Name of Candidate: Carl La Guerre

Candidate Registration Number: 1600040346

Name of School: Arima Central Secondary

School Centre Number: 160004

Subject: Management of Business Unit 1

Topic: An investigation into the factors that makes J & A school caf a successful
business operation: the nature of sole trader businesses, establishing business objectives, clearly defines organisational structure, motivation and finance.

Teacher: Mrs. Rattan

Abstract

This research project is derived from three modules in unit one (1) of the Management of Business Syllabus; Module 1- Business and its environment, Module 2- The management of people and Module 3 Business finance and accounting. This project endeavors to bestow knowledge in the field of analyzing and reporting the nature of a real life business organization. The data obtained in this report made use of the following primary sources: questionnaires, interviews and visits to the organization. The secondary sources of data collection were in the form of textbooks and the internet.

(i)

Acknowledgements

I would like to thank the many individuals that have contributed to the successful completion of this project. Special thanks go to Mrs. Rattan, my Management of Business teacher, for all the guidance, support and useful comments on the report. I am also indebted to my parents and friends for the contribution of ideas and most importantly God, for the continued strength and patience that allowed me to shape and structure the project

(ii)

Table of Contents
Page number

Abstract Acknowledgement Introduction Planning of Project Module 1: Business and its Environment
Description and analysis

(i) (ii) 1 8 11

Module 2: Management of People

Description and analysis

17

Module 3: Business Finance and Accounting

Description and analysis

23

Presentation of data
Analysis and Interpretation of Data

28 26 27 31 35

Conclusion Recommendations Appendices Bibliography

Introduction

Purpose of Study This report attempts to develop my skills in collation, communicating, evaluating and interpretation of data, as well as my ability to extrapolate and make suggestions. The study examines the operations of a private sector enterprise and show how basic tasks are formulated within the organization. The aim is to understand and connect the theories studied in the classroom to that of an existing business and understand the impact of these principles on the day-to-day operation of the business. Additionally, it helped me to appreciate and understand the importance of setting organizational goals and progress awareness of the effect of human motivation, decision-making, organizational effectiveness and business finance.

Background of the Enterprise J & A School caf was established to serve the catering needs of the students population of six hundred and fifty (650) and a staff of sixty (60) teachers at Arima Central Secondary School. The enterprise takes the structure of a sole trader. It is owned and operated by Ms. Judy Williams. To assist with the day-today tasks her husband, Mr. Abraham Williams, alongside three (3) workers takes the responsibility of this burden. The caf is located on the schools compound at

Marie Street, Arima. It opening hours is from 6 am to 5 pm Monday to Friday. The organization is involved in both secondary (food is cooked and prepared on location) and tertiary (selling of goods in the caf/ catering service is also provided) level production. Ms. Williams supply the school population with daily lunches and meals for special occasions. Catering for any, other non-school related events are also provided for such as birthday parties, christenings and Christmas parties. Over seventy percent (70%) of the commodities sole are prepackage food. These consist of snakes and drinks or food from wholesalers e.g. pastries. The remaining thirty percent (30%) of commodities are prepared in the schools kitchen. These consist of hamburgers, hot dogs and the meal of the day. The caf has been in operation for the past ten (10) years and was officially launched in 2000 when the owner, Ms. Williams, resigned from her previous occupation. Currently, the business has one branch. On the schools compound, all the preparation is done for all types of events.

Mission Statement To serve clean and reasonable meals to all customers in a friendly manner.

Limitations of Data Collection Methods:

The sole trader kept salaries and profits confidential. Time constraints. There was only time to conduct one interview with the owner. Ms. Williams misunderstood some of the business jargons used in the interview.

Planning of the Project

Methodology The data obtained in the report, to gather evidence, was based on verifiable evidence and not on personal belief. This report made use of both primary research methods and secondary research methods of obtaining data. Primary research methods were in the form of questionnaires, interviews and visits to the organization for observation purposes. The secondary sources of data collection were in the form of textbooks and the web.

