CARIBBEAN EXAMINATION COUNCIL

SCHOOL BASED ASSESSMENT (SBA)

PRINCIPLES OF BUSINESS

NAME:
KHIMRAN SURJAN

CANDIDATE NUMBER:

CENTRE NUMBER:

TEACHER:
MRS. KAVITA PARTAP

SCHOOL:
CTS COLLEGE OF BUSINESS AND
COMPUTER SCIENCE LTD

TERRITORY
TRINIDAD AND TOBAGO

YEAR OF SBA:
2015
Contents Page
Description of Business 3

Justification of Location 4

Selection of Appropriate Labour 5

Sources of Fixed and Working Capital 6

Potential For Growth 7

Role of the Entrepreneur 8

Type of Production 9

Levels of Production 10

Quality Control Measures 11

Use of Technology 12

Linkages 13

Potential For Growth 14

Government Regulations 15

Ethical Issues 16

Description of Business
Mystique Restaurant will be operated as a sole proprietorship. In Trinidad and Tobago, a
sole trader must, by law obtain all forms, name search and name reservation, collect the name
reservation document, complete registration process and collect the registration certificate. The
business will engage in providing spectacular meals, delectable pastries and fulfilling beverages.
In addition, the business will execute delivery to nearby places and catering for parties. Opening
hours will be from 9:00 am 10:00 pm, Monday to Saturday.

Mission Statement
Mystique Restaurant will aim to provide the best tasting meals and services. The goal of
the business is to let customers feel secure and satisfied when they enter and leave our restaurant.
Most importantly the restaurant will aspire to provide an atmosphere which is suitable for adults,
teenagers and kids.

Justification of Location
 We will be located on the old southern main road of Charlieville opposite the gas station
near Randys Bar of Trinidad and Tobago.

Three reasons for choosing this location are:

It is close to working institutions.

Large amount of land space which provides a good amount of space for restaurant,
outside dining and parking space for the customers.

It is situated in a populated area; hence more customers are more likely to stop at the
restaurant for a meal or snack.

Selection of Appropriate Labour

The business will need skilled and experienced staff. There are a total of 11 employees.

The table shows the staffs position, type of labour and function.

Position Type of Labour Number of Function

Employees
Chef Professional 2 To prepare sumptuous
meals and pastries
Security Skilled 2 To ensure the safety of
the business
Cashier Skilled 2 To cash the prices of the
meals purchased by
customers
Driver Semi-Skilled 1 To deliver the food to
the customers
Janitor Semi-Skilled 2 To ensure the business
is hygienic at all times
Waiter Semi-Skilled 2 To serve customers their
meals

This type of labour is necessary because it is suitable for the kind of business we manage.

Sources of Fixed and Working Capital

Fixed Capital
These are the durable (long-term) assets of a business which are used over a long period
of time and are tied up in permanent use.

Two sources of fixed capital are:

 A loan of 1.5 million from the bank using the property owned as collateral.

The use of $500,000 of personal savings in order to buy machinery and motor vehicles.

Working Capital
These are stocks of goods; cash, bank balances, and other items required for the day to
day operation of the business that are continually being used up.

Two sources of working capital the business have are:

Money saved from the day to day operations of the business, which is the selling and
delivering of food.

Borrowing money from family to finance the business.

 Potential For Growth
Internal Growth
This chart shows the Internal Growth for one (1) year of the business.

2.5
2
1.5
Year 1
1
Year 2-5
0.5
Year 6-10 Year 6-10
0
Year 2-5
Year 1

External Growth
This chart shows the External Growth for one (1) year of the business.

2.5
2
1.5 Year 1
1 Year 2-5
0.5 Year 6-10
0
Mistery Shoppers

Franchised Business
 Role of the Entrepreneur
An entrepreneur is an individual who brings together the factors of production (land,
labour and capital) to produce a good or service the he believes consumer will be willing to buy,
thus allowing him to profit from his venture. The entrepreneur develops a concept, has overall
responsibility for decision making, takes risks, receives profits and bears losses.

Functions of the entrepreneur in the business include:

Planning. This is the first stage of management. The entrepreneur of Mystique

Restaurant will be 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 the services.

Evaluating Performance. Receiving and analysing daily reports on purchasing costs,

production deliveries and sales. Evaluating the overall trends in sales and costs structure.
Identifying problems which require corrective action.
 Type of Production
The business will be involved in Tertiary production.

This is where the business will offer services. The business will provide services such as
delivery of the food that will be provided.
 Levels of Production
This business operates at the domestic level of production.

This will be predominantly when everything that is produced is local (in our country).
This particular level of production that will be carried out by the business does not involve any
imports or exports from or to foreign countries.
 Quality Control Measures
Two quality control measures the business will carry out are:

The use of the deepfreeze. This will ensure that the meat products are properly stored in
order to prevent spoilage.

Another will be, by keeping an update of products with expiry dates. The business will
ensure that products are not expired before it is used.
 Use of Technology
The business will:

Use appropriate food preparation and storage technology, including freezers and
refrigerators, heat and microwave cooking and mechanical food preparation equipment.

Use mobile internet access, cellular phones and text messaging to communicate with
delivery staff.

The technology will produce these benefits:

Food preparation and storage technology will reduce staff time needed in food
preparation as well as improving food safety and product quality.

Communication technology will allow us to keep track of deliveries, identify delays and
take appropriate corrective actions.
 Linkages
We will buy fruits, vegetables and poultry from the local suppliers. This is backward
linkage.

The linkage will allow us to source fresh produce, to minimize delivery time and
transport costs and to maintain a close relationship with our suppliers to ensure product quality.
 Potential For Growth
Internal Growth
The chart below shows the Internal Growth for the next two (2) ten (10) years of the business.

5
4
3
Year 1
2
Year 2-5
1
Year 6-10 Year 6-10
0
Year 2-5
Year 1

External Growth
If we can develop a strong track record locally, the preferred route for further expansion
would be a national operation in which our restaurant is franchised to other businesses. In that
way we could increase our revenue and profits without taking on full management responsibility
for a large number of branches.

The chart below shows the External Growth for the next two (2) ten (10) years of the business.

5
4
3 Year 1
2 Year 2-5
1 Year 6-10
0
Mistery Shoppers

Franchised Business
 Government Regulation
The entrepreneur will ensure that all employees have a valid food handlers permit which
must be renewed when required by the law.

The business must be legally licensed to operate before it can be officially opened or
carry out any operations. This also consists of being passed by a Health Inspector. The health
inspector has to check both the hygiene of the environment and the employees.

These are two regulations that can have impact on the restaurant. This can either be
positive or negative. If the inspector realizes that the food handlers permit is not up to date the
business will be forced to shut down until it is updated. However, if the business passed both test
the business could be promoted and that will allowed the business name to get popular.
 Ethical Issues
Ethical issues are merely guidelines or reminders of how businesses should treat their disposals.

Ethical Issues which are related to production in the business are transactions between the
organization and the environment that leads to pollution, global warming, increase in water
toxicity and diminishing natural resources.

This will affect the business positively. It helps the business to stay in line with how we
deal with our waste.

The way in which the business disposes its waste could cause pollution and global
warming which is harmful to our environment.