Present Aj. Chaiyawat Thongintr
By
1. Miss Photchaman Thawong
ID: 4931203064
[email protected] 2. Mr. Phoonsub Mangkalad
ID: 4931203076
[email protected] 3. Miss Piyamas Vipusattaya
ID: 4931203188
[email protected] 4. Miss Waranya Yuensanhan
ID: 4931203200
[email protected] 5. Miss Sadudee Jirawanich
ID: 4931203212
[email protected]
Preface
The project was prepared for the future investment planning of the Best Ce Ra Ceramic Company. In the project, we have analyze the project feasibility and evaluation that to become the success company in the ceramic business. It includes with the company background, industry profile analysis, marketing feasibility analysis, technical feasibility analysis, financial analysis, risk management analysis, and summary of the project’s feasibility to see all image of Best Ce Ra Ceramic Business. This project report was presented to investors or people who interested in this business and would like to invest in this business for taking on loan the money.
Content Title
Page
Preface…………………………………………………………………………………..
A
Content………………………………………………………………………………….
B
Exclusive Summary…………………………………………………………………….. C Chapter 1: Introduction
Background and Significance of the Project……………………………………
1
Project Objectives………………………………………………………………
2
Benefits of Project……………………………………………………………...
2
Activities/Time Frame……………………………………………………….....
3
Chapter 2: Industry Profile
Nature of Industry…………………………………………………………………..4 Situation of Industry………………………………………………………………12 Product/Service……………………………………………………………………19 Vision……………………………………………………………………………...20 Mission…………………………………………………………………………….20 Strategy…………………………………………………………………………....20 Corporate Level……………………………………………………....……20 Business Level……………………………………………………………..21 Functional Level………………………………………………...…………21 Chapter 3: Market Feasibility Study
Market Analysis…………………………………………………………………....23 General Environment Analysis………………………………………….....23
Content Title
Page
Competition Analysis……………………………………………………....23 Competitor analysis………………………………………………...23 Customer Analysis……………………………………………..…..32 Competitive Analysis…………………………………………...….34 STP Analysis……………………………………………………………………….35 Marketing Mix Strategy………………………………………………………..….36 Sales Forecast/Profit Estimation………………………………………………..….41 Marketing Expenses………………………………………………………………..57 Conclusion……………………………………………………………………...….61 Chapter 4: Technical Feasibility Study
Production and Operations Analysis………………………………………….….. 62 Product Characteristics ……………………………………………………62 Production Process/ Services process………………………………….…..72 Location…………………………………………………………………..104 Facility Layout……………………………………………………………106 Company equipments……………………………………………………..110 Logistics Management…………………………………………………....113 Facility Management……………………………………………………...115 Cost of Investment……………………………………………………………..…119 Pre-Operating Cost……………………………………………………….119 Investment cost…………………………………………………………………...119
Content Title
Page
Management Analysis……………………………………………………………. 126 Conclusion………………………………………………………………………....129 Chapter 5: Financial Analysis
Income Statement…………………………………………………………………130 Balance Sheet……………………………………………………………………..136 Cash Flow…………………………………………………………………………142 Payback Period……………………………………………………………………153 Chapter 6: Risk Management
Risk Management…………………………………………………………………155 Chapter7: Summary
Feasibility Analysis Summary……………………………………………………164 Referent………………………………………………………………………………….170
Exclusive Summary
Best Ce Ra Ceramic Company limited will plan to start business in January 2011. The company will be established at Lampang province especially on the famous area, Wiang la kon road. The company building is bought in three rows of commercial building with 10,500,000 baht, for avoiding cost and competitive problems that Best Ce Ra does not have the manufactory, but the company has made the order to KK Ceramics Company Limited for producing the products under the design and the brand of Best Ce Ra design. Best Ce Ra focus on the ceramic business that designs, creates, and provides the great and high-quality ceramic products. The company focuses on the gift and decoration and the teenagers that age between 13-25 years, there are 676,214 teenagers in Lampang and 33,115 teenagers in school around the company. There are three concept designs for the product that green design, love design, and animals design. Moreover, all products were added the fresh fragrant that is the main point 100% is not same with any ceramic companies that it is the point of different from the competitors. Thailand's ceramic industry had highly supported by the government and it large in market demand supporting in many local markets and global markets, Thailand registered ceramic exports of US$ 834 million in 2008, up 17.29%, so the trend of growth is likely increasing. The company expects to sale in year 1 is 14,679,100 baht, year 2 is 16,787,600 baht, year 3 is 18,452,900 baht, year 4 is 20,920,000 baht, and year 5 is 22,774,800 baht. It increases continually and constantly. For the project Best Ce Ra company would like to require a total load at 13,000,000 baht with 12% in interest rate under the date in April 2010. The load will spend to company all investment activities. The payback period is 8.5 years. Net Present Value is 22,277,780.45 baht that value of return from the investment higher than the investment at the beginning about 9,277,780.45 baht. And The Internal Rate of Return (IRR) is 34.77%.
Chapter 1 Introduction Background and Significance of the Project
In now days, the ceramic products are more important in markets around the world. Most people in the world took it to their daily lives and cannot live it out, the products that such as kitchenware (plates, bowls, spoons, etc.), potteries, decoration (dolls, vases, etc.), and sanitary wares (flush toilet, dish soap, wash basin, etc.) all of these products we often see it easily in the markets like home marks, department stores, and groceries. In Thailand there are many ceramic industries and workshops. It is one of tops ceramic exporting in the world especially northern of Thailand, at Lampang province. There are many ceramic industries, and it is the most 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. Best De Ce Ra is not the normal store that provides only ceramic products that easily looking from general markets like normal kitchenware, potteries, decoration, and sanitary wares, but Best De Ce Ra is a wonderful store and ceramics gallery. We focus on creating a new design to ceramic products. It is likely the ceramics center, we creates a lot of various designs to ceramic products such as decoration, gifts, appliances, etc. The entire product designs are various, new in the market. The reason that we selected to focus on the design of products that for needing to make the own company design styles and making the point of different into the products that let customers have some best feeling to ceramic, and let some that never favor in ceramic changing their mind and favor on Best Ce Ra Ceramic designs at the first time they have seen with the wonderful design and fragrance. Best Ce Ra Ceramic Company limited is the name of company and Best Ce Ra Design is a short name that it is easily for memorizing. We focus in establishing the company at Lampang province especially on the Wiang la kon road, after surveying we found the ceramics are most esteem and top in sale and produces because there are many ceramic factories. The reason we choose to invest in Lampang province, Lampang is one of the
provinces in Thailand that there is the main sources and materials for producing ceramic products. At this place we have found the most ceramic factories’ products are focused on producing the products for exporting and selling at the wholesale units, so we choose Lampang for establishing company that it easy for company to make the product producing order with manufactory after Best Ce Ra created product designs. The company creates the product design and provides that products to customers. The company no needs to establish any 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 Best Ce Ra Design. Project Objectives
1. To study the possibility in establishing a new ceramic company at Wiang la kon road, Lampang. 2. To study the trend of ceramic business growth. 3. The business is most interested in the local and global markets. 4. The cost of investment is not much in spending. 5. To study the trend of profit /return on investment for getting highly and rapidly profit. 6. To study the inconstant, unlimited, and various designs of ceramic products. 7. To study ceramic competitors’ stores or distribute channels at the area. 8. To study size of ceramic market demand supporting around the world. Benefits of Project
1. Able to apply the knowledge in real ceramic business under the business rapidly growing. 2. Able to apply the plan for getting high profit/return on investment. 3. The plan is most feasible and high success in real business that able to guide in the future. 4.
To know the methods for making high in sale.
5. Able to plan and manage the business to success. 6. To be a good businessman 7. High ability to apply the knowledge and skills to real business. 8. Able to be the center of ceramic product designs in Thailand.
9. Able to make strong in business brand. 10. Able to get high in experience. Activities/Time Frame Quarter 2
Project step: 1.Planning and preparing 2.Reserch and Development A. Search demand & supple B. Search trend of ceramic 3. Finance C. Investment resource 4. Building D. Find the building E. Design the building F. Edit and decorate the building 5. Equipment G. Buy equipment 6. Human resource H. Recruit designer I. Recruit worker 7. Production J. Design the product K. Make order for production L. Grand opening
Ap r
Ma y
Ju n
Quarter 3
Jul
Au g
Se p
Quarter 4 Oc t
No v
De c
Quarter 1 Ja n
Fe b
Ma r
Chapter 2 Industry Profile Nature of Industry
Definition of ceramic A ceramic is an inorganic, non-metallic solid prepared by the action of heat and subsequent cooling. Ceramic materials may have a crystalline or partly crystalline structure, or may be amorphous (e.g., a glass). glass). Because most common ceramics are crystalline, the definition of ceramic is often restricted to inorganic crystalline materials, as opposed to the non-crystalline glasses. The earliest ceramics were pottery objects made from clay, either by itself or mixed with other materials. Ceramics now include domestic, industrial and building products and art objects. In the 20th century, new ceramic materials were developed for use in advanced ceramic engineering; for example in semiconductors. The word ceramic comes from the Greek word κεραµικός (keramikos) meaning pottery, which is said to derive from the Indo-European word ker, meaning heat. Ceramic may be used as an adjective describing a material, product or process; or as a singular noun, or, more commonly, as a plural noun, ceramics. History of ceramic in Thailand
Ceramics have been fired in Thailand since prehistoric times, with old ceramic finds covering much of northern and eastern Thailand. These ceramics were very distinct, with distinguishable variations in the designs and quality of the ceramics being found throughout the sites. Moreover, finds have been made of imported ceramics to Thailand, suggesting how important ceramics were in the prehistoric culture.
However, the definitively traceable history of Thai Ceramics actually begins with the Khmer Empire of the last millennium in what is modern-day Cambodia and eastern Thailand. The first evidence of ceramic creations there date to the 9th century, but archeological evidence suggests Khmer ceramics hit their hay day around the same time as the height of the Khmer Empire in the 11th and 12th centuries. For a few centuries, the Khmer turned out ceramics of high quality in large volume, mostly using kilns located close to the famed Angkor Watt temples and also in parts of modern-day eastern Thailand. A majority of the old Khmer ceramics was glazed brown, wood-ash, dark jade green, or olive green, but whites, yellows, and grays have also been found. The Khmer made ceramics of just about everything from vases, jars, and urns to animal-shaped pots and oil lamps, some also in dual-color glazes. It is generally believed Khmer ceramics were mostly used for ritual, as art critics find their character to be heavy and serious. But as the political winds of Southeast Asia went, so too did the history of ceramics in the region. When the Khmer Empire began its downfall in the 13th century as the emerging Siamese sacked Angkor and took major territorial gains, the production of Khmer ceramics was finished. However, the Siamese (later to be known as the Thais), quickly took the ceramics torch from the Khmer and made it their own, starting limited production almost exactly when the Khmer version was finished. In this way, Thai ceramics is much like Thai architecture and many other facets of Thai culture in that much of it developed from previous Khmer designs as the two kingdoms experienced opposite fortunes. When China experienced an internal crisis in the 15th century, it opened the door for Thai ceramics to take over the Asian market. Now fired in kilns in the ancient Siamese capital, Sukhothai and known as Sukhothai ceramics, the old Thai versions found their way as far as Indonesia and the Philippines. Huge caches of Sukhothai ceramics have been found on sunken vessels in the Gulf of Thailand. But once again,
war intervened in ceramic production. As the territorial battles between the Siamese and the Burmese heated up, production of Sukhothai ceramics slowed and finally ceased by the 16th century and Chinese ceramics once again took the mantle for Asia. At present time, the old Sukhothai ceramics are mostly held in private collections, though some can be found in museums in Bangkok and Sukhothai. In modern days, Thailand is once again producing some of Asia’s best ceramics, mainly in centers in the northern part of the Kingdom. Pottery, statues, and ceramic workings of all kinds have been revived as Thai artisans have rediscovered this ancient art and turned the attention of their creative juices to its production. Technical breakthroughs in the firing of ceramics have spawned a rebirth of Thai ceramics. The types, colors, and designs of modern Thai ceramics are more varied than ever, and have become an increasingly popular art import to the West as the skilled Thai artisans have learned to fuse the new designs with the ancient art traditions of their past. History of ceramic industry in Lampang
Lampang is one of the most important ceramic producers in the north of Thailand. Reasons to support this are: 1. It is the main source of white clay in Thailand, with 93% of all white clay coming from Lampang. This white clay is highly resistant to heat thus producing quality products. 2. The rate of payment for labor force in Lampang is cheaper than those of larger cities.
3. Lampang is situated in a good location. It is the bypass to many nearby provinces and has all forms of transportation. Ceramics in Lampang was originated when a villager from the Jae-Hom district found a whetstone which was made from Kaolinite (white clay). After that, three Chinese, Mr. Chin Simyu, Mr. Ue Siayu, and Mr Kwok Sewkim from Tai-Pu city (famous for producing dinnerware in China) tried to search for sources of white clay with financial support from Mr. Tawee Polcharone. Finally, in 1947, they found the sources at Pang-Ka village, Amphur Jae-Hom, Lampang between the 26th and 27th Kilometer of Lampang Jachom Road. In 1967-1969, there was a change in economics
and
demand
structure.
The
Department of Science began to pay more attention to ceramics from Lampang. They held
several
events
such
as
ceramic
competitions, more support for small scale factories, and seminars on ceramics to motivate the owner to go abroad to gain more experience. With a strong relationship, the factory owners of Lampang formed a chamber under the leadership of Mr. Chan Limphaiboon in 1974. At that time, there were 18 ceramic factories. During 1975-1985, there was an increase in technology in the ceramics industry. This produced better quality, more colorful and cost-saving strategies. Lampang ceramics became better known for its blue and white products in international markets. During 1985 - 1994, the ceramic industry was able to provide more variety in model, texture
of
stoneware,
earthenware,
porcelain,
and
production techniques. The industry has become highly competitive. The Ceramics Group of Lampang searched for factors that could reduce cost of production and increase productivity; therefore, new types of kilns were
introduced at local use such as the shuttle kiln, the tunnel kiln, and the fiber insulator kiln. Today, the ceramic factories in Lampang range from small to large scale. There are about 30 factories for medium to large scale numbering from 100-600 in labor force per factory. There are about 120 factories for small scale with 10-80 in labor force per factory. This generates a cash flow into the province of at least 2,000 million baht per year. Some distinguishing features in producing Lampang ceramics are: •
Conservative style, i.e. : using the jigger method of production and dragon kilns, which still use wood as an energy source; they produce 5" - 7" local bowls along with electric insulators and Art Ceramics of which only 7-8 factories remain in operation today.
•
LPG kiln: to compete with products from abroad, the LPG kiln is used to produce gift sets, home decoration sets, dinnerware, ceramic fences, and handmade products.
•
High technology products: using the tunnel kiln, Lampang was able to expand production capacity to serve the market demand of Europe and America. These products are tableware, large flower pots, and vases.
Though Lampang has been producing white clay ceramics for only 50 years, it is one of the most important exports of Thailand and will continue to enhance income and occupational growth of the local people in the future. Types of ceramic products
For convenience, ceramic products are usually divided into four sectors; these are shown below with some examples: -
Structural, including bricks, pipes, floor and roof tiles
-
Refractory, such as kiln linings, gas fire radiant, steel and glass making crucibles
-
White wares, including tableware, wall tiles, pottery products, and sanitary ware
-
Technical, is also known as Engineering, Advanced, Special, and in Japan, Fine Ceramics. Such items include tiles used in the Space Shuttle program, gas burner nozzles, ballistic protection, nuclear fuel uranium oxide pellets, biomedical
implants, jet
engine turbine blades,
and missile nose
cones.
Frequently the raw materials do not include clays.
Types of Ancient Ceramics
Different types of ceramics represent the creative ideas of the makers and reflect variety of functions. Ceramics are also produced in response to the needs of customers. They will be divided into seven main types on the basis of surface coatings: 1. Monochrome Ware 1.1 Celadon or Green-Glazed Ware. This type is divided into two subtypes
due
to different sources of glazes. -
Ware coated with ash glaze. Wares of this type include Lan Na, Sukhothai, Khmer, and Vietnamese and Burmese ceramics. Most of the ware are decorated with carved, incised, graffito and impressed designs before glazing. Glaze slips vary in color and the amount applied.
-
Ware coated with copper glaze. Wares of this type of glaze are called “opaque green-glazed ware” as illustrated by Burmese ceramics.
1.2 Opaque White-Glazed Ware. Chinese, Burmese and Sukhothai ware represent this group. It can be noted that Burmese ceramics are commonly glazed with a white slip and tin, while Chinese and Lan Na ceramics are coated only with a white glaze because they were made of fine clay, whereas Sukhothai ware were surfaced with a white slip before glazing. 1.3 Brown-Glazed Ware. The most commonly found are: -
Opaque brown-glazed ware. Only Burmese ceramics represent this type.
-
Transparent brown-glazed ware. Many Burmese, Chinese, Lan Na, Vietnamese and Sukhothai ceramics represent this type. Some of them are adorned with incised and appliqué motifs.\
2. Two-color Glazed Ware. The most common types are: 2.1 White and Brown-Glazed Ware, as found on Sukhothai ware from the Si
Satchanalai kilns. The ware were first formed, and then incised with a pointed tool, and the patterns accordingly coated with white and brown glazes. 2.2 Opaque Green and White-Glazed Ware, as illustrated by Burmese
ceramics. 2.3 Transparent Green and Brown-Glazed Ware, as seen from Khmer and a
number of Lan Na ware such as those produced from the San Kamphaeng, San Sai, and Wiang Ka Long kiln sites.
