Principles of Business School Based Assessment

Title: Establishing a Business, a production plan for Presidential Housing Supplies.

Name of Candidate: Martin Robinson

Candidate#:

Centre#:

Name of Teacher: Mrs. Sutherland

Territory: Jamaica

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Year of Examination: 2016

Acknowledgement

Firstly, I would like to thank the Lord for giving me the strength to complete this SBA.

I would also like to thank my teacher Mrs. Sutherland for giving me this SBA and for assisting me with it.

Therefore it was by the grace of God that led to the success of this SBA.

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Introduction

My SBA will be focused on production planning of establishing a business. Therefore I will elucidate

on the type of business I will be operating and more.

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Table of Content

Description of

Business……………………………………………………………………………………1

Justification of Location………………………………………………………….………….

…………..2

Selection of Appropriate Labour……………………………………………….………….

………….3

Sources of Fixed and Working

Capital……………………………………………………………..4

Role of the Entrepreneur………………………………………………………..

………………………5

Types of Production………………………………………………………………….

……………………6

Levels of Production…………………………………………………………………..

………………….7

Quality Control Measures………………………………………………………..

…………………….8

Use of

Technology…………………………………………………………………………………………9

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Linkage…………………………………………………………………………….

…………………………10

Potential of Growth……………………………………………………………………………….

…..11

Government

Regulations…………………………………………………………………………….12

Ethical Issues…………………………………………………………………………………………..…

13

Bibliography………………………………………………………………………………………………

14

Appendix…………………………………………………………………………………………………..

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Description of Business

The name of the business will be Presidential Housing Hardware. It will be a partnership that deals with

selling housing equipment to build and repair houses. Items such as door knobs, blocks, pipes, boards will

be sold. Presidential Housing Hardware will be engaged in the retailing of strong, durable and fashionable

housing equipment. The mission statement of the business is “pleasing customers at all times, ensuring

that we are always in stock of good quality housing equipment to have customers craving for more.”

1

Justification of Location

Presidential Housing Hardware will be located at 279 Spanish Town Rd, St. Catherine.

A few reasons why this location was chosen are:

The business will attract customers because of the high volume of potential customers in that

area.

The area is also well known for selling housing equipment so people will see what our business

has to offer and inform others which may lead to more customers for the business.

Another reason is because the business is closer to the raw materials which are needed to make

the equipment therefore it less expensive to transport the raw material from places.

2

Selection of Appropriate Labour

The types of labour necessary for Presidential Housing Hardware are; skilled and semi-skilled in order for

productivity to be effective. Presidential housing will employ two cashiers and six persons to assist

customers. The assistants will assist customers with identifying the items they are purchasing promptly

and also to answer any questions of the customers referring to the hardware and it’s items. Two drivers

will be needed also to transport items to the hardware that will be sold. Also the business will need two

accountants for the final aspect of the business.

The necessary labour has been chosen to keep the productivity level of the business elevating and for the

growth of the business.

3

Source of Fixed and Working Capital

Fixed capital

These are building equipment, machinery and vehicles which are used to transport hardware items that

will be sold. A loan of $500,000.00 will be borrowed from National Commercial Bank to purchase stocks

of good to keeps the business productive.

Working Capital

These are stocks of materials such as cash, bank balances, stock of goods and more. Working Capital will

be stocks of hardware items purchased from the loan of $500,000 which will be provided by the partners

of the business.

4

Roles of the Entrepreneur

The entrepreneur will be responsible for providing funds, setting goals to maintain the success of the

business and also organizing the factors of production. Another role of the entrepreneur is to concentrate

on the major things in the business. The entrepreneur is also expected to arrange the business regardless

of the risk and satisfy the demands of prospective customers. The entrepreneur will also plan and make

decisions regarding the objectives of the business.

The partnership will be undertaking three main functions:

To make decision that is necessary in order for the success of the business.

Also seek new ideas that can improve the business

Another function is to place workers in the position which suits their skill for it to bring out their

potential.

5

Types of Production

The type of production that will be carried out in Presidential Housing Hardware is secondary production

where the business converted raw material into finished products.

Raw materials are used to make good housing equipment by people in society. These include:

Lumber

Metal

Cement

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Levels of ProductionThe level of production that Presidential Housing Hardware will be operating is export

production. Export production which is also known as surplus production deals with the

importing and exporting of goods. Export production is the center that provides the services that

are essential to the first two stages of production. Presidential Housing Hardware will be

exporting across the Caribbean at places such as; Dominican Republic, Barbados, Trinidad &

Tobago and Cuba.

7

Quality Control MeasuresPresidential Housing Hardware will be having control measures for the assurance that the

standard of the business is always held high.

Major quality control Measure is; the hardware must be inspected that the environment is not

hazardous to neither customers nor employees health. Assistants should attend to every customer

in the hardware so that they don’t damage anything. Also products should be tested before they

get the approval to be sold.

8

Use of TechnologyTechnology devices that will be used are; computers which will be used in operating the process

of the business. The compute is more efficient than using human hand to calculate the cost of

stock. Cashier currency calculators will also be used because in this day and age when technology

is becoming more advanced and efficient a currency calculator will do the business and both

cashiers well.

9

LinkagesPresidential Housing Hardware will utilize both forward and backward linkages. The Linkage

which is derived from supplying hardware in the Caribbean is forward linkage. The linkage

which occurs when the business is depending on the raw materials from other businesses is

backward linkage. Both linkages are beneficial to the business. The business obtains benefits

from the linkages such as a constant supply of raw materials from backward linkages and also

publicity of the business from other business which is a benefit from forward linkage.

10

Potential for GrowthPresidential Housing Hardware will be known for good housing equipment by operating housing

hardware all over the island. In doing this the business productivity level will now increase

making it more efficient in the production, distribution and marketing of housing equipment by

selling housing equipment to Caribbean countries this will maximize the profit of Presidential

Housing Hardware. Presidential Housing Hardware will have enough profit by then to extend the

business from the partnership to cooperation.

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Government RegulationsThe business is registered with the Company’s Office of Jamaica (COJ). If this IS NOT done the

business can be charged for operating illegally. The business is also required to have a

partnership deed stating the registered name of the business, the capital contributed, the partners

and their position. If all these regulation are followed then the business will indeed be successful.

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Ethical IssuesPresidential Housing Hardware will always follow the laws of business with full intention of not

breaking those which have been enforced. This will keep us avoiding trouble at all times with the

health inspectors and the tragedy of having to be banned from doing business in the country.

Paying tax will allow the business to maintain operating possession in a friendly environment.

Ensuring that there is no form of misleading advertisement by the business.

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Bibliography

Carlong Publishers- Karlene Robinson and Sybile Hamil: CXC

Principles of Business with SBA, Study Guide & Exercise.

First Published 2001

Sixth Impression 2006

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Appendix

Status of Employee Working Hours Lunch Break Hours Monthly Salary Total Salary for the Year

Managers 11 hours 1 hour 15 minutes $94,000.00 $1,128,000.00

Cashiers 9 hours 1 hour $74,000.00 $888,000.00

Store Assistants 8 hours 45 minutes $60,000.00 $720,000.00

EMPLOYEES SALARY

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