Description of Business
Type of Business
The type of business I will be engaged in is a sole trader business. The name of the business is T. Wallace’s Bakery.
Nature of the Business
The nature of the business is a Manufacturing service industry that caters for all companies (citizens) in providing the finest baked products, the most suitable distribution. Major products include baked breads, mainly white, wheat and rye, rolls, buns, muffins, bagels and croissants; soft cakes; pies, pastries, donuts and a variety of sweet goods. T. Wallace’s Bakery takes the pride in the fact that our products are %100 made in Jamaica.
Mission Statement
To produce quality baked products that will make both the customers and myself not only satisfied but also happy.
Selection of appropriate labour
The T. Wallace’s Bakery, in deciding on how its recruitment exercise would be
Carried out chose the use of private employment agencies and references from trusted friends and relatives. This method of recruitment, in addition to reducing the costs, its less time consuming and provides the business with employees with the necessary experience and qualities for working capital in the business.
The specific skill levels required by the T. Wallace’s Bakery for the efficient running of the business, in cludes a combination of unskilled, semi-skilled, skilled and managerial. The unskilled and semi-skilled jobs in the business would require individuals with little or no special training and would mainly involve persons working with their hands.
Individuals working on the skilled level would include cashiers who would need necessary qualifications and experience for their position. This category would be responsible for the preparation and proper presentation of the beverages and pastries as well as maintaining a high level of integrity and honesty when taking orders and collecting payments.
The managerial skill level however, would require persons who have adequate knowledge and qualifications for running a business as well as foresight and excellent work experience in the similar positions. This level would be occupied by the entrepreneur and managing supervisors. All prospective employees who are short listed would be required to attend an interview and provide suitable references.
Sources of fixed and working capital
The T. Wallace’s Bakery decided that in order for the business to get the necessary start -up
Capital to find its operation, it would obtain a $500, 000 JMD from the bank in addition, $600, 000 JMD of personal savings and $400, 000 JMD of money acquired from the sales of personal assets would be used. The Bakery owned by Mr. Wallace will be used as collateral.
All the loan obtained from the bank would be used in as fixed capital for purposes such as purchasing items such as industrial ovens, mixers, refrigerators, dough moulders, mini
pluses, dough drivers etc. All of the personal savings would be transferred for Working capital uses (the day to day operation of the business), including the pur chase of required stock of ingredients, payments of rents, utility bills, employee salaries and other necessary purchases. Therefore, leaving us with the money acquired from the sales of personal assets for emergency uses (backup).
Role of the entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative. The main functions of an entrepreneur are: 1. Planning of the project- Mr. Wallace is the organizer to conceive the idea of launching the project and program the structures in his Bakery. This project of plan may include; a scope, aim, requirements, timetables, constraints and resources. 2. Management
- Mr. Wallace is also responsible for the management of the business. He has to try to have a least cost combination of factors of production. Each staff members has to organized into their own suited area such as; Accounting manager, Operations manager, H.R manager etc. These workers will enhance the efficiency of the T. Wallace’s Bakery.
3. Sale of products
- In this case, Mr. Wallace is responsible for the marketing and advertising. He wants to maximize his profits by selling all his products in the market. And in doing so, he should make sure the products are well packaged, labelled and distributed.
Level of Production
T. Wallace’s Bakery is engaged in a domestic level of production, producing products locally
for our home country, Jamaica. This level does not accept imports from foreign countries. Our Domestic production refers to production that is more than survival level. We provide all the output that is enough to satisfy domestic needs and wants. Excess is no t available for export. However, production is adequate to supply local demand.
Quality control measures
T. Wallace’s bakery has established a number of quality control measures as a means of
regulating the quality and standard of its product.
These measures include conducting a number of taste tests prior to opening to the public determine the standardized number of ingredients that would be needed to ensure that its products maintain a high standard at all times, both in terms of taste as well as value for money. It will also be ensured that there will always be a fresh stock of ingredients available to make these products. Another measure requires that employees handle beverages and food-related operations in a clean and hygienic manner.
Use of technology
The technology used in this business includes a computer and a telephone
How are these two technologies used to enhance the efficiency of the business in T. Wallace’s Bakery?
A computer is very important and will be used in the Bakery. The work at T . Wallace’s Bakery depends on a computer for scheduling, communication, controlling, managing data and all the information about the company and competitors. In this industry, their two main driving factors, (1) Quality, (2) Time. If we produce quality cakes or bread on time, our clients will benefit in time, which will lead to business growth. When we look at production, things like accounting should be put into consideration, all this is simplified by computers, and we can easily keep track of how many types of bread are produced in a day and how many are sold, moving at a fast rate, which increases productivity.
A telephone in the bakery will provide the staffs with communication with their clients. Telephone features such as toll free (which saves a lot of money) and local nu mbers can increase responsible rate from our clients and costumers. By the use of this device for inquires and placement of order thus,it generates additional sales. The telephone will provide the bakery with customer service (assisting customers in different ways) which will increase productivity.
Potential for growth
Internally
This is the strategy that is put into place to d evelop the business itself. T. Wallace’s Bakery will invest in growth in a number of ways including training employees, the restructuring of departments and improving products and services. By improving products and services, we will look to extend our customer base. Internal growth will inevitably cost money in the short-term, but the returns on these investments should outweigh the money spent over time. The business size will not necessarily increase because of internal growth, but the quality of our bakery business will.
Externally
An external growth strategy will assist in developing the size of the company and the value of the assets of it. Examples of external growth are to franchise the Bakery, leading to more costs, but inevitably more profit, and increasing the interaction between my business and other companies for a mutual benefit. The number of business partners a company has will have a bearing on the amount of money that is invested, and by attracting investment from external sources the company will have more potential to grow. External growth should be considered as we provide the opportunity for T. Wallace’s Bakery to produce substantial returns on investment into the company.
Linkages
The type of linkage to be derived from our business is known as forward linkage. The benefit of forward linkages is that the producers can guarantee the movement of the product. If the final product or finished products of our bakery 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 in our bakery to make pastries. Sugar is therefore the end product of one industry and used as raw material in another. Therefore our bakery will benefit from forward linkages when we sell our products to different outlets, so our business will then grow as more demand is being made for that particular good, also it reduces the d ependence on imported goods.
Government Regulation
The government regulations impacts on how long the people who work in a day/week. How much that Mr. Wallace have to pay them (minimum wage). Government regulations are usually introduced in response to concerns about matters such as p roduct safety, advertising worker safety, environmental issues and laws were therefore made to regulate the activities of the business .
In a business such as the T. Wallace’s Bakery. The one main aspect of government
regulation that would have to be adhered to is having the bakery registered. For a business in the food industry, it is of paramount importance that all products are processed under clean and hygienic conditions. To ensure this, Mr. Wallace has to confirm to standards set by the Ministry of Health. These standards guard against endangering lives of customers. Hence, it is required that apart from the bakery having a license to operate, all persons directly involved in the manufacturing of baked products must have a Food Handler’s Permit. This regulation has a big impact on the business because we have a responsibility to provide safety in our food for all customers at all times. Which will help to build and let the busine ss have a great reputation.
Ethical Issues
The most important ethical issue is preparing healthy food so that the customers don’t get sick.
Food Safety Although most people do not realize it, patrons of food establishments place their lives in the establishments' hands. Improper storing and labeling of food items or selling slightly-expired food can be tempting from a financial perspective but can lead to serious injury or worse due to food poisoning, cross-contamination or allergic reactions.
Food establishments should include firm commitments to food safety in our codes of ethics, always placing food safety above financial concerns. This includes going beyond the letter of the law to enforce the highest product quality standards.
