Preface
Nowadays batik business has not much company in Chiang Mai. Chiang Mai has many tourist travel like a second city of Thailand. Bonito Batik will provide the high quality of batik in the different style from Southern to serve to customer in Chiang Mai and traveler.
Then Bonito Batik is thought to establish the batik company in Chiang Chi ang Mai. This project made for the interesting investment business this book have content about the characteristic characteristic of business, analysis the situation and plan the strategic, marketing plan, pl an, the production and service plan and financial plan etc. In this project have many the appropriate detail of batik business provide for the communication to the investors which help to decide whether this business should be investment.
Bonito Batik Company 17 February 2011
Table of Contents Chapter Chapter 1 ....................................................... ......................................................................................... ..................................................................... ..................................... .. 5 Backgrou Background nd ......................................................... ........................................................................................... .................................................................. ................................ 6 Objective Objectivess .......................................................... ............................................................................................. ................................................................... ................................ 8 Benefit Benefit of projects.... projects............................ .......................................................... ............................................................................... ................................................... ...... 8 Chapter Chapter 2 ........................................................ ........................................................................................... .................................................................. ............................... 9 Nature Nature of Industry Industry .............................................................................. ........................................................................................................... ............................. 10 .......................................................................................... ......................................................... ....................... 11 Papthalung. ........................................................ Situation Situation of Industry Industry ................................................................................ ........................................................................................................ ........................ 11 Product/ Product/Servic Service e (in General) General) ......................................................... ........................................................................................... .................................. 14 Vision ........................................................ ........................................................................................... ..................................................................... .................................... 15 Mission Mission Statement Statement ........................................................... ............................................................................................. ............................................... ............. 15 Business Business Strategy Strategy ........................................................ .......................................................................................... .................................................... .................. 16 Chapter Chapter 3 .......................................................... ............................................................................................ .......................................................... ........................ 17 Market Market Analysis Analysis ........................................................ .......................................................................................... ................................................... ................. 18 General General Environment Environment Analysis Analysis..................................................................................... .....................................................................................18 Political Political analysis analysis ........................................................... ............................................................................................. ............................................... ............. 18 Economic Economic analysis........... analysis............................................. ..................................................................... ........................................................... ........................ 19 Technolo Technology gy analysis analysis...................................................................................... ..................................................................................................... ............... 20 Competitio Competition n analysis analysis .......................................................... ............................................................................................ ......................................... ....... 21 Competito Competitorr Analysis Analysis ........................................................... ............................................................................................. ......................................... ....... 21 Customer Customer Analysis Analysis ......................................................... ........................................................................................... .............................................. ............ 24 STP Analysis Analysis.......................................................................... ............................................................................................................ ....................................... ..... 25 Market Market segmentat segmentation ion ......................................................... ............................................................................................ ......................................... ...... 25 Target Target market market............................................................................ .............................................................................................................. .................................. 25 Positioning Positioning ........................................................ ........................................................................................... .......................................................... ....................... 26 Marketing Marketing Mix Strategy Strategy ...................................................................................... ............................................................................................... ......... 27 SWOT SWOT analysis analysis ......................................................... ........................................................................................... .................................................... .................. 27
Strength Strength ........................................................... ............................................................................................. ........................................................... ......................... 27 Weakness Weakness .......................................................... ............................................................................................ .......................................................... ........................ 27 Opportunit Opportunity......................... y............................................................ ..................................................................... ..................................................... ................... 28 Treat Treat .......................................................... ............................................................................................. ................................................................. .............................. 28 Marketing Marketing Mix 4P .................................................................................... ........................................................................................................ .................... 28 The details details of marketing marketing mix........................ mix........................................................... ................................................................ ............................. 29 Marketing Marketing Expenses: Expenses: .......................................................... ............................................................................................ ......................................... ....... 40 Conclusion Conclusion......................................................... ........................................................................................... .......................................................... ........................ 41
Chapter 1
Background The word batik conjures thoughts of exotic, Oriental textiles, rich in co lor and design. Bright batik cloth can be seen on almost any beach in the form of sarongs and has been utilized to make shirts, ties, t ies, scarves and even shoes in the fashion industry. Interior decoration may use batik bat ik tablecloths, curtains, placemats and even picture frames. This versatile and durable textile is being applied to more areas everyday and not only that, but the process of making batik is becoming a popular past time wit h visitors. The origins of this intricate art form are largely unknown. Evidence of batik work has been found all over the Middle East, India and Centra l Asia however, for a long time it has been most prevalent in Java, Indonesia. When batik was introduced in Java, it was mostly practiced as a hobby by ‘fine ladies’ and so the ability to make the exquisite exquisite cloth c loth was considered a sign of refinement. Initially I nitially batik cloth was used to make costumes for aristocrats and royalty and sometimes, part icular designs would signify a person’s family, social status or origin. Ancient bat ik designs generally showed intricate patterns rather than the elaborate e laborate scenes we see today. The method involved waxing the cloth to make it dye resistant, t hen dyeing an un-waxed un-waxed portion in a chosen colour. The wax was then removed by plunging the fabric into boiling water, where it would melt melt and a nd separate from the fibres. The batik was t hen dried out completely, before repeating the whole procedure for each colour. Nowadays the process is much the same but a number of design tools have been invented to ease production. A pola, allows stencils or patterns to be copied onto the fabric to be used as a guide for wax application. Mass producers of bat ik use large copper blocks to stamp hot wax designs onto the cloth. Alternatively, an artist may ‘chant’ a wax outline by hand, and for this he will use a ‘cant’, a co pper tipped hollow pen that spills wax smoothly onto the cotton cott on or silk. These two methods of making wax outlines allow the dye to be painted on, just like paint ing on canvas. By painting the dye onto the fabric, the artist is able to grade the colours, creating shades and shadows necessary for more intricate and detailed det ailed designs. The batik will only need to be boiled once to remove the wax, so the colourfast co lourfast cloth retains maximum brightness. The mass production of batik is cost effective and very popular however, hand painting is still practiced in many parts o f the world and there is an enthusiastic market for this high quality textile. Some of the t he finest batik is made in Java where
traditionally they used deep indigo blues and browns to represent Hindu Hindu gods. Nowadays Javanese artists are still heavily influenced by the Hindu religion using the motifs of the garuda bird, lotus flower and the drago n Naga. Islamic influences are depicted by more geometric and botanical designs. In t he 17th Century when the Dutch colonized Java, they sent samples of batik back to E urope where the technique was applied to leather, ivory, paper and even met al, and with the introduction of German dyes, the artists could choose from a new, diverse arra y of colours. Chinese influenced batik is distinctive. The motifs include dragons, the phoenix, snakes, lions and flowers. Chinese artists introduced bright pastel co lours and employed employed the use of beeswax rather than paraffin wax to t o improve the quality of the lines. In Africa, batik batik was made using a paste consisting of cassava flour, rice and co pper sulfate instead of wax. What a well travelled craft! cr aft! From its majestic beginnings in Java, the batik art form spread throughout India, China, Malaysia Ma laysia and Europe and has gradually gradua lly became popular in today’s fashion and home decor deco r industries. The largest producers producer s of batik are Indonesia, and Malaysia Malaysia,, who adorn batik as their national nat ional costume, however Thailand’s industry is growing. In addition many 5-star hotels on the island are incorporating batik art rooms into their hotel fac ilities. Many shops now sell batik items depicting cartoon characters, abstract portraits and various other ethnic designs. The most popular designs generally reflect our tropical cli mate with fish, dolphins, palm trees and flowers being incorporated into lavish scenes which are colorful and extremely eye-catching and serve as a perfect token of Thailand for your loved ones at home.
From: http://www.travel-phuket.com
Objectives -
For actuate the business to achieve high profits.
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For attract the potential of o f business in Thailand to Industry Leader.
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For added the high value and back to distribute the part of profits to local areas that lead to sustainable tourism for creat e good image and to highest profits.
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For promote Thai’s business of Hospitality and Tour ism Industry for to get high market share.
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For upgrade the business in Thailand to high standard equal to International level for highest interest investors and to get highest profit profit for Bonito Batik business.
Benefit of projects -
To have the highest profits from the lowest investment investment in efficiency efficie ncy and effective way.
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To acceptably from business organizations cover to the public sector to know about the benefits of o f business.
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To enhancing the knowledge in creative and organization apply to do t he project and even running.
Gantt chart No.
Task
1
Chapter 1 Introduction
2
Chapter 2 Industry Profile
3
Chapter 3 Market Feasibility Study
4
Chapter 4 Technical Feasibility Study
5
Chapter 5 Financial Analysis
6
Chapter 6 Risk Management
7
Chapter 7 Summary
8
Final Submit
November
December
January
February
Chapter 2
Nature of Industry The carving details of clothes wore by Prajnaparamita, 13t h century East Java statue. The intricate floral pattern pat tern similar to traditional Javanese bat ik. ik. Wax resist dyeing technique in fabric is an ancient anc ient art form. Discoveries show it already existed in Egypt in the 4th century BCE, where it was used to wrap mummies; linen was soaked in wax, and scratched using a sharp tool. In Asia, t he technique was practiced in China during dur ing theta dynasty (618-907 CE), and in India a nd Japan during the Nara period (645-794 CE). In Africa it was originally practiced by the Yoruba tribe in Nigeria, Soninke and Wolof in Senegal. In Java, Indonesia, batik predates written recor ds. G. P. Rouffaer argues that the technique might have been introduced during the 6th or 7th century from India or Sri Lanka. On the other hand, JLA. Brandes and F.A. Sutjipto (an Indonesian I ndonesian archeologist) believe Indonesian batik is a native nat ive tradition, regions such as Toraja, Flores, Halmahera, and Papua, which were not direct ly influenced by Hinduism and have an old age tradition of batik making. Rouffaer also reported that t he gringsing gringsing pattern was already known by the 12th century in Kediri, East Java. He concluded that such a de licate pattern could co uld only be created by means of the canting (also spelled tja nting or tjunting; pronounced tool. He proposed that the canting was invented in Java around that t ime. The carving details of clothes wore by Prajnaparamita, the statue st atue of buddhist goddess of transcendental transcendental wisdom from East Java circa 13th century CE. The clothes deta ils shows intricate floral pattern similar to today traditional Javanese batik. This suggested suggested intricate intricat e batik fabric pattern applied by canting cant ing already existed in 13th century Java or even earlier. Batik was mentioned in the 17th century Malay Annals. The legend goes when Laksamana Hang Nadim was ordered by Sultan Mahmud to sail to India to get 140 pieces of search cloth (batik) with 40 types of flowers depicted o n each. Unable to find any that fulfilled the t he requirements explained to him, he made up his own. On his return unfortunately, his ship sank and he only managed to bring four pieces, earning displeasure from the Sultan. In Europe, the technique is described for the first time in the History of Java, published in London in 1817 by Sir Thomas Stamford Raffles who had been a British Br itish governor for the island. In 1873 the Dutch merchant Van Rijckevorsel gave the pieces
he collected during a trip tr ip to Indonesia to the ethnographic museum in Rotterdam. Today Tropenmuseum houses the biggest collection of Indonesian bat ik in the Netherlands. The Dutch were active act ive in developing batik in the colonial era, they introduced new innovations and prints. And it was indeed starting from the ear ly 19th century that the art o f batik really grew finer and reached reac hed its golden period. Exposed to the Exposition Universelle at Paris in 1900, the Indonesian batik impressed the public and the artisans. After, the independence of Indonesia and t he decline of the Dutch textile industry, the Dutch batik production was lost. The Gemeentemuseum, Den Haag contains artifacts from that era. Due to globalization and industrialization, which intro duced automated automated techniques, new breeds of batik, known as batik cap and bat ik print emerged, and the traditional batik, which incorporates the hand written wax-resist dyeing technique is known now as batik tulis. At the same time, according accor ding to the Museum of Cultural History of Oslo, Indonesian immigrants to Malaysia brought the art with them. t hem. As late as the 1920s Javanese batik makers introduced the use of wax and copper blocks on Malaysia's east coast. The production of hand of hand drawn batik in Malaysia is if recent re cent date and a nd is related to the Javanese batik tulis. From: Doellah, H.Santosa. (2003). Batik : The Impact of Time and Environment , Solo : Danar Hadi.
In Thailand batik sarongs are also designed as wraps for casual beachwear. In the southern Thai island of Koh Samui, batik is easily found in the form of resort uniforms, or decorations at many places, and is also used for t he locals' casual wear in the forms of sarongs or shirts and blouses. It is the t he most common, or even symbolic product for those visiting Koh Samui Island. The Batik of Samui mostly shows the beauty and attractions of the paradise parad ise island and its culture, such as the coconut coco nut shells, shells, the beaches, palm trees, the island's tropical flowers, fishing boats, its rich water life and southern dancer, Papthalung.