Description and selection of sample The reason for interviewing Ms. Williams was, she is the owner of the organization and the necessary information needed on the factors that make J & A caf a successful business operation would have been easily obtained from her. There were two (2) questionnaires issued to gather data for the successful completion of this report. The first one was distributed to four (4) employees of the caf to get adequate information on what makes her business a success. The other questionnaire was distributed to a convenient sample size of twenty (20) to the students of the school; ten (10) males and ten (10) females from all forms of the school.

Description of Research Instrument The questionnaires issued to the employees of the business and student population were more closed ended questions with easy to capture information by having individuals respond to Yes or No. Another questionnaire, which was more open-ended, was formulated to serve as a guideline in the in-depth, face-toface interview with the owner, Ms. Williams. This session lasted approximately one and a half hours. Four (4) students were appointed to take detailed notes so that adequate material could be acquired. This was a superlative and effective method of research because specific information was needed relating to the topic. The information obtained from the questionnaires was shown in the form of graphical representation. The graphs and charts were used to analyse the data received from the market research conducted.

Description of Research Design The interview with the sole trader and the questionnaires for this project was carried out at Arima Central Secondary. We chose a private sector business of the economy; a sole proprietorship. The research population consisted of the owner, the employees and the student body. The student population was chosen because we were able to gain valuable insight on the improvements or recommendation on the business. Hence, the study was both explanatory and exploratory in nature since it enabled me to get wind of how stakeholders deemed

the business. The questionnaire distributed to the students was the ideal method for data collection as they were allowed to carry it home and contemplate so that meaningful responses would be submitted.

Outline of Research Procedure Activity Finalize objectives Develop questionnaire Administer questionnaire to sole trader Administer questionnaire to students Administer questionnaire to employees Analyse data Took out pictures Enter data into computer Submit to teacher Date 31st March, 1st April, 2009 15th March, 2009 17th March, 2009 17th March, 2009 19th March 14th, 15th, 16th, 17th April, 2009 13th April, 2009 17th, 18th April, 2009 19th April, 2009

Unit 1: Management Principles and Process

Module 1: Business and its Environment

General Objectives:

2. To understand how different business organizations function

Specific Objective:
2. To understand the nature/operation of a sole trader business.

3. To explain the importance of business objectives

The nature of sole trader business advantages, disadvantages Some of the advantages of a sole trader type of business are; the capital need to start the business is easily acquired, has few legal requirements and has total control over the operations of the business. Some of the disadvantages of the sole trader type of business are; the owner has unlimited liability and lack of funds to obtain sufficient capital.

To explain the importance of different business organizations The businesss long-term objective is to serve clean meals to all customers in a friendly manner. This objective would be achieved through Operational decisions, Tactical decisions and Strategic decisions. All workers have a say in the operation of the business to achieve the operational decisions. Ms. Williams is always in close contact with her customers so she does informal market research to determine the prices, which her customers might afford. Initially when the business started, it was difficult to estimate how

many meals to prepare however, with time she has learnt to sharpen her market research skills. The tactical decisions would be determined in conjunction with all members of staff. Purchasing of kitchen equipment e.g. deep fryer done through needs assessment in terms of time saving and based on market demand/ projected intake of students. To ensure that students are well informed of products and prices and to sustain demand in both the short term and long term distributor signs are posted in the caf. The strategic decisions are obtained with a backward linkage with a specific supplier ensures that vegetables and meat suppliers are purchased at one stabled price.

Analysis and Interpretation of Data J & A Caf is the simplest and most customary form of private sector businesses, a sole trader. Ms. Judy Williams is the owner and operator of the caf. Setting up as a sole trader is very straightforward. There are minimum legal

requirements needed in establishing a sole trader type of business however, sole traders do have many legal responsibilities once they have become established. One of the legal formalities required by Ms. Williams and her workers is the acquirement of food handlers permit from the Arima Borough Corporation. Sole traders must also comply with legislation aimed at business practise. For example, legally they must provide healthy and safe working conditions.

