SCARBOROUGH SECONDARY SCHOOL PRINCIPLES OF BUSINESS SCHOOL BASED ASSESSMENT

Transcription

1 SCARBOROUGH SECONDARY SCHOOL PRINCIPLES OF BUSINESS SCHOOL BASED ASSESSMENT CANDIDATE NAME: JANE DOERAYME REGISTRATION NUMBER: DATE OF SUBMISSION: FEBRUARY 20 TH 2013

2 TABLE OF CONTENTS Introduction.1 Description of the Business..2 Justification of Location..3 Selection of Appropriate Labour..4 Sources of Fixed and Working Capital..5 Role of the Entrepreneur...6 Type of Production...7 Levels of Production. 8 Quality Control Measures...9 Use of Technology Linkages Potential for Growth...12 Government Regulations..13 Ethical Issues. 14 Bibliography 15

3 INTRODUCTION This project is intended to provide an overview of a business plan for the establishment of a design and fashion business by the name of Yut Trenz. An examination of some of the main structures required for the successful formation and eventually growth of the business will be highlighted. It is intended that this business can be an alternative to sustainable employment for the author, when the author has completed his/her academic and/or other studies, and wishes to enter the job market. 1

4 DESCRIPTION OF THE BUSINESS A design and sewing business will be established as the owners would have the skills in design and sewing, which were acquired after leaving secondary school. Mr. John Doe and Ms. Jane Moe will be the business owners. The design part of the business will be managed by Mr. John Doe, who has a certificate in Art and Design from the University of Trinidad and Tobago, and the sewing part will be the responsibility of Ms. Jane Moe. This Partnership business will go by the name Yut Trenz and will design and manufacture custom-made and made-to-order clothing designs for young, trendy, males and females. The business will produce dresses, skirts, pants, blouses, shirts, uniforms, and other apparel, to meet the demands for retail and wholesale markets. The objectives of Yut Trenz will be to provide top of the line affordable, trendy and fashionable quality apparel to young people making them look and feel at their best. 2

5 JUSTIFICATION OF LOCATION This business will require a large space and will be divided into administration, manufacturing, and display. Due to this, two units will be rented in the newly constructed mall at Scarborough, located at Garden Side Street, to accommodate the needs of the business. This location, while expensive, will be ideal for the following reasons: Firstly, since the establishment of the mall in December, it has attracted a lot of young people due to the video gaming centre, youth trendy shoe stores, and fast food restaurants. This provides a situation of market pull, as the business will be located where potential customers can be found. Secondly, the business will be quite close to the Port of Scarborough, a main transport hub of the Island, thus ensuring easy access to goods when shipped from supplies either from Trinidad or abroad, and making it cost effective in transporting the goods from the port. A third reason why this location will be ideal, is the fact that all amenities necessary such as electricity, water, internet, banking, bathroom, etc., are available and reliable, ensuring the continuity of business operations at most times. 3

6 SELECTION OF APPROPRIATE LABOUR Yut Trenz will employ young people who have the same passion as John Doe and Jane Moe to see the local fashion in Tobago grow and develop. Individuals will be sourced from the University of Trinidad and Tobago, YTEPP and other educational institutions offering Fashion and Design, as well as persons with talent and potential in the fashion world. To begin this venture three skilled workers will be employed who are formally qualified in Fashion and Design. These three workers will be responsible for assisting Ms. Jane Moe in the cutting, sewing, and preparation of the clothing items. These individuals should be multiskilled, since they may be operating in different areas as the need arises. The owners, having the managerial and professional skills will manage the establishment, and assist each other in the supervision of the retail operations. In addition, two semi skilled workers will be required in the retail operations, assisted by one unskilled worker. The semi-skilled workers will take measurements of potential clients, display clothing and be responsible for cashing, while the unskilled worker will be responsible for keeping the physical environment of the business clean at all times. 4

7 SOURCES OF FIXED AND WORKING CAPITAL The owners together, contributed the sum of $375,000 towards the establishment of the business. The amount of $200,000 will go towards fixed capital, and $175,000 towards working capital. The total capital will be obtained from personal savings, loans from parents and other family members, a grant from the Youth Department and Enterprise Assistance Fund of the Tobago House of Assembly, and a loan from NEDCO. A current account and credit card will be opened and obtained from the First Citizens Bank of Trinidad and Tobago. Fixed capital items will include sewing machines, cutting tables, display shelves, equipment & supplies (scissors, markers, measuring tapes, rulers, glue, irons, etc.), and a point of sale system. These items will be purchased from Designers International (large machines and related items) and local businesses such as Buttons Plus (small apparel items such as scissors, glue guns) in Trinidad. The owners will use their personal computers and vehicles to assist in the business operations, in the initial stages. Working capital expenses will include materials (cloth, thread, zips, paint, etc.) which will be purchased from Jimmy Aboud in Trinidad and Parker Traders in Tobago, office stationery (from Office Express Limited in Tobago), rental of space (for the first six months), and workers salaries (for the first four months). 5