Situation of Industry Today Batik is a product of the most popular in the market . Especially the international market such as U.S.A , German, India, China, Hong Kong. Batik imports from Thailand to sell in the form of finished pro ducts such as clothing, handbag, and handkerchief. Batik scarves decorated with images co ver the walls, tie the table and
linen shirts, etc. ready to be produced widely. The development of batik textiles, now the department of industrial promotion, was central to the development of batik in color schemes and techniques have been training over t ime. The school organized a teaching or batik cloth different levels, from that institution, to provide education about batik. Make the patterns and techniques widely this helps to produce good results to produce batik, the development of a more than ample. Batik" is a unique art and craft of the South. That has been widely popular for both Thais and foreigners. Because the eye-catching designs and vibrant colors, beautiful bat ik is now popular not allergic to other types t ypes of fabric. It is unique. Every step made by hand with exquisite exquisite detail det ail and precision also includes a commitment co mmitment to work with. Work out so successfully with good quality. By the concept of a new generation of customers, combined with the model work more difficult. Hope to make a difference to the t he market. Escape with the competition. competit ion. This is thought thought to be done by batik, batik, tie dyeing technique of batik Integrated and dying dying together. One of the problems pro blems of dying fabric, most suffer is the quality of color t hat will not always fall color, pH and color on washing. But the development of batik clothes fall color. The continued use of the natural color of the dying. Create a unique identity for the product is great. Market trends
Market Batik progress over other ot her saws. Both products supplies. House by Measured by sales revenue per year. And the values t hat consumers consumers have accepted the product in a fabric bowl acid increased as the t he dominant organizational chart. Operational guidance
Batik is a craft business can utilize the skills that are exquisitely beautiful color drawing policy implementation and follow patterns on the cloth, so as a concept to a group of shareholders that the success in business after selling cloth. Bat Rick both wholesalers and retailers on behalf of o f Craft Batik by ordering products from other high quality products and has been recognized as the standard mater ial. Equipment used. Performance, etc., but it has to sell the brand its own. Packaged into own brand. The marketing of the shareholders have seen the need to accept that the consumers are demanding more saw any. Therefore the t he business as a company limited Craft Batik and ideas to expand market batik wider. The idea is to have targeted all
levels. Although the product will have outstanding But still having t rouble using workers in the dyeing process. pro cess. Causing fatigue and staining with a dye workers make each time is not quality. Base color is not uniform. Enabling operators to switch to an idea. Dyestuff that is suitable for producing small, inexpensive, much to replace human labor. Which must be paid the average wage Dyer 3 baht per piece. " Competitive market can be divided into two t wo fabrics are in direct competition and indirect competition. In direct competition, it includes manufacturers, batik indirect and competition, including manufacturers of other types of fabric. From: http://info.matichon.co.th/rich http://info.matichon.co.th/rich/rich.php?srctag=070 /rich.php?srctag=07026150552&srcday 26150552&srcday=&search=no =&search=no http://www.tarad.com/batik8/
Product/Service (in General)
Our products: all pieces are handmade out along a bright color because we use dye cold, no fixed format. Each piece is unique for each ca ll that you buy a shirt, I have the t he confidence that unique pattern. Another trick is to design liking, will be more popular because the design is customized and inexpensive compared to the same t ype of clothes imported from Europe, sewing was no blame while Batik products that we do right now such as - Fabric curtain.
- Men’s Shirts. - Pattern Handbag, by handmade painting. Our product have a quality is the durability of color patterns and forms of products. If the product has problems, returns accepted. Feature is ever y piece a unique fabric. Each of these patterns patt erns in the ground is not in hand to produce by handmade has attracted interest. Style has a pattern to the t he concept of customer needs and the product add combined with the cultural patter ns in northern and unique unique color painting techniques a specific format of o f Bonito Batik company. And And packaging is designed for the use and with thing like media production in the box. Co lors box with a color line art. art . Detailed product branding and other elements. For clothes that we used in the production, customers can select the t ype of fabric requirements such as used silk cotton and linen, especially linen are popular with internat ional clients such as Hong Kong and Japan when it makes sense to wear elegant. The popular Thai cotton and iron because simple to wear and the main customers are people like works of art suggest that silk is popular. So our products are unique, unlike competitor s. Source: www.thaismefranchise.com/?p=5063 www.muslimthai.com/main/1428/content.php?category=19&id
Vision Bonito Batik provides the product according to customer order. We will make the different design to different customers. “We will be leader in batik industry industry in northern of Thailand”
Mission Statement 1. We emphasize to find the best product and make customer satisfaction. 2. Search the different and a nd outstanding of service to reach the customer in northern region. 3. Reinforce the good relationship whit whit the customer. 4. Create the t he good product toward the famous business. 5. Build the confidence gives with a customer in t he sense of the serve that is of good quality by using the relation of the team t eam administrates for build the marketing “word of mouth”
6. Deliver serve at of good quality to a customer c ustomer for occur satisfactions from a customer and repeated buying
Business Strategy 1. Functional level
In this strategy, our industry uses differentiate. The reason that we use differentiate strategy str ategy because our competitor in Chang Mai make only small industry that different from our batik. We forecast that “Chang Mai is a center cente r of batik industry” in soon 2.Corporate level
Our business has several products to offer in different need and want o f customer. Because other business are not have the custo mer service as we and we have many choice to support customer’s demand. 3.Operation level
In this strategy, we use all of strat egy that includes marketing, finance, accounting, and management of information system.
Chapter 3
Chapter 3: Market Feasibility Study
Market Analysis General Environment Analysis At the primary period of batik product that many companies produced the most of products at point of decoration, fashion clothing, gift, and market that most famous and tend to increasing and the products that able to sell more in the market. Then there are many companies in the market increasing and trying to produce the products at same design, so it affected to customers buying behavior that there are not focus on the brand of products, but their most focus on the product prices and different design of batik companies tried to focus on develop the market strategy and tried to set the products at low price. Moreover, many new competitors entered to the market. The economy depression, it did not affect to the demand of products in the market, so the trend of cera mic is not much decreasing in the market.
Political analysis Politic is out of control by business. Many competitors have to face with this too. Politic might positively affect to business investment or negatively affect as obstacle in business success. So, we always follow political news and apply in our business. • Government policy is factor that both support and obstruct some kinds of business success. • Laws and regulations of government affect directly to success/failure and cost of some kinds of business such as determine business open-close time and determine zone of business. • Price control policy; government determines ceiling price some kinds of necessary goods. This operation affect to profit rate of small business or new market business normally has high cost already that can’t compete at ceiling price. • Open free and restricted import affect to advantages/disadvantages in competition and determining goods price of involved business.
And marketing decisions are strongly affected by political and legal environment uncertainty. Especially Thailand, the politic very strongly affect to government policy. The standard of design and development for package in SME entrepreneur is another important policy of government because government by Department of Industrial Promotion emphasizes the importance of quality and standard as a tool for develop the district goods industry and wholesaler & retailer. In Chiang Mai province has supportive industry and wholesaler & retailer form government also, it result to economy for small business are strongly. That is a good o pportunity pportunity for batik bat ik business because of in Chiang Mai has a little of batik business, Bonito Batik can get more market share form this market. Our business provides good quality, adding value, and improve all the time that attractive the customers both among the countries and other countries.
Economic analysis It is out of control from business and others competitors must face as same as politic. • National economy condition; average income per person, unemployment condition, growth/slow down of GDP, inflation, deflation, all of these affect directly to purchasing power of customers who are target group. • Currency exchange affect to cost and risk of imported/exported business and competition in international market Tax rate that government determine for business and product will affect to advantages/disadvantages in determining price selling and cost of competition including import tax and specific business tax. • Cost of labor and production compare with important competitors, competitors, especially batik product from southern and international competitors. Social and Environment analysis
Business in different industry, market, region might face with risk. It has different business feasibility because business operation environment and market environment that is different. • Business life cycle; industry or market products/services mostly have cycle short or long that may be different such as fashion product has short life cycle, fast outdated and low demand in market faster than t han other products. • Consumer behavior in each market including more or less brand loyalty, price conscious if it’s high, high price competition and low profit profit rat e Social includes the belief, value, and attitude of person in the social. The socialist reflected by culture, education, religious, and other social environments of other social. The social condition is continuously changed because of person in the social need to control and adapt you with the environment. When the social condition is changed, the need of person is also changed such as dressing, hobby, even requirement of goods and service. Batik is the new product in Chiang Mai because at regularly the Southern product so we can satisfy Northern people by makes it in Chiang Mai and sale in the cheaper than bring it up from Southern. And customer can see new design of the product that we created.
Technology analysis The advances of technology are making development to invention and comfortable for life. Technology provides the quality and standard to produce goods and services customer needs. The production system produce many products the can be cheaper. Technology is easy to communication and connections between the world’s population contact information at time together. But our business has not much of technology because all of products are hand made product. The some of tech neology are: - Computer Technology is design product to high quality and fewer errors. It has a samples and work on reality to lower co sts of production.
- Internet Technology is easily to communication with customers that faster and more complete information. The customer is not order your own which can be receive and send e-mail directly to company. The Customers feel friendlier that create to customer royal ro yalty. ty. -Website is the customer easily to view the products and change and improve the product to available format and can design own products as appropriate. The company received orders to customer that not only in Chiang Mai but market expansion has resulted in comprehensiv co mprehensivee group with more goals. - Logistic Technology is increase channel of transportation transport ation and registration document number. The checking all the t he transportation and sent across ac ross Thailand. The easy of transportation and quickly that confidence to the product of lost.
Competition analysis Competitor Analysis The Batik market competition can be divided d ivided into 2 aspects is direct competition and indirect competition. In direct competition c ompetition is Batik manufacturers. Indirect competition is manufacturers of other types t ypes of fabric. The competition can be analyzed as follows. Analysis of direct competitors(Batik manufacturers community, community, including includ ing manufacturers neighboring provinces and provinces as they are produced, Lamphun, Lampang, Chiang Rai, Narathiwat, Phuket, Chainat, Pathum Pat hum Thani, Rayong, Pattani, Bamgkok, Satun, Krabi, Phang Nga, Kanchanaburi, Nakhon Ratchasima and industrial manufacturers.) The direct competitor in the batik bat ik product is not found at the company area that this ent ire area batik market share is hold on our hands, if look forward at the whole of Chiang Mai province that there are many batik companies. Overall are not serious problems for Bonito batik because the most companies produce and design the batik product at same style, no more different. And mostly is making by machine then it is a lot of the same design and outside markets. Besides, the most of companies do the marketing as wholesale, so the most customers in the local area can not buy the products as single unit.
High Phuket batik Bonito batik Lamphun batik
Cost Low
Diagram: Shows the comparison between the cost and sales of the product
1. Potential distribution ways in Batik products produced by different communities, the most companies produce and design the batik product at sa me style, no more different. So the t he advantage is exactly what the province can create a selling point to draw customer in to more travel. In general, Batik products from Phuket to be benefit most from tourism but design of phuket different Bonito batik because bonito creat e own design, we add combined with the cultural patterns patter ns in northern and color painting techniques that are different from phuket. In addition, manufacturers are not used in the community. community. However, as industrial production is considered as a group with high potential for distribution and the ability to cover more market s, because production capacity and expertise in distribution. distr ibution.
Multi Product High
Bonito batik
Lamphun batik
Phuket batik
Distribution Low
Diagram Shows the comparison between the multi product and distribution of t he product
2. A variety of Batik products, depending on applications. Which generally has the advantage of a similar diversity depends on productivity.
3. Uniqueness of each region to produce an advantage in manufactur ing such as the colorful, patterns, look different.
4. To promote the marketing of Batik products in each community. It often depends on the support of government in each province was to support different and in the manufacturing sector is promoted; the market also appears to be not very intense Analysis of indirect competitors
Indirect competitors of batik products, is variety of styles depending on the application from of batik. Such as hats made of batik ha ve indirect competitors as a manufacturer of wicker hat and other types of cloth caps and so on. Therefore, it is difficult to analyze whether any competitors competito rs are indirect competitors, depending on the substitution of products compatible with wit h the decision of consumers c onsumers is key.
Customer Analysis Thai – Foreigner Foreigner Tourists come to travel in in Chiang Mai is targeting of Bonito Batik Company that we spent one month gathering information about this target group. From talking to the customers informally, as well as searc hing the population base especially tourists come to Chiang Mai and producing a custo mer questionnaire. questionnaire. The customer size base
Example the number of middle age size of Thai and fore igner tourists in 2009 ( age between 25 – 40 year old ) come to travel tr avel in Chiang Mai.
25 - 34
35-44
Age
Thai
Foreign
Traveler 97 [ 27.5 ]
Tourists 674 [ 33.5 ]
Total 771 [ 32.6 ]
Traveler 57 [ 36.1 ]
Tourists 441 [ 29.4 ]
Total 498 [ 30.0 ]
124 [ 35.1 ]
594 [ 29.5 ]
718 [ 30.4 ]
49 [ 31.0 ]
394 [ 26.2 ]
443 [ 26.7 ]
Unit : People ( Percent )
Thai tourists : Most of the older working age by 32.6 percent. Aged between 25 to
34 years followed by 30.4 per cent aged between 35 to 44 years. Foreigner tourists : Most of the older working age by 30.0 percent. Aged between
25 to 34 years followed by 26.7 per cent aged between 35 to 44 years. So you can see that Tourists in Chiang Mai, Thai and foreigners do not differ in age, because most are aged between 25 to t o 44 years. Source: http://www http://www.tourism.go.th/2010/upload/filecenter/f .tourism.go.th/2010/upload/filecenter/file/stat_File_pdf52/north/chea ile/stat_File_pdf52/north/cheanmai.pdf nmai.pdf
Competitive Analysis
There is no any competitor competitor on the Mahidol – Nhong Hoi road, one of the famous famous areas. All batik companies in Chiang Mai that t here are many product that focus on the same design, it mains the most of their t heir products are not different, and the t he price
that sets at likely the same price, pr ice, not more different. Besides, the main of t heir targets focus on exporting that mostly is making by machine then it is a lot of the same design and outside markets. So, the point of Bonito batik company that able to get more advantages and the ability in competitive is likely higher that the most competitors in the same area. The different d ifferent designs of the products are newest, modern, and the products that produced from the own company. Bonito batik has the strong point in competitive ability than stores around this area. However, Bonito batik store and gallery is a new store stor e in this area that should should be focus more in product, price, place, and a nd promotion. In additional Bonito batik should be focus o n 4Cs together with 4Ps
STP Analysis Market segmentation
The batik products in the market have many types that there are Souvenir, gift and decoration, clothing. Bonito Batik focus on the clothing, gift and decoration products market segmentation because this type of product demand is more large in the market, the design that able to create in more, and the products is supported by many group if customers.
