Principles of Business (POB) SBA

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    13-Jul-2015

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Principal Of Business SBATerritory: Trinidad and TobagoName of school: St. Stephens CollegeSchool Code: 160076Name of candidate: Christina SookdeoTeacher: Miss PalmerForm: 5 KhanTable of ContentsAcknowledgements..1Introduction..2Description of Business3Justification of Location4Selection of Appropriate Labor..5Sources of Fixed and Working Capital..6Role of Entrepreneur..7Type of Production.8Levels of Production9Quality Control Measures..10Use of Technology.11Linkages.12Potential for Growth...13Government Regulations..l.14Ethical Issues.15Conclusion.16Bibliography......17AcknowledgementsI would like to thank my father, who seems to know everything about the real world, and also God for helping me with this SBA.IntroductionThe business that I am focusing on is S&S Auto Works. I will be going through thirteen different criteria ranges and touching on all the aspects of this business in order to show how a business is run and various measures and controls it takes to keep the business running.Description of BusinessThe name of the business I will be focusing on is S&S Auto Works. The owner of the business is Mr. Singh. S&S Auto Works is a partnership type of business. It was once a sole trader and has now developed into a partnership because of advances and profits made. The business has been successful in doing its job and continues to be successful.The nature of the business is to repair or fix vehicles that have been damaged and serve other minor wants proclaimed by the customer. The business has kept this nature ever since it began, and still continues to repair, fix and do touch-up jobs for vehicles brought in.The objective or mission statement of S&S Auto Works is to provide quality service to all customers and bring a profit at the end of the day. S&S Auto Works aims to fix, repair, replace, paint or mount-up broken or handicapped vehicles. In so doing they plan to create a comfortable and reliable service to customers, gain more profit and move forward in the market in the years to come.Justification of LaborS&S Auto Works is located in New Grant, Torrib Trace, 2nd Khans Avenue at the bottom of the street. Various reasons why the business is located here are given as the following: The owner of the business lives here and it is convenient for him to carry out business here. Because the business is located here most of his neighbors are repeat customers and also many friends from the area are well acquainted with the business so he has a wide number of customers. The business prospers well in that location because close by is a scrap yard where secondhand goods can be purchased from.Selection of Appropriate LaborS&S Auto Works uses mainly semi-skilled labor, unskilled labor and also skilled labor.There are various types of jobs for different persons involved in the business. Hence, the average number of persons to be employed is at most twenty persons. In this group there must be persons who can be capable to do the following jobs like painting, buffing, mount-up jobs, cleaning, secretarial jobs, replacements, interior car cleaning and straightening.JobsNo. of persons involvedWhy necessaryPainters5Painters are needed in order to replenish the paint job on the car or to fancy the outer appearance.Straightening Men6Straightening Men are needed in order to revive the crashed cars to the state it was before it crashed.Handy Men3Handy men are needed because they help with other small jobs such as interior cleaning of the car and washing or buffing the car.Secretary1The secretary is needed because he/she takes care of records, upgrades, payrolls, punctuality of workers and also stock control via database management. Cleaner2These cleaners are needed because after a days work they make sure that the garage is clean and suitable to work in the next day.Line-Up Men3Line-Up men help with the lining up of the car when it first comes into the garage in order for the straightening men to do their job.Sources of Fixed and Working CapitalSources of fixed capital are Mr. Singhs own money stored in the bank or money from the profits that he has made.Examples: Mr. Singh withdraws money from the bank or uses checks in order to pay his workers from his money in the bank.Sources of working capital are loans taken from the bankExamples: A loan of 400,000 was taken in order to keep the business running and in perfect order.Role of EntrepreneurThe entrepreneur of S&S Auto Works is Mr. Singh. He takes care of all risks involved in running and establishing this business. Some of his functions in the business are:1) Planning, developing and marketing his ideas2) Inventing and commercializing goods and services3) Accessing sufficient funds to operate the businessType of ProductionThe type of production used is Tertiary. This type of industry is concerned with the provision of services to individuals and businesses. This is classified within the Tertiary Sector of the countrys jobs. Levels of ProductionThe level of production used in S&S Auto Works is at a domestic level. This is so because at the domestic level of production enough goods and services are produced for the individuals within a country. Here in S&S they provide enough quality service for anyone who comes to them but nothing is used for export so