ACKNOWLEDGEMENTS

Nicholas Wallace wishes to thank and feels deeply indebted to many individuals for their support and

assistance in the completion of this project. These persons are deserving of considerable credit.

They include:

i. His mother and father for their support and guidance and overseeing this project from

inception to completion.

ii. His brother and sister for their input and constructive criticism, being that that they both

completed similar projects.

iii. His teacher, Mrs. Stevens for her guidance and patience which was not only helpful but

essential in making this project a reality.

iv. His fellow classmates, for their constructive discussions which were very helpful and lead to the

corrections of minor mistakes.

i

DESCRIPTION OF THE BUSINESS

The Red’s Smoothies is a sole trader business owned by Mr. Nicholas Wallace. This business would provide a

wide variety of smoothies and shake in various sizes along with a variety of pastries. These sizes would include

the Chilin’ out Cup (Large), the Stop n’ Go Cup (Medium) and the On the Go Cup (Small). In addition, small

pastries will be available between the hours of 10:00 a.m. and 2:00 p.m. Customers will be offered a wide

range of flavors to choose from and various combinations and personal mix requests will be accommodated.

The main objective of the business would be to provide the most exotic smoothies at the most economical

price.

The target market of The Red’s Smoothies would include young professionals and high school students. To

reach this target market, several strategies will be employed. These include the distribution of flyers,

advertising in local newspapers and on local television stations as well as offering a 15% discount on all

smoothies purchased within the first week of operation. The business would also offer a take-out service as

well as an eating arena.

1

MISSION STATEMENT

To provide the best frozen drinks and pastries at the most economical price in a customer friendly

environment in order to please the customer.

2

JUSTIFICATION OF LOCATION

The Red’s Smoothies being a small business competing in a semi- large food industry would be very careful in

the selection of its location.

The business would be located in the popular area of Beckford Street where there are similar businesses in an

effort to benefit from the existing market. The ideal location is shop #16, Hendon Mall. This location would

provide the business with an excellent source of potential customers as it is an area rich in pedestrian traffic.

This location is surrounded by many high schools, football field, banks and government offices. Another reason

for this location would be the availability of sufficient space to establish the business and to provide adequate

parking facilities for its customers.

3

SELECTION OF APPROPRIATE LABOUR

The Red’s Smoothies, in deciding on how its recruitment exercise would be carried out chose the use of private

employment agencies and references from trusted friends and relatives. This method of recruitment, in

addition to reducing the costs, is less time consuming and provides the business with employees with the

necessary experience and qualities for working in the business.

The specific skill levels required by The Red’s Smoothies for the efficient running of the business, includes a

combination of unskilled, semi-skilled, skilled and managerial. The unskilled and semi- skilled jobs in this

business would require individuals with little or no special training and would mainly involve persons working

with their hands.

Individuals working on the skilled level would include bartenders and cashiers who would need necessary

qualifications and experience for their position. This category would be responsible the preparation and

proper presentation of the beverages and pastries as well as maintaining a high level of integrity and honesty

when taking orders and collecting payments.

The managerial skill level however, would require persons who have adequate knowledge and qualifications

for running a business as well as foresight and excellent work experience in similar positions. This level would

be occupied by the entrepreneur and managing supervisors. All prospective employees who are short listed

would be required to attend an interview and provide suitable references.

4

SOURCES OF CAPITAL

The Red’s Smoothies decided that in order for the business to get the necessary start-up capital to fund its

operation, it would obtain a loan from the bank. In addition, personal savings and money acquired from the

sales of personal assets would be used. The motor vehicle owned by Mr. Wallace will be used as collateral.

The loan obtained from the bank would be used as fixed capital for purposes such as purchasing items such as

industrial blenders, mixers, freezers and refrigerators. Working capital would be funded from personal savings

and the proceeds from the sale of a personal asset. This would be used for the day-to-day operation of the

business, including the purchase of required stock of ingredients, payments of rent, utility bills, employee

salaries and other necessary purchases.

5

ROLE OF THE ENTREPRENEUR

The primary role of the entrepreneur is to oversee all operations of the business, ensuring it provides a

profitable return on investments.

The entrepreneur is also responsible for making decisions affecting the viability of the business. This might

involve taking preventative actions to avoid future problems and making decisions regarding growth and

development. In addition, it is the responsibility of the entrepreneur to ensure that all operations are

coordinated and running smoothly to achieve maximum efficiency and that his operations conform to all

government regulations.

6

TYPE OF PRODUCTION

In the case of The Red’s Smoothies, the nature of its operation that is the making and selling of blended drinks,

would determine that it be classified as the secondary manufacturing (refining) type of production.

This industry takes raw products such as syrups, sugar and artificial flavors in the case of Smoothies and a

combines them to create a finished product which is excellent smoothies.

7

LEVEL OF PRODUCTION

The level of production which The Red’s Smoothies operates at would be classified as domestic since almost

everything involved in the production of frozen drinks will be produced and sold locally by the use of the

country’s natural and human resources.

8

QUALITY CONTROL MEASURES

The Red’s Smoothies has established a number of quality control measures as a means of regulating the

quality and standard of its product.

These measures include conducting a number of taste tests prior to opening to the public to determine the

standardized number of ingredients that would be needed to ensure that its products maintain a high

standard at all times, both in terms of taste as well as value for money. It will also be ensured that there will

always be a fresh stock of ingredients available to make these products. Another measure requires that

employees handle beverage and food- related operations in a clean and hygienic manner.

9

LINKAGES

The forward linkages that can be established would be linking with other fast food restaurants to facilitate

easier distribution of frozen beverages to all customers.

