West Demerara Secondary School

Year of Examination: 2017

Subject: Principle of Business

Proficiency: General

Candidate Number: 090056

Candidate Name: Nirmala Somnath

Title of Project: Establishing a Business: Production

Name of Teacher: Miss Taundria Thomas

SBA Score:
 West Demerara Secondary School

Year of Examination: 2017

Subject: Principle of Business

Proficiency: General

Candidate Number: 090056

Candidate Name: Nirmala Somnath

Title of Project: Establishing a Business: Production

Name of Teacher: Miss Taundria Thomas

SBA Score:
 Acknowledgement

The researcher would love to express her gratitude to those who assist her to
completed this School Based Assessment (S.B.A.). She would first love to thank
God for guiding her to completed this School Based Assessment (S.B.A.). She
would also love to acknowledge her parents for financial support, reassurance and
guidance. She would also like to show appreciativeness to her teacher Miss
Taundria Thomas for supervision and encouragement.
 Table of Contents

Pages
Introduction 1
Description of Business 2
Justification of Business 3
Selection of Appropriate Labour 4
Sources of Fixed and Working Capital 5
Role of the Entrepreneur 6
Type of Production 7
Level of Production 8
Quality Control Measures 9
Use of Technology 10
Linkages 11
Potential for Growth 12
Government Regulation 13
Ethical Issue 14
Bibliography 15
Appendix 16-18
 Introduction
This School Based Assessment (S.B.A) is based on the researcher’s plans and
objectives to establish a business. It focuses mainly on the production aspects on a
business. It includes a description of the business, justifications for the intended
location and selection of appropriate labor need for the business to operate. Also,
sources of fixed and working capital was also mention, followed by roles the
entrepreneur will perform. Additionally, type and level of production were
declared as well as quality control measures that would be used to enhance the
business. Furthermore, usage of technology to increase a business's efficiency was
stated along with the type of linkage to be derived from the business. Moreover,
the business's potential for growth was detailed; internally and externally.
Government regulations that will have an impact on the business were said with an
ethical issue the business will be engaging in.

1
 Description of Business

Sweet Indulgence will be operating as a sole proprietorship. The business

will offer delectable cakes for any occasions to satisfy customer desirable needs of
a spectacular desert.
The business will include direct contact as customers could visit the business
location to order cakes of their choice. Customers would also be able contact the
business owner through e-commerce where a website will be provided for
customers to make order or by making a phone call to the business owner to order.
The objectives of the business are:
 To ensure high quality production to satisfy customers wants
 To provide delicious cakes in a clean and safe environment without any
contamination
 To make a profit
Mission Statement:
“We promise to offer delicious and appetizing cakes for you.”

2
 Justification of Location
The business will be located at 17 Good Hope, Canal # 1, West Bank Demerara.

Reasons why this location is suitable:

 Easy access to raw materials-
It is economical for a business to be located closer to its raw materials to
reduce transportation cost. This location will be ideal as it will be located
close to its source of raw materials.

 Easy to locate-
The business will be easy to locate because it will be on a popular street so
that customers wouldn’t encounter any problem to find the business.

 Availability of basic infrastructure-

It is advisable to choose a location where there will be proper infrastructure,
such as, electricity. This location will be suitable because all basic
infrastructure will be available.

3
 Selection of Appropriate Labour
The business will need semi-skilled and skilled workers. The business will have
four employees.

Position Types of Labour No. of Employees Functions

Baker Skilled 1 To prepare cakes to suite customers.
Driver Skilled 1 To deliver cakes to customers and uplift
supplies.
Janitor Semi-Skilled 1 To ensure the business is hygienic at all time.
Sales Clerk Semi-Skilled 1 To assist customers whenever they visit the
business location. They would also help in
tracking the business website and responding
to telephone call. He/ She will also cash
cakes purchased by customers.

ENTREPRENEUR

Baker Driver Janitor Sale Clerk

THE LINE ORGANIZATIONL STRUCTURE OF ‘SWEET INDULGENCE’

The business will need skilled and semi-skilled workers. This business intends to
make a profit. Skilled workers will be hired to perform their skills that they are
specialized in so that they would utilized raw materials to prevent wastage so that
more money will be save. The business owner will hire semi-skilled workers so
that less money will be spent to pay them and they will perform the same as skilled
workers while improving their skills and gain work experience.

4
Sources of Fixed and Working Capital

Fixed Capital
Fixed Capital refer to assets that will be kept for a long time and will be involve in
the production process.
Sources:
 Entrepreneur own savings
 Inheritance of Land
Examples:
 Building (location of business)
 Equipment, such as, appliances, utensils, etc.

