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Business Analysis for Candle Production

1) The document describes the contextual, theoretical, and historical framework for an aromatic candle company located in Zipaquirá, Colombia. 2) It explains that Zipaquirá has approximately 100,000 inhabitants and that the commercial area represents more than 50% of the economic activity. 3) It details the materials and supplies needed to produce aromatic candles and the manufacturing process.

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0% found this document useful (0 votes)
13 views8 pages

Business Analysis for Candle Production

1) The document describes the contextual, theoretical, and historical framework for an aromatic candle company located in Zipaquirá, Colombia. 2) It explains that Zipaquirá has approximately 100,000 inhabitants and that the commercial area represents more than 50% of the economic activity. 3) It details the materials and supplies needed to produce aromatic candles and the manufacturing process.

Translated by

ScribdTranslations
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

CHAPTER II FRAME OF REFERENCE.

Once a selected business idea is in place, it is necessary to do a preliminary


analysis, in this case, starting from a contextual framework that allows for the identification of the
environment in which the company will be located, with an observation of the aspects
geographical, socioeconomic, cultural situation, among others, this observation allows
infer about the possible clients, sales capacity, competition, situation of
municipality, etc. Now then, one must proceed with a theoretical framework with which one
understand the supplies and materials needed, the way to use those materials,
the procedure to carry out the product, demand for it, among other aspects,
In relation to the historical framework, a review of historical background is made of the
materials and supplies that production requires; to conclude, the company must be
under laws and legal norms, starting with the documents for its formalization, and by
last but not least, the observation of the regulation of rights
author.

1.5. Contextual framework.

The geographical location of the company is in the municipality of Zipaquirá,


La Concepción neighborhood at the address 3rd street 1-78. Zipaquirá is approximately
100,038 inhabitants according to Zipaquirá. (n.d.). Municipalities of Colombia.

The neighborhood of La Concepción has around 200 to 300 inhabitants, where the majority
of its inhabitants oscillate in the second and third strata, generally families have
a monetary income not greater than two or three minimum monthly salaries per family,
Regarding the social and cultural environment, the neighborhood is quiet, with a simple appearance.
where Colombian tradition and customs are reflected. Near the neighborhood there is a school
the public which benefits in the education of the children and young people who live in their
surroundings, it should be emphasized the great variety of small shops distributed without
a lot of distance in between in the sector, despite this there is no
direct competition, that is to say, there is no store focused on candle sales.
aromatic. The neighborhood is located at one end of the municipality, therefore it
green areas are found which are visited for recreational activities
familiar, which contributes to its economy.
Regarding the municipality of Zipaquirá, the page of the municipal mayor's office
Zipaquirá. (09/11/2017) states 'The commercial part represents more than 50% of the
economic activities developed in the municipality; tourism is a key aspect to highlight
thanks to the Salt Cathedral, which could meet the demand of approximately 100
years and which receives more than 500,000 national and international tourists per year.
Figure 1

1.6. Theoretical framework.

To understand, the candle is a piece of paraffin or wax that carries inside it


a wick, which protrudes to be lit. This wick is made of cotton or
of fiber, arranged in a spiral. Sail. (s.f.). Concept Definition.

The company in this case leans towards making scented candles, due to the importance
and the benefit of having an aroma that enhances the environment and positively stimulates the
human emotions; according to a web article, it is described that 'the inhalation of certain
aromas provoke in us different sensations, from the deepest relaxation to
a drop in energy. Floral, fresh, fruity, vegetable scents... produce
positive reactions in our body. In addition, the designs of scented candles
they are so beautiful and simple that they fit perfectly into the decoration of our
house. We can change the candle from one room to another depending on our
needs. Wine candles are the latest trend in aromatherapy for our
house. Candles, aroma, and decoration. (29/03/2017). The blue bike.

For the production of the product, a raw material of paraffin or wax must be available.
The company needs and finds the GV-35 wax, wicks or strands, variety of.
colorants and essences, besides this the company must implement materials such as
as a thermometer, silicone molds, aluminum or alternatively glass containers, each
mold of different sizes and shapes, pots, jugs with a handle that can withstand high temperatures
temperatures, medium-sized knives and ladles. Make scented candles.
Great evening materials for your creativity.

