Project feasibility Study and Evaluation .Best Ce Ra Ceramic Company. Mae Fah Luang University (MFU)...
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Project feasibility Study and Evaluation .Best Ce Ra Ceramic Company. Mae Fah Luang University (MFU) 2010.
Transcript of Project feasibility Study and Evaluation .Best Ce Ra Ceramic Company. Mae Fah Luang University (MFU)...
Present
Aj. Chaiyawat Thongintr
By
1. Miss Photchaman Thawong ID: 4931203064
2. Mr. Phoonsub Mangkalad ID: 4931203076
3. Miss Piyamas Vipusattaya ID: 4931203188
4. Miss Waranya Yuensanhan ID: 4931203200
5. Miss Sadudee Jirawanich ID: 4931203212
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 Quarter 3 Quarter 4 Quarter 1
Project step:
Ap
r
Ma
y
Ju
n Jul
Au
g
Se
p
Oc
t
No
v
De
c
Ja
n
Fe
b
Ma
r
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
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). 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, bio-
medical 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,
stem plates
Tobacco pipes, Water
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 high-
quality 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
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
Jaiko gift shop store inside condition
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 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
1. No education 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
5. High school 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
6. University 77,229 36,322 40,908
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.
Styles Products Code Price
(Baht per piece)
Green design Flowerpot GDF00001 155
GDF00002 155
GDF00003 125
GDF00004 125
Styles Products Code Price
(Baht per piece)
Green design Flowerpot GDF00005 185
GDF00006 225
GDF00007 185
Wall / alarm clock GDW00001 265
GDW00002 255
GDW00003 315
GDW00004 265
GDW00005 255
Picture frame GDP00001 195
GDP00002 175
GDP00003 175
GDP00004 185
Deck lamp GDD00001 395
GDD00002 325
GDD00003 325
GDD00004 355
Vase GDV00001 185
GDV00002 185
GDV00003 215
GDV00004 185
GDV00005 215
Glass GDG00001 125
GDG00002 85
GDG00003 55
Plate show GDS00001 95
Key ring GDK00001 15
GDK00002 15
GDK00003 15
Styles Products Code Price
(Baht per piece)
Love design Flowerpot LDF00001 225
LDF00002 145
LDF00003 125
Picture frame LDP00001 125
LDP00002 185
LDP00003 215
Desk lamp LDD00001 295
LDD00002 325
LDD00003 225
Vase LDV00001 225
LDV00002 185
LDV00003 95
Glass LDG00001 105
LDG00002 125
LDG00003 105
Styles Products Code Price
(Baht per piece)
Animal design Vase ADV00001 295
Flowerpot ADF00001 295
ADF00002 295
ADF00003 295
Glass ADF00001 95
ADF00002 95
ADF00003 95
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 Pictures
Price (Baht per
piece)
Green design Flowerpot GDF00001
155
Styles Gift and Code Pictures Price (Baht per
Decoration piece)
Green design Flowerpot GDF00002
155
GDF00003
125
GDF00004
125
GDF00005
185
GDF00006
225
GDF00007
185
Styles Gift and
Decoration Code Pictures
Price (Baht per
piece)
Green design Wall / alarm
clock GDW00001
265
GDW00002
255
GDW00003
315
GDW00004
265
GDW00005
255
Green design Picture frame GDP00001
195
Styles Gift and
Decoration Code Pictures
Price (Baht per
piece)
Green design Picture frame GDP00002
175
GDP00003
175
GDP00004
185
Green design Deck lamp GDD00001
395
GDD00002
325
GDD00003
325
Styles Gift and
Decoration Code Pictures
Price (Baht per
piece)
Green design Deck lamp GDD00004
355
Green design Vase GDV00001
185
GDV00002
185
GDV00003
215
GDV00004
185
GDV00005
215
Styles Gift and
Decoration Code Pictures
Price (Baht per
piece)
Green design Glass GDG00001
125
GDG00002
85
GDG00003
55
Green design Plate show GDS00001
95
Green design Key ring GDK00001
15
GDK00002
15
Styles Gift and
Decoration Code Pictures
Price (Baht per
piece)
Green design Key ring GDK00003
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 Gift and
Decoration Code Pictures
Price (Baht per
piece)