Target market Bonito Batik focus on the people who is favor on the design o f batik products, liked to buy the batik products for giving people in some special days, ceremonies, and festivals. Beside they buy the ceramic products for decorating houses, workplaces, or clothing. Our customers we focus on Thai people and Foreigner tourist are travel in Chiang Mai.
The products that are made by batik are more famous in using around the world. Unlimited in separate the buyers or users by gender and age, however the main target market is focusing on: Middle age (tourists): The middle age that has the age between 25 - 40 years old that looking the batik products for use by themselves, New Year gift, special day gift, and whatever festival, giving people, decorating house and workplace. There are 470,000 middle age of man and 450,000 middle age of woman in Chiang Mai province and year 2551 there are 5,313,352 tourists, year 2552 there are 4,343,090 tourists and year 2553 is expected 4.5 million tourists come to Chiang Mai. According to Middle age behavior around the area and travel in Chiang Mai we found that they have more money to pay and they spend more time for shopping with their family, friends, group tour and they are looking for some things new, interesting, and different design products. The most customers will be popular as souvenirs for friends, relation or get our products to be sold to t o a foreign country. Source: http://www.cmcity.go.th/aboutus/economic.php http://www.thaienergydata.in.th/energynew/energyReview/energy/index_prv_populati on.php?prv_id=50&year=2550&subtab=12&tab=1&main=main
Positioning In nowadays, there are many batik products in the market and the products that likely at the same because the t he products are easy imitation, so the most of buyers are not specific in focusing to buy batik product under the brand of products or producing from where, but their t heir focus on product designs. Bonito batik try t ry to focus positioning of the products at the different point of products design that according to several product designs for attracting them interested in Bonito batik, Bonito batik designs and creates the new style st yle of products at special period that for hard to imitating product design from competitors. The different point of products design, we focus to produce the product according to our own designs, this combined with the culture of the north t hat there are three concept designs to our gift, clothing and decoration for tourist group of customers. We try to study about many companies products and create Bonito batik
own design, we add combined with the cultural patterns in northern and co lor painting techniques that are different from other brands that is the main point of our products that 100% are not same with any batik bat ik companies in Chiang Mai province. At the product prices that we have set at the fairly price, pr ice, it is not more high or not more low because we concern about customer customer value percept ion. Therefore, we try to make the point that customer willing to pay and able to buy our product. Moreover, we try to build the brand value of product in mind of custo mers.
Marketing Mix Strategy SWOT analysis Strength 1. The products those are unique. The production by hand (Hand. Made) by each product with unique and colorful patterns are not t he same. 2. Goods are cheaper than the competition co mpetition when compared with the production of a group of other local producers. Due to lower production costs. 3. The ability of the product. Can be applied to various the application of a wide array of products.
Weakness 1. Capacity is uncertain because the t he workers in the production of mainly And may not be enough demand if you live in a high sales skills in the production of the year, depending on the experience of manufacturers in each. The piece has a differe nt standard. 2. The distribution of goods to other areas. Also depend on middlemen to buy too many are not able to plan and know the real needs of the market. 3. Does not create and promote a brand is generally known.
Opportunity 1. Is both a source of tourism in the province and ot her provinces to make similar opportunities to sell and close easily producers 2. The promotion of public policy related and other projects t hat support the One Tambon One Product. 3. Tastes of consumers towards the products of batik. That is appropriate to the source here.
Treat 1. Batik competitions within the market are relatively more competitive. Community, Community, especially especial ly the batik fabrics, and there are many manufacturers do not include a group of manufacturers in the industry characteristics. 2. The amount of products depending on t he season. 3. The trend of slowing down due to economic impact. Allows consumers to cut costs and unnecessary consumption. 4. Products with similar characteristics and a nd features and like products from Batik by innovation. The application of fabric products and improve the range, which may affect the t he interests of a product from batik. 5. The trouble in the rainy season. That can not produce because production is mainly dependent on sunlight.
Marketing Mix 4P
Sum of marketing mix
Details
Product
Batik
Price
High quality, high price
Place
The company at Chiang mai
Promotion
Use both Advertising and do
Promotion.
The details of marketing mix 1. Product Bonito batik is not the normal store that provides only batik products that easily looking from general markets like normal cl othes, decoration, and gift, but Bonito batik is a wonderful store and batik gallery. We focus on new design that combined with the cultural patterns patt erns in northern and painting techniques that are different from other brands batik to batik products. It is likely the batik center that t hat provides a lot of o f various designs to batik products such as deco ration and gifts. The entire products designs are various and different fro m others. Bonito batik, have a strategy to create value-added products. The The separation separat ion of product strategy into 3 areas, which are detailed below 1.1.
Quality more robust designs and color patterns of the
products. If the product has problems returns accepted. 1.2.
Characteristic (Features) every piece a unique fabric. Each of
these patterns in the ground is not in hand. To produce by hand (Hand Made) has attracted interest. 1.3.
Format (style) has a patt ern to the Concept of customer needs.
Bonito Batik logo
2. Price
Bonito Batik Company’s pricing is designed to be competitive to the other batik companies. The pricing is based on the basis of the company target customers. Bonito Batik Company’s pricing strategy use of vert ical integration in pricing wherein they own participants at differing channel levels or take part in more than one channel level operations. This can control costs and influence product pricing. The price we set at the fairly price that it is not more high or more low because we focus on the power of our customer customer buying, and o ur company product cost. 3. The following strategy: 3.1.
Pricing to the competition (Competition oriented pr icing) is a moderately priced not lower price much when pa ired with other
products on the market. To take advantage of the difference between profit and sales promotion. pr omotion. 3.2.
The aim of the cost price (Cost oriented pricing) is a set price pr ice that covers production costs. Marketing costs. Discount given to an intermediary. Other expenses. Including the desired profit.
3.3.
Psychological pricing basis by using numbers that end with odd numbers. To determine the price of all kinds.
Product
Style
Size
Price (Bath per piece)
Men's Shirts
Fabric Curtain
S 36"
250
M 38"
300
L 40"
350
XL 42"
380
Flower
2 x 1.5 M
750
Sea
(The same size)
780
Lanna
800
Handbag
Flower
16" x 12"
650
Sea
(The same size)
680
Lanna
700
4. Place Bonito batik Company focuses to establishing the company at Chiang Mai province especially on the Mahidol – Nhong Hoi road, one of the famous areas. The place is the center of Chiang Mai shopping area and a source of Thai and foreigners’ tourists. That there are many shops around around the company and it is the location of our customer group tourist that covers our entire market distribution distribution center. We have set t he company as the batik the batik art gallery and work place. At this area that no any competitors have found, so this is the one of the best location that it is the golden business area. Around the company there are many accessory shops, shoes store, and restaurants so there is more different in type o f business that it able to lead our company to be the distinctive point and able to let our target customers are more interested intereste d in our company. Distribution strategy: 4.1.
The distribution channel as a communication tool in market ing,
particularly public relations and advertising. Were labeled advertising, held Display, distribution of brochures and other incentives. 4.2.
Use strategy Selective Distribution Distr ibution for initially initially focusing on market trends and distribution channels to meet the t he target group most.
4.3.
Set up sales teams to sell se ll space in stores target. Focusing on market access channels that are associated with the target groups and can be used to create creat e the market trend in the future.
5. Promotion Promotion is a key element of marketing program and is concerned with effectively and efficiently communicating the decisions of marketing strategy, to favorably influence target customers’ perceptions to facilitate exchange between
the marketer and the customer that may satisfy the objective of both customer and the company. Stages and promotion strategies strat egies employed
When a product is new our objective will be to inform the target custom c ustomers ers of its entr y. Radio, magazine, and handbill may be used to push the product through the introduction stage of the lifecycle. Push and Pull Strategies will be used at this crucial stage.
Growth
As the product becomes accepted and interesting interest ing by the target market Bonito batik at t his stage of the lifecycle we work on the strategy of further increasing brand awareness to encourage loyalty.
Maturity
At this stage with increased competition competit ion we take persuasive tactics to encourage e ncourage the customers to purchase our product over our o ur rivals. Any differential advantage will be clearly communicated to the target customer to inform of our benefit over our competitors.
Decline
As the product reaches the decline stage we will use the strategy strateg y of reminding people of the product to slow the inevitable
Sales Promotion
Bonito batik Company has promoted its products pro ducts through different sales promotional strategies such as member card for discount and gift voucher Sales Forecast/Profit Estimation
Bonito batik Company set to make the sales forecast/profit est imation at 5 years. - The sell price that compare with the market price. - The number of product from 8% – 9% of the tourists come to t ravel in Chiang Mai. From the statistic of Thai – Foreigner tourists come to travel in C hiang Mai province 2009 provided 4 quarter are
Quarter
Number of customer
Period of month Thai
Percent
Foreigner
Total
1
January - March
411,212
271,693
682,905
29%
2
April - June
298,544
197,375
495,919
21%
3
July - September October December
223,279
226,499
449,778
18%
475,344
291,010
766,354
32%
2,394,956
100%
4
Total
Source: http://www.tourism.go.th/2010/th/statistic/tourism.php?cid=27 Quarter 1 Tourism remained the atmosphere lively. Because in the New Year on the Chinese New Year. The air is cool and many act ivities during this period. The attraction that most people have taken many hits. Quarter 2 Atmosphere tourism remained vibrant because of the first quarter due to the holiday season is long, especially Songkran. People have a lot to travel.
Quarter 3 Tourism atmosphere remained relatively quiet because it is the rainy season in addition, no activity act ivity in this season. Quarter 4 Climate tourism remained vibrant over the t hird quarter due to the winter range is near the end of the t he year. There are also a lso many more more act ivities such as Loy Krathong Yi Peng, etc .