Before starting the production of scented candles, the partners naturally take
take into account recommended protective measures to avoid possible accidents, such as
as mentioned on the Hacer Velas website. (n.d.). which explains the following
As self-protection measures, the 3M protective glasses are very interesting.
just like the gloves. Paraffin auto-ignites at temperatures above 100°C, this does not
it means that at 101°C it will self-ignite, but we must prevent this
possibility, a good tool is the thermometer. When the paraffin ignites
It is enough to smother the flames by covering the container (with a pot lid or cloth)
humid)

Undoubtedly, the thermometer contributes to the prevention of accidents and quality of


the candles. It is resistant to physical and chemical agents, making it a utensil
useful when handling wax; temperature control is paramount, as some
the finishes of the candle will depend on the temperature of the wax or paraffin that is being used
using. When the wax is melted, the thermometer should be immersed, once
It is gently cleaned before the wax or paraffin hardens. Thermometer.
(s.f.). Great evening.

It is important to highlight that there are types and differences between wax and paraffin, which can be found
animal-based wax, or bee wax, which is a colored substance
yellowish, it is a wax used since ancient times, also found is beeswax
white, which is refined and bleached, the temperature of this wax ranges between
60° and 70°C. Another type of wax commonly used is stearin, which is a kind of wax that
it comes from the fat of animal fat and complements the paraffin, stearin has a
melting point of about 70°C; on the other hand, there is mineral wax or paraffin
(macrocrystalline) this is a wax extracted from the mixture of saturated hydrocarbons
petroleum derivatives, it is white and odorless, its melting point varies
between 50° and 80°c. Difference between wax and paraffin. (02/07/2015). Great evening.

The candle manufacturing process involves melting the wax in a container.


melt directly or in a water bath depending on the wax being used, a
once melted, the essence is added without exaggerating in quantity due to the fact that the wax
becomes more inconsistent, in the same way the dye is used in very little
amount considering the intensity of color, and color preference that the customer desires
or the company partners, it is necessary to use the thermometer and take into account
approximately 62° before adding the mixture to the mold (the mold must be
previously greased before the mixture is added) or selected container, the
the wick or candle wick must fit the size of the candle, finally it is left to cool and with
with great care, the candle is removed from the mold (in case a glass or metal container is not used).
How to make homemade candles. (n.d.). Making candles.
On certain dates of the year, especially during the December season, sales
increase by 60% according to the digital magazine Portafolio (06/12/2018). A tradition that
it is maintained year after year in Colombia and even in several parts of the world, that is why
important dates such as Holy Week, Valentine's Day and the
friendship, 7 of candles, etc.

