Frozen Yoghurt Shop: Partnership, Competitive Analysis, and Growth

This report analyzes the business of Frank and Peter's frozen yoghurt shop, 'Yoghurt ology.' It begins by recommending a partnership structure for their business, detailing the advantages of a written agreement and equal profit/loss sharing. The report then applies Porter's Five Forces to assess th...Read More

Individual report based on a
case study

Table of Contents
INTRODUCTION...........................................................................................................................3
QUESTIONS...................................................................................................................................3
Partnership as a type of business with reference to Frank and Peter Yoghurt ology, Frozen
Yoghurt shop...............................................................................................................................3
Porters five forces to analyse growth of company.......................................................................4
Macro environmental factor that can help to improve business..................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Frozen Yoghurt is a dessert made with yoghurt and other dairy and non-dairy products.
Yogurt contains low fat than ice-cream. In this large variety of flavours are being added. From
the case study it has been analysed that Frank and Peter are engaged in opening a business of
frozen yoghurt. Shop has been opened at busy Bullring centre. Present report will lay emphasis
on advising Frank and Peter to open partnership firm. It will also lay emphasis on Porters five
forces in order to achieve competitive advantage by managing the relationship with these forces.
Assignment will also lay focus on macro environmental factors that can lay impact on the
working of business.
QUESTIONS
Partnership as a type of business with reference to Frank and Peter Yoghurt ology, Frozen
Yoghurt shop.
Partnership is a legal form of business where two or more than two individuals agreed to
work together as co-owners. As Frank and Peter both are engaged in investing their money in
new business activity that specialises in selling Frozen Yoghurt. It has been analysed from the
case study that both has invested £30000 each in order to start their business. They both have not
come into any legally bounded agreement so partners are not allowed draw any salary. In this
case they would have to share profit and losses in business equally. Partnership agreement can
assist Frank and Peter in outlining roles and responsibilities of each other. This can lead to less
chaos and they can focus on more productive aspects (Moreno-Izquierdo, Ramón-Rodríguez and
Perles-Ribes, 2016). Partnership must be in written agreement as this will prevent members in
feeling like only one of them is having whole burden. Partnership can assist Frank and Peter in
sharing the risk together, in this if written agreement exists, they do not have to bear risk of loss
alone. So, it is beneficial for both of them to engage in doing partnership business.
It also gets dissolves when one partners die or retired, so control of business can come to
hands of other individual. Also, it increases their credibility to deal with suppliers. If Fran and
Peter are engaged in doing partnership business, more capital is being available to them. This can
be beneficial for Yoghurt ology to grow and reach out large number of markets. A partnership
doesn't pay taxes on its income but "passes through" any profits or losses to the individual
partners. If they come in general part5nership, the partners can manage company’s lability and
can also look upon the liabilities of other individual. In order to make sure no future dispute exist

among them Frank and peter must be engaged in opening a partnership business. Written
agreement must be prepared by them, so that loss and profit can be shared by them equally or
according to the portion of investment they had made. It has been analysed that partnership
business are given more benefit than corporations, so Frank and Peter must enter into it. In this
agreement partners are liable for debt, there is no limited liability included in this.
Porters five forces to analyse growth of company.
Porters five forces can be used by Yoghurt ology in order to analyse the competitive
market which can assist firm in growing. It includes the following:
Threat of new entrants: It is high, as the business is being opened by Frank and Peter in
Bullring centre which is a very famous shopping stop in Birmingham city centre. As there are
many food shops in street, but no one is either selling Frozen Yoghurt (Srdjevic,Bajcetic and
Srdjevic, 2015). So, there are high chances that competitors can enter into market and attract
consumers. Also, as firm is making use of low quality product to prepare frozen yogurt, there
might occur chances that competitors come up with high quality yoghurt which assists them in
attracting more consumers.
Threat of substitutes: Substitutes in the frozen yoghurt industry are often linked with the
product that have the same purpose to serve consumers (Lewis, 2017). Threat of substitute is
high, as more and more people are becoming health conscious and are laying full focus on their
diet. So, there might occur chances that customer is engaged in buying more organic and healthy
product rather than frozen Yoghurt, this can lay impact on the profitability aspects of Yoghurt
ology. As the trend of low fat and organic dessert is increasing, so it can be a threat to business
of Frank and Peter.
Competitive Rivalry: It is low as no existing company in Bullring is engaged in doing
business related to frozen yoghurt. When rivalry becomes high, then Frank and Peter have to
engaged in doing intense advertising as the only mode of promotion which is being used by them
is word of mouth publicity. It would also be critical when barriers to exist from industry is high.
Bargaining power of suppliers: It is low, as the Frozen yoghurt is created from, milk and
there are lot of suppliers in Birmingham who are engaged in selling milk. Peter and Frank are
buying the raw materials from cash and carry stores which sales them the ingredients in low
price (Perera, 2017). Also, Peter and Frank are thinking of making their product healthier.