Advantages of the sole trader: She already has the relevant managerial skills. E.g. planning, organising, controlling and communicating. She is independent and free to make decisions After expenses are paid all the profit belongs to her. She is flexible to go home and make preparations because her husband stays to close the caf at 5 pm. She offers a personal service to customers. E.g. catering. She is free to take holidays when school is closed for Easter, summer and Christmas.

Disadvantages of the sole trader: She has unlimited liability. There is lack of sufficient collateral.

 If she prepares contaminated foodstuff she can be sued.

All businesses have objectives, whether they may be in the form of a sole trader or a large company. These are the goals of the organization such as the targets or outcomes that the business wants to achieve from it quotidian operations to its long-term operations. The overall aim and purpose of the enterprise is clearly defined in the mission statement in a qualitative term. It states, To serve clean and reasonable meals to all customers in a friendly manner. The goals of the business are divided into operational, tactical and strategic objectives. To achieve some of her operational objectives Ms. Williams incorporates a democratic leadership style in the operation of her business so that all of her worker has a form of involvement in the diurnal activities of the firm. To keep customers satisfied, she does her own unsanctioned investigation to ascertain economical prices as to which her customers can afford. To keep purchasers well informed, daily advertising is done around the caf area, noticeable to passers-by. The meal of the day is advertised on the kitchen door and the regular courses and price lists are on display in the caf to increase customer awareness.

The meal of the day advertised on the kitchen door

A price list of the available daily foodstuff

Additionally, leftover meals, initially prepared for the school population, have been decided to cater the needs for the YTEEP classes after school. The tactical objectives of the business are quantitative goals. They include purchasing of technological cooking equipment for the kitchen such as a deep fryer and lager freezers. With acquirement of these extra equipment, Ms. Williams can cut back on the time it takes to prepare the meals and increase the amount of goods

prepared for daily consumption. Another tactical objective is to make sure the prices are well informed as well as to sustain demand in the long and short term. Most importantly, her strategic objective is to maintain her backward linkage with a specific supplier of poultry and vegetables to ensure goods are purchased at a constant price despite price deviations, as a result of seasonal changes or paucity. Building such a relationship with a supplier is the key to affordability allowing Ms. Williams to maintain her constant prices. In turn, the supplier benefits form continual sales from the sole trader.

Unit 1 Module 2: The Management of People

General Objectives: 2. To understand the roles and responsibilities of employers an employees within an organisation 3. To develop an awareness of the effect of human motivation on organizational effectiveness

Specific Objective: 3. To explain the features of the formal organization structure 4. To explain the theories and practises of motivation

Features of the formal organizational structure All businesses need to organise their activities and appoint workers with specific roles and responsibilities. At J & A caf, each worker has a set of daily tasks to carry out so that all their objectives can be met effectively and efficiently. Although the organizational structure is simple, it is very helpful to organise the business into a number of clearly define sections. For example, Mr. Williams is the only other employee who can make payments to suppliers on behalf of the owner whereas the remaining employees can only carry out their specified task according to their position in the business.

Factors that stimulate and influence motivation Ms. Williams is has incorporated both financial and non-financial forms of human motivation in her business. As time goes by her workers receive a pay increase and she sponsors social event gathering such as family days for staff. They are also apart of the decision making processes within the operations. Their inputs are taken into careful consideration and then a mutual objective is established. Provision of a safe working environment is constantly, along with a family like atmosphere are some of the forms of motivation practises that are incorporation into Ms. Williams business to keep employees contented and enthused.

Analysis and Interpretation of Data Ms. Williams superintends the planning and arrangement of all the meals, she is in charge of all purchases from suppliers, payment of expenses, sourcing of

capital investment, recommencement of employees and acquisition of workers. Her span of control is narrow with four (4) subordinates under her authority. Her husband, Mr. Williams, is an assistant to her and his functions in the day-to-day running of the business are to aid in the buying and selling of goods and makes payments to suppliers on behalf of her. He also in charge of opening the caf at 6 am and closing at 5 pm to cover breakfast, lunch, and evening sales to students of the school and YTEEP students. The three (3) other employees are given the position caf and kitchen assistant.

