Mobile Business Case Study: Environment, Legal Structure and Analysis

This case study explores the global business environment through the lens of two friends launching a mobile business. It delves into the optimal legal structure for their venture, assessing various options like sole proprietorship, partnership, and company structures, ultimately favoring a partnership. The study analyzes the market structure and competitiveness using Porter's Five Forces, highlighting intense industry competition, high potential for new entrants, strong supplier and customer power, and the threat of substitute products. Furthermore, it predicts the rise of e-commerce and the decline of the hospitality sector in the next 12 months, attributing the shift to the ongoing pandemic and changing consumer preferences. Desklib provides access to this and other solved assignments for students.

GLOBAL BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
The report has discussed about the case study in which two friends has decided to open their
mobile business. Along with this, study will depict about the legal structure that will help their
organization to grow. Lastly, it will analyse the market structure and measure the
competitiveness. In addition to this, it will also analyse about the type of business that will
gain profit and decline in the coming next 12 months.
MAIN BODY
Case A:
Business has been define as selling and buying of goods and services in the market in
order to run the company as well as to earn profit. Along with this, business sector has been
affected by internal and factor of the enviourenment i.e. it is describe as dynamic in nature.
COVID has been major threat for the company and because of that organization has faced
huge loss and it has to make use of various innovative technology to run their business.
However, it has also damage the overall economy of the country and because of that many
organizations was not able to earn revenue. Moreover, in the time of pandemic digital
marketing was fruitful for all the business it was basically a boon for the companies. Along
with this, these business will be very successful in the coming 12 months as it has changed the
way of running company and has given new standards to business sector. Furthermore,
digital marketing helps the organization to reach their customer as well as build
awareness more as compared to traditional method (Saura, 2021). Due to pandemic customer
taste and demands has been changed and due to digital marketing companies can easily
identify their needs. Along with this, digital marketing increase the brand image that
contributes in increasing the sales of the firm and allow it to cover large area of market.
Moreover, it has various tool and techniques that contributes in overall growth of the firm such
SMM , affiliated marketing and SEO.
However, these tools allows organization to share their content and details
regarding product and services to their customer on one click. Along with this, the business
feature of SMM will help the company to sell their products to their audience and it is very
cost effective in nature. In addition to this, it also help the company in analysing about the
market condition regarding the factor that can affect the growth of the business. Thus, it is
very beneficial for the business as it give immense detail about the strategy use by the

competitors and reach of the company growth in the competitive market. Along with this,
digital marketing was the only factor for increasing the economic growth of the country.
Another reason for the growth of digital marketing is it helps in attracting large amount of
customer at one click that contribute in increasing the overall sales of the firm positively.
Along with this, it provide with various online platform to connect with the stakeholders and
customer that contributes in identifying their needs more effectively. However, it is the future
for the business because it is fast growing way of marketing and most of the big and small
companies are trying to invest in this type of business. The main reason for the growth of this
way of marketing because the return on investment is high as compare to the traditional way
of business (Saura, Ribeiro-Soriano and Palacios-Marqués, 2021).
On the other hand, the business that will be declining in coming year is hospitality
firm. This type of business provide product and service related to hospitality. Along with this,
it will be declining due to pandemic and virus customer are afraid of trying the hospitality
sector. In addition to this, there has been immense shift in the taste and preference of the
customer as it is spending more in health care services and on the basic needs. In addition to
this, due to pandemic the employment rate has been increased and consumer are buying
cheap price and supporting small business more (Huang and et.al.,2020). That is a major
threat for the hospitality sector as it has to spend more in the infrastructure and add innovative
services such as robotic staff and sanitizing methods in order to attract large customer.
However, it will be more expensive method for hospitality industry. Thus , it is to be
suggested to make use of digital marketing for running the business as it is very cost
effective and helps in increasing the brand awareness.
2 (B)
The launching of a new business model will comprise with the various legal aspect that
require to consider in order to evaluate the overall performance of venture. Legal structure and
competitiveness of the sector can be presented in the following points.
Legal structure
The legal structure project the fact that the proposed business idea is associated with
which particular structure. This comprise with the fact that the organisation will be able to
execute which particular business structure. There are various type of business structure
associated with the business environment.