YEAR 1
TOTAL SALE
PRODUCT
SIZE
JAN
FEB
Men's shirts
S"
15,000
14,350
M"
19,500
L"
XL"
MAR
APR
MAY
JUN
JUL
15,300
13,450
14,450
12,700
11,000
9,500
19,000
20,700
20,000
19,500
18,750
16,700
20,500
19,800
21,350
20,700
20,000
19,800
18,500
18,000
18,800
17,500
17,000
MAY
OCT
NOV
DEC
TOTAL
9,800
13,800
15,300
17,200
161,850
15,800
14,900
16,700
19,800
21,500
222,85 0
17,800
16,900
15,900
17,600
19,400
22,100
231,850
16,500
14,850
14,000
13,250
15,350
17,550
19,800
201,100
JUN
JUL
AUG
SEP
OCT
NOV
DEC
STYLE
JAN
FEB
Febric Curtain
Flower
15,000
15,7 50
14,250
15,000
16,5 00
13,500
12,000
10, 500
10,500
13,500
15, 750
18,000
170,25 0
Sea
21, 840
21,840
21,060
20,280
19,500
17,940
16,380
14,040
13,260
16,380
18,720
21,840
223,080
Lanna
24,000
25,600
24,0 00
24,800
23,200
24,000
20,000
20,8 00
20,800
24,000
27,200
28,800
287,20 0
Flower
9,750
9,100
9,75 0
9,100
9,100
8,45 0
6,500
5,850
7,15 0
8,450
9,750
11,0 50
104,000
Sea
9,520
10,200
10,880
10,200
8,160
8,840
6,800
5,440
6,800
8,840
10,880
11,560
108,120
Lanna
12,600
13,300
12,600
11,900
11,200
11,200
8,400
7,000
6,300
8,400
11,200
13,300
127,400
166,210
166,940
168,690
162,930
158,610
151,680
130,430
119,830
118,660
143,020
165,550
185,150
1,837,700
TOTAL
APR
SEP
PRODUCT
Handbag
MAR
AUG
TOTAL
YEAR 2
TOTAL SALE PRODUCT
SIZE
JAN
FEB
MAR
APR
MAY
Men's shirts
JUN
JUL
AU G
S"
15,600
15,000
16,000
14,500
14,900
13,000
12,500
9,600
M"
18,000
17,050
18,500
16,000
17,500
15,750
15,000
L"
21,000
19,500
21,000
19,850
19,000
19,500
XL"
19,050
18,900
19,050
18,750
17,500
SEP
OCT
NOV
DEC
TOTAL
9,700
14,200
15,500
17,500
168,000
14,550
14,300
16,000
18,500
20,000
201,150
18,750
17,000
16,550
17,500
19,000
21,000
229,650
16,900
16,350
16,000
15,850
17,300
18,000
20,050
213,700
JUL
AUG
OCT
NOV
DEC
TOTAL
PRODUCT
STYLE
JAN
FEB
MAR
APR
MAY
JUN
Fabric Curtain
Flower
16,500
15,000
17,250
17,250
15,750
15,000
14,250
12,750
13,500
16,500
16,500
18,000
188,250
Sea
22,620
22,620
23,400
21,060
21,840
21,060
19,500
17,940
19,500
21,060
22,620
23,400
256,620
Lanna
24,000
26,400
26,400
24,800
24,000
25,600
23,200
24,000
22,400
25,600
28,800
30,400
305,600
Flower
11,050
10,400
11,050
10,400
10,400
9,750
8,450
9,100
8,450
9,100
10,400
12,350
120,900
Sea
10,880
10,200
10,200
9,520
10,200
10,200
9,520
8,160
8,160
10,200
12,240
14,280
123,760
Lanna
13,300
14,000
13,300
11,900
12,600
11,900
10,500
9,100
9,800
11,200
13,300
15,400
146,300
172,000
169,070
176,150
164,030
163,690
158,660
148,020
138,200
138,210
158,660
174,860
192,380
1,953,930
Handbag
TOTAL
SEP
YEAR 2
TOTAL SALE PRODUCT
SIZE
JAN
FEB
MAR
APR
MAY
Men's shirts
JUN
JUL
AU G
S"
15,600
15,000
16,000
14,500
14,900
13,000
12,500
9,600
M"
18,000
17,050
18,500
16,000
17,500
15,750
15,000
L"
21,000
19,500
21,000
19,850
19,000
19,500
XL"
19,050
18,900
19,050
18,750
17,500
SEP
OCT
NOV
DEC
TOTAL
9,700
14,200
15,500
17,500
168,000
14,550
14,300
16,000
18,500
20,000
201,150
18,750
17,000
16,550
17,500
19,000
21,000
229,650
16,900
16,350
16,000
15,850
17,300
18,000
20,050
213,700
JUL
AUG
OCT
NOV
DEC
TOTAL
PRODUCT
STYLE
JAN
FEB
MAR
APR
MAY
JUN
Fabric Curtain
Flower
16,500
15,000
17,250
17,250
15,750
15,000
14,250
12,750
13,500
16,500
16,500
18,000
188,250
Sea
22,620
22,620
23,400
21,060
21,840
21,060
19,500
17,940
19,500
21,060
22,620
23,400
256,620
Lanna
24,000
26,400
26,400
24,800
24,000
25,600
23,200
24,000
22,400
25,600
28,800
30,400
305,600
Flower
11,050
10,400
11,050
10,400
10,400
9,750
8,450
9,100
8,450
9,100
10,400
12,350
120,900
Sea
10,880
10,200
10,200
9,520
10,200
10,200
9,520
8,160
8,160
10,200
12,240
14,280
123,760
Lanna
13,300
14,000
13,300
11,900
12,600
11,900
10,500
9,100
9,800
11,200
13,300
15,400
146,300
172,000
169,070
176,150
164,030
163,690
158,660
148,020
138,200
138,210
158,660
174,860
192,380
1,953,930
Handbag
TOTAL
SEP
YEAR 3
TOTAL SALE PRODUCT
SIZE
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
Men's shirts
OCT
NOV
DEC
S"
16,700
15,850
16,500
15,300
14,080
13,650
13,200
10,100
M"
18,800
16,050
17,850
16,350
16,900
15,650
14,900
L"
19,700
19,300
20,050
19,000
18,550
19,700
XL"
18,900
19,350
23,000
21,050
19,000
18,000
TOTAL
9,800
15,000
16,500
18,650
175,330
14,000
13,800
14,900
17,000
21,000
197,200
17,050
16,850
16,600
18,000
18,900
21,500
225,200
17,050
16,500
16,000
18,000
19,050
21,000
226,900
JUN JUN
JUL
AUG
SEP
OCT
NOV
DEC
PRODUCT
STYLE
JAN
FEB
MAR
APR
MAY
Fabric Curtain
Flower Flower
18,750
17,250
15,000 15,000
15,750 15,750
19,500 19,500
16,500
15,000
13,500
14,250 14,250
18,000 18,000
15,750 15,750
20,250 20,250
199,500
Sea
21,060
23,400
25,740
19,500
21,060
21,840
22,620
19,500
20,280
22,620
21,060
21,840
260,520
Lanna
28,000
27,200
24,000 24,000
26,400 26,400
28,800 28,800
21,600
20,800
22,400
23,200 23,200
24,800 24,800
28,000 28,000
25,600 25,600
300,800
Flower Flower
11,700
11,050
13,500
9,100
12,350
13,000
11,050
9,750
8,450
9,750
11,700
13,650
135,050
Sea
11,560
12,240
10,880
12,920
10,880
10,880
11,560
12,920
12,240
9,520
12,920
14,960
143,480
Lanna
14,000
14,000
11,900
11,200
9,800
11,200
10,500
9,800
11,900
12,600
13,300
15,400
145,600
179,170
175,690
178,420
166,570
170,920
162,020
153,730
145,320
146,520
163,190
174,180
193,850
Handbag
TOTAL
TOTAL
2,009,580
YEAR 3
TOTAL SALE PRODUCT
SIZE
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
Men's shirts
OCT
NOV
DEC
S"
16,700
15,850
16,500
15,300
14,080
13,650
13,200
10,100
M"
18,800
16,050
17,850
16,350
16,900
15,650
14,900
L"
19,700
19,300
20,050
19,000
18,550
19,700
XL"
18,900
19,350
23,000
21,050
19,000
18,000
TOTAL
9,800
15,000
16,500
18,650
175,330
14,000
13,800
14,900
17,000
21,000
197,200
17,050
16,850
16,600
18,000
18,900
21,500
225,200
17,050
16,500
16,000
18,000
19,050
21,000
226,900
JUN JUN
JUL
AUG
SEP
OCT
NOV
DEC
PRODUCT
STYLE
JAN
FEB
MAR
APR
MAY
Fabric Curtain
Flower Flower
18,750
17,250
15,000 15,000
15,750 15,750
19,500 19,500
16,500
15,000
13,500
14,250 14,250
18,000 18,000
15,750 15,750
20,250 20,250
199,500
Sea
21,060
23,400
25,740
19,500
21,060
21,840
22,620
19,500
20,280
22,620
21,060
21,840
260,520
Lanna
28,000
27,200
24,000 24,000
26,400 26,400
28,800 28,800
21,600
20,800
22,400
23,200 23,200
24,800 24,800
28,000 28,000
25,600 25,600
300,800
Flower Flower
11,700
11,050
13,500
9,100
12,350
13,000
11,050
9,750
8,450
9,750
11,700
13,650
135,050
Sea
11,560
12,240
10,880
12,920
10,880
10,880
11,560
12,920
12,240
9,520
12,920
14,960
143,480
Lanna
14,000
14,000
11,900
11,200
9,800
11,200
10,500
9,800
11,900
12,600
13,300
15,400
145,600
179,170
175,690
178,420
166,570
170,920
162,020
153,730
145,320
146,520
163,190
174,180
193,850
Handbag
TOTAL
TOTAL
2,009,580
YEAR 4
TOTAL SALE
PRODUCT
SIZE
JAN
FEB
MAR
APR
MAY MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
Men's shirts
TOTAL
S"
17,000
16,700 16,700
17,500 17,500
16,800 16,800
15,800 15,800
15,450
14,500
12,000
11,500 11,500
15,250 15,250
16,900
19,000
188,400
M"
19,000
18,250 18,250
18,900 18,900
17,500 17,500
18,300 18,300
16,500
16,350
15,850
14,500 14,500
16,750 16,750
17,500
20,500
209,900
L"
20,000
19,050 19,050
22,000 22,000
19,500 19,500
19,100 19,100
20,200
19,750
18,700
17,500 17,500
19,500 19,500
21,050
22,000
238,350
XL"
19,500
19,900 19,900
20,500
20,300
19,800 19,800
19,450
18,800
17,050 17,050
16,800
19,000
19,500 19,500
23,050
233,650
JUN
JUL
AUG
SEP
OCT
NOV
DEC
PRODUCT
STYLE
JAN
FEB
MAR
APR
MAY
Fabric Curtain
Flower Flower
20,250
18,000
18,000 18,000
18,750
18,000 18,000
16,500
15,750 15,750
15,000
19,500
18,750
16,500
21,750 21,750
216,750
Sea
21,840
25,740 25,740
24,180
19,500
21,060 21,060
21,060
22,620
23,400 23,400
18,720
22,620
21,840 21,840
25,740
268,320
Lanna
20,000 20,000
18,400
16,800 16,800
19,200
20,000
22,400
20,800
23,200 23,200
23,200
21,600
23,200
27,200
256,000
Flower Flower
10,800
12,350 12,350
11,700
13,000
13,000 13,000
12,350
10,800
9,750 9,750
10,400
11,050
12,350 12,350
16,250
143,800
Sea
12,920
12,920 12,920
13,600
14,280
13,600 13,600
12,240
11,560
10,200 10,200
11,560
10,880
11,560 11,560
18,360
153,680
Lanna
15,400 15,400
16,800
14,000 14,000
13,300
17,500
18,200
16,800
17,500 17,500
19,600
18,200
17,500
20,300
205,100
176,710
178,110
177,180
172,130
176,160
174,350
167,730
162,650
163,280
173,600
177,900
214,150
Handbag
TOTAL
TOTAL
2,113,950
YEAR 4
TOTAL SALE
PRODUCT
SIZE
JAN
FEB
MAR
APR
MAY MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
Men's shirts
TOTAL
S"
17,000
16,700 16,700
17,500 17,500
16,800 16,800
15,800 15,800
15,450
14,500
12,000
11,500 11,500
15,250 15,250
16,900
19,000
188,400
M"
19,000
18,250 18,250
18,900 18,900
17,500 17,500
18,300 18,300
16,500
16,350
15,850
14,500 14,500
16,750 16,750
17,500
20,500
209,900
L"
20,000
19,050 19,050
22,000 22,000
19,500 19,500
19,100 19,100
20,200
19,750
18,700
17,500 17,500
19,500 19,500
21,050
22,000
238,350
XL"
19,500
19,900 19,900
20,500
20,300
19,800 19,800
19,450
18,800
17,050 17,050
16,800
19,000
19,500 19,500
23,050
233,650
JUN
JUL
AUG
SEP
OCT
NOV
DEC
PRODUCT
STYLE
JAN
FEB
MAR
APR
MAY
Fabric Curtain
Flower Flower
20,250
18,000
18,000 18,000
18,750
18,000 18,000
16,500
15,750 15,750
15,000
19,500
18,750
16,500
21,750 21,750
216,750
Sea
21,840
25,740 25,740
24,180
19,500
21,060 21,060
21,060
22,620
23,400 23,400
18,720
22,620
21,840 21,840
25,740
268,320
Lanna
20,000 20,000
18,400
16,800 16,800
19,200
20,000
22,400
20,800
23,200 23,200
23,200
21,600
23,200
27,200
256,000
Flower Flower
10,800
12,350 12,350
11,700
13,000
13,000 13,000
12,350
10,800
9,750 9,750
10,400
11,050
12,350 12,350
16,250
143,800
Sea
12,920
12,920 12,920
13,600
14,280
13,600 13,600
12,240
11,560
10,200 10,200
11,560
10,880
11,560 11,560
18,360
153,680
Lanna
15,400 15,400
16,800
14,000 14,000
13,300
17,500
18,200
16,800
17,500 17,500
19,600
18,200
17,500
20,300
205,100
176,710
178,110
177,180
172,130
176,160
174,350
167,730
162,650
163,280
173,600
177,900
214,150
Handbag
TOTAL
TOTAL
2,113,950
YEAR 5
TOTAL SALE PRODUCT
SIZE
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
Men's shirts
TOTAL
S"
18,500
17,900
18,050
17,500
16,900 16,900
16,400
15,900 15,900
13,050
12,500 12,500
16,100
17,500
20,100
200,400
M"
20,500
19,000
20,100
19,850
19,200 19,200
19,500
18,900 18,900
18,250
15,000 15,000
17,500
18,500
21,500
227,800
L"
21,500
20,500
22,500
21,000
20,900 20,900
22,500
20,500 20,500
20,000
19,800 19,800
20,150
22,350
22,500
254,200
XL"
20,900
21,500
22,350 22,350
22,000
21,800
21,450
21,000 21,000
20,800
20,000
22,500 22,500
23,500
24,500
262,300
JUN
JUL
AUG
SEP
OCT
NOV
DEC
PRODUCT
STYLE
JAN
FEB
MAR
APR
MAY
Fabric Curtain
Flower Flower
22,500
21,000
19,500
20,250
18,750
18,000
18,750
16,500
15,000
16,500
18,000
22,500
227,250
Sea
22,620 22,620
25,740
24,960 24,960
18,720
21,840
21,840
23,400
23,400 23,400
19,500
22,620 22,620
21,060
26,520 26,520
272,220
Lanna
20,000
20,800
16,000
19,200
21,600
21,600 21,600
23,200
24,800
25,600
24,000
24,000
28,800
269,600
Flower Flower
13,000
12,350
13,000
13,650
14,300
11,700
12,350
12,350
13,000
12,350
14,950
17,550
160,550
Sea
14,280 14,280
14,960
16,320 16,320
14,960
13,600
12,920
15,640
16,320 16,320
13,600
12,920 12,920
13,600
19,040 19,040
178,160
Lanna
16,100
16,800
15,400
13,300
16,800
17,500 17,500
18,900
19,600
19,600
17,500
17,500
20,300
209,300
189,900
190,550
188,180
180,430
185,690
183,410
188,540
185,070
173,600
182,140
190,960
223,310
Handbag
TOTAL
TOTAL
2,261,780
YEAR 5
TOTAL SALE PRODUCT
SIZE
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
Men's shirts
TOTAL
S"
18,500
17,900
18,050
17,500
16,900 16,900
16,400
15,900 15,900
13,050
12,500 12,500
16,100
17,500
20,100
200,400
M"
20,500
19,000
20,100
19,850
19,200 19,200
19,500
18,900 18,900
18,250
15,000 15,000
17,500
18,500
21,500
227,800
L"
21,500
20,500
22,500
21,000
20,900 20,900
22,500
20,500 20,500
20,000
19,800 19,800
20,150
22,350
22,500
254,200
XL"
20,900
21,500
22,350 22,350
22,000
21,800
21,450
21,000 21,000
20,800
20,000
22,500 22,500
23,500
24,500
262,300
JUN
JUL
AUG
SEP
OCT
NOV
DEC
PRODUCT
STYLE
JAN
FEB
MAR
APR
MAY
Fabric Curtain
Flower Flower
22,500
21,000
19,500
20,250
18,750
18,000
18,750
16,500
15,000
16,500
18,000
22,500
227,250
Sea
22,620 22,620
25,740
24,960 24,960
18,720
21,840
21,840
23,400
23,400 23,400
19,500
22,620 22,620
21,060
26,520 26,520
272,220
Lanna
20,000
20,800
16,000
19,200
21,600
21,600 21,600
23,200
24,800
25,600
24,000
24,000
28,800
269,600
Flower Flower
13,000
12,350
13,000
13,650
14,300
11,700
12,350
12,350
13,000
12,350
14,950
17,550
160,550
Sea
14,280 14,280
14,960
16,320 16,320
14,960
13,600
12,920
15,640
16,320 16,320
13,600
12,920 12,920
13,600
19,040 19,040
178,160
Lanna
16,100
16,800
15,400
13,300
16,800
17,500 17,500
18,900
19,600
19,600
17,500
17,500
20,300
209,300
189,900
190,550
188,180
180,430
185,690
183,410
188,540
185,070
173,600
182,140
190,960
223,310
Handbag
TOTAL
2500000 2000000 1500000
Total sale
1000000 500000 Total sal e
0 Ye ar ar 1
Ye ar ar s2 s2
Ye ar ar3
Ye ar ar4
Ye ar ar5
Total sale for 5 year
Marketing Expenses: Advertising
Bonito Batik Company advertises our product through many different ways and media such as magazine, cutout and handbill. We a lso uses direct – response
TOTAL
2,261,780
2500000 2000000 1500000
Total sale
1000000 500000 Total sal e
0 Ye ar ar 1
Ye ar ar s2 s2
Ye ar ar3
Ye ar ar4
Ye ar ar5
Total sale for 5 year
Marketing Expenses: Advertising
Bonito Batik Company advertises our product through many different ways and media such as magazine, cutout and handbill. We a lso uses direct – response advertising. This is type of advertising that encourages the consumer to r espond either by providing feedback to the advertiser or placing.
