the power of the buyers
in the frozen yogurt industry is higher since the consumers possess the power of switching to
alternative product quite easily. They can easily shift to a brand offering better products
without any change in cost. The other aspect lies in advanced technology of the generation
which they can use to make their own products without making a purchase. Thus, Fra-Pa’s
plans of introducing organic products will not only prevent the customers from making a shift
but will also help the company in gaining competitive advantage. However, during winters
there will lesser demands for the products.
3. Three Macro-environmental Factors that will improve the Frozen Yogurt Business
The macro- environmental factors that would aid in improving the frozen yogurt
business are as follows:

6MANAGEMENT
Economic Factors: These macro-economic factors represent those that influence the
buying power and the spending patterns of the consumers. It includes the level of the income,
policies, nature of the economies, trade cycles, distribution of the wealth and the income
(Asif 2013). When income of the family or the country change it also leads to a change in the
spending pattern or buying behaviour of the country or the family. A standard level of income
will ensure more workers in frequenting the shop during the day thereby leading to a rise in
profit of Far-Pa’s Frozen Yogurt Shop. Besides, consumer confidence also acts as economic
indicator measuring the overall optimism of the consumers regarding state of economy.
Confident consumers are more willing in spending money compared to the consumers with
lower confidence that implies businesses will prosper when there exists higher consumer
confidence. The periods of higher consumer confidence put forward opportunities for the
new businesses in entering the market, while the period of the lower confidence forces
companies in cutting down the costs for maintaining profits.
Demographic Factors: Demographic environment deals with studying of the human
population in terms of the density, size, location, gender, race, age and occupation (Shah and
Chatterjee 2015). This is a crucial factor that helps marketers in dividing population into
different target market and market segments. The demographic data will help Fra-Pa’s
Yogurt Shop in better targeting the audience since it is frequented by a mix batch of
customers that varies on weekdays and weekend. During the daytime, the shop attracted
workers and remained a popular destination for the young children and the shoppers while
during the weekends it is frequented by young adults and the teenager as a meeting ground
for their friends. This would enable them in providing a healthier and better quality product
at lower prices and would help the business in growing based on signage and
recommendation of the word of mouth.

7MANAGEMENT
Social and Cultural Factors: Social responsibility has become part of the marketing
that is slowly emerging in the marketing literature (Freeland-Graves and Nitzke 2013). Firms
should undertake marketing which is socially responsible that allows them in elimination of
the socially harmful products. The start up yogurt shop buys its bulk products from cash &
carry attracted by its convenience and lower price but remains in dilemma about the margins
and prices if they are bought from the local organic firm. However, this would ensure the
long term viability of the business since the health conscious customers would not mind in
paying more in order to meet their varied needs.

8MANAGEMENT
References:
Allen, W.T. and Kraakman, R., 2016. Commentaries and cases on the law of business
organization. Wolters Kluwer law & business.
Andersson, U., Forsgren, M. and Holm, U., 2015. Balancing subsidiary influence in the
federative MNC: A business network view. In Knowledge, Networks and Power (pp. 393-
420). Palgrave Macmillan, London.
Asif, K., 2013. Factors effecting unemployment: A cross country analysis. International
Journal of Academic Research in Business and Social Sciences, 3(1), p.219.
Cohen, E., 2017. CSR for HR: A necessary partnership for advancing responsible business
practices. Routledge.
Davies, J.S., 2017. Partnerships and Regimes: The Politics of Urban Regeneration in the
UK: The Politics of Urban Regeneration in the UK. Routledge.
E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 24(1), pp.32-45.
Freeland-Graves, J.H. and Nitzke, S., 2013. Position of the academy of nutrition and
dietetics: total diet approach to healthy eating. Journal of the Academy of Nutrition and
Dietetics, 113(2), pp.307-317.
Nillesen, P., Pollitt, M. and Witteler, E., 2014. New utility business model: A global view.
In Distributed generation and its implications for the utility industry (pp. 33-47).

9MANAGEMENT
Shah, D. and Chatterjee, A., 2015. An empirical research on different categories of frozen
foods. Reflections-Journal of Management, 4.
Siurdyban, A., 2014. Understanding the IT/business partnership: A business process
perspective. Information Systems Frontiers, 16(5), pp.909-922.
Suwardy, T. and Ratnatunga, J., 2014. Business Landscaping for Strategic Advantage:
Evidence from a Multi-Sector Study. Journal of Applied Management Accounting
Research, 12(2).
Suwardy, T. and Ratnatunga, J., 2014. Business Landscaping for Strategic Advantage:
Evidence from a Multi-Sector Study. Journal of Applied Management Accounting
Research, 12(2).