The linkage would cause the Marketing Mix to come into place. Customers will have the advantages of

comparing prices and comparing the product quality. The location of the restaurant is perfect, as it is in close

range to others. Promotion will be much easier because all the restaurants are in walking range of each other.

10

POTENTIAL FOR GROWTH

All small businesses aim to increase their profits, expand the business and thereby attract more customers.

This would be the same for The Red’s Smoothies.

It plans to start out as a small business with a vision for growth and expansion after the first two and a half

years of operation. Profits would be reinvested in the business with the hopes of opening at least two more

branches in nearby towns.

There are also plans for internal growth. Adding new products to offer customers a more varied selection and

increasing the daily output of smoothies being supplied. Also, as a result of internal growth more employees

would be needed to cope with the increase in production and future expansion of the business.

11

GOVERNMENT REGULATIONS

Government regulations are usually introduced in response to concerns about matters such as product safety,

advertising worker safety, environmental issues and laws were therefore made to regulate the activities of the

business.

In a business such as The Red’s Smoothies, the first aspect of government regulations that would have to be

adhered to is having the business registered. For a business in the food industry, it is of paramount importance

that all products are processed under clean and hygienic conditions. To ensure this, the business has to

conform to standards set by the Ministry of Health. These standards guard against endangering the lives of

customers. Hence, it is required that apart from the business having a license to operate, all persons directly

involved in the manufacturing of the frozen beverages must possess a Food Handlers’ Permit.

In addition, the business will be subjected to periodic inspections from Government Public Health Inspectors.

This will ensure that the business is always up to standard, thus ensuring that the business will gain an

excellent reputation.

12

ETHICAL ISSUES

The Red’s Smoothies is a business organization that thinks it important for the firm, its management and

employees to maintain a good ethical behavior at all times. For this reason, it has adopted a Code of Ethics

which would provide all members of the organization with a set of ethical guidelines. Adherence to these

standards is integral to achieving the objectives of Groovy Smoothies. The management and employees shall

not commit acts contrary to these standards nor shall they condone the commission of such acts by others

within the organization.

These ethical guidelines for both management and employees include:

v. Being honest, trustworthy and loyal to the organization

vi. Guarding against misleading advertisements.

The firm must also:

vii. Prevent causing any pollution to the environment

viii. Pay taxes due to the government

13

BIBLIOGRAPHY

Essential Principles of Business for the Caribbean by S. Hamil and A. Whitcomb

Kingston, Jamaica: Carlong Publishers 2001

Business-Its Nature and Environment by R. Glos, R. Steade and J. Lowry

Cincinnati, Ohio: South- Western Publishing

Strategic Management by P. Wright, C. Pringle, K. Kroll and J. Parnell

Englewood Cliffs, New Jersey: Simon and Shuster Company 1994

Organizational Behavior by S. Robbins

Englewood Cliffs, New Jersey: Simon and Shuster Company 1994

14

APPENDIX 1

QUESTIONNAIRE

Good day, I am Nicholas Wallace, the owner of The Red’s Smoothies who is investigating the feasibility of frozen drinks. I am therefore conducting a market survey in order to develop a business plan. Please allow me a few minutes of your time to complete this questionnaire.

Gender: Male ( ) Female ( )

Age: 12- 14 ( ) 15- 19 ( ) 20 and over ( )

1. Where do you reside? ____________________________________________________________

2. Are you currently working?

Yes ( ) No ( )

3. What is your occupation? _____________________________________________________________

4. What are your working hours?

7:00 am – 3:00 pm ( ) 8:00 am- 4:00 pm ( ) 9:00 am- 5:00 pm ( ) Other_______________

5. Do you use the product of frozen beverages?

Yes ( ) No ( )

6. If yes, how far do you travel to get to the nearest smoothie store?

1-3 miles ( ) 4 -6 miles ( ) 7- 10 miles ( ) Other ___________________________

7. Are you satisfied with the smoothies you are receiving?

Yes ( ) No ( )

15

8. What time of day do you usually visit the smoothie store?

Morning ( ) Afternoon ( ) Evening ( ) Night ( )

9. How often do you visit the smoothie store?

Regular ( ) Seldom ( ) Rare ( )

10. How much do you usually spend on smoothies?

Under $ 50 ( ) $75-$100 ( ) $100- $150 ( ) Other __________________

11. How would you rank the smoothies that you currently receive?

Excellent ( ) Good ( ) Fair ( ) Poor ( )

12. If your answer is ‘fair’ or ‘poor’ in the above question (no. 11), what can be done to improve this product?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

16

TABLE OF CONTENTS

PAGE

Acknowledgements i

Description of the Business/ Executive Summary 1

Mission Statement 2

Justification of Location 3

Selection of Appropriate Labour 4

Source of Capital 5

Role of Entrepreneur 6

Type of Production 7

Level of Production 8

Quality Control Measures 9

Linkages 10

Potential for Growth 11

Government Regulations 12

Ethical Issues 13

Bibliography 14

Appendices 15

Appendix 1- Questionnaire

Appendix 2- Organizational Chart

A SCHOOL BASED ASSESSMENT FOR CXC

(GENERAL PROFECIENCY)

PRESENTED TO THE BUSINESS EDUCATION

DEPARTMENT OF MANNING’S SCHOOL, JAMAICA W.I.

IN PARTIAL FULFILLMENT OF CERTIFICATION IN

PRINCIPLES OF BUSINESS

SUBMITTED BY: NICHOLAS WALLACE

REGISTRATION #: -----------------------

DATE: 2010- 2011

TEACHER: MRS. T. STEPHENS

TITLE: A BUSINESS PLAN- PRODUCTION

THE RED’S SMOOTHIES