Love design Flowerpot LDF00001
225
LDF00002
145
LDF00003
125
Styles Gift and
Decoration Code Pictures
Price (Baht per
piece)
Love design Picture frame LDP00001
125
LDP00002
185
LDP00003
215
Love design Desk lamp LDD00001
295
LDD00002
325
LDD00003
225
Styles Gift and
Decoration Code Pictures
Price (Baht per
piece)
Love design Vase LDV00001
225
LDV00002
185
LDV00003
95
Love design Glass 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 Gift and
Decoration Code Pictures
Price (Baht per
piece)
Animal
design Vase ADV00001
295
Animal
design Flowerpot ADF00001
295
ADF00002
295
ADF00003
295
Animal
design Glass ADF00001
95
Styles Gift and
Decoration Code Pictures
Price (Baht per
piece)
Animal
design Glass 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 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. 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
Animal
design 120.75 110 99.75 89 68
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
Animal
design 126.5 115.5 104.5 94 72
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 I04 I05
size(cm.) 15x8x17 20x9x18 26x10x23 33x12x27 44x15x38
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 15x10x15cm
(Baht/pc.)
25x25x20 cm
(Baht/pc.)
60x45x50 cm
(Baht/pc.)
Less than 500 pieces 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 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
No. of Bag 17,400.00 - - 16,200.00 - - 20,400.00 - - 23,600.00 - - 77,600.00
Baht per piece 10.00 - - 10.00 - - 10.00 - - 10.00 - -
Cost of Bag 174,000.00 - - 162,000.00 - - 204,000.00 - - 236,000.00 - - 776,000.00
No. of Small box 8,700.00 - - 8,100.00 - - 10,200.00 - - 11,800.00 - - 38,800.00
Baht per piece 5.00 - - 5.00 - - 5.00 - - 5.00 - -
Cost of box 43,500.00 - - 40,500.00 - - 51,000.00 - - 59,000.00 - - 194,000.00
No. of Middle box 5,220.00 - - 4,860.00 - - 6,120.00 - - 7,080.00 - - 23,280.00
Baht per piece 12.00 - - 14.00 - - 12.00 - - 12.00 - -
Cost of box 62,640.00 - - 68,040.00 - - 73,440.00 - - 84,960.00 - - 289,080.00
No. of Large box 3,480 - - 3,240 - - 4,080 - - 4,720 - - 15,520
Baht per piece 34.00 - - 34.00 - - 34.00 - - 34.00 - -
Cost of large box 118,320.00 - - 110,160.00 - - 138,720.00 - - 160,480.00 - - 527,680.00
Total of month 398,460.00 - - 380,700.00 - - 467,160.00 - - 540,440.00 - - 1,786,760.00
\
Year 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
No. of Bag 28,400 - - 21,900 - - 16,400 - - 22,000 - - 88,700
Baht per piece 10.00 - - 10.00 - - 10.00 - - 10.00 - -
Cost of Bag 284,000.00 - - 219,000.00 - - 164,000.00 - - 220,000.00 - - 887,000.00
No. of Small box 14,200 - - 10,950 - - 8,200 - - 11,000 - - 44,350
Baht per piece 5.00 - - 5.00 - - 5.00 - - 5.00 - -
Cost of box 71,000.00 - - 54,750.00 - - 41,000.00 - - 55,000.00 - - 221,750.00
No. of Middle box 8,520 - - 6,570 - - 4,920 - - 6,600 - - 26,610
Baht per piece 12.00 - - 12.00 - - 14.00 - - 12.00 - -
Cost of box 102,240.00 - - 78,840.00 - - 68,880.00 - - 79,200.00 - - 329,160.00
No. of Large box 5,680 - - 4,380 - - 3,280 - - 4,400 - - 17,740
Baht per piece 30.00 34.00 34.00 34.00
Cost of Large box 170,400.00 - - 148,920.00 - - 111,520.00 - - 149,600.00 - - 580,440.00
Total of month 627,640.00 - - 501,510.00 - - 385,400.00 - - 503,800.00 - - 2,018,350.00
Year 3 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
No. of Bag 31,200.00 - - 22,900.00 - - 19,000.00 - - 24,500.00 - - 97,600.00
Baht per piece 10.00 - - 10.00 - - 10.00 - - 10.00 - -
Cost of Bag 312,000.00 - - 229,000.00 - - 190,000.00 - - 245,000.00 - - 976,000.00
No. of Small box 15,600.00 - - 11,450.00 - - 9,500.00 - - 12,250.00 - - 48,800.00
Baht per piece 5.00 - - 5.00 - - 5.00 - - 5.00 - -
Cost of box 78,000.00 - - 57,250.00 - - 47,500.00 - - 61,250.00 - - 244,000.00
No. of Middle box 9,360.00 - - 6,870.00 - - 5,700.00 - - 7,350.00 - - 29,280.00
Baht per piece 12.00 - - 12.00 - - 12.00 - - 12.00 - -
Cost of box 112,320.00 - - 82,440.00 - - 68,400.00 - - 88,200.00 - - 351,360.00
