Principles of Business SBA
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. Acknowledgement 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 (S. B. A). 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. Mission Statement 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 business. 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 business. Selection of appropriate labour Labour Type of labour Number of employees Functions of employees Why is this type of labour necessary Managers Managerial 2 managers Planning, organizing, delegating, and motivating workers to ensure tasks are effectively carried out on time. This type of labour is effective to ensure the smooth operation of the business and to enable the business to make a profit.
Editors Security Guards Skilled Skilled 3 Editors 2 Security Guards( night and day Security Guards). Responsible for reading information gathered before it is sold to the general public. Responsible for ensuring the safety and security of workers and patrons who enter the premises of DD’s Teen Magazine. This type of labour is necessary for the effective day to day operation of the business. So that workers can finish tasks delegated to them on time. Janitors unskilled 2 Janitors To ensure the environment is clean and healthy for patrons and workers.
This type of labour is necessary for carrying out basic functions to make persons feel comfortable within their working environment. Sources of fixed and working capital Fixed 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. Working Capital 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 business. 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 Magazines, are: Computer Printer 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 without images. 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. Linkages 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 Internal 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 equipment. External growth 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. Government regulation 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 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.