CXC

PRINCIPLE OF BUSINESS

SCHOOL BASED ASSESMENT

NAME: Sue -Tannia HibbertCENTER NUMBER: 100068

SCHOOL: Manning’s SchoolTERRITORY: JamaicaREGISTRATION NUMBER:

TEACHER: Ms. R. Williams

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Divine Jewels Production

LOGO: --

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SLOGAN: GIVING YOU THE BEST QUALITY.

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Divine JewelsProduction

“giving you the best

TABLE OF CONTENT

INTRODUCTION

DESCRIPTION OF BUSINESS

JUSTIFICATION OF LOCATION

SELECTION OF APPROPRIATE LABOUR

SOURCES OF FIXED AND WORKING CAPITAL

ROLE OF THE ENTRAPRENEUR

TYPE OF PRODUCTION

LEVELS OF PRODUCTION

QUALITY CONTROL MEASURES

USE OF TECHNOLOGY

LINKAGES

POTENTIAL FOR GROWTH

GOVERNMENT REGULATIONS

ETHICAL ISSUES

BIBLIOGRAPHY

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DESCRIPTION OF BUSINESS

TYPE OF BUSINESS:Divine Jewels will be a sole proprietorship business owned and operated by Ms. Sue- Tannia Hibbert. It will be located at 26 and a half Railway Lane, Ocho Rios, St. Ann

NATURE OF BUSINESSIt will be a business concerned with the production of jewels such as watches, wedding rings, earrings, bracelets, chains, and all different types of similar jewels, made/engraved with rare gems such as diamonds, silver, ruby, gold e.t.c…

OBJECTIVE /MISSION STATEMENTThe business objectives will be:

1: to make a profit through the sale of jewels.

2: to create employment by employing persons in the community who are qualified/suitable for a designated area in the business.

3: To produce quality jewels made by Jamaicans, for Jamaicans, and the world.

Mission statement:

Divine Jewels’ ultimate goal is to become the most sought- after jewel production business in Jamaica, then the Region.

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JUSTIFICATION OF LOCATION

STATE LOCATIONDivine Jewels will be located at 26 and a half Railway Lane, Ocho Rios, St. Ann

THREE (3) REASONS TO JUSTIFY LOCATION

There will be more opportunities available to the business for an increase in the amount of people who will become customers and loyal supporters of the business.

Land space: there will be availability of sufficient land for this prospective business at an economically viable price. It’s location will be suitable, in order to attract business.

Market pull: the location of this prospective business will be attracted to sites close to where potential customers can be found.

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SELECTION OF APPROPRIATE LABOR

TYPE OF LABOR NECESSARY Divine Jewels will be in need of skilled workers.

NUMBER OF PERSONS TO BE EMPLOYED AND THEIR DUTIES AND FUNCTIONS

Divine Jewels will be employing 10 (ten) workers for the business. These individuals will be employed to work in different areas of the business which will be:

Jewelry Appraisers- carefully examine jewelry to determine its value and write appraisal documents.

Gemologists- analyze, describe and certify the quality and characteristics of gemstones.

Jewelers- design, produce and sell jewelry. Also appraise, examine and compute the cost of labor and material for production purposes.

Production Manager- supervise the production and its process, so that quality products are produced. Also responsible for the marketing of the product.

Owner- owns the business.

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OUTLINE ONE REASON WHY THIS TYPE OF LABOR IS NECESSARY

Skilled labor will be necessary, because in order for the business to operate to its full capacity, the workers will be required to have a high level of training combined with expertise and experience.

Organizational chart for Divine Jewels

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SOURCES OF FIXED AND WORKING CAPITAL

IDENTIFY SOURCES OF FIXED CAPITAL AND GIVE EXAMPLES

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3rd rank

2nd rank

1st rank Owner

Plant Supervi

sor

Gemologist

Jewelry Apprais

er

Jewelers

Production

Assistant

Fixed capital will be sourced from the National Commercial Bank (NCB) in the form of a loan of 1.5 million dollars. The security that will be used to obtain this loan will be a Land title. The money received will be used to purchase special equipments and machineries, such as computerized tools that will be necessary for the production of jewels.

IDENTIFY SOURCES OF WORKING CAPITAL AND GIVE EXAMPLES

The working capital will be sourced from the use if $500,000 from personal savings, and a percentage of the bank loan acquired for fixed assets. The working capital will be used for:

The purchasing of raw materials for production.

The payment of salaries.

Payment of utilities, such as: water and electricity bills.

ROLE OF THE ENTREPRENEUR

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DEFINE THE ROLE OF THE ENTREPRENEUR

The role of the entrepreneur is to show vision and creativity, taking the financial risk of starting and managing a new business venture. The entrepreneur’s role will enable him/her to direct, improve and ensure employees are trained.

OUTLINE THREE FUNCTIONS OF THE ENTREPRENEUR

As an entrepreneur, he/she should be able to monitor and control all the aspects of he business from production t0 service and quality check. Three functions include:

Planning- this is the first stage of management. The entrepreneur of Divine Jewels will responsible for setting goals, deciding on resources needed, and the time line to meet these objectives.

