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Name of Candidate: Carl La Guerre

Candidate Registration Number: 1600040346

Name of School: Arima Central Secondary

School Centre Number: 160004

Subject: Management of Business Unit 1

Topic: An investigation into the factors that makes J & A school café a successful
business operation: the nature of sole trader businesses, establishing business objectives, clearly defines organisational structure, motivation and finance.

Teacher: Mrs. Rattan

Abstract

This research project is derived from three modules in unit one (1) of the Management of Business Syllabus; Module 1- Business and its environment, Module 2- The management of people and Module 3 Business finance and accounting. This project endeavors to bestow knowledge in the field of analyzing and reporting the nature of a real life business organization. The data obtained in this report made use of the following primary sources: questionnaires, interviews and visits to the organization. The secondary sources of data collection were in the form of textbooks and the internet.

(i)

Acknowledgements

I would like to thank the many individuals that have contributed to the successful completion of this project. Special thanks go to Mrs. Rattan, my Management of Business teacher, for all the guidance, support and useful comments on the report. I am also indebted to my parents and friends for the contribution of ideas and most importantly God, for the continued strength and patience that allowed me to shape and structure the project

(ii)

Table of Contents Page number Abstract Acknowledgement Introduction Planning of Project Module 1: Business and its Environment  Description and analysis (i) (ii) 1 8 11 Module 2: Management of People  Description and analysis 17 Module 3: Business Finance and Accounting  Description and analysis 23 Presentation of data  Analysis and Interpretation of Data 28 26 27 31 35 Conclusion Recommendations Appendices Bibliography .

Introduction Purpose of Study This report attempts to develop my skills in collation. To assist with the day-today tasks her husband. The aim is to understand and connect the theories studied in the classroom to that of an existing business and understand the impact of these principles on the day-to-day operation of the business. Abraham Williams. organizational effectiveness and business finance. The study examines the operations of a private sector enterprise and show how basic tasks are formulated within the organization. evaluating and interpretation of data. Mr. alongside three (3) workers takes the responsibility of this burden. It is owned and operated by Ms. The enterprise takes the structure of a sole trader. The café is located on the school’s compound at . as well as my ability to extrapolate and make suggestions. it helped me to appreciate and understand the importance of setting organizational goals and progress awareness of the effect of human motivation. Background of the Enterprise J & A School café was established to serve the catering needs of the students’ population of six hundred and fifty (650) and a staff of sixty (60) teachers at Arima Central Secondary School. decision-making. Additionally. Judy Williams. communicating.

hot dogs and the ‘meal of the day’. Currently. These consist of snakes and drinks or food from wholesalers e. On the school’s compound. Williams. all the preparation is done for all types of events. pastries. These consist of hamburgers. Williams supply the school population with daily lunches and meals for special occasions. Catering for any. The organization is involved in both secondary (food is cooked and prepared on location) and tertiary (selling of goods in the café/ catering service is also provided) level production. the business has one branch. other non-school related events are also provided for such as birthday parties. The remaining thirty percent (30%) of commodities are prepared in the school’s kitchen.g. Arima. Over seventy percent (70%) of the commodities sole are prepackage food. Ms. resigned from her previous occupation. christenings and Christmas parties. The café has been in operation for the past ten (10) years and was officially launched in 2000 when the owner.” .Marie Street. Ms. It opening hours is from 6 am to 5 pm Monday to Friday. Mission Statement “To serve clean and reasonable meals to all customers in a friendly manner.

 Ms. . Williams misunderstood some of the business jargons used in the interview.  Time constraints.Limitations of Data Collection Methods:  The sole trader kept salaries and profits confidential. There was only time to conduct one interview with the owner.