Advertising on handbill
The handbill is for special day such New Year cerebration, valentine day, and the promotion seasons. Handbill was printed by our company 1 sheet of paper = 0.50 0. 50 bath 1,000 sheets of paper per a time = 1,000 x 0.50 = 500 bath Hiring worker to distribute handbill a time t ime per one person = 300 bath 2 workers = 300 x 2 = 600 bath 4 time a year = (4 x 500 = 2,000) + (4 x 600 = 2,400 bath) = 4,400 bath Advertising on “Compass Chiang Mai magazine”
1 time per month = 300 bath 12 months = 300 x 12 = 3,600 bath 4 time a year = 3,600 x 4 = 14,400 bath Total advertising cost per year year = 4,400 + 14,400 = 18,800 bath
Source: www.compasscm.com , Tel. 053 - 814455 – 113
(marketing)
Conclusion Although Thailand is currently the business for many batik almost every region of Thailand. But the current respons r esponsee of the batik bat ik products has increased, because we export to overseas sales, such as Asian Asia n and European countries. Resulted in orders to many, because the nature of the product as a handmade, with high resolution and combined with the cultural patterns in northern and painting techniques that are d ifferent from other brands. And also many types of goods such as scarves curtains pillowcases, shirts, etc, which can be used as souvenirs and gift. gift. In addition, the government's policy policy to support OTOP project project which provides a product display and product to product is known, more interesting. Market and potentially increase can generate generat e revenue for the operator more. Increase t he occupation and income to people in the community or people in the country. Reduce the problems caused by unemployment, can also use art skills to adapt the wo rk as well. The form of beauty products and a variety of patterns patt erns for customers to buy. The products are different, unique style. This allows customers to rely on my heart and can be ordered at any trading throughout the year.
Chapter 4
Chapter 4: Technical Feasibility Study
Product Characteristics The product of Bonito Batik are concerned about the design first because we try to make the point of different from many competitors in market and present a new design of batik into the market under the brand of Bonito Batik company. Bonito Batik focus on three most popular shape of design, there are Fabric curtain, Handbag, and shirt concept design. The entire product designs that we try to fix on the products shapes and follow the modern trend in nowadays customer favor Bonito Batik creates these designs for use by themselves, New Year gift, special day gift, and whatever festival, they would get the high quality product and may be the product that they make by by themselves. Besides, there is a point that different different from other ot her is the product produc t add combined with the cultural patterns in northern and unique color painting techniques a specific format of Bonito Batik company. Three concept designs
-
Fabric curtain
The design that to let customers feel fresh, good when they are looking at the first time, it able bring the feeling as the view sea, fish, fish, flower, Lanna, etc. etc .
-
PRODUCT
STYLE
SIZE
PRICE (Bath per piece)
Fabric Curtain
Flower
2 x 1.5 m
750
Sea Lanna
(the same size)
780 800
Shirts
The design that concern about the feeling of customer especially couples, kids shirts, etc. This design is is one of the design design that more in sale. At the special point of the product, pro duct, we design for the modern and ventilate as well.
-
PRODUCT
SIZE
PRICE (Bath per piece)
Men's Shirts
S 36"
250
M 38"
300
L 40"
350
XL 42"
380
Handbag
The design is the main main product produc t design of Bonito Bonito Batik.
It focuses on the favorite
convenience convenience and like like arts product together toget her different different from the market.
PRODUCT
STYLE
SIZE
PRICE (Bath per piece)
Handbag
Flower
16" x 12"
650
Sea Lanna
(The same size)
680 700
Product process / Service process Bonito batik company, have own manufactory manufactor y for producing the product because the t he product hand made, have producing by people has skilled of arts and be creative as well. Product is combination of manufactures and customer design for customer to part icipate in the production under the t he identity of Bonito Batik Bat ik Company. Company.
The product order process:
Create and design the products
Bonito batik design
Fabric curtain design
Handbag design
Make the production order to own factory
Transfer products products to Bonito Batik’s store
Deliver products to customers
The production process come from the own factory for producing the order. There are 7 steps in the production pro duction process for the manufactory. - Raw material preparation - Body preparation - Employee good skill of design preparation - Shaping - Special color and cotton cotto n 100%
Shirt design
- Boiled clothes and Drying Dr ying - Technique to protect product
The production process of general batik company below: 1.Design patterns on paper with pencil. When completed, then use the Magic Pen black pencil to draw the boundaries clearer pattern.
2. The wax batik written to the liquid and then t hen melted down to paint the frame edge. Using a brush dipped candles, and then be applied on all 4 edges of the frame around ar ound Do not get too thick because it makes it easy clothes off Grand. Then, the fabric fabr ic that is mounted on the frame with solid material or face, such as bottles, coins, keys, press the bottom on the edge of the frame and a nd gently rub each side of the frame and 4 frames.
3. The pattern is prepared to insert a frame under the fabric stra ining to make a pencil tracing trac ing on the canvas with 2 B or above.
4. Use Ting Chan Tien draw water at t emperature suitable draw water by leaving candles only 2-3 times in order to adjust the t emperature of the Ting Chan, and then try to write on a slip viewed to ensure that the candle has a line size required. requ ired. The candles should not be too big a line 2 to 3 mm, and then start a real start writing a rectangular re ctangular frame around the outside edge for four before spread to the woo den frame. To write the copy pattern to drag slowly. slowly. Be careful care ful not to break the t he line because the candles will make time to color will be released together. Beautiful colors will not rot and will need to use water, wax paper, tissue lining around the outside of the pen to write, so that every candle wax drips down on parts. 5. Down to the desired color pattern. patter n. Like Like a painting with a brush in the space. The weights for the light to be level. How to paint a light color first, then medium and dark colors will be highlighted with a beautiful light and shadow. To have a flutter flutt er sweet, then use the water cooling portion to the light and then stained dark dithered together cause shadows weigh light - dark and see the depth of beauty and wait until Dry. Close.
6. The fabric paint and dry coating coat ing of sodium silicate to the fall have two different color ways wa ys of coating by dipping into the liquid tank. The press caught the liquid wet the t he entire piece. Pat then brought up oral liquid tank to drop back into the t he tank is brought back again, and another way is to use a brush or roller and t hen dip solution used to paint on a canvas stretched on a frame around the piece. This method is widely used because each washed well and less damaged parts. Then leave 6 to 8 hours for chemical react ions before being cleared. 7. To wash the fabric so that the mucous coating of sodium silicate silicate in the container off with larger amounts of water can enter the lot. It will come off the excess color and must must have water to flow over the years. Or change the water frequently. frequent ly. Until the wash water is clear and slips out of hand, so stop the process of washing. Do not spread out to dry mass. It would put together a color wash and clean each piece o f color to come off the stick back. 8. The fabric that is cooked in boiling water mixed with detergent or soap, Sunlight post in about 1 tablespoon per 20 liters of water to remove the line peeling off wax fro m fabric Using the handle end of fabric and cloth dipped in boiling water over o ver the land. Then slowly lift up and down and dry cloth until the wax off. Dip switch to t he other side do the same. Notice that t he line out or the candle out. Do not boil the soaked cloth to make up a false sense of waste 9. The fabric onto the drum with water to a full laundry by capturing end dipped as stripping out candles out to clean up and waste candles fall out and be soaked in water for a 1 to 2 hours if it is dark. Check that there should be washed or not. If you fall, change the wat er in the basin and the new surplus falls out. 10. The fabric onto the drum with water to a full laundry by capturing end dipped as stripping out candles out to clean up and waste candles fall out and be soaked in water for a 1 to 2 hours if it is dark. Check that there should be washed or not. If you fall, change t he water in the basin and the new surplus falls out.
Source: http://www.phuket http://www.phuketbatik.com/ batik.com/index.php?option index.php?option=com_co =com_content&view=article& ntent&view=article&id=64:200 id=64:2009903-27-16-29-24&catid=1:2009-03-10-08-03-53&Itemid=42 The Bonito Batik package order process:
- Create and design packages - Make the order to package manufactory - Check and receive packages - Transfer Bonito Batik design packages to the production manufactory
Packaging Product Company Our companies choose Siva supply Co. to do packaging product for Bonito Batik Bat ik brand. Siva supply company is a manufacturer of plastic bags that co ncentrates on the quality of product, good printing and the customers' highest benefit by using high technological and modern efficiency machineries, Including fasting fasting service safety and cleanness standard. (Fashion Bags)
Contact
SIVA SUPPLY CO.,LTD. Address: 48/21 Moo 8 Panyalndra Rd. Bangchan Klongsamwa Bangkok 10510 Thailand Tel: 066 0-2914-2157, 066 0-2914-2158 Mobile: 081-6389399 Fa : 066 0-2914-1572 Email:
[email protected] :
[email protected] [email protected] m
Location The location is important for Bonito Batik Company; it is the place that able to let the company gains maximum profit. We point to establish the company at the one location in Chiang Mai province the place is famous and there are many shop, school around this area. It is near the most famous market Nhong - hoi and hotel in Chiang Mai. According to the number of population in Chiang Mai there are 1.63 million people that we focus on our main target is the group of Thai and foreigner there are 674,682 people. At the company area the Mahidol – Nhong hoi road there is one commercial building that we buy 3 floors our company office. At the area that there are not any batik companies or any stores that will be our competitors because there are many accessory shops. With the batik products that the most of Thai and foreigners are favor and like to walk around the area after school every day, so this location is the golden place for establish the company, gain the profit and catch the market. 460/39 Chang Klan road Aumpur Muang Chiang Mai province 50100 Tel. 053-234263, www.bonitobatik.com
Commercial building
Facility Layout
Logistics Management
Package
Sell
Order
Bonito Batik
Customer
Company
Production
Order
Sell
Order design
Own factory to producing product
Our company concern more about logistics management because this is the one process that able to let the t he company reduces cost, increase in sale, and gain profit rap idly. The main activities of Bonito Batik company co mpany management are: -
Order management We focus on the beginning of the order process that we t ry to make the right order information from customers and make the order s ystem available and the company design the best product and make the order to manufacto ry for producing the products.
