Princip

les of
Busine
ss
School
Based
Assess
ment
Establish
ing a Name: Nikalia James
Business Candidate Number: 1000671515

: Subject: Principles of Business

School: Manchester High School
Producti Centre Number: 100067

on Date Submitted:

Table of Contents
Description of the Business 2
Justification of Location 3
Selection of Appropriate Labour 4
Organizational Chart 5
Sources of Fixed and Working Capital 6
Role of the Entrepreneur 7
Type of Production 8
Levels of Production 9
Quality Control Measures 10
Use of Technology 11
Linkages 12
Potential for Growth 13
Government Regulations 14
Ethical Issues 15

Description of the Business

Beauty Clinic will be a business that will be jointly operated by Nikalia James, Lela Loren and Jenny Jensen. This
business will be engaged in the sale of clinically proven products.
Beauty Clinic will be a one stop medical clinic for diseases of the skin, additionally non-comedogenic cosmetics. It
will be our duty to provide high quality products to aid in the treatment of your skin and the best customer service.
This will not be a regular skin clinic. Along with cosmetics, manicure tools and nail polishes will be sold. Our prices
will be reasonable compared to other skin clinics in Jamaica; also our service will be the finest and convenient for
you.

Objectives:

Our main objective is to provide our customers with personalized treatments and services to ensure a clean
and healthy skin. The medical services which our business will provide will embrace your natural beauty.

To provide all the resources my employees need to remain productive as possible.

To maintain profitability and growth of the business.

It will be open on Mondays- Fridays (8:30 a.m. 7:00 p.m.), Sundays (10:00 a.m.- 3:00 p.m.) and Public Holidays.

Our mission is To Aid in the Intensification of Beauty.

Justification of Location
The prospective business will be located at Shop 14 on Tropical Plaza, Constant Spring Rd, Kingston.

This location was chosen for the business because:

It will be very accessible for customers, employees and suppliers. My suppliers will be able to easily and
efficiently get products to my business. Additionally there will be adequate and convenient parking. The
parking lot will be well-maintained and adequately lighted.

Our business will able to benefit from nearby businesses from the customer traffic they generate daily. These
businesses will complement my business by attracting various types of people. Secondly there is a wide
selection of restaurants from which my employees can have lunch.

This location is suitable for my business because it has the required amount of space needed for the business.

Selection of Appropriate Labour

The prospective business will be a skilled and professional medical clinic. Therefore, both skilled and unskilled will
be required. The business will employ a total of eight workers accompanied by General Manager (Nikalia James). A
total of four professionals will be employed.
 The General Manager (professional) is responsible for overseeing all administrative functions of the
business. She will be developing and marketing fresh idea to improve the production of goods and services
and accessing sufficient funds to operate the business. She will ensure efficiency and proper procedure.
The Accountant (professional) will prepare, examine and analyse accounting, financial statements and other
financial reports to assess accuracy, completeness and conformance to reporting and procedural standards.
Public Relations Officer (professional) will use all forms of media and communication to build, maintain and
manage the reputation of this business.
The Dermatologist (professional) will have experience and expertise to diagnose and treat skin diseases.
The Secretary will manage budgets, keep financial records of the business, attending telephone calls, note
reservations made and prepare expense reports.
There will be two Security Guards who will provide monitoring services for the business to ensure a safe
environment and prevent violence.
The unskilled workers will be the Janitors. Two janitors will be employed. They will offer a wide variety of
cleaning and maintenance services to the business.
Skilled labour is important because it involves tasks that require specific skill sets, education, training and
experience. It creates significant economic value through the work performed. Unskilled labour is also important
because they perform daily productions tasks that do not depend on technical abilities or skills.

Organizational Chart

General
Manager

Accountant Public Relations Officer

Ooo
 Dermatologist

Secretary

Security Guards

Janitors
5

Sources of Fixed and Working Capital

Capital is one of the resources required to set up a business establishment.

Capital mainly refers to those assets that are used to start and continuously operate a business.

Fixed Capital

Fixed Capital are the durable assets of a business which are used over a long period of time.

Two sources of fixed capital:

 A sum of $1, 500,000.00 will be borrowed from National Commercial Bank to start the business. This will be
paid back gradually at a later date.

The use of personal savings to purchase equipment such as computer cash register, two computers and
multifunction printer.

Working Capital

Working capital are stocks of goods for example 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:

Money saved from the day to day operations of the business.
Borrowing money from family to finance the business.

Role of the Entrepreneur

An entrepreneur is one who undertakes the risk of investment to create and market a good service for financial gains.

