This business plan outlines the production function of Art Connection Inc., a private limited company established by Rebecca Denoon. The plan describes the company's mission to encourage art appreciation through selling original works. It details the shareholders and staff roles, and justifies the location in Port of Spain for its proximity and affordable cost. Quality control standards and adherence to regulations are discussed to ensure lawful and ethical operation. The plan concludes the production analysis provides a framework to monitor performance and determine feasibility of this art retail business.

1. CARIBBEAN EXAMINATION COUNCIL
SCHOOL BASED ASSESSMENT (SBA)
PRINCIPLES OF BUSINESS
CANDIDATE NAME:
REBECCA DENOON
REGISTRATION NUMBER:
TITLE OF STUDY:
A BUSINESS PLAN (PRODUCTION) OF ART CONNECTION INC.
CENTRE NUMBER:
160210
DATE OF SUBMISSION:
2​/6/2016

2.
TABLE OF CONTENT
TITLE PAGE
Acknowledgements i
Purpose of Study ii
Profile 1
Description of the Business 5
Role of the Entrepreneur 8
Use of Technology 9
Potential For growth 10
Profile 2
Justification of Location 11
Selection of Appropriate Labour 12
Source of Fixed and Working Capital 14
Types of Production 15
Levels of Production 16
Quality Control Measures 17
Linkages 18
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3.
Profile 3
Potential for Growth (External) 19
Government Regulations 20
Ethical Issues 21
Conclusion 22
Bibliography 23
Appendix 24
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4.
ACKNOWLEDGEMENTS
I would first and foremost like to thank my mother and
sister for helping me with some of the information on this
School Based Assessment (SBA). Not forgetting the
almighty God for giving me the strength and little wisdom
I have on the topic. Finally I want to say a special thanks to
my teacher for guiding us on the way of this SBA.
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5.
PURPOSE OF STUDY
The business plan of Art Connection Incorporation will
examine the Production function. A Business plan is a
detailed written statement that describes all the details of
the proposed business; who is responsible for the business:
how it is going to get the necessary capital and what profit
it hopes to make.
In order to achieve its objectives a business needs a plan.
This plan will help the entrepreneur to think through all
the possible issues and problems in starting and
developing this business. It can be used to show the
bankers, possible investors and other interested parties, in
order to raise the necessary finance to start the business.
The business has a great likelihood of success by having a
carefully thought out business plan.
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6.
BUSINESS PLAN (PRODUCTION)
Profile 1
DESCRIPTION OF THE BUSINESS
- The Name of the business to be established is Art
Connection Inc. This is a private limited company. A
private limited company is a business organization
with 2-50 members. Membership is restricted to close
friends and family, business associates.
Formation
A private limited company (Incorporated) is formed by
submitting to the Registrar of companies the
Memorandum of association and the Articles of
Association. A certificate of Incorporation is then
issued.
Characteristics
1. Companies have continuity.
2. Shareholders have limited liability.
3. Membership is restricted (2-50.)
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7.
There will be seven shareholders in Art connection
Inc, all who share the same passion of Art as Ms.
Denoon (the person who had the idea to start the
business.)
The shareholders are Ms. Denoon (entrepreneur)
Grace Denoon, Amelia Codjoe, Saria Jade, Karisha
Rampersad, Lily Prescott and Tamika James.
- This business will be a retail oriented one, that is
selling original works of arts to the customers of Art
Connection Inc.
- The mission statement is a single statement of the
core aims or goals of a business. It sets out the main
purpose of the business and is constantly monitored
to ensure that it is being achieved.
The mission statement of this business is “To
encourage an appreciation of art and its role in society
through direct interaction and sale of original works
of art.”
- Objectives are statements indicating what steps will
be taken to achieve the aims/goals (mission statement
of the business.
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8.
- The objectives of this business will be:
●To earn income for owners and individual artists
●To enjoy gains or benefits as the business grows.
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9.
ROLE OF THE ENTREPRENEUR
- An entrepreneur is someone who has the idea to start
a business. The entrepreneur undertakes the risks
involved in establishing and running a business.
His/her role is to combine the other factors of
production (land labour and capital) to produce goods
and services.
- Rebecca Denoon as the Entrepreneur of Art
Connection Inc. has to carry out several functions.
These will include:
- 1) Ms. Denoon has to bear the risks of the business.
Ms. Denoon as the Entrepreneur of Art Connection
Inc. will approach RBTT Bank to obtain a load of
$40,000. Her parents has also promised a loan of
$6,500. She plans to spend this start up capital
(46,500) on buying equipment (hanging equipment,
fames, barriers.) The business will be located at
Frederick Street Port of Spain Trinidad at a reasonable
price.
2) Ms. Denoon will source her heavy equipment
(counters, signs, stands, frames, lights etc.) from
Deltex Art shop, Amazon, True Value Hardware Stores
and (Y) Art shop.
3) Ms. Denoon will seek hire and experienced
manager.
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10.
USE OF TECHNOLOGY
- This business will make use of the modern technology
in carrying out its production function.
- Two types of technology that the business can make
use of are; Security cameras and a Computer.
1. Security Cameras are devices used to provide security
for the workplace as well as providing footage of any