1.7. Historical framework.

The making of scented candles is a result of history through


years of different inputs and materials, that is why each material used in the
Candle production is important and significant, to begin with, it is necessary to explain
the evolution of candles.
The use of candles dates back thousands of years, as far as the first ones.
civilizations, which found themselves in the need to improve light beyond fire
from the bonfire and for this they used wooden sticks wrapped in tallow, the problem of
these first animal tallow candles had a very bad smell. A change
important since the Middle Ages arrived with the growth of the whaling industry to
the late 18th century with the use of the crystallization of sperm oil with which
they made candles until their fall. The main advancements in the candle industry
took place in the 19th century with the discovery of stearic acid and paraffin,
that allowed the creation of a durable, economical candle with no bad smell. Today, in the middle of the century.
XXI, candles are regaining their popularity, with endless styles, of all kinds of
figures, shapes, sizes, smells, and colors that we mainly use for decoration,
ceremonies, celebrations, etc. Candles: origin and history. (07/05/2019). Baumé.
Paraffin is the raw material for the production of the company and the basis of the production.
from most candles around the world, and as mentioned earlier, not
it has always been like this. Paraffin wax is commercially produced in the mid
the 1800s after chemists learned to separate the substance
real petroleum wax and then refine it to make it safe for a variety of
commercial uses. Some sources indicate that paraffin was made from this oil
of shale oil and coal instead of just oil. By the time of the first
In the world war, the French and British used paraffin for medical purposes.
cleaning open wounds and treating orthopedic problems. Starting in 2010,
paraffin wax is still used in most manufactured candles. Medically, the
uses of paraffin wax have greatly expanded. The wax is used in the
thermotherapy to treat tendinitis, arthritis, and sports-related injuries.
History of paraffin. (August 8). [Link]
In relation to aromatic essences, it is important to mention the use that
they have, in addition to their journey through history; Since before Christ the essences
They were an important element; oils in ancient Egypt were used in different ways.
fields: in medicine, cosmetics, perfumery or during embalming.
Also as perfume for seduction and in religious settings, the essences were
used in other parts of the world and by other civilizations, arrived in the Middle East and
China was used in pre-Columbian towns, in ancient Greece, and by the empire.
Roman. After Christ, more precisely for the Middle Ages, the essences are a
symbol of purification and the concentration of divine forces, and in the world of the
medicine, it gains strength with the belief that each plant would heal a part of the
body. For the 20th century, René-Maurice Gattefossè, the father of aromatherapy, in 1910
discover the beneficial properties of essential oils in the body; for
In the year 1964, Doctor Jean Valnet explains in his work 'Aromatherapy' how the oil
essential works on different ailments. Essential oils. (n.d.). Company of
meaning.
Another essential material in candle making is dye; the color influences.
in the presentation and aesthetics of the product, and for this reason the colorant deserves a
look into the past. Clickmica. (n.d.) informs. “The first synthetic dye was
developed in 1856 in England by W.H. Perkin. He discovered it by chance at the
18 years old. The young student was trying to oxidize during a vacation.
aniline in his own laboratory. After adding alcohol to one of his
experiments, managed to obtain a light purple hue product, that is,
mallow. In 1859, the French chemist Emmanuel Verguin discovered fuchsine as
second synthetic dye, in this case red. Synthetic dyes are
were quickly imposed on the natives, they were much cheaper and provided as
result more variety of colors.
On the other hand, one presentation option for the product consists of using packaging.
made of glass. In ancient times, the Egyptians and Phoenicians were the first to manufacture and
to provide glass, but it was not until the Romans conquered Egypt that the
the making of glass was a valued art; in the Middle Ages, the glass technique arrives
to Germany and Bohemia, where it expands to the rest of the world, despite this the glass
it becomes a luxury item for the nobility. Then one of the most significant events occurs.
important, the industrial revolution, where the manufacturing of objects becomes cheaper
like glasses, crystals, mirrors…making production increase. At the beginning of the
Last century, after multiple trials, a rudimentary machine was put into operation.
to manufacture, automatically and in series, glass containers, and in 1925 it hits the market
the [Link] about glass. (31/03/2021). eco glass.
The first thermometers were a sealed glass tube inside which were used
liquids such as alcohol or mercury that, when their volume changes with temperature,
allowed by marking on the surface of the glass, to determine the temperature.
They were invented by Ole Christensen Romer and Daniel Gabriel Fahrenheit. This design
it was for the first time the most effective, given its linear response to changes in
temperature. Today mercury ones are prohibited due to their toxicity and are used
other liquids. So the need was to assign a numerical value to what was
considered "cold" or "hot" and allowed to understand the properties of substances that,
Depending on the temperature, their volume and solubility vary, as well as their state.
(solid, liquid, gas, or plasma).
Later in the 19th century, the bimetallic temperature sensor was invented, which uses the
difference in the expansion of two metal plates joined to activate thermostats or
similar, it was cheap to manufacture as well as robust, which favored its application and
it spread the application of temperature control.
In 1821, Thomas Johann Seebeck discovered the thermoelectric effect. The Estonian physicist-
German demonstrated that when two ends of different metals join to
different temperatures, a voltage is created. This relationship allows for a
direct conversion of temperature difference to electrical voltage. For its part, the
French physicist Jean Peltier discovered that this effect can work in reverse.
opposite and, consequently, used for cooling. History of the thermometer. (2015).
LabProcess.
At the time of product development, materials such as the
pots in which the paraffin melts, this aluminum utensil has a behind a
history. Since the discovery of pottery, ceramic vessels were
evolving little by little. In the Middle Ages, the rotating spit appeared, main
element of the kitchen of that time, which remained unchanged until the century
XVIII. The metal pot had been used profusely in Europe, and one of the first
industries in North America was precisely the manufacturing of wrought iron pots in
1642: the famous Saugus pot, from the old city of Lynn, and it was a pot of
three legs so that under its rough structure nothing is needed but the fire; not
however, in 1778 the first kitchenware items were produced, including a cooking set,
a whole collection of them, from the smallest pans, through pots, to
the bulky pots and pans and frying pans with Teflon.

In 1886, the young engineer and inventor Charles Martin Hall (1863-1914) perfected the
aluminum production system suitable for kitchen batteries. Founded his own
company and started manufacturing pots and pans, they were easy to clean, lightweight,
and lasted longer than the others. In the year 1903, a radical change occurred in the
world of pots. In a large department store in Philadelphia, they began to make
demonstrations of the usefulness of the aluminum cookware. A famous chef
the best hotel in the city taught how to cook apples without having to
remove them and without sticking. History of the pot - Origin and evolution. (n.d.)
CurioSphere.