An entrepreneur performs a series of functions necessary right from the beginning of an idea up to the establishment
and effective operation of an enterprise. He carries out the whole set of activities of the business for its success.
Three functions of the entrepreneur in my business are:
To be Innovative: The Entrepreneur will be responsible for creating new methods to meet new requirements.
This will help the business to adapt to the changes in the environment to deliver better products and services
which will result in the growth of the business.
 To Maximize Profits: An entrepreneur is responsible for the advertising and marketing of his/her business.
Its the entrepreneurs responsibility to ensure that the business makes a profit by emplacing the necessary
measures.
Provide Resources: For the business to be successful, the entrepreneur will need to provide the mandatory
resources such as money, machine, material and labour. He/she will need to ensure availability of these
resourc

Type of Production

Our business will be engaged in the Tertiary Production. Tertiary production is the production of services, this
implies that all tertiary production does not produce any physical thing, but produces services that assist in the
selling or use of the manufactured goods themselves. Tertiary production involves the sale of goods from producer to
consumer (wholesaling or retailing). In this business, products will be bought and imported from the United States of
America and sold here at affordable prices.
 8

Levels of Production

The prospective business will be involved in Domestic Production. Domestic production provides output that is
enough to satisfy domestic needs and wants. The domestic level of production involves producing goods and services
not just for the individual, family or community but also for the local market. Excess is not available for export.
However, production is adequate to supply local demand. The prospective business will be importing instead of
exporting therefore we will only sell in our home country, Jamaica.
 9

Quality Control Measures

The partners of this potential business will have a set of procedures in place to ensure that the products and services
offered meets the requirements of the clients.
Two procedures that the business will adhere to are:
Complying with the standards of the Bureau of Standards. The Bureau of Standards will monitor the
quality and quantity of products; check to see that all goods are in a saleable condition and provide
information to the public on imported items that meet or fail to meet international standards of quality.
The business will purchase only high quality products from respectable suppliers. Also expiry dates and
quality checks will be assessed before they are sold to customers.
 10

Use of Technology

Technology have helped to modernize the production and communication methods also increased the efficiency of
operations in organizations.
Two types of technology that will be used in the business are:
Computer Cash Register: Two computer cash registers will be used in the business. This will process and
record sales and customer transactions. It will allow the business to charge the correct tax, run reports and
identify sales by employee. Receipts will be printed and the cash register automatically locks allowing only
authorized users to log in with a password.
Multifunction Printers: This allows the business to be able to have hard copies of documents to present
when necessary.
 11

Linkages

The prospective business will be involved in Backward Linkage.

Backward linkage is the channel through which materials, information and money flow between a company and its
suppliers and create a network of economic interdependence.
This linkage will allow us to maintain a close relationship with our suppliers to ensure product quality.
 12

Potential for Growth

Small businesses that are efficient and creative are poised for growth. Growth impacts on the business
organizational structure and the business operations.
Internal Growth
Internal growth refers to the growth within the organization which can transpire by expansion, diversification and
modernization. In the future, Beauty Clinic will focus on the launch of new products and growing a customer
base through marketing. Also more persons will be employed and more equipment will be purchased to
maximize on the expected growth.
External Growth
External growth refers to the increase of profits through mergers and acquisitions. The potential business intends
to have three different branches in Jamaica and to make the company well know overseas and the rest of the
Caribbean by forming Multinational Corporation. Additionally it will merge with an overseas company to bring
about stability and achieve economies of scale.

13
 Government Regulations

Government regulations are laws that control the way that a business can operate.
Therefore for the prospective business government regulations will be put in place that will improve the operation of
the business. The most important government regulations are:
Registrar of Companies: A business is not considered a legal entity if its not registered as business in
the home country where it operates. Beauty Clinic will not be conducting business illegally in Jamaica.
Once our business is registered, it will be our principal duty to comply with the statutory obligations
under the Companies Act. This will allow potential customers and investors to locate and/or contact our
business.
Import Licence: An import license specifies exactly what is to be importedand in what amount. If a
business does not own an import license it will be banned from importing products. This prospective
business does not have any intentions of importing products into Jamaica illegally. Once we have
attained an import licence from the government ministry/department responsible for industry and trade
importation will commence.

14

Ethical Issues
A problem or situation that requires a person or organization to choose between alternatives that must be evaluated
as right or wrong.
Beauty Clinic will ensure that all the products that will be offered are at an acceptable quality. Therefore products
that are expired or not passable will be removed from the shelves instantly. We will also ensure that the ingredients
are stated clearly so to avoid any unfortunate occurrences with our customers such as an allergic reaction. At Beauty
Clinic, our customers health will be one of our top priorities.

15

Bibliography

Robinson, K., & Hamil, S. (2007). CXC Principles of Business with SBA, Study Guide & Exercises. Kingston, JA:
Carlong Publishers (Caribbean) Ltd.
Caribbean Examinations Council. (2014). Principles of Business for CSEC: For Self-study and Distance Learning.
Oxford, UK: Oxford University Press