Organizing- The entrepreneur of this prospective business will also be responsible for bringing together all the resources needed, in order to provide quality jewels.

Evaluating- The entrepreneur of this prospective business will also be responsible for accessing output based on objectives set to determine how well they were met, and what steps can be taken to improve performance in the future.

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TYPE OF PRODUCTION

IDENTIFY THE TYPE OF PRODUCTION

Divine Jewels will be involved in secondary production. This means that the business will be offering a service.

DESCRIBE THE TYPE OF PRODUCTION

Secondary production consists of manufacturing and constructing industries. These industries take raw materials obtained by the primary (extractive) industry and convert them into finished products. Divine Jewels will be using both industries.

LEVELS OF PRODUCTION11

IDENTIFY THE LEVEL OF PRODUCTION

The level of production for Divine Jewels will be domestic production.

DESCRIBE THE LEVEL OF PRODUCTION

Domestic production means that the consumption of goods and services in the business is solely dependent upon what can be produced within the business, and will also provide a mean of employment and self – sufficiency which helps to conserve the business’s foreign currency reserve for import of other products.

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QUALITY CONTROL MEASURES

DESCRIBE TWO QUALITY- CONTROL MEASURES THE BUSINESS SHOULD ADHERE TO:

Employ people who are skilled individuals with knowledge and experience in the industry.

Ensure that the products being sold are of good quality, so that customers can get value for their money. This would encourage them to support the business and become loyal customers.

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USE OF TECHNOLOGY

IDENTIFY TWO TYPES OF TECHNOLOGY USED

Divine Jewels will be utilizing computers as a type of technology. Computers will enhance the efficiency of the business because it allows information to be presentable and easily put together.

Technology is helping to produce high – quality jewelry at a reduced cost in less time. Divine Jewels will be used for cutting and improving the quality and appearance of jewelry.

Divine Jewels will also be adapting the computer aided design programming and computer aided manufacturing. (CAM/CAD)

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LINKAGES

STATE THE TYPE OF LINKAGE TO BE DERIVED FROM THE BUSINESS

The linkage that will be derived from the business will be backward linkage. This type of linkage comes about when the demand of a particular industry, leads to the formation of another.

OUTLINE ONE BENEFIT OF THAT TYPE OF LINKAGE

One benefit of the backward linkage is that employment opportunities will be increased as there will be more positions available in the business to be filled by citizens.

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POTENTIAL FOR GROWTH

EXPLAIN POTENTIAL FOR GROWTH INTERNALLY AND EXTERNALLY

It is the proprietor’s expectation that Divine Jewels will achieve great success in the future. We also intend to employ more persons and purchase more machinery and office equipment. We expect the work force to be increased by 30% in the next 2-3 years; which will contribute to growth internally.

For external growth, we intend to make our company well known over seas and the rest of the Caribbean by forming multinational companies. It is also expected that there will be a great infrastructural expansion within the next 2-4 years.

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DIAGRAM SHOWING POTENTIAL FOR GROWTH OVER A 4(FOUR) YEARDIAGRAM SHOWING POTENTIAL FOR GROWTH OVER A 4(FOUR) YEAR PERIOD.PERIOD.

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Year 1

Year 2

Year 3

Year 4

0 2 4 6 8 10 12 14 16 18

GOVERNMENT REGULATIONS

IDENTIFY GOVERNMENT REGULATIONS THAT IMPACT ON THE BUSINESS

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The regulatory practices governing the established of businesses refers to the rules and regulations by which persons who wish to establish a business should be guided. Divine Jewels 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 the business.

Divine Jewels will be in need of two things:

Copyright License – This is the exclusive right to publish or record a work. If a company publishes another company’s work without permission, the owner could be charged for copyright infringement or plagiarism.

Certificate of Registration – This shows that the company is operating legally and the entrepreneur will not be fined or imprisoned for illegal operations. This also prevents termination of the business.

ETHICAL ISSUES

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DISCUSS ONE ETHICAL ISSUE RELATING TO PRODUCTION AND HOW IT IMPACTS ON THE BUSINESS

Ethical issues which are related to production in the business are transactions between the organizations and the environment that leads to pollution, global warming, increase in water toxicity and diminishing natural resources. Observing laws that prevent pollution in any form will affect the business in a positive way as it helps the business to stay in line with how we deal with our waste. The way in which the business disposes of waste could cause pollution and global warming, which is harmful to our environment.

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BIBLIOGRAPHY

Caribexams.org

https:// collegegrad.com/careers/jewelers-and-precious-stone-and-metal-workers

CXC Principles of Business with SBA, Study Guide and Exercises (Robinson Karlene and Sybile Hamil)

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INTRODUCTIONInside this S.B.A, you will see the entrepreneur’s plans and objectives for her prospective business - Divine Jewels. You will also find information on the description of the business, its location, how capital will be obtained, roles and functions of the entrepreneur, and other necessities required for the business to commence operation. 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.

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