3. Underglaze Black Decorated Ware. This type of decoration is found on Lan Na, Vietnamese, Chinese and Sukhothai ware. Those found on Thai and Vietnamese ceramics show imitation of Chinese ceramics; that is, once formed, the potter drew and painted the designs with a pigment derived from iron oxide, and then dipped the ceramics into the glaze. It is interesting to note that Sukhothai ware from the Sukhothai-city kilns were painted after the white thick slip had been applied on the surface of the vessels, to smooth the coarse-textured surface. 4. Inglaze Green Decorated Ware. Only Burmese ceramics represent this surface finishing. Regarding the finishing method, the ware, once glazed with opaque white slip, were painted with a glaze derived from a combination of white and green slip before firing. 5. Blue and White Ware. Chinese and Vietnamese ceramics predominantly represent this type of decoration. The wares were fired twice: first, once formed, the wares were fired biscuit; then the
secondary firing was made after the ware had been painted with pigment derived from cobalt, and glazed. 6. Overglaze Enameled Ware. This is one of the most commonly found decoration patterns on Chinese and Vietnamese ceramics. The vessels were painted in underglaze before they were repainted overglaze in red, yellow, sky blue or green. After the vessels were fired under low temperature so that the colors could be attached permanently to the surface of the vessels. However, we note that green, yellow and blue decorations on overglaze enameled ware found in Thailand are more durable than the red ones. This may be due to the fact that the green, yellow and blue have more glazes in them. 7. Unglazed Ware. This group is represented by a large number of Sukhothai, Dvaravati, Srivijaya, Haripunjaya, Bang Rachan, Bang Pun and Khmer ceramics as well as pottery locally made
for daily life. The vessels were decorated with a wide range of techniques such as incising, appliqué and slipping or engobe (a covering which consist of slip).
Forms of ceramics
Jars
Pots
Roof tiles
Jarlets, miniature jars
Covered jars
Antefix tiles
Covered boxes
Teapots
Ridge finials
Bowls
Figurines
Ridge-end finials
Dishes, plates
Rollers
Mortars
Vases
Cups
Water droppers
Bottles
Lamps
Spittoons
Pestles
Kendi
Lanterns
Architectural ornaments
Stem dishes, stem bowls,
Tobacco pipes, Water
stem plates
pipes
Best Ce Ra Ceramic Company is a new company and a distributor of ceramic products. The company focuses on various designs to products. Best Ce Ra Ceramic Company was set a vision to become The “World Class Ceramic Brand Company” for medium to high volume ceramic products and has
established a balanced management structure to achieve this aim. The balanced management structure for achieving the aim below: 1. Production Base: for quality and affordable ceramic products that the company tries to hire the best one factory for order that company can be achieved economies of scale, and generate the best value appropriate to the production cost and product quality. The Company has also well diversified production risks by setting up the production facilities in Lampang province to cover almost all ranges of product prices and quality standards. 2. Design and Product Development Base: handled by highly skilled and creative designers makers in charge of developing the product designs for leading brands and the Company‘s own house brands. This unit has a total commitment to ensure the confidentiality of customers own designs and marketing plans. 3. Distribution Base: The Company has its own distribution store. This distribution bases is strategic place in the key regions of Lampang. 4. Brand Development Base: A specialist unit charged with the development of the Company‘s own and licensed brands through Marketing Planning, Brand Management and Strategic Brand Planning with the objective to increase value and maximize the brand quality for products under Best Ce Ra Ceramic Company.
Situation of Industry The Thai economy in 2009 - 2010 1. The Thai economy in 2009 1.1 Economic Growth
The Thai economy in 2009 is forecasted to contract by -3.0 percent per year. This is attributed to the sharp contraction of the economy in the first half of the year as a result of gGlobal economic crisis that causes a marked fall inadversely affected export volume of goods and services. Although the recovery trend of the global economy would haveplay a positive impactrole onto the export of goods and services in the second half of the year, export volume of goods and services in 2009 is still forecasted to contract considerably shrink at a high rate of -14.8 percent per year. Import volume of goods and services, on the other hand, is forecasted to decline by -22.2 percent per year following, decline in import demand for export-oriented productions export and contraction in domestic demand spending subside. In particular, private investment is projected to contract by -13.7 percent per year, as investors s delay their investment plan decision following lowered the drop in foreign and domestic purchase orders. Despite the improving tendency of domestic private consumption as a resulting from higher of better private income following an increase improving in employment conditions and positive the impact from the Government’s Stimulus Package 1 that helps to supporting income and reducing household expenses, the sharp contraction in private spending particularly during the first half of the year would cause average private consumption in the year 2009 to shrink at the rate of -1.0 percent per year. The major factor that would alleviate the contraction of the Thai economy when private spending does not yet fully recover is the accelerated disbursement of government public expenditures in accordance with the target to reach the target. In particular, the timely quick and effective implementation of the “Strong Thailand 2012Thai Khem Khaeng” program lan is crucial in has to continually help drive in supporting the Thai economy during the remaining period of the year. In this connection, public Government consumption growth in 2009 is projected to accelerate to 6.4 percent per year, while public investment growth is projected to increase to 5.3 percent per year
1.2 Economic Stability
Internal economic stability is expected to improve, with headline inflation in 2009 forecasted to fall to decline to -0.8 percent per year. This is due to the falling lowered crude oil price, which is expected to deeply drop from 2008 level, along with the appreciating Thai Baht. Core inflation, which excludes energy and raw food prices, is projected to fall to be 0.4 percent per year, partly due to the continuation extension of the Government’s measures that help lowering cost of living. Unemployment rate has is expected to be an improving trend of 1.8 percent of total labor force, as the re-employment conditions is expected to improve given rises following the better expansion of the Thai economy in the second half of the year. As for external stability, current account in 2009 is projected to record a large surplus of 8.0 percent of GDP, as due mainly to expect large trade balance reaches the high surplus of 20.5 billion USD from. This large surplus is due to the greater decline fall in import value relative to export value. Import value is forecasted to contract from the high base of last year at -28.8 percent per year, while export value is projected to decline at -17.2 percent per year. 2. The Thai economy in 2010 2.1 Economic Growth
The Thai economy for 2010 is forecasted to expand at 3.3 percent per year (or within the range of 2.5 - 4.1 percent per year), with supported by continued the government public spending under the fiscal deficit framework at 3.5 percent of GDP as the major drive, along with the public Government investment expenditures under the “Strong Thailand 2012Thai Khem Khaeng” program. lan. Public investment is thus forecasted to accelerate to 8.2 percent per year (or within the range of 5.2 – 11.3 percent per year), while public consumption in 2010 is projected to expand at the rate of 4.8 percent per year (or within the range of 4.0 – 5.7 percent per year.) In addition, the recovery of private expenditures that has an improving trend from the low base in 2009 would play a support Thailand’s economic expansioning role. In this connection, private consumption is forecasted to grow at 4.2 percent per year (or within the range of 3.7 – 4.7 percent per year), as household incomes increase recuperates following the recovered economic revival, coupled with the employment conditions and work hours that would return tosume the normal level. Private investment in 2010 is projected to expand from the low base in 2009 to grow at 6.6 percent per year (or within the range of 2.7 – 9.0 percent per year), partly due toas the public
investment under the “Thai Khem KhaengStrong Thailand 2012” program that lan would lead to cause the Ccrowdinging-in effect for private investment. Meanwhile, export of goods and services in 2010 is forecasted to grow at 5.6 percent per year (or within the range of 4.8 – 6.7 percent per year), as the economies of major trading partners recover as well as improving from s, along with the low base of last year. The growth of import volume of goods and services is projected to accelerate to 12.4 percent per year (or within the range of 10.6 – 14.2 percent per year), as a result of the recovery of domestic spending and the rise in export. Export recovery. 2.2 Economic Stability
In terms of internal economic stability, headline inflation in 2010 is projected to increase rise to 2.5 percent per year (or within the range of 2.0 – 3.0 percent per year), as the global oil and agricultural prices are expected to rise following in line with the recovery of the global economy. Unemployment rate is expected to further decline to resume its normal level at 1.3 percent of total labor force (or within the range of 1.0 – 1.5 percent of total labor force.). As for external stability, current account is projected to decline from previous year fall, but yet still record a surplus of 4.0 percent of GDP (or within the range of 3.7 – 4.6 percent of GDP.). This is due to lower the fall in trade surplus to 9.7 billion USD (or within the range of 8.7 – 11.1 billion USD), as the value of import grows at the faster pace than export value. Export value is projected to grow at 10.0 percent per year (or within the range of 9.0 – 11.4 percent per year) following the revival of the global economy. Import value is forecasted to grow at 19.5 percent per year (or within the range of 17.0 – 21.9 percent per year), as domestic demand picks speeds up and import order for export-oriented manufacturing rises. Thailand's ceramics industry
Thailand's ceramics industry has made major strides on the global market recently, while showing significant progress and maturation over its 50-year existence. Thailand's ceramic industry began with production focused largely on Chinese styled products including the notorious 'blue and white' kitchenware products as well as other home decoration products. Early companies were mostly family businesses typified by low investments in technology and marketing and with little motivation to create new products.
The past ten years have seen winds of change blow through Thailand's ceramic industry with the entry of a new generation of entrepreneurs eager to capitalize on new opportunities. 'New blood' in the industry has brought innovative styles of management and has led to new developments in the country's ceramic industry. Thailand's ceramic industry is largely centered in the northern region of the country, particularly in Lampang and Chiang Mai provinces. Both provinces have large deposits of minerals used in the production of ceramic products including kaoline and feldspar. Due to its large deposits of kaolinite (white clay) Lampang has emerged as the base for numerous new ceramics factories, with over 190 factories currently in operation. Over the past 15 years, Thailand's ceramic industry has focused its development on product quality, design, marketing, distribution and overall management. Companies have been investing in high higher technology and concentrating on design, with the result being innovative products and improved quality standards matching international standards. Local entrepreneurs have become more export orientated, responding better to the sophisticated needs of different markets. Another development is the positioning of Thailand's ceramic products, which have moved towards the upper-segment of the market. Previously priced as low as US$ .50 - 4, adding value through design, innovation and effective marketing have seen prices rise to US$ 10- 14 per piece when exported onto the global market. Thailand registered ceramic exports of US$ 834 million in 2008, up 17.29%. The leading markets for Thai ceramic exports are the United States, Japan, Hong Kong, Australia and the United Kingdom. Strong rivals exist in the regional ceramic industry from competitors in China, the Philippines, Indonesia and Malaysia. Although Thailand's ceramics industry is often unable to compete on price alone, producers have been able to differentiate themselves through the quality of their products, particularly in product style and design. Initial efforts by ceramics companies to establish their own international brand names and comprehensive product lines have proved successful and are being further championed by the Department of Export Promotion as a way of improving sales and competing in the global marketplace. In addition, more measures have recently been taken by the ceramics
industry to further promote it to overseas customers including the establishment of a trading and information network designed to share resources, marketing advice and contacts among ceramics manufacturers. The Industrial Promotion Department believes that Thailand's ceramic industry has the highest potential for expansion and export growth among small to medium enterprise (SME) industries. Further efforts by Thailand's ceramic producers to improve product quality, technology and marketing efforts should continue the success of the industry over the next 50 years.
The Comparative Advantage of the Ceramic Industry in Thailand
The study of the comparative advantage of the ceramic industry in Thailand had four objectives. Firstly, to study the structure of ceramic industry in Thailand and Lampang province in term of the production, the marketing, the international trade and the production costs. Secondly, to study the policies and measurement of Thai government that supported the industry in order to analyze and solve the problems. Thirdly, to study the comparative advantage of the ceramic industry by using Domestic Resource Cost Index (DRC) and Effective Rate of Protection (ERP) in three categories of the ceramic products namely, bowl, souvenir and railing ceramic products. The primary data were obtained by surveying the ceramic factories in Lampang province in A.D. 1997. Finally, study the competition of Thai ceramic industry, that in major market and the effects of Asian Free Trade Area (AFTA) on Thai ceramic industry. The study found that bowl ceramic products of small factory had low quality and most of them were produced for the domestic consumption while those from medium and large factories had higher quality and were produced for export in the world market. Souvenir ceramic products were labor intensive production process which most factories were small and produced for domestic market. However, some small factories could produce for export. Production of railing ceramic was depended on constructing conditions. There was excess supply of this kind of product when the economy condition slowed down. Therefore this kind of product faced with high degree of competition in term of both prices and quantities.
The government had highly supported and protected the ceramic industry. For example, collect 80 percents of tax rate on imported ceramic products, support domestic investment and promoting the ceramic products which received GSP from developed countries. Those policies made the ceramic industry changes from import-substitute industry to export industry. Afterwards, government reduced the import tax rate down to 30 percents in order to make this industry performance more efficient so that it could compete with the world market. The research result in Lampang province showed that the industry had many serious problems such as irresponsibility of labors, low quality of inputs, expensive imported inputs and complicated export procedures. The solutions for above mentioned problems were labor training, supporting the production of import-substitute material inputs and improving export procedures. The research results show that all products in every size of factories had the ratio of DRC/SER less than one. It meant that the industry had comparative advantage. The result of ERP also showed that all products in every size of factories had negative value of ERP in both Ballasa and Corden concepts. It meant that even the industry do not get any protection from the government, this industry could export the ceramic products to compete with the world market. Therefore, these results also confirmed that the ceramic industry had comparative advantages. The study found that bowl ceramic products had the most comparative advantages followed by railing and souvenir ceramic products, respectively. The study of competition of Thai ceramic industry in major markets showed that Thai bowl ceramic products had higher market share in US market than rival Asian countries but lower than China and Taiwan. In EU and Japanese markets, Thai bowl ceramic products could not compete with EU products. Thai souvenir ceramic products had higher market share in US and Japanese markets more than the rival Asia countries except for china. Nevertheless, Thai ceramic products exported to EU must be improved their quality. Railing ceramic products had low value in the total market. However, if this kind of product can expand to neighbor countries, especially Asian market, Thailand will earn more revenue from those markets. The study of the effects of AFTA found that although the value of exported ceramic to Asian countries was the least as compared to the total export value, the result of tax
reduction would allow Thailand to expand its market share in Asian countries. However as compared to Indonesia and Malaysia, Thailand still had advantages in term of labor skill, input materials and technology but disadvantages in term of energy. Therefore, the desired trade pattern should be concentrate on materials and energy exchange among this three countries in order to increase competitive ability of Thailand. The policy implications obtained from this study suggested that the domestic entrepreneurs should improve their technology to produce high quality of ceramic products due to the low quality of ceramic products could not compete with cheap products from China. The small industries should combine to medium and large industries in order to increase production capacity, in order to have economies of scale and to receive special privilege from B.O.I. or try to cooperate in term of ceramic association for decreasing production and marketing costs. Moreover, government should support private sector to find out new markets for substitution the lost market share in the existing markets. Product/Service
Best Ce Ra Ceramic Company designs, creates, and provides the great and highquality ceramic products. The entire products designs are various and all products add fresh fragrance. Products:
There are two categories of products that provided by Best Ce Ra and products using for that following: -
Decorations To use for decorating around houses, buildings, workplaces, etc.
-
Gifts To use for giving to people in any celebrations, special days, or festivals such as key rings,
Design:
Best Ce Ra Ceramic Company focuses on three styles of ceramic designs following:
Green Design The Green Design style of products are focusing on the natural and environment, the style that able to let customers feel cheerful and take them into the natural with fresh feeling. Love design The style of love design is focusing on the ceremony of love. Animals design This style of products is focused on the favorite animals that propagate into many Best Ce Ra product categories, that able to make customers feel the products in different between Best Ce Ra and other companies’ products such panda towel ring, or tiger toilet paper holder. Vision
“World class ceramic brand company” Mission
The mission of Best Ce Ra Ceramic Company is to provide customers a great creative environment and high-quality in which to design, create, and produce the ceramic products. We exist to attract and maintain customers. To provide the products on time that within budget while also providing with fast, errors free ordering system. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers, and to become the leading designer and provider of Ceramic Design Company worldwide. Strategy: Corporate Level
Best Ce Ra Ceramic Company is a new company, we just run business into the market, according to many business in market that new business or new companies are not more famous and the brands that are likely weak, but Best Ce Ra Ceramic Company is not like those company because there is strong Ceramic industry and
market supporting for our company, The tend that likely increasing in today market, although there are many ceramic industries and distributors that the market demand is large and unlimited. So Best Ce Ra Ceramic Company has run the business under the growth strategy that for setting a one simple organization, it is easily in decentralization and management. The growth strategy able to get high market shares, high profit, and customers that tend to increase for this industry. The strategy that according to below: -
Focusing on specially part of market and trying to use market Penetration to increase market that for increasing circulation.
-
Maintaining primary customers and expanding to new customer groups.
-
Increasing distribution channels to other markets.
-
Development the product qualities and new product designs to customers.
Business Level
Best Ce Ra Ceramic Company is focused on the cost leadership strategy because the products that are produced at the best one manufactory in Lampang and distributed at the main store so the cost that is likely lower than other stores in this business area. Best Ce Ra Ceramic able to gain an advantage more than competitors. In this business level strategy following below: -
Developing the product designs for maintaining the quality of products includes the ability in creating more product design.
-
Controlling and developing raw materials and inventory management such as high quality of raw materials under the low cost system for economy of scale in the future.
-
Supply chain controlling, using value chain model that will support the quality of products.
Moreover, Best Ce Ra Ceramic is focused on differentiation. There are several designs in the products under high quality of resource. Best Ce Ra Ceramic is not only creative new design to appropriate with segments and new trend, but Best Ce Ra Ceramic also has best service with customer can customize their produce including delivery and beautiful package serve in many occasions.
Functional Level
Best Ce Ra Ceramic Company is focused on four Strategies at the functional level. There are marketing strategy, operation strategy, financial strategy, and human resources management strategy. Marketing Strategy - Diversity of ceramics product designs. - Focus on quality and design of product. - Design product follow customer needs. - Set standard price. Operation Strategy -
Clear vision and mission.
-
Set production order process and technology plans.
-
Clear positioning the production system.
-
Optimization of production by using Product Specialization and Process Specialization
Financial Strategy -
Clear the financial system.
-
Use trade credit.
Human Resources Management Strategy -
Hiring employee in local area for convenience and saving cost.
-
Hiring modeler and designer that have more skills for making quality ceramic product.
