the eighteen months ago, A frozen yogurt shop named as “yoghurt ology” is established by the frank Jones alo0ng with their business partner peter Jackson. The shop is situated in the Birmingham, bullring shopping centre. This shop is famous for the frozen yoghurt as this is the ice cream parlour.
Both of the partners have the experience of hospitality as the frank was a chef in the large catering restaurant whereas peter was the manager of the hotel. Their experiences help them to start up a new shop from their savings as a view to start up a new businesses venture.
The frank and peter contributed the amount £30,000 by each for acquiring the shop on lease for 3 years. And few of their amount is used as working capital top pay the suppliers and to grab the stock. This helps to grow their business and afterwards both of them took a loan from bank of £20,000 with a regard to enhance the businesses and also to develop the product lines.
The staff of the shop considers the full time two members and two members of part time. The shop remains busy at the weekends. The location of shop is at Birmingham, bullring centre. It remains busy at is the popular shopping centre and in this shopping centre no one sends the frozen yoghurt except the shop of frozen yoghurt that is “yoghurtology”.
The customers like the frozen yoghurt during weekends and the weekdays also as different kinds of customer perceives different preferences. This shop is famous among the young children's, teenagers and the young adults also. Both the partners observed that their business is growing due to their friendly services, healthy products, good quality and the low prices. Then they thought to supply the good quality of product by purchasing the organic product and it also leads to rise in the cost of the products. The partners were concerned about the adoption of the healthy trend but there was the less requirement of the product in the winter season. Thus, they decided to expand their business and to supply the different product which give choices to the customers.
Both of the partners are in confusion regarding their supplying product yoghurt. They think to buy the product in bulk and supply it at low rice’s which supports them to keep the prices low. Whereas on other side they think to produce the organic products but worried about the increase in prices.
In order to target the different market segment, they are thinki8ng to supply the various products to the customers and they also take the benefit of opportunities which can be arises by the understanding the macro environment factors.
You are asked by Frank Jones and his business partner, Peter Jackson to advise them on the following issues. You are required to give the advice to both the partners, frank Jones and peter Jackson, on the following issues:
- Evaluate the type of business organisation in context with frank and Peter's yoghurt ology shop.
- Demonstrate the porters five forces frameworks in order to examine the yoghurt ology business and also suggest how both the partners can achieve the competitive advantages in context with this force.
- Explain the three-macro environmental factor in context with enhancing the businesses of frozen yoghurt.