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PRINCIPLES OF BUSINESS

SCHOOL BASE ASSESMENT


ON BELLEZA BOUTIQUE
NAME OF CANIDATE: Kimberly Singh

CANDIDATE REGISTRATION NUMBER:

NAME OF SUBJECT: Principle of Business

TITLE OF PROJECT: Belleza Boutique

NAME OF SCHOOL: Diego Martin North Secondary School

SCHOOL CENTRE NUMBER:

DATE SUBMITTED: 17TH November, 2014

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TABLE OF CONTENT

Page

Business Plan 4

Description of Business 5

Location 6

Selection of Appropriate Labour 7

Sources of Fixed and Working Capital 9

Role of Entrepreneur 10

Types of Production 11

Levels of Production 13

Quality Control Measures 14

Use of Technology 15

Linkages 16

Potential for Growth 17

Government Regulations 18

Ethical Issues 19

Appendix 20

I Principle of Business SBA Questionnaire

II Tally of Principle of Business SBA Questionnaires

Bibliography 34

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BUSINESS PLAN

Belleza Boutique will be launched in July 1st 2015 and will provide shoppers with fashionable high-end apparels
with an affordable price tag for teenage and young adult females. The business will provide blouses, dresses,
pants, skirts, and shirts, to satisfy the requirements of the retail market.

Ms. Kimberly Singh will be the business proprietor. She holds a bachelor’s Degree in Business Management and
will have full control of the business. She has the experience in this type of business and will employ 11
personnel. The business intends to expand in the next five to seven years internally hiring more employees and
expanding externally the business will launch new branches in Trinidad and in the Caribbean.

Belleza Boutique will import top of the line quality apparels from a foreign company to meet the demand of
teenage and young adult females and also keep up with seasonal changes in the fashion industry. The business
will be located at the Falls at West Mall. The mall entices a large quantity of people due to the electronic stores,
shoe stores, fast food outlets etc. The business will use a flat organizational structure with the proprietor and10
employees: The proprietor, 2 managers, 1 accountant, 5 sales clerks and 2 cashiers.

Belleza Boutique will serve a narrow target market with niche clothing products, relying on long-term loyalty
from their target customers for success. Their taste in clothing changes rapidly and is hard to forecast so the
business will introduce new products every four months. The price ranges of the apparels will vary on the
economical state of the country and discounts will be given to customers occasionally.

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DESCRIPTION OF BUSINESS

BUSINESS NAME: Belleza Boutique

ADDRESS OF BUSINESS: Western Main Road, Westmoorings, Trinidad and Tobago

TYPE OF BUSINESS: Sole Trader

OWNERSHIP STATUS: Sole Proprietor

Telephone No: 1-868-631-1141 Fax No. 1-868-631-1151 E-Mail Add: bellezaboutique@yahoo.com

Start-up Date: 2015/07/01

Type of Business Activity:

Retail √ Construction

Food Preparation General Service

Tourism Agriculture Other_______________________

Agriculture

Wholesale Distribution

Manufacturing

PRODUCT OR SERVICE AND THE MARKET: NATURE OF THE BUSINESS

Please give brief details of products/service:

Belleza Boutique will import and sell apparels for teenage and young adult females. The apparels will fill
the store with fashionable clothes with affordable price tags

OJECTIVES/MISSION STATEMENT

Belleza Boutique Mission is to provide shoppers with fashionable high-end apparels with an affordable
price tag

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JUSTIFICATION OF LOCATION

Description of the business’s location and its pros and cons

Location: Belleza Boutique will be located at the Falls at West Mall, Western Main Road Westmoorings,
where a large unit will be rented to meet the requirements of the business.

Advantages:
 The mall magnetizes an abundance of people due to its electronic stores, shoe stores, fast food outlets etc.
 Parking availability for over 900 vehicles
 The business will not have to pay land tax because the business unit will be rented

Disadvantages
 Clothing will be supplied for females only
 Clothing will not be popular clothing brand
 Competitors nearby

Access: The mall can be easily accessed with private and public transportation

Name and Location of Competitors:

The name of Belleza Boutique’s competitor is Micels. Micels is located at the Falls at West Mall

Advantages: Micels has been in business for over a decade and has a strong sense of the customers style
when it comes to fashion it has a good market share.