The kitchen assistant, assisting in the preparation of the daily lunches.

Their main roles in the organization are very simple and straightforward. They assist in the caf sales at peak times such as break time and at lunch, lend a hand in the processing of the vegetables and packaging and labelling of ordered lunches. Luckily, all her worker came in with the relevant catering experience from their pervious job, so there was no need to train workers.

The following is diagram of the organizational chat:

According to Abraham Maslows hierarchy of needs, humans are motivated by multiple needs, and these needs exist in a hierarchical order. Maslow identified five (5) general types of motivating needs and they are physiological, safety, belongingness, esteem and self-actualization needs. Ms. Williams fulfils all these on-the-job needs to maintain job satisfaction, which in turn increases productivity.

Maslows Hierarchy of Needs:

Self-actualization needs. E.g. creativity, training Esteem needs. E.g. responsibility Belongingness needs. E.g. work groups Safety needs. E.g. safe work Physiological needs. E.g. base salary, air

Workers are compensated on a weekly basis and they receive just above the minimum wage bracket. Workers are remunerated for eight (8) hours a day, although they do not work the full eight hours. According to the owner, every two (2) years the workers receive salary increment as profitability increases. The kitchen and caf area are well ventilated to maintain a cool and relaxing working atmosphere. To sustain a safe operating environment, the kitchen, as well as the cafe is well fitted with strategically placed fire extinguishers and first aid kits. At J & A, caf workers experience a sense of belongingness as the owner try to make everyone feel like a family. Annually, Ms. Williams take her team on an all expenses paid outing or dinner to express her gratitude as an employer. In practise, this is seen as an effective motivational factor and has been working very well for the sole trader for the past ten (10) years. Within the organization, employees are given different levels of responsibility and recognition, as they are involved in the decision-making process.

Ms. Williams is not only concerned about profits as a businessperson, because she also sponsors meals to penurious students. This enables her to fulfil some level of self-actualization need according to Maslows hierarchy of needs.

Unit 1 Module 3: Business finance and Accounting

General Objectives:

1. To understand the roles and functions of finance in the business

Specific Objective: 1. To identify the main needs for funds and how such needs maybe met 2. To differentiate among the main sources of finance

Main need for funds in the business Finance was needed to purchase equipment for cooking and to disburse for the first term rent.

Analysis and Interpretation of Data The business was established in the year 2000 with a start up capital of just ten thousand dollars ($10,000). The initial capital was used in the acquisition of cooking equipment, pots, containers, utensils, a stove, a fridge and the payment of

the first month rent. The venture capital was acquired from a general savings account held by the owner. Money made from the weeks sales is deposited into the same savings account at a local bank for future investment. Payment of workers and operational expenses are funded with the cash make from daily sales. Rent is paid at the commencement of every term at an undisclosed amount to the school. The full rent is paid regardless of holiday time. It has been agreed that future investment in fixed capital is necessary to increase output, convenience and save time in preparation of meals. Some of the desired future investments include a freezer, a fry master, and a wider range of cooking utensils. Equipment purchase by the sole trader with the start up capital:

Presentation of data
Analysis and Interpretation of Data

This section contains the chats and diagrams to illustrate the results of surveys taken by the student population and employees of the organization. Results for market consumer satisfaction. research conducted with students to determine

Diagram 1: Percentage of students satisfied and unsatisfied with the number of meals offered at the caf:

Diagram 2: Percentage of students satisfied and unsatisfied with the taste of the meals at the caf:

Diagram 3: Percentage of students thinks that healthy choices are important:

Diagram 4: Percentage of students satisfied and unsatisfied with the level of customer service:

Results for market employee satisfaction.

