Description of business Essay
The name of my business is EJ’s Exquisite Liquor. The business is specializing in making, importing and exporting wines and beers. I came up with this business because my uncle is the owner of one and I like wine. This type of business is a partnership type. This business is owned by Edwin De Leon & John De Leon. EJ’s Exquisite Liquor is targeting the regional/international market and is for adults. We guarantee to satisfy all our customers with every visit. EJ’s Exquisite Liquor will be successful because our members take their roles in the company very seriously, we handle our refreshments with care and we are all about satisfying our customers to the best we can.
Justification of location
EJ’s Exquisite Liquor is located this area for three reasons for market pull, for customers going to and from Trinidad or tourist exploring the island in this region. Transport access, we also chose this area because it is close to the Habour so we can save money on transporting goods from a far distance to ship to other islands so it is cheaper for import & export of goods . The last reason the location is great because all the reliable sources such as electricity, water, bank etc. is available close by to ensure the continuity of the business.
Selection of labour
EJ’s Exquisite Liquor has 52 workers. We have 20 skilled workers, 22 semiskilled and 10 unskilled. The skilled workers are as follows: We have ten (10) machine workers who control the machines creating the wines and beers. Ten (10) ingredient mixers who create a new taste for wines and beers and also new types of them. The business also has an accountant who keeps track of daily transactions of money, an executive, and two heads of department one for the skilled and the other for the semi-skilled. The semi-skilled workers are consisted of: the truck operators the company has 4 trucks with two workers each one driving and the other to load and unload goods giving us a total of 8 truck operators. We also have 10 ingredient workers who load the machines with ingredients for operators. The unskilled are the 10 janitors who clean the building. The reason for choosing this labor is because it is always good for the company to be clean.
Sources of fixed and working capital
Both John and I (Edwin) contributed the sum of $450,000. In which $250,000 went to fixed capital and $200,000 went to working capital. All the money was obtained by personal savings, loans from bank (First Citizen) and other loans from our parents and family members. Fixed capitals are machinery and other things in the business that long life which are used over and over in the production of services in a business. Fixed capitals in this business are: trucks, the building, machinery etc. The trucks are used to transport goods (wines and beers) from the factory for sale in and around the island. The building is used to facilitate the machinery and workers to produce the beverages. Machinery is used to help create a finished product of the beverages. Working capital is defined as money and other items that are used up in the day to day running of the business. E.g. money, glass bottle etc. The money is used for buying items to attract the peoples’ attention. The glass bottles are what the wines/beverages are store in.
Role of the entrepreneur
EJ’s Liquor Store is owned by Edwin De Leon & John De Leon. Entrepreneurs are persons who organize and co-ordinate factors of production. They take risk and make decisions and carry out productions. Three of these roles are:
1) Predict what type of beverages I thinks is needed to produce for the public. 2) To make changes to help the business expand both internally and externally. 3) Motivate each worker to help progression within the business.
Type of production
EJ’s Liquor Store is involved in the secondary production. Secondary production is where raw materials are extracted from the Earth and is made into a finished good or products. We are involved in this type of production because we take or obtain raw materials from other businesses and create the beverages.
Level of Production
EJ’s Exquisite Liquor is involved in the surplus level of production. A surplus is an amount of goods produced at a greater amount needed or having a wide variety of goods that is produced for selling or trading it is produce not only to satisfy the domestic wants but also to satisfy other countries. This liquor business produces wines and beers locally but we have grown in business so we chose not only to produce for local consumption but to provide for other countries.
Quality Control Measures
EJ’s Liquor Store produces top class beverages. Two control measures we practice are: to have a health specialist to come in once a week to check the machines and the building to make sure they are proper to make the beverages. We also have to have the beverages taste tested by some liquor testers after production.
Use of technology
Two types of technology that is in the business are: The computers and the beverage machine. The computers are mainly use by the accountants to store information for the future use and information on the daily transactions in the business. The beverage machine is use by the skilled workers after ingredient is added into the compartment. This machine blends them together and the other machine finishes its work.
Potential for growth
EJ’s Exquisite Liquor can grow both internally and externally. Two ways in which we can grow internally are: Upgrading with new and improved beverage machinery. We can get more skilled workers to operate the machines. To expand externally we can open new branches in the regions around the country. We can also partner up with a larger company in the country or regional areas therefore increasing profits and customers.
EJ’s Exquisite Liquor is the owners will register the business as a partnership with the Registrar of Business so that the partnership will be legally recognized as a legitimate business huge business that is obligated to pay taxes because the more profit we make the more tax we are obligated to pay therefore putting a strain on our business. We also have to govern our business with the articles of association to govern the internal and external aspects of the company.
The type of linkage this business will use is backward linkage. Backward linkage will be formed with the producers and suppliers of glass bottles, label designers, automotive company and the business specialize with making beverage machines. This linkage will help maintain and ensure the business survival.
In this company there will be no other liquor store work copied and branded as the property of the business. In this way, the business will be known for its integrity and always have the trust and confidence of its suppliers and customers. This will help ensure its survival and future growth as the market will continue to support the business. No recycling of bottle will be allowed to ensure that he sever the public clean so that they with remain in a healthy condition free from diseases.