PRINCIPLES OF BUSINESS S.B.A PROJECT TITLE- PRODUCTION NAME OF STUDENT –LEROY WALKER NAME OF TEACHER- SCHOOL- FORM- 5 GENERAL DATE DUE-
TABLE OF CONTENTS• DESCRIPTION OF BUSINESS• JUSTIFCATION OF LOCATION• SELECTION OF APPROPRIATE LABOUR• SOURCES OF FIXED AND WOKING CAPITAL• ROLE OF ENTRUPRENUR• TYPE OF PRODUCTION• LEVEL OF PRODUCTION• GOVERNMENT RUGULATION• QUALITY CONTROLL MEASURES• USE OF TECHNOLOGY• POTENTIAL FOR GROWTH
SECTION # 1 Description of business The type of business we are involved in is the candybusiness Lush’s luscious candy. This type of business is ofpartnership type. Lush’s luscious candy is targeting the regionalmarket and is for both adults and kids of all ages. Our missionstatement 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:-4540243Our opening hours are as follows: Monday – Thursday: 8:30 to4:30. Fridays 8:30-5:30 and on Saturdays- 9:00-3:30.
SECTION # 2 Justification of locationLush’s luscious candy is located in Kingstown opposite the wharf.We are located in this vicinity for three reasons for market pull, forcustomers going to and from mainland St.Vincent or touristexploring the island is in this area, the area is filled with peopleand 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 fardistance 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 alsohave help in getting sugar from a nearby business who sells goodsby wholesale.
SECTION # 3 Selection of appropriate laborLush’s luscious candy has approximately 70 workers. We have 2skilled workers, 35 semiskilled and 10 unskilled. The skilledworkers are as follows:We have ten (10) machine workers who control the machinescreating the candy. Ten (10) ingredient mixers who create a newtaste 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 andthe other for the semi-skilled.The semi-skilled workers are consisted of: the truck operators thecompany has 5 trucks with two with two workers each one drivingand the other to load and unload goods giving us a total of 10 truckoperators. We also have 15 ingredient workers who load themachines with ingredients for operators.The unskilled are the 10 janitors who clean the building. Thereason for choosing this labor force is because it is suitable for thisbusiness.
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 goodsand services in a business. Fixed capital in this business are:trucks, the building, machinery and other equipments.The trucks are used to transport goods (candy) from the factory forsale in and around the island.The building is used for or to facilitate the machinery and workersto 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 itemsthat are used up in the day to day running of the business or thegoods that are constantly being used up in the business in its dailyoperations. E.g. money, sugar coloring.
SECTION # 5 Role the entrepreneurLush’s luscious candy is owned by Lushard King & DanroyConnell.Entrepreneur is/are persons who organize and coordinate factors ofproduction. They take risk and make decisions and carry outproductions.Three roles of these personnel are:To make the necessary changes to help the business to expand bothinternally and externally.In expanding the business these persons have to organize the levelsof labor suitable for it.Predict what type of candy he/she thinks is needed to produce forthe public.
SECTION # 6 Type of productionLush’s luscious candy is involved in the secondary production.Secondary production is where raw materials are extracted fromthe Earth and is made into a finished good or products.We are involved in this type of production because we take orobtain raw materials from other businesses and create the candytherefore we are involved in secondary production.
SECTION # 7 LEVEL OF PRODUCTIONLush’s luscious candy is involved in the surplus level ofproduction.A surplus is an amount of goods produced at a greater amountneeded or having a wide variety of goods that is produced forselling or trading it is produce not only to satisfy the domesticwants but also to satisfy other countries.This candy business produces candy locally but we have grown inbusiness so we chose not only to produce for local consumptionbut to provide for other countries thus elevated us to the surpluslevel.
SECTION # 8 Government regulationsLush’s luscious candy is huge business that is obligated to paytaxes because the more profit we make the more tax we areobligated to pay therefore putting a strain on our business.We also have to govern our business with the articles ofassociation and the memorandum of association to govern theinternal and external aspects of the company.
SECTION # 9 Quality control measuresLush’s luscious candy produces a top class low calorie candy. Twoquality low control measures we practice are: to have a healthspecialist to come in once a week to check the machines and thebuilding to make sure they are proper to create the candy.We also have to have the candy taste tested by some specialist afterproduction.
SECTION # 10 Use of technologyTwo types of technology that is in the business are:The computers and the candy mixer.The computers are mainly use by the accountants to storeinformation for the future use and information on the dailytransactions in the business.The candy mixer is use by the skilled workers after ingredient isadded into the chamber. This machine blends them together likecake batter for the other machine to finish its work.
SECTION # 11 Potential for growthLush’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 areasaround the island.We can also merge with a larger and well known company in theisland or regional area thus increasing profits and customers.