research

conducted

with

workers

to

determine

Diagram 5: Number of workers who feel a part of the decision making process:
4 3 2 1 0
Satisfied Unsatisfied

Diagram 6: Number of workers that feel they can accomplish tasks within the given time frame given the current kitchen equipment:

Conclusion

J & A caf has proved itself very effective in setting its organizational goals because it has been able to circumvent any conflict among workers by including them in the decision-making process, maintaining sale levels by keep up demand, supplying the student population with a variety of meals and conducting market research to ensure customer satisfaction. By closely following her objectives, Ms. Williams can evaluate the performance of her business, which can assist her in making informed decisions. With reference to the data received, it has been understood that the secrets to success are: a high-quality relationship with workers, expressing a form of appreciation for work done and providing innocuous working conditions for employees. Her methods of management have proven to be extremely effective in delegating responsibility and increasing productivity. Over the years, Ms. Williams has been recoding significant amounts of profits therefore her methods of saving and spending has brought her into the success she is today. She is the intelligence behind the entire operation with a well effective and efficient team continuously able to meet the demands of the catering needs of the general public, and the student/teacher population of Arima Central Secondary.

Recommendations

Although her business has been successful, Ms. Williams, can provide healthier meals to ensure students and teachers receive a balanced diet. The headmaster can issue a calendar of events to her so that she can be aware of exam times. Around these times, there are fewer students at school and if properly notified, Ms. Williams can adjust her daily output of prepared meals to reduce wastage of food materials. Moreover, the sole trader can rework her mission statement to include the words healthy and clean. Although Ms. Williams has incorporated successful management principles, she can practice segregation of duties with the business. That is assigning specific functions to each employee. In this way, employees would have clear and distinct roles within the organization. Furthermore, the sole trader should ensure that personal relationships do not encumber production. For convenience and ease of mobility, she could consider future expenditure on a motor vehicle instead of paying a delivery van or depending on members of staff for the transportation of foodstuff and supplies. Ms. Williams can continue with her methods of saving and financing expenditure. Consideration can also be given to expand the businesss capital base in a money market fund or development corporation

Appendices

This section contains the questionnaires used to gather primary data taken by the student population and employees of the organization.

Questionnaire used in the interview with the sole trader: 1. What is the name of the business? 2. What is the ownership status of the business? 3. What type of business activities does your organization engage in? 4. How many years has the business been operating? 5. What is the business address? 6. How many branches does the business have? 7. What are the cafeteria hours? 8. What are the business long-term objectives? 9. How is this objective achieved? 10.What is the structure of the organization? 11.What are some of the duties for each of the positions held in the business?

12.When and how much do you pay workers? 13.What type of Safety procedures does the business have? 14.How do you motivate workers? 15.Do you sponsor events? 16.Do you train workers? 17.What was your starting capital? 18.How was your capital sourced? 19. What did you purchase with the venture capital? 20.What types of capital investment are you considering? 21.How do you fund your daily operations and pay workers?

Market Research questionnaire conducted with students to determine customer satisfaction.

1. Are you satisfied with the variety of meals offered at the school caf?

Yes

No

2. Are healthy choices important to you as a customer of the school caf? Yes No

3. Are you satisfied with the taste of the caf meals? Yes No

If you stated no to the above, could you make some suggestions as to what improvements could be made. ____________________________________________________________

4. Are you satisfied with the level of customer service at the cafeteria? Yes No If no to the question above could you state why.

Market Research conducted with workers.

1. Do you feel that the owner includes you in the decision making process at work? Yes No

If no, please explain _______________________________________________________________________

why.

2. Do you feel that you can adequately accomplish your task within the given time frame given the current equipment in the kitchen?

Yes

No

Bibliography
Dave Hall, Rob Jones, Carlo Raffo. Business Studies.

Bruce R Jewell. An Integrated Approach to Business Studies 4th Edition.

Susan Hammond. Business Studies 3rd Edition.

Encarta Encyclopaedia 2007.