Disadvantage: Belleza Boutique will provide the current stylish top of the line clothing and excellent
customer services.

Parking: At the Falls at West Mall there is over 900 available customer parking spaces with at least 50
vacant at any one time, even on the busiest days which are weekends.

Zoning Requirements: Since that the business unit will be rented and not bought there will be no need to
pay land tax, rates and taxes etc. Only a fixed monthly rent will be paid.

Visibility: Since that Belleza Boutique will be located in The Falls at West Mall there will be no need to
put up sign around the country for advertising because the mall is well established with lots of shoppers
going there. Before the business is launched, there will be television, radio and internet advertising, in
addition to this fliers will be shared out to customers in the mall mainly on a weekend at least three weeks
prior to opening because it is at this time the mall is filled with teenagers and young adult females.

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SELECTION OF APPROPRIATE LABOUR

Organization chart indicating who is responsible for each of the major areas of activity in the business.

JOB TITLE NAME AGE SPECAIL ACCOUNTABLE REASON FOR


SKILL/EXPERIENCE TO SELECTION
Kimberly Singh will
Bachelor’s Degree in launch Belleza
Proprietor Kimberly 37 Business Management Herself Boutique because it is
Singh her dream and she has
the qualifications and
experience
Karissa Turpin will be
General Karissa 34 Bachelor’s Degree in the business’s General
Manager Turpin Business The Proprietor Manager because she
Administration has the qualification
and experience
Rebecca Moonsammy
Sales & Rebecca Degree in Business will be the Sales &
Marketing Moonsammy 31 Management General Manager Marketing Manager of
Manager the business because
she has the
qualification and
experience
Sunil Persaud will be
Sunil 30 involved in the
Accountant Persaud ACCA Level 1 & 2 General Manager business because he is
trustworthy, qualified
and has experience
Ana Bernard 32 The sales clerks will
Anita Davis 23 Caribbean Secondary General Manager work with the
Sales Clerk Crystal James 21 Education Certificate business because they
Kelly-Ann John 27 all have experiences
Stacy Roberts 34
Candace Morrison
Candace Caribbean Secondary and Christine John will
Cashier Morrison 25 Education Certificate Accountant be the business’s
cashiers because they
Christine John 31 are trustworthy and
experienced

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ORGANIZATIONAL CHART OF BELLEZA BOUTIQUE

Proprietor

General Manager

Sales & Marketing


Accountant
Manager

5 Slales Clerks

2 Cashiers

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SOURCES OF FIXED AND WORKING CAPITAL

FIXED ASSETS

Sources State how fixed capital will be sourced

1.
Improvements to store unit/ The Falls at West Mall A short term loan from Republic Bank Limited will be
obtained, this was already approved
2.
Furniture and Fixtures Purchased with the proprietor capital from any
reputable supplier
3.
Vehicle A long term loan from Republic Bank Limited will be
obtained, this was already approved
4.
Office Machinery Purchased with the proprietor capital from any
reputable supplier

WORKING CAPITAL

Sources State how the working capital will be sourced

1. Sourced with proprietor capital from Forever Fashion


Stock Industry overseas, a leading wholesaler in the USA
with excellent reputation in the clothing industry
especially for teenage and young adult females
2.
Packaging Sourced with proprietor capital from Print-a-Pack Co
Ltd

3.
Mannequins and Shelves Sourced with proprietor capital from Best Mannequins
Company, a well-established foreign company

4.
Stationeries and Office Supplies Sourced with proprietor capital from Stationery Plus
Ltd

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ROLE OF THE ENTREPRENEUR

The role of the entrepreneur in relation to the management function to be carried out

 Planning
In the planning process of the business, the proprietor will coordinate with all key stakeholders with the
aim of launching Belleza Boutique.

 Decision Making
The proprietor will decide on the apparels to be bought and sold, product prices and the display of the
products in the store. The proprietor will also make decision on the financial assets of the business and
how the business will settle its liabilities. All decisions will be in consultation with the general manager,
sales and marketing manager and accountant.