therefore they are at a domestic level. They arent at a subsistence level because in this type of production the person or business only produces for his family and self alone. Quality Control MeasuresTwo control measures that the business should adhere to are:1) Records are kept and should continue to be kept for the equipments, the payrolls and the absent/present roll. The continual upkeep of the business premises and the proper disposal of waste should be a measure that sticks with the business.2) Standards are set for workers while they are present during the day. For example, workers must wear on safety boots, overalls and goggles as well as the T-shirt provided by the company.Use of TechnologyOne technology used in the business is Stock control via Database management. Another is a paint mixing system through the computer in order the mix various paints in correct proportions.These two uses of technology are very helpful to the business because for one, the stock control via database management is a modern, faster and more efficient way of storing the way that stock is used in the garage. It keeps in record how much oh each material is used, when it is used and by whom it is used. This way any loopholes in the control of the businesss stock can be looked up in the record and dealt with respectively. Secondly, the paint mixing system is used through computers. It is software installed in order to help the painters when they are mixing the paint. It tells them how much of each color should be mixed and what colors should be mixed in order to get the color that they want. It is very useful because it is accurate and it does not make wrong mixtures which one would do normally and waste the paint. It is also very fast compared to thinking or averaging manually which is time consuming.LinkagesA linkage developed in this business is an industrial linkage from S&S Auto works. Various Insurance Company depends on body shop to repair the vehicles that are damaged and in so doing creating work for them.A benefit is that S&S Auto Works is supplied with work from the insurance companies that it works with and therefore the Insurance companies are creating jobs and doing their job at the same time. Both parties will be making a profit at the same time.Potential for GrowthPotential for growth internally: There is potential for the business to grow on the inside, the number of jobs can be increased, the number of workers can be increased, investing in former technologies and implementations of ethical growth, also boosts and moral support and physical support can increase the effectiveness of the workers and encourage them to work harder therefore creating a larger profit at the end of the day and at a faster rate.Potential for growth externally: There is potential for growth externally for the business to expand into a Private Limited Company. The business can become more popular and grow in the market through advertisements, business cards etc. the business can grow nationally also if it keeps on expanding and making profits because it has the potential.Government RegulationsGovernment regulations that impact this business are:1) The payment of taxes impact on this business. The owner, Mr. Singh, has to pay a land tax and VAT for the hours that the garage is used. He also has to make sure that VAT is collected from the customers and also the workers pay.2) Corporate Responsibilities are also a regulation that affects the business. Mr. Singh has to make sure that he pays all his rates on due time. Some of his rates that he pays are water rates, electricity rates, National Insurance that he also has to compensate for and also Insurance on the vehicles that are in the garage. These impact the business because taxes are often a problem for customers to pay and sometimes resulting in the customer residing to another garage because of the high payment to be made. Mr. Singh also has to make sure he pays his bills on time because if he doesnt the water and electricity could be cut off which would cause the stall of work in the garage. He also has to ensure that the vehicles in his care have insurance on them because of something perchance takes place with the original owners vehicle and insurance is not stamped on it the loss would go to Mr. Singh who would have to pay out his own pocket.Ethical IssuesOne ethical issue which relates to production in the business is the improper disposal of waste. If waste is dumped near the garage, for example, if the dust swept from the days work is heaped into a corner in the garage then when painting the dust can be swept up with the fumes and mix with the paint, completely ruining the paint job by the painter. Another ethical issue is giving customers poor quality products or bad service. If these are given to a customer the garage is likely to lose its customer and therefore losing its profit and potential for growth since the customer would complain to others and spread a bad name. Fortunately, at S&S Auto Works good customer care and quality products are used.ConclusionThis SBA concluded the methods used in running the business of S&S Auto Works, the people involved, their functions, various measures and methods used by the business and what the business is all about.BibliographySources that were used were:Help from God, Miss Palmer and my father; Suresh Sookdeo.

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