Hansel Charles 1605510154

CARIBBEAN EXAMINATIONS COUNCIL

CARIBBEAN ADVANCED PROFICIENCY EXAMINATION
ENTREPRENEURSHIP UNIT TWO
INTERNAL ASSESSMENT

Research Project: Business model of proposed business venture

L’Tech

Name of Candidate: Hansel Charles

Candidate Number: 1605510154

Name of School: Speyside Secondary

Centre/Territory: Trinidad and Tobago

Centre Number: 160551

Name of Teacher: Mrs. Ginelle Dillon-Sheppard

Year of Examination: 2017

Date: April 15th, 2017

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Acknowledgement

It is with a great sense of profound gratefulness and humbleness I take this opportunity in

acknowledgment of the many benefactors who have helped with the completion of this SBA.

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

I would like to express my sincere gratitude to my teacher, Mrs Dillon-Sheppard, for her

knowledge and expertise which helped me in the successful completion of this School Based

Assessment (S.B.A).

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.

TABLE OF CONTENTS
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Report..............................................................................................................................................4

Mission/Vision Statement............................................................................................................4

History of Business......................................................................................................................5

Objectives.....................................................................................................................................6

Value Proposition.........................................................................................................................7

Beneficiary...................................................................................................................................8

Operations....................................................................................................................................9

L’Tech Organisation Structure................................................................................................10

Culture....................................................................................................................................11

Unique Skills..........................................................................................................................12

Technology.............................................................................................................................15

Resources................................................................................................................................16

Product Differentiation...............................................................................................................17

Income Generation.....................................................................................................................19

Growth.......................................................................................................................................21

Financial Request-Start-Up Funds Needed and Likely Sources................................................23

Financial Statements..................................................................................................................24

Balance Sheet.........................................................................................................................24

Income Statement...................................................................................................................25

Cashflow.................................................................................................................................26

References......................................................................................................................................28

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Report

Mission/Vision Statement

Mission Statement

To provide customers with a new beginning in their

technological life

Vision Statement

To become the leading provider of technological devices and

systems throughout Tobago

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History of Business

L’Tech is the proposed name of the business venture, which will ideally be located on Tobago

along the Milford Road, Scarborough Esplanade area. This area is ideal because it’s a beautiful

area that will attract potential customer because of the vicinity to the ocean and the area rich is

pedestrian traffic, also the costs to travel to this area will be not much, making it easier for

customers and workers to get there.

L’Tech is a sole trader business that seeks to provide customers with the best and latest in

technological devices such as unregistered phones, computers, gaming consoles and other

devices, they also repair electronic device such as tablets, phones, computer, etc., for customers

that are interested in the service. The business hours are from 9:00 am to 5:00 pm, five days a

week, it also isn’t open on public holidays.

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Objectives

1. To demonstrate the basic market and economic feasibility of the proposed venture.

2. To develop an innovative business idea and translate it into a well-conceptualized business

concept.

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Value Proposition

At L’Tech offers both goods and a service, it value is created for customers need for technology.

The goods that are offered at the business are technological devices such as phones, computers,

gaming consoles, laptop and other devices, along with variess accessories for the varied

products. The business’ products would be made accessible to customers at the store but to other

businesses, instutions even other tech stores around Tobago but not limited to Tobago only. A

repair service for various electronic device such as tablets, phones, computers etc., will be

offered to the customers by the business.

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Beneficiary

The beneficiaries of the products offered by L’Tech are person interested in technology device,

doesn’t have to be high tech devices. They are also for anyone who needs a technological device

to be repaired whether it was bought at the business or at another. Other beneficiaries are the

business owners who are interested in having our technological products for their organizations

such as hotels, guesthouses, industries and other tech businesses.

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Operations

L’Tech structure and systems are built from the internal capabilities of the business (its

organisational structure and culture), including unique skills, technologies, resources, and

benefits from products that could be patented.

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L’Tech Organisation Structure

Owner

Manager

H. Technician H. Finance H. Maintenance H. Salesperson

Chain of Command
Technician S. Boy S. Boy Security Cleaners S. person S. person

(Narrow) Span of Control

The organisation chart above shows clearly the structure of the business and direct line of

authority flowing from top to bottom, along with the number of employees within the

organisation which is thirteen.

The line that is labelled span of control is narrow which indicates that a single manager or

supervisor oversees few subordinates. The line that is labelled chain of command shows the line

of communication between persons in a supervisory position to his or her subordinates.