 Staffing
Vacancies will be advertised in the local newspapers and online via the internet. After receiving resumes
the proprietor will choose individuals base on experience and qualification, interview them and then hire
employees.

 Controlling
The proprietor will have full control of the overall business giving some level of control to the department
heads. Belleza Boutique will provide products and services at a lower price than competitors offer, brand
recognition, and control the profit margin on their products.

 Communicating
The entrepreneur will communicate with its staff and train them well to communicate with customers,
suppliers and other stakeholders through writing, meetings, suggestion boxes, bulletins, e-mail, telephone,
fax etc.

 Organization (factors of production)


Belleza Boutique will follow a structured organisation process with aim of achieving its goal.

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TYPES OF PRODUCTION.

Extractive (Agricultural, Mining, Fishing)

Construction (building)

Manufacturing (Assembly, Refinery)

√ Service (Transport, Communication, Tourism)

Other (Explain)
_____________________________

The operational plan for each Production/Service type:

Products imported: - all products to be sold at Belleza Boutique will be imported. Payments for those
items will be paid by means of credit card and bank draft through Belleza Boutique’s bank account.

Products imported will be based on the current taste of the clothing style industry for teenage and young
adult females which will be purchased in bulk.

Advertisements of the products and their prices and offers will be on television, newspapers and
on the internet.

The marketing manager and sales clerks will be fully knowledgeable of the products and
with excellent customer service convince shoppers to buy the products.

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FLOW CHART OF BELLEZA BOUTIQUE

FOREIGN
COMPANY
BANK (Credit
card, bank)
BELLEZA draft)
BOUTIQUE
BANK (CREDIT
CARD & CASH)

CUSTOMERS

LOCAL
COMPANY

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LEVELS OF PRODUCTION

Subsistence Surplus/Export

√ Domestic

The Production/Service levels for this business.

Domestic level of production involves provision of goods and excellent customer services. This
Level involves import of stylish top of the line goods from reputable manufacturers from foreign
countries and retailing these same goods to the local market

Reason why this business intends to operate at a domestic level

Belleza Boutique will import apparels from the USA to Trinidad for the retail business to meet the
demands of the customers and to offer them a quality product at an affordable price.

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QUALITY CONTROL MEASURES

Two quality control measures that will be used in this business

The proprietor of Belleza Boutique will ascertain that there will be a consistent top of the line products and will
put measures in place to maintain high degrees of quality.

The importance of these quality control measures for this organization.

 The business will import standard quality apparels from a well establish and reputable supplier for the
USA assurance was obtained from the supplier that and a high level of research will be carried out on the
materials, colours style and current fashion used to make the clothing.

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USE OF TECHNOLOGY

Two kinds of technology that would be utilized in the business

Belleza Boutique will employ two technologies to help the regular operations of the business. They are:

 Computers/ Cash Registers.


 Point of Sale and Peachtree Accounting Software.

Brief description one type of technology to be employed in this business

 The computers/cashiers register will enhance the efficiency of the business because the computers will be
used to help source and purchase apparels for the business, keep records of transactions in the sale of the
goods.

 The Point of sale software will be used with the sales register ,this will record the amount of stock sold
and update the stock balance while the Peachtree computer software will be used by the accountant to
register the financial transaction and to produce data and reports.

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LINKAGES

The kinds of linkages that could be developed for this business:

Belleza Boutique can develop linkages of clothing assembling (foreign), small retail business
(local).

Backward linkage: Apparel assembling (Foreign). Apparels will be obtained wholesale for purchase.
Apparels are bought from foreign producers. Apparels bought from foreign producers wholesale will
permit Belleza Boutique to get discounts when buying materials from foreign manufacturers.

Forward linkage: Small retail business. Belleza Boutique will sell apparels to individual clients

BACKWARD LINKAGE
Fabric is used to
manufacture apparels

BELLEZA BOUTIQUE

FORWARD LINKAGE:
Apparels are then sold
to customers

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POTIENTAL OF GROWTH

The potential growth of the business

Internal Growth: Belleza Boutique will be a great infrastructure expansion 4 years after being launched. We will
also employ more people upgrade with new styles of apparels.