The first one was distributed to four (4) employees of the café to get adequate information on what makes her business a success.Planning of the Project Methodology The data obtained in the report. interviews and visits to the organization for observation purposes. . The secondary sources of data collection were in the form of textbooks and the web. she is the owner of the organization and the necessary information needed on the factors that make J & A café a successful business operation would have been easily obtained from her. was based on verifiable evidence and not on personal belief. Description and selection of sample The reason for interviewing Ms. ten (10) males and ten (10) females from all forms of the school. to gather evidence. Primary research methods were in the form of questionnaires. There were two (2) questionnaires issued to gather data for the successful completion of this report. Williams was. The other questionnaire was distributed to a convenient sample size of twenty (20) to the students of the school. This report made use of both primary research methods and secondary research methods of obtaining data.

Four (4) students were appointed to take detailed notes so that adequate material could be acquired. The information obtained from the questionnaires was shown in the form of graphical representation. This was a superlative and effective method of research because specific information was needed relating to the topic. This session lasted approximately one and a half hours. Williams. The student population was chosen because we were able to gain valuable insight on the improvements or recommendation on the business. Description of Research Design The interview with the sole trader and the questionnaires for this project was carried out at Arima Central Secondary. which was more open-ended. Another questionnaire. We chose a private sector business of the economy. The graphs and charts were used to analyse the data received from the market research conducted. Hence. the study was both explanatory and exploratory in nature since it enabled me to get wind of how stakeholders deemed . The research population consisted of the owner. was formulated to serve as a guideline in the in-depth. face-toface interview with the owner.Description of Research Instrument The questionnaires issued to the employees of the business and student population were more closed ended questions with easy to capture information by having individuals respond to ‘Yes’ or ‘No’. Ms. the employees and the student body. a sole proprietorship.

15th. Outline of Research Procedure Activity Finalize objectives Develop questionnaire Administer questionnaire to sole trader Administer questionnaire to students Administer questionnaire to employees Analyse data Took out pictures Enter data into computer Submit to teacher Date 31st March. The questionnaire distributed to the students was the ideal method for data collection as they were allowed to carry it home and contemplate so that meaningful responses would be submitted. 1st April. 2009 Unit 1: Management Principles and Process Module 1: Business and its Environment General Objectives: . 2009 17th March. 2009 19th March 14th. 2009 19th April. 2009 17th. 16th. 2009 15th March. 17th April. 18th April.the business. 2009 17th March. 2009 13th April.

2. Tactical decisions and Strategic decisions. has few legal requirements and has total control over the operations of the business. Ms. All workers have a say in the operation of the business to achieve the operational decisions. This objective would be achieved through Operational decisions. To explain the importance of different business organizations The business’s long-term objective is to serve clean meals to all customers in a friendly manner. Williams is always in close contact with her customers so she does informal market research to determine the prices. Initially when the business started. disadvantages Some of the advantages of a sole trader type of business are. 3. To understand how different business organizations function Specific Objective: 2. To understand the nature/operation of a sole trader business. Some of the disadvantages of the sole trader type of business are. which her customers might afford. it was difficult to estimate how . the owner has unlimited liability and lack of funds to obtain sufficient capital. the capital need to start the business is easily acquired. To explain the importance of business objectives The nature of sole trader business – advantages.

with time she has learnt to sharpen her market research skills. a sole trader. To ensure that students are well informed of products and prices and to sustain demand in both the short term and long term distributor signs are posted in the café. Judy Williams is the owner and operator of the café. deep fryer done through needs assessment in terms of time saving and based on market demand/ projected intake of students. There are minimum legal . Analysis and Interpretation of Data J & A Café is the simplest and most customary form of private sector businesses. The tactical decisions would be determined in conjunction with all members of staff. Purchasing of kitchen equipment e. Ms.many meals to prepare however.g. Setting up as a sole trader is very straightforward. The strategic decisions are obtained with a backward linkage with a specific supplier ensures that vegetables and meat suppliers are purchased at one stabled price.

requirements needed in establishing a sole trader type of business however.  There is lack of sufficient collateral.  She offers a personal service to customers. E.  She is free to take holidays when school is closed for Easter. Williams and her workers is the acquirement of food handler’s permit from the Arima Borough Corporation. sole traders do have many legal responsibilities once they have become established. Disadvantages of the sole trader:  She has unlimited liability.g. legally they must provide healthy and safe working conditions. catering. . organising. One of the legal formalities required by Ms. For example. planning. summer and Christmas. Advantages of the sole trader:  She already has the relevant managerial skills.  She is independent and free to make decisions  After expenses are paid all the profit belongs to her. Sole traders must also comply with legislation aimed at business practise.  She is flexible to go home and make preparations because her husband stays to close the café at 5 pm. E.g. controlling and communicating.

