Ice Cream Shop Business: Partnership, Porter's Five Forces, Factors

This report examines the business operations of an ice cream shop, specifically focusing on its partnership structure. It delves into the advantages and disadvantages of partnerships, highlighting how the shop leverages this model for expansion and resource sharing. The report then applies Porter's Five Forces framework to analyze the competitive landscape of the ice cream industry, assessing factors such as rivalry among sellers, bargaining power of buyers and suppliers, the threat of substitute products, and the threat of new entrants. This analysis provides insights into the shop's competitive advantages and potential vulnerabilities. Finally, the report explores the impact of macro-environmental factors – including social, legal, and economic considerations – on the shop's business, illustrating how these external forces influence consumer behavior, regulatory compliance, and financial performance. The report concludes by synthesizing these findings to offer a comprehensive understanding of the ice cream shop's strategic position and operational challenges within its market.

Individual Report

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Partnership as a type of business organisation........................................................................1
2, Porter 5 Forces framework to accomplish competitive advantages........................................2
3. Macro environmental factors to improve the business of the company..................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
Porter's 5 Forces. 2019. [Online]. Available Through:
<https://www.investopedia.com/terms/p/porter.asp>......................................................................5

INTRODUCTION
Business refers to an activity and action of devising one's living or making money by
manufacturing or purchasing and selling goods. It can be an activity of trading the products and
services to fulfil the needs and demands of the potential clients. A business of an organisation
can be run and operate in different ways like partnership, joint venture, merger, acquisition and
others. This report is based on a new business of Ice Cream Shop which is running partnership
(Bell, Bryman and Harley, 2018). This assignment will discuss about partnership as a type of
business and porters 5 force framework to accomplish competitive advantages by managing the
relationships with these forces. Further, will explain about the macro environmental factors
which are beneficial to improve the business of establish business.
MAIN BODY
1. Partnership as a type of business organisation
Partnership
It is an agreement between two or more parties to operate a particular business for
sharing profits and loss. These parties can be government, non – profits enterprises , business
or private individual. There are three types of partnership such as general partnership, limited
and limited liability limited partnership. In the general partnership, all parties have all equal
sharing financial and legal liability. Limited liability partnership is a common structure for
professional like lawyer and architects, which further distinction them between the equity and
salaried partners. Whereas limited partnership is a hybrid of general and limited liability.
Yoghurtology Frozen Yoghurt shop is a ice-cream shops that sells ice-cream to different sector
in the market. They work in partnership to expand its business operation in the ice-cream
industry. partnership helps them to reach out to larger number of audience in the market .they
basically are general type of partnership so that all partner can share profit and loss in the
business.
Advantages: Partners can bring various skills and knowledge to the business which helps them
to expand its activates in the market. It will also beneficial for Yoghurt Frozen Shop because it
help in reducing the financial burden form the owner because partner contributed their part of
money in the business (Muzellec, Ronteau and Lambkin, 2015). Partnership gives extra hands in
operating the different activities in the business. It required lesser time to prepare the paperwork
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about the partnership deeds. It provide human force though which activities are directed how to
perform the activates in the business so to complete the work on time and in efficient ways.
Disadvantages: In partnership, partner can not act as individual in making decision and decision
relating to operating activities of day to day. If partner make reckless decision then all the
partners will be effects by such decision (Scholes and et.al., 2014). In Yoghurt Frozen Shop,
partnership can be disagreement between the partner which will lead to delay in performing the
activities on time. Another disadvantages is that owner has to split the profit among the partners
for their share in the business. owner is not separate from its firms it means all the partner are
legally and financially are responsible for the business loss in the business. If in later stage
partner decides to dissolve their business then it can become difficult to distribute the profits and
assets, liabilities and expands. Similarly Yoghurtology Frozen yoghurt shop can faces the
problems in sharing the profits and loses due to differences among the partners, which will
effect the operation activities in the industry.
2, Porter 5 Forces framework to accomplish competitive advantages
Porter's Five Forces analysis
It is a model and analysis that help in finds out and analyse five competitive forces that
help in shaping each sector and assists monitor an industry's weaknesses and power. This
analysis basically utilised to find out the structure and framework of an industry to determine
corporate strategy. In given case study “Yoghutlogy Frozen Yoghurt Shop” is an Ice Cream
shop so this analysis can be used by the management of this business to get information about
the competitiveness in the specific industry.
Rivalry among sellers- The competition in the super- premium ice cream sector are large
and diverse. There are number of competitors in the market like Ben & Jerry's, Breyers, Bluebell,
Dairy Queen etc. which create competition for Frozen Yoghurt Shop. But the switching to rivals
brands are low because the company offer quality products which are manufactured by using
