Introduction shen sba.doc

7/28/2019 Introduction shen sba.doc

1/17

Table of Contents

Introduction 2

Description of Business 3

Justification of Location 5

Selection of Appropriate labour 5

Sources of Fixed and Working Capital 6

Role of the Entrepreneur 7

Levels of Production 8

Quality Control Measures 8

Use of Technology 11

Linkages 12

Potential for Growth 12

Government Regulations 13

Ethical Issues 14

Conclusion 15

Bibliography 16

Appendix 17

1


2/17

Introduction

The entrepreneur was recently left a legacy by her aunty of one hundred thousand dollars

($100,000). She (the entrepreneur) is involved with other family businesses and they have built

a reputation for providing reliable, efficient and friendly service.

The entrepreneur has decided to open a fast food business with the legacy and after critically

analysing the market she decided to open a pizza shop.

The reason behind this is because she noticed that the current pizza establishment in San

Fernando had very poor service and their taste was somewhat of poor quality. Having a great

reputation behind her she knows that she would succeed in this venture.

The entrepreneur has decided to open their establishment at Cross-Crossing San Fernando, away

from the traffic and accessible to everyone in and around San Fernando.

Her competitors will have an advantage over her because they have already establish a name for

themselves but with great quality, friendly service and competitive prices the entrepreneur will

aim to accomplish a great share of the market.

2


3/17

Description of Business

The name and the new brand for the entrepreneur business is a pizza restaurant called Pizza

Mania. The logo is a slice of cheesy pizza on a pizza box with a smile, signifying quality pizzas

and great service.

Pizza Mania Logo

The name Pizza Mania means it will have a great influence on people on what they eat for lunch,

dinner and sometimes breakfast, the name is also catchy and more memorable.

The place will be clean, well lit, comfortable and welcoming. The inside of the building will be

painted white. There will also be five (5) tables and twenty (20) chairs, each table will be

accompanied by four (4) chairs and the table will be covered with red table cloth. It will also

consist of two toilets, one male and one female, each toilet will have one sink and under each

sick will be placed a rubbish bin. There will be a display to showcase the already made pizza,

and two areas one to order and the other to pick up orders. Also included inside the building is a

kitchen. The lights inside the building will be halogen white. Four (4) display signs will be up,

3


4/17

one will be place over the male toilet, another over the female toilet, one over the ordering

section and the last by the cashier. Outside the building will be painted orange also there will be

a parking lot and four (4) water tanks to the side of the building.

Inside Pizza Mania

The entrepreneur objective will be to create awareness one month before the opening date. After

which the first three months will be based solely on gaining new customers, building a

relationship with them and also her suppliers. At this time all or most of your promotions and

advertising will be done.

The business will be run by the entrepreneur making her the sole trader of the business.

Justification of Location

4


5/17

The location of the business will be strategically placed at Cross Crossing, thats just on the

outskirt of the city, away from traffic and accessible to all living in and around San Fernando.

Everyone can find it easy to visit the location as most people pass that route to get into San

Fernando and they dont have to worry about traffic. This type of distribution can be called direct

distribution, where as the manufacturer will be dealing with the consumers directly. Its also

situated in the middle of various construction sites, government organisations and private

businesses.

Selection of Appropriate labour

In recruiting the right staff for interacting with the customers one must first be trained on how to

deal with the customer. The staff must have the appropriate interpersonal skills, aptitude and

service knowledge to provide the service that customers are paying for.

The staff will consist of two (2) pizza chefs, two (2) order attendants, one (1) delivery driver, a

kitchen assistant and a cleaner. The entrepreneur will manage and supervise all operations and do

her own book keeping, inventory, data entry and orientation.

The delivery driver, kitchen assistant and cleaner will all come from the other company that she

is involved with. The pizza chefs must have the necessary qualifications and experience and the

front line staff must execute professionalism and courtesy at all times, especially when attending

to customers, they must have a certificate in hospitality and experience in the food industry.

This would show that the entrepreneur business will be handled in a professional manner and

that the pizza will be prepared with the rich flavour making it tasty and mouth watering.

5


6/17

Pizza Mania staff member

Sources of Fixed and Working Capital

Expenses or operating expenses are the expenses incurred in the operations of the business.

These expenses include advertising total figures, salaries and wages. The registration cost of the

business, electrical, water and telephone. Cost of boxes, staff expenses, directors remuneration.

The purchase of vehicles, and all cost associated with motor vehicle, gas and maintenance.

Purchase of all equipment, chillers, ovens, computers, warmer bags. Staff training and

miscellaneous cost.

All of the equipment can be purchased from Courts Trinidad Ltd. The vehicle by the leading car

dealer and the boxes etc from the Stack House using the entrepreneur legacy that was left by her

aunt of one hundred thousand dollars ($100,000).

