Report on Yoghurtology Frozen Yoghurt Shop: Business Analysis

This report provides a comprehensive analysis of the Yoghurtology Frozen Yoghurt Shop, a partnership business specializing in frozen yogurt located in Birmingham. The report begins with an evaluation of the partnership structure, outlining the advantages and disadvantages of this business type, and the roles of the partners, Frank Jones and Peter Jackson. It then applies Porter's Five Forces framework to assess the competitive landscape, examining the threats of new entrants, the bargaining power of suppliers and buyers, the threats of substitution, and the rivalry among existing players within the frozen yogurt industry. Finally, the report discusses the macro-environmental factors influencing the business, including political, economic, and social considerations within the UK market. The analysis aims to provide insights into the shop's performance and market development opportunities, culminating in a conclusion that summarizes the key findings and recommendations for the business.

Introduction To
Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Evaluate a partnership as a type of business organisation within the context of Yoghurtology
Frozen Yoghurt shop..............................................................................................................1
Use of Porter's five force framework.....................................................................................2
Discuss macro environmental factors.....................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The partnership firm refers to the association of two or more individual's who carry on a
business organisation together in order to share profit and loss. As it is considered as a most ideal
form of organisation because it requires moderate amount of capital as well as diversified
managerial talent. The case of “YOGHURTOLOGY FROZEN YOGHURT SHOP” is chosen
which is a partnership firm that owned by the Frank Jones and Peter Jackson jointly eighteen
months ago. Now they want to diversify their product range along with the market expansion so
it requires to prepare a report which includes the evaluation of partnership firm, porters five force
model as well as macro environmental factors for their successful diversification.
MAIN BODY
Evaluate a partnership as a type of business organisation within the context of Yoghurtology
Frozen Yoghurt shop.
Partnership termed as a form of organisations in which two or more persons share their
ownerships, profit, loss as well as have liability to manage day to day working and make
effective decisions jointly. For this, a partnership deed is prepared which is to be required for
classifying the terms and conditions along with the all details of all partners in detail as it is
necessary for all partnership firm because it is essential consideration of legal formalities of any
corporations. It also said that partnership firm is established by legal agreement among all
partners and mutually understanding between all (Namada, 2018).
Within the context of “YOGHURTOLOGY FROZEN YOGHURT SHOP” there are two
partners in this business that named are Peter Jackson and Frank Jones. They mutually agreed on
the single terms and conditions and open a shop in busy Bullring shopping centre in Birmingham
that is an ice-cream parlour which mainly specialise in offering frozen yogurt. Both the partners
have strong knowledge and experience in hospitality sector as they earlier employed at hotels or
restaurants at a good position. Both decided to establish shop as jointly and each one contributed
£30,000 that was invested in securing the lease on shop for the time period of three years and
ensuring the requirement of working capital that required for the daily operations. As per their
partnership they gain many advantages or benefits which helps in strongly increasing their sales
as well as revenue.
Benefits of partnership firm with respect of YOGHURTOLOGY shop:

 For the shop, partnership firm is advantageous as it was easy to set up at a low cost.
 Partnership firm will have high capacity of borrowings.
 This kind of business do not have to pay taxes on their income because all partners files
all records at a personal level and return income tax personally (Lapierre, 2018).
Drawbacks of partnership firm:
 As all partners are liable to share profit and loss equally even if losses are incurred by
others so it can place more burden on personal assets and funds.
 Sometimes, it creates conflicts among partners due to the emotional issues as well as
unequal efforts and varied thoughts within a business.
Use of Porter's five force framework.
This model was defined by the Michael E. Porter that is based on the mainly five forces
of industry in order to determine the competition intensity within an industry and their level of
profitability. This will help in identifying the structure of industry along with the competition
level that assist “YOGHURTOLOGY FROZEN YOGHURT SHOP” to examine the competitive
position within an industry. The five forces of this model are discussed as follows:
Threat of new entrants: Within the context of YOGHURTOLOGY shop the threat of
new entrance is high because it requires less capital to invest in a business (SHTAL, 2018). Also,
there is no barrier to enter into that market so many firms easily starts their own businesses in
frozen yoghurt. There are some way that can be used by the Frank and Peter in order to tackle the
new entrants threats such as follows:
 By brining innovative goods and services by using fresh and organic ingredients helps in
minimising the new entrants threat. The company can spend huge money on the research and development activities as well
as enhance the capacity level also.
Bargaining power of supplier: It is associated with the number of suppliers in the market
who supply milk for making frozen yoghurt as well as materials (Julita, 2019). So the bargaining
power of suppliers is low because of the many suppliers and all industries are tied to the
suppliers closely. Within the context of Yougurtology shop, the company can tackle the
bargaining power of suppliers in many ways such are discussed as follows:
 The company can buy raw material from suppliers like local organic farms at a low cost.

