DESCRIPTION OF BUSINESS
Sweet ‘n’ Spice will be a small agro-processing company that will be established to use locally grown ingredients such as thyme, escallion, onion, pimento, scotch bonnet pepper etc. to manufacture sauces and bottled seasonings. The products to be manufactured will include jerk seasonings, curry seasonings, marinades, crushed pepper sauces, ginger barbeque sauces etc. The offerings (products) will be extended to local supermarkets, restaurants & hotels mainly across the western region of the island. Sweet ‘n’ Spice will be a privately owned business. The business will take the form of a general partnership between Ricardo Powell and Devon Skeine, who are both investors and will be actively involved in the daily operations of the business. The main objective of the business will be to meet the needs of the target customers whilst making a profit and ensuring growth. This will be achieved through the business producing seasonings and sauces that will simplify the food preparation process for homemakers, restaurants, hotels or any business involved in food services. The benefits that will be derived by the customer include: Convenient packaging
Minimize meal preparation time
Consistent flavor and quality
Longer shelf life of seasonings
The Mission Statement of the company will be; “To produce consistent quality sauces made from real Jamaican home grown seasonings at affordable prices”
JUSTIFICATION OF LOCATION
Sweet ‘n’ Spice production plant will be located in the bread basket parish of St. Elizabeth, Jamaica. This location was selected because of its proximity to the local farmers who will be supplying raw materials necessary for production such as scotch bonnet peppers, thyme, onions etc. Being located close to the suppliers the cost of transporting raw materials will be significantly reduced and there will be easy access to the raw materials needed for production.
The end products will be distributed mainly to the hotels and food service companies. The resorts will be located primarily in Westmoreland, St James & St. Ann which makes this location a central distribution point for the end products.
The parish mainly consists of rural farming communities where cheap labour can be found with persons having expert knowledge of the raw materials used in production.
SELECTION OF APPROPRIATE LABOUR
The company will be utilizing a functional organizational structure (Fig 1.). It will be headed by founder Ricardo Powell. Production will be managed by co-founder Devon Skeine who supervises a production team of approximately 12 employees. There will be an Operations Department headed by a manager and five employees responsible for finance/accounting, human resource and sales/marketing.
Based on the nature of production the company uses a combination of manual labour and machinery. Manual labour is mainly used to sort, wash and prepare the raw ingredients for processing and the machinery is used for grinding, blending and packaging the end products. The employees in the production aspect of the business are semi-skilled employees with basic numeracy and literacy skills but have expertise and in-depth knowledge of how to select and process the best quality raw ingredients. As such, majority of employees are from the surrounding farming communities. A few individuals are also recruited from the food industry. These persons are mainly involved in testing end products and coming up with new ideas and ways how to make the products better. The production manager and co-founder has years of experience in the restaurant industry and will use the knowledge gained over the years to continuously improve the operations. Good! But….. How do u select candidates for the positions?
SOURCES OF FIXED & WORKING CAPITAL
A business of this nature requires significant investment in fixed capital such as production space (building), equipment, furniture, trucks etc. The building will be used for production will be leased. Capital to start the business will be acquired through a business loan from a financial institution along with investments from personal savings from the partners. The loan will be mainly used to purchase machinery or equipment, furniture & two trucks for distribution. This loan will be fully repaid over a period of five years. Funds from partner’s personal investment will be used as working capital to fund the daily operations. In addition, it is expected that income from sales will be used to pay suppliers, employees and creditors.
ROLE OF THE ENTRPRENEUR
An entrepreneur is one who organizes, manages, and assumes the risks of a business or enterprise. Glossary?? The entrepreneurs of Sweet ‘n’ Spice has the responsibility to ensure the efficient daily operations of the business and continuously invent ways to improve on efficiency. The owner has the responsibility of effectively planning which includes securing the necessary finances and equipment to enable production and ensure a profit is made. He also has a role in organizing and by so doing will have to ensure that the production process flows efficiently from the point the raw material is delivered to the point the end product gets to the customer. A very important role of the entrepreneur in the business is that of managing. Managing mainly has to do with ensuring there is adequate staffing who are knowledgeable, aware of the business goals. It also entails providing safe and comfortable working environment so that employees can be motivated to produce to the best of their ability.
