PlayParts Auto

Shop

[CARIBBEAN
EXAMINATION
COUNCIL PRINCIPAL
OF BUSINESS SCHOOL
BASED ASSESSMENT
(PRODUCTION)]
Name: Shaun Walters
Centre Number: 100057
Candidate Number:
Name of School: Kingston College
Name of Teacher: Mr James
Year of SBA: 2017

PlayParts Auto Shop

Table of Content

DESCRIPTION OF BUSINESS .. 1
JUSTFICATION OF LOCATION 2
SELECTION OF APPROPRIATE LABOUR . 3

SOURCES OF FIXED AND WWORKING CAPITALS . 4

ROLE OF THE ENTREPRENEUR .. 5

TYPE OF PRODUCTION 6

LEVEL OF PRODUCTION .. 7

QUALITY CONTROL MEASURES .. . 8

USE OF TECHNOLOGY 9

LINKAGES 10

POTENTIAL FOR GROWTH ... 11

GOVERNMENT REGULATION . . 13

ETHICAL ISSUE 14

BLIOGRAPHY .... 15

Acknowledgement

I would like to than my mother for helping me with the resources to complete my school based
assessment. I would also like to give my sincere gratitude to Ms Groves who gave me the
guidance and support in doing this SBA. Lastly I would like to thank and praise God for giving
me the strength and intellect in doing the assignment.

Introduction

In this SbA the researcher hopes to

Description of Business

PlayParts Auto Shop is a sole trader business, with owner being Shaun Walters. The business will
be based in Jamaica and will sell top quality (both new and used) car parts, car products and will
provide servicing and repair to cars at a low, reasonable and efficient cost. The business will
provide wide varieties of car parts such as Honda, Toyota, Nissan, B.M.W, Mercedes Benz,
Subaru, Ford, and Mitsubishi.

Mission Statement

The mission statement will be to dedicate in providing the best quality car parts, services and
repairs that is at a reasonable cost and to be able to establish a successful relationship with our
customers, our employees, and our suppliers that respects the interests and goals of each party.
The opening hours will be from 8:30 am 5:00 pm, Monday to Friday and Saturday will be from
10:00 am 4:00 pm.

Justification of Location

PlayParts Auto Shop will be located at 12 Keesing Avenue, Kingston 10. The factors/ reasons
that will contribute to the location of the business are as follows:

Proximity to Market. Which mean there are many car lots in the business vicinity that
sell cars, however, during importation many cars get damaged and in most cases looses
accessories such as jacks, spears, tires etc., also many car lots do trading of cars and as of
such, the cars that are obtained will be needed to be reconditioned so they could be sold
again.

Closeness to Transportation Access. The business will be on the main road which is
directly on the bus and taxi routes. The business also has a bus stop at the entrance hence
a lot of walk-in customers.

Affordable production landscape. Consisting of a three story warehouse it is perfect for

the growing inventory, tools and machineries and a section that will houses seven (7) cars
to be repaired/serviced and a parking lot at the front for at least nine (9) cars; in addition
to a 400 square feet customer service/waiting area.

Selection of Appropriate Labour

Position

Mechanics

Type of

Number of

Function of

Why this type of labour

Labour

employees

employees
Required to repair and

is necessary
This type of labour is

maintain different types of

necessary because

vehicles, such as vans,

without cars being

cars, and buses. They

serviced, repaired or

perform restorative and

obtaining the necessary

preventative work on

parts, the business will

gears, brakes, engine, air

not make profit.

Skilled

conditioning, security

Inventory

Skilled

clerks

features, fuel pump, etc.

Keeps track of stock that

As experts in their field,

moves in and out of a

they will be able to

particular location.

provide continuous
support and advice

Manager

Skilled

Responsible for ensuring

whenever needed
To achieve and exceed

the following are true: all

the assigned objectives

employees are doing their

by ensuring that each and

jobs correctly, thoroughly,

every member of the

and on time. Expectations

team achieves or

and goals are clear.

surpasses his/ her

Conflicting priorities are

respective objectives.

addressed and readjusted

as needed.

Customer

Semi-Skilled

representatives

Interact with customers on

Understating the

behalf of an organization.

expectations and mindset

They provide information

of the consumers and can

about products

considerably reduce the

and services, take orders,

risk of business failures

respond

and losses.

to customer complaints,
and process returns.
Security

unskilled

Sources of Fixed and Working Capitals

Fixed Capital
4

These are capital that is durable in character and can be used over an extended period of time
without replacement. Examples of fix capitals are buildings, vehicles, equipment etc.

For the business PlayParts Auto Shop sources of capitals will be depended upon and obtained by
a loan from National Commercial Bank of eleven million dollars ($6,000,000) and personal
savings from the owner of twenty-three million dollars ($2,000,000). These funds will be used to
purchase the property, tools, machinery (for example industrial trolleys, hydraulic jack etc.),
office equipment (for example computers, printers etc.), stock and furnitures.

