ABSTRACT

The purpose of this assignment is to gain practical experience in business by applying the

concepts, principles, procedures and methods learnt in the Principles of Business course

to establishing your own business. This is referred to as a School Based Assessment

(S.B.A) and is important because it also allows you to gain 20% of the overall

examination mark.

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ACKNOWLEDGEMENT

Firstly, I would like to thank GOD for life, health and strength. Secondly, I would like to

thank my entire family for all their love and support, and last but certainly not least my

Principles of Business teacher Mr. Maharaj for all his time and encouragement.

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AIM

The aim of the business is to produce a high quality product for its customers, and as a

result make a profit.

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DESCRIPTION OF BUSINESS

The name of the business is Just Jewelz. The business is a sole trader form of business

and is therefore owned and operated by Tenecia Jules.

The small business, Just Jewelz is located on #64 Ariapita Avenue Woodbrook and deals

with the production of fashion jewellery (e.g. beaded necklaces, earrings, bracelets etc.)

to satisfy the wants and in some cases the needs of persons.

Just Jewelz main objective is to produce top quality goods for its customers and will

achieve this with the assistance of qualified persons who will be employed to fulfil the

necessary requirements of the business.

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JUSTIFICATION OF LOCATION

Just Jewelz is located on #64 Ariapita Avenue Woodbrook. It is the chosen location

because it is a well known place in Trinidad where business is conducted on a regular

basis.

This is said to be an ideal location for the business because of the availability of land i.e.

suitable and enough land is available in that area for economically viable prices. There is

also the availability of appropriate labour and good access to raw materials.

Market pull also has an influence on the location of the premises because, Ariapita

Avenue Woodbrook is a place where a lot of potential customers can be found and as a

result contributes to the success of the business (profits). In addition, there is proper

infrastructure (e.g. good roads, good building foundations and proper drainage conditions

etc.) and good transportation access for the distribution of goods and movement of raw

materials.

Lastly, there are a lot of linkage industries i.e. Just Jewelz is located near other businesses

on which it depends and vice versa.

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SELECTION OF APPROPRIATE LABOUR

Just Jewelz will be interested in employing a total of ten (10) persons: 2 Administrative

and 8 Skilled to meet the required needs of the business. These ten (10) persons will

include a supervisor with a degree in Business Management. This supervisor will be

responsible for ensuring that the business is functioning smoothly by analysing and

overlooking its performance in the absence of the owner Tenecia Jules. A financial

advisor with a degree in Accounting, who will be responsible for making account of

everyday transactions of the business and also maintain its financial stability. In addition,

eight (8) artistic and creative jewellers with good crafting skills will be employed to

create the exclusive fashion jewels for the business. These types of labour are important,

because it helps the business maintain its high performance standards.

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SOURCES OF FIXED AND WORKING CAPITAL

The business Just Jewelz will obtain its total capital of $60,000 by using the personal

savings of its owner Tenecia Jules ($10,000), and the money she inherited from her

beloved grandfather James Milford who passed away a year ago ($50,000).

The sources of fixed capital in the business are those durable (long-term) assets of the

business which are used over a long period of time; for instance; land (e.g. the location:

#64 Ariapita Avenue Woodbrook), buildings, machinery (e.g. packaging cutters and

knitting machines) which will be obtain on line from Amazon and vehicles which will be

bought at Massy (e.g. the stock distribution vehicles and the vehicle used to transport raw

materials).

Its sources of working capital are those items required for the day-to-day operations of

the business and continually change in quantity, total, value or nature. Some of these

include stocks (e.g. necklaces, bracelets, earrings etc.), cash (e.g. petty cash used to

purchase stuff on a daily basis like lunch for employees or the daily newspapers) and raw

materials (e.g. beads, jewellery fasteners, twine etc.) Raw materials will be sourced

online via a sky box from Amazon and other online retailers.

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ROLE OF THE ENTREPRENEUR

The business owner, Tenecia Jules, also known as the entrepreneur of the business, takes

the risk and brings together the factors of production in an attempt to maximise profit.

She will also invest capital, personal assets and time into the business.

In addition to all this she will organise the factors of production in the most efficient

manner so as to obtain the most amount of rewards from them. The owner, Tenecia Jules

must also be able to perform all the necessary functions as the entrepreneur. Some of

these functions include: organising the various levels of labour required; defining and

clarifying business policy decisions so that all personnel’s can understand what the

business is trying to achieve; and last but not least make necessary changes to further

grow and develop the business.