The total expenses are then subtracted from the gross profit and the value that is derived is the

Net Profit Value.

6


7/17

Cost of goods sold is the opening stock, added to all purchases made in the production in the

good or service. The closing stock is then taken away from this value. Closing stock is the

product that is left after sales end. The gross profit is obtained by subtracting the cost of goods

sold value from the sales figure. The vegetables, rent, stationary etc can be purchased/paid using

sales revenue that is re-investing profits.

Role of the Entrepreneur

An entrepreneur is a person who organizes and manages a business undertaking, assuming the

risk for the sake of a profit.

An entrepreneur performs a series of functions necessary right from the genesis of an idea up to

the establishment and effective operation of an enterprise. She carries out the whole set of

activities of the business for its success. She recognises the commercial potential of a product or

a service, formulates operating policies for production, product design, marketing and

organisational structure. She is thus a nucleus of high growth of the enterprise.

According to some economists, the functions of an entrepreneur are classified into five broad

categories:

1. Risk-bearing function,

2. Organisational function,

3. Innovative function,

4. Managerial function, and

5. Decision making function.

7


8/17

The entrepreneur function for Pizza Mania will be to employ the right persons for the various

jobs, ensuring that the right cooks etc are hired, risk taking, overseeing the general operations of

the business that is managing, supervising, combining factors of production in an efficient

manner so as to yield the highest possible return.

Levels of Production

Domestic Production

Domestic production refers to production that is more than survival level. It provides output that

is enough to satisfy domestic needs and wants. Excess is not available for export. However,

production is adequate to supply local demand.

At Pizza Mania the business may operate in the domestic level of production since the product

will be sold and consumed within the country. The entrepreneur is determined to meet the needs

and wants of the people.

Quality Control Measures

As the saying goes, "You only get one chance to make a first impression," and this is as true

statement for Pizza Maina as it is for people. If a customer's first dining experience is horrible,

the food and service were terrible, they will never come back. For this reason alone, it is

important that Pizza Mania manage both the quality of their food and their service.

QCM are certain procedures the entrepreneur should adhere to, to maintain and ensure that her

business is legal, and that she is running the business in a professional and safe manner.

Pizza Mania must have: Health certificate, food badge courses in food handling etc. This is done

to meet certain criteria or standards.

8


9/17

6 Food Quality Control Tips for Pizza Mania; Train Staff - Knowledge is power, and training staff to follow safe food handling

practices is the best way to assure food quality and safety. The importance of training

also goes for servers, cashiers or anybody else who deals directly with customers. A

quality restaurant experience is about more than just serving good food but making the

entire dining experience enjoyable as well. It is also wise to retrain staff who have been

there for a while to just give them a refresher on proper procedures and why certain

practices are important.

Lead by Example -Telling employees about food quality management will only go so far.

Restaurant managers also need to show employees how important it is by practicing what

they preach. Whether it be through checking food temperatures, manning the grill or

personally checking on customers, the restaurant manager is the person employees look

to on how to act in every situation.

Initiate a Food Safety Certification Program - A food safety certification program takes

some of the guesswork out of food quality management. In order to become certified,

each restaurant has to implement very specific practices that are designed to assure food

is being handled, prepared and served by the safest means possible.

Practice Proper Receiving and Food Storage - Food quality control begins the minute it

enters the restaurant, and that means all shipments need to be checked against spoilage so

9


10/17

only the best ingredients enter the restaurant. Once accepted, the food needs to be stored

properly (whether it be frozen, refrigerated or dry storage) in order to maintain high

quality and maximize shelf life.

Stress Consistency - As mentioned before, you only get once chance to make a first

impression, but keeping that impression alive is critical to maintaining a client base. If

portion sizes or staff service changes on a daily basis, customers will lose faith and start

coming to the restaurant. Therefore, it is important that staff properly measure all food

portions. As far as server consistency goes, a lot of managers tell servers to leave their

problems at the door, meaning don't bring your issues to work and start every day in the

restaurant fresh so they can give customers the same enjoyable dining experience every

time.

Hire a Quality Assurance Manager - Sometimes, managing food quality is so daunting a

task, especially for large commercial kitchens, that it can become a full-time job. For that,

there are quality assurance managers. Quality assurance managers have at least a two-

year degree in food sciences or a related field and are responsible for, among other

things, training staff in proper food handling and regularly monitoring food quality in the

commercial kitchen.

Use of Technology

Living in the 21st century, technology plays a part from all angles. To ensure that our product is

well known the entrepreneur have created a website giving information on the product and the

10


11/17

company. Like it was said earlier, she will use a combination of electron and print media. Her

Accounting Department uses the Peach Tree Software to keep records of the finances.

