Competitive Analysis of Fra-Pa's Frozen Yogurt Business

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CAREER MANAGEMENT

Table of Contents
INTRODUCTION............................................................................................................................. 3
1. EVALUATION OF PARTNERSHIP OF FRA-PA’S FROZEN YOGURT.................................................4
2. PORTERS 5 FORCES TO ACHIEVE COMPETITIVE ADVANTAGE....................................................5
3. THREE OF THE MACRO ENVIRONMENTAL FACTORS THAT CAN HELP IMPROVE THE FROZEN
YOGHURT BUSINESS...................................................................................................................... 8
CONCLUSION............................................................................................................................... 11
REFERENCES.................................................................................................................................12
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List of Figures
Figure 1: Porter’s Five Forces Analysis...........................................................................................5
Figure 2: Macro Environmental Analysis........................................................................................8
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INTRODUCTION
The process in which a person plans his actions regarding the job or business, in order to
strengthen his/her current financial condition and to secure the future is termed as career
management. In this report, the study of career management of Frank Jones and Paddy Jackson
in a business partnership will be carried out (Greenhaus et al., 2010). They are running the
business of selling the Frozen Yogurt, with the name of the shop as Fra-Pa’s Frozen Yogurt. The
external analysis of the business organisation of Frank and Paddy will be carried out in order to
enable them to improve their business.
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1. EVALUATION OF PARTNERSHIP OF FRA-PA’S FROZEN YOGURT
On the basis of ownership, there are three kinds of business organisation such as sole trader,
cooperation and partnership (E. Dobbs, 2014). The business type of Fra-Pa’s Frozen Yogurt is a
partnership in which the profit and loss of the business outcome are shared between Frank and
Paddy equally. Basically, the Fra-Pa's shop is an organisation which provides the food products
but focuses mainly on the frozen yoghurt.
The partnership of the business allows both the owners to take part equally in the
implementation of the strategies in the business venture. There are some positive points of the
partnership business such as on the grounds of legality. Since it is the partnership business, less
paperwork is done as the partnership dwell on the trust which the partners have towards each
other. In partnership business it is easy to establish the business from the point of view of cost
as more capital investment can be done as compared to sole trading. The privacy is more in
partnership business as compared to the group business (E. Dobbs, 2014). The partnership
allows the organisation in tax saving process along with the partial exterior regulation. The
most important and effective advantage is that in future the legal structure can be altered as
per the conditions.
There are also some negative points of the partnership which can be understood from the
scenario of Fra-Pa's shop. The organisation has invested 30,000 GBP in the establishment of the
business venture and looking forward to taking a loan of 20,000 GBP from the bank. As the
business venture is a partnership there are chances of disagreement on some issues and in
future, if the partnership breaks or any kind of discrepancies takes place, one of the partners
may have to value the partnership assets and it can be costly.
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2. PORTERS 5 FORCES TO ACHIEVE COMPETITIVE ADVANTAGE
In order to continue the existence of the organisation, Fra-Pa’s Yogurt will have to achieve a
competitive advantage in the target market. To adjust and arrange the strategies of an
organisation in order to gain the competitive advantage Porter’s Five Forces model is used
below:
Figure 1: Porter’s Five Forces Analysis
Source: [Author’s Work]
COMPETITIVE RIVALRY
As there are many other organisations in the market which provides frozen yoghurt along with
the different kind of food products, it is important for the Fra-Pa’s to implement some
strategies which can provide value to the organisation’s product so that the consumers will
recognize the product value of the organisation (E. Dobbs, 2014).
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PORTER'S
FIVE
FORCES
COMPET
ITIVE
RIVALRY
POWER
OF
SUPPLIE
RS
POWER
OF
BUYERS
THREAT
OF
SUBSTIT
UTION
THREAT
OF NEW
ENTRAN
TS