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TYPE OF PRODUCTION

Just Jewelz is involved in Secondary Production. This means that it is involved in

manufacturing and therefore uses primary resources (e.g. beads & twine) which is later

converted into an item people can use ( e.g. fashion earrings, chains & bangles)

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LEVELS OF PRODUCTION

The business Just Jewelz produces on a domestic level. This means that all its goods are

produced locally for the local or domestic market.

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QUALITY CONTROL MEASURES

As the owner of the business, Tenecia Jules will ensure that all potential customers

receive the highest quality goods. She will achieve this by using quality raw materials in

the production of the businesses goods, and conduct random checks of goods on a daily

basis to ensure that all is good and well. In addition to that, she will work side by side

with the employees of the business to ensure that they are maintaining their high working

standards to produce quality goods.

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USE OF TECHNOLOGY

Due to modern technology, there is an increase in automated methods and strategies

being adopted by organisations involved in the production process (e.g. Just Jewelz).

Even though Just Jewelz is a small business, there is still need for the use of labour

saving machines and automation.

One of the most important automation used in the business is the computer. This handles

database, spreadsheets and operates as a word processor. It has a highly developed

hardware and software system which helps carry out various functions in the business,

like, updating stock records and maintaining records of customer’s accounts.

It also has a Computer- Aided- Manufacturing (C.A.M) system which controls

manufacturing processes (e.g. the electronic knitting machines and the packaging

cutters).

Another type of technology used is barcodes. Barcodes are a set of parallel lines and

spaces of varying thickness used on labels of products. It is used to help speed up the

recording of product sales in the business on the computer. Other technological devices

used in the business are cash registers, electronic stencils to create unique designs and a

security system to keep the outlet safe when work is not in progress.

Using technology in the workplace enhances the efficiency of the business in such a way

that it saves time and energy used to do work manually. This time and effort saved can

now be put into doing something more productive. Furthermore, it increases production,

and efficient use of raw materials, which is reflected in increase profits.

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LINKAGES

Both forward and backward linkages can be obtained in the production of fashion

jewellery i.e. Just Jewelz will be one of several small businesses that provide connectivity

between the various types of production.

Its backward linkages include all those factories and retailed outlets that extract the raw

materials needed for the manufacturing of Just Jewelzs’ final product. These industries

are important to the business because they are the industries from which Just Jewelz gets

its raw materials. However, its forward linkages will be all the stores (e.g. wonderful

world & accessory planet) that will intern use Just Jewelz finish product (fashion jewels)

as their raw materials. These forward linkages will benefit the business in such a way that

it helps the business achieve one of its main goals which is making a profit.

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POTENTIAL FOR GROWTH

Just Jewelz is a small business that has the ability to develop into a big business both

internally and externally.

It plans to expand internally by continuing to produce the same product it has been

producing (fashion jewellery), but for a different market i.e. Jus Jewelz will not only

produce goods for the local market but for the overseas market as well.

It plans to expand externally by starting to produce fashionable handbags using similar

techniques that were used in producing the fashion jewels. The business also plans to

extend along the chain of production and take on the selling of its products via the

opening of its own store named F.A.B.B (fashion and bling bling).

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GOVERNMENT REGULATIONS

Governmental roles and responsibilities impact fully on the business Just Jewelz. Some

of these roles and regulations include the maintenance of the economy i.e. achieving high

levels of production (e.g. via linkage industries like Just Jewelz) and encouraging

economic growth through sound productivity.

Also, by adhering to laws which ensure that the business operate within the law, pay

taxes, pay N.I.S and has all its documents like being registered with the registrar of

companies, being V.A.T registered and being registered with the board of inland revenue.

All these roles and regulations conducted by government have a good impact on the

business because it influences, and ensures that the business is operating well to assist

with economic development through taxation, and ensure that the business is not

exploiting customers which can result in giving the business a bad name.

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ETHICAL ISSUES

Being the owner of the business, Tenecia Jules must ensure that her business is conducted

and operated in the right manner.

She will see to this by operating her business within the law; paying all taxes on time;

using quality raw materials which intern produces quality goods; and ensure that the

product being produced is environmentally friendly.

Furthermore, she will ensure that customers receive fair prices for products and also

ensure that employees have a safe working environment. By doing all this the business

will maintain its high standards, continue attracting customers and fulfill its

responsibilities to society, the environment and itself.

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