Analysis of Little Dessert Shop Business: Partnership & Macro Factors

This report provides a comprehensive analysis of the business operations of 'Little Dessert Shop,' a UK-based hospitality firm. The report evaluates the suitability of a partnership business structure for the shop, considering its strengths, weaknesses, opportunities, and threats (SWOT analysis). It applies Porter's Five Forces framework to assess the competitive landscape, offering strategies for achieving a competitive advantage. Furthermore, the report discusses the impact of three key macro-environmental factors—customers, suppliers, and competitors—on the business, highlighting how understanding these factors can improve the business's performance and profitability. The report concludes by summarizing the key findings and their implications for Little Dessert Shop's strategic decision-making.

Introduction to
Business

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
Evaluate a partnership as a type of business organisation with reference to Mary and Sue’s
‘Little Desert Shop'..........................................................................................................................3
Apply Porters 5 Forces framework to analyse ‘Little Dessert Shop’ business and advise on how
competitive advantage can be achieved ..........................................................................................4
Discuss any three of the macro environmental factors with particular reference to how they can
help improve the business................................................................................................................5
CONCLUSION....................................................................................................................................6
REFERENCES.....................................................................................................................................7
Books & Journal:.............................................................................................................................7

INTRODUCTION
Business environment is dynamic in nature which is related to number of factors which can
impact on business organisation and its profitability (Ariza-Montes, 2017). It is necessary for
business organisation to perform function and achieve better function for managing operations and
performing in success full manner. This is help full for organisation to understand business function
and manage there function in appropriate way. According to case study Little Dessert Shop is
chosen organisation in this report. It is small hospitality based firm headquartered in U.K. It is
hospitality sector & carry out its functions as well mas operations at broader level. This essay
comprises of type of Porter Five Force, business organisation, environmental factors and
recommendations.
MAIN BODY
Evaluate a partnership as a type of business organisation with reference to Mary and Sue’s ‘Little
Desert Shop'
To survive in this corporate world it is important to select right form of business
organisation to run the business efficiently and to take right management decisions. After studying
the case it can be said that with proper research it is easy to choose right form of business
organisation. After analysing the case partnership can be taken by Little Desert Shop as their form
of business (Barinova, 2017). As partnership is a formal arrangement under which partners operate
the business and share profit and loss in equal proportion herein the risk is divided equally which
helps to operate better. In relation to Little Desert Shop, partnership will be most appropriate form
as partnership provides more ideas and innovations with moral support and helps in effective
business decision-making. Through partnership firm, it is easier to run the business in the market.
SWOT analysis will explain it more as why partnership is more beneficial for Mary and Sue’s Little
Desert Shop. Below are the strengths, weakness, opportunities and threats of partnership as form of
business:
SWOT Analysis
Strengths
 The main strength of partnership form
of business in this case is Little Desert
Shop will be able to make more profit.
 Business risk decreases with
partnership as both the partners share
Weaknesses
Freedom of taking decision independently
don't lie in the hands of one party, as the
decisions are taken mutually with consent of
other partner.

the risk, and also share profit/loss
proportionately (Borodako, 2018).
Opportunity
 Little Dessert Shop has the opportunity
of taking partnership as this will pool
their capital and will also help in tax
benefits
Threat
 The main threat under partnership is
that due to some dispute or change in
mind of one partner the partnership
agreement comes to an end and can
terminate the contact.
It is important for Mary and Sue’s Little Desert Shop to choose partnership of their business as it
will help them to expand their business and to work in international market.
Apply Porters 5 Forces framework to analyse ‘Little Dessert Shop’ business and advise on how
competitive advantage can be achieved
Porter's Five force model is a powerful tool designed for business operations to get
competitive advantage over its rivals. It is essential for a company to understand its competitors
strategy so that they can make their own informed decision (Doligalski, 2018). This strategy depicts
the potential and growth level of the competitors and analyse the impact of these five forces on the
working environment of industry. In this era of unpredictable environment, a company must design
their strategies in accordance of the growth prospects of their company. Porters five forces
examines the important facts of the competitors and uses it in the form of tactics to gain profitability
and raise their graph of productivity. This includes various types of forces which are bargaining
power of suppliers which reflects the control of supplier over changing the profitability of the
industry. If the suppliers are less in number then they can influence the prices of goods provided by
them in their own favour ignoring the welfare of the industry. Then next is bargaining power of
buyer explains the pressure a buyer can put over the industry for getting better quality goods but at
lower prices. Buyer always try to push the seller into decreasing the prices as they know their worth
for the company, but there power is affected when the competitors provide differentiated products
and buyer try to work independently (Elsharnouby, 2020). Further is the threat of new entrants
which gives the knowledge about the strength and weaknesses of their rivals. It is necessary because
new entrants attracts the customers with their own easy going strategies, but entering the industry
and retaining in it is a different thing. A company must follow both long term and short term plans
for it.