events that occurs there.
2. A computer is an electronic device used to store
information.
The technology used will enhance the efficiency of the
firm by:-
1.) Security cameras- will act as a visible deterrent
criminals and and dishonest staff.
2.) Computer- Social Networking Site(s) can be
accessed and used to provide easier access for
customers to view or purchase products via telephone,
without having to physically visit the business.
POTENTIAL FOR GROWTH (Internally)
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11.
- The business has the potential for growth internally
by:-
1) The owner of Art Connection Inc. within the next
five years plans to hire additional staff to provide
more creativity, funds and recognition to the company
2) The owner intends to plough more funds into the
business. These funds would provide for the various
needs of the company, towards expansion.
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12.
Profile 2
JUSTIFICATION OF LOCATION
- The business will be located at Frederick Street, Port
of Spain, Trinidad.
- The reasons for the choice of this location are:
1) The cost of location is affordable. Staff members
live near to this location and will not have any
difficulty in getting to work on time.
2) Linkage Industries: The location of this prospective
business will be near other businesses on which it
depends.
3) It is within a commercialized area. Since the chosen
location is the hub of the Trinidad, there will be more
locals and immigrants in the area who may have an
interest in the Art Connection Inc products.
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13.
SELECTION OF APPROPRIATE LABOUR
- The seven shareholders will work in the business along
with eleven employees. These individuals must be
knowledgeable in their selection of Art. Apart from the
artists themselves, the company will hire a professional
manager.
- The jobs in a hierarchical order in the business would be:
Manager
1) Three supervisors
2) Eight specialist
3) Seven artist (including two photography artist)
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14.
Job Description
- Manager​;- ​Accomplishes staff results by communicating
job expectations; planning, monitoring, and appraising job
results; coaching, counseling, and disciplining employees;
developing, coordinating, and enforcing systems, policies,
procedures, and productivity standards.
Supervisors​;- ​Accomplishes staff job results by coaching,
counseling, and disciplining employees; planning,
monitoring, and appraising job results; conducting training;
implementing enforcing systems, policies, and procedures.
Specialist​:-​Concentrates primarily on a particular subject
or activity; highly skilled in a specific and restricted field;
Carry out the specific functions that is consistent to achieve
their vocational goals.
Artist​:- ​Will usually be involved in researching, planning
and creating art work and their activities may include​:
generating ideas, idea development, sketching, making
models; creating or developing a piece of work in response
to a brief or commission; meeting deadlines; working in a
studio or off-site and adhering to health and safety
procedures; writing press releases; maintaining a portfolio
which will typically include a website.
- The reason why these employees are necessary is to ensure
the proper functioning of the Art Connection Inc.
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15.
SOURCE OF FIXED AND WORKING CAPITAL
- Fixed capital 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 e.g furniture,
machinery, computers, vehicle etc.
Management of Uses Cost
Fames $3,340
Hanging equipment $1657
Books for library $16570
barriers $11,851
Counters $7953
Total 38365
- Working capital is capital that is continually
changing in quality, total value or nature eg. stock,
cash, etc.
Management of Uses Cost
Exhibitions $25-$15,000
Staff sales $18,ooo-$240,000
Staff Payment $5,000-$25,000
Average $280,000
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16.
TYPE OF PRODUCTION
Production can be divided into three types, namely
Primary, Secondary, Tertiary Production, as shown in
figure 1 below.
Figure 1: The Types of Production
PRODUCTION
This business belongs to the secondary and tertiary sector.
Secondary because art and crafts are created from raw
materials by members. Tertiary (direct) since art and
crafts would be sold directly to customers clients or other
businesses.
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17.
LEVELS OF PRODUCTION
- The levels of production refers to the manner in which
people’s needs and wants are satisfied.
As shown in Figure 2 below, there are basically three
(3) levels of production under which a business can
operate.
Figure 2: Levels of Production
LEVELS OF PRODUCTION
Art Connection Inc will operate at the Domestic level of
production since it satisfy the need of the local market by
selling cultural art locally. This business will not be
involved in export.
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18.
QUALITY CONTROL MEASURES
- Quality Control is the process of ensuring that the
products/services of a business meet predetermined
standards, to satisfy its customers and maintain its
market share.
- Quality control standards that this business will
adhere to are:
1) Ensure that​​the arts and crafts produced are up to
standard.
2)Proper supervision
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19.
LINKAGES
A linkage industry is one that is linked to another industry.
There are two types that of linkages as illustrated in Figure
3.
Figure 3: Linkages
LINKAGES
- One type of linkage to be derived from this business is
a Forward linkage with the hotel industry; since the
hotels and guest homes will purchase local art and
crafts to adorn and beautify their walls.
- This type of forward linkage is important since the
products of one industry will be used by another
industry, and both industries will benefit and prosper.
Profile 3
18

