Khaddys Egg Supply (KES) Essay

Published: 2019-11-26 21:00:38
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Category: Entrepreneurship

Type of paper: Essay

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Description of Business

Khaddys Egg Supply (KES) will be a sole trader business involved in the production of eggs for the people of Bonham Spring, bakeries, restaurants, supermarkets etc. KES will purchase young layer chick and feed from North Agri-Supplies. We pride ourselves in providing quality eggs and outstanding services to our customers.

Justification of Location

The KES farm will be located in the rural area of Exchange. Reasons for locating the KES farm in Exchange are; It will be more environmentally friendly since there is more land space to rear chicken and less people around hence the odour of the chicken coops will be of minimal effect. The consideration of adequate infrastructure is necessary since the chicken needs proper lighting and water supply. Electricity and water supply is readily available in exchange however in case of problems KES will have a generator for electricity and a tank for water supply. Availability of Customers and qualified worker in exchange and nearby locations. Therefore, it will be of easy access for both the customers and its employees.

Selection of Appropriate Labour

At KES a total of (4) four persons will be employed. There will be both skilled and unskilled workers within the organization to include: The manager who will be responsible for the supervision of subordinates, ensuring they are punctual, properly attired and are customer friendly. The manager will handle all cash and credit transactions and perform all related clerical duties. The Delivery person who will purchase raw material and deliver eggs to customers who request delivery. Two Farmers/Cleaners who will ensure the chicken coops are cleaned avoiding unbearable odours etc. also to oversee the process of egg production and the maintenance of healthy chickens.

Sources of Fixed and Working Capital

KES will use both fixed and working capital. A total of eighty thousand dollars (80,000) will be used to start the business. The Fixed capital will be generated through bank loans (50%), in order to receive the loan KES will use the land title of the business as collateral. The Fixed capital will be used to purchase and maintain the equipments that are used in the production process examples The Egg Packer (PSPC 30), Candler. The working capital will be generated through monetary gifts from family members (10%) and savings (40%). This will be used to buy raw material such as feeding, litter and manage debt and honor the obligation that the company makes as part of its overall operations.

Roles of the Entrepreneur

An entrepreneur is a person who uses his/her skills, talents and initiatives to set up and operate a business venture in the face of risk. The roles of the entrepreneur are conceptualizing, planning, access funds, bearing the risk and reaping the profit or bearing the losses. (Define with use of note book)

Type of Production

KES will be engaged in secondary production which is taking raw materials and converting them into finished or semi-finished products. Raw material will be layer chickens which would produce eggs. Therefore some examples of secondary production that the business will undergo are producing eggs for residents of Bonham Spring, bakeries and supermarket.

Level of Products

KES level of production will be that of domestic, thus involves producing eggs and services for the local market in St. Anns Bay, Browns Town and Ocho Rios.

Quality of Control

The quality control measures that KES will undergo are providing clean litter in nest box therefore eggs will be in clean conditions, and the collection of eggs as frequently as possible to avoid the damage to eggs.

Use of Technology

Various technological devices will be used at the business. These devices includes the Candler which is used to ensure interior quality of the eggs in terms of blood spots, cracks, developing embryos etc. therefore ensuring that the eggs are of good standards and quality. The Egg Packer (PSPC 30) which is used to gently package eggs into 30 cells increasing the rate of production and reducing the chances of mistakes since the PSPC would pack the eggs instead of employees.


KES will be involved in both forward and backward linkages. Forward linkage which KES will be engaged in is producing eggs for residence of Bonham Spring, restaurant, bakeries etc., while the backward linkages will be North Agri-Supplies providing KES with young layer chicks and feeding.

Potential for Growth

KES hopes to grow both internally and externally in the future. The business will grow internally by upgrading and replacing where necessary the technologies, machines, furniture etc. The business also hopes to own its own vehicle, to make deliveries to take out customers. The business will grow externally by having more branches across Jamaica and merging with other suppliers within the egg industry to export to other countries.

Government Regulations

The business will adhere to government regulations such as being legally registered and audited by the companies office of Jamaica, governmental zoning laws. Abiding by these laws will prevent sanction and closure of the business for improper conduct.

Ethical Issue

KES will ensure there is no environmental pollution by proper streamlined where a contract will be signed with the National Solid Waste Company for removal. All statutory deductions are paid over to the relevant governmental agencies. Complying with the environmental laws will prevent complication with the ministry of health which might lead to closure of the business if the problems are not corrected immediately. Paying over all statutory deduction to relevant governmental agencies will prevent paying it in the future, or the matter will be taken to court for further handling according to the laws governing taxation in Jamaica.

Robinson Karlene, HamilSybile, (2001), Principles of Business, Carlong Publishers (Caribbean) Limited

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