Chapter 3 Market Feasibility Study Market Analysis: General Environment Analysis
At the primary period of ceramic product that many companies produced the most products at point of decoration, kitchenware, and sanitary wares, 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 ceramic that many 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 ceramic is not much decreasing in the market. Competition Analysis: Competitor analysis
The direct competitor in the ceramic product is not found at the company area that this entire area ceramic market share is hold on our hands, if look forward at the whole of Lampang province that there are many ceramic companies. Overall are not serious problems for Best Ce Ra because the most companies produce and design the ceramic product at same style, no more different , and the market they are focus on is likely at outside the local area, and keep some small and few store in Lampang. 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. There are 120 ceramic companies that we found in Lampang province, that able to separate by categories below: •
32 sculpture and decoration companies
•
26 Gift and decoration companies
•
18 tableware companies
•
15 sanitary ware company
•
19 companies for construction product
•
10 tile companies
According to the information, there are less in ceramic companies that focused on producing and designing the products to teenager group of customers especially gift and decoration type of products. The most of gift and decoration that they are not likely to distribute in Lampang market, but we have found only one small store were opened in the area that they are our direct competitors because they penetrate the market as the group teenagers; there is Jaiko gift shop. JaiKo gift shop store
Jaiko gift shop is a new gift shop store in Lampang province. The store was established at in front of Boonyawat school that near our company about 2 kilometers. They have use pink ribbon for their store symbol. The styles of their products are chic, cute, and cool styles that provide for intending of teenagers. The most of their products were ordered from Chiang mai province. In Jaiko store we did not found any ceramic product, but however they are our
company
direct
competitors.
Sale
promotions that they like to use are price discount and premium at some periods for attracting
customers.
They
set
their
products price at low price that for many teenagers buying power.
Jaiko gift shop store building
According to the number of Jaiko gife shop store customers that about 80 % of customers are students of Boonyawat School that the number of student is 4,936 people. They sell the products by retail only, and the most of product price set at 199 baht, 99 baht, and 69 baht. The most products of Jaiko gift shop store are school bags, fashion bag, stationery, and some gift that there is not more unit of each product. Similarities between Best Ce Ra and Jaiko gift shop;
-
Penetrate the teenager group of customers
-
Providing some similar service to customers
-
Focus on gift products
-
The products that are intend and new in Lampang province
-
Sell by retail between both that Best Ce Ra sell in retail and wholesale
-
Gain in business area
Jaiko did better points;
-
There are several products for customers selecting
-
Their cost is lower than us because they buy the exist product in the market and resell again
-
They set the price at low price such their product cost is 65 baht that they set the price and sell at 69 baht, they only gain 4 baht in profit, so there are many customers
-
Their investment cost is lower than our company
-
The most of products are customers daily use implements
Advantages over Jaiko;
-
Different in products.
-
Quality of the product is likely high
-
Create the customer mind with our own packages and let the customer have brand loyalty
-
Our store is larger than Jaiko
-
The products are more attractive teenagers
-
We focus on whole Lampang teenagers that market is larger than Jaiko
-
We have strong management system and advertising channels
-
Our company and shop condition is better than Jaiko
-
The product arrangement system is better than Jaiko
Jaiko ift sho store store inside inside condition condition
The ceramic companies that we have to focus on and try to make the plan for protect our company are: 1. K.K. Ceramics Company Limited Logo
Address 254 Phaholyothin Rd. Tambol Chompoo, Ampher Muang
Lampang City 52100 Thailand Product Table were
Vase, Flower pot Oil warmer Candle Holder Gift item Money box
Bathroom set General information K.K. Ceramics Co.,Ltd was name kittiroj Ceramics in the
past. The factory has been established since January 5, 1982. It can be located in the area of about 12,600 square meters, with an Investment of Baht. 800,000.00 Which has been registered as ordinary business in the name of Mr.Chatchai Kittirojana. Lucklly, the support of his father Mr.Youngruaw Seaten help the factory. At first the business has only 25 employees and produces decorative items which are useful such as; Vase, Flower Pot Piggy Bank, Ashtray, Teapot, Mug and different kinds of souvenirs. Mostly as customer’s order from customers they mostly knew for the past 10 years. And regular customers from our first factory since 1973. From then on, they became popular from our old customers and started exporting in some other countries. And they produce about 25,000 pcs General information per month. In the year 1986 the factory has been expanded and Increased investment of 800,000 Baht. To meet customers demand this is increasing rapidly. They have added 90 employees Production became 50,000 pcs per month. Customers are from other countries and local market.
2. Indra Ceramic Company Limited Logo
Address
382 Lampang-Denchai Rd. Km.1, Prabaht, Muang,
Lampang, Thailand 52000 Product Table ware General information Indra
ceramic is specializing in hand-painted and
continually developing quality with trendy designs. The range of fine stoneware and tableware are hand-painted products. There are more beautiful and durable work made completely from non-toxic materials that are both microwave and dishwasher safe.
3. Saengchai Ceramics Company Limited Logo Address 155 Moo 1, Pongseanthong, Mueng, Lampang, 52100 Product Table were
Flowerpot Mug
General information Saengchai Ceramics Co., Ltd. was established in1991 with
a capital of 2,000,000 Baht. As a leading manufacturer of ceramic ware, they pay their intention to do their best in every piece of work so their product can be guaranteed for its quality. For years they gain their reliability and confidence from customer. Satisfaction of customer is their aim and they hope that their elaborated products will meet customer desire.
4. Dhanabadee Art Ceramic Company Limited Logo
Address 543, Moo.1, T.Gloypae, A.Muang, Lampang 52000 Product Decoration
Table ware
General information Dhanabadee Art Ceramic Company Limited was founded
in 1990 by Mr. Panasin Dhanabadesakul, a second generation member of MR.E (Chin Simyu)'s family. Dhanabadee are the first over glaze decal manufacturer in the northern part of Thailand. They are now famous for General information high quality and superior design and their products are
exported to 72 countries around the world. Moreover home decoration products for exported. They have finest design and superb material combine with the skill of artisans to make the precious gift and souvenir know as “White Elephant” for support the activities of the Thai Elephant
Conservation
Center,
Lampang
Province,
Blindness school and scholarships for under privileged students. Thier company ethos is " Sincere - Develop Social Compensate "
5. B.P.C Ceramics Company Limited Logo
Address 219 M.1 Baan Namlorm, Kokha, Lampang, Thailand
52130 Product Table Top
Hand-made Vase Candle Plate Holder Hand-made Tile General information The employees are very experienced craft people and
produce the highest quality handmade ceramics. Their products still keep on the tradition of ceramics that has been presented for centuries in this area. The use of natural elements earth, wood and clay to create the ceramics bridges the gap between nature and modern lifestyle. BPC Ceramic Co, Ltd is located on the outskrits of Khoka Village in Lampang, Thailand aprroximately two hours drive from Chiangmai.
6. Kasalong Ceramics Company Limited Logo
Address 142 M.4 Wangprown, Kokha, Lampang 52130 Product Stone ware
Table ware General information Kasalong Ceramics was established as a family business in
1970 by the team of husband and wife using traditional pottery knowledge; they oversee all functions of Kasalong (then; Chou Lampang Co., Ltd.) In 1980 sons and daughters of the founder entered the management of the company with the modern manufacture knowledge, with the third generation generation entering the company's managerial from
2004,
Kasalong
continuously
offering
new
innovations in ceramics production to the world market
Similarities between Best Ce Ra and Others ceramic companies;
-
Produce on the same type of products
-
Providing the similar service to customers
Others ceramic companies did better points;
-
They focus the market in the abroad markets
-
They have own manufactories
-
Most of products are made to order by phone and Internet
Advantages over others ceramic companies;
-
Different in product designs
-
Focus on the teenager group of customers
-
Quality of the product is likely high
-
There is fragrance add into the products
-
The investment cost in first time is lower than others
-
Create the customer mind with our own packages and let the customer have brand loyalty.
Customer Analysis:
The Best Ce Ra targeting teenagers around the company area, Lampang province that we spent one month gathering information about this target group. From talking to the customers informally, as well as searching the population base especially teenager and producing a customer questionnaire. The customer size base
The number of teenagers size of Lampang province in 2009, the age between 13 – 25 years old. Graduate levels
Total
Male
Female
Numbers Total
676,214
335,507
340,707
54,775
17,012
37,763
2. Under primary education
237,073
113,478
123,595
3. Primary education
106,826
56,579
50,247
4. Secondary School
123,497
69,885
53,612
76,813
42,232
34,582
5.1 common high school
55,427
30,225
25,202
5.2 vocational education
21,386
12,007
9,083
77,229
36,322
40,908
1. No education
5. High school
6. University
The teenager (age between 13-25 years old) in many schools around the area at Mueang, Lampang we found that there are around ten schools and the number of customer is around 33,115. Name of school
Level
No. students
Lampang Kanlayanee School
High school
3,486
Boonyawat School
High school
4,936
Prachawit School
High school
384
Assumption College Lampang
High school
1,466
Arunothai Lampang School
High school
980
Mattayom Wittaya School
High school
417
Lampang Rajabhat University
Bachelor's degree
10,583
Lampang Technical College
High & Vocational certificate
4,408
Lampang vacational education
High & Vocational certificate
6,108
Lampang inter-tech college
High & Vocational certificate
347
Total
33,115
Customer needs and wants
According to the tended of today ceramic market that it is most famous for all customers around the world and the demand support is high in the market, but the most products that produce and deign for the large group of customers and focused on the power of buying at the most of adults that no focusing on teenagers and there is less in the design for teenager group of customers. At the chance that Best Ce Ra focuses on the need of teenager market. For teenagers they favor the ceramic product too, but less design in supporting, they need the ceramic product designs that different from the market and run forward with trended of modern. The design that they interested in is beautiful looking and the style that likely famous in teenage concept.
Customer buying behavior
Management discovered that many customers especially in school teenagers that able to separate for two classes, one is high class such Assumption College Lampang, Phra Cha Wit Lampang, and Bunyawat School Lampang, the most of them tended to have a high budget in shopping. The other on is middle class that tended to have a low budget, and were very price sensitive. But, both of them also were willing to spend considerable amounts on gifts and decorations especially supported with teenage designs. 35% of them often buy the product after finish the school and weekend. Furthermore, 65% of them often buy the products at the special occasions, such as birthday, valentine day, graduation ceremonies, New Year and etc that they tended to buy the products for gift and give it to their friends. The motivation of this group is product designs. The product designs able to let this customer group spend more money in buying products. 89% of the people that have influence to this group to buying ceramic products are their friends because when they buy the product, they often buy with friends also that their friends are more at the teenage that it able lead this group of customers buy more in products. As a result of the research, the management adapted its marketing strategy and began to concentrate mainly on designing gifts and decorations for these particular days with the expectation that increased profits around these times would balance the longer periods where there was less demand. Competitive Analysis:
There is no any competitor in the area of Wiang la kon road. All ceramic companies in Lampang that there are many product that focus on the same design, it mains the most of their products are not different, and the price that sets at likely the same price, not more different. Besides, the main of their targets focus on exporting and outside markets. So, the point of Best Ce Ra 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 designs of the products are newest, modern, and the products that produced from the own company. Best Ce Ra has the strong point in competitive ability than stores around this area. However, Best Ce Ra store and gallery is a new store in this area that should be focus more in product, price, place, and promotion. In additional Best Ce Ra should be focus on 4Cs together with 4Ps.
STP Analysis: Market segmentation
The ceramic products in the market have many types that there are Souvenir, gift and decoration, tableware, sanitary ware, construction product, and tile. Best Ce Ra focus on the 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
Best Ce Ra Ceramic focus on the people who is favor on the design of ceramic products, liked to buy the ceramic products for giving people in some special days, ceremonies, and festivals. Beside they buy the ceramic products for decorating houses, workplaces, or cars. Our customers we focus on Lampang people. The products that are made by ceramic 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: Teenagers: The teenagers who has the age between 13-25 years old that looking the
ceramic products for giving people and decorating house and car, and who live in Lampang. There are 676,214 teenagers in Lampang province and there are 33,115 teenagers in school around our company. According to teenagers behavior around the area we found that they
spend more time for shopping after school with their friends, and they are looking for some things new, lovely, and beautiful products. The most of them tend to buy the product at the middle class to high class. Positioning
In now days, there are many ceramic products in the market and the products that likely at the same because the products are easy imitation, so the most of buyers are not specific in focusing to buy ceramic product under the brand of products or producing from where, but their focus on product designs. Best Ce Ra try to focus positioning of the products at the different point of products design that according to several product designs for attracting them interested in Best Ce Ra. Beside, Best Ce Ra designs and creates the new 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 that there are three concept designs to our gift and decoration for teenager group of customers. We try to study about many companies products and create Best Ce Ra own design, we add the fragrant into the product that is the main point of our products that 100% are not same with any ceramic companies in Lampang province. At the product prices that we have set at the fairly price, it is not more high or not more low because we concern about customer value perception. 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 customers.
Marketing Mix Strategy Product
Best Ce Ra is not the normal store that provides only ceramic products that easily looking from general markets like normal kitchenware, potteries, decoration, and sanitary wares, but Best Ce Ra is a wonderful store and ceramics gallery. We focus on new design to ceramic products. It is likely the ceramics center that provides a lot of various designs to ceramic products such as decoration and gifts. The entire products designs are various and different from others. Best Ce Ra Company’s logo
Price
Best Ce Ra Ceramic Company’s pricing is designed to be competitive to the other ceramic companies. The pricing is based on the basis of the company target customers. Best Ce Ra Ceramic Company’s pricing strategy use of vertical 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 buying, and our company product cost. We use Cost-plus pricing and Psychological pricing to set our tour packages price. Cost-plus pricing - set the price at the production cost plus a certain profit margin. Psychological pricing - base the price on factors such as signals of service quality, popular price points, and what the consumer perceives to be fair.
Price Styles
Products
Code (Baht per piece)
Green design
Flowerpot
GDF00001
155
GDF00002
155
GDF00003
125
GDF00004
125 Price
Styles
Products
Code (Baht per piece)
Green design
Flowerpot
Wall / alarm clock
Picture frame
Deck lamp
Vase
GDF00005
185
GDF00006
225
GDF00007
185
GDW00001
265
GDW00002
255
GDW00003
315
GDW00004
265
GDW00005
255
GDP00001
195
GDP00002
175
GDP00003
175
GDP00004
185
GDD00001
395
GDD00002
325
GDD00003
325
GDD00004
355
GDV00001
185
GDV00002
185
GDV00003
215
GDV00004
185
GDV00005
215
GDG00001
125
GDG00002
85
GDG00003
55
Plate show
GDS00001
95
Key ring
GDK00001
15
GDK00002
15
GDK00003
15
Glass
Price Styles
Products
Code (Baht per piece)
Love design
Flowerpot Fl owerpot
Picture frame
Desk lamp
Vase
Glass
LDF00001
225
LDF00002
145
LDF00003
125
LDP00001
125
LDP00002
185
LDP00003
215
LDD00001
295
LDD00002
325
LDD00003
225
LDV00001
225
LDV00002
185
LDV00003
95
LDG00001
105
LDG00002
125
LDG00003
105 Price
Styles
Products
Code (Baht per piece)
Animal design
Vase
ADV00001
295
Flowerpot
ADF00001
295
ADF00002
295
ADF00003
295
ADF00001
95
ADF00002
95
ADF00003
95
Glass
Place
Best Ce Ra Ceramic Company focuses to establishing the company at Lampang province especially on the Wiang la kon road, one of the famous areas. The place is the center of Lampamg shopping area that there are many schools around the company, and it is the location of our customer group teenagers that cover our entire market distribution center. We have set the company as the ceramic 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 clothing stores, shoes store, and restaurants so there is more different in type of business that it able to lead our company to be the distinctive point and able to let our target customers are more interested in our company. 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.
Promotion through the Product life cycle
As products move through the four stages of the product lifecycle different promotional strategies should be employed at these stages to ensure the healthy success and life of the product. Stages and promotion strategies employed
Introduction
When a product is new our objective will be to inform the target customers of its entry. 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 by the target market Best Ce Ra at this stage of the lifecycle we work on the strategy of further increasing brand awareness to encourage loyalty. Maturity
At this stage with increased competition we take persuasive tactics to encourage the customers to purchase our product over our 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 of reminding people of the product to slow the inevitable Sales Promotion
Best De Cera Ceramic Company has promoted its products through different sales promotional strategies such as discount, premium, coupon and gift voucher. For single unit sale:
Buy more than 500 baths, 3 % discount Buy more that 1,000 baths, 3% discount, 1 coupon Collect 5 coupons + 50 baths, get one product for free Collect 50 coupons, 10% discount For whole sale:
Buy more that 100 units, 1 coupon Buy more that 1,000 units, 2 coupons Collect 10 coupons, 10% discount Collect 20 coupons, 15% discount Collect 30 coupons, 20% discount
Sales Forecast/Profit Estimation
Best Ce Ra Ceramic Company set to make the sales forecast/profit estimation at 5 years. -
The sell price that compare with the market price
-
The number of product from 8% – 9% of the teenagers who are the students in Mueang, Lampang.
-
High season in December-April that calculate with 10% - 15 % of students’ size.
-
Low season in May-August that calculate 2% - 5% of students’ size.
Marketing Expenses: Advertising
Best De Cera Ceramic Company advertises our product through many different ways and media such as magazine, cutout and leaflet. We also uses direct – response advertising. This is type of advertising that encourages the consumer to respond either by providing feedback to the advertiser or placing. We have advertised the company products to our customer by using the local radio such FM 99 Mhz and FM 104.5 MHz. we choose to make an advertise on Saturday and Sunday.
Advertising on local radio channel
The cost of advertising at FM 99 Mhz and FM 104.5 MHz on Saturday and Sunday Not more that 3 hours = 3,000 bath per month Total in both channels = 6,000 bath per month Advertising in 12 months = 12 x 6,000 = 72,000 bath 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 bath 1,000 sheets of paper per a time = 1,000 x 0.50 = 500 bath Hiring worker to distribute handbill a time per one person = 200 bath 2 workers = 200 x 2 = 400 bath 4 time a year = (4 x 500 = 2,000) + (4 x 400 = 1,600 bath) = 3,600 bath Advertising on local weekly magazine
1 time per month = 150 bath 12 months = 150 x 12 = 1,800 bath Total advertising cost per year = 72,000 + 3,600 + 1,800 = 77,400 bath Conclusion
According to the economy depression, many products of ceramics are decreasing in sell, but are not likely to more. The products that tend to invest are gift and decorations that under the general market. Although that it is not more affect to Best Ce Ra design because the tendency of design is different with others competitors ceramic products in the market, especially Wiang la kon road, Lampang because there are many buyers came to this place for buying gifts and decoration that with the different of design able to let customers go into the store and buy many products. Moreover, other types of Best Ce Ra products also strike many consumer eyes with the design of products too.