Sole proprietor
This is among the most prominent type of legal structure that can be used by the business.
This is about the sole business house govern by the venture. Under this legal structure individual
will solely conduct all the operations and deliver the business operations. This is completely
owned and controlled by one person (Fuchshuber, 2021). All the risk also need to bear by that
one particular person involve in delivering business operations. Sole proprietor is one of the
prominent business idea that can execute by the venture in order to perform the business
operations.
Pros:
 This is completely owned by one person.
 Limited ownership claim.
 Limited legal guidelines.
Cons:
 All risk goes for one single individual.
Partnership
Partnership is a type of business in which two or more than two individual come together
to execute the business operations. This is not mandatory legal requirement to register the
partnership business. All the profits and risk is segregated between all partners involve in the
business.
Pros:
 Profits and risk are segregated by all partners.
 Predetermined profit share.
 Limited legal requirements.
Cons:
 All risk goes directly to the owner of the partnership.
Company
Company is a legal form of delivering the business in which an organisation is registered
as a company. This type of business involve mandatory registration by the law which allow the
stakeholders to effectively mange all operations (Mexmonov, 2020). Company business further
segregated by thee law into limited company and private limited company. The company own
the claim of the name and other such aspects.

Pros:
 Ownership claim is applicable.
 Legal basis of conducting the business.
 More transparent system.
Cons:
 Mandatory audit.
Association
Association is a process in which in the name of other established brand association is
created. This is a very suitable mode of delivering business for the new investors.
Pros:
 This do not require well established brand value of the new investor.
Cons:
 Not suitable for long term business model.
Co-operative
Co-operative is another mode of conducting business operations. This is a type of
business which require a cooperation between two investors and firms in order to execute the
business.
Pros:
 Easy to manage and monitor.
Cons:
 Ownership related issues are there.
The partnership will be a suitable mode of delivering the business. This will be require a
limited capital investment to start the business idea.
Porter five forces
Porter five forces model is a competitive model that allow the organisation to identify the
competitiveness in the respective target market.
Competition in industry (high): is massive in the sector. As the overall competition is huge
which made this force very high. The demand in the retail industry is massive which further

attract to investors and stakeholders to influence the level of competition in the sector. Due to the
high scale of competition this force is massive.
Potential of new entrant (high): is very high. As the demand and requirement of the product in
industry allow the new entrant to invest in the sector. As the demand is high which make this
force to be very high in nature.
Power of suppliers ( high): suppliers play a comprehensive role in case of new business. The
involvement of supplier made this force very high.
Power of customers (high): customers are involve in each and every operation in the
comprehensive manner (Bruijl, 2018). Every strategy is framed in the business based on the
potential customer base. The role of customer made this force high.
Threat of substitute product (high): substitute product is the one that can be used in place of
the existing product in the market. As the innovation make this force high.
CONCLUSION
In the next 12 months e-commerce sector emerged and hospitality sector declined. The
partnership is a suitable type of legal structure that can be used to initiate the business. All
different forces are high for the organisation.

REFERENCES
Books and journals
Fuchshuber, I., 2021. Drivers of Organizational Agility in German Book Publishing
Houses. Publishing Research Quarterly. pp.1-14.
Huang, A. and et.al.,2020. Understanding the impact of COVID-19 intervention policies on the
hospitality labor market. International Journal of Hospitality Management. 91.
p.102660.
Mexmonov, S., 2020. LEGAL BASIS OF THE MECHANISM OF ACTIVITY OF THE
UZBEK STOCK EXCHANGE. Архив научных исследований, 33(1).
Saura, J. R., 2021. Using data sciences in digital marketing: Framework, methods, and
performance metrics. Journal of Innovation & Knowledge. 6(2). pp.92-102.
Saura, J. R., Ribeiro-Soriano, D. and Palacios-Marqués, D., 2021. Setting B2B digital marketing
in artificial intelligence-based CRMs: A review and directions for future
research. Industrial Marketing Management. 98. pp.161-178.
Online
A, B., 2018. [Online]. Available through <>
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