YEAR OF EXAMINATION: 2017

SUBJECT: PRINCIPLES OF BUSINESS

SCHOOL: HOLY NAME CONVENT POINT
FORTIN
CANDIDATE NUMBER:
CANDIDATE NAME: SHANIA S. ROOPLAL
TITLE OF PROJECT: HONEY BUNZ BAKERY
NAME OF TEACHER: MRS.DIANE DASSRATH

Description of Business
Honey Bunz bakery will be established as a sole trader type of business
and operated in a mixed economy.

Mission statement
Honey Bunz bakery will be involved in providing the most delectable
and tasty breads, cakes and pastries at an affordable price for potential
customers in Fyzabad.
The main objectives of the business will be to:
Build a sound relationship with customers
Aim at being the best while making a profit for the business
Let customers feel safe and secure when they enter the bakery and
satisfied when they leave

Justification of location
Honey Bunz bakery will be located at Charlie King Junction, Fyzabad.

Three reasons for choosing this location are:

Transport access: setting up the business on the main road would

make it convenient for both employees and customers especially if
they have to travel to and from the business. Another advantage is the
perfect roads which would make it accessible in the movement of raw
materials.

Market pull: the bakery will be situated in an urbanized area where a

lot of other business activities will be occurring and potential
customers will be attracted as it would be the first bakery in the area.

The building would be owned by me so I would not have to pay rent.

Selection of Appropriate Labour

Labour is the physical and mental contribution humans put in the creation of goods
and services. Types of labour necessary:
1. Professional- manager
2. Skilled- main baker and assistant baker
3. Semi-skilled- cashier, driver and cleaner
The total number of persons employed at the business is six (6). Their roles are:
1. Manager:
Supervising the overall performance of all staff members.
Balancing out the accounting books which includes profit
and loss.
Making orders for goods needed for the business.
2. Main baker responsibilities:
Baking, preparing and decorating pastries, cakes and breads
on a daily basis.
3. Assistant baker responsibilities:
Assisting main baker in measuring, kneading doughs,
mixing ingredients and packaging.
4. Cashiers responsibility:
Cash customers products accurately and timely.
5. Drivers responsibilities:
To transport ingredients from factories and local suppliers to
the bakery and delivery of goods to customers on special
occasions e.g. birthday/wedding cakes and other small
bakeries for retailing.
6. Cleaners responsibilities:
Clean up after work is carried out by the other employees.
Properly dispose garbage.

Reasons for these types of labour:

Managerial/professional- having more qualified and well trained staff would

improve the running of the business.
Skilled- these persons would have the necessary skills required to carry out
the task given to them.
Semi-skilled- these persons does not need to have any type of formal
education because their jobs are basically simple tasks but they play a very
important role of the business.

Sources of fixed and working capital

In order to establish the business, some source of capital must be aquired.

Fixed capital refers to land, building, machinery which is long lasting during the
course of production. At Honey Bunz bakery, fixed capital includes machinery
such as dough mixers, bread slicer and other equipment like refrigerators, and
ovens which will be used in the production of goods. These are estimated total of
$80,000 and will be acquired from personal savings. In order to obtain the rest of
fixed assets or capitals and to pay for land, a loan of $70,000 will be obtained from
the republic bank.

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.
A main source of working capital the business will have is, money saved from the
day to day operations in the business which is selling and delivering of bakery
products.

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 that he believes consumers
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 Fluffy Bites
Bakery will be responsible for setting goals, deciding an 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 problem which require
corrective action.

Type Of production

The business will be involved in both secondary and tertiary production.

Secondary Production-This involves converting raw materials into finished goods.
Honey Bunz will use raw ingredients like, flour, milk and sugar to make finished
products like breads, cakes and pastries.
Tertiary Production- This involves providing a service. Honey Bunz will be
delivering bakery products to customers and other small bakeries. Goods will also
be sold on the counter at the bakery.

Levels of production

This prospective business will be operating 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 by the business
does not involve any imports or exports from or to foreign countries.

Quality Control Measures

Three quality control measures the business will carry out are:
The use of the deepfreeze .This will ensure that the meat and milk products
are properly stored in order to prevent spoilage.
Another will be, by keeping are updated of the 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 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 customers, employees and delivery staff.
Use 24 hours surveillance cameras
The use of Technology will produce these benefits:
Food Preparation and storage technology will reduce staff time needed in
preparation of ingredients as well as improving food safety and product
quality.
Communication technology will allow the business to keep in touch with the
local suppliers for the bakery, and customers that are being supplied by
Honey Bunz, notify employees at any time, keep track of delivery, identify
delays and take appropriate corrective actions.
The 24 hour video camera will be monitoring and recording everything that
happens in the bakery for the safety of customers and the business.

Linkages
Honey bunz bakery will be providing breads, cakes and pastries to other small
bakeries and groceries to