Chapter 4 Technical Feasibility Study Production and Operations Analysis Product Characteristics
The products of Best Ce Ra Ceramic 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 Best Ce Ra Ceramic Company limited. Best Ce Ra focus on three styles of design concept, there are green design, love design, and animal concept design. The entire product designs that we try to fix on the products shapes and follow the modern trend in nowadays customer favors. Best Ce Ra creates these designs for two main of products are decorations and gifts. Besides, there is a point that different from others it is fragrance, all of the products that we have inserts fragrance that like fresh nature into the products. Three concept designs: Green design
The design that able to let customers feel fresh when they are looking at the first time, it able brings the feeling as the fresh nature and environment comes around. Besides the natural fragrance can let customer relax. The design is focusing on the things in the nature like tree, flower, etc.
Styles
Gift and Decoration
Code
Green design
Flowerpot
GDF00001
Styles
Gift and
Code
Pictures
Price (Baht per piece)
155
Pictures
Price (Baht per
Decoration
Green design
Flowerpot
piece)
GDF00002
155
GDF00003
125
GDF00004
125
GDF00005
185
GDF00006
225
GDF00007
185
Styles
Green design
Gift and Decoration
Wall / alarm clock
Code
Pictures
Price (Baht per piece)
GDW00001
265
GDW00002
255
GDW00003
315
GDW00004
265
GDW00005
255
Green design
Styles
Green design
Green design
Picture frame
Gift and Decoration
Picture frame
Deck lamp
GDP00001
Code
195
Pictures
Price (Baht per piece)
GDP00002
175
GDP00003
175
GDP00004
185
GDD00001
395
Styles
Gift and Decoration
GDD00002
325
GDD00003
325
Code
Pictures
Price (Baht per piece)
Green design
Deck lamp
GDD00004
355
Green design
Vase
GDV00001
185
GDV00002
185
Styles
Green design
Gift and Decoration
Glass
GDV00003
215
GDV00004
185
GDV00005
215
Code
Pictures
Price (Baht per piece)
GDG00001
125
GDG00002
85
GDG00003
55
Green design
Plate show
GDS00001
95
Green design
Key ring
GDK00001
15
GDK00002
15
Styles
Green design
Gift and Decoration
Key ring
Code
GDK00003
Pictures
Price (Baht per piece)
15
Love design
The design that concern about the feeling of customers especially teenagers, this design is one of the design that more in sale. At the special point of the product, we design it for the lover and the people who failing in love.
Styles
Love design
Styles
Love design
Gift and Decoration
Flowerpot
Gift and Decoration
Picture frame
Code
Pictures
Price (Baht per piece)
LDF00001
225
LDF00002
145
LDF00003
125
Code
LDP00001
Pictures
Price (Baht per piece)
125
Love design
Styles
Desk lamp
Gift and Decoration
LDP00002
185
LDP00003
215
LDD00001
295
LDD00002
325
LDD00003
225
Code
Pictures
Price (Baht per piece)
Love design
Love design
Vase
Glass
LDV00001
225
LDV00002
185
LDV00003
95
LDG00001
105
LDG00002
125
LDG00003
105
Animal concept design
This design is the main product design of Best Ce Ra Company. It focuses on the favorite animals of customers follow the modern, lovely, and different from the market.
Styles
Animal design
Animal design
Gift and Decoration
Code
Pictures
Price (Baht per piece)
Vase
ADV00001
295
Flowerpot
ADF00001
295
ADF00002
295
ADF00003
295
Animal design
Styles
Animal design
Glass
Gift and Decoration
Glass
ADF00001
Code
95
Pictures
Price (Baht per piece)
ADF00002
95
ADF00003
95
Production Process/ Services process
Best Ce Ra Ceramic Company does not have own manufactory for producing the products because it is high investment that we have focus to make the order to the manufactory for hiring them produce the products following the designs of Best Ce Ra design and stamp under the brand of Best Ce Ra Ceramic company. Best Ce Ra focus on the product production process by customer orders and design the product for customers if any.
Factory Company that we order for the product
We choose K.K. Ceramics Company to produce for our product K.K. Ceramics Company Limited
K.K. Ceramics co., Ltd. was name n ame kittiroj Ceramics in the past.
The factory has been
established since January 5, 1982. It can be located in the area of about 12,600 square meters, with an Investment of Baht. 800,000.00 Which has been registered
as
ordinary
business
in
the
name
of Mr.Chatchai Kittirojana. Luckily, the support of his father Mr.Youngruaw Seaten helps the factory. At first the business has only 25 employees and produces decorative items which are useful such as; Vase, Flower Pot Piggy Bank, Ashtray, Teapot, Mug and different kinds of souvenlrs. Mostly as customer’s order from customers we mostly knew for the past 10 years and regular customers from our first factory since 1973. From then on, we became popular from our old customers and started exporting in some other countries. And we produce about 25,000 pieces per month. In the year 1986 the factory has been expanded and Increased investment of 800,000 Baht .To meet customers demand which is increasing rapidly. They have added 90
employees Production became 50,000 pieces per month. Customers are from other countries and local market. The year 1989 there was again an expansion of another building with an investment of 2 million and production had increased 65,000 pieces per month. In the early year of 1989 K.K company has been selected as a member of Department, of Export and Promotion Ministry of Commerce Royal Thai Government which help them a lot. To gain more customers and export directly until 1991 the factory became a company and name: K.K. Ceramics Co., Ltd. Ltd. had increased the investment for the third time to 7 million and employees to 120 persons. The original machine can produce to 100,000 pieces per months. Presently employees are approximately 125 skillful persons. Export increase to 80% and local market about 20% Production capacity reach 120,000 pieces per month. Thereafter K.K Company expanded our export to U.S.A., German, Switzerland, England, Holland, Sweden, Belgium, Australia, Hungary
and
Italy
in
Asia,
Japan,
Malaysia
and
Singapore.
Until presently we received an approval of Exclusive Exporters under Thailand’s Brand in the year 1999 which has the right to export product with highest standard quality.
Quality and Trophy
KK ceramics makes a wide selection of handcrafted decorative items and giftware, including clocks, statues, pots and vases, personalized corporate gifts and other custom products. These top grade items are hand-made from the best materials available in the market (including porcelain, bone china, stoneware, dolomite, and terracotta). Our strict quality control has given KK Ceramics a reputation abroad as one of the best ceramics supplier in Thailand. In our Web site, we try to give you a quick overview of our product range. General Information of K.K. Ceramics Company Company Address:
254 Phaholyothin Rd. Tambol Chompoo Ampher Muang Lampang City 52100 Thailand TEL. (66 54) 218313, 221580 FAX. (66 54) 225589 Company Map:
The product order process:
The productions process from the manufactory that hiring by Best Ce Ra Company for producing the order. There are five steps in the production process for the manufactory: 1. Raw material preparation 2. Body preparation 3. Shaping 4. Glazing and decoration 5. Drying and firing
The production process of general ceramic company below:
1. Raw materials: For example sand, feldspars, ball clay (China clay), kaolin and water. 2. Ball mill: To mix and mill all raw Materials until becomes small particle size. 3. Agitator: To agitate small particle size and water before sieving and magneting -
Slip casting: Besides slip casting stations. The companies have solid casting stations which are productive and good quality.
4. Filter press: The clay body and water will be filtered and separated by pressing becomes “filter cakes” 5. Pug mil: The companies have de-airing pug mills which are able to separate air and extrude clay body for a formation. -
Rampress: A rampress is a quite productive to produce free form and detail ceramics with high quality.
-
Roller head: Roller heads are useful for high quality. It is controllable and easy used.
6. Bisque firing: Bisque firing temperature range 800-850 centigrade and use natural gas or fuel. 7. Underglaze: Underglaze colors are numerous. 8. Glazing: Glaze is qualitative and controllable. Most are transparent glazes. 9. Glaze firing: Glaze firing temperature is 1180C. That’s why the products are qualified to be used in dishwasher and microwave.
10. Quality control: The Company needs to have QC every production line. For this QC must carefully check and separate only very good products to ship to customer. 11. Packaging: To wrapped and boxed the product to sales. 12. Shipping: To ship products to customers always on time and with good packing. The Best Ce Ra package order process:
1. Create and design packages 2. Make the order to package manufactory 3. Check and receive packages 4. Transfer Best Ce Ra Design packages to the product production manufactory
Rate of producing ceramic from K.K Ceramics Company
Rate of producing ceramic product
Produc t
Less than 250 pieces (Baht per piece)
251-500 pieces (Baht per piece)
501-750 pieces (Baht per piece)
751-1000 pieces (Baht per piece)
More than 1000 pieces (Baht per piece)
Green design
100
90
80
70
50
Love design
95
85
75
65
45
Animal design
115
105
95
85
65
Rate of producing ceramic product increase 5%
Product
Less than 250 pieces (Baht per piece)
251-500 pieces (Baht per piece)
501-750 pieces (Baht per piece)
751-1000 pieces (Baht per piece)
More than 1000 pieces (Baht per piece)
Green design
105
94.5
84
73.5
52.5
Love design
100
89
79
68
47
120.75
110
99.75
89
68
Animal design
Rate of producing ceramic product increase 10%
Product
Less than 250 pieces (Baht per piece)
251-500 pieces (Baht per piece)
501-750 pieces (Baht per piece)
751-1000 pieces (Baht per piece)
More than 1000 pieces (Baht per piece)
Green design
110
99
88
77
55
Love design
105
94
83
72
50
126.5
115.5
104.5
94
72
Animal design
Our Packaging
We choose Asia Paper Bag Company to produce the bag and boxed for our company. Asia Paper Bag Company Limited
Asia Paper Bag Company is one of the leading manufacturers and exporters of paper bags and boxes in South East Asia. Established in 1968, Asia Paper Bag Company produces over 5 million bags per month. In addition to supplying all over Thailand, Asia Paper Bag Company exports more than 30 countries around the world.
Asia Paper Bag Company care about the Environment therefore they use recycled materials for high quality products. With their modern offset printing technology they are capable of printing up to 5 colors / 2 sides.
Folding is by to machine or hand allowing them to produce bags of any size or style. Handle styles include paper twisted, cotton and nylon rope. They are the selected list of Department of Export Promotion, Ministry of commerce. So we will choose Asia Paper Bag Company to produces quality bags and boxes of all kinds at competitive prices. General Information of Asia Paper Bag Company Company Address:
499-499/1 Samwa Rd., Bangchan, Ket Klong Samwa Bangkok, Thailand 10510 Tel: (662) 906-2150-5 , Fax: (662) 906-2157-8 Mobile: (66) 81-4676624, (66) 81-4676625
Company map:
Best Ce Ra Bag
Code No.
U-SEB02
Character
"Crocodile skin" design
Material
Uncoated texture paper with PP rope handle
Size available
size no.
I01
I02
I03
size(cm.)
15x8x17
20x9x18
26x10x23 33x12x27 44x15x38
I04
I05
Color available Black, Light Brown, Dark Blue, Burgundy, Orange, Light Green, Red, Cream
We choose crocodile skin-design bag of Asia Paper Bag Company. The bag size that we choose is 44x15x38 cm. We choose light brown color, 4 colors printing, and uncoated texture with PP rope handle and screen our logo on every bag to show unique of our company to our customers. The prices of bag follow the table below: Number of bag
Baht per piece
Less than 500 pieces
20 Baht
501-1,000 pieces
17 Baht
1,001-3,000 pieces
15 Baht
3,001-5,000 pieces
12 Baht
More than 5,000 pieces
10 Baht
Best Ce Ra box
Box
Code No.
Size
PDGN 110
15x10x15 cm
PDGR 120
25x25x20 cm
PDGR 130
60x45x50 cm
We choose 3 size of box that is 15x10x15 cm, 25x25x20 cm and 40x35x40 cm. All of boxes are white duplex board 350 grams, 2 colors printing, glossy lamination and screen our logo on every box to show unique of our company to our customers. The prices of box follow the table below: Number of box
Less than 500 pieces
15x10x15cm
25x25x20 cm
60x45x50 cm
(Baht/pc.)
(Baht/pc.)
(Baht/pc.)
10 Baht
20 Baht
40 Baht
501-1,000 pieces
9 Baht
19 Baht
39 Baht
1,001-3,000 pieces
7 Baht
16 Baht
37 Baht
3,001-5,000 pieces
6 Baht
14 Baht
34 Baht
More than 5,000 pieces
5 Baht
12 Baht
30 Baht
Year 1 No. of Bag Baht per piece
Jan 17,400.00 10.00
-
Feb -
Mar Apr 16,200.00 10.00
-
May -
Jun Jul 20,400.00 10.00
Cost of Bag
174,000.00
-
-
162,000.00
-
-
204,000.00
No. of Small box Baht per piece
8,700.00 5.00
-
-
8,100.00 5.00
-
-
Cost of box
43,500.00
-
-
40,500.00
-
No. of Middle box Baht per piece
5,220.00 12.00
-
-
4,860.00 14.00
Cost of box
62,640.00
-
-
No. of Large box Baht per piece
3,480 34.00
-
Cost of large box
118,320.00
Total of month
398,460.00
\
Aug -
Sep Oct 23,600.00 10.00
-
-
236,000.00
10,200.00 5.00
-
-
11,800.00 5.00
-
51,000.00
-
-
59,000.00
-
-
6,120.00 12.00
-
-
7,080.00 12.00
68,040.00
-
-
73,440.00
-
-
84,960.00
-
-
289,080.00
-
3,240 34.00
-
-
4,080 34.00
-
-
4,720 34.00
-
-
15,520
-
-
110,160.00
-
-
138,720.00
-
-
160,480.00
-
-
527,680.00
-
-
380,700.00
-
-
467,160.00
-
-
540,440.00
-
-
1,786,760.00
-
-
Nov -
Dec Total 77,600.00 776,000.00 38,800.00 194,000.00 23,280.00
Year 2 No. of Bag Baht per piece Cost of Bag
Jan 28,400 10.00 284,000.00
-
Feb -
Mar
Apr 21,900 10.00 219,000.00
May -
No. of Small box Baht per piece
14,200 5.00
-
-
10,950 5.00
-
-
Cost of box
71,000.00
-
-
54,750.00
-
No. of Middle box Baht per piece
8,520 12.00
-
-
6,570 12.00
Cost of box
102,240.00
-
-
No. of Large box Baht per piece
5,680 30.00
-
Cost of Large box
170,400.00
Total of month
627,640.00
Jun
Jul
Aug Sep Oct 22,000 10.00 220,000.00
Nov Dec Total 88,700 887,000.00
8,200 5.00
-
-
11,000 5.00
-
-
41,000.00
-
-
55,000.00
-
-
4,920 14.00
-
-
6,600 12.00
78,840.00
-
-
68,880.00
-
-
79,200.00
-
4,380 34.00
-
-
3,280 34.00
-
-
4,400 34.00
-
-
148,920.00
-
-
111,520.00 11 1,520.00
-
-
149,600.00
-
-
580,440.00
-
-
501,510.00
-
-
385,400.00
-
-
503,800.00
-
-
2,018,350.00
16,400 10.00 164,000.00
-
-
44,350 221,750.00 26,610 329,160.00 17,740
Year 3 No. of Bag Baht per piece
Jan 31,200.00 10.00
-
Feb -
Mar Apr 22,900.00 10.00
-
May -
Jun Jul 19,000.00 10.00
Aug -
Sep Oct 24,500.00 10.00
Cost of Bag
312,000.00
-
-
229,000.00
-
-
190,000.00
-
-
245,000.00
No. of Small box Baht per piece
15,600.00 5.00
-
-
11,450.00 5.00
-
-
9,500.00 5.00
-
-
12,250.00 5.00
Cost of box
78,000.00
-
-
57,250.00
-
-
47,500.00
-
-
61,250.00
No. of Middle box Baht per piece
9,360.00 12.00
-
-
6,870.00 12.00
-
-
5,700.00 12.00
-
-
7,350.00 12.00
Cost of box
112,320.00
-
-
82,440.00
-
-
68,400.00 68 ,400.00
-
-
88,200.00
-
-
351,360.00
No. of Large box Baht per piece
6,240 30.00
-
-
4,580 34.00
-
-
3,800 34.00
-
-
4,900 34.00
-
-
19,520
Cost of large box
187,200.00
-
-
155,720.00
-
-
129,200.00 12 9,200.00
-
-
166,600.00
-
-
638,720.00
Total of month
689,520.00
-
-
524,410.00
-
-
435,100.00
-
-
561,050.00
-
-
2,210,080.00
-
-
Nov -
Dec Total 97,600.00 976,000.00 48,800.00 244,000.00 29,280.00
Year 4 No. of Bag Baht per piece
Jan 33,700.00 10.00
-
Feb -
Mar Apr 25,900.00 10.00
-
May -
Jun Jul 22,500.00 10.00
-
Aug -
Sep Oct 28,200.00 10.00
Cost of Bag
337,000.00
-
-
259,000.00
-
-
225,000.00
-
-
282,000.00
No. of Small box Baht per piece
16,850.00 5.00
-
-
12,950.00 5.00
-
-
11,250.00 5.00
-
-
14,100.00 5.00
Cost of box
84,250.00
-
-
64,750.00
-
-
56,250.00
-
-
70,500.00
No. of Middle box Baht per piece
10,110.00 12.00
-
-
7,770.00 12.00
-
-
6,750.00 12.00
-
-
8,460.00 12.00
Cost of box
121,320.00
-
-
93,240.00
-
-
81,000.00
-
-
101,520.00
-
-
397,080.00
No. of Large box Baht per piece
6,740 30.00
-
-
5,180 30.00
-
-
4,500 34.00
-
-
5,640 30.00
-
-
22,060
Cost of large box
202,200.00
-
-
155,400.00
-
-
153,000.00
-
-
169,200.00
-
-
679,800.00
Total of month
744,770.00
-
-
572,390.00
-
-
515,250.00
-
-
623,220.00
-
-
2,455,630.00
-
Nov -
Dec Total 110,300.00 110,300.00
-
1,103,000.00
-
55,150.00 275,750.00 33,090.00
Year 5 No. of Bag Baht per piece
Jan 37,600.00 10.00
-
Feb -
Mar Apr 29,000.00 10.00
-
May -
Jun Jul 23,900.00 10.00
-
Aug -
Sep Oct 29,500.00 10.00
Cost of Bag
376,000.00
-
-
290,000.00
-
-
239,000.00
-
-
295,000.00
No. of Small box Baht per piece
18,800.00 5.00
-
-
14,500.00 5.00
-
-
11,950.00 5.00
-
-
14,750.00 5.00
Cost of box
94,000.00
-
-
72,500.00
-
-
59,750.00
-
-
73,750.00
No. of Middle box Baht per piece
11,280.00 12.00
-
-
8,700.00 12.00
-
-
7,170.00 12.00
-
-
8,850.00 12.00
Cost of box
135,360.00
-
-
104,400.00
-
-
86,040.00
-
-
106,200.00
-
-
432,000.00
No. of Large box Baht per piece
7,520 30.00
-
-
5,800 30.00
-
-
4,780 34.00
-
-
5,900 30.00
-
-
24,000
Cost of large box
225,600.00
-
-
174,000.00
-
-
162,520.00 16 2,520.00
-
-
177,000.00
-
-
739,120.00
Total of month
830,960.00
-
-
640,900.00
-
-
547,310.00
-
-
651,950.00
-
-
2,671,120.00
-
Nov -
Dec Total 120,000.00
-
1,200,000.00
-
60,000.00 300,000.00 36,000.00
Location
The location is important for Best Ce Ra Ceramic 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 Lampang province the place is famous and there are many school around this area. It is near the most famous market Aut Swin and hotel in Lampang. According to the number of population in Lampang there are 817,390 people that we focus on our main target is the group of teenagers there are 674,682 people. At the company area the Wiang la kon road there is one commercial building that we buy 3 rows our company office. At the area that there are not any ceramic companies or any stores that will be our competitors because there are many clothes shops. With the ceramic products that the most of teenagers 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.
