PRINCIPLES OF BUSINESS SCHOOL BASED
Name: Debbian Lodge
Name of School: St. Mary’s College
Name of teacher: Ms. Howell
Year of SBA: 2013
Table of Contents
Description of the business 1
Mission Statement 2
Justification of location 3
Selection of appropriate labour 4
Sources of fixed and working capital 5
Roles of the entrepreneurs 6
Functions of the entrepreneurs 7
Type of production 8
Levels of production 9
Quality Control Measures 10
Use of technology 11
Potential for growth 13-14
Government regulation 15
Ethical Issues 16
Inside this School Based Assessment (S.B.A) you will see the entrepreneurs’ plans and
objectives for their prospective business, DD’s Teen Magazines. You will also find information
on the description of the business; location, how capital will be obtained and the roles and
functions of the entrepreneurs. This project will help others who read it by allowing them to
know the necessary steps they should take, if they are interested in becoming an entrepreneur.
I would like to express my sincere gratitude to my teacher, Miss. Howell, for her knowledge and
expertise which helped me in the successful completion of this School Based Assessment
I would also like to express my gratitude to our heavenly father Almighty God, for providing me
with the knowledge, strength, and the apprehension which guided me in the successful
completion of my S.B.A.
Lastly, I would like to express my gratitude to my parents for providing me with the necessary
finances and incite which assist me in the successful completion of my S.B.A.
Description of the business
DD’s Teen Magazine is a partnership business between two sisters, Debra Lodge and Debbian
Lodge. Debra Lodge has over five years’ experience as a customer service representative and
Debbian Lodge has her degree in sales and marketing.
DD’s Teen Magazine is a part of the manufacturing industry. Magazines will be produced by
purchasing newspapers from the Jamaica Gleaner Company, and putting the information
together. Information from the newspapers will not be plagiarized. After information has been
put together, it will be reviewed by the editor and printed. Batches of magazines will then be
distributed to stores across the island.
The mission statement of DD’s Teen Magazine will be:
To promote reading among teens in Jamaica, so that they can make a meaningful
contribution towards society’s development.
Justification of location
DD’s Teen Magazine will be located at 53 Hanover Street, Kingston Jamaica. I chose this
location for various reasons. The following are listed below:
Land Space: There will be availability of sufficient suitable land for this prospective
business, at an economically viable price. It also is a suitable position which will attract
Market Pull: The location of this prospective business will be attracted to sites close to
where potential customers can be found.
Linkage Industries: The location of this prospective business will be near other
businesses on which it depends. It also will be located to other firms in a similar line of
Selection of appropriate labour
Labour Type of labour Number of
Why is this type
Managers Managerial 2 managers Planning,
ensure tasks are
carried out on
This type of
operation of the
business and to
business to make
and day Security
it is sold to the
premises of DD’s
This type of
necessary for the
effective day to
day operation of
the business. So
that workers can
them on time.
Janitors unskilled 2 Janitors To ensure the
This type of
to make persons
Sources of fixed and working capital
These are the durable (long-term) assets of a business which are used over a long period of
time and are tied up in permanent use.
Some examples of fixed capital are: land, building etc.
For this prospective business, a sum of two million ($2,000,000) will be borrowed from The
Bank of Novia Scotia Jamaica, and will be paid back gradually, at a later date. This capital will be
used for the purchasing of the building. The capital will also be used for purchasing of
machinery, such as: computer, printer, point of sale, magnetic stripe reader.
These are stocks of materials; cash, bank balances, and other items required for the day to day
operation of the business and are continually being used up.
For this prospective business, capital will be obtained from personal savings, a sum of five
hundred thousand dollars ($500,000). And borrowing a sum of eight hundred thousand
($800,000) from family members. These capitals will be used for purchasing newspapers, ink to
operate the printer, and papers to print information on.
Roles of the entrepreneurs
The entrepreneurs of this prospective business will perform various roles in order for DD’s Teen
Magazine to begin operation.
Some of the roles are listed below:
We will organize the factors of production- bring together all resources necessary.
Human and non- human for the effective operation of the business.
We will also come up with new and creative ideas that will boost the production of the
We will also come up with the capital necessary for the operation of the business.
Functions of the entrepreneurs
The entrepreneurs of this prospective business, DD’s Teen Magazine, have various functions
that they will have to carry out, in order for the business to be successful.
Some of the functions are listed below:
Planning: This is the first stage of management. The entrepreneurs of DD’s Teen
Magazine will be responsible for setting goals, deciding on resources needed, and the
time line to meet these objectives.
Organizing: The entrepreneurs of this prospective business will also be responsible for
bringing together all the resources needed, in order to provide the goods magazines).
