SCHOOL BASED

ASSESSMENT
PRINCIPLES OF BUSINESS
YEAR 2017

NAME OF CANDIDATE: ANN MARIE KHADOO

NAME OF SCHOOL: SARASWATI VIDYA
NIKETAN
REGISTRATION #:
CENTRE #: 090100
A PIECE OF CAKE
TABLE OF CONTENT
INTRODUCTION

DESCRIPTION OF THE BUSINESS

JUSTIFICATION OF LOCATION

SELECTION OF APPROPRIATE LABOUR

SOURCES OF FIXED AND WORKING CAPITAL

ROLES OF THE ENTREPRENEUR

TYPES OF PRODUCTION

LEVELS OF PRODUCTION

QUALITY CONTROL MEASURES

USE OF TECHNOLOGY

LINKAGES

POTENTIAL FOR GROWTH

GOVERNMENT REGULATIONS

ETHICAL ISSUES

CONCLUSION

BIBLIOGRAPHY
INTRODUCTION

A Piece of Cake will be the name of the business that the researcher wishes to set up in the
future. The business will be producing different kinds and flavors of cakes. The reason for setting
up this business will be because there are no bakeries in the area where it will be setting up.
There will be a friendly atmosphere and the business will be able to make a profit.
DESCRIPTION OF THE BUSINESS

The proposed name for the business that will be set up is A Piece of Cake. The type of
business the researcher will undertake is a sole trader or sole proprietor. A sole trader is a
business in which one person provides the permanent finance and has full control over the
business.

The major activities that would be carried out would be getting the raw products to bake and
to sell it to the various customers. The business would be selling both wholesale and retail cakes
to its customers.

The mission statement for the business, A Piece of Cake will be To produce quality bakery
products cost effectively; in an environment that is safe, clean and friendly for our employees
and community. The main aims or objectives of this business will be to create a friendly
relationship with the customers, to provide employment to persons in the community, illustrate
advanced classical and contemporary pastry and to provide the best quality items to the
customers.

There will be many different kinds of cakes that will be selling. These cakes will vary from
chocolate cake to red velvet cake to black forest cake, lemon cake, chocolate chip cake, angel
cake, butter cake, peanut butter cake and many, many more.
JUSTIFICATION OF LOCATION

A Piece of Cake will be located at 17-A-Anna Catherina West Coast Demerara at the Public
Road.

The reason why the researcher will locate the business in this area is because the area is very
spacious and not too crowded. This will allow the business to expand in the future. The area is
suitable because it is calm and comfortable.

Three relevant reasons for opening the business in this location will be, firstly, to reduce
unemployment in this area. Since this is the countryside, there is lots of unemployment, so this
business will be able to reduce the unemployment problems. Persons will be employed because
of the business that will be set up in this area.

The second reason for setting up the business in this area will be, because of transportation.
The reason why is because the business will be at the public road and so the goods and services
will be reachable. Goods will be easily being transported to and from the business. The business
will also be able to fulfill its services towards the community. The cost of transportation will also
reduce long distances, and also the roads in this area are well kept.

The third reason for setting up the business in this area will be, because of proper facilities
such as health centres, power and water supplies. The business will be able to benefit from the
good health facilities. This will keep the work force healthy and capable of effective work. The
power in this area is very reliable and the cost is low and so the business will be able to use
electricity without fear of blackouts and very high costs. The water supply in this area is fresh
and very clean. This will be needed for healthy living. Since the business will be a bakery, the
water in this area will be used and since it is very clean it will not be able to affect the business in
any way.
SELECTION OF APPROPRIATE LABOUR

The type of labor that the business will need would be semi-skilled, unskilled and skilled
workers.

The number of workers that will be employed will be 20 employees. This number of workers
will be suitable for a new business since it is not as large as yet and relatively new.

There will be two purchasing clerks, who will be in charge of buying all the raw materials and
supplies to make the cake. There will be two managers whose job will be to make sure that all
the workers complete their jobs and to make sure everything will be in good condition and
instructions are followed. There will also be two accountants who will be in charge pf the
businesss finance. They will be in charge of getting the funds and to pay each of the workers
fairly. The accountants will be able to project if the business will make a profit or a loss. The
most important workers of all will be the bakers. There will be eight bakers in this business and
their job is mainly to bake, decorate and package the cakes that will be for sale. There will also
be two sales clerks who will be in charge of selling the produce for the business. Lastly there will
be two cleaners who will keep the entire business clean and tidy especially the bakery
department.

All the workers will be important because they will make the business a success because they
will be able to maintain it.

ORGANISATIONAL CHART

ENTREPRENEUR

MANAGER

ACCOUNTANT BAKERS PURCHASING CLERK SALES CLERK CLEANER

SOURCES OF FIXED AND WORKING CAPITAL

The difference between fixed an working capital is that, fixed capital is defined as the part of
the total capital of the enterprise which is invested in long term assets, while working capital
refers to the capital which is used to perform day to day business operations.

The source of the startup capital will be a government grant. This will be given by the state to
be used to set up the business. The reason for using this is because these grants are not expected
to be repaid by the recipient unlike bank loans

Some sources of working capital will be obtained through the sales of the produce, loans from
the family members and bank overdrafts.

The researcher will obtain its fixed capital through profits made from the business, loans from
the bank and personal savings.