Commercial building
Facility Layout
Store
Living area
8M Product Showing Cashier
12 M
Second floor
Marketing room Living room
8M
Purchases room
HR room
12 M
Design room
Last floor
Finance Acc
Sale Office
Chair man Meeting room
Office
Company equipments Desk and chair NSB officer
-
President Table
Price
6,762 baht
-
President Chair
Price
4,045 baht
-
Executive Table front concave style set compose with Executive Table front concave style size 180*80*75 CM. 1 set, Price 4700 baht, Cabinet 2 side desk drawer size with melanin cover 47.2*51.6*60 CM. 1 set Price 2,400 baht
-
Executive Chair cushion sponge covers unreal skin with fiber legs size 60*65*105-115 CM.
-
Office desk
Price
1,800 baht
-
Office Chair
Price
1,350 baht.
-
Office desk, Computer desk 2 desk drawer PVC skin, size 60D*100W*75H cm
-
Office Chair, hydraulic, lockable size 57(W) * 50(D) * 88(H) cm
Counter
-
Counter
Price
23,915 baht
-
Counter L-Shape style size 183W *143D*109H cm
Adviser desk
-
Adviser desk
Price 1,764 baht
-
Sofa alone unreal skin modern size 55W * 76D * 77H cm
-
Medium desk ,circle legs, chromium cover, mirror clear, Price 1,100 baht
Table meeting set
Conference long desk, curved head, melanin 8 – 10 seats Price
15,000 baht.
Document cabinet
-
Size 80(W)*40(D)*160(H) cm
Price
2,800 baht
Casher
-
Scanner barcode laser,
Price
5,000 baht
-
Input cash electronic
Price
3,300 baht
-
Smart bill S-4000
Price
15,000 baht
Telephone
-
Panasonic series KX-T2371MX
-
Price
890 baht
Computer
-
HP Pavilion P6272L (NY730AA#AKL)
-
Price
19,590 baht
Security camera
-
FUJIKO DVR RJ series Better resolution and Saving data storage FK-RJ260808SET image together with sound with Pocket Pc and mobile (IE Browser/CMS) including taxes
-
Price 47,000 baht
Printer
-
Photosmart C3180
-
Hp Photosmart C3180 Printer/ Copier/ Scanner Intel: Hp Photosmart C3180 AllIn-One
Price
3,740 baht
Fax
-
BROTHER FAX-817
-
Price
3,790 baht
9.6K bps modem, approximately 15 sec*
512KB Memory
Up to 4 numbers of one-touch dials
Up to 60 speed dials - Up to 4 group dials
Up to 64 broadcasting locations
Memory Security
Caller ID - Up to 20 pages* of memory transmission
Up to 25 pages* of out-of-paper reception
Up to 30-Sheet Paper Capacity
Up to 10-page Automatic Feeder
Air Condition
SAIJO DENKI Hybrid
Stationary
-
A4 Paper Double A (1 block×550)
-
Pen (5baht/piece) use 20 pieces
-
Ink (2 tanks per month) 500 baht per tank
-
Total
1,650 baht per month
Logistics Management
Our company concern more about logistics management because this is the one process that able to let the company reduces cost, increase in sale, and gain profit rapidly. The main activities of Best Ce Ra company management are: Order management
We focus on the beginning of the order process that we try to make the right order information from customers and make the order system available and the company design the best product and make the order to manufactory for producing the products.
Packaging
We try to design Best Ce Ra own package and make the order to manufactory that for make the value of the products and make the point of different from others. Transportations
Communication system
We make the order for producing product and package on two methods, one is on the internet and one is on phone.
Transportation system
The transportation from manufacturing to our company that by using transportation service from their company, at the services charge that for free because our company make more order under the agreement.
Customers order to us to buying in whole that they come to get the product by themselves because we have other promotion in reduce price for them, so no need to ship the product to them.
Inventory control systems
The most of Best Ce Ra Ceramic products are made buy customer orders and sell in unit that there are not more inventories in Best Ce Ra store because after the products was finish from manufactory that we will deliver to customer rapidly that for reducing the damage in inventory. As some products that we have kept in the store are for showing in the gallery and sell in the company for some customers like teenagers walk into the shop and sell the product as the single unit. We focus on Continuous Inventory System that uses the barcode to record the product and organization tools input and output in our store. All of things in store are finished goods.
Facility Management
Best Ce Ra Ceramic Company focuses on all of below: Environmental Health and Safety
We provide the good company environmental for all people in the organization health and safety like Building Cleanliness system and Waste Removal system. Power Systems
We provide two power systems for our company that one is Normal power system and other one is Emergency power systems. Building Systems
We focus to make the company building have the best one security system that for protection and security. Life/Safety Systems
For providing Life and Safety Systems we have set the Sprinkler systems, Smoke/fire detection systems, Fire Extinguishers, Signage, and Evacuation Plans for emergency use. Water Tariffs (Provincial Waterworks Regional office 9) Rate of water Tariffs and how to compute.
Rate of water Tariffs will calculate amount of using water of each person, that record by water meter multiply current water rate the result won’t less than Water tariffs minimum rate in each type. The invoice will compose using water, general service, value add taxes, rate depend on government specify. Price of water Tariffs = [amount of using water + service fee] + value add taxes Water price rate and Water price minimum price rate.
The appraise of water Tariffs minimum price rate of each type is depend on foundation of need of each month, It‘s citizen beg for water supply from government to invent and build water supply system. Government take some part of taxes revenues to build water supply system to community with appraise water Tariffs rate to user.If water supply system is created but non user, It will wasteful on economic. Water tariffs minimum rate is used administration and management like as price of Water tariffs that collect from Type of user
Period of using water (liter/month)
Household and etc. (stang / liter) Water tariffs minimum rate
Government service and small business (stang / liter) Water tariffs minimum rate
State Enterprises industry and large business (stang / liter) Water tariffs minimum rate
0 - 10,000
0.755
0.900
1.000
10,001 - 20,000
0.850
1.175
1.300
20,001 - 30,000
1.075
1.300
1.600
30,001 - 50,000
1.275
1.400
1.900
50,001 - 80,000
1.400
1.440
2.100
100,001 - 300,000
1.460
1.460
2.150
300,001 - 1,000,000
1.470
1.470
2.175
1,000,001 -2,000,000
1.480
1.480
2.150
2,000,001 -3,000,000
1.490
1.490
2.125
3,000,001 more than
1.500
1.500
2.100
Price of water Tariffs
(60,000 liter *1.440)/100 = 864 baht Service Fee = 30 baht VAT 7% = 60.48 baht Total 864 + 30 + 60.48 = 954.48 Baht/month
Electronic
Type 2 Small business For using electric current for business, business including house, industry, government industry, State Enterprises and neighbor that are need electric current average in 15 minimize, maximums less than 30 kilowatts by direct one electric current
2.1 Normal rate
Energy charge
Service fee
(Baht/Unit)
(Baht/Month)
2.4649
228.17
2.1.1 Pressure 22-33 K.W. 2.1.2 Pressure less than 22 K.W. 0-150) 150 first unit (F
1.8047 40.90
151-400) 250 next unit (F
2.7781
More than 400 (unit 401 and more)
2.9780
Energy charge 2.2 (Time of Use Rate : TOU)
(Baht/Unit)
Service fee (Baht/Month)
Peak
Off Peak
2.2.1 Pressure 22-23 kilovolts
3.6246
1.1914
228.17
2.2.2 Pressure 22 kilovolts
4.3093
1.2246
57.95
Calculate Electricity X = Energy charge + Energy charge Adjustment charge +VAT
Estimate for use electricity 22-33 K.W. pressure Energy charge = 1,500 units × 2.4649 = 3,697 Energy charge adjustment charge = 1,500 × 0.6452 = 967.8 VAT 7% = (3,697 + 967.8) × 7/100 = 326.536 Total 3,697 + 967.8 + 326.536 = 4,991.336 Baht
Employee Salary Employees
Salary rate (baht/month)
Chairman
30,000
Secretary
7,000
HR Manager
10,000
Security
4,500
House keeper
4,500
Accounting Manager
10,500
Financial
7,000
Accountant and Tax
7,000
Store keeper and driver
7,500
Design Manager
11,000
Design Staff
8,000
Marketing Manager
10,500
Purchasing Manager
10,000
Sale manager
10,000
Cashier
6,500
Sale Staff
6,500 Total
Start 150,500
Internet
True Internet: Hi-Speed 8 Mbps. + Wifi 2 Mbps. 1,199 baht/month Telephone price
TOT: free 500 baht long 3 month. Estimate for use telephone and about
3,000 baht
Cost of Investment
Pre-Operating Cost
Commercial building and land (3 rolls) Building modifies cost (288square metres)
Price/Unit
3,500,000
Unit
Total
3 10,500,000
Baht
1,500
288
432,000
Baht
2,499
1
2,499
Baht
From package of contractor Install telephone
10,934,499 Investment cost
Working desk and chair for chairman
10,807
1
10,807
Baht
Working desks for employee
1,800
10
18,000
Baht
Working chairs for employee
1,350
22
29,700
Baht
23,915
1
23,915
Baht
1,764
4
7056
Baht
1,100
1
1,100
Baht
15,000
1
15,000
Baht
Document cabinet
2,800
8
22,400
Baht
White board
1,650
1
1,650
Baht
Scanner barcode laser
5,000
1
5,000
Baht
Input cash electronic
3,300
1
3,300
Baht
Counter desk Sofa suit 1suit Single sofa Table in sofa suit Table for meeting room
Cashier equipment set
Smart bill S-4000
15,000
1
15,000
Baht
890
12
10,680
Baht
Printer
3,740
2
7,480
Baht
Fax
3,790
2
7,580
Baht
Computer
19,590
12
235,000
Baht
Security camera
47,000
1
47,000
Baht
Air Condition
28,900
12
346,800
Baht
120
60
7,200
Baht
814,668
Baht
11,749,167
Baht
Telephone
Vinyl front lit (60 Square meters) Total Total Investment cost
Investment
Commercial
Amount
Depreciation
Annual Dep.
Monthly Dep.
4,932,000
20 Years
246,600
20,550
Security
47,000
5 Years
9,400
783
Air Condition
346,800
5 Years
69,360
5,780
Computer
235,000
3 Years
78,333
6,528
Telephone
10,680
3 Years
3,560
297
Printer
7,480
3 Years
2,493
208
Furniture
129,628
3 Years
43,209
3,601
Fax Machine
7,580
3 Years
2,527
211
Cashier
23,300
3 Years
7,767
647
7,200
3 Years
2,400
200
building
equipment set
Vinyl front lit
Depreciation Year 1 Investment Commercial building and land
246,600
246,600
783
9,396
9,396
5,780
5,780
69,360
69,360
6,528
6,528
6,528
78,336
78,336
297
297
297
297
3,564
3,564
208
208
208
208
208
2,496
2,496
3,601
3,601
3,601
3,601
3,601
3,601
43,212
43,212
211
211
211
211
211
211
211
2,532
2,532
647
647
647
647
647
647
647
647
7,764
7,764
200 20 0
200
200
200
200
200 20 0
200
200
200
2,400
2,400
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
465,660
4,932,000
20,550
47,000
783
783
783
783
783
783
783
783
783
783
783
Air Condition
346,800
5,780
5,780
5,780
5,780
5,780
5,780
5,780
5,780
5,780
5,780
Computer
235,000
6,528
6,528
6,528
6,528
6,528
6,528
6,528
6,528
6,528
Telephone
10,680
297
297
297
297
297
297
297
297
7,480
208
208
208
208
208
208
208
129,628
3,601
3,601
3,601
3,601
3,601
3,601
7,580
211
211
211
211
211
23,300
647
647
647
647
7,200
200
200
200
5,746,668
38,805
38,805
38,805
Printer Furniture Fax Machine Cashier equipment set Vinyl front lit Total
3 20,550
Total amount
1
Security
2 20,550
Total
Amount
4 20,550
5 20,550
6 20,550
7 20,550
8 20,550
9 20,550
10 20,550
11 20,550
12 20,550
465,660
Depreciation Year 2 Investment Commercial building and land
246,600
493,200
783
9,396
18,792
5,780
5,780
69,360
138,720
6,528
6,528
6,528
78,336
156,672
297
297
297
297
3,564
7,128
208
208
208
208
208
2,496
4,992
3,601
3,601
3,601
3,601
3,601
3,601
43,212
86,424
211
211
211
211
211
211
211
2,532
5,064
647
647
647
647
647
647
647
647
7,764
15,528
200
200
200
200
200
200
200
200
200
2,400
4,800
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
465,660
4,932,000
20,550
47,000
783
783
783
783
783
783
783
783
783
783
783
Air Condition
346,800
5,780
5,780
5,780
5,780
5,780
5,780
5,780
5,780
5,780
5,780
Computer
235,000
6,528
6,528
6,528
6,528
6,528
6,528
6,528
6,528
6,528
Telephone
10,680
297
297
297
297
297
297
297
297
7,480
208
208
208
208
208
208
208
129,628
3,601
3,601
3,601
3,601
3,601
3,601
7,580
211
211
211
211
211
23,300
647
647
647
647
7,200
200
200
200
5,746,668
38,805
38,805
38,805
Printer Furniture Fax Machine Cashier equipment set Vinyl front lit Total
3 20,550
Total amount
1
Security
2 20,550
Total
Amount
4 20,550
5 20,550
6 20,550
7 20,550
8 20,550
9 20,550
10 20,550
38,805
11 20,550
12 20,550
931,320
Depreciation Year 3 Investment Commercial building and land
Amount
1
4,932,000
20,550
47,000
783
783
783
783
783
783
783
783
783
783
783
Air Condition
346,800
5,780
5,780
5,780
5,780
5,780
5,780
5,780
5,780
5,780
5,780
Computer
235,000
6,528
6,528
6,528
6,528
6,528
6,528
6,528
6,528
6,528
Telephone
10,680
297
297
297
297
297
297
297
297
7,480
208
208
208
208
208
208
208
129,628
3,601
3,601
3,601
3,601
3,601
3,601
7,580
211
211
211
211
211
23,300
647
647
647
647
7,200
200
200
200
5,746,668
38,805
38,805
38,805
Security
Printer Furniture Fax Machine Cashier equipment set Vinyl front lit Total
2 20,550
3 20,550
4 20,550
5 20,550
6 20,550
7 20,550
8 20,550
9 20,550
10 20,550
11 20,550
12 20,550
Total
Total amount
246,600
739,800
783
9,396
28,188
5,780
5,780
69,360
208,080
6,528
6,528
6,528
78,336
235,008
297
297
297
297
3,564
10,692
208
208
208
208
208
2,496
7,488
3,601
3,601
3,601
3,601
3,601
3,601
43,212
129,636
211
211
211
211
211
211
211
2,532
7,596
647
647
647
647
647
647
647
647
7,764
23,292
200
200
200
200
200
200
200
200
200
2,400
7,200
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
465,660
1,396,980
Depreciation Year 4 Investment Commercial building and land
Amount
1
4,932,000
20,550
47,000
783
783
783
783
783
783
783
783
783
783
783
Air Condition
346,800
5,780
5,780
5,780
5,780
5,780
5,780
5,780
5,780
5,780
5,780
Computer
235,000
-
0
0
0
0
0
0
0
0
Telephone
10,680
-
0
0
0
0
0
0
0
7,480
-
0
0
0
0
0
0
129,628
-
0
0
0
0
0
7,580
-
0
0
0
0
23,300
-
0
0
0
7,200
-
0
0
5,746,668
27,113
27,113
27,113
Security
Printer Furniture Fax Machine Cashier equipment set Vinyl front lit Total
2 20,550
3 20,550
4 20,550
5 20,550
6 20,550
7 20,550
8 20,550
9 20,550
10 20,550
11 20,550
12 20,550
Total amount
Total
246,600
986,400
783
9,396
37,584
5,780
5,780
69,360
277,440 2 77,440
0
0
0
0
235,008
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
27,113
27,113
27,113
27,113
27,113
27,113
27,113
27,113
27,113
325,356
1,536,432
Depreciation Year 5 Investment Commercial building and land
Security
Amount
1
2 20,550
4,932,000
20,550
3 20,550
4 20,550
5 20,550
6 20,550
7 20,550
8 20,550
9 20,550
10 20,550
11 20,550
12 20,550
Total
Total amount
246,600
1,233,000
47,000
783
783
783
783
783
783
783
783
783
783
783
783
9,396
46,980
Air Condition
346,800
5,780
5,780
5,780
5,780
5,780
5,780
5,780
5,780
5,780
5,780
5,780
5,780
69,360
346,800
Computer
235,000
-
0
0
0
0
0
0
0
0
0
0
0
0
0
Telephone
10,680
-
0
0
0
0
0
0
0
0
0
0
0
0
0
7,480
-
0
0
0
0
0
0
0
0
0
0
0
0
0
129,628
-
0
0
0
0
0
0
0
0
0
0
0
0
0
7,580
-
0
0
0
0
0
0
0
0
0
0
0
0
0
23,300
-
0
0
0
0
0
0
0
0
0
0
0
0
0
Printer Furniture Fax Machine Cashier equipment set Vinyl front lit Total
7,200
-
0
0
0
0
0
0
0
0
5,746,668
27,113
27,113
27,113
27,113
27,113
27,113
27,113
27,113
27,113
0 27,113
0 27,113
0 27,113
0 325,356
0 1,626,780
Organization expense year 1 Description
1
2
3
4
5
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
36,000
Internet cost
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
14,388
Stationary
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
19,800
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
11,454
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
59,896
290,350
-
-
312,840
-
-
293,560
-
-
387,740
-
-
1,284,490
452,645
162,295
162,295
475,135
162,295
162,295
455,855
162,295
162,295
550,035
162,295
Salary Telephone and Fax cost
Water price Electronic price Box and Paper bag cost Total
6
7
8
9
10
11
12
Total
150,500 1,806,000
162,295
3,232,028
Organization expense year 2 Description Salary
1
2
3
4
5
6
7
8
9
10
11
12
Total
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
1,806,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
36,000
Internet cost
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
14,388
Stationary
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
19,800
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
11,454
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
59,896
527,960
-
-
440,650
-
-
358,240
-
-
459,600
-
-
1,786,450
690,255
162,295
162,295
602,945
162,295
162,295
520,535
162,295
162,295
621,895
162,295
Telephone and Fax cost
Water price Electronic price Box and Paper bag cost Total
162,295
3,733,988
Organization expense year 3 Description Salary
1
2
3
4
5
6
7
8
9
10
11
12
Total
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
1,806,000
and Fax cost
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
36,000
Internet cost
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
14,388
Stationary
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
19,800
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
11,454
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
59,896
cost
689,520
-
-
524,410
-
-
435,100
-
-
561,050
-
-
2,210,080
Total
851,815
162,295
162,295
686,705
162,295
162,295
597,395
162,295
162,295
723,345
162,295
Telephone
Water price Electronic price Box and Paper bag
162,295
4,157,618
Organization expense year 4 Description
1
2
3
4
5
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
cost
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
36,000
Internet cost
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
14,388
Stationary
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
19,800
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
11,454
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
59,896
cost
744,770
-
-
572,390
-
-
515,250
-
-
623,220
-
-
2,455,630
Total
907,065
162,295
162,295
734,685
162,295
162,295
677,545
162,295
162,295
785,515
162,295
Salary
6
7
8
9
10
11
12
Total
150,500 1,806,000
Telephone and Fax
Water price Electronic price Box and Paper bag
162,295
4,403,168
Organization expense year 5 Description
1
2
3
4
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
150,500
Fax cost
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
36,000
Internet cost
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
1,199
14,388
Stationary
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
1,650
19,800
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
954.48
11,454
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
4,991.34
59,896
bag cost
830,960
-
-
640,900
-
-
547,310
-
-
651,950
-
-
2,671,120
Total
993,255
162,295
162,295
803,195
162,295
162,295
709,605
162,295
162,295
814,245
Salary
5
6
7
8
9
10
11
12
Total
150,500 1,806,000
Telephone and
Water price Electronic price Box and Paper
162,295
162,295
4,618,658
Conclusion
The products of Best Ce Ra Ceramic 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 Best Ce Ra Ceramic Company limited. Best Ce Ra focus on three styles of design concept, there are green design, love design, and animal concept design. The entire product designs that we try to fix on the products shapes and follow the modern trend in nowadays customer favors. Best Ce Ra creates these designs for two main of products are decorations and gifts. Besides, there is a point that different from others it is fragrance, all of the products that we have inserts fragrance that like fresh nature into the products. We choose K.K. Ceramics Company to produce for our product and Asia Paper Bag Company to produce the bag and boxed. From study about production and operation of Best Ce Ra business we foresee to build this business because of we have ready staff that right job, right time and right people.