-
Packaging We try to design Bonito Batik own package and make t he order to manufactory that for make the value of tthe he products, identity of product when customer need and make the point of different from fro m others.
-
Transportation
Communication system
We make the order for producing producing product and package on three methods, one is on the internet, one is face to t o face and one is on phone.
Facility Management Our Company has many staff and much equipment to serve to all customers and when customers want to contact to our company is is easy because customers have many way to contact ex. Internet, Telephone, or come to our company.
Cost of Investment Our company prepared product by the customer's order and deliver deli ver services to customers. The Material is used a great cotton from factory. We will make high-quality products for customer customer satisfaction.
Investment Cost
Table set
1,500 Baht
Manager Table
3,500 Baht
Sideboard
3,900 Baht
Manager chair
Chair
1,500 Baht
590 Baht
Folder sideboard
5,100 Baht
Set of sofa
9,890 Baht
Computer table
1,900 Baht
HP Compaq Presario
17,300 Baht
Canon Laser Shot LBP6000 Laser Printer
Brother FAX-2820
Casio MX-120S
3,050 Baht
8,990 Baht
330 Baht
Samsung AS10ULN 10000 BTU
15,900 Baht
Sony KLV-32V200A
54,990 Baht
Camera Canon IXUS 1000HS
13,900 Baht
Operating Cost Raw material Cost
Cotton
35 Baht / m.
Brush 200 Baht / set
Jun Ting (a pen use to put boil candle
230 Baht
into cotton)
Wood frame
30 Baht / picec
Dye 4500 – 6000 Baht / kg.
Sodium silicate
20 Baht / kg.
clotheshorse
299 Baht
Wax mix with candle
950 Baht /piece
water bucket 199 Baht
Caldron
299 Baht
Gas stove ( for boil candle)
599 Baht
Bowl
10 Baht / piece
http://classified.sanook.com/item/3922285
Direct Labor Cost Wage rate for our organization or ganization we estimate for rate worker of o f Chiang Mai. Designer
1 person
10,000 baht /month
Assistant designer
1 person
7,000 baht /month
Employee
10 person (10* 4500) 45,000 baht /month
Delivery boy
2 person (2*4000)
Total cost/month
8,000 baht /month 70,000 baht/month
http://www.ch7.com/news/news http://www.ch7.com/ news/news_thailand_detail.aspx?c=2&p=4&d=117291 _thailand_detail.aspx?c=2&p=4&d=117291
Overhead cost Indirect labor cost
Manager
1 person
30,000 baht/month
Accountant
1 person
10,000 baht /month
Sale and marketing
1 person
10,000 baht /month
Housekeeper
1 person
3,000 baht /month
Total
53,000 baht /month
Management Analysis
Administration Administration Cost
The company has classified the cost for the t he areas other than manufacturing, such as telephone, electric, water, water , etc. We will then use the money to pay. pa y. And if any equipment or facilities within its worn or o r damaged. We would take the money this is the cost to repair equipment.
Conclusion
The products of Bonito Batik are concerned about the design first because we try to make the point of different from many competitors in market and present a new design of ceramic into the market under the brand of Bonito Batik Company. Bonito Batik focus on three styles of design concept, there are Fabric curtain design, Handbag design, and Shirt concept design. The entire product designs that we try to fix on the products shapes and follow the modern trend in nowadays customer favors. Bonito Batik creates these designs for use by themselves, New Year gift, special day gift, and whatever festival. Besides, there is a point that different from others is the product add combined with the cultural patterns in northern and unique color painting techniques a specific format of Bonito Batik company that can make high profit for company.
Chapter 5
Financial Plan Initial investment To estimate the financial investment and will invest mainly in equipment, appliances and decor bonito batik company. It is not fixed assets. In addition, tools to use the shop to have the assets used in operations and materials bullying. And raw materials used in the company. The estimated financial investment invest ment of the project can be summarized as follows. Source of fund The company has investment by the 8 executives will invest in t he same rate. Each 180,000 Total capital to total 1.44 million to THB @ All Bonito Batik company Income statement For the ended month, August 31, 2010 (TH Baht)
Sale Cost of goods sold Depreciation Expenses Wages Expenses Operating Expenses; Rent expense Electricity expense Utilities expense Water supply expense Gas expense Other expense Taxable income Taxes (34%) Net Income Dividend Addition to retained earnings
960,000 413,900 7,709 210,000 15,000 10,000 5,000 1,000 5,000 2,000
38,000 290,391 (98,732.94)
191,658 80,000 111,658
@ All Bonito Batik company Balance Sheet For the ended month, August 31, 2010 (TH Baht) Asset Cash Inventory
300,000 10,000
Fixed Asset Equipment & Material Table & Chair Furniture Decorate Restaurant Accrued rent expense Less: Accumulated depreciation Total asset
150,000 140,000 147,000 45,000 180,000 (7,709)
Liability & Equity Rent Payable Total liabilities
180,000
@all Bonito Batik, capital Total liability and equity
654,291 964,291
180,000 784,291 964,291
@ All Bonito Batik company Statement of cash flow For the ended month, August 31, 2010 (TH Baht)
Cash flow from operating activities Cash receive from customer Cash paid for supplies Cash paid for employee Cash paid for utilities Net cash provided by operating activities Cash flow from investing activities Purchase of equipment Net cash used by investing activities Cash flow from financing activities Investment by owner Net cash provided by financing activities Net increase in cash Cash balance, August 1, 2010 Cash balance, August 31, 2010
960,000 (413,900) (210,000) (38,000) 298,100 (482,000) (482,000) 300,000 300,000 116,100 0 116,100
Financial Analysis @ All bonito batik company Income statement For the ended month, August 31, 2010 (TH Baht)
Sale Cost of goods sold Depreciation Expenses 7,709 Wages Expenses Operating Expenses; Rent expense Electricity expense Utilities expense Water supply expense Gas expense Other expense Taxable income 290,391 Taxes (34%) Net Income Dividend Addition to retained earnings
960,000 413,900
210,000 15,000 10,000 5,000 1,000 5,000 2,000
38,000
(98,732.94) 191,658.06 80,000 111,658.01
From Income Statement, calculate for
Financial ratio Liquidation Ratio
1. Current Ratio
2. Quick Ra Ratio
3. Cash Ratio
current Asset
current Liabilities
482000
180000
2.68
current as asset - inventory current li liabilities 482000 - 10000
180000
cash
current liabilities
300000
180000
cost of goods sold
inventory
413900
10000
2.62
1.67
Asset Ratio
1. Inventory turnover
2. Day's sale in receivable 36 365 days
3. Total asset turnover
41.39
inventory turnover
365 days
41.39 times
sale
total asset
960000
482000
net income
sale
290391
300000
net income
total asset
290391
482000
net income
total equity
290391
774291
8.82
1.99
Profit
1. Profit Margin
2. ROA
3. ROE
0.97
0.602471
0.375041
Break Even Point Cost of goods sold = 413,900 / month Customer number = 320 people/ day Customer=9,600 people/ month So Break Even Point is 43.115 THB/dish Menu
Price
Break Even Point
Profit
Profit * Customer/month
Steak 7 sauce If we sold steak 7 sauces in Break Even Point prices, we haven’t profit. So if we sold this price= 99THB. , We have a profit pro fit = 55.885 THB. /dish
NPV NPV Months Initial cost
0
-฿
1
2
฿ -฿ ฿
960,000.00 ฿ 413,900.00 -฿ 546,100.00 ฿
960,000.00 413,900.00 546,100.00
฿
546,100.00 ฿
546,100.00
482,000.00
Revenue Cost Net in Flow Salvage Net cash flow
Payback period Month 0
-฿
482,000.00
1
฿
400,000.00
2
฿
1 0.164 1.16 1.164 4 Month Monthss Payback period
500,000.00
ARR The Average accounting return:AAR Month1
Month2
Revenue
฿
960,000.00 ฿
960,000.00
Expense
-฿
38,000 38, 000.00 .00 -฿
38,000 38, 000.00 .00
Earning before depreciation
฿ -฿
922,00 922,000.00 0.00 ฿ 7,709 7,7 09.00 .00 -฿
922,00 922,000.00 0.00 7,709 7,7 09.00 .00
Taxes (34%)
฿ ฿
914,29 914,291.00 1.00 ฿ 310,85 310 ,858.94 8.94 ฿
914,29 914,291.00 1.00 310,85 310 ,858.94 8.94
Net income
฿
603,43 603,432.06 2.06 ฿
603,43 603,432.06 2.06
Average income
฿
603,432.06
Average book value
฿
241,000.00
Depreciation Earning before taxes
Average account return
250%
IRR Internal Rate Of Return :IRR Month 0 1 2 IRR
Cash Flow (482,000.00) 400,000.00 500,000.00 51%
Sensitive Analysis Worst Case
bonito batik company Cost increase 20% @All Bonito Batik company Statement Pro Forma of Cash Flow For the ended month, August 31, 2010 (TH Baht)
Cash flow operating activities Cash receive from customer custo mer
฿
960,000.00
Cash paid for supplies
฿
496,680.00
Cash paid for employee
฿
210,000.00
Cash paid for utilities
฿
45,600.00
Net cash provided by operating activities Cash flow from investing activities Purchase of equipment
-฿
482,000.00
Net cash used by investing activities
฿
Cash flow from financing activities Investment by owner
1,712,280.00
฿
-
482,000.00
300,000.00
฿
Net cash provided by financing activities
฿
300,000.00
Net increase in cash
฿
1,530,280.00
฿
0.00 1,530,280.00
Cash balance, August 1, 2010 Cash balance, August 31, 2010
NPV
Months Initial cost Revenue Cost Net in Flow
0
1
2
-฿ 482,000.00 ฿ 960,000.00
฿ 960,000.00
-฿ 496,680.00 -฿ 496,680.00 ฿ 463,320.00
฿ 463,320.00
฿ 463,320.00
฿ 463,320.00
Salvage Net cash flow
Worst case
Sale decrease 20 % @All bonito batik company Statement Pro Forma of Cash Flow For the Ended Month, August 31, 2010 (TH Baht)
Cash flow from operating activities
Cash receive from customer
฿
768,000.00 768,000.00
Cash paid for supplies
฿
413,900.00
Cash paid for employee
฿
210,000.00
Cash paid for utilities
฿
38,000.00
Net cash provided by operating activities
฿
1,429,900.00
-฿
482,000.00
Net cash provided by financing activities
฿
300,000.00
Net increase in cash
฿
1,247,900.00
Cash flow from investing activities
Purchase of equipment
-฿
482,000.00
Net cash used by investing activities Cash flow from financing finan cing activities
Investment by owner
300,000.00 300,000.00
฿
0.00
Cash balance, August 1, 2010 Cash balance, August 31, 2010
1,247,900.00
฿
NPV Months Initial cost Revenue Cost Net in Flow
0
-฿
1
2
482,000.00 ฿ -฿
768,000.00
฿ 768,000.00
413,900.00 -฿ 413,900.00
฿
354,100.00
฿ 354,100.00
฿
354,100.00
฿ 354,100.00
Salvage Net cash flow
Best case
Cost decrease 20%
@All bonito batik company Statement Pro Forma of Cash Flow For the Ended Month, August 31, 2010 (TH Baht) Cash flow from operating activities
Cash receive from customer
฿
960,000.00
Cash paid for supplies
฿
331,120.00
Cash paid for employee
฿
210,000.00
Cash paid for utilities
฿
30,400.00
Net cash provided by operating activities
฿
1,531,520.00
-฿
482,000.00
Net cash provided by financing activities
฿
300,000.00
Net increase in cash
฿
1,349,520.00
Cash flow from investing activities
Purchase of equipment
-฿
482,000.00
Net cash used by investing activities Cash flow from financing activities a ctivities
Investment by owner
300,000.00
฿
0.00
Cash balance, August 1, 2010 Cash balance, August 31, 2010
฿
1,349,520.00
NPV Months Initial cost Revenue Cost Net in Flow
0
-฿
1
2
482,000.00 ฿
960,000.00 ฿ 960,000.00
-฿
331,120.00 -฿ 331,120.00
฿
628,880.00 ฿ 628,880.00
฿
628,880.00 ฿ 628,880.00
Salvage Net cash flow
Best case
Sale increase 20% @All bonito batik company Statement Pro Forma of Cash Flow For the Ended Month, August 31, 2010 (TH Baht)
Cash flow from operating activities
Cash receive from customer
฿ 1,152,000.00 1,152,000.00
Cash paid for supplies
฿
413,900.00
Cash paid for employee
฿
210,000.00
Cash paid for utilities
฿
38,000.00
Net cash provided by operating activities
฿
1,813,900.00 1,813,900.00
-฿
482,000.00
Net cash provided by financing activities
฿
300,000.00
Net increase in cash
฿
1,631,900.00
Cash flow from investing activities
Purchase of equipment
-฿
482,000.00
Net cash used by investing activities Cash flow from financing finan cing activities
Investment by owner
300,000.00 300,000.00
฿
0.00
Cash balance, August 1, 2010 Cash balance, August 31, 2010
฿
1,631,900.00
NPV 0
Months Initial cost Revenue Cost Net in Flow
-฿
1
2
482,000.00 ฿ -฿
1,152,000.00
฿ 1,152,000.00
413,900.00 -฿
413,900.00
฿
738,100.00
฿
738,100.00
฿
738,100.00
฿
738,100.00
Salvage Net cash flow
Conclusion Our company have a success in target tar get and profit increase more last month. And have more customer , @ bonito batik company is popular company in area. ARR on second month is 250 % , IRR is 51 % , Payback period is 1.164 month , ROA is 60 % per year more than ROA of target . Therefore, the result happen make impressed in the business.
