BA30591E Introduction to Business: Little Dessert Shop Analysis Report

This report analyzes Little Dessert Shop, a business located in the Bullring shopping center in Birmingham, focusing on its business structure, competitive environment, and external factors. It begins by evaluating the partnership model, discussing its advantages (simplicity, ease of setup, decision-making) and disadvantages (disagreements, profit sharing). The report then applies Porter's 5 Forces framework to assess the competitive landscape, including the bargaining power of suppliers and buyers, threats from new entrants and substitutes, and the intensity of rivalry. Finally, it examines three macro-environmental factors (political, economic, and social) and their impact on the business, emphasizing the importance of adapting to government policies, economic fluctuations, and consumer preferences. The report concludes by summarizing the key findings and highlighting the importance of strategic planning for success.

BA30591E– Introduction to
Business

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Evaluate a partnership as a type of business organisation with reference to Mary and Sue’s
‘Little Dessert Shop’. .................................................................................................................1
2. Use the Porters 5 Forces framework to analyse ‘Little Dessert Shop’ business and advise on
how Mary and Sue can achieve competitive advantage by managing the relationships with
these forces. ................................................................................................................................2
3. Clearly discuss any three of the macro environmental factors with particular reference to
how they can help improve the business.....................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Business includes different functions and activities that is essential for successfully and
effectively performing organisational task (Gursansky, Kennedy and Harvey, 2020). It is
essential for business to analyse different factors or elements that will lead to have direct impact
on overall growth of business. It is important company to develop effective strategies which is
significant for enhancing business task or gaining edge over other rival companies. This report is
based on Little Dessert shop. This organisation is located in Bullring shopping centre in
Birmingham. This company is providing high quality products and services to customers. This
report will include partnership as business type. This report will includes five force framework to
different business factors. Apart form this, various macro environment factor have been
determined in order to improve business.
MAIN BODY
1. Evaluate a partnership as a type of business organisation with reference to Mary and Sue’s
‘Little Dessert Shop’.
There are different types of business organisation that is significant for determining
business performance and it impact in its activities. The major type of business organisation
includes sole proprietorship, partnership, corporation and limited liability company. In references
to Mary and Sue's 'Little Dessert Shop' partnership is most effective. Partnership can be describe
as the business type with formal arrangement between two or more parties in order to manage or
conduct business operations (Nolden, Barnes and Nicholls, 2020). In this type of business,
partners will share profit and loss as well as take decision collectively in order to increase
business practices. In Little Dessert Shop all partners will share liabilities and profits equally
while conducting or performing business practices. Partnership business type will be beneficial
for respective company as it will assist in sharing working load. There are some drawback
related of partnership that could have negative impact on Mary and Sue’s ‘Little Dessert Shop’.
Advantages and disadvantages of partnership is mention below in detail.
Advantages of business partnership
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 Business partnership has less formal and it includes fewer legal obligations. It will be
beneficial for Mary and Sue's 'Little Dessert Shop' organisation as it will be simpler
partnership business as compare to limited companies (Haak-Saheem and Festing, 2020).
 It is easy for Mary and Sue's to create and perform business practices. Partnership
business does not need any registration with companies house.
 This will assist company is taking better decisions as two heads a are better than one.
 This greater borrowing capacity and high calibre employees will make effective partners.
 There will be flexibility in business practices and it is more easy for organisation to
successfully and effectively carry out business practices. Partners will be able to
successfully manage business practise in more significant manner.
Disadvantages of business partnership
 Disagreement between partners will lead to have major negative impact on business
(Crisostomi and et.al., 2020). This type of business practices have major danger of
disagreement and increase in conflicts will influence overall functioning of business.
 In partnership business, profits will be shared between partners. This can lead to
inconsistency between partners as profit will not be shared a per partner efforts in
business.
2. Use the Porters 5 Forces framework to analyse ‘Little Dessert Shop’ business and advise on
how Mary and Sue can achieve competitive advantage by managing the relationships with
these forces.
This is effective model that is significant for identifying and analysing different factors
that will have major impact on overall performance of business (Al-Fedaghi and Makdessi,
2020). It is essential that Little Dessert Shop of Mary and Sue is considering this force in order
to take correct and accurate actions for growth and development of business. This will assist
organisation in gaining competitive advantage over other rival companies. Different forces of
this model is mention below in respect to Mary and Sue’s ‘Little Dessert Shop' is mention below
-  Bargaining power of suppliers - Little Dessert Shop is collecting raw material and other
resources form suppliers in order to take correct decision for enhancing business
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practices. It is collecting resources form different suppliers and due to this bargaining
power of supplier power has lower impact on business. Bargaining power of buyers – This force includes the ability of customers to drive the