Chapter 5 Financial Analysis Income Statement
For income statement, we consider from previous data of market average to use as basic information to estimate income and expense that we will receive in each year. We are estimate about 5 years by we use financial assumption and other financial policy and we can see the net income of our company increasing in every year in the chart especially in year 3-4 we get net income from 8,501,179 baht or 65% from cost of investment. In the graph, we can sell a lot of ceramics product in January, February, November and December because these months have special day. For example, In December and January have New Year day, in February has Valentine day. It makes net profits of in January, February, November and December are higher than other months. In April, July and October has less income because these months are low season and we have more expense. It will make net profit in April, July and October are less than others months.
Best Cera Ceramic Company Limited Income Statement Monthly Based for Year 1 First Year
Jan
Feb
Mar
Apr
1,143,300
1,238,300
955,600
1,127,400
1,143,300
1,238,300
955,600 955,600
322,500
344,000
820,800
Organization Organizati on Expense
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Total
857,400
1,048,000
1,112,800
1,440,800
1,285,900
1,134,500
1,386,200
1,948,900
14,679,100
1,127,400
857,400
1,048,000
1,112,800 1,112,800
1,440,800 1,440,800
1,285,900
1,134,500 1,134,500
1,386,200 1,386,200
1,948,900
14,679,100
270,500
321,500
259,500
294,50 0
299,500
383,000
347,500
306 ,500
377,000
527,500
4,053 ,500
894,300
685,100
805,900
597,900
753,500
813,300
1,057,800
938,400
828,000
1,009,200
1,421,400
10,625,600
452,645
162,295
162,295
475,135
162,295
162,295
455,855
162,295
162,295
550,035
162,295
162,295
3,232,028
Depreciation Depreciati on
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
465,660
Marketing expenses
6,150
7,050
6,150
6,150
7,050
6,150
6,150
7,050
6,150
6,150
6,150
7,050
77,400
Total Operating Expenses
497,600
208,150
207,250
520,090
208,150
207,250
500,810
208,150
207,250
594,990
207,250
208,150
3,775,088
Operating Income
323,200
686,150
477,850
285,810
389,750
546,250
312,490
849,650
731,150
233,010
801,950
1,213,250
6,850,512
(Less interest expense)
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
1,560,000
Income Before Taxes
193,200
556,150
347,850
155,810
259,750
416,250
182,490
719,650
601,150
103,010
671,950
1,083,250
5,290,512
(Less income tax expense)
28,980
83,423
52,178
23,372
38,963
62,438
27,374
107,948
90,173 90,173
15,452
100,793
162,488 162,488
793,577
164,220
472,728
295,673
132,439
220,788
353,813
155,117
164,220
636,948
932,620
1,065,059
1,285,846
1,639,659
1,794,775
2,406,478
2,917,455
3,005,014
3,576,171
636,948
932,620
1,065,059
1,285,846
1,639,659
1,794,775
2,406,478
2,917,455
3,005,014
3,576,171
4,496,934
Revenue
Sales Net sales Cost of Goods Sold
Cost of Goods Sold Gross Profit Expenses
Net Income
Retained earnings beginning of the months Retained earnings
164,220
611,703
510,978
87,559
571,158
920,763
4,496,935
Balance Sheet
In balance sheet part include the data of asset, debt share and owner in period year end that how much it is. The balance sheet takes the data cash flow income statement to calculation. In the line of balance sheet this graph shows the value of equity that will increase in every year and liabilities of our company will steadily which in five year.
Best Cera Ceramic Company Limited Balance Sheet Monthly Based for Year 1 Jan
F eb
Mar Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Assets Current assets
Cash
995,063
1,337,250
1,503,282
1,193,240
1,283,487
1,507,659
1,239,575
1,720,737
2,102,074
1,672,252
2,113,769
2,903,991
Other current assets
613,190
1,106,681
1,028,021
1,278,462
1,512,942
1,799,083
1,988,523
2,656,224
2,667,364
2,686,605
3,385,185
3,927,026
1,608,253
2,443,931
2,531,303
2,471,702
2,796,429
3,306,742
3,228,098
4,376,961
4,769,438
4,358,857
5,498,954
6,831,017
814,668
814,668
814,668
814,668
814,668
814,668
814,668
814,668
814,668
814,668
814,668
814,668
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
Total Fix asset
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
Total assets
13,357,420
14,193,098
14,280,470
14,220,869
14,545,596
15,055,909
14,977,265
16,126,128
16,518,605
16,108,024
17,248,121
18,580,184
Taxes payable
193,200
556 ,150
347,85 0
155,810
259 ,750
416,25 0
182,490
719 ,650
601,15 0
103,010
671 ,950
1,083,250
Total current liabilities
193,200
556 ,150
347,85 0
155,810
259 ,750
416,25 0
182,490
719 ,650
601,15 0
103,010
671 ,950
1,083,250
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
Total current assets Fix assets
Equipment Building and land
Liabilities and equity Liabilities Current liabilities
Non current liabilities
Long term debt
Total non current liabilities
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
Total liabilities
13,193,200
13,556,150
13,347,850
13,155,810
13,259,750
13,416,250
13,182,490
13,719,650
13,601,150
13,103,010
13,671,950
14,083,250
164,220
636,948
932,620
1,065,059
1,285,846
1,639,659
1,794,775
2,406,478
2,917,455
3,005,014
3,576,171
4,496,934
164,220
636,948
932,620
1,065,059
1,285,846
1,639,659
1,794,775
2,406,478
2,917,455
3,005,014
3,576,171
4,496,934
13,357,420
14,193,098
14,280,470
14,220,869
14,545,596
15,055,909
14,977,265
16,126,128
16,518,605
16,108,024
17,248,121
18,580,184
Equity
Retained earnings Total equity Total liabilities and equity
Best Cera Ceramic Company Limited Balance Sheet Monthly Based for Year 2 Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Assets Curent assets
Cash
2,790,042
3,565,729
4,005,971
3,749,841
4,188,418
4,511,105
4,041,763
4,304,390
4,521,507
3,824,914
4,241,696
4,974,543
Other Curent assets
2,676,553
2,871,077
2,941,363
3,466,525
3,642,058
3,751,089
4,162,418
4,359,070
4,480,520
5,022,570
5,262,641
5,449,117
5,466,595
6,436,806
6,947,334
7,216,366
7,830,476
8,262,194
8,204,181
8,663,460
9,002,027
8,847,484
9,504,337
10,423,660
814,668
814,66 8
814,668
814,668
814,668
814,668
814,668
814,668
814,668
814,668
814,668
814,668
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
Total Fix asset
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
Total assets
17,215,762
18,185,973
18,696,501
18,965,533
19,579,643
20,011,361
19,953,348
20,412,627
20,751,194
20,596,651
21,253,504
22,172,827
Taxes payable
95,939
159,923
100,568
55,440
100,433
79,823
3,272
69,383
61,193
-14,003
96,428
152,363
Total current liabilities
95,939
159,923
100,568
55,440
100,433
79,823
3,272
69,383
61,193
-14,003
96,428
152,363
Total current assets Fix assets
Equipment
Building and land
Liabilities and equity Liabilities Current liabilities
Non current liabilities
Long term debt
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
Total non current liabilities
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
Total liabilities
13,095,939
13,159,923
13,100,568
13,055,440
13,100,433
13,079,823
13,003,272
13,069,383
13,061,193
12,985,997
13,096,428
13,152,363
4,119,823
5,026,050
5,595,933
5,910,093
6,479,210
6,931,538
6,950,076
7,343,244
7,690,001
7,610,654
8,157,076
9,020,464
4,119,823
5,026,050
5,595,933
5,910,093
6,479,210
6,931,538
6,950,076
7,343,244
7,690,001
7,610,654
8,157,076
9,020,464
17,215,762
18,185,973
18,696,501
18,965,533
19,579,643
20,011,361
19,953,348
20,412,627
20,751,194
20,596,651
21,253,504
22,172,827
Equity
Retained earnings
Total equity Total liabilities and equity
Best Cera Ceramic Company Limited Balance Sheet Monthly Based for Year 3 Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Assets Curent assets
Cash
1,787,512
2,681,519
3,204,891
2,853,475
3,327,497
3,673,644
3,120,251
3,534,603
3,844,540
2,991,930
3,454,102
4,383,809
Other Curent assets
9,114,515
9,331,249
9,395,324
9,987,542
10,171,365
10,278,280
10,761,061
10,985,756
11,096,812
11,773,289
11,986,247
12,199,453
10,902,027
12,012,768
12,600,215
12,841,017
13,498,862
13,951,924
13,881,312
14,520,359
14,941,352
14,765,219
15,440,349
16,583,262
814,668
814, 668
814,668
814,668
814,668
814,66 8
814,668
814,668
814,668
814,668
814,668
814,668
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
Total Fix asset
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
Total assets
22,651,194
23,761,935
24,349,382
24,590,184
25,248,029
25,701,091
25,630,479
26,269,526
26,690,519
26,514,386
27,189,516
28,332,429
94,610
180,803
115,238
53,406
106,688
83,963
2,003
96,158
77,573
21,120
104,438
187,103
Total current assets
Fix assets
Equipment
Building and land
Liabilities and equity Liabilities Current liabilities
Taxes payable
94,610
180,803
115,238
53,406
106,688
83,963
2,003
96,158
77,573
21,120
104,438
187,103
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
Total non current liabilities
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
Total liabilities
13,094,610
13,180,803
13,115,238
13,053,406
13,106,688
13,083,963
13,002,003
13,096,158
13,077,573
13,021,120
13,104,438
13,187,103
9,556,584
10,581,132
11,234,144
11,536,778 11,536,778
12,141,341
12,617,128
12,628,476
13,173,368
13,612,946
13,493,266
14,085,078
15,145,326
9,556,584
10,581,132
11,234,144
11,536,778
12,141,341
12,617,128
12,628,476
13,173,368
13,612,946
13,493,266
14,085,078
15,145,326
22,651,194
23,761,935
24,349,382
24,590,184
25,248,029
25,701,091
25,630,479
26,269,526
26,690,519
26,514,386
27,189,516
28,332,429
Total current liabilities Non current liabilities
Long term debt
Equity
Retained earnings
Total equity Total liabilities and equity
Best Cera Ceramic Company Limited Balance Sheet Monthly Based for Year 4 Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Assets Curent assets
Cash Other Curent assets
2,053,968
3,015,289
3,665,645
3,327,969
3,918,520
4,428,371
3,891,424
4,447,550
4,900,026
4,139,026
4,731,752
5,837,913
980,785
1,195,454
1,270,059
1,898,741
2,092,234
2,207,474
2,758,562
2,991,229
3,102,418
3,755,738
4,011,792
4,233,096
3,034,753
4,210,743
4,935,704
5,226,710
6,010,754 6,010,754
6,635,845
6,649,986
7,438,779
8,002,444
7,894,764
8,743,544
10,071,009
Equipment
814,668
814,668
814,668
814,668
814,668
814,668
8 14,668
814,668
814,668
814,668
814,668
814,668
Building and land
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
Total Fix asset
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167 11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
Total assets
14,783,920
15,959,910
16,684,871
16,975,877
17,759,921 17,759,921
18,385,012
18,399,153
19,187,946
19,751,611
19,643,931
20,492,711
21,820,176
Total current assets Fix assets
Liabilities and equity Liabilities Current liabilities
Taxes payable
108,551
192,681
137,646
64,298
127, 251
112,851
19,049
121,176
102,726
1,062
127,476
218,241
Total current liabilities
108,551
192,681
137,646
64,298
127, 251
112,851
19,049
121,176
102,726
1,062
127,476
218,241
Non current liabilities
Long term debt
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
Total non current liabilities
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000 13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
Total liabilities
13,108,551
13,192,681
13,137,646
13,064,298
13,127,251 13,127,251
13,112,851
13,019,049
13,121,176
13,102,726
13,001,062
13,127,476
13,218,241
6,642,869
7,365,235
8,601,935
Equity
Retained earnings
1,675,369
2,767,229
3,547,225
3,911,579
4,632,670
5,272,161
5,380,104
6,066,770
6,648,885
Total equity
1,675,369
2,767,229
3,547,225
3,911,579
4,632,670 4,632,670
5,272,161
5,380,104
6,066,770
6,648,885
6,642,869
7,365,235
8,601,935
Total liabilities and equity
14,783,920
15,959,910
16,684,871
16,975,877
17,759,921 17,759,921
18,385,012
18,399,153
19,187,946
19,751,611
19,643,931
20,492,711
21,820,176
Best Cera Ceramic Company Limited Balance Sheet Monthly Based for Year 5 Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Assets Curent assets
Cash
3,225,256
4,399,502
5,180,673
4,847,069
5,566,650
6,181,816
5,667,413
6,246,489
6,756,340
5,978,738
6,617,364
7,795,435
40,159
284,273
344,388
1,031,303
1,234,757
1,345,812
1,920,011
2,147,092
2,264,357
2,933,800
3,198,311
3,424,206
3,265,415
4,683,775
5,525,061
5,878,372
6,801,407
7,527,628
7,587,424
8,393,581
9,020,697
8,912,538
9,815,675
11,219,641
814,668
814, 668
814,668
814,668
814,668
814,66 8
814,668
814,668
814,668
814,668
814,668
814,668
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
10,934,499
Total Fix asset
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
11,749,167
Total assets
15,014,582
16,432,942
17,274,228
17,627,539
18,550,574
19,276,795
19,336,591
20,142,748
20,769,864
20,661,705
21,564,842
22,968,808
Taxes payable
116,682
230,256
160,731
77,106
150,021
131,436
28,685
125,226
112,851
704
135,576
230,931
Total current liabilities
116,682
230,256
160,731
77,106
150,021
131,436
28,685
125,226
112,851
704
135,576
230,931
Other Curent assets
Total current assets
Fix assets
Equipment
Building and land
Liabilities and equity Liabilities Current liabilities
Non current liabilities
Long term debt
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
Total non current liabilities
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
13,000,000
Total liabilities
13,116,682
13,230,256
13,160,731
13,077,106
13,150,021
13,131,436
13,028,685
13,125,226
13,112,851
13,000,704
13,135,576
13,230,931
1,897,900
3,202,686
4,113,497
4,550,433
5,400,553
6,145,359
6,307,906
7,017,522
7,657,013
7,661,001
8,429,266
9,737,877
1,897,900
3,202,686
4,113,497
4,550,433
5,400,553
6,145,359
6,307,906
7,017,522
7,657,013
7,661,001
8,429,266
9,737,877
15,014,582
16,432,942
17,274,228
17,627,539
18,550,574
19,276,795
19,336,591
20,142,748
20,769,864
20,661,705
21,564,842
22,968,808
Equity
Retained earnings
Total equity Total liabilities and equity
Cash Flow
In cash flow part, the estimate actual income in the year that how much company receives and expense by using financial hypothesis and financial policy abovementioned and we can see the current assets increasing in every year and that is show the liquidity of cash flow have high because we have cash more the current liability in each year. Then we can spend a lot of money to purchase ceramics product by not have a problem.