Some suppliers of fixed capital ovens and stoves which will be bought from Singers Ltd,
tables and chairs from Courts, cooling racks from Gafoors, counter tops and cupboards from
Fibre Tech Ltd, show cases from Gafoors and lastly, utensils from Singers Ltd.
ROLES OF THE ENTREPRENEUR

An entrepreneur is an individual who, rather than working as an employee, runs a small

business and assumes all the risks and reward of a given business venture, idea or good or
services offered for sale. The entrepreneur is commonly seen as a business leader and innovator
of new ideas and business processes.

The first role of an entrepreneur will be that he should be flexible and multi skilled. An
entrepreneur will have to make the product, promote it, sell it and keep account of it. These
different tasks require a person who has many different qualities.

The second role of an entrepreneur will be that he should be creative and innovative. They
must be able to create a new niche in the market, attract consumers in Innovative ways and
present their business as being different from others in the same market.

The third role of the entrepreneur is that he should be willing to take calculated risks.
Entrepreneurs must be willing to take up risks in order to see results.
TYPES OF PRODUCTION

The types of production are primary, secondary and tertiary production. Primary production is
getting the raw materials; secondary production is the act of converting that raw product into a
new product while tertiary production is the new finished product.

The business will be both secondary and tertiary production. The business will not be primary
production because it does not produce its own raw materials. It buys its raw materials from
suppliers. The secondary production will be using the raw products like flour, sugar and yeast to
make the cakes. The tertiary production will be the finished product, which would be the
packaged cakes for sale.
LEVELS OF PRODUCTION

There are three main levels of production. There are subsistence production, domestic
production and surplus production. Subsistence production is the level of production just
sufficient to meet the basic needs of a countrys population. Domestic production is all products
produced for local use, mainly from local resources; also known as local production. Surplus
production is when a countrys resources allow production levels to exceed domestic
consumption levels, allowing the surplus to be exported.

In this business there will be 20 employees and the value of stocks that will be in this business
will be an estimated5 million with this small amount of employees and not a very large value of
stocks, the business will be of a small scale.

The level of production the business will be engaged in will be domestic production because
all the products will be produced for local use.
QUALITY CONTROL MEASURES

Two quality control measures that the business will keep in order to try assure the quality of
the product will be setting up cameras and by stationing managers at each stage of production.

By setting up cameras, the researcher will be able to monitor the workers from one area. The
researcher will be able to see if everything is going smoothly and according to plan.

By stationing managers in each stage of production, they would be able to control the
workers. The manager will be able to correct them if they went wrong and also to make sure that
everything is under control.
USE OF TECHNOLOGY

Two technologies that will be used would be computers in the marketing and accounting
departments and machinery in the production department.

The use of technology in production would enhance the efficiency of the business because it
would allow the company to make lea errors since there will be computers. Overall it will allow
the business to be better in many ways.

Some advantages of using technology will be it will save time. Instead of having persons
working very late, with machines this saving time. With computers, the researcher will be able to
keep records, undertake secondary market research, typing letters and making orders. With the
use of computers, it will make work easier. Technology will also save labor from working in the
business. With less labor it will reduce labor cost and also with machines, there will be better
production.
LINKAGES

A linkage industry is an industry that is connected to another because it provides supplies for
it or is a market for its finished product. There are two types of linkages, forward linkage and
backward linkage.

The type of linkage the business will be based on will be backward linkage. Backward linkage
is when the demand of one industry leads to the development of another industry.

One benefit of this type of linkage is that it will allow the industry that is supplying the new
business to develop because of the demands of that business. In this way both industries will
develop, the new business will be able to expand because of its demands and the other industry
will also be able to develop.
POTENTIAL FOR GROWTH

The researcher will plan to expand the business both externally and internally.

For an internal expansion, there will be more employees, more departments and even new
products. With more employees to work the machines, there will be more efficiency, this will
allow the business to get more machines and so with more workers it will allow the business to
expand. With more departments the business will be able to operate more effectively. With more
departments focusing on their particular task, the business will be able to work more effectively
and thus the business will be able to expand. With new products the business will be able to
make more sales and thus there will be more profits. With more profits, the researcher will be
able to invest it into the business and thus expanding it

For an external expansion there will be the opening of franchise. A franchise is a business that
uses the name, logo and trade systems of an existing successful business with franchises around
the country and even further the business will be able to expand drastically. There will be more
profits which will be invested into the business to expand internally.
GOVERNMENT REGULATIONS

For a business like a bakery to open, the researcher will have to obtain a special license before
the operation of the business can operate.

Grants and tax incentives may be offered to act as an incentive to locate in a particular area
and also help a business but to pay these taxes are very costly. A business will have to pay huge
sums of tax which can affect the business in a negative way

Tax can be a good thing as well as a bad thing. The good thing about paying tax is that it will
help to develop the country. The government will be able to help new businesses with grants.

The bad thing about paying tax is that it can cause reduction in a business profit. Employees
will also have a reduction in their wages since taxes are taken out of it.
ETHICAL ISSUES

One ethical practice will be the quality of the product. The product must always be of best and
standard quality since it wants to attract its customers. If the quality of the product is of a very
low standard the customers will not want to buy such a low quality. Consumers will want to buy
something of a high quality and not of a low one. With low quality goods, it can bring a name to
the business. Workers might not want to work for the business because it is making a low
standard good.
CONCLUSION

The School Based Assignment has been successfully completed by the researcher and sufficient
knowledge was required during this project in setting up a business.
BIBLIOGRAPHY

PRINCIPLES OF BUSINESS FOR CSEC BY:

JANICE LATTY-MORRISON

DEBRA SAMIAL HAMLEE

YVONNE HARVEY

PETER STIMPSON