pure ingredients at affordable price or lower cost. This will help in maximising the sales of the
company and improving the profitability of the firm.
Bargaining power of buyers- The demands of buyers are high because the company have
large customer base due to its quality and reasonable process of the products (Shenkar, Luo and
Chi, 2014). The management of Yoghurt Frozen shop use better quality ingredients and raw
martial in producing the goods which help in fulfilling consumer's need of healthy material. So
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the threat of bargaining of byers power is low within the company and the negative impact of
competitors is also low. This help the company in retaining the customers and showing their
loyalty till long term period of time.
Bargaining power of suppliers- The suppliers to the ice cream sector consist dairy
farmer's, paper container producers and providers of diverse kinds of flavour and ingredients
(Swanson and Frederick, 2017). In Yoghurt Frozen Shop, the company purchase raw material
and required ingredients to manufacture products, purchase from a Local Cash & Carry with
effective pricing. So this force positively affect the company and consist low threat of
competition.
Substitute products- There are number of competitors in the market which prefecture and
produce diverse flavours of ice cream. En & Jerry's, Haagen-Daza, Breyers, Bluebell are some
organisation which manufacture different flavours of ice cream as per the needs of their potential
customers. So the treat of competition is for Yoghurt Frozen Shop due to similar products.
Threat of new entrants- The barriers and threat of new entreats in ice cream sector are
moderate cause of brand preferences and customer loyalty regarding the larger and more
established competitive organisation (Routledge.Ambler Witzel and Xi 2016). To set these kind
of businesses organisation required limited fund and capital so it is not highly affect the business
of the respective firm.
3. Macro environmental factors to improve the business of the company
Macro environment factors
The macro environment is a condition which are present in the economy rather than to
particular region. Their are external factors of the organisation present in the environment which
can effect the operation of business. This environment includes political ,economic, social -
cultural, technology, physical. Yoghurtology frozen yoghurt shop gets effected by these external
factors in performing their duties.
Social factor: It is the factor which consider the needs, wants, demands, taste and
preferences of the consumers. This factor believe that people are the part of the society and
grouped with the same type of the thinking and beliefs. The demand of the product and services
for every target audience has different social background (Bell, Bryman and Harley, 2018).
Yoyghurtology Frozen Yoghurt shop, develop different flavours of ice cream for types of society
individual in the market. So this factor positively affect the business of the company because the
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product which are manufactured by the respective company, are capable to satisfy consumer
needs cause of available in different flavours, quality products and reasonable prices.
Legal factor- This factor refers to those laws. Legislations and policies which are
develo0ped by the national authority of the country so that the business of the company can run
effectively and efficiently (Muzellec, Ronteau and Lambkin, 2015)). The business of
Yoghurtology Frozen Yoghurt shop effectively follow all the laws and regulations of the
government and the laws which are developed specially partnership and required to follow in
these kind of business. So this positively affect the company in term of elective and building and
efficacious image in the market and among competitive market.
Economic factor: Under economic factors, the forces is relate to the factors that affect
consumer spending and purchasing power. Yoghurtology Frozen Yoghurt shop follow and adopt
low pricing strategies so that the products are in the availability of the customer and economic
factor did not affect them negatively (Yunna and Yisheng, 2014). For example, a dilemma is
generating in the company regarding the cost of raw material that is the company is purchasing
material from local shop than the quality of the product is not much good but it is cost effective.
When the company will purchase raw material from local organic farm then the material; which
is purchased for the manufacturing are good quality but cost consuming. This negatively affect
the firm in economic term.
CONCLUSION
From the above information, it can be analysed that business is a process and activity of
selling purchasing the goods and services which are manufactured by the company accordant to
consumers needs and demands. Partnership business are crucial for a company because for this
kind of business individuals are not required more fund. Porters five force are effective to get
information about the level of competition in the market. Macro environmental factors help in
enveloping the business of the organisation.
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REFERENCES
Books & Journals
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university press.
Muzellec, L., Ronteau, S. and Lambkin, M., 2015. Two-sided Internet platforms: A business
model lifecycle perspective. Industrial Marketing Management. 45. pp.139-150.
Scholes, M. S and et.al., 2014. Taxes & business strategy. Upper Saddle River, NJ: Prentice
Hall.
Shenkar, O., Luo, Y. and Chi, T., 2014. International business. Routledge.Hunter, I., Saunders,
J. and Constance, S., 2016. HR business partners. Routledge.
Swanson, D. L. and Frederick, W. C., 2017. Are Business Schools Silent Partners in Corporate
Crime? 1. In Business, Capitalism and Corporate Citizenship (pp. 74-79).
Routledge.Ambler, T., Witzel, M. and Xi, C., 2016. Doing business in China. Routledge.
Yunna, W. and Yisheng, Y., 2014. The competition situation analysis of shale gas industry in
China: Applying Porter’s five forces and scenario model. Renewable and Sustainable
Energy Reviews. 40. pp.798-805.
Online
Porter's 5 Forces. 2019. [Online]. Available Through:
<https://www.investopedia.com/terms/p/porter.asp>.
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