Best Cera Ceramic Company Limited Statement of Cash Flow Monthly Based for Year 1 Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Total
Operating activities Cash inflow
Cash sales
1,143,300
1,238,300
955,600
1,127,400
857,400
1,048,000
1,112,800
1,440,800
1,285,900
1,134,500
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
1,182,105
1,277,105
994,405
1,166,205
896,205
1,086,805
1,151,605
1,479,605
1,324,705
1,173,305
Purchasing product
322,500
344,000
270,500
321,500
259,500
294,500
299,500
383,000
347,500
Operating expense
497,600
208,150
207,250
520,090
208,150
207,250
500,810
208,150
28,980
83,423
52,178
23,372
38,963
62,438
27,374
activity
849,080
635,573
529,928
864,962
506,613
564,188
Net cash flow form Operating activity
333,025
641,532
464,477
301,243
389,592
522,617
Depreciati on Cash inflow from operating activity
1,386,200
1,948,900
14,679,100
38,805
38,805
465,660
1,425,005
1,987,705
15,144,760
306,500
377,000
527,500
4,053,500
207,250
594,990
207,250
208,150
3,775,090
107,948
90,173
15,452
100,793
162,488
793,582
827,684
699,098
644,923
916,942
685,043
898,138
8,622,172
323,921
780,507
Cash outflow
Income tax Cash out flow from operating
679,782
256,363
739,962
1,089,567
6,522,588
Selling & administrative activities Cash inflow
0
0
0
0
0
0
0
0
0
0
0
0
0
6,150
7,050
6,150
6,150
7,050
6,150
6,150
7,050
6,150
6,150
6,150
7,050
77,400
452,645
162,295
162,295
475,135
162,295
162,295
455,855
162,295
162,295
550,035
162,295
162,295
3,232,028
458,795
169,345
168,445
481,285
169,345
168,445
462,005
169,345
168,445
556,185
168,445
169,345
3,309,428
-458,795
-169,345
-168,445
-481,285
-169,345
-168,445
-462,005
-169,345
-168,445
-556,185
-168,445
-169,345
-3,309,428
0
0
0
0
0
0
0
0
0
0
0
0
0
10,500,000
0
0
0
0
0
0
0
0
0
0
0
10,500,000
432,000
0
0
0
0
0
0
0
0
0
0
0
432,000
2,499
0
0
0
0
0
0
0
0
0
0
0
2,499
814,668
0
0
0
0
0
0
0
0
0
0
0
814,668
11,749,167
0
0
0
0
0
0
0
0
0
0
0
11,749,167
-11,749,167
0
0
0
0
0
0
0
0
0
0
0
-11,749,167
Cash outflow
Marketing expenses Organization Organization expenses Cash outflow sell & administrative activity Net cash flow sell & administrative activity Investing activities Cash inflow Cash outflow
Building and land Building modifies cost Install telephone Equipment Cash outflow investing activities Net cash flow investing activities Financing activities
Cash inflow
Borrowing
13,000,000
0
0
0
0
0
0
0
0
0
0
0
13,000,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
1,560,000
12,870,000
-130,000
-130,000
-130,000
-130,000
-130,000
-130,000
-130,000
-130,000
-130,000
-130,000
-130,000
11,440,000
995,063
342,187
166,032
-310,042
90,247
224,172
-268,084
481,162
381,337
-429,822
441,517
790,222
2,903,991
1,337,25
1,503,28
1,193,24
1,283,48
1,507,65
1,239,57
1,720,73
2,102,07
0
2
0
7
9
5
7
4
1,672,252
2,113,769
1,503,28
1,193,24
1,283,48
1,507,65
1,239,57
1,720,73
2,102,07
1,672,25
2
0
7
9
5
7
4
2
2,113,769
2,903,991
Cash outflow
Interest rate Net Financing activities Net cash increase increase or decrease
995,063
Beginning cash
Ending cash
995,063
1,337,250
2,903,991
Monthly Based for Year 2
Jan
Feb
Mar
Apr
May
Jun
Jul
2,064,300
1,919,800
1,382,200
1,577,000
1,382,200
1,191,900
38,805
38,805
38,805
38,805
38,805
38,805
2,103,105
1,958,605
1,421,005
1,615,805
1,421,005
Purchasing product
559,500
515,500
374,500
429,500
Operating expense
735,210
208,150
207,250
95,939
159,923
100,568
1,390,649
883,573
712,456
Aug
Sep
Oct
Nov
Dec
Total
Operating activities Cash inflow
Cash sales
1,344,600
1,858,900
16,787,600
38,805
38,805
465,660
1,383,405
1,897,705
17,253,260
260,500
364,500
505,000
4,545,500
207,250
666,850
207,250
208,150
4,277,050
69,383
61,193
14,003
96,428
152,363
988,768
834,262
575,033
544,943
941,353
668,178
865,513
9,811,318
621,132
187,343
561,972
515,562
61,452
0
0
0
0
0
0
0
0
0
6,150
7,050
6,150
6,150
7,050
6,150
6,150
6,150
7,050
77,400
162,295
602,945
162,295
162,295
520,535
162,295
162,295
621,895
162,295
162,295
3,733,990 3,733,990
169,345
168,445
609,095
169,345
168,445
526,685
169,345
168,445
628,045
168,445
169,345
3,811,390
-169,345
-168,445
-609,095
-169,345
-168,445
-526,685
-169,345
-168,445
-628,045
-168,445
-169,345
-3,811,390
1,098,200
1,021,700
38,805
38,805
38,805
38,805
1,230,705
1,021,605
1,137,005
1,060,505
1,002,805
374,500
322,500
265,500
297,500
276,500
647,900
208,150
207,250
565,490
208,150
55,440
100,433
79,823
3,272
682,318
1,132,840
683,083
609,573
1,075,032
738,687
482,965
737,922
0
0
0
0
6,150
7,050
6,150
690,255
162,295
Cash outflow sell & administrative activity
696,405
Net cash flow sell & administrative activity
-696,405
Depreciation Depreciat ion Cash inflow from operating activity
982,800
964,000
Cash outflow
Income tax Cash out flow from operating activity Net cash flow form Operating activity
715,227
1,032,192
7,441,942
Selling & administrative activities Cash inflow Cash outflow
Marketing expenses Organization expenses
Investing activities
0
0
0
0
0
0
0
0
0
0
0
0
0
Building and land
0
0
0
0
0
0
0
0
0
0
0
0
0
Building modifies cost
0
0
0
0
0
0
0
0
0
0
0
0
0
Install telephone
0
0
0
0
0
0
0
0
0
0
0
0
0
Equipment
0
0
0
0
0
0
0
0
0
0
0
0
0
Cash outflow investing activities
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
1,560,000
Net Financing activities
-130,000
-130,000
-130,000
-130,000
-130,000
-130,000
-130,000
-130,000
-130,000
-130,000
-130,000
-130,000
-1,560,000
Net cash increase or decrease
-113,949
775,687
440,242
-256,130
438,577
322,687
-469,342
262,627
217,117
-696,593
416,782
732,847
2,070,552
Beginning cash
2,903,991
2,790,042
3,565,729
4,005,971
3,749,841
4,188,418
4,511,105
4,041,763
4,304,390
4,521,507
3,824,914
4,241,696
Ending cash
2,790,042
3,565,729
4,005,971
3,749,841
4,188,418
4,511,105
4,041,763
4,304,390
4,521,507
3,824,914
4,241,696
4,974,543
Cash inflow Cash outflow
Net cash flow investing activities
Financing activities Cash inflow
Borrowing Cash outflow
Interest rate
2,070,552
Best Cera Ceramic Company Limited Statement of Cash Flow Monthly Based for Year 3 Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Total
2,275,000
2,112,500
1,518,000
1,675,200
1,439,400
1,229,500
1,075,200
1,340,700
1,168,400
1,035,000
1,413,500
2,170,500
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
2,313,805
2,151,305
1,556,805
1,714,005
1,478,205
1,268,305
1,114,005
1,379,505
1,207,205
1,073,805
1,452,305
2,209,305
Purchasing product
617,500
569,000
412,500
457,500
390,000
332,500
289,500
361,500
314,000
277,500
380,000
585,000
4,986,500
Operating expense
896,770
208,150
207,250
731,660
208,150
207,250
642,350
208,150
207,250
768,300
207,250
208,150
4,700,680
94,610
180,803
115,238
53,406
106,688
83,963
2,003
96,158
77,573
21,120
104,438
187,103
1,123,103
1,608,880
957,953
734,988
1,066,920
691,688
980,253
10,810,283
704,925
1,193,352
821,817
471,439
773,367
6,885
760,617
0
0
0
0
0
0
0
0
0
0
0
0
0
6,150
7,050
6,150
6,150
7,050
6,150
6,150
7,050
6,150
6,150
6,150
7,050
77,400
851,815
162,295
162,295
686,705
162,295
162,295
597,395
162,295
162,295
723,345
162,295
162,295
4,157,620
857,965
169,345
168,445
692,855
169,345
168,445
603,545
169,345
168,445
729,495
168,445
169,345
4,235,020
Operating activities Cash inflow
Cash sales Depreciation Depreciat ion Cash inflow from operating activity
18,452,900 465,660 18,918,560
Cash outflow
Income tax Cash out flow from operating activity Net cash flow form Operating activity
1,242,566
704,838
623,713 644,592
933,853 180,152
665,808 713,697
598,823 608,382
1,229,052
8,108,277
Selling & administrative activities Cash inflow Cash outflow
Marketing expenses Organization expenses Cash outflow sell & administrative activity
857,965
169,345
168,445
692,855
169,345
168,445
603,545
169,345
168,445
729,495
168,445
169,345
-4,235,020
0
0
0
0
0
0
0
0
0
0
0
0
0
Building and land
0
0
0
0
0
0
0
0
0
0
0
0
0
Building modifies cost
0
0
0
0
0
0
0
0
0
0
0
0
0
Install telephone
0
0
0
0
0
0
0
0
0
0
0
0
0
Equipment
0
0
0
0
0
0
0
0
0
0
0
0
0
Cash outflow investing activities
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
1,560,000
Net Financing activities
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
-1,560,000
Net cash increase or decrease
283,040
894,007
523,372
351,416
474,022
346,147
553,393
414,352
309,937
852,610
462,172
929,707
2,313,257
Beginning cash
2,070,552
1,787,512
2,681,519
3,204,891
2,853,475
3,327,497
3,673,644
3,120,251
3,534,603
3,844,540
2,991,930
3,454,102
Ending cash
1,787,512
2,681,519
3,204,891
2,853,475
3,327,497
3,673,644
3,120,251
3,534,603
3,844,540
2,991,930
3,454,102
4,383,809
Net cash flow sell & administrative activity
Investing activities Cash inflow Cash outflow
Net cash flow investing activities
Financing activities Cash inflow
Borrowing Cash outflow
Interest rate
2,313,257
Best Cera Ceramic Company Limited Statement of Cash Flow Monthly Based for Year 4 Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Total
2,459,000
2,202,500
1,706,200
1,821,600
1,613,800
1,480,400
1,329,800
1,559,800
1,390,400
1,296,700
1,615,400
2,444,400
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
2,497,805
2,241,305
1,745,005
1,860,405
1,652,605
1,519,205
1,368,605
1,598,605
1,429,205
1,335,505
1,654,205
2,483,205
Purchasing product
665,000
591,500
463,000
495,000
439,000
402,500
362,000
425,500
380,000
355,000
440,000
663,000
Operating expense
940,328
196,458
195,558
767,948
196,458
195,558
710,808
196,458
195,558
818,778
195,558
196,458
4,805,926
Income tax
108,551
192,681
137,646
64,298
127,251
112,851
19,049
121,176
102,726
1,062
127,476
218,241
1,333,008
1,713,879
980,639
796,204
1,327,246
762,709
783,926
1,260,666
948,801
533,159
889,896
808,296
276,748
0
0
0
0
0
0
0
0
0
0
6,150
7,050
6,150
6,150
7,050
6,150
6,150
7,050
6,150
907,065
162,295
162,295
734,685
162,295
162,295
677,545
162,295
162,295
Operating activities Cash inflow
Cash sales Depreciation Depreciat ion Cash inflow from operating activity
20,920,000 465,660 21,385,660
Cash outflow
Cash out flow from operating activity Net cash flow form Operating activity
710,909
1,091,857
743,134
855,471
678,284
750,921
1,174,840
160,665
763,034
891,171
1,077,699
5,681,500
11,820,434
1,405,506
9,565,226
0
0
0
6,150
6,150
7,050
77,400
785,515
162,295
162,295
4,403,170
Selling & administrative activities Cash inflow Cash outflow
Marketing expenses Organizati on expenses
Cash outflow sell & administrative activity
913,215
169,345
168,445
740,835
169,345
168,445
683,695
169,345
168,445
791,665
168,445
169 ,345
4,480,570
Net cash flow sell & administrative activity
913,215
169,345
168,445
740,835
169,345
168,445
683,695
169,345
168,445
791,665
168,445
-169,345
-4,480,570
0
0
0
0
0
0
0
0
0
0
0
0
0
Building and land
0
0
0
0
0
0
0
0
0
0
0
0
0
Building modifies cost
0
0
0
0
0
0
0
0
0
0
0
0
0
Install telephone
0
0
0
0
0
0
0
0
0
0
0
0
0
Equipment
0
0
0
0
0
0
0
0
0
0
0
0
0
Cash outflow investing activities
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
1,560,000
Net Financing activities
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
-130,000
-1,560,000
Net cash increase or decrease
259,289
961,321
650,356
337,676
590,551
509,851
536,947
556,126
452,476
761,000
592,726
1,106,16 1
3,524,656
Beginning cash
2,313,257
2,053,968
3,015,289
3,665,645
3,327,969
3,918,520
4,428,371
3,891,424
4,447,550
4,900,026
4,139,026
4,731,752
Ending cash
2,053,968
3,015,289
3,665,645
3,327,969
3,918,520
4,428,371
3,891,424
4,447,550
4,900,026
4,139,026
4,731,752
5,837,913
Investing activities Cash inflow Cash outflow
Net cash flow investing activities Financing activities Cash inflow
Borrowing Cash outflow
Interest rate
3,524,656
Best Cera Ceramic Company Limited Statement of Cash Flow Monthly Based for Year 5 Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Total
2,655,900
2,549,000
1,921,600
2,037,000
1,822,100
1,649,800
1,461,600
1,595,800
1,480,400
1,350,700
1,687,400
2,563,500
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
38,805
2,694,705
2,587,805
1,960,405
2,075,805
1,860,905
1,688,605
1,500,405
1,634,605
1,519,205
1,389,505
1,726,205
2,602,305
Purchasing product
721,500
687,500
524,500
556,500
495,500
448,000
397,500
434,500
402,500
368,500
458,000
697,500
Operating expense
1,026,518
196,458
195,558
836,458
196, 458
195,558
742,868
196 ,458
195,558
847,508
195 ,558
196,458
5,021,416
116,682
230,256
160,731
77,106
150,021
131,436
28,685
125,226
112,851
704
135,576
230,931
1,500,205
1,864,700
1,114,214
880,789
1,470,064
830,005
1,473,591
1,079,616
605,741
1,018,926
913,611
331,352
878,421
808,296
0
0
0
0
0
0
0
0
0
0
0
0
0
6,150
7,050
6,150
6,150
7,050
6,150
6,150
7,050
6,150
6,150
6,150
7,050
77,400
993,255
162,295
162,295
803,195
162,295
162,295
709,605
162,295
162,295
814,245
162,295
162,295
4,618,660
999,405
169,345
168,445
809,345
169,345
168,445
715,755
169,345
168,445
820,395
168,445
169,345
4,696,060
Operating activities Cash inflow
Cash sales Depreciation Depreciat ion Cash inflow from operating activity
22,774,800 465,660 23,240,460
Cash outflow
Income tax Cash out flow from operating activity Net cash flow form Operating activity
841,979
774,994
1,169,053
756,184
710,909
1,216,712 172,793
789,134 937,071
1,124,889 1,477,416
6,192,000
12,713,621 10,526,839
Selling & administrative activities Cash inflow Cash outflow
Marketing expenses Organization expenses Cash outflow sell & administrative activity
999,405
169,345
168,445
809,345
169,345
168,445
715,755
169,345
168,445
820,395
168,445
169,345
-4,696,060
0
0
0
0
0
0
0
0
0
0
0
0
0
Building and land
0
0
0
0
0
0
0
0
0
0
0
0
0
Building modifies cost
0
0
0
0
0
0
0
0
0
0
0
0
0
Install telephone
0
0
0
0
0
0
0
0
0
0
0
0
0
Equipment
0
0
0
0
0
0
0
0
0
0
0
0
0
Cash outflow investing activities
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
1,560,000
Net Financing activities
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
-1,560,000
Net cash increase or decrease
299,400
1,174,246
781,171
333,604
719,581
615,166
514,403
579,076
509,851
777,602
638,626
1,178,071
4,270,779
Beginning cash
3,524,656
3,225,256
4,399,502
5,180,673
4,847,069
5,566,650
6,181,816
5,667,413
6,246,489
6,756,340
5,978,738
6,617,364
Ending cash
3,225,256
4,399,502
5,180,673
4,847,069
5,566,650
6,181,816
5,667,413
6,246,489
6,756,340
5,978,738
6,617,364
7,795,435
Net cash flow sell & administrative activity
Investing activities Cash inflow Cash outflow
Net cash flow investing activities
Financing activities Cash inflow
Borrowing Cash outflow
Interest rate
4,270,779
Net Present Value and Internal Rate of Return
Year 1
Year 2
Year 3
Year 4
Year 5
Net Income
4,496,939
5,416,292
6,082,627
7,539,566
8,501,179
Interest rate
12%
12%
12%
12%
12%
NPV
22,277,780.45
Investment
13,000,000
Remainder
9,277,780.45
IRR=
34.77%
Investment
13,000,000
Net Present Value
The detail of Net Present Value (NPV) comes from the table. We have calculated Net Present Value by using 12 % of interest rate at the present with dividend rate for
5
year. So, Net Present Value equal to 22,277,780.45 baht and when we compare with the investment at the
beginning 13,000,000 13,000,000 baht , we can see that value of return from the investment higher than the investment at the beginning about 9,277,780.45 baht . Thus, the decisions making to invest have the worthwhile value. Internal Rate of Return
The Internal Rate of Return (IRR) from the table. We have calculated IRR by using Excel. We found Internal Rate of Return is 34.77%. It means our business get return 34.77% every year. Thus, when we compare IRR with other business, we have high return more than other business.