No. of Large box 6,240 - - 4,580 - - 3,800 - - 4,900 - - 19,520
Baht per piece 30.00 - - 34.00 - - 34.00 - - 34.00 - -
Cost of large box 187,200.00 - - 155,720.00 - - 129,200.00 - - 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
Year 4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
No. of Bag 33,700.00 - - 25,900.00 - - 22,500.00 - - 28,200.00 - - 110,300.00
Baht per piece 10.00 - - 10.00 - - 10.00 - - 10.00 - -
Cost of Bag 337,000.00 - - 259,000.00 - - 225,000.00 - - 282,000.00 - - 1,103,000.00
No. of Small box 16,850.00 - - 12,950.00 - - 11,250.00 - - 14,100.00 - - 55,150.00
Baht per piece 5.00 - - 5.00 - - 5.00 - - 5.00 - -
Cost of box 84,250.00 - - 64,750.00 - - 56,250.00 - - 70,500.00 - - 275,750.00
No. of Middle box 10,110.00 - - 7,770.00 - - 6,750.00 - - 8,460.00 - - 33,090.00
Baht per piece 12.00 - - 12.00 - - 12.00 - - 12.00 - -
Cost of box 121,320.00 - - 93,240.00 - - 81,000.00 - - 101,520.00 - - 397,080.00
No. of Large box 6,740 - - 5,180 - - 4,500 - - 5,640 - - 22,060
Baht per piece 30.00 - - 30.00 - - 34.00 - - 30.00 - -
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
Year 5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
No. of Bag 37,600.00 - - 29,000.00 - - 23,900.00 - - 29,500.00 - - 120,000.00
Baht per piece 10.00 - - 10.00 - - 10.00 - - 10.00 - -
Cost of Bag 376,000.00 - - 290,000.00 - - 239,000.00 - - 295,000.00 - - 1,200,000.00
No. of Small box 18,800.00 - - 14,500.00 - - 11,950.00 - - 14,750.00 - - 60,000.00
Baht per piece 5.00 - - 5.00 - - 5.00 - - 5.00 - -
Cost of box 94,000.00 - - 72,500.00 - - 59,750.00 - - 73,750.00 - - 300,000.00
No. of Middle box 11,280.00 - - 8,700.00 - - 7,170.00 - - 8,850.00 - - 36,000.00
Baht per piece 12.00 - - 12.00 - - 12.00 - - 12.00 - -
Cost of box 135,360.00 - - 104,400.00 - - 86,040.00 - - 106,200.00 - - 432,000.00
No. of Large box 7,520 - - 5,800 - - 4,780 - - 5,900 - - 24,000
Baht per piece 30.00 - - 30.00 - - 34.00 - - 30.00 - -
Cost of large box 225,600.00 - - 174,000.00 - - 162,520.00 - - 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
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
Second floor
12 M
8 M
Store
Living area
Product
Showing
Cashier
12 M
8 M
Design room
Living room
Marketing
room
Purchases
room
HR room
Last floor
Chair man
Office Meeting
room
Finance
Acc
Sale
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-RJ2608-
08SET image together with sound with Pocket Pc and mobile (IE Browser/CMS)
including taxes
- Price 47,000 baht
Printer
- Photosmart C3180 Price 3,740 baht
- Hp Photosmart C3180 Printer/ Copier/ Scanner Intel: Hp Photosmart C3180 All-
In-One
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
Period of using water
(liter/month)
Type of user
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
(Baht/Unit)
Service fee
(Baht/Month)
2.1.1 Pressure 22-33 K.W. 2.4649 228.17
2.1.2 Pressure less than 22 K.W.
40.90
150 first unit (�������� 0-150) 1.8047
250 next unit (�������� 151-400) 2.7781
More than 400 (unit 401 and more) 2.9780
2.2 (Time of Use Rate : TOU)
Energy charge
(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
Price/Unit Unit Total
Commercial building and land (3 rolls) 3,500,000 3 10,500,000 Baht
Building modifies cost (288square metres) 1,500 288 432,000 Baht
From package of contractor
Install telephone 2,499 1 2,499 Baht
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
Counter desk 23,915 1 23,915 Baht
Sofa suit 1suit
Single sofa 1,764 4 7056 Baht
Table in sofa suit 1,100 1 1,100 Baht
Table for meeting room 15,000 1 15,000 Baht
Document cabinet 2,800 8 22,400 Baht
White board 1,650 1 1,650 Baht
Cashier equipment set
Scanner barcode laser 5,000 1 5,000 Baht
Input cash electronic 3,300 1 3,300 Baht
Smart bill S-4000 15,000 1 15,000 Baht
Telephone 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
Vinyl front lit (60 Square meters) 120 60 7,200 Baht
Total 814,668 Baht
Total Investment cost 11,749,167 Baht
Investment Amount Depreciation Annual Dep. Monthly Dep.