Buying from local organic farm can increase the cost of company, so both partners can engage in
getting product at low price. s
Bargaining power of buyers: It is high, as consumer can switch from healthier and organic
product. Also advanced technology can act as a threat to Yoghurt ology, as there are machines
available in market, so consumer can engage in making their own dessert.
Macro environmental factor that can help to improve business
There are some external factors that can impact on Frozen yogurt business. So, it is
necessary to identify those and analyse how it can be useful for them in their growth. Also, how
change can be implemented and how it will benefit firm in long term. The various factors are as
follows :-
Economic- This is factor related to inflation rate, GDP, income level, etc. So, any change in
these factors will affect economic growth of nation as well as local region (Epstein and Connors,
2017). Besides that, if there is rise in income level of people it will allow them to spend more.
This will increase flow of money within economy and market. there will be positive impact on
growth and development of Birmingham. So, due to it, market of that city will be affected
resulting in increase in sales and profits of Frozen yogurt business. Moreover, change in trade
policies may also impact on Frozen yogurt business market growth and expansion.
Social – it is also a macro factor that can impact on Frozen yogurt business. The factor is related
to change in taste and preference of people. Furthermore, it includes change in cultural ethics,
beliefs, values need, etc. of people. For example- any change in trend related to healthy lifestyles
as people may become more health conscious and prefer not to eat yogurt. Therefore, Frozen
yogurt business can start offering healthy and nutritious products as well. The people will focus
towards eating healthy food. Alongside, demand of organic products will increase in the market.
Hence, change in social factor will enable Frozen yogurt business to increase sales and grow in
market. With this, they can attract new customers as well.
Technological- this macro factor is related to change in technology or technological
advancement. With use of high and advance technology Frank and peter can improve their
business. In this, they can develop an App and start offering products via online. Through this,
they can stat services of home delivery (Pierre, 2016). It will help in attracting more people and
increasing sales. Along with it, by using tools and software Frank and Peter can improve product

quality. it will enable in gaining trust of customers. Moreover, cost can be also be reduced by
using technology within business operations.
Thus, these all the external factors that can be useful in improving Frozen Yogurt
business. Frank and peter can make changes in process through which new products are
developed. this will help in attracting people. Furthermore, by doing technological change it will
be useful in reducing costs and enhancing quality of yogurt products. However, by reducing cost
profit margin can be increases. In addition, shifting business to online model will led to rise in
sales.
CONCLUSION
From the above study, it has been summarised that Frank and peter has to be involved in
making written agreement in order to open partnership business. They have high threat from
substitutes and new entrants. Company has to be engaged in doing more intense marketing so
that they can grow and achieve their goals and objectives. They have also made use of more
organic material to make dessert.

REFERENCES
Books and Journals
Lewis, R., 2017. Porter's Five Forces of competitive advantage.
Moreno-Izquierdo, L., Ramón-Rodríguez, A.B. and Perles-Ribes, J.F., 2016. Pricing strategies of
the European low-cost carriers explained using Porter's Five Forces Model. Tourism
Economics.22(2). pp.293-310.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Rastogi, N.I.T.A.N.K. and Trivedi, M.K., 2016. PESTLE technique–a tool to identify external
risks in construction projects. International Research Journal of Engineering and
Technology (IRJET). 3(1). pp.384-388.
Srdjevic, Z., Bajcetic, R. and Srdjevic, B., 2015. Identifying the criteria set for multicriteria
decision making based on SWOT/PESTLE analysis: a case study of reconstructing a
water intake structure. Water resources management.26(12). pp.3379-3393.
Epstein, J.L. and Connors, L.J., 2017. School and family partnerships. Practitioner. 18(4).p.n4.
Pierre, J. ed., 2016. Partnerships in urban governance: European and American experiences.
Springer.

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