POWER OF SUPPLIER
When the number of suppliers is less in the market, the suppliers have the power to control the
supply and increase the demand. Since there are many suppliers of the raw materials needed
for food production in the market. This factor does not affect the Fra-Pa's in an effective
manner.
POWER OF BUYER
When there is less number of buyers in the market, they control the sales of the products of the
organisations. Since the Fra-Pa’s sells Yogurt which is a food product, there are many customers
for the organisation’s product (Schiele, 2010). Hence this factor does not affect the organisation
significantly.
THREAT OF SUBSTITUTION
When the quality of the product reduces below an expected level, the customers get
dissatisfied and thinks of choosing another organisation, termed as the threat of substitution.
Since the organisation provides the food product, this factor can affect the organisation
severely so the organisation must maintain the level of quality of the yoghurt.
THREAT OF NEW ENTRANTS
As a moderate amount of capital is required for the establishment of the food providing
organisation, it is not difficult to at least enter in the food production sector (Schiele, 2010).
This factor can affect the Fra-Pa’s business, and for that, the organisation must keep the quality
of the product and the services to a satisfactory level so that the arrival of the new organisation
will not affect the sales of the Fra-Pa’s.
COMPETITIVE ADVANTAGE THROUGH MANAGEMENT OF THE FORCES ABOVE
As the Fra-Pa’s provides only Frozen Yogurt, which limits the variety of the products of the
organisation so the organisation must include some innovative food products in order to
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differentiate the services and product of the organisation. The quality check process must be
tightened to make sure that the continuous production of the good quality food takes place.
The organisation must implement effective promotional and advertising strategies in order to
strengthen the brand image of the Fra-Pa’s so that it will not get affected by the new emerging
organisations. These are some steps and strategies through which the competitive advantage
can be obtained.
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3. THREE OF THE MACRO ENVIRONMENTAL FACTORS THAT CAN HELP
IMPROVE THE FROZEN YOGHURT BUSINESS
The business of an organization gets affected by the external environment present outside the
organization. For analysis of the external environment, Pestle tool can be used which can direct
the Fra-Pa's to improve its business. The analysis of the three macro environmental factors is
carried out below in order to improve the business of the organisation.
Figure 2: Macro Environmental Analysis
Source: [Author’s Work]
POLITICAL
Political factors are those parameters which affect the organisation from the introduction of the
policies and amendments made by the government for the business organisations. The
government of UK has different policies for different kinds of organisations (Sultana, 2012). As
the Fra-Pa's is a food-producing organisation, it has to follow the policies of the government
related to the minimum weight of nutrition available in the food. The political factors also
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MACRO
ENVIRONMENTA
L ANALYSIS
POLITICAL
ECONOMIC
SOCIO-
CULTURAL

concern about the political relation of the UK with the other countries as it affects the
organisation if it plans to expand its business on a global level.
ECONOMIC
The economic factors are those which affect the organisation from the economic point of view.
As the economy of the UK is stable at present, it does not affect the organisation in any
negative manner (The Conversation Media Group Ltd, 2019). But the economy is a parameter
which is not stable for all the time but changes with changing trends and policies of the
government. As it can be seen that the Brexit affected the economy of the UK government as it
affected adversely to the large scale organisation by reduction in the per capita income of the
organisation, while for the small scale organisation it provided chances to develop the business
venture as the small scale organisations are backbone of the UK and the customers of large
scale organisations are being served by the small scale organisations.
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SOCIO-CULTURAL
This factor is related to the effect on the organisation by the local people of the country where
the organisation is providing its services. The sales of the organization depend on the
satisfaction level of the customers. As the Fra-Pa's Frozen Yogurt sells the food product, it is
significant that the organisation must take care of the interest of the customers regarding the
taste and tradition in the food sector (Yearley, 2014). The organisation gets affected by the
interest of different age group customers such as children, youngsters and old age citizens. The
organisation must take serve the interest of the people carefully.
THE WAY MACRO FACTORS HELP IMPROVE THE BUSINESS OF FRA-PA’S
The macro factors such as political, economic and socio-cultural factors help the organisation in
getting acknowledged about the safety measures which are to be taken. The political policies of
the government for the development of the business organisations helps the Fra-Pa’s in
planning and building strategies to strengthen the business of the Yogurt. The government
often implements strategies to give tax relaxation to the organisation. Since the organisation
can know about the interest of the people of the country, they can produce the products and
goods according to the interest of the people, thereby increasing the sales of the organisation.
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CONCLUSION
Career management in the field of business can be done with the implementation of
appropriate strategies. In this report, the career management for Frank and Paddy the owners
of Fra-Pa's Frozen Yogurt has been studied along with the implementation of the strategies and
safety measures. The report is made up of the analysis of three parts carrying the analysis of
the partnership business, effects of the forces of Porter on the organisation and the macro
environmental factors which affect the organisation. The discussion of Porter's five forces in
attaining the competitive advantage is done along with the study of how the analysis of macro
factors helps in improving the business.
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