price of business offering. Respective company is providing its products and services to
customer who visit Bullring Shopping centre in Birmingham (Hay and Eagle, 2020).
Bargaining power of customers will lead to have major impact on overall performance of
business and pricing strategies. This force will have moderate influence over business. Threat form new entrant - Little Dessert Shop is newly established company and entrant
of new business that is providing products and services in more creative manner will lead
to have direct influence on this organisation as well as affect its productivity. Threat of
new entrant force will have direct high impact of business and its profitability. Threat form substitute of products – Respective company is providing high quality food
and drink products in order to meet with the needs of customers. There are various
companies which is providing its products in same market area. High number of
substitute products will have influence over functioning of organisation. This company
has developed its strong brand image in market area as well as create effective
relationships with them. So this force have moderate impact on business.
 Threat form existing rival companies – This refers to the risk or issues that is faced by
organisation due to current rival companies (Vidgen, Hindle and Randolph, 2020). Little
Dessert Shop is dealing in highly competitive environment and this force will lead to
have significant impact on organisation task. It is essential for Little Dessert Shop to
create effective marketing strategies in order to gain competitive edge over other rival
companies.
3. Clearly discuss any three of the macro environmental factors with particular reference to how
they can help improve the business
Macro environment can be describe as the external surrounding of organisation which
will lead to have major impact on business practices. This includes different factors such as
political, economical, social, technological, environmental and legal factor. This type will have
significant impact on successfully and effective functioning of business. Different macro
environment factors in respect to Little Dessert Shop is mention below in detail -
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 Political factor – This factor refer as rules and policies that is set by government in order
to provide guidance and direction for successfully performance of business (Zeng and
et.al., 2020). Government has developed new policies for business in order to correctly
deal with COVID 19 issues. Little Dessert Shop needs to follow polices and regulations
that is developed by government in order to smoothly conduct business practices.
Through analysis of this factor respective company will be able to effectively conduct
business task and deal with other issues in more significant manner. Economical factor – This factor includes economic system, employment rates, interest
rates, taxation rates, laws and interest rates. Economical factors will lead to have major
and direct impact on business performance (Wang and et.al., 2020). It is essential that
respective company is considering economical factors in order to successfully carry out
task and activities. This factor will have direct impact in business functions as well as
developing better relation will customers. Due to COVID 19 crisis economical system
has been affected and it will lead to have direct impact on business performance.
 Social factor – Social factor can be describe as culture, values, preferences, attitude and
other aspect that will lead to have direct impact on overall performance of business. It is
important for Little Dessert Shop to consider social factor while providing its products
and services to customers. This will help in enhancing and improving business practices
along with this attaining desired goals. Little Dessert Shop will have more demand of
products and services in weekends. Respective company should provide high products
and services to customers which is according to the needs and want so of customers.
This will assist in developing strong relationships with customers and enhance its image.
CONCLUSION
From the above report it has been concluded that business includes different elements and
aspects which will lead to have direct impact on overall performance. Partnership will have
several advantages and disadvantages that will lead to have direct impact on business practices.
Porters 5 force model is significant framework which will assist company is achieving
competitive advantage edge over other rival companies. Apart from this, there are different
macro environment factor which will have direct influence over business and it will help in
improving business practices. It is crucial for company to consider political, social and
economical factors wile performing its business task.
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REFERENCES
Books and Journals
Gursansky, D., Kennedy, R. and Harvey, J., 2020. Case management: Policy, practice and
professional business. Routledge.
Nolden, C., Barnes, J. and Nicholls, J., 2020. Community energy business model evolution: A
review of solar photovoltaic developments in England. Renewable and Sustainable
Energy Reviews, 122, p.109722.
Haak-Saheem, W. and Festing, M., 2020. Human resource management–a national business
system perspective. The International Journal of Human Resource
Management, 31(14), pp.1863-1890.
Al-Fedaghi, S. and Makdessi, M., 2020, July. Modeling Business Process and Events.
In Computer Science On-line Conference (pp. 366-379). Springer, Cham.
Hay, R. and Eagle, L., 2020. Impact of integrated sustainability content into undergraduate
business education. International Journal of Sustainability in Higher Education.
Vidgen, R., Hindle, G. and Randolph, I., 2020. Exploring the ethical implications of business
analytics with a business ethics canvas. European Journal of Operational
Research, 281(3), pp.491-501.
Zeng, S. and et.al., 2020. Preliminary Efficacy and Feasibility of a Business Leadership Training
Program for Small Child Care Providers. Early Childhood Education Journal, pp.1-10.
Wang, Z., and et.al., 2020. An empirical study on business analytics affordances enhancing the
management of cloud computing data security. International Journal of Information
Management, 50, pp.387-394.
Crisostomi, E., and et.al., 2020. Analytics for the sharing economy: Mathematics, Engineering
and Business perspectives. Springer Nature.
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