 Yougurtology can develop their supply chain efficiently along with the more number of
suppliers. By experimenting with more products designs such as they focused on premium products
which is organic and healthy.
Threats of substitution: It is related to the availability of substitutes within the industry
or marketplace which influence the profitability of company by attracting customers. It will
occurs when the needs or wants of the customers fulfilled by similar products (Clarke, 2019).
The threat of substitution is immense in frozen yoghurt industry and the company
YOGHURTOLOGY can tackle substitution threats by following ways such as:
 As they can emphasise on the services instead of being product oriented by maintaining
good infrastructure and facilitates many services like Wi-Fi at their shops.
 By raising the switching cost for their customers. Focused on the customers requirements instead of what they buying.
Bargaining power of buyers: These are the king of the market and basically they can
easily attracted towards the low prices. But in UK, people are healthy conscious so they moves
towards the healthy product even ready to pay high prices for it. So the buyers bargaining power
is low in that industry and in some cases the company can tackle this factor in following manner
like:
 Increasing the customer base which helps in reducing the buyers bargaining powers. Continuously focused on creating or bringing new products and services.
Rivalry among existing players: When the rivalry among existing competitors is
immense then it will decline the prices and entire profitability of a business organisation
(Christodoulou, 2019). As there are less numbers of competition in the market where the
company YOGHURTOLOGY open their shop or can say that there are the only one seller of
frozen yoghurt in that area so the competition is less. In some adverse situation a company can
tackle rivalry by following manners such as:
 Focus on product differentiations.
 Conduct appropriate market research.
 Use promotional tools and advertising methods for promoting a business.

Discuss macro environmental factors.
There are several external factor which influence a business organisation at a great extent
as it includes political, economical, social and so on (Bruijl, 2018). Within the context of
YOGHURTOLOGY SHOP the study of few environmental factors in order to increase their
performance and market that are as follows: Political factors: The country United Kingdom operates under the influences of
parliamentary system as it is one of the most successful country regarding the
implications of rules and regulations. Whereas, hidden corruptions as well as Brexit deal
considered as a negative aspects for the company (Scott, 2019). So the Yougurtology can
easily diversify their businesses because of the governmental stability. Economical factors: As the country UK has strong economic position as compared to
others and has high rate of GDP, large population, diversified economy as well. But the
negative factors are the slow rate of economic recession recovery and the huge amount of
money spending on public services. This will gives an opportunity to Yougurtology in
order to diversify their market easily.
 Social factors: It is associated with the people behaviour, culture, values and so on
factors that influence the purchasing power of each customers in a different way. As the
population of UK is highly attracted towards the health conscious products which
facilitate opportunity to Yougurtology to grow at local level and also the people have
high level of living standard. Whereas, increasing the dependency ration may effect the
sales and revenue of company or shop (Peachey, 2018).
CONCLUSION
It has been concluded from the above report of case study as partnership form of business
is more suitable for the companies as it helps in lowering the cost as well as required less capital
to establish. Also, to know about the competitive position in the marketplace a company can use
porters five force in order to gain a competitive edge. Lastly, analyse the macro environmental
factors in order to know the product as well as market development area for a business which are
either in favour or adverse.

REFERENCES
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