PRINCIPLES OF BUSINESS SCHOOL

BASED ASSESSMENT
( SBA)
On Production

DD"S TEEN MAGAZINES " WHERE

READING IS FUNTASTIC"

Name: Debbian Lodge

Centre Number:
Candidate Number:
Name of School: St. Marys College
Name of teacher: Ms. Howell

Year of SBA: 2013

Table of Contents
Topics

Pages

Acknowledgement

Introduction

ii

Description of the business

Mission Statement
Justification of location

2
3

Selection of appropriate labour

Sources of fixed and working capital

5
Roles of the entrepreneurs

Functions of the entrepreneurs

Type of production

Levels of production

Quality Control Measures

10

Use of technology

11

Linkages

12

Potential for growth

13-14

Government regulation

15

Ethical Issues

16

Bibliography

17

Appendix

18

Introduction

Inside this School Based Assessment (S.B.A) you will see the entrepreneurs plans and objectives
for their prospective business, DDs Teen Magazines. You will also find information on the
description of the business; location, how capital will be obtained and the roles and functions of
the entrepreneurs. This project will help others who read it by allowing them to know the
necessary steps they should take, if they are interested in becoming an entrepreneur.

ii

Acknowledgement

I would like to express my sincere gratitude to my teacher, Miss. Howell, for her knowledge and
expertise which helped me in the successful completion of this School Based Assessment
(S.B.A).
I would also like to express my gratitude to our heavenly father Almighty God, for providing me
with the knowledge, strength, and the apprehension which guided me in the successful
completion of my S.B.A.
Lastly, I would like to express my gratitude to my parents for providing me with the necessary
finances and incite which assist me in the successful completion of my S.B.A.

Description of the business

DDs Teen Magazine is a partnership business between two sisters, Debra

Lodge and Debbian Lodge. Debra Lodge has over five years experience as a
customer service representative and Debbian Lodge has her degree in sales
and marketing.
DDs Teen Magazine is a part of the manufacturing industry. Magazines will
be produced by purchasing newspapers from the Jamaica Gleaner Company,
and putting the information together. Information from the newspapers will
not be plagiarized. After information has been put together, it will be
reviewed by the editor and printed. Batches of magazines will then be
distributed to stores across the island.

Mission Statement

The mission statement of DDs Teen Magazine will be:

To promote reading among teens in Jamaica, so that they can make
a meaningful contribution towards societys development.

Justification of location

DDs Teen Magazine will be located at 53 Hanover Street, Kingston Jamaica. I chose this
location for various reasons. The following are listed below:

Land Space: There will be availability of sufficient suitable land for this prospective
business, at an economically viable price. It also is a suitable position which will attract
business.

Market Pull: The location of this prospective business will be attracted to sites close to
where potential customers can be found.

Linkage Industries: The location of this prospective business will be near other
businesses on which it depends. It also will be located to other firms in a similar line of
business.

Selection of appropriate labour

3

Labour

Type of
labour

Number of
employees

Managers

Managerial

2 managers

Editors

Skilled

3 Editors

Security
Guards

Skilled

2 Security
Guards( night
and day
Security
Guards).

Janitors

unskilled

2 Janitors

Functions of
employees

Why is this
type of labour
necessary
Planning,
This type of
organizing,
labour is
delegating,
effective to
and
ensure the
motivating
smooth
workers to
operation of
ensure tasks
the business
are
and to enable
effectively
the business
carried out on to make a
time.
profit.
Responsible
This type of
for reading
labour is
information
necessary for
gathered
the effective
before it is
day to day
sold to the
operation of
general
the business.
public.
So that
workers can
finish tasks
delegated to
Responsible
them on time.
for ensuring
the safety
and security
of workers
and patrons
who enter the
premises of
DDs Teen
Magazine.
To ensure the This type of
environment
labour is
is clean and
necessary for
healthy for
carrying out
patrons and
basic

workers.

functions to
make persons
feel
comfortable
within their
working
environment.

Sources of fixed and working capital

Fixed Capital
These are the durable (long-term) assets of a business which are used over a
long period of time and are tied up in permanent use.
Some examples of fixed capital are: land, building etc.
For this prospective business, a sum of two million ($2,000,000) will be
borrowed from The Bank of Novia Scotia Jamaica, and will be paid back
gradually, at a later date. This capital will be used for the purchasing of the
building. The capital will also be used for purchasing of machinery, such as:
computer, printer, point of sale, magnetic stripe reader.

Working Capital
These are stocks of materials; cash, bank balances, and other items required
for the day to day operation of the business and are continually being used
up.
For this prospective business, capital will be obtained from personal savings,
a sum of five hundred thousand dollars ($500,000). And borrowing a sum of
eight hundred thousand ($800,000) from family members. These capitals will
be used for purchasing newspapers, ink to operate the printer, and papers to
print information on.

Roles of the entrepreneurs

The entrepreneurs of this prospective business will perform various roles in
order for DDs Teen Magazine to begin operation.
Some of the roles are listed below:
We will organize the factors of production- bring together all resources
necessary. Human and non- human for the effective operation of the
business.

We will also come up with new and creative ideas that will boost the
production of the business.

We will also come up with the capital necessary for the operation of the
business.