Chapter 6
Risk Management Business Risk Analysis
A business risk is very important to do business which a circumstance or factor that may have a negative impact on o n the operation or profitability of a given g iven company. company. Because of price pr ice of gasoline increase, then each co mpany is increased the outcome. Profit and income are grown down. Each a business must solve the problem. There is the competition and try to build the prominent point to the business of oneself, both of in the promotion and building strategy. The Company has identified the risk which may affect operations such as the sales and production risk, human resource risk, financial risk, planning and information risk. Meeting and planning to resolve problems found in each. To be adjusted and used to sell products to customers next time. And development of the company to be targete d. To reduce the risk that the t he company must must be meet in areas such as finance, marketing, market ing, sales, competitors, and resources for production. Factors affect ing the risk of many-sided. many-sided. Risk of human resources. We are a co mpany with a small number of o f employees in the design. Marketing risk. We have to compete with rival business. It must find customers and sell products as possible. In order to expand its market and its products in export. Risk of financial planning. We need to plan and budget for each production. To think of profits profits and cost of production. But our company is meeting and consultation with employees. And helped solve problems encountered at a time until completion well. Because the cooperation of employees in the company. Brit made through t hrough any possible issue. Most importantly, the company can keep track of news that would benefit benefit the t he company in the business. To receive benefits. We know the world economy, and plan on doing business correctly. And benefit as much as possible
PEST Risk Analysis Political
Government is a key leadership role in creating prosperity to occur. Across all regions of the country and create a quality of life of Thai people have always been and also has incentives to accelerate the tax support. Developing export tourism industry is affect the economy, Country’s growth and people have a job with more income and poverty.
The Government recognizes the important business of the Alliance can not help business development and other important countries of Thailand. In a Public Organization in major agencies in developing and promoting marketing tourism award in Thailand to generate income from tourism to the country level. Process of government the service was launched. Most of the Thai people exhausted. Local government must take measures and rights, benefits tax. To support, modifying growth business investment of private sector in Chiang Mai, Rights and benefits of tax Chiang Mai Municipality will use the tool. Promote the changes in the ceramic business. In a separate principle, 2 way is to tax and tax breaks that are in jurisdictions. Operators interested in investing or expanding investment. The financial cost is lower by the tax exemption or modification to specific types of activities will support the development of business and tourist streets of Chiang Mai achieve goals.
Economical
Current world economic conditions. Considered Considered in the recovery reco very period. Because every country around the world are adjusted for a severe economic slump. Reducing Reducing interest. To stimulate the economy is the way other countries co untries experiencing serious adopted a suitable private sector investments to take t his opportunity opportunity to remove start investing in businesses. Thailand in the past. The crisis is reasonable. Which caused problems. Whether the global economic slowdown. Political problems. And stabilit y of government. Including issues of investor confidence. Resulted in the country's economy straight down horribly horr ibly,, however, considered Thailand's economy. I tend to have faster recovery. Because the government to resolve the issue. And economic policies are driving fast. Whether Whether a policy loan. To add to the economy. economy. And the importance importance of driving. driving. Thai budget budget strong. Which Which resulted resulted in investment in many industries. A major tourist attraction attract ion of the two countries underscores the Business Tourism. Provinces are deemed ready to serve tourists in this category. As a province with many hotels serve and attractions attract ions that are popular in the world. If you are finished will result in economic growth. Not only in the province. But also to the overall economy of the co untry, another important part. That will develop tourism to urism in the project. Visitors come to support this business, especially in Chiang Mai. Whether to open the airline d irectly into a 5-6 Chiang
Mai airline or driving Health "hub Medical Health Care," along a long with a city popular in the world is to serve the city cit y of Chiang Mai. Technology
Department of Science Service is research and Experiments in batik technology techno logy to be develop manufacturing processes and Quality of Fabric and products and also broadcast to t he audience. This action of the Department o f Science Service helps reinforce basic science a nd technology performance of the country strong. The Department of Science Ser vice has set guidelines for the research and development, industr y medium-sized medium-sized (SME) for sustainable development and new knowledge to use in developing and industrial. Rural economies and societies of the country flourish. Internet
We used to communicate information within and outside agencies to re duce the steps at work cause convenience correct operation operat ion of the organization. Working with the Internet is part of the organization organizat ion will be successful in operating high. It can be used to contact customers directly but on the other hand is the cost higher. If you want a quality system cost will upward with.
Transportation
Used in moving and transporting goods from factory to customer. The implementation of computer and technology help to convenient and Speed of the transport. Affect t he transportation is efficient. The company co mpany has won the trust and confidence of customers. When the move, Transportation Tr ansportation and good and on schedule.
Infrastructure
Because of the company are components of the electroni electro nicc system Infrastructure Infrastructur e technology is worth more. Costs in procurement are more maintenance, respectively. But the part that God will have advantages in advanced manufacturing. Meet customer needs.
Information Technology
IT has been used in the management applied to cause the oper ation. Effective and making decisions in operations management are corporate corporat e survival.
Social
The company is located within the source business reputation and area where the government has supported Chambers. There are also other companies located nearby and neighboring provinces also. Factors include the cultural aspects that are the same culture and they have good health consciousness, population has growth rate, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products are high and company can operates as well. Furthermore, companies may change various management strategies to adapt to these social trends.
The Factors of Business Risk
Risk factors that affect the Batik industry, the t he current cost of production increased by economy the price of goods has increased. And batik became increasingly popular. Bat ik today is a product of the most popular in the market. Especially the international market such as U.S. European countries, countries, Australia and Japan. Batik Batik imports from Thailand Thailand to sell in the form of finished products. Because of the economic eco nomic recovery of the countries. The U.S. economy clear and consistent recovery. While the recovery of the Euro and the Japanese started low, the U.S. inflation rate. rat e. Lower food prices lower. The inflation of the euro countries, accelerating accelerat ing slightly, but remains low. As with the price level in Japan increase slightly but remain negative on oil price increases in recent years. Due to the uncertainties o f the global economy and domestic political problems. Volatility of t he baht and capital flows. As well as other natural natur al disasters. The index of consumer confidence dropped. Investors and tourists to reduce trade t rade and travel. Production Pro duction volumes for the Company's products less and less order. Affect the t he company. company. Caused losses in investment as a Business batik. Because the
money is not constant. The loss of profit on goods to be exported. And cost in the production of batik is higher. Pose a risk to investors. investors. In Thailand there are many companies that export batik. The network is important southern Thailand. Phuket. The leading producers and exporters sell Batik most. We have led the company to invent new patterns that t hat differ from Phuket. The company is located in northern Thailand. Thailand. We have have patterns of batik pattern of Lanna art. This is different from from Phuket Make it attractive to foreigners more. Given such risk factors, facto rs, the Company have focused on market to help our business has has a certain position and can develop our market and has maintained maintained profitability in the long run with increased efficiency of o f production cost management.
The risk management from competitive in the business
From the problem of economic slow down and entrepreneur in countries increase more than consume needs. It may result in batik bat ik industry industry of the market competition more intense so increase for capacity in competition management department concern to the process of research and development for decrease production capita l. So the company will develop the products has colors beautiful, new desire format and decr ease the capital then t hen concern to customer requirement. Consist in the company have high produce production then minimum of production per unit lower. The company has own channel distributions to sell the product to the contractor. Therefore t he company can accept risk management competition in the price of sell. In addition, addit ion, export markets, the company have not sold because it seriously needs in the country before, if the remaining re maining capacity of the company to expand its exports to increase again.
Risk Factors on Sales and Production In nowadays, the economy worldly crisis has many lateness and there are many problems price competition and rapidly changing design and production which are competitive the worldwide. The order product began to find scarce because t he materials are expensive and hard to find in short supply. In large countries, it is growing each the country will also keep the cost of goods does not raise the price more and to maintain the liquidity of the product
quality as well. Our company has preceded the policy for decreases the risk of the human resource to keep as follow: - The Company has its own product design and development innovative products to always. - Our company has diversified price to various var ious for easy to customer’s decision. - Our company will increase the financial position to have tough competition and have more financial flexibility.
Human Resource Risk The personnel who have skill in designing goods and industry batik rather have limited. Also the new personnel development until they are fully capable of producing affordable quality products and unique with competitive prices in the market will generally take time. In addition the number the specialist and who have an e xperience of design in the batik bat ik industry industry is still limited compared co mpared to the export values of the Phuket’s batik.
The company has preceded the policy for decreases t he risk of the human resource:
-
The Company has an excellent human resource development and trained to educate and instill a modern morality to the personnel officer.
-
Provide the knowledge and expensive to the personnel.
-
Commitment to the develop human resources resource s to new personnel.
Financial Risk To adapt to cope with to the financial risk is pertaining to policy, practice financial, technique, management and arising in the current is very important to investors, Thailand's financial markets in the future. The expectations of reward on investment may become one of the investment decisions but the risk management is a very important, also beco mes to the direction for the development of financial markets in Thailand. By learn to changes in demand and supply of investment in the financial markets always.
As the Company engages in designing and selling batik products to tourists markets, the new product of company could be subject to tourist’s decision from product pricing and product trend to attractive to urists group to buying. buying.
The business is a new business should have knowledge and e xperience to do the t he business. We should avoid high-risk business. If will bring products to market, at least must have acceptance products evidence from fro m target customer and have must to are the pro ducts that have done market test already. Financial policy, in the growth of the business must have the stability and trustworthy by consider the growth from the profit o f the business. If the business has the problem and has necessity must build a debt, the first thing to consider is the ability of repayment.
Risk Factors on Information The result of information technology advancement and growing contacts with customers through the Internet, the Bonito Batik Company has realized its information network is probably subject to accessibility by the outsiders who are not related or authorized to the Company’s information system which may later result in damages and losses to t he Company‘s important database used routinely run the Company’s administration.
So, Bonito Batik Company has pursued policy to reduce risk from information such as - Focus the tools used to check the information informat ion of the company. - Data backup information system as well as dat a recovery and data security secur ity systems. systems.
Credit risk The company has credit risk associated with trade receivables by the company has a policy of credit as a precaution pr ecaution and a variety of customers.
Interest Rate Risk Risks associated with interest rates due to interest rate changes. That causes damage to the Company and its subsidiaries in the current period and next period. The Company expects the impact of interest rate changes will be higher. The method to the reduce risks are: -
should the careful bonds old long investment
-
Investment in bonds guarantee by the government.
Foreign currency Risk The Company expects expects the impact of exchange of materials because the t he company did not borrow from abroad. But the company to risks from foreign currency exchange rat es. So companies have planned to decrease risk. By exploring new sources of national and neighbors to find cheaper equipment and raw mater ials used in production.
Chapter 7
Feasibility Analysis Summary Introduction Analysis Summary
Present of the batik products are more interesting in markets around the world which most people in the world like arts art s product, passion for the art of painting designs on fabric. and product be handmade. In Thailand there are many bat ik industries and Booths sales. It is one of tops batik exporting in the world especially northern of Thailand at Chiang Mai province has the unique design is different from Phuket province. There are many batik industries, and it is the famous area. This kind of business is more interested and it is large in market demand supporting in many local markets and global markets, and the trend of growth is likely increasing. So it is the main reason that let us choose to invest in this business. Bonito Batik Company limited is the name of own o wn company and Bonito Batik Design is a short name that it is easily for memorizing and name is catching the eyes. We focus in establishing the company at Chiang Mai province especially on t he มหิดล - หนองหอย road. We focus on creating a new design to batik product. It is likely the batik center, we cr eates a lot of various designs to batik products and batik industry such as clothing, decoration and gifts. The company no needs to establish big factory because the cost of investment is likely high and it is long time for profit return, so we try to make product designs and order to workshops for hiring them produce products under the brand of Bonito Batik.