External Growth: The prospective business intends to open new branches in Trinidad and Tobago within the next
five to seven years. We also intend to make our business well known in the Caribbean by forming a
Multinational Corporation.

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GOVERNMENT REGULATION

The government Regulations for this proposed business.

Belleza Boutique will follow the government’s regulation established for businesses in Trinidad and Tobago.

 The business must be registered before it commences operation.


 The place of the business must be maintain a high health and safety standard.
 The business must maintain proper accounting records and file and pay all relevant taxes to the
authorities.

Two reasons why these Regulations are important:

1. Belleza Boutique will be registered so the company can operate legally rather than the proprietor being
fined or even face imprisonment for operating the business illegally.

2. The store environment must be of high health and safety regulations, example if a mannequin is not
properly bolted down and if fell and injure a customer, Belleza Boutique can be sued and even suffer
negative publicity.

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ETHICAL ISSUES

The ethical issues that would be relevant to this business:

 Genuineness of administration in controlling funds of the business if there is a debasement.


 Selling fake clothes under the pretence of originality and charging high prices.
 Paying relevant government taxes on time.
 To be truthful to the customers about quality and price for the product.
 To exercise professional communication when attending to customers.

The consequences of the ethical issues:

 Corruption in finance
Financial corruption can have a number of economic impacts on the business. Some causes of
financial corruption in a business are: loss of revenue, bankruptcy, fraud etc.

 Possible of bad reputation.


Belleza Boutique having a bad reputation can influence the business into losing customers to
competitors, degrade the image of the business, loss of revenue and trigger the business the spend
un-budgeted funds on marketing, research, new customer acquisition etc.

 Loss of sale
Customers may reduce to demand of product which they are dissatisfied with.

 Loss of customer
Staff being dishonest and not communicating well with customers can drive them to competitors
and not return.

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APPENIX

QUESTIONNAIRE

Belleza Boutique
This questionnaire is being done as part of the requirement for the School Based Assessment
(SBA) in Principle of Business.

Any assistance given will be greatly appreciated. All information given will be kept strictly
confidential.

Thank you,

________________
Signature

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Questionnaire

1. Sex: Male Female

2. Age: 13 – 15 16 -18 19-21

3. Marital Status: Married Single Divorced Separated

4. Ethnicity: African Amerindian Caucasian Chinese

Indian Mixed Syrian Other

5. Occupation: Employed K Unemployed

Student Self Employed

6. Where do you usually take inspiration for new purchases?

Friends Family Styles in store

Magazines Celebrities Other

7. What external elements drive you to a clothing store?

Exterior Signs (SALE, Promotion) Design of Doorway Display Windows

Display Windows Size of the store Location Other

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8. What is your first impression upon entering a fashion store?

Colour Schemes Theme Wallpaper Flooring

Lighting Music Scent Other

9. How often do you purchase a new item of clothing/accessory (bags etc.)?

1 – 5 times per year 5 – 10 times per year Once a month

2-3 times a month 4-7 times per month 8+ per month

10. Where do you most frequently acquire clothing?

Department Store Boutique Discount Store

Online Custom Other

11. What is your main criterion when purchasing clothing?

Brand Colour Comfort Material

Organic Price Quality Style

12. When purchasing a new item, do you buy a matching outfit item? (shoes, hat, bag, coat)

Never Not very often Sometimes

Very often All the time

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13. What amount of clothing do you buy when on sales?

Less than 5 5 to 10

10 - 15 More than 15

14. Are you interested in celebrities fashion labels?

Yes Somewhat No

15. When shopping for clothes, do you:

Return to the same shops

Go in due to the window display

Try new shops

Research store before visiting it

Go to shops with special offers

16. If you like the store’s atmosphere, do you want to look around/stay longer?

Yes Maybe No

17. Does the store’s atmosphere encourage you to buy?

Yes Maybe No

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18. What Point-of-purchase (the till/cash desk) variables encourage you to make additional purchases?