20.
POTENTIAL FOR GROWTH (External)
- Art Connection has the potential to grow externally
by;-
1) Merging with another Art Gallery in order to achieve
economies of scale whereby cost will be reduced.
2)Setting up a web-site for the Art gallery; Showcasing
the art and crafts, where customers can make
purchases without coming to the Art gallery.
19

21.
GOVERNMENT REGULATION
- This business (Art Connection) will be guided by
government regulations to ensure that its business
operations ​under production​, will be conducted in a
lawful manner.
A government regulation that will impact on the business
is the Industrial Regulation Act to protect the rights of
workers eg. against unfair dismissal.
This regulation will impact on the business since it will
ensure the workers are treated fairly so they may feel safe
individually and be satisfied and motivated to do their
work.
20

22.
ETHICAL ISSUES
- A business should not only be concerned with profit
making and growth but also with ethical and
environmental issues.
- Ethics are moral guidelines that determine decisions
making.
A business that is acting ethically, will give
consideration to the legal, social and moral
obligations of any decisions or actions that it takes.
- The business will be guided by ethical, social and
moral rules when dealing with the production
decisions by adopting a nearby park and beautify it
with art pieces for prominent artists.
- The impact on the business from paying attention to
this ethical, social issue is that its staff will take pride
in working for a business which shows concern for the
community and the environment.
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23.
CONCLUSION
This Business Plan provides a Production Analysis of Art
Connection Inc. This Business Plan provides the
entrepreneur with a blueprint for the operation of the
Production Function of the business. It will give the
entrepreneur a medium by which the performances and
progress of the business can be monitored. Most
significantly, it is helpful in determining whether this
business idea is a feasible, viable one.
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24.
BIBLIOGRAPHY
WEBSITES:
- BusinessDictionary.com
- CaribExams.org
- Google Maps
- Wikipedia
- When.com
- www.dartmouth.edu/~charky1/page40/page50/styled1
3/files/job-descriptions-july.2012.pdf
- www.prospects.ac.uk/job-profiles/fine-artist
- www.iod.com
- Youtube
BOOKS:
- Karlene Robinson and Sybile Hamil (2007) C​XC
Principles of Business with SBA, Study Guide &
Exercises.
- Tyche Thomas (My sister) POB notebook.
- Oxford Dictionary.
- POB School Based Assessment (SBA) HANDBOOK
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25.
APPENDIX
- Google maps (location of the business)
- Mother and other relatives’ suggestions
- POB notes on Linkages
- Pop quiz on the Role of the Entrepreneur
- Principles of Business (POB) SBA//
www.slideshare.come
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