Chapter 6 Risk Management Business Risk Analysis
A business risk is a circumstance or factor that may have a negative impact on the operation or profitability of a given company. Sometimes referred to as company risk, a business risk can be the result of internal conditions, as well as some external factors that may be evident in the wider business community. Nowadays, many businesses around the world have been faced economy problem. Because of price of gasoline increase, then each company 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 stressed the importance of risk management whereby the Chairman has assigned the Finance Committee to specify the extent and policy in risk management. The Company has also teamed up with the chairman and manager to arrange the meeting every six months to decide and appraise risks which may arise both from internal and external factors of the business. In June and December, the Company has prepared reports on the outcome of the risk assessment of each division of the Company in order to work out preventive measures and risk management as well as the guidelines in managing and administering the risks to acceptable level. 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, the risk from market liberalization. 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. 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 Lampang, Rights and benefits of tax Lampang 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 Lampang achieve goals. Public policy is committee for provid business development roads and tourism. To create guidelines and patterns of land and building drive tourism to occur on the road. Support of the Association of pottery Lampang and operators of ceramics, ceramic shops (outlet) provided on this street the most. The grant and the tax benefits of Lampang Municipality,Intensive support to the investment guidelines and measures, if all communities in Lampang to help the results in practice. Lampang City will no longer have a long road of one business and tourism in the North. Which will help the growth of investment; employment and development strategies in Lampang Province and Travel to the city will achieve the objectives. Economical
Selling ceramic affected continued problems and other political and economic burden of adjustment costs increase and affect the confidence of consumers. It makes real estate in distress and make hard decisions in purchasing power of consumers has also reduced severe competition from goods produced in both countries, together own and imported products, especially from China. Make available ceramic used as construction materials. Bush and flagstone walls and a bathroom down is sales personnel flagstone wall in 2009 is 147.16 million square meters of volume. Sanitary and sales volume down from 3.89 million units last year 2.43 percent and 12.74 respectively, which is subject to market conditions of flagstone. Bush sided with the market based on the old home while repairs to sanitary ware based on the new home market. Which currently are in distress, making the hard sell sanitary ware with rates lower than Bush flagstone wall? Ceramic production and distribution in 2009 was affected by economic problems. Politics and the burden of adjustment cost increases. Affect the confidence of consumers. Real estate business in the slow hard and the power to make buying decisions of consumers are down. The Little flagstone, Although Bush wall affected by the problem of stagnant
conditions in the real estate business, but production will be based primarily on the old home repair market and some of these products to expand export markets. Resulting in production growth this year also increased. But the growth rate decreased from the previous year. Manufacturing sanitary ware will be based on the new home market in the current conditions. Severe distress is affected directly. Making sanitary ware production decreased significantly. For selling ceramic used as construction materials and personnel flagstone but it was affected by conditions in the stagnant real estate hard. In addition to the severe competition from goods produced in countries with friendly and imported products, especially from China. Make available personnel flagstone walls and a bathroom down. For ceramic production and distribution in 2010 are likely to grow up a little. The economic situation in the country in the recovery stage and Operations in 2010 with a budget to stimulate the economy, the Thai government's program will be strong. From the practical results which will cause more flow in the economy. And people are buying more in the export of ceramic products in 2009 was affected by the financial crisis that occurred in the United States and progression to the European Union. Cause the world economic slowdown. Resulting in export products, ceramic products decreased in all major markets including the United States Union America, Europe and Japan for export products, ceramic flat trend in 2010, Because of exports to key markets including the United States, European Union and Japan also can not grow much. Technology
Department of Science Service is research and Experiments in ceramic technology to be develop manufacturing processes and Quality of raw materials and products and also broadcast to the audience. This action of the Department of Science Service helps reinforce basic science and technology performance of the country strong. The Department of Science Service has set guidelines for the research and development, industry and agriculture industries, the stone size and 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 reduce the steps at work cause convenience correct operation of the organization. Working with the Internet is
part of the organization 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 the transportation is efficient. The company has won the trust and confidence of customers. When the move, Transportation and good and on schedule. Infrastructure Because of the company are components of the electronic system Infrastructure 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 operation. Effective and making decisions in operations management are corporate 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 industry The hamburger crisis in the United States has taken a heavy toll on the world‘s financial institutions and the real business sectors, leading to a significant fall in consumer purchasing power not only in the United States but also in Europe and Asia.
Thailand which relies heavily on revenue from ceramic shipments about 270 billion baht is no exception. The global financial crisis brings about intensifying price competition from the players in the ceramic industry both domestic and international markets particularly from China. As a consequence, the industry‘s profitability has significantly dropped. In addition, the price of raw material in ceramic production also saw a surge of up to 25%. The raw material prices experienced a price swing throughout the year. The price swings as a result have prompted the potential buyers to delay their ceramic purchase orders for the entire year. Given such risk factors, the Company have focused on a single market to help our business has a certain position and can develop our market. Thanks to its own brand manufacturing base development, the Company has maintained profitability in the long run with increased efficiency of production cost management. The risk management from competitive in the business
From the problem of economic slow down and the power producer entrepreneur in countries increase more than consume needs. It was resulted in ceramic tile 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 capital. In last year get adjust the machine for lead heat energy comes back can use again therefore the cost of energy economize very much. In year 2550 this a company will develop the products has colors beautiful, new desire format and decrease the capital then 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 and continue to branch company very year. Therefore the company can accept risk management competition in the price of sell. In addition, export markets, the company have not sold because it seriously needs in the country before, if the remaining capacity of the company to expand its exports to increase again.
Risk Factors on Sales and Production
The world‘s economic crisis has triggered a significant delay of purchasing orders in the ceramic sector, price competition and rapidly changing design. It also prompts customer’s world wide to cut their inventories to retain their liquidity. This trend means manufacturers worldwide have to produce their products in a shorter period while maintain quality and controlling production costs. Moreover, customers are increasingly demanding credit lines in a longer term to offset shrinking liquidity or the liquidity constraint in the financial institutions. The Company has pursued a policy to reduce risks from selling and production as follows: •
The Company has diversified price to various for easy to customer’s decision.
•
The Company has its own product design and development center to accommodate changing design demand on the punctual basis.
•
Boosted by a strong financial base, the Company has greater financial flexibility to provide credit lines to each customer with an appropriate term.
Human Resource Risk
Skilled personnel in design, production and innovations in the ceramic industry are by nature relatively limited. Also the new personnel development until they are fully capable of producing affordable quality products with competitive prices in the market will generally take time. In addition the number of skilled and experienced managers in the ceramic industry is still limited compared to the export values of the country’s ceramic which account for one of the Kingdom’s largest export sectors. The Company has pursued a policy to curb the risks potentially arising from human resources as follows: •
The Company has an excellent human resource development unit which handles the process ranging from selection of suitable candidates to position, continuous knowledge and skill development through on-the job training and
theoretical process through human resource development center and key performance indicators both for employees and management. •
The Company is dedicated to retain skilled and experienced personnel who are instrumental to the organization through an appropriate compensation system both in terms of monthly income and other fringe benefits.
•
The Company is committed to human resource development in order to supply new personnel to the ceramic company through financial support and human resource support.
Financial Risk
Financial risk is pertaining to policy and practice financial, technique and management financial system and the investment, such as accounting and reporting. The damage from the arrangement does an account and financial report make a mistake or late. The probability that the business will don't take the reward according to anticipates, financial risk is pertaining to duty making a decision financial investment risk of the executive such as, the making a decision invests in new project, the making a decision about the dividend, the making a decision chooses the proportion of the investment, the making a decision about goods treasury reserve policy, etc. As the Company engages in designing and selling ceramic products to teenager markets, the Company could be subject to teenager’s decision from product pricing and product trend to attractive teenager group to buying. The business is a new business, Should have the knowledge and have experience to start business. Risk avoidance, the business should deny the behavior or abandon the activities that have high risk. Have policy as; product policy, the products of the business that will go out to the market, at least must have acceptance products evidence from target customer and have must to are the products that have done market test already. Financial policy, in the growth of the business must have the stability by consider the growth from the profit of the business, and if the business has the necessity must build a debt, must consider the ability in the settlement is first.
Risk Factors on Information
As a result of information technology advancement and growing contacts with customers through the Internet, the 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 the Company‘s important database used routinely run the Company’s administration. The Company has pursued policy to curb the potential risks from information technology as follows: •
Installation of firewall systems to prevent access from unauthorized users.
•
Efficient control the access into the Company’s information network and inspect the system on the regular basis.
•
State-of-the-art data backup information system as well as data recovery and data security systems.
Credit risk
The company has credit risk associated with trade receivables by the company has a policy of credit as a precaution and a variety of customers. The number may have lost most of the credit will equal the value of the account receivable in the balance sheet. 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 and its subsidiaries expect the impact of interest rate changes will be higher that no substance to interest expense because the company used loan in the country. And a short-term borrowing, which have interest rates lower than long-term loans at an interest rate based on the financial markets. Foreign currency Risk
The company expects no impact from exchange rate material because the company does not borrow from abroad. But the company and its subsidiaries are subject to risks from foreign currency exchange rates because the company and its subsidiaries are creditors and
trade creditors of foreign in U.S. and Euros currency. However, the company plans to reduce this risk. The surveys find new domestic sources of raw material and nearby neighbors. And contract pricing by trading in fixed period of time. In addition, research and development about renewable raw materials is cheaper than to be used in the production process. Risks from imported ceramic tiles from abroad
In the past time, some agent and retailer of tile floor and bush walls product ordered direct ceramic floor tiles from China, which is cheaper to sell in the shop that result to orders for goods from domestic producers decreased. In this issue has not affected much because goods imported as flagstone surface species on sale in market high market is not group companies. If the imported goods the same type of production to sales can not compete with production costs of the company. Because when combined shipping cost will go higher than that produced in the country In addition to stock a variety of patterns. However, due to its internal control system to track results to differ from the plan or stated objectives that allow management to manage risks that may occur with time. It also has an administrative committee meeting regularly to review and adjust the standard plan to reduce risk of business and to comply with the situation in each period.
Chapter 7 Feasibility Analysis Summary Introduction Analysis Summary
In now days, the ceramic products are more important in markets around the world. Most people in the world took it to their daily lives and cannot live it out. In Thailand there are many ceramic industries and workshops. It is one of tops ceramic exporting in the world especially northern of Thailand, at Lampang province. There are many ceramic industries, and it is the most 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. Best Ce Ra Ceramic Company limited is the name of company and Best Ce Ra Design is a short name that it is easily for memorizing. We focus in establishing the company at Lampang province especially on the Wiang la kon road. We focus on creating a new design to ceramic products. It is likely the ceramics center, we creates a lot of various designs to ceramic products such as decoration and gifts. The company no needs to establish
any
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 Best Ce Ra Design. Industry Profile Analysis Summary
Ceramics have been fired in Thailand since prehistoric times, with old ceramic finds covering much of northern and eastern Thailand. Thai Ceramics actually begins with the Khmer Empire of the last millennium in what is modern-day Cambodia and eastern Thailand. When China experienced an internal crisis in the 15th century, it opened the door for Thai ceramics to take over the Asian market. Lampang is one of the most important ceramic producers in the north of Thailand. Ceramics in Lampang was originated when a villager from the Jae-Hom district found a whetstone which was made from Kaolinite (white clay). In 1967-1969, there was a change in economics and demand structure. The Department of Science began to pay more attention to ceramics from Lampang. They held several events such as ceramic competitions, more support for small scale factories, and seminars on ceramics to motivate the owner to go
abroad to gain more experience. Today, the ceramic factories in Lampang range from small to large scale. There are about 30 factories for medium to large scale numbering from 100600 in labor force per factory. There are about 120 factories for small scale with 10-80 in labor force per factory. This generates a cash flow into the province of at least 2,000 million baht per year. Marketing Feasibility Analysis Summary
According to the economy depression, many products of ceramics are decreasing in sell, but are not likely to more. The products that tend to invest are gift and decorations that under the general market. Although that it is not more affect to Best Ce Ra because the tendency of design is different with others competitors ceramic products in the market, especially Wiang la kon road, Lampang because there are many buyers came to this place for buying gifts and decoration that with the different of design able to let customers go into the store and buy many products. Moreover, other types of Best Ce Ra products also strike many consumer eyes with the design of products too. In the company area there is no one any direct competitor, but we found only one that is our indirect competitor and able to let many teenager buying their products. It is JaiKo gift shop store, a new gift shop store in Lampang province. The store was established at in front of Boonyawat school that near our company about 2 kilometers. They have use pink ribbon for their store symbol. And there are some ceramic factories that we focus on and try to make the plan for protect like K.K. Ceramics, Indra Ceramic, Saengchai Ceramics, Dhanabadee Art Ceramic, B.P.C Ceramics, and Kasalong Ceramics. The teenager (age between 13-25 years old) in many schools around the area at Mueang, Lampang we found that there are around ten schools and the number of customer is around 33,115, and total Lampang teenager size is 676,214. For teenagers they favor the ceramic product too, but less design in supporting, they need the ceramic product designs that different from the market and run forward with trended of modern. The design that they interested in is beautiful looking and the style that likely famous in teenage concept. The different point of products design, we focus to produce the product according to our own designs that there are three concept designs to our gift and decoration for teenager group of customers. We try to study about many companies products and create Best Ce Ra
own design, we add the fragrant into the product that is the main point of our products that 100% are not same with any ceramic companies in Lampang province. Technical Feasibility Study Analysis Summary
The products of Best Ce Ra Ceramic 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 Best Ce Ra Ceramic Company limited. Best Ce Ra focus on three styles of design concept, there are green design, love design, and animal concept design. The entire product designs that we try to fix on the products shapes and follow the modern trend in nowadays customer favors. Best Ce Ra creates these designs for two main of products are decorations and gifts. Besides, there is a point that different from others it is fragrance, all of the products that we have inserts fragrance that like fresh nature into the products. We choose K.K. Ceramics Company to produce for our product and Asia Paper Bag Company to produce the bag and boxed. From study about production and operation of Best Ce Ra business we foresee to build this business because of we have ready staff that right job, right time and right people. Financial Analysis Summary Income statement
For income statement, we consider from previous data of market average to use as basic information to estimate income and expense that we will receive in each year. We are estimate about 5 years by we use financial assumption and other financial policy and we can see the net income of our company increasing in every year in the chart especially in year 3-4 we get net income from 8,501,179 baht or 65% from cost of investment. In the graph, we can sell a lot of ceramics product in January, February, November and December because these months have special day. For example, In December and January have New Year day, in February has Valentine day. It makes net profits of in January, February, November and December are higher than other months. In April, July and October has less income because these months are low season and we have more expense. It will make net profit in April, July and October are less than others months. Cash Flow
In cash flow part, the estimate actual income in the year that how much company receives and expense by using financial hypothesis and financial policy abovementioned and we can see the current assets increasing in every year and that is show the liquidity of cash flow have high because we have cash more the current liability in each year. Then we can spend a lot of money to purchase ceramics product by not have a problem.Balance Sheet In balance sheet part include the data of asset, debt share and owner in period year end that how much it is. The balance sheet takes the data cash flow income statement to
calculation. In the line of balance sheet this graph shows the value of equity that will increase in every year and liabilities of our company will steadily which in five year. Payback Period: 8.5 years Net Present Value (NPV)
The detail of Net Present Value (NPV) comes from the table. We have calculated Net Present Value by using 12 % of interest rate at the present with dividend rate for 5 year. So, Net Present Value equal to 22,277,780.45 baht and when we compare with the investment at the beginning 13,000,000 baht , we can see that value of return from the investment higher than the investment at the beginning about 9,277,780.45 baht . Thus, the decisions making to invest have the worthwhile value. Rate of Return on Investment (IRR)
The Internal Rate of Return (IRR) from the table. We have calculated IRR by using Excel. We found Internal Rate of Return is 34.77%. It means our business get return 34.77% every year. Thus, when we compare IRR with other business, we have high return more than other business. Risk Management Analysis Summary
Risk analysis is tool for manager and accessory in project, because of it can help specify that barrier to project incomplete. Both of side schedule error, expenses, and project end. Risk analysis are causes initial seeking and assess a problem, improve practice follows the plan operates appropriately, and following up the risk management. Risk analysis and administration project are the procedure can analysis, and manage the risk that related to with project, thus operate is appropriately help project to completely both of expenses side, time and practice succeed to follow the objective, Risk analysis and management project are the procedure that design to decrease the risk that menace success of the project is efficiently. Ceramic business have the risk in all side, financial, management, the risk from external environment, risk that the business cannot control, or new entry to competition. In part financial, if the business is increase expenses, an advertisement for encourage the sale, or freight, affect to the 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 operating and can happen to every kind business. Risk management helps business to achieve, while decrease barrier that may be happen both of the profit and operation. Protect damage to resource of the business and create the confidence in management.
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