The business has a flat organisation structure, it has few or no levels of middle management

between supervisors and employees. The flat organization model promotes employee

involvement and by elevating the level of responsibility of baseline employees and eliminating

layers of middle management, comments and feedback each all personnel involved in decisions

making more quickly.

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Culture

L’Tech embraces a culture that encourages its customers to voice their opinions when it comes to

the goods and services offered. This is to maintain a high standard of quality products and

services which includes customer service. L’Tech also encourages a culture where the workers

are encouraged to participate in innovation, they can come up with ways and ideas to make their

work better and easier while also coming up with ideas to improve the range of products that can

be provided by the organisation.

The business also has a culture in which it employees are given an 10% discount on certain

products with the organisation. Also at the end of the month the Salesperson that generates the

most sale gets a reward which varies from (cash rewards to weekend getaways, etc.), this

encourage to employees to take pride in their work daily.

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Unique Skills

The organisation basically has twelves (12) employees including the manager, the organisation

varies in labour that includes unskilled, semi-skilled, skilled and professional. To gain a work

within the business venture, you must acquire the skills, experience and qualifications needed for

position in which you request to work as.

Employees within the business organisation would further be sent to do different courses and

workshops that correspond with their role in the venture, this is to ensure that their quality of

work and professionalism is maintained and up to date with the latest trends.

The following is a list that indicates the employees required qualification, experiences, labour

type, duties and working hours.

Job Duties Qualifications Experience Labour Working

Type Hours
Manger This person oversees the Must have a degree Must have Professional 9-5
daily operations within in Business experience in
the venture while Management and Human
maintain quality control. Principles of Resource and
Ensure that employees Business and Business
are fulfilling customer certified in human management and
needs. They are also in resources have good
charge of recruitment of communication
staff, promotion of skills.
workers, discipline and
welfare of workers.
Cleaner To clean the building A minimum of two Should be Semi-skilled 8-4
before work begins and subjects certificated by a
to clean it after work cleaning agency
ends, also to take care of from being
any spills or incidents trained
during the day

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Security To keep the business A minimum of two Should have a Semi-skilled 8-5
secure during a days’ subjects certificate from
work. being trained by
a security
agency
Stock Boys They will be collecting A minimum of three Should have to Semi-skilled 9-5
(2) the items that are subjects (including capacity to do
brought by the business. either Mathematics hard work
Having them organized or English) including a lot
and to bring them to the lifting
salesperson when a
customer requires a
product.
Technician (2) Will be fixing the Must have at least 5 Should have at Skilled 9-4
- one will be computers, phones and subjects least 2 years of
chosen to be other devices that (Mathematics, working as a
head of customers bring in to be English, Electronics, technician
technicians fixed. IT any other subject)
Head of This person oversees the A minimum of five Should have at Skilled 9-5
Finance finances with the venture subject that includes least two year of
(which includes keeping Mathematics, working as an
cash flow records, English and accountant and
accurate and up-to-date Principles of has leadership
accounting records, etc.) Accounts skills
They directly oversee the Or the person has a
stock boys and the stocks degree/certification
within the business in accounts along
ensuring all products are with a minimum of
accounted for. five subjects
Head of This person oversees the A minimum of three Should have Semi-killed 9-5
Maintenance maintain of the venture subject that includes leadership
which includes keeping Mathematics or experience and
the location safe, along English. has at least a
with maintaining staff And/or a certified year experience
record. They directly safety instructor as a safety
oversee the cleaner and instructor
security.
Salesperson/ They do the cashing on Must have at least 3 Should be Semi-skilled 9-5
Casher/ the items and interact subjects updated on
Computer with the customers, (Mathematics, technology,
opertors_3- explaining what they ask English and any knows the
one will be about the devices. Also, other subject product main
head of sales will be using the features. Also
computers to check if have patience to
what the customers are deal with the
asking for are available. customers.

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Technology

L’Tech is an organisation that relies on a lot of technological system and equipment to enhances

the business and to make it more efficient. The business would also employ the Management

Information Systems (M.I.S.) for collecting, processing, storing and retrieving data which is then

used to accomplish a task. L’Tech uses the following two types of M.I.S.:

 Office Automation System (O.A.S.)

Office automation refers to the various computer machinery and software used to digitally

create, collect, store, manipulate, and relay office information needed for accomplishing

basic tasks. It relies heavily on LAN, which allows users to transfer data, mail and even voice

across the network. All office functions, including dictation, typing, filing, copying, fax and

records management. Some examples of these systems are fax machine, printers and scanner,

image processing, telephones, electronic publishing (such as word documents), electronic

communication etc.