TYPE OF PRODUCTION
Sweet ‘n’ Spice is involved in secondary production. This basically means that the company uses raw materials (onions, thyme, pepper, garlic etc) from other companies and converts them into finished products (sauces and marinades) for sale.
LEVEL OF PRODUCTION
The business will be producing goods at the domestic production level as its end products will be marketed and sold to the local market. This level of production will assist the country in saving foreign exchange as it will not have to import these products and it will develop local skills. As the business expands it will engage in surplus production for export.
QUALITY CONTROL MEASURES
The entrepreneurs of Sweet ‘n ‘Spice will ensure the consistency of quality end products. To ensure this consistency, the company will provide standard content specification for each sauce made. It means therefore that each bottle of sauce produced will have the same percentage mixture of the various ingredients. Additionally, employees responsible for purchasing raw materials are charged with the responsibility to select input materials that are of the highest quality. Each batch of sauces produced will be tested to identify any impurities or inconsistencies in taste or colour. These measures will be taken to ensure that customers’ expectations are constantly being met and they will continue to support the business.
USE OF TECHNOLOGY
Sweet ‘n ‘Spice will utilize various equipment and technology to ensure consistency and efficiency. One such technology to be used will be the Spice Grinder Mill which is the machine used for crushing. By means of relative motion between movable and fixed fluted discs, the material will be crushed through impact and friction of the teeth and impact among the materials. This machine is designed to produce high output, easy to wash, low noise, low power consumption, reliable seal and good cooling down features and wholly made of stainless steel.
Spice Mill Grinder Ribbon Blender / Horizontal Mixer FIG 3. A second technology that will be used is the Ribbon Blender/Horizontal Mixer. The purpose of a Mixer is to blend together two or more ingredients. In a Horizontal Mixer, the mixing cycle is fast and dry or wet mixing can be done. A ribbon paddle type auger will be mounted on the mixer shaft to convey the material from one end of the mixer to the other while it is tumbled within the mixer. Discharge opening will be provided at the bottom to help in rapid discharge. The shaft will be supported on the self aligning bearings on which the blender ribbon or paddle will be mounted. The ribbon angle will be adjusted to give maximum mixing efficiency. Liquid will be poured into a perforated tray located at the top, through which will trickles down on the feed and get mixed within 7 to 10 minutes.
These are two of the machines that will be used to significantly reduce production time and it ensures there is consistency in each batch produced. It will also reduces workload and labour cost thereby improving efficiency.
The production process will depend on raw materials which will be derived mainly from farmers and packaging materials such as labels, bottles and cardboard boxes will be provided by suppliers of these products. It means therefore that a forward linkage will be created between the business and those in the agriculture and the packaging industry as their output will become our input which will make it beneficial to each other. Additionally, the output of our company will become the input of the food service providers such as restaurants and hotels again creating a linkage beneficial to both parties. This type of linkage is important as it will ensure that the farmers will have a guaranteed market for their produce and the business will have a market for its sauces. It also means that income will be generated and more people will gain employment.
POTENTIAL FOR GROWTH
As the demand for the products increase the intention will be to acquire more equipment and staff to increase production. The business will also expand by going into new products such as making jams from locally grown fruits instead of focusing only on seasonings. The products will then be marketed and distributed across the entire island. We will also expand customer base by selling products to gift stores in the resort area so that tourists can purchase the products. Eventually the company will produce surplus which will be packaged for export to foreign countries.
Good. This should be internally and externally. So you need to create headings to reflect each. Please see the outline.
In order to form a partnership there are certain guidelines that have to be followed as it is required by law that the business need to register with the Registrar of Companies and fees paid. (POB) pg 36. The Registrar requires that a Partnership Deed be presented outlining the name, type and address of the business, the partners’ names, citizenship and the date of the partnership agreement. Failure to do so may result in the business being brought to court. It is also a requirement by law for taxes to be paid. It means therefore the business has to ensure that proper records are kept and that the business produces efficiently so taxes can be paid and still make a profit.
How will this impact on the business?
It is required by the Bureau of Standards that products are properly sealed and labeled with ingredients, production date, batch number, expiry date etc. and that health and safety standards are maintained. The company will have to ensure that these standards are met by doing frequent inspections of products and be responsible for providing proper work gears for employees and ensuring they are certified food handlers. The business will also have to ensure there is a system in place for proper removal of waste materials. Please check your outline to see if this ask about ‘IMPACT”