Working Capital
Working Capital refer to stock of materials, goods and cash needed for the day-to-
day running of the business.
Sources:
 Loan from Guyana Bank for Trade and Industries, which will be an
amount of one million dollars
 Trade Credit

Examples:
 Stock, e.g. raw materials, finish goods, etc.
 Cash

5
 Role of the Entrepreneur

Entrepreneur refers to a person who organize and coordinate the other

factors of production which are land, labor and capital. They are the owners of
businesses who takes the risk and makes decisions, to enable production to be
carried out in anticipation of demand.
The role of the entrepreneur will be:
 Providing finance so that production can begin and continue.
 Ensuring the business make profits for expansion and will suffer the loses
that may arise.
 Controlling the operation of the business, such as, planning, directing, etc.

6
 Type of Production

The researcher’s business will be engaging in Secondary Production as it

refers to the utilization of raw materials so that it can be manufacture into finished
products.
The business will be using raw materials, such as, flour, eggs, etc. to make
that cake batter so that it can be baked into delectable cakes to suit consumer’s
needs.

7
 Level of Production

The researcher’s business will be engaging in Domestic Level of Production

as if refers to the usage of locally made goods.
The business will use locally produced raw materials, such as, flour, eggs,
etc. to provide delectable cakes to suit consumer’s satisfaction.

8
 Quality Control Measures

For the business to be more productive, quality control measures will be used to
enhance the business. Two quality control measures the researcher will be using
are:

1. The entrepreneur would check the finished product to ensure that each cake
belonging to a batch is well and not raw or burned.

2. To have specialists visit the business once a week to check the machinery
used and the environment these products will be manufactured in. The
machine will check the machine to ensure they are properly functioning to
reduce chances of fire that can be caused by exposed wires. The health
specialist will check the environment these products will be manufactured in
to ensure it will be clean to prevent fungus so that the environment will be
conducive for production.

9
 Use of Technology
Using technology helps to increase a business’s efficiency. Two types of
technology that will be used are email and cake mixers.

Email
An email address will be used for customers who intend to order but cannot
contact the business through any other means such as visiting the business location
or telephone number. Emails will be used to order online so that consumer save
time and the business will get the order.

Cake Mixers
As the business progresses, the entrepreneur will be able to purchase cake mixers.
By doing so, the business can prepare multiple batches of cakes faster instead of
taking a longer time to manually do so.

10
 Linkages

This type of linkage that will be derived from the business will be a Backward
Linkage.
The entrepreneur will benefit from this type of linkage because the raw materials
will be produced locally and the business will be less dependent on imported
goods. Buying local raw materials also help the business save money as it will be
cheaper.

11
 Potential for Growth
Potential for Growth refers to an organization’s future ability to generate larger
profits, expands its workforce and increase production. This can be done
internally and externally.

Internal Growth
The entrepreneur will employ two skilled bakers and purchase two additional
cake mixers to increase its production. Furthermore, the entrepreneur wishes to
expand the menu by adding pastries to attract more customers.

External Growth
As the business progress, the entrepreneur intends to establish two additional
branches in different areas of Guyana in the next five years. These locations
will be in Berbice and Vreed-en-Hoop. The entrepreneur will establish these
businesses using the profit that will be earned from the current business.

12
 Government Regulation
Two government regulation that will have an impact on the business are:

Certificate of Registration
A certificate of registration will show that the business shall be operating legally.
This will have a positive impact on the business as the entrepreneur will not be
fined by the government for operating illegally.

Payroll Tax Collection

Payroll tax collection refers to income tax an employee must pay i.e. deducted
from paychecks by the employer to be paid to the government. If the entrepreneur
makes a mistake when calculating the income tax to be paid to the government, the
business will be penalized while employees remained untouched. The entrepreneur
will therefore have to pay a fee for the mistake made resulting in spent unnecessary
money. This would have a negative impact on the business if this shall occur.

13
 Ethical Issue
One ethical issue the business will be engaging in shall be disposal of garbage
correctly.
Disposing garbage correctly can be done by having garbage placed into large bins
and taken away by garbage disposal collectors weekly to avoid pollution and
unwanted pests. This will make the business environment safer and cleaner
affecting the business positively.

14
 Bibliography

 Layne W. Armand; et al. C.X.C. Principles of Business. Cambridge

University Press. 2001.
 Robinson Kaylene; et al. C.X.C. Principles of Business with S.B.A., Study
Guide and Exercises. Carlong Publishers (Caribbean) Limited. 2001.
 http://www.answers.com/Q/What_are_the_benefits_of_a_backward_linkage

15
 Appendix

TRADITIONAL VANILLA

CHOCOLATE

16
COCONUT

RED VELVET

STRAWBERRY

17
CARROT

RASPBERRY LEMONADE

PEANUT BUTTER

18