It states. The overall aim and purpose of the enterprise is clearly defined in the mission statement in a qualitative term. To achieve some of her operational objectives Ms. To keep customers satisfied. All businesses have objectives. daily advertising is done around the café area.” The goals of the business are divided into operational. The meal of the day advertised on the kitchen door . Williams incorporates a democratic leadership style in the operation of her business so that all of her worker has a form of involvement in the diurnal activities of the firm. whether they may be in the form of a sole trader or a large company. The “meal of the day” is advertised on the kitchen door and the regular courses and price lists are on display in the café to increase customer awareness. noticeable to passers-by. she does her own unsanctioned investigation to ascertain economical prices as to which her customers can afford. “To serve clean and reasonable meals to all customers in a friendly manner. If she prepares contaminated foodstuff she can be sued. These are the goals of the organization such as the targets or outcomes that the business wants to achieve from it quotidian operations to its long-term operations. To keep purchasers well informed. tactical and strategic objectives.

Ms. The tactical objectives of the business are quantitative goals. initially prepared for the school population. Williams can cut back on the time it takes to prepare the meals and increase the amount of goods .A price list of the available daily foodstuff Additionally. They include purchasing of technological cooking equipment for the kitchen such as a deep fryer and lager freezers. With acquirement of these extra equipment. leftover meals. have been decided to cater the needs for the YTEEP classes after school.

Most importantly. the supplier benefits form continual sales from the sole trader. Unit 1 Module 2: The Management of People . In turn. as a result of seasonal changes or paucity. Williams to maintain her constant prices. her strategic objective is to maintain her backward linkage with a specific supplier of poultry and vegetables to ensure goods are purchased at a constant price despite price deviations. Another tactical objective is to make sure the prices are well informed as well as to sustain demand in the long and short term. Building such a relationship with a supplier is the key to affordability allowing Ms.prepared for daily consumption.

For example. each worker has a set of daily tasks to carry out so that all their objectives can be met effectively and efficiently.General Objectives: 2. To develop an awareness of the effect of human motivation on organizational effectiveness Specific Objective: 3. it is very helpful to organise the business into a number of clearly define sections. Although the organizational structure is simple. To explain the theories and practises of motivation Features of the formal organizational structure All businesses need to organise their activities and appoint workers with specific roles and responsibilities. At J & A café. To explain the features of the formal organization structure 4. To understand the roles and responsibilities of employers an employees within an organisation 3. Mr. Williams is the only other employee who can make payments to suppliers on behalf of the owner whereas the remaining employees can only carry out their specified task according to their position in the business. .

William’s business to keep employees contented and enthused. As time goes by her workers receive a pay increase and she sponsors social event gathering such as family days for staff. along with a family like atmosphere are some of the forms of motivation practises that are incorporation into Ms. Williams is has incorporated both financial and non-financial forms of human motivation in her business. Provision of a safe working environment is constantly.Factors that stimulate and influence motivation Ms. Analysis and Interpretation of Data Ms. payment of expenses. They are also apart of the decision making processes within the operations. she is in charge of all purchases from suppliers. sourcing of . Their inputs are taken into careful consideration and then a mutual objective is established. Williams superintends the planning and arrangement of all the meals.