Commercial
building
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
equipment set
23,300 3 Years 7,767 647
Vinyl front lit 7,200 3 Years 2,400 200
Depreciation Year 1
Investment Amount 1 2 3 4 5 6 7 8 9 10 11 12 Total
Total
amount
Commercial building and land
4,932,000
20,550
20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 246,600 246,600
Security
47,000
783 783 783 783 783 783 783 783 783 783 783 783 9,396 9,396
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 69,360
Computer
235,000
6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 78,336 78,336
Telephone
10,680
297 297 297 297 297 297 297 297 297 297 297 297 3,564 3,564
Printer
7,480
208 208 208 208 208 208 208 208 208 208 208 208 2,496 2,496
Furniture
129,628
3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 43,212 43,212
Fax Machine
7,580
211 211 211 211 211 211 211 211 211 211 211 211 2,532 2,532
Cashier equipment set
23,300
647 647 647 647 647 647 647 647 647 647 647 647 7,764 7,764 Vinyl front lit
7,200
200 200 200 200 200 200 200 200 200 200 200 200 2,400 2,400
Total 5,746,668 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 465,660 465,660
Depreciation Year 2
Investment Amount 1 2 3 4 5 6 7 8 9 10 11 12 Total
Total
amount
Commercial building and land
4,932,000
20,550
20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 246,600 493,200
Security
47,000
783 783 783 783 783 783 783 783 783 783 783 783 9,396 18,792
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 69,360 138,720
Computer
235,000
6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 78,336 156,672
Telephone
10,680
297 297 297 297 297 297 297 297 297 297 297 297 3,564 7,128
Printer
7,480
208 208 208 208 208 208 208 208 208 208 208 208 2,496 4,992
Furniture
129,628
3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 43,212 86,424
Fax Machine
7,580
211 211 211 211 211 211 211 211 211 211 211 211 2,532 5,064
Cashier equipment set
23,300
647 647 647 647 647 647 647 647 647 647 647 647 7,764 15,528 Vinyl front lit
7,200
200 200 200 200 200 200 200 200 200 200 200 200 2,400 4,800
Total 5,746,668 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 465,660 931,320
Depreciation Year 3
Investment Amount 1 2 3 4 5 6 7 8 9 10 11 12 Total
Total
amount
Commercial building and land
4,932,000
20,550
20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 246,600 739,800
Security
47,000
783 783 783 783 783 783 783 783 783 783 783 783 9,396 28,188
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 69,360 208,080
Computer
235,000
6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 78,336 235,008
Telephone
10,680
297 297 297 297 297 297 297 297 297 297 297 297 3,564 10,692
Printer
7,480
208 208 208 208 208 208 208 208 208 208 208 208 2,496 7,488
Furniture
129,628
3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 43,212 129,636
Fax Machine
7,580
211 211 211 211 211 211 211 211 211 211 211 211 2,532 7,596
Cashier equipment set
23,300
647 647 647 647 647 647 647 647 647 647 647 647 7,764 23,292 Vinyl front lit
7,200
200 200 200 200 200 200 200 200 200 200 200 200 2,400 7,200
Total 5,746,668 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 1,396,980
Depreciation Year 4
Investment Amount 1 2 3 4 5 6 7 8 9 10 11 12 Total
Total
amount
Commercial building and land
4,932,000
20,550
20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 246,600 986,400
Security
47,000
783 783 783 783 783 783 783 783 783 783 783 783 9,396 37,584
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 69,360 277,440
Computer
235,000
- 0 0 0 0 0 0 0 0 0 0 0 0 235,008
Telephone
10,680
- 0 0 0 0 0 0 0 0 0 0 0 0 0
Printer
7,480
- 0 0 0 0 0 0 0 0 0 0 0 0 0
Furniture
129,628
- 0 0 0 0 0 0 0 0 0 0 0 0 0
Fax Machine
7,580
- 0 0 0 0 0 0 0 0 0 0 0 0 0
Cashier equipment set
23,300
- 0 0 0 0 0 0 0 0 0 0 0 0 0 Vinyl front lit
7,200
- 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 5,746,668 27,113 27,113 27,113 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 Amount 1 2 3 4 5 6 7 8 9 10 11 12 Total