Some other uses of Technology that can be employed by Pizza Mania;

Ordering online - orders may be placed online

Online surveys

Computerize orders orders are in the system so it is easy to track how many sales on a

daily bases

Computerize inventory of stock

Insulated bags to keep pizzas hot during deliveries

Salaries done via internet banking

Costumer information their address and contacts are already in the system, how often

they order, their likes and dislikes, this will be able to measure how much of the market

has been captured

Online promotions using social networks (facebook, twitter)

Linkages

The type of linkage Pizza Mania used are Forward and Backward Linkage.

11


12/17

If the final product or finished products of one industry is used in another industry as its raw

material then a forward linkage occurs. For example, sugar produced from a sugar factory is used

by Pizza Mania to make the pizzas. Sugar is therefore the end product of one industry and used

as raw material in another. Buying local sugar may ensure a constant ready supply.

A backward linkage occurs when the demands of an industry leads to the establishment of other

industries to produce for the needs of this industry. For example, the establishment of Pizza

Mania has led to new businesses being established to supply them with raw materials

(vegetables, ground provisions, meats and paper based products).

Potential for Growth

By doing a proper marketing research of the country and keeping the professional standard of

Pizza Mania the entrepreneur can have internal as well as external growth.

Internal Growth: (Often referred to as organic growth) refers to a situation where Pizza Mania

increases its size through investing in its existing product range, or by developing new products.

This will normally be financed through the use of retained profits (from previous trading years),

bank loans or, if the business is a PLC, through the issue of shares. This is a slower and safer

method of expansion than external growth.

External Growth: Involves much greater sums of money and takes place through the use of

mergers and takeovers (often known as growth through amalgamation, or simply integration).

Regardless of the method of growth, there are several reasons why Pizza Mania wish to grow:

To achieve economies of scale and see the average cost of production decline.

To achieve a greater market share.

12


13/17

To satisfy the ego of the businessman.

To achieve security through becoming more diversified.

To survive in an increasingly competitive market.

Government Regulations

Tax Policies

Employment Injury and Disability Benefits Bill, Maternity Protection Act, Occupational

Safety and Health Act, The Equal Opportunity Act, No. 69 of 2000, Minimum Wages

Order, Legal Notice No. 40 of 1999

Environmental Law Waste Management Rules, 2008 (Draft), Environmental

Management Act,

Trade Restrictions

Tariffs

Infrastructure of a nation

Bureau of Standards

Consumer Affairs Division - they regulate the food prices

Weight and Measure Inspectorate, a division of Legal Affairs is responsible for enforcing

the Weight and Measures, Ordinance Chapter 31, No. 15 and regulations made there

under.

13


14/17

Change of Particulars of Registration (Business Name) Changes may be made at Legal

Affairs at a cost

This works in favour with Pizza Mania, as so they are protected from being cheated by the

suppliers of fresh products.

The improper disposal of waste and the use of dangerous material in the manufacturing of the

product that would inflict any sort of damage to consumers are also seen as illegal.

The entrepreneur will ensure that she abide by all rules and regulations of the country. If failing

to do so, she would see it as a disappointment not only as owner of the business but the business

in general.

Ethical Issues

Within the company the entrepreneur sees it unfit to exploit her customers in the sense that she

cannot and will not overprice nor use inferior goods in packaging. Also she has decided that it is

better for the environment that she use recycled boxes in her packaging. She will also use the

best possible raw materials in production. She will also employ a highly qualified staff to provide

the service and goods.

Conclusion

People management, finance and marketing are all different functions that are carried out by an

organization. These three functions support each other. Whatever the nature of the business, it

14


15/17

needs marketing to get recognition to the company. Marketing deals with the goods and services

that the customers needs. For even non-profit organizations need marketing to attract sponsor.

Marketing and finance both need people to carry out the activities for success. Hiring the right

people is important for the particular roles.

Both marketing and people need money for these functions to be achieved. All salaries are done

and accounted for by the finance part of the organization. As well as all promotional and

research and development activities budget must be approved by finance, weather it is feasible to

undertake these.

Once these steps are taken into consideration Pizza Mania will be a highly successful

organization and will be potential for growth within the country.

Bibliography

Waterman, Ivan and Ramsingh, Dave Principles of Business for Caribbean Examinations 4th

Edition, Macmillan Caribbean,2005.

15


16/17

Robinson, Karlene and Hamil, Sybile CXC Principle of Business with SBA, Study Guide &

Exercises, Carlong Publishers, 2001

Appendix

Questionnaire:

(1) Would you as the consumer, feel more comfortable being served by a female or male

employee?

16


17/17

(2) What kind of pizza packaging would most appeal to you?

(3) Do you prefer the packaging to be translucent or coloured? If coloured please indicate

from the following : Blue

: Pink

: Green

: Purple

(4) What sizes would you like the pizzas to be?

(5) What would be the deciding factor in buying our pizzas?

17

Documents

Introduction shen sba.doc