1. PRINCIPLES OF BUSINESS
S.B.A
PROJECT TITLE- PRODUCTION
NAME OF STUDENT –LEROY WALKER
NAME OF TEACHER-
SCHOOL-
FORM- 5 GENERAL
DATE DUE-
2. TABLE OF CONTENTS
• DESCRIPTION OF BUSINESS
• JUSTIFCATION OF LOCATION
• SELECTION OF APPROPRIATE LABOUR
• SOURCES OF FIXED AND WOKING CAPITAL
• ROLE OF ENTRUPRENUR
• TYPE OF PRODUCTION
• LEVEL OF PRODUCTION
• GOVERNMENT RUGULATION
• QUALITY CONTROLL MEASURES
• USE OF TECHNOLOGY
• POTENTIAL FOR GROWTH
3. SECTION # 1
Description of business
The type of business we are involved in is the candy
business Lush’s luscious candy. This type of business is of
partnership type. Lush’s luscious candy is targeting the regional
market and is for both adults and kids of all ages. Our mission
statement is to provide a low calorie but sweetened candy that will
satisfy the taste buds of our valued customers. This business is
owned and operated by Lushard King & Danroy Connell, we were
2007 and still running, our contacts are as follows: Email-
jayzwalkerhotmail.com ,telephone:-4540243
Our opening hours are as follows: Monday – Thursday: 8:30 to
4:30. Fridays 8:30-5:30 and on Saturdays- 9:00-3:30.
4. SECTION # 2
Justification of location
Lush’s luscious candy is located in Kingstown opposite the wharf.
We are located in this vicinity for three reasons for market pull, for
customers going to and from mainland St.Vincent or tourist
exploring the island is in this area, the area is filled with people
and where people can be found so we settled here.
Transport access, we also chose this area because it is close to the
wharf so we can save money on transporting goods from a far
distance to ship to other islands so it is cheaper for import & export
of goods and raw materials.
For linkage industries, in this area other than the wharf we also
have help in getting sugar from a nearby business who sells goods
by wholesale.
5. SECTION # 3
Selection of appropriate labor
Lush’s luscious candy has approximately 70 workers. We have 2
skilled workers, 35 semiskilled and 10 unskilled. The skilled
workers are as follows:
We have ten (10) machine workers who control the machines
creating the candy. Ten (10) ingredient mixers who create a new
taste for the candy and also new types of candy. The business also
has an accountant who keeps track of daily transactions of money,
an executive, and two heads of department one for the skilled and
the other for the semi-skilled.
The semi-skilled workers are consisted of: the truck operators the
company has 5 trucks with two with two workers each one driving
and the other to load and unload goods giving us a total of 10 truck
operators. We also have 15 ingredient workers who load the
machines with ingredients for operators.
The unskilled are the 10 janitors who clean the building. The
reason for choosing this labor force is because it is suitable for this
business.
6. SECTION # 4
Sources of fixed or working capital
Fixed capitals are machinery and other things in the business that
long life which are used over and over in the production of goods
and services in a business. Fixed capital in this business are:
trucks, the building, machinery and other equipments.
The trucks are used to transport goods (candy) from the factory for
sale in and around the island.
The building is used for or to facilitate the machinery and workers
to produce the goods.
Machinery is used to help create a finished product of the candy.
Working capital is defined as raw material, money and other items
that are used up in the day to day running of the business or the
goods that are constantly being used up in the business in its daily
operations. E.g. money, sugar coloring.
7. SECTION # 5
Role the entrepreneur
Lush’s luscious candy is owned by Lushard King & Danroy
Connell.
Entrepreneur is/are persons who organize and coordinate factors of
production. They take risk and make decisions and carry out
productions.
Three roles of these personnel are:
To make the necessary changes to help the business to expand both
internally and externally.
In expanding the business these persons have to organize the levels
of labor suitable for it.
Predict what type of candy he/she thinks is needed to produce for
the public.
8. SECTION # 6
Type of production
Lush’s luscious candy is involved in the secondary production.
Secondary production is where raw materials are extracted from
the Earth and is made into a finished good or products.
We are involved in this type of production because we take or
obtain raw materials from other businesses and create the candy
therefore we are involved in secondary production.
9. SECTION # 7
LEVEL OF PRODUCTION
Lush’s luscious candy is involved in the surplus level of
production.
A surplus is an amount of goods produced at a greater amount
needed or having a wide variety of goods that is produced for
selling or trading it is produce not only to satisfy the domestic
wants but also to satisfy other countries.
This candy business produces candy locally but we have grown in
business so we chose not only to produce for local consumption
but to provide for other countries thus elevated us to the surplus
level.
10. SECTION # 8
Government regulations
Lush’s luscious candy is huge business that is obligated to pay
taxes because the more profit we make the more tax we are
obligated to pay therefore putting a strain on our business.
We also have to govern our business with the articles of
association and the memorandum of association to govern the
internal and external aspects of the company.
11. SECTION # 9
Quality control measures
Lush’s luscious candy produces a top class low calorie candy. Two
quality low control measures we practice are: to have a health
specialist to come in once a week to check the machines and the
building to make sure they are proper to create the candy.
We also have to have the candy taste tested by some specialist after
production.
12. SECTION # 10
Use of technology
Two types of technology that is in the business are:
The computers and the candy mixer.
The computers are mainly use by the accountants to store
information for the future use and information on the daily
transactions in the business.
The candy mixer is use by the skilled workers after ingredient is
added into the chamber. This machine blends them together like
cake batter for the other machine to finish its work.
13. SECTION # 11
Potential for growth
Lush’s luscious candy can grow both internally and externally.
Two ways in which we can grow internally are:
Upgrading with new and improved candy machinery.
We can get more skilled workers to operate the machines.
To expand externally we can open new branches in the rural areas
around the island.
We can also merge with a larger and well known company in the
island or regional area thus increasing profits and customers.