Total
amount
Commercial building and land
4,932,000
20,550
20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550
246,600 1,233,000
Security
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
Printer
7,480
- 0 0 0 0 0 0 0 0 0 0 0 0 0
Furniture
129,628
- 0 0 0 0 0 0 0 0 0 0 0 0 0
Fax Machine
7,580
- 0 0 0 0 0 0 0 0 0 0 0 0 0 Cashier equipment set
23,300
- 0 0 0 0 0 0 0 0 0 0 0 0 0
Vinyl front lit 7,200
- 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 5,746,668 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 325,356 1,626,780
Organization expense year 1
Description 1 2 3 4 5 6 7 8 9 10 11 12 Total
Salary 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
Telephone 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
Water price 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
Electronic price 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
Box and Paper bag
cost 290,350 - - 312,840 - - 293,560 - - 387,740 - - 1,284,490
Total 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
Organization expense year 2
Description 1 2 3 4 5 6 7 8 9 10 11 12 Total
Salary 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
Telephone
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
Water price 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
Electronic
price 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
Box and
Paper bag
cost
527,960 - - 440,650 - - 358,240 - - 459,600 - - 1,786,450
Total 690,255 162,295 162,295 602,945 162,295 162,295 520,535 162,295 162,295 621,895 162,295 162,295 3,733,988
Organization expense year 3
Description 1 2 3 4 5 6 7 8 9 10 11 12 Total
Salary 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
Telephone
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
Water price 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
Electronic
price 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
Box and
Paper bag
cost 689,520 - - 524,410 - - 435,100 - - 561,050 - - 2,210,080
Total 851,815 162,295 162,295 686,705 162,295 162,295 597,395 162,295 162,295 723,345 162,295 162,295 4,157,618
Organization expense year 4
Description 1 2 3 4 5 6 7 8 9 10 11 12 Total
Salary 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
Telephone 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
Water price 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
Electronic price 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
Box and Paper bag
cost 744,770 - - 572,390 - - 515,250 - - 623,220 - - 2,455,630
Total 907,065 162,295 162,295 734,685 162,295 162,295 677,545 162,295 162,295 785,515 162,295 162,295 4,403,168
Organization expense year 5
Description 1 2 3 4 5 6 7 8 9 10 11 12 Total
Salary 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
Telephone 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
Water price 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
Electronic price 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
Box and Paper
bag cost 830,960 - - 640,900 - - 547,310 - - 651,950 - - 2,671,120
Total 993,255 162,295 162,295 803,195 162,295 162,295 709,605 162,295 162,295 814,245 162,295 162,295 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 May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
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 1,386,200 1,948,900 14,679,100
Net 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 1,386,200 1,948,900 14,679,100
Cost of Goods Sold
Cost of Goods Sold 322,500 344,000 270,500 321,500 259,500 294,500 299,500 383,000 347,500 306,500 377,000 527,500 4,053,500
Gross Profit 820,800 894,300 685,100 805,900 597,900 753,500 813,300 1,057,800 938,400 828,000 1,009,200 1,421,400 10,625,600
Expenses
Organization Expense 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 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 15,452 100,793 162,488 793,577