Industry Profile Analysis Summary In Thailand batik sarongs are also designed as wraps for casual beach wear in the southern Thai island of Koh Samui, batik is easily found in the form of resort uniforms and decorations at many places, and is also used for t he locals' casual wear in the forms for ms of sarongs or shirts and blouses. Today Batik is a product of the interesting in the market. Especially the international market such as U.S. European countries, Australia and Japan. Batik imports from Thailand to sell in the form of finished products such as clothing, decorate and gift. Batik" is a unique art and craft of the South. That T hat has been widely widely popular for both Thais and foreigners. Because the eye e ye-catching -catching designs and vibrant colors, beautiful batik is now popular not allergic to other types t ypes of fabric. Batik is a craft cra ft business can utilize the skills that are exquisitely exquisitely beautiful beaut iful color drawing policy implementation and follow
patterns on the cloth, so as a concept to a group of shareholders that the success in business after selling cloth. And Rick both wholesalers and ret ailers on behalf of Craft Batik by ordering products from other high quality products and has been recognized as the high quality product
Marketing Feasibility Analysis Summary The Thai economy is currently characterized by a highly competitive market making batik products must be developed constantly to meet the needs of today's consumers. The products that tend to invest are clothing, gift and decorations that under the general market. May be affect to Bonito Batik because the tendency of design is different with others competitors batik products in the market, Especially Mahidol – Nhong Hoi road, Chiang Mai because there are many tourists came to this place for buying clothing, gifts and decoration that with the different of design combined with the cultural patterns in northern and painting techniques that are different from other brands able to let customers come into the store and buy many products. Moreover, other products of Bonito Batik are an attractive and interesting tourist in terms of form for m and unique product. The direct competitor in the batik product is not found at the company area that this entire area batik market share is hold on our hands, if look forward at the whole of Chiang Mai province that there are many batik companies. Overall are not serious problems for Bonito batik because the most companies produce and design the batik product at same style, no more different. And Batik products from Phuket to be benefit most from tourism but design of phuket different Bonito batik because bonito create own design, we add combined with the cultural patterns in northern and color painting techniques that are different from phuket. In addition, manufacturers are not used in the community and mostly is making by machine then it is a lot of the same design and outside markets. Besides, the most of companies do the marketing as wholesale, so the most customers in the local area can not buy the products as single s ingle unit.
The Middle age of tourists (age between 25-40 years old) that looking the batik products for use by themselves, New Year gift, special day gift, and what ever festival, giving people, decorating house and workplace. There are 470,000 middle age of man a nd 450,000 middle age of woman in Chiang Mai province and there are 5,313,352 tourists in year 2551, 4,343,090 tourists in year 2552 and year 2553 is expected 4.5 million tourists to urists come to Chiang
Mai. According to Middle age behavior around the t he area and travel in Chiang Mai we found that they have more money to pay and they spend more t ime for shopping with their family, friends, group tour and they are looking for some things new, interesting, and different design products. The most customers will be popular as souvenirs for friends, relation or get our products to be sold to a foreign country. The different point of products design, we focus to produce the product according to our own designs, this combined with the culture of the north that t here are three concept co ncept designs to our gift, clothing and decoration for tourist tour ist group of customers. customers. We try t ry to study about many companies products and create Bonito batik own design, we add combined with the cultural patterns in northern and color co lor painting techniques that are different fro m other brands that is the main point of o f our products that 100% are not same with any batik companies in Chiang Mai province
Technical Feasibility Study Analysis Summary The product of Bonito Batik are concerned about the design first because we try to make the point of different from many competitors in market and present a new design of batik into the market under the brand of Bonito Batik company. Bonito Batik focus on three most popular shape of design, there are Fabric curtain, Handbag, and shirt concept design. The entire product designs that we try to fix on the products shapes and follow the modern trend in nowadays customer favor. Bonito Batik creates these designs for use by themselves, New Year gift, special day gift, and whatever festival, they would get the high quality product and may be be the product that they make make by themselves. Besides, there is a point that different from other is the product add combined with the cultural patterns in northern and unique color painting techniques a specific format o f Bonito Batik company. We choose Siva supply Co. to produce the Bonito Batik bag. From study about production and operation of Bonito Batik business, we foresee to build this business because of we have employees who are skilled in the art and readiness to work in this Business, and combination of manufactures and customer design for customer to participate in the production under the identity of Bonito Batik Company, we add combined with the cultural patterns in northern and unique color painting techniques different from other batik companies in Chiang Mai province.
From Income Statement, calculate for
Financial ratio Liquidation Ratio
1. Current Ratio
2. Quick Ra Ratio
3. Cash Ratio
current Asset
current Liabilities
482000
180000
2.68
current as asset - inventory current li l iabilities 482000 - 10000
180000
cash
current liabilities
300000
180000
cost of goods sold
inventory
413900
10000
2.62
1.67
Asset Ratio
1. Inventory turnover
2. Day's sale in receivable 36 365 days
3. Total asset turnover
41.39
inventory turnover
365 days
41.39 times
sale
total asset
960000
482000
net income
sale
290391
300000
net income
total asset
290391
482000
net income
total equity
290391
774291
8.82
1.99
Profit
1. Profit Margin
2. ROA
3. ROE
0.97
0.602471
0.375041
Break Even Point Cost of goods sold = 413,900 / month Customer number = 320 people/ day Customer=9,600 people/ month So Break Even Point is 43.115 THB/dish Menu
Price
Break Even Point
Profit
Profit * Customer/month
Batik If we sold Batik in Break Even Point prices, we haven’t profit. So if we sold this price= 99THB. , We have a profit = 55.885 THB. /dish
NPV NPV Months Initial cost Revenue Cost Net in Flow
0
-฿
1
2
482,000.00 ฿
฿
960,000.00
413,900.00 -฿
413,900.00
฿
546,100.00
฿
546,100.00
฿
546,100.00
฿
546,100.00
-฿
960,000.00
Salvage Net cash flow
Payback period Month 0
-฿
482,000.00
1
฿
400,000.00
2
฿
500,000.00
1 0.164 1.16 1.164 4 Month Monthss Payback period
ARR The Average accounting return:AAR Month1
Month2
Revenue
฿
960,000.00 ฿
960,000.00
Expense
-฿
38,000 38, 000.00 .00 -฿
38,000 38, 000.00 .00
Earning before depreciation
฿ -฿
922,00 922,000.00 0.00 ฿ 7,709 7,7 09.00 .00 -฿
922,00 922,000.00 0.00 7,709 7,7 09.00 .00
Taxes (34%)
฿ ฿
914,29 914,291.00 1.00 ฿ 310,85 310 ,858.94 8.94 ฿
914,29 914,291.00 1.00 310,85 310 ,858.94 8.94
Net income
฿
603,43 603,432.06 2.06 ฿
603,43 603,432.06 2.06
Average income
฿
603,432.06
Average book value
฿
241,000.00
Depreciation Earning before taxes
Average account return
250%
IRR Internal Rate Of Return :IRR Month 0 1 2 IRR
Cash Flow (482,000.00) 400,000.00 500,000.00 51%
Sensitive Analysis
Worst Case Cost increase 20%
@All Bonito Batik company Statement Pro Forma of Cash Flow For the Ended Month, August 31, 2010 (TH Baht) Cash flow from operating activities
Cash receive from customer Cash paid for supplies Cash paid for employee
฿
960,000.00 960,000.00 496,680.00 210,000.00
฿
45,600.00
฿ ฿
Cash paid for utilities Net cash provided by operating activities Cash flow from investing activities Purchase of equipment
1,712,280.00
฿
-฿
482,000.00
Net cash used by investing activities Cash flow from financing activities a ctivities
482,000.00
-฿
Investment by owner Net cash provided by financing activities Net increase in cash
฿
300,000.00 300,000.00 ฿
300,000.00 1,530,280.00
฿
0.00 1,530,280.00
฿
Cash balance, August 1, 2010 Cash balance, August 31, 2010
NPV Months Initial cost Revenue Cost Net in Flow
0
1
2
-฿ 482,000.00 ฿ 960,000.00 ฿ 960,000.00 -฿ 496,680.00 -฿ 496,680.00 ฿ 463,320.00 ฿ 463,320.00
Salvage Net cash flow
Worst case
Sale decrease 20 %
฿ 463,320.00 ฿ 463,320.00
@All Bonito Batik company Statement Pro Forma of Cash Flow For the Ended Month, August 31, 2010 (TH Baht) Cash flow from operating activities
Cash receive from customer
฿
768,000.00 768,000.00
Cash paid for supplies
฿
413,900.00
Cash paid for employee
฿
210,000.00
Cash paid for utilities
฿
38,000.00
Net cash provided by operating activities
฿
1,429,900.00
Cash flow from investing activities
Purchase of equipment
482,000.00
-฿
Net cash used by investing activities
-฿
482,000.00
Net cash provided by financing activities
฿
300,000.00
Net increase in cash
฿
1,247,900.00
Cash flow from financing finan cing activities
Investment by owner
300,000.00 300,000.00
฿
0.00
Cash balance, August 1, 2010 Cash balance, August 31, 2010
฿
1,247,900.00
NPV
Months Initial cost Revenue Cost Net in Flow
0
-฿
1
2
482,000.00 ฿
768,000.00 ฿ 768,000.00
-฿
413,900.00 -฿ 413,900.00
฿
354,100.00 ฿ 354,100.00
฿
354,100.00 ฿ 354,100.00
Salvage Net cash flow
Best case Cost decrease 20%
@All Bonito Batik company Statement Pro Forma of Cash Flow For the Ended Month, August 31, 2010 (TH Baht) Cash flow from operating activities
Cash receive from customer
฿
960,000.00 960,000.00
Cash paid for supplies
฿
331,120.00
Cash paid for employee
฿
210,000.00
Cash paid for utilities
฿
30,400.00
Net cash provided by operating activities
฿
1,531,520.00
Cash flow from investing activities
Purchase of equipment
-฿ 482,000.00
Net cash used by investing activities
-฿
482,000.00
Net cash provided by financing activities
฿
300,000.00
Net increase in cash
฿
1,349,520.00
Cash flow from financing finan cing activities
Investment by owner
300,000.00 300,000.00
฿
0.00
Cash balance, August 1, 2010 Cash balance, August 31, 2010
฿
1,349,520.00
NPV
Months Initial cost Revenue Cost Net in Flow
0
-฿
1
2
482,000.00 ฿ -฿
960,000.00
฿ 960,000.00
331,120.00 -฿ 331,120.00
฿
628,880.00
฿ 628,880.00
฿
628,880.00
฿ 628,880.00
Salvage Net cash flow
Best case
Sale increase 20%
@All Bonito Batik company Statement Pro Forma of Cash Flow For the Ended Month, August 31, 2010 (TH Baht) Cash flow from operating activities
Cash receive from customer
฿
1,152,000.00
Cash paid for supplies
฿
413,900.00
Cash paid for employee
฿
210,000.00
Cash paid for utilities
฿
38,000.00
Net cash provided by operating activities
1,813,900.00
฿
Cash flow from investing activities
Purchase of equipment
-B
482,000.00
Net cash used by investing activities
-฿
482,000.00
Net cash provided by financing activities
฿
300,000.00
Net increase in cash
฿
1,631,900.00
Cash flow from financing activities
Investment by owner
฿
300,000.00
0.00
Cash balance, August 1, 2010 Cash balance, August 31, 2010
1,631,900.00
฿
NPV
0
Months Initial cost Revenue Cost Net in Flow
-฿
1
2
482,000.00 ฿ 1,152,000.00 -฿
฿ 1,152,000.00
413,900.00 -฿
413,900.00
฿
738,100.00
฿
738,100.00
฿
738,100.00
฿
738,100.00
Salvage Net cash flow
Conclusion Our company have a success in target and profit increase more last month. And have more customer , @ All Bonito Batik company is popular company in area. ARR on second month is 250 % , IRR is 51 % , Payback period is 1.164 month , ROA is 60 % per year more than ROA of target . Therefore, the the result happen make impressed in the business. business.
Risk Management Analysis Summary
The business is always risky. Depending on whether whether we will w ill find a way to prevent and solutions how to reduce the t he risk of doing business. Batik business has many risks, such as t he risk associated resource persons difficult. Risk of market competition. Risk investment Financial risk etc. Station St ation network risk factors these Companies plan to work. To affect company. Impact on the company's profits to a minimum. To track news on all fronts. For the benefit of the company. Reduce errors error s and reduce the problem to happen to the business. Risk management will enable business success. And achieve the purpose of the set easily. Reduce the problem to occur. To prevent damage, its business, and confidence to the company.
Batik business have the risk of the several aspect , financial, management, the risk r isk from external environment, risk that the business cannot control, or new entr y to competition in the market. In part financial, if cost of cotton and the business is increase expenses, an advertisement for encourage the t he sale, or freight, affect to t he profit of the business is down. Part of administration, should always give knowledge to an officer, for decrease error in operating. Every problem are happen that can affect to operating of business, thus the business is supposed to learn all, for prepare solve the problem that happens, and decrease the risk which relation relat ion operating and can happen to every kind business.
Risk factors of the several aspects such as Risk Factor s on Sales and Production, Human Human Resource Risk, Financial Risk , Risk Factors on Information. Also the company will should consider the risk that the business risk anything and will need to the figure out a policy to resolve risks that arise.
Reference http://www.travel-phuket.com http://info.matichon.co.th/rich/rich.php?srctag=07026150552&srcday=&search=no http://www.tarad.com/batik8/ www.muslimthai.com/main/1428/content.php?category=19&id http://www.ch7.com/news/news_thailand_detail.aspx?c=2&p=4&d=117291 http://classified.sanook.com/item/3922285
Appendix Member Group
Ms. Patcharakon Chaiyong
5131207018
Ms. Alisa
Ruanjae
5131207030
Ms. Atchima
Boonpan
5131207031
Ms. Potchanee
Junok
5131207072
Ms. Utaiwan
Joosiri
5131207125