Working Capital

These capital of a business which is used in its day-to-day trading operations, calculated as the
current assets minus the current liabilities.

For the business PlayParts Auto Shop sources will be obtained from a borrowed sum of three
hundred and twenty thousand ($320,000) from family and friends and also by sales and
promotions that the business makes. On average the sales and promotions that the business
makes is usually six hundred to eight hundred and thirty thousand dollars ($600,000 - $830,000)
weekly. These funds will be used for utilities, wages and stationeries.

Role of the Entrepreneur

Someone who exercises initiative by organizing a venture to take benefit of an opportunity and,
as the decision maker, decides what, who, and how much of a good or service will be produced.
An entrepreneur supplies risk capital as a risk taker, and monitors and controls the business
activities.

Some of the functions are as follows:

To Prepare Plan. This is the first function in entrepreneurship. The entrepreneur of

PlayParts Auto Shop will be responsible to prepare the plan/scheme of his business
operation.

Selection of Site. The entrepreneur of this business will be responsible for the selection
of site for the business to be installed. The entrepreneur would need to find out if his
potential site would carry access points so the public has easy transports to the business.
Example if the site would be near railway station, bus stands and along taxi routes etc.

Provision of Capital. Capital is required to install the business. The entrepreneur will
also be responsible for finding or obtaining the necessary funds for his business. The
capital is the most important part of the business because without it the business will not
operate.

Type of Production

The business will be involved in tertiary production.

These finished products will be transported, stored, insured, adverted and sold by traders. This is
what makes up the Tertiary Production.
PlayParts Auto Shop will obtain their finished goods (example - headlights, vehicle bannets,
doors etc.) from foreign providers in Japan for example Unicom Company Ltd. Also the business
provides services and repairs on vehicles. Some of the services and repairs that the business
offers include fixing break lights, replacing and installing transmissions, engines etc.

Levels of Production

The business will operate as a surplus level of production.

This level of production is adequate to supply local demand and for export. Large industries can
produce large quantities of output to satisfy local consumption and earn foreign exchange from
export. This level of production will be involved in the business because of the imports of stock
that the business obtains from foreign countries such as Japan.

Quality control measures

Two quality control measures that the business will adhere to are as follows:

Visual inspections. The business will inspect the parts for any sign of any disfigurement such as
rust, cracks leakage etc. Sorting and grading the overall condition of the parts.

Another aspect is by housing and maintaining them in controlled temperate and lighting
warehouses, securing them from weather conditions such as rain, wind, and sunlight etc, that can
ultimately cause more damage (example rust) to the parts.

Use of Technology

The two types of technologies that will be used for PlayPart Auto shop are as follows:

Computers - These technologies will be used to enhance the efficiency and the
productivity of the business with the aid of the inventory management system installed on
the computers. This will allow for proper organization, purchasing capability, sales and to
review history
Electronic Crane - The electronic crane it will be used to lift and transport equipment and
components

Linkages
10

We will buy car parts, stationeries, tools and utilities form local and overseas supplies. Backward
linkage is being used.

The linkage will allow the business to have reliable parts and to build a strong bond with the
suppliers.

11

Potential for Growth

Internal Growth

Within the next five (5) years the business will be introducing new brand of cars, an increase in
the size of the warehouses to accommodate the growing inventory, and increase in employees to
accommodate such.

External Growth

As for external growth the business hopes to opens an additional three (3) branches into parishes
such as St. Mary, Trelawney and St. Elizabeth. This will allow the business to be strong a
competitor into the auto parts industry.

12

Internal Growth

4.5
4
3.5

Sales

Inventory

2.5

Employees

2
1.5
Employees

Inventory

0.5

Sales

0
year one

year two

year three

External Growth

5
4.5
4
3.5
3

1-3 years

2.5

4-6 years

7-10 years

1.5
1
0.5
7-10 years

0
Branches

4-6 years
1-3 years

13

Government Regulations

Government regulation is a law that controls the way a business operates. PlayParts Auto shop is
a growing business that must and will obliged to the rules as well. The business will be registered
and a certificate issued from the Registrar of Companies and documents such as the certificate of
registration, general consumption tax registration, tax registration number, National Insurance
Scheme, National Housing Trust and the first Tax Compliance Certificate will be issued to the
business.

Certificate of Regulations: This is to show that the business is legally registered under the
companys act of companies.

Tax Registration: All entity registered both citizens and the business to be identified by this
number for tax purposes.

14

Ethical issues

Integrity
The business maintains a high level of formal integrity. This is how we earn the trust of our
customers. The business is able to maintain this trust in that we dispose of all car parts that have
been destroyed in transportation or have been drastically got rusty and deteriorated. If we do sell
our product that have been deteriorated we would sell them at a discount

15

Bibliography

Robinson, K. and Hamil, S. (2011). Carlong Principal of business for CSEC: With SBA, Study
Guide and Exercises. Kingston, Jamaica: Carlong Publishers.

16

Appendix

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