 Transaction Processing System (T.P.S.)

Transaction processing is a type of computing that divides work into individual operations

called transactions. A transaction processing system (TPS) or transaction server is a software

system, or software/hardware combination, that supports transaction processing. Some

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examples of this systems that are used are inventory control system, point of sale terminals,

barcode reader, payroll systems, order processing systems, systems for payments and funds

transfers etc.

Resources

There are different resources that L’Tech would acquire to its advantage, these resources are

natural resource, human resource and capital resource. These resources would enhance the

business in terms of productivity. The following table presented are some examples of the three

types of resources used in the business.

 Natural resources:

The main natural resource used within this venture would be land (where the venture is located),

water (for the use of the employees),

 Human resources:

The people that work within this organisation are referred to human resources and they must be

skilled, educated and knowledgeable to operate effectively and efficiently. The term human

resources also refer to the function of hiring, training, managing and terminating these

employees.

 Capital resources:

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The business requires various tools and equipment such a wielding machine, phone repair kits,

etc. to provide the repair service to our customers. The business would use equipments such as

office supplies, furniture and computers these would refer to the term fixed capital. Capital

resources would also include cash, lines of credit, bridge loans, finished inventory, supplies of

materials and other saleable assets.

Product Differentiation

The products offered by L’Tech can be differentiated from other products by its operational

excellence, product quality, cost, and network.

Operational Excellence

L’Tech could provide its customers quality service and professionalism. The employees are well

trained in the art of customer service, which allows them to have friendly and generous attitude

towards customers daily. The business encourages its customers to voice their opinions when it

comes to the goods and services offered.

Product Quality

The products offered at L’Tech are valued by its customers. At our business, there will be various

products that varies in different physical feature, such as size, colour, top brands and system

features. Whereas for our cell phone they would vary from different ranges; flagship, mid-range

and low end, giving customers an option whether of salary and taste. All items bought at the

venture would be placed with bags that are well labelled with all our information such as the

business name, logo, location, contact information etc.

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Cost

At L’Tech the products offered are reasonable price within different ranges that varies with the

product making easier on our consumers’ pockets. Also, according to the seasonality of demand

there will be sales and discount on all products such as Valentines, Easter, Thanksgiving and

Christmas etc. Also, there will be loyalty cards for loyal customer after a few years of purchasing

at our business.

Network

L’Tech has a network agreement with the providers within our region that provides our business

with our technological products, these providers include Samsung, HP, HTC, LG, Dell, Apple

etc. The business uses various advertising agencies to our products and services advertised

physically with the use of billboard, also with social media agencies such as Facebook, Twitter,

Instagram, etc.

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Income Generation

L’Tech will generate income using different strategies, some of those are through pricing,

volume and revenue sources

Pricing

Strategically pricing of our products is one wat of generating its income. Pricing strategies that

would be used is pricing at a premium, this is setting costs higher than their competitors it will be

most effective in the early days of a product’s life cycle when selling premium products (such as

iPhones and Samsung Galaxies), the price skimming strategy would then be applied to those

products. The pricing of different products would be varied based on the market’s demand and

bundles would be applied to products that aren’t in demand by the market. Therefore, the prices

can be adjusted to obtain the best possible income and profit.

Volume

Income would be generated by increasing the number of customers, this would be done by

selling our products to other businesses and institutions. Also by increasing our average

transaction size which means you’re trying to get each customer in to purchase more, this is

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typically done through a process called upselling. The more items the customer purchases, the

more they spend, and the more revenue is generated.

Revenue Sources

In addition to the products and services provided at the business venture these are some

alternative sources of revenue used to create income:

 A delivery services, with a price charged based on distance and accessibility of location

would also generate income.

 A repair service where the customers are given an option to have their technological devices

repair at the venture.

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Growth

Internal

Within the course of a five-year period see that the business gain a greater reputation. The

venture would gain more customers also on a more frequent basis. With gaining more customers

the number employees, the organizational structure of the business would need to be improved.

Owner

Manager

H. Technician H. Finance H. Maintenance H. Salesperson

Chain of Command
Tech. Tech. S. Boy S. Boy S. Boy Security Cleaners Sales. p Sales.p Sales. p

(Narrow) Span of Control

This Organization Chart shows a very clear and direct line of authority flowing from top to

bottom, of the increase in staff.

With the increase of customers, the use of technology and need for employees will also increase.