Her span of control is narrow with four (4) subordinates under her authority. The three (3) other employees are given the position café and kitchen assistant. . Their main roles in the organization are very simple and straightforward.capital investment. The kitchen assistant. Her husband. assisting in the preparation of the daily lunches. recommencement of employees and acquisition of workers. He also in charge of opening the café at 6 am and closing at 5 pm to cover breakfast. Williams. and evening sales to students of the school and YTEEP students. all her worker came in with the relevant catering experience from their pervious job. Mr. lunch. lend a hand in the processing of the vegetables and packaging and labelling of ordered lunches. Luckily. They assist in the café sales at peak times such as break time and at lunch. is an assistant to her and his functions in the day-to-day running of the business are to aid in the buying and selling of goods and makes payments to suppliers on behalf of her. so there was no need to train workers.

Ms. and these needs exist in a hierarchical order. safety. esteem and self-actualization needs. Maslow identified five (5) general types of motivating needs and they are physiological. Williams fulfils all these on-the-job needs to maintain job satisfaction. humans are motivated by multiple needs.The following is diagram of the organizational chat: According to Abraham Maslow’s hierarchy of needs. belongingness. Maslow’s Hierarchy of Needs: . which in turn increases productivity.

Within the organization. E.g. E. E. At J & A. air Workers are compensated on a weekly basis and they receive just above the minimum wage bracket. work groups Safety needs.g. To sustain a safe operating environment. although they do not work the full eight hours. safe work Physiological needs. training Esteem needs. The kitchen and café area are well ventilated to maintain a cool and relaxing working atmosphere. E. as they are involved in the decision-making process. responsibility Belongingness needs. the kitchen. employees are given different levels of responsibility and recognition. this is seen as an effective motivational factor and has been working very well for the sole trader for the past ten (10) years. Ms. In practise. Workers are remunerated for eight (8) hours a day. creativity.Self-actualization needs. every two (2) years the workers receive salary increment as profitability increases. as well as the cafe is well fitted with strategically placed fire extinguishers and first aid kits. . E. According to the owner. Williams take her team on an all expenses paid outing or dinner to express her gratitude as an employer. Annually.g.g. base salary.g. café workers experience a sense of belongingness as the owner try to make everyone feel like a family.

Williams is not only concerned about profits as a businessperson. because she also sponsors meals to penurious students. This enables her to fulfil some level of self-actualization need according to Maslow’s hierarchy of needs.Ms. Unit 1 Module 3: Business finance and Accounting General Objectives: .

utensils. containers. To identify the main needs for funds and how such needs maybe met 2.1. To differentiate among the main sources of finance Main need for funds in the business Finance was needed to purchase equipment for cooking and to disburse for the first term rent. To understand the roles and functions of finance in the business Specific Objective: 1. The initial capital was used in the acquisition of cooking equipment. Analysis and Interpretation of Data The business was established in the year 2000 with a start up capital of just ten thousand dollars ($10.000). pots. a stove. a fridge and the payment of .

The full rent is paid regardless of holiday time. It has been agreed that future investment in fixed capital is necessary to increase output. Payment of workers and operational expenses are funded with the cash make from daily sales.the first month rent. Equipment purchase by the sole trader with the start up capital: Presentation of data Analysis and Interpretation of Data . Some of the desired future investments include a freezer. a fry master. Money made from the week’s sales is deposited into the same savings account at a local bank for future investment. convenience and save time in preparation of meals. and a wider range of cooking utensils. The venture capital was acquired from a general savings account held by the owner. Rent is paid at the commencement of every term at an undisclosed amount to the school.

This section contains the chats and diagrams to illustrate the results of surveys taken by the student population and employees of the organization. Results for market consumer satisfaction. research conducted with students to determine Diagram 1: Percentage of students satisfied and unsatisfied with the number of meals offered at the café: Diagram 2: Percentage of students satisfied and unsatisfied with the taste of the meals at the café: Diagram 3: Percentage of students thinks that healthy choices are important: .

research conducted with workers to determine .Diagram 4: Percentage of students satisfied and unsatisfied with the level of customer service: Results for market employee satisfaction.