Net Income 164,220 472,728 295,673 132,439 220,788 353,813 155,117 611,703 510,978 87,559 571,158 920,763 4,496,935
Retained earnings beginning of the months
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
Retained earnings 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
Best Cera Ceramic Company Limited
Income Statement
Monthly Based for Year 2
Second Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
Sales 2,064,300 1,919,800 1,382,200 1,577,000 1,382,200 1,191,900 982,800 1,098,200 1,021,700 964,000 1,344,600 1,858,900 16,787,600
Net sales 2,064,300 1,919,800 1,382,200 1,577,000 1,382,200 1,191,900 982,800 1,098,200 1,021,700 964,000 1,344,600 1,858,900 16,787,600
Cost of Goods Sold
Cost of Goods Sold 559,500 515,500 374,500 429,500 374,500 322,500 265,500 297,500 276,500 260,500 364,500 505,000 4,545,500
Gross Profit 1,504,800 1,404,300 1,007,700 1,147,500 1,007,700 869,400 717,300 800,700 745,200 703,500 980,100 1,353,900 12,242,100
Expenses
Organization Expense 690,255 162,295 162,295 602,945 162,295 162,295 520,535 162,295 162,295 621,895 162,295 162,295 3,733,988
Depreciation 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 735,210 208,150 207,250 647,900 208,150 207,250 565,490 208,150 207,250 666,850 207,250 208,150 4,277,048
Operating Income 769,590 1,196,150 800,450 499,600 799,550 662,150 151,810 592,550 537,950 36,650 772,850 1,145,750 7,965,052
(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 639,590 1,066,150 670,450 369,600 669,550 532,150 21,810 462,550 407,950 - 93,350 642,850 1,015,750 6,405,052
(Less income tax expense) 95,939 159,923 100,568 55,440 100,433 79,823 3,272 69,383 61,193 14,003 96,428 152,363 960,758
Net Income 543,652 906,228 569,883 314,160 569,118 452,328 18,539 393,168 346,758 - 107,353 546,423 863,388 5,444,294
Retained earnings beginning of the months 3,576,171 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 7,582,648 8,129,071
Retained earnings 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 7,582,648 8,129,071 8,992,458
Best Cera Ceramic Company Limited
Income Statement
Monthly Based for Year 3
Third Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
Sales 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 18,452,900
Net sales 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 18,452,900
Cost of Goods Sold
Cost of Goods Sold 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
Gross Profit 1,657,500 1,543,500 1,105,500 1,217,700 1,049,400 897,000 785,700 979,200 854,400 757,500 1,033,500 1,585,500 13,466,400
Expenses
Organization Expense 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
Depreciation 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 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
Operating Income 760,730 1,335,350 898,250 486,040 841,250 689,750 143,350 771,050 647,150 - 10,800 826,250 1,377,350 8,765,720
(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 630,730 1,205,350 768,250 356,040 711,250 559,750 13,350 641,050 517,150 - 140,800 696,250 1,247,350 7,205,720
(Less income tax expense) 94,610 180,803 115,238 53,406 106,688 83,963 2,003 96,158 77,573 21,120 104,438 187,103 1,080,858
Net Income 536,121 1,024,548 653,013 302,634 604,563 475,788 11,348 544,893 439,578 - 161,920 591,813 1,060,248 6,124,862
Retained earnings beginning of the months 8,992,458 9,528,579 10,553,126 11,206,139 11,508,773 12,113,335 12,589,123 12,600,470 13,145,363 13,584,940 13,423,020 14,014,833
Retained earnings 9,528,579 10,553,126 11,206,139 11,508,773 12,113,335 12,589,123 12,600,470 13,145,363 13,584,940 13,423,020 14,014,833 15,075,080
Best Cera Ceramic Company Limited
Income Statement
Monthly Based for Year 4
Fourth Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
Sales 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 20,920,000
Net sales 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 20,920,000
Cost of Goods Sold
Cost of Goods Sold 665,000 591,500 463,000 495,000 439,000 402,500 362,000 425,500 380,000 355,000 440,000 663,000 5,681,500