Evaluating: The entrepreneurs of this prospective business will also be responsible for
accessing output base on objectives set to determine how well they were met, and what
steps can be taken to improve performance in the future.
Type of production
This prospective business, DD’s Teen Magazine, will be engaged in secondary production.
This involves taking the raw materials from primary production and changing them into finished
goods to be purchased by consumers.
The newspapers that will be brought from the Jamaica Gleaner Company will be thoroughly
read, so that we can get ideas to use in our magazines. These ideas will be put together and
typed, after which they will be printed.
Secondary production is also known as CONSTRUCTION and MANUFACTURING INDUSTRIES.
Levels of production
This prospective business, DD’s Teen Magazine, will be engaged in domestic level production.
Domestic level production involves producing goods locally, with in your home country. This
level does not involve import from foreign countries.
DD’s Teen Magazines will purchase newspapers within their home country, Jamaica, and use
these newspapers in order to create the magazines.
Quality Control Measures
The entrepreneurs of this prospective business, DD’s Teen Magazines, have many measure that
are put in place to ensure that the quality of the materials being issued meet demands of the
customers. Some of those measures are listed below:
A sample of the magazine is sent to the editors, in order for them to check the content. This
is to ensure that the materials being read by the teens are age appropriate.
Magazines are also double checked by the head of the customer representative
department, to ensure that the free posters that were promised as a part of the package is
available in all the magazines.
Use of technology
Two types of technology that will be employed by this prospective business, DD’s Teen
The different technologies listed above will enhance the efficiency of this prospective business,
DD’s Teen Magazines.
The statements below will show how these technologies will enhance the business’ efficiency.
Computer: This will be used to type information which will be placed in the magazines.
Pictures will also be gathered with the use of this technology.
Computers will enhance the efficiency of the business, because it allows information to
be presentable, and easily put together. Before computers were invented, a type writer
was its replacement. This only allowed information to be typed; no pictures could be
formed using the type writer. Some teens would not be interested in reading magazines
Printer: This allows the information that was typed to be printed. Without the printer
the hardcopy of the information typed could not be printed. As a result of this the
information could not be put together in the form of a magazine.
DD’s Teen Magazines will be involved in forward linkage. This occurs when the finished
products of one industry becomes the raw material of another industry.
DD’s Teen Magazines will benefit from this linkage because newspapers will be purchased in
bulks, so they are less expensive. This means the company will not pay a lot for the newspapers
because they will not be bought one-by-one.
Potential for growth
For this prospective business, there will be a great infrastructural expansion within the next two
to three years. We also intend to employ more persons, purchase more machinery and office
This prospective business intends to have different branches in all the parishes of Jamaica
within the next four to ten years. We also intend to make our company well known overseas
and the rest of the Caribbean by forming Multinational Corporation.
Figure 1: A diagram showing internal and external growth within the next ten years.
The regulatory practices governing the establishment of businesses refers to the rules and
regulations by which persons who wish to establish a business should be guided. DD’s Teen
Magazines will have to be duly registered with the Registrar of companies before business
operations can commence. A certificate of registration will be issued to the company and must
be appropriately displayed in the place of business. DD’s Teen Magazines will also be required
to get a copyright license.
Certificate of registration: This shows that the company is operating legally and the
entrepreneurs will not be fined or imprisoned for illegal operation. The business also
could not be terminated for not being registered.
Copyright license: This is the exclusive right to publish or record a work. If you use
someone’s work and do not have a copyright license, this is known as copyright
infringement or plagiarism. The business could be terminated or the entrepreneurs
could be fined or imprisoned for committing the act of plagiarism.
Ethical issues refer to the beliefs about what is right and wrong behavior or action.
One ethical issue that DD’s Teen Magazines will have to adhere to is:
Keeping promises: Free posters are promised to be available in the magazines for the
customers. If promises are not kept customers will purchase goods elsewhere and the
business will suffer a loss.
If promises are kept customers will have more faith in the products of the business and
will more likely to buy them.
Whitcomb, Alan etal: Essential Principles of Business for CXC 2nd edition.
Car long Publishers (Caribbean) Limited.
Chapter 2: 19-27.
Whitcomb, Alan etal: Essential Principles of Business for CXC 3rd edition.
Pearson Education Limited (2006).
Chapter 12: 162-182.
PAYMENT FOR EMPLOYEES
Position of employee
hours Lunch Break Hours
Total Payment for the
hours 1 hour and 15 mins $80,000 $960,000.00
hours 1 hour and 15 mins $75,000 $900,000.00
Security Guard (Day time)
hours 1 hour and 15 mins $45,000 $540,000.00
Security Guard (Night )
Take breaks in between
hours $45,000 $540,000.00
Janitor 9 hours 1 hour and 15 mins $35,000 $420,000.00