Diagram 5: Number of workers who feel a part of the decision making process: 4 3 2 1 0 Satisfied Unsatisfied Diagram 6: Number of workers that feel they can accomplish tasks within the given time frame given the current kitchen equipment: Conclusion .

which can assist her in making informed decisions. expressing a form of appreciation for work done and providing innocuous working conditions for employees. By closely following her objectives. Her methods of management have proven to be extremely effective in delegating responsibility and increasing productivity. and the student/teacher population of Arima Central Secondary. maintaining sale levels by keep up demand. Ms. it has been understood that the secrets to success are: a high-quality relationship with workers. With reference to the data received. Ms. Williams can evaluate the performance of her business. Williams has been recoding significant amounts of profits therefore her methods of saving and spending has brought her into the success she is today. She is the intelligence behind the entire operation with a well effective and efficient team continuously able to meet the demands of the catering needs of the general public. Recommendations . Over the years.J & A café has proved itself very effective in setting its organizational goals because it has been able to circumvent any conflict among workers by including them in the decision-making process. supplying the student population with a variety of meals and conducting market research to ensure customer satisfaction.

Moreover. Williams. Furthermore. Williams can continue with her methods of saving and financing expenditure. she could consider future expenditure on a motor vehicle instead of paying a delivery van or depending on members of staff for the transportation of foodstuff and supplies. Ms. In this way. For convenience and ease of mobility. Around these times. Williams can adjust her daily output of prepared meals to reduce wastage of food materials. the sole trader can rework her mission statement to include the words ‘healthy’ and ‘clean’. the sole trader should ensure that personal relationships do not encumber production. employees would have clear and distinct roles within the organization.Although her business has been successful. can provide healthier meals to ensure students and teachers receive a balanced diet. That is assigning specific functions to each employee. she can practice segregation of duties with the business. Williams has incorporated successful management principles. there are fewer students at school and if properly notified. Consideration can also be given to expand the business’s capital base in a money market fund or development corporation Appendices . Ms. Although Ms. The headmaster can issue a calendar of events to her so that she can be aware of exam times. Ms.

What is the structure of the organization? 11. How many branches does the business have? 7. How many years has the business been operating? 5. What is the business address? 6. What is the name of the business? 2. What are the business long-term objectives? 9.What are some of the duties for each of the positions held in the business? . How is this objective achieved? 10. Questionnaire used in the interview with the sole trader: 1. What type of business activities does your organization engage in? 4. What is the ownership status of the business? 3.This section contains the questionnaires used to gather primary data taken by the student population and employees of the organization. What are the cafeteria hours? 8.

12.How was your capital sourced? 19.What type of Safety procedures does the business have? 14.What types of capital investment are you considering? 21. Are you satisfied with the variety of meals offered at the school café? . What did you purchase with the venture capital? 20.Do you train workers? 17. 1.Do you sponsor events? 16.How do you motivate workers? 15.How do you fund your daily operations and pay workers? Market Research questionnaire conducted with students to determine customer satisfaction.What was your starting capital? 18.When and how much do you pay workers? 13.

could you make some suggestions as to what improvements could be made. 1.Yes No 2. Market Research conducted with workers. Are healthy choices important to you as a customer of the school café? Yes No 3. Are you satisfied with the level of customer service at the cafeteria? Yes No If ‘no’ to the question above could you state why. Are you satisfied with the taste of the café meals? Yes No If you stated ‘no’ to the above. Do you feel that the owner includes you in the decision making process at work? Yes No . ____________________________________________________________ 4.

Rob Jones. Do you feel that you can adequately accomplish your task within the given time frame given the current equipment in the kitchen? Yes No Bibliography Dave Hall.If ‘no’. 2. please explain _______________________________________________________________________ why. Business Studies. Carlo Raffo. .

Bruce R Jewell. . Susan Hammond. Encarta Encyclopaedia 2007. An Integrated Approach to Business Studies 4th Edition. Business Studies 3rd Edition.