Little Dessert Shop: Partnership and Environmental Analysis

This report provides an in-depth analysis of the Little Dessert Shop (LDS), focusing on its partnership structure, macro-environmental factors, and strategic positioning within the UK hospitality sector. The report begins by examining the partnership agreement between the owners, Mary and Sue, highlighting the benefits and drawbacks of their collaboration, including shared liabilities and decision-making processes. It then applies Porter's Five Forces model to assess the competitive dynamics of the industry and evaluates the impact of macro-environmental factors, such as political, economic, social, technological, legal, and environmental (PESTLE) aspects, on LDS's operations. The analysis emphasizes how LDS can leverage these insights to build a competitive advantage, particularly by focusing on product quality, health-conscious offerings, and effective pricing strategies to cater to customer preferences and navigate market challenges. The report concludes by summarizing key findings and offering strategic recommendations for LDS's continued success in the competitive dessert market.

Introduction
Partnership assessment with regards to Little Dessert
Shop
Porter five force analysis
Macro-environmental analysis
Conclusion
References

 In the recent times, UK hospitality sector is recognized as an important part of
economy as it contributes in GDP to the large extent. However, due to stiff
competition, companies operating in hospitality sector needs to make focus on
undertaking innovative business practices.
 This PPT is based on the case situation of Little Desert Shop which offers wide
range of food products or services. Both the owners namely Mary & Sue has
experience in hospitality sector who focuses on providing customers with wide
range of bakery and desert products.
 This presentation will develop understanding about macro environmental concepts
such as PESTLE and Porter. It will highlight the extent to which partnership
agreement will prove to be beneficial for Mary and Sue.
 Further, It also entails how company can attain competitive position by focusing
on macro environmental aspects.

Overview of partnership
 Partnership may be defined as a kind of business where two and more people binds
through the means of an agreement. It refers to the formal arrangements where
business partners agree to share responsibilities, profit and losses that associated
with business operations.
 According to case scenario both Mary and Sue, Co-owners, have working
experience of hospitality sector. Now, with the motive to attain success both the
entities namely Mary and Sue decided to start new venture as LTD in the Bullring
shopping centre in Birmingham.
 For avoiding high risk level both entered into a partnership agreement by
contributing £30000 each. On the basis of this, partners will share profit, loss and
other risks as per the predetermined ratio.

Advantage of partnership

Disadvantage of partnership

The above depicted evaluation shows that benefits offered by partnership
agreement are higher than drawbacks.
 Moreover, through doing partnership, entities of LDS can bear expenses,
losses and other business liabilities in a shared manner.
 Further, through mutual consultation and by sharing experience as well as
knowledge Mary & Sue can take better business decisions.
 However, partners share unlimited liability pertaining to debt and other
risks arise due to disagreements take place in decision making. Along with
this, by including specific terms and conditions in partnership agreements
partners can avoid situations pertaining to lack of coordination.

Overview of porter five forces
 It is one of the most effectual macro environmental analysis
tool which helps in evaluating competitiveness takes place
within business environment.
 Through this, entities of LDS can assess and evaluate forces
that affect company’s profitability. Porter five force analysis
is highly significant which helps company in assessing
strength and weakness of hospitality industry.
 By this, company can develop competent strategic and
policy framework that contributes in organizational success.

 Macro-environmental analysis offers pathway to LDS that can be used for
developing sound corporate framework. Hence, LDS can build and sustain
competitive position over rivals by developing and introducing healthier
food choices for customers. T
 his in turn also helps in building satisfaction as well as loyalty among the
customers and thereby facilitates organization’s growth. Along with this,
by finding low cost suppliers Mary and Sue can continue with penetration
pricing strategy.
 Moreover, due to less purchasing power, customers are not ready to pay
high prices for the bakery related products and desserts. In addition to this,
high focus is placed by customers on hygiene, health and safety after
COVID.
 Thus, LDS can build distinct image in the mind of customers by offering
high quality and healthy food to the customers.

 Macro environmental factors mainly include political, economic, social,
technological, legal and environmental aspects. It clearly exhibits factors
that closely impacts operations and functions of business unit.
 In order to take competent business decision, entities such as Mary and
Sue must have knowledge about macro factors. By using this tool, LDS
can develop suitable framework for getting desired level of outcome or
success.