This would help in the case of keeping account of the customers and their orders, while more

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equipment would be needed such as products and parts for the repairs including tools such as

welding machines, etc.

External

During a five-year period, my business has increase in customers. The scale of production in the

venture has changed from small to medium, with the change of scale of production, my business

will be expanding to other parts of the country as in opening other chain stores in places like

Crown Point and Roxborough.

With expanding to other venues, the technology will be updated to ensure that each other chain

stores are connected to each other, with that connection each business could then recommend

which location to visit if one store doesn’t have the product the customer requires. The systems

of each store would be updated to acquire information/data from each store using M.I.S such as

Personal Management Information System and Office Automation Systems.

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Financial Request-Start-Up Funds Needed and Likely Sources

L’Tech would need to obtain finance for the business start – up and to source its fixed and

working capital. The capital for the venture would be from my personal savings and a loan from

the Business Development Unit at the bank.

 Personal Saving

From the business owners’ savings, thirty thousand dollars ($30,000.00) would be geared

towards the funding of the business’ working capital, this would be the cash needed for

the day-to-day running of the business and begin paying employees, also to buy materials

such as phones, computers etc. and parts for repair.

 Bank

A loan of approximately one hundred and twenty thousand dollars ($120,000.00) from

the BDU, the business owners’ personal vehicle worth $50,000.00 and house worth

$50,000.00 would be used as collateral for the loan. $100,000.00 of that loan would be

used to fund the fixed capital with the business, this would be spent on machinery such as

computers, security cameras, etc. also used for the products.

The total start-up capital would be $150,000.00. which will be kept for a long time. The

remaining $20,000.00 would be keep at the bank, for emergency needs.

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Financial Statements

Balance Sheet

L’TECH
BALANCE SHEET
September 30, 2016
Fixed Assets Equity
Premises 250,000 Owners’ equity 30,000
Furniture 20,000 Capital 210,000
Machinery 20,000
Total Fixed Assets 290,000 Long Term liabilities
Bank loan 120,000
Current Assets
Debtors 10,000 Current liabilities
Cash (in hand and bank) 30,000 Creditors 20,000
Inventory 100,000 Accounts Payable 30,000
Total Current Assets 140,000 Accrued Expenses 20,000

Total Assets 430,000 Total Equity and Liabilities 430,000

The balance sheet shows L’Tech assets, liabilities and owners’ equity, it also provides the venture

with an estimate of its financial position on a given date.

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Income Statement

L’TECH
INCOME STATEMENT
Period ending December 31, 2016
Sales Revenue
Net Sales 1,200,000
Cost of goods sold 400,000
Gross Margin 800,000
Operating Expenses
Selling expenses 200,000
Administrative expenses 200,000
Total Operating Expense 400,000
Net Income 400,000

The income statement above show the owner and manager at L’Tech whether the venture is

making a profit or experiencing a loss during the year of 2016. It also shows how much income

is made on sales and how much is spent on the operations of the business.

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Cashflow

L’TECH
CASH FLOW STATEMENT
For period November 18, 2016
Inflow Outflow
Operating activities
Sales revenue 1,200,000
Operating expenses 800,000
Net total of operating activities 1,200,000 800,000

Investing activities
Premises (yearly payment) 50,000
Furniture 20,000
Machinery 20,000
Net total of investing activities 90,000
Financing activities
Loan Payment (yearly payment) 30,000
Creditors 20,000
Accounts Payable 30,000
Accrued Expenses 20,000
Net total of financing activities 100,000
Total 1,200,000 990,000

Net increase in case 210,000

Cash at the beginning of the period 1,200,000
Cash at the end of period 1,410,000
The purpose of this cash flow statement is primarily to provide information on cash receipts,

cash payments, and net change in cash resulting from the operating, investing and financing

activities for a selected period. The Cash Flow statement above shows how cash go in and out of

the venture L’Tech for the period November 10, 2016.

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References

 Marshall, T. (2000). Principles of Business for CXC. United Kingdom. Nelson.

 Stimpson, P. & Harvey, Y. & Hemlee, D.S. & Latty-Morrison, J. (2011). Principles of

Business for CSEC. Nelson Thornes Ltd.

 Whitcomb, A. with Barnes, M. (2009). Essential Principles of Business for CSEC. Longman.

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 Stephens-James, L. B., Bowen, M. M., Joseph, C. C., Gittens, F., Pounder, P., K'nife, K.

A., . . . McDonald, K. A. (2014). Entrepreneurship for Caribbean students. Kingston: Ian

Randle.

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