Gross Profit 1,794,000 1,611,000 1,243,200 1,326,600 1,174,800 1,077,900 967,800 1,134,300 1,010,400 941,700 1,175,400 1,781,400 15,238,500
Expenses
Organization Expense 907,065 162,295 162,295 734,685 162,295 162,295 677,545 162,295 162,295 785,515 162,295 162,295 4,403,168
Depreciation 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 325,356
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 940,328 196,458 195,558 767,948 196,458 195,558 710,808 196,458 195,558 818,778 195,558 196,458 4,805,924
Operating Income 853,672 1,414,542 1,047,642 558,652 978,342 882,342 256,992 937,842 814,842 122,922 979,842 1,584,942 10,432,576
(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 723,672 1,284,542 917,642 428,652 848,342 752,342 126,992 807,842 684,842 - 7,078 849,842 1,454,942 8,872,576
(Less income tax expense) 108,551 192,681 137,646 64,298 127,251 112,851 19,049 121,176 102,726 1,062 127,476 218,241 1,330,886
Net Income 615,121 1,091,861 779,996 364,354 721,091 639,491 107,943 686,666 582,116 - 8,140 722,366 1,236,701 7,541,690
Retained earnings beginning of the months 1,060,248 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 6,640,745 7,363,111
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 6,640,745 7,363,111 8,599,812
est Cera Ceramic Company Limited
Income Statement
Monthly Based for Year 5
Fifth Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
Sales 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 22,774,800
Net sales 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 22,774,800
Cost of Goods Sold
Cost of Goods Sold 721,500 687,500 524,500 556,500 495,500 448,000 397,500 434,500 402,500 368,500 458,000 697,500 6,192,000
Gross Profit 1,934,400 1,861,500 1,397,100 1,480,500 1,326,600 1,201,800 1,064,100 1,161,300 1,077,900 982,200 1,229,400 1,866,000 16,582,800
Expenses
Organization Expense 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
Depreciation 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 325,356
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 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
Operating Income 907,882 1,665,042 1,201,542 644,042 1,130,142 1,006,242 321,232 964,842 882,342 134,692 1,033,842 1,669,542 11,561,384
(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 777,882 1,535,042 1,071,542 514,042 1,000,142 876,242 191,232 834,842 752,342 4,692 903,842 1,539,542 10,001,384
(Less income tax expense) 116,682 230,256 160,731 77,106 150,021 131,436 28,685 125,226 112,851 704 135,576 230,931 1,500,208
Net Income 661,200 1,304,786 910,811 436,936 850,121 744,806 162,547 709,616 639,491 3,988 768,266 1,308,611 8,501,176
Retained earnings beginning of the months 1,236,701 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
Retained earnings 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
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 Feb 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
Total current assets 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
Fix assets
Equipment 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668
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
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
Liabilities and equity
Liabilities
Current liabilities
Taxes payable 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
Total current liabilities 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
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 13,193,200 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
Equity
Retained earnings 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
Total equity 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
Total liabilities and equity 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
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
Total current assets
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
Fix assets
Equipment
814,668