Store cards leaflet Product display (e.g. some small accessories)

Posters Price display (e.g. Bargain Boxes)

19. What human elements in a store definitely affect your shopping experience?

Customer Service Employee characteristics

Busy store Customers in store

20. How much do you spend buying fashion merchandises per month? (Clothing, Footwear, Accessories etc.)

$50 TT $80 TT $100 TT $140 TT

$300 TT $500 TT $700 TT

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TALLY OF PRINCIPLE OF BUSINESS SBA QUESTIONNAIRES

1. Gender
25

20

15

10

0
Female Male

2. Age
30

25

20

15 2. Age

10

0
13 - 15 16 - 18 19 - 21

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3. Marital Status
50
45
40
35
30
25 3. Marital
Status
20
15
10
5
0
Married Single Divorced Separated

4. Ethnicity
25

20

15

4. Ethnicity
10

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5. Occupation
35

30

25

20

15 5. Occupation

10

0
Employed Unemployed Student Self Employed

6. Inspiration for New Purchase


16
14
12
10 6.
Inspiration
8
for New
6 Purchase
4
2
0
Friends Family Styles in Magazines Celebrities Other
Store

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7.Element That Drive You To a Clothing Store
25

20

7.Element
15
That Drive
You To a
10 Clothing
Store

0
Exterior Sign Design of Display Display Location Other
Doorway Windows Window Size

8. Impression Upon Entering a Fashion Store


35

30

25

20 8. Impression
Upon
15 Entering a
Fashion Store
10

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9. Purchase of New Item of
12
Clothing/Accessory
10

8
9. Purchase
6 of New Item
of
Clothing/Acc
4
essory

0
1 - 5 times 5 - 10 times Once a 2 - 3 times a 4 -7 times a 8+ per month
per year per year month month month

10. Acquire Clothing Frequently


35

30

25

20 10. Acquire
15 Clothing
Frequently
10

0
Department Boutique Discount Online Custom Other
Store Store

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11. Criteria When Purchasing Clothing
18
16
14
12
11. Criteria
10
When
8 Purchasing
Clothing
6
4
2
0
Brand Colour Comfort Material Organic Price Quality Style

12. Purchasing Matching Outfit Item


30

25

20
12.
15 Purchasing
Matching
Outfit Item
10

0
Never Not very often Sometimes Very often All the time

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13. Clothen Purchase When on Sale
30

25

20
13. Clothen
15 Purchase
When on
Sale
10

0
Less than 5 5 to 10 10 to 15 More than 15

14. Interest in Celebrities Fashion Label


35

30

25

20 14. Interest
in Celebrities
15 Fashion
Label
10

0
Yes Somewhat No

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15. Shopping For Clothen
25

20

15
15. Shopping
For Clothen
10

0
Return To The Go In Due To Try New Shops Serch Special Offers
Same Shop Window Display Beforehand Shops

16. Store's Atmosphere Makes You Stay


30
Longer
25

20
16. Store's
Atmosphere
15 Makes You
Stay Longer
10

0
Yes Maybe No

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17. Purchases Encouraged By Store's
25
Atmosphere

20

17.
15 Purchases
Encouraged
By Store's
10
Atmosphere

0
Yes Maybe No

18. Encouragement of Additional Purchases


25

20

18.
15
Encouragem
ent of
10 Additional
Purchases

0
Store's card leaflet Product display Poster Price display

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19. Affects of Human Elements in a Store
45
40
35
30
19. Affects
25
of Human
20 Elements in
a Store
15
10
5
0
Customer service Employee's Busy store Customers in store
characteristics

20. Expence On Fashion Merchandise Per


12 Month
10

8
20. Expence
6 On Fashion
Merchandise
Per Month
4

0
$50 TT $80 TT $100 TT $140 TT $300 TT $500 TT $700 TT $1000 TT

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BIBLIOGRAPHY

Robinson, K & Hamil, S (2011). Principle of Business for CSEC, Jamaica: Carlong Publishers.

Marshall, T (1999). Principle of Business for CSEC, United Kingdom: Nelson.

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