Functions of the entrepreneurs

The entrepreneurs of this prospective business, DDs Teen Magazine, have
various functions that they will have to carry out, in order for the business to
be successful.
Some of the functions are listed below:
Planning: This is the first stage of management. The entrepreneurs of
DDs Teen Magazine will be responsible for setting goals, deciding on
resources needed, and the time line to meet these objectives.
Organizing: The entrepreneurs of this prospective business will also be
responsible for bringing together all the resources needed, in order to
provide the goods magazines).
Evaluating: The entrepreneurs of this prospective business will also be
responsible for accessing output base on objectives set to determine
how well they were met, and what steps can be taken to improve
performance in the future.

Type of production
This prospective business, DDs Teen Magazine, will be engaged in secondary
production.
This involves taking the raw materials from primary production and changing
them into finished goods to be purchased by consumers.
The newspapers that will be brought from the Jamaica Gleaner Company will
be thoroughly read, so that we can get ideas to use in our magazines. These
ideas will be put together and typed, after which they will be printed.
Secondary production is also known as CONSTRUCTION and
MANUFACTURING INDUSTRIES.

Levels of production
This prospective business, DDs Teen Magazine, will be engaged in domestic
level production.
Domestic level production involves producing goods locally, with in your
home country. This level does not involve import from foreign countries.
DDs Teen Magazines will purchase newspapers within their home country,
Jamaica, and use these newspapers in order to create the magazines.

Quality Control Measures

The entrepreneurs of this prospective business, DDs Teen Magazines, have
many measure that are put in place to ensure that the quality of the
materials being issued meet demands of the customers. Some of those
measures are listed below:
A sample of the magazine is sent to the editors, in order for them to check
the content. This is to ensure that the materials being read by the teens
are age appropriate.

Magazines are also double checked by the head of the customer

representative department, to ensure that the free posters that were
promised as a part of the package is available in all the magazines.

Use of technology
Two types of technology that will be employed by this prospective business,
DDs Teen Magazines, are:
Computer
Printer
The different technologies listed above will enhance the efficiency of this
prospective business, DDs Teen Magazines.
The statements below will show how these technologies will enhance the
business efficiency.
Computer: This will be used to type information which will be placed in
the magazines. Pictures will also be gathered with the use of this
technology.
Computers will enhance the efficiency of the business, because it
allows information to be presentable, and easily put together. Before
computers were invented, a type writer was its replacement. This only
allowed information to be typed; no pictures could be formed using the
type writer. Some teens would not be interested in reading magazines
without images.

Printer: This allows the information that was typed to be printed.

Without the printer the hardcopy of the information typed could not be
printed. As a result of this the information could not be put together in
the form of a magazine.

10

Linkages
DDs Teen Magazines will be involved in forward linkage. This occurs when
the finished products of one industry becomes the raw material of another
industry.
DDs Teen Magazines will benefit from this linkage because newspapers will
be purchased in bulks, so they are less expensive. This means the company
will not pay a lot for the newspapers because they will not be bought one-byone.

11

Potential for growth

12

Internal growth
For this prospective business, there will be a great infrastructural expansion
within the next two to three years. We also intend to employ more persons,
purchase more machinery and office equipment.

External growth
This prospective business intends to have different branches in all the
parishes of Jamaica within the next four to ten years. We also intend to make
our company well known overseas and the rest of the Caribbean by forming
Multinational Corporation.

Figure 1: A diagram showing internal and external growth within the next
ten years.

2026
2024
2022
2020
2018
2016
2014
2012
2010
2008

13

Government regulation
The regulatory practices governing the establishment of businesses refers to
the rules and regulations by which persons who wish to establish a business
should be guided. DDs Teen Magazines will have to be duly registered with
the Registrar of companies before business operations can commence. A
certificate of registration will be issued to the company and must be
appropriately displayed in the place of business. DDs Teen Magazines will
also be required to get a copyright license.
Certificate of registration: This shows that the company is operating
legally and the entrepreneurs will not be fined or imprisoned for illegal
operation. The business also could not be terminated for not being
registered.
Copyright license: This is the exclusive right to publish or record a
work. If you use someones work and do not have a copyright license,
this is known as copyright infringement or plagiarism. The business
could be terminated or the entrepreneurs could be fined or imprisoned
for committing the act of plagiarism.

14

Ethical Issues
Ethical issues refer to the beliefs about what is right and wrong behavior or
action.

One ethical issue that DDs Teen Magazines will have to adhere to is:
Keeping promises: Free posters are promised to be available in the
magazines for the customers. If promises are not kept customers will
purchase goods elsewhere and the business will suffer a loss.
If promises are kept customers will have more faith in the products of
the business and will more likely to buy them.

15

Bibliography
Whitcomb, Alan etal: Essential Principles of Business for CXC 2
edition.

16
nd

Car long Publishers (Caribbean) Limited.

Chapter 2: 19-27.

Whitcomb, Alan etal: Essential Principles of Business for CXC 3rd

edition.
Pearson Education Limited (2006).
Chapter 12: 162-182.

17

APPENDIX

PAYMENT FOR EMPLOYEES

Position of employee
Manager
Editor
Security Guard (Day time)
Security Guard (Night )
Janitor
Total

Workin
g
hours
12
hours
12
hours
10
hours
11
hours
9
hours

Lunch Break Hours

Monthly
Payment

Total Payment for

the Year

1 hour and 15 mins

$80,000

$960,000.00

1 hour and 15 mins

$75,000

$900,000.00

1 hour and 15 mins

Take breaks in
between hours

$45,000

$540,000.00

$45,000

$540,000.00

1 hour and 15 mins

$35,000

$420,000.00
$3,360,000.00

18