1. PRINCIPLES OF BUSINESS S.B.A PROJECT TITLE- PRODUCTION NAME OF STUDENT –LEROY WALKER NAME OF TEACHER- SCHOOL- FORM- 5 GENERAL DATE DUE-
2. TABLE OF CONTENTS
• DESCRIPTION OF BUSINESS•
JUSTIFICATION OF LOCATION•
SELECTION OF APPROPRIATE LABOUR•
SOURCES OF FIXED AND WORKING CAPITAL•
ROLE OF ENTREPRENEUR•
TYPE OF PRODUCTION•
LEVEL OF PRODUCTION•
QUALITY CONTROL MEASURES•
USE OF TECHNOLOGY•
POTENTIAL FOR GROWTH
3. SECTION # 1 Description of business The type of business we are involved in is the candy business Lush’s luscious candy. This type of business is of partnership type. Lush’s luscious candy is targeting the regional market and is for both adults and kids of all ages. Our mission statement is to provide a low calorie but sweetened candy that willsatisfy the taste buds of our valued customers. This business isowned and operated by Lushard King & Danroy Connell, we were2007 and still running, our contacts are as follows: Email-jayzwalkerhotmail.com ,telephone:-4540243 Our opening hours are as follows: Monday – Thursday: 8:30 to4:30. Fridays 8:30-5:30 and on Saturdays- 9:00-3:30.
4. SECTION # 2 Justification of location Lush’s luscious candy is located in Kingstown opposite the wharf.We are located in this vicinity for three reasons for market pull, for customers going to and from mainland St.Vincent or touristexploring the island is in this area, the area is filled with people and where people can be found so we settled here.Transport access, we also chose this area because it is close to thewharf so we can save money on transporting goods from a far distance to ship to other islands so it is cheaper for import & exportof goods and raw materials.For linkage industries, in this area other than the wharf we also have help in getting sugar from a nearby business who sells goodsby wholesale.
5. SECTION # 3 Selection of appropriate labor Lush’s luscious candy has approximately 70 workers. We have 2skilled workers, 35 semiskilled and 10 unskilled. The skilled workers are as follows:We have ten (10) machine workers who control the machines creating the candy. Ten (10) ingredient mixers who create a new taste for the candy and also new types of candy. The business alsohas an accountant who keeps track of daily transactions of money,an executive, and two heads of department one for the skilled and the other for the semi-skilled.The semi-skilled workers are consisted of: the truck operators the company has 5 trucks with two with two workers each one driving and the other to load and unload goods giving us a total of 10 truck operators. We also have 15 ingredient workers who load the machines with ingredients for operators.The unskilled are the 10 janitors who clean the building. The reason for choosing this labor force is because it is suitable for this business.
6. SECTION # 4 Sources of fixed or working capital Fixed capitals are machinery and other things in the business thatlong life which are used over and over in the production of good sand services in a business. Fixed capital in this business are:trucks, the building, machinery and other equipment. The trucks are used to transport goods (candy) from the factory for sale in and around the island.The building is used for or to facilitate the machinery and workers to produce the goods.Machinery is used to help create a finished product of the candy.Working capital is defined as raw material, money and other items that are used up in the day to day running of the business or the goods that are constantly being used up in the business in its daily operations. E.g. money, sugar coloring.
7. SECTION # 5 Role the entrepreneur Lush’s luscious candy is owned by Lushard King & Danroy Connell. Entrepreneur is/are persons who organize and coordinate factors of production. They take risk and make decisions and carry out productions. Three roles of these personnel are:To make the necessary changes to help the business to expand both internally and externally.In expanding the business these persons have to organize the levels of labor suitable for it.Predict what type of candy he/she thinks is needed to produce for the public.
8. SECTION # 6 Type of production Lush’s luscious candy is involved in the secondary production.Secondary production is where raw materials are extracted from the Earth and is made into a finished good or products.We are involved in this type of production because we take or obtain raw materials from other businesses and create the candy therefore we are involved in secondary production.
9. SECTION # 7 LEVEL OF PRODUCTION Lush’s luscious candy is involved in the surplus level ofproduction. A surplus is an amount of goods produced at a greater amount needed or having a wide variety of goods that is produced for selling or trading it is produce not only to satisfy the domestic wants but also to satisfy other countries.This candy business produces candy locally but we have grown in business so we chose not only to produce for local consumption but to provide for other countries thus elevated us to the surplus level.
10. SECTION # 8 Government regulations Lush’s luscious candy is huge business that is obligated to pay taxes because the more profit we make the more tax we are obligated to pay therefore putting a strain on our business.We also have to govern our business with the articles of association and the memorandum of association to govern the internal and external aspects of the company.
11. SECTION # 9 Quality control measures Lush’s luscious candy produces a top class low calorie candy. Two quality low control measures we practice are: to have a health specialist to come in once a week to check the machines and the building to make sure they are proper to create the candy.We also have to have the candy taste tested by some specialist after production.
12. SECTION # 10 Use of technology Two types of technology that is in the business are:The computers and the candy mixer.The computers are mainly use by the accountants to store information for the future use and information on the daily transactions in the business.The candy mixer is use by the skilled workers after ingredient is added into the chamber. This machine blends them together like cake batter for the other machine to finish its work.
13. SECTION # 11 Potential for growth Lush’s luscious candy can grow both internally and externally.Two ways in which we can grow internally are:Upgrading with new and improved candy machinery. We can get more skilled workers to operate the machines. To expand externally we can open new branches in the rural areas around the island.We can also merge with a larger and well known company in the island or regional area thus increasing profits and customers.