1.8 Legal framework.

In Colombia, there is a national law that seeks to promote the culture of


entrepreneurship. This, identified as law 1014 of 2006, aims to promote the
entrepreneurial spirit among students and make them capable individuals to
to innovate and generate goods and services aimed at developing business competencies. Blog
spot. (10/20/2012). Entrepreneurship law 1014 of 2006.

According to Law 590 of 2000 known as the My SME Law and its modifications
Law 905 of 2004 classifies companies into micro, small, medium, and large.
companies, it is emphasized that a microenterprise will be carried out
limited company governed by law 124 of 1937, where it specifically mentions
according to article 2 that limited liability companies, whether civil or
commercials, will be constituted by public deed and with the other indicated requirements
in the Commercial Code for collective societies. The deed of incorporation
will contain in addition to the statements expressed in Article 467 of the Code of
Commerce, the declaration that the personal liability of the partners remains
limited to their contributions and the sum that in addition to these is indicated and the one that those
have been paid. Article 3 states that the extract of the social deed must
registering and publishing will include, in addition to the indications of what the article is about
469 of the Commercial Code, the declaration that personal liability of the
partners will be limited to their contributions or to these and the sum corresponding to each of them
members indicate that the contributions have been fully covered. In addition,
Article 4 infers that the omission of any of the legal formalities
expressed, produce absolute nullity among the partners and makes them liable
jointly for all obligations incurred in the interest of the company. For
Lastly, article 5 mentions that the number of partners in the companies in question
this Law shall not exceed twenty. If they are actually constituted in violation of
this provision, there will be absolute nullity among the partners and in case of an increase once
if established, its dissolution will occur.
Law 124 of 1937. (n.d.) Unique system of normative information.

For the manufacture of candles, petroleum-derived elements are used.


the law 55 of 1993 of the congress of the republic is taken into account where basically
protection of workers against the harmful effects of products is desired
chemicals and the protection of the general public and the environment and law 1028 of 2006
regarding the appropriation of hydrocarbons (the group to which paraffin belongs)
As a household hygiene product, it is analyzed and the decision is taken into account.
Law 55 of 1993. (n.d.). Public function.
Now, for the creation and development of the business idea, consideration is given to
tax and fiscal obligations such as; formal and substantial obligations, and in
regarding tax obligations for the formalization of the company, first of all,
check the availability of the name for the company, registration of the RUT, form
from the DIAN to present it to the chamber of commerce along with other documents such as the
RUES and thus obtain the NIT and by governmental law, the VAT declaration is submitted or
19% sales tax, as well as other taxes; Have an account
banking for the management of the company's capital, and request registration in the books
of trade and commerce.

Finally, this project is governed by copyright laws, in Colombia the


Law 23 of 1982 considers that copyright applies to scientific works.
literary and artistic, which encompass all creations of the spirit in the
scientific, literary, and artistic field, whatever the mode or form of expression and
whatever their destination may be, such as: books, brochures, and other writings; the
conferences, addresses, sermons, and other works of the same nature. According to the
Article 5: They are protected as independent works, without prejudice to the rights of
author about the original works and how they represent an original creation. In the
Paragraph comments that. - The publication of the works referred to in this document
the article must cite the name or pseudonym of the author or authors and the title of the works
originals that were used. Law 23 of 1982. (n.d.)

Regarding the protection of copyright, the National University of


Colombia. (n.d.) explains that the protection of copyright only applies to
the material concretions of the human intellect. Thus, the way in which it is protected is preserved.
they manifest ideas, how they are expressed and embodied in reality, and not mere ideas
considered in themselves. Thanks to this principle, one can have works of a
same literary or musical genre, without this implying a violation of the right to
author. The works will not require any special registration formalities for their
protection by copyright law, but rather, these will be
protected since the precise moment of their creation. The task of registering works in
Colombia is probationary and it is carried out by the National Copyright Directorate.
In addition to the need to differentiate between copyright on the work embodied and
the object on which this is embodied, called the support of the work. For example, to
buying a book, a person becomes the owner of the medium of the work, but does not become
holder of the copyright thereof, therefore he/she will not be able to make new copies or
modify it without the authorization of the author or the copyright holder.

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