8 ROLE OF THE ENTREPRENEUR As entrepreneurs, the owners will have the responsibility of ensuring this business venture gets off the ground with the limited resources available. In addition, they will have to spend a number of hours working out details, finalizing the business plan, meeting with loan officers, interviewing applicants, ironing out problems that may surface at times, and a host of other activities. In planning for this business, the owners will share desires and expectations, decide on policies and procedures so that together they can look ahead and determine the short and long term goals of the business. In organizing for the success of this venture the owners must ensure that goals will be fulfilled by ensuring that tasks will be clearly defined and adequate resources (materials and equipment) put in place for the workers. The owners will also be responsible for motivating each other and the workers. The owners and workers will be expected to work hard and sacrifice valuable time towards this venture. At times discouragement may occur and steps will have to be taken to find ways of giving encouragement and being encouraged. Both financial (such as bonuses) and non-financial incentives (such as employee of the month) may be provided to help in motivating all concerned. 6

9 TYPE OF PRODUCTION Yut Trenz will be involved in both secondary and tertiary production. The secondary component of the business will be the designing and manufacturing of apparel items, with the use of raw materials such as fabric, ink, thread, etc., producing items of clothing for sale. The tertiary part of the business will be the retail outlet which will display and make available for wholesale and retail sale, our designs and fashions to the general consumer population, and more specifically to our target market, young trendy persons. 7

10 LEVELS OF PRODUCTION In the developing stages of the business, the focus will be at a small scale and surplus level of production. Beginning at this level is important so that the business can establish quality products rather than concentrating on quantity sales. The high quality will be instrumental in gaining confidence in the business by the customers and result in returning customers and even new customers when the word spreads about the high quality products that will be offered. There will be inputs from both the local as well as the international markets as many materials will be sourced from overseas. 8

11 QUALITY CONTROL MEASURES In ensuring that there will be a consistent high quality product, Yut Trenz will put measures in place to maintain high standards. Firstly, the business will utilize only high quality materials from reputable suppliers and quality checks on every item will be carried out before the apparel is made available to the customers. Secondly, the machines will be regularly maintained to ensure efficient and effective operations by Daniel & Edmond, a specialist machine firm in Trinidad and Tobago. 9

12 USE OF TECHNOLOGY High technology will be used to assist the general operations of the business. Computers and Computer Aided Designs (CAD) applications will assist in laying out and developing designs to come up with creative and fashionable designs. The will also be the sewing machines which will be capable of many varying stiches and embroidery designs. In addition, the social networking site, Facebook will be used to help in posting latest designs, so the customers will be able to view and order products via telephone, without having to physically visit the business. 10

13 LINKAGES Both forward and backward linkages would be established with this new business venture. The government of Trinidad and Tobago has identified the local fashion industry as an industry that would be developed in order to assist in diversifying the economy. This business will form forward linkages with the fashion houses such as modelling agencies and other clothing stores in Trinidad catering for young trendy fashionable persons. Backward linkages will be formed with local producers and supplies of beads, leather, cotton, and other local materials, as well as the foreign businesses from which the specialist sewing machines will be purchased and the local business providing the maintenance service for the machines. These linkages will help ensure the business survival, and eventual growth and development. 11

14 POTENTIAL FOR GROWTH Projections for the business will show an anticipated growth, both internally and externally, in the business operations within the next five years. The internal growth will be growth in the customer base, as word spreads about our high quality affordable fashionable clothing designs, leading to returning customers and new customers on a regular basis. This will require an increase in the number of employees, more specialized work operations, and possibly the incorporation of more technology in the business operations to meet the growing needs of the expanding customer base. The potential for expansion externally will involve the opening of branches throughout Trinidad and Tobago, and even in other Caribbean territories, or possibly even the purchase of a business such as an on-line distributor or a supplier of local sewing materials. 12

15 GOVERNMENT REGULATIONS Yut Trenz will abide by all government regulations and guidelines established for businesses doing business in Trinidad and Tobago, and more so the Partnership Act. Firstly, the owners will register the business as a partnership with the Registrar of Business so that the partnership will be legally recognised as a legitimate business. In addition, income taxes will be paid by the owners and all employees to the Board of Inland Revenue, as well as contributions made to the National Insurance Scheme and Health Surcharge. The business will ensure that Health and Safety Standards will be maintained by having a Health and Safety Officer contracted to the firm, ensuring that employees will be working in an environment that will be safe and healthy. The business will also be guided in its employment practices, in ensuring that there will be no discrimination in hiring, providing the necessary vacation and other leave, in offering fair wages that exceed the minimum wage established by the government, and providing employees with the require break times, such as a one hour lunch period. 13

16 ETHICAL ISSUES All designs, while some may be inspired by other designers, will be unique and original. No other designer s work will be copied and branded as the property of the business. In this way, the business will be known for its integrity and always have the trust and confidence of its suppliers and customers. This will help ensure its survival and future growth as the market will continue to support the business in its endeavours. The materials to be used will always be original and authentic and never to be substituted for inferior or imitations, especially in circumstances when original high quality materials may be difficult to acquire. This again will help to promote the business as a quality business, always delivering quality products to its customers, and will consequently ensure its survival and continued growth. Any price increases will be done based on economics and not the personal feelings of the owners. This will help to its customers to fully understand and appreciate price increases and continue their support to the business. All waste material will be disposed of in the appropriate manner, either through the garbage collection service or the owners arranging to have it delivered to the dump site, and never carelessly thrown into the environment. This will promote the business as environmental friendly and encourage its support by its customers and lead to an increase in its customer base, especially those who are environmentally friendly. 14

17 BIBLIOGRAPHY 1. (Author Surname), (Author First Name Initial). (Year Book Published). (Name of Book). (Publisher Location):(Name of Publisher of Book). 15