Another force is threat of substitutes, as it is a major one because customers always ask for new
products. So, they easily adapt the replacement of both product and company but they never
compromise with its quality and their own demanding price. The last one is industry rivalry which
explains the level of current competition in the existing fields of the industry. This majorly affects
the company as they have to increase their chains of network in different field so that their overall
effect profits of the company will gets decreased (Makori, 2019).
Competitive advantage can be achieved through leveraging the technology and skills of the
employees. It is the responsibility of manager to coordinate the employees towards the attainment
of objectives of company. Another way of getting this is through proper planning and management
of tasks and responsibilities towards the focused environment factors.
This is last factor under this model which is elated to existing rivalry of organisation in the industry
where it is trading. This is impactful functions as there are number of function which has to be
analysed by organisation to achieve its business objectives. Under this function there are number of
factors which has to be promoted in order to trace firms from its competitors. If there is large
number of competitive rivalry in market that organisation has to changes in its decision according
to this. There are many competitors within same area such as Creams Cafe, Kaspas Desserts &
Sweets Escape etc (Pei, 2020).
These are some resource which can be use by organisation in order to gain competitive
advantage in market where organisation is trading this is useful for firm to achieve its objectives by
analysis comparison of its various competitors by using appropriate factor. This will manage
success in business factors ad will leas to higher profitability and productivity. Along with this ,
using this will also cover functions which are needed by firm to achieve its business objectives.
Discuss any three of the macro environmental factors with particular reference to how they can help
improve the business
There are two important factors of business environment i.e. internal and external factors,
which effects the companies structure and functions. These factors may be effect the companies in
a positive or negative way. Internal factor can be control by companies but external factors are not
in hand of organisation, they are on beyond control so they can not be controlled (Remeikienė,
2019). So it is necessary to understand that what is external factor and how it effects the business.
External factor is the macro environmental factor which have no boundaries to attack the
organisation's functions. Macro-environmental factors mainly includes dynamic behaviour of
economic conditions, customers behaviour and suppliers power. If the company wants to survive in
the market then they should be aware about macro environmental factors to cope up with unknown
challenges. One of the important external factor is customer who is the king of the market. Every

organisation wants to satisfy their customers wants and desires. Because the companies growth and
success depends on the number of customers who are the end user of their goods and services. To
satisfy the consumers demands company should be know about the taste and preferences of the
customers. One firm is there in the market that tries their best to satisfy their customers i.e. Little
Dessert Shop is a customer oriented firm that focuses on deliver the best quality products and
services to their end users. It helps to improve the business productivity and profitability (Syrbu,
2019). Another one is supplier who is the only mean of delivering goods and services that satisfies
their customers wants and desires. They are the essential element because they are main delivery
man who delivers goods and services within time. Timing of delivery is very important factor
because if the customers needs are not satisfied on time then they can be switch to other companies
product. It reduces sales as well as their profits so that's why it is necessary for every company to
make good relations with the suppliers. The last but not least another important factor is
competitors. Day to day increasing in the number of competitors gives a cut throat competition to
the companies. Raising in number of competitors gives the threat of substitute products. So
companies should make proper strategies to handling dynamic situation of business environment
(Zvyagin, 2017).s
CONCLUSION
It can be concluded from above mentioned information that there are number of function
which can be use to achieve business objectives and manage business function in appropriate way.
All this will support good function and will leads to higher productivity. This can also concluded
that by identification of strategies an weakness of organisation there are number opportunities
which can be use to minimise threats. Along with this it can also concluded that there are number of
function which are related to competitive advantages which can be covered to achieve business
objectives.

REFERENCES
Books & Journal
Ariza-Montes, 2017. Employee responsibility and basic human values in the hospitality
sector.International Journal of Hospitality Management,62, pp.78-87.
Barinova, 2017. Influence of macro-environmental climatic factors on distribution and productivity
of freshwater algae.Int J Environ Sci Nat Res,4(1), pp.1-5.
Borodako, 2018. Events KIBS on the business services market–a netnography analysis.
Doligalski, 2018. Internet business models in the consumer market–a typological
approach.Marketing i Rynek,12.
Elsharnouby, 2020. Change or perish: examining the role of human capital and dynamic marketing
capabilities in the hospitality sector.Tourism Management,82, p.104184.
Makori, 2019.Response Strategies And Sustainability Of Hebrew Immigrant Aid Society In Kenya
To Changes Of The Macro-Environmental Factors(Doctoral dissertation, UoN).
Pei, 2020. Geographic variations and potential macro-environmental exposure of hypertension:
from the China hypertension survey.Journal of hypertension,38(5), pp.829-838.
Remeikienė, 2019. Evaluation of e-business micro and macro determinants by multiple indicators
multiple causes model.Inžinerinė ekonomika, pp.591-600.
Syrbu, 2019. Cognitive Modeling of the Mechanism of Partnership of Business Entities with Public
Authorities.The 21st Century from the Positions of Modern Science: Intellectual, Digital
and Innovative Aspects,91, p.104.
Zvyagin, 2017, November. Innovative activity as a basis for successful partnership of business and
education spheres. In 2017 IEEE VI Forum Strategic Partnership of Universities and
Enterprises of Hi-Tech Branches (Science. Education. Innovations)(SPUE) (pp. 114-117).
IEEE.