814,668
814,668
814,668
814,668
814,668
814,668
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
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
Liabilities and equity
Liabilities
Current liabilities
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
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
Equity
Retained earnings 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
Total equity
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
Total liabilities and
equity
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
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
Total current assets
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
Fix assets
Equipment
814,668
814,668
814,668
814,668
814,668
814,668
814,668
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
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
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
Total current liabilities 94,610 180,803 115,238 53,406 106,688 83,963 2,003 96,158 77,573 21,120 104,438 187,103
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
13,094,610
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
Equity
Retained earnings 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
Total equity
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
Total liabilities and
equity
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
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 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
Other Curent assets 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
Total current assets
3,034,753
4,210,743
4,935,704
5,226,710
6,010,754
6,635,845
6,649,986
7,438,779
8,002,444
7,894,764
8,743,544
10,071,009
Fix assets
Equipment 814,668
814,668
814,668
814,668
814,668
814,668
814,668
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
Total assets
14,783,920
15,959,910
16,684,871
16,975,877
17,759,921
18,385,012
18,399,153
19,187,946
19,751,611
19,643,931
20,492,711
21,820,176
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
Total liabilities
13,108,551
13,192,681
13,137,646
13,064,298
13,127,251
13,112,851
13,019,049
13,121,176
13,102,726
13,001,062
13,127,476
13,218,241
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 6,642,869 7,365,235 8,601,935
Total equity
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
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
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
Other Curent assets 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
Total current assets
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
Fix assets
Equipment
814,668
814,668
814,668
814,668
814,668
814,668
814,668
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
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
Liabilities and equity
Liabilities
Current liabilities
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
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
Equity
Retained earnings 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
Total equity
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
Total liabilities and
equity
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
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 1,386,200 1,948,900 14,679,100
Depreciation 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
Cash inflow from operating activity 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 1,425,005 1,987,705 15,144,760
Cash outflow
Purchasing product 322,500 344,000 270,500 321,500 259,500 294,500 299,500 383,000 347,500 306,500 377,000 527,500 4,053,500
Operating expense 497,600 208,150 207,250 520,090 208,150 207,250 500,810 208,150 207,250 594,990 207,250 208,150
3,775,090
Income tax 28,980 83,423 52,178 23,372 38,963 62,438 27,374 107,948 90,173 15,452 100,793 162,488
793,582
Cash out flow from operating
activity 849,080 635,573 529,928 864,962 506,613 564,188 827,684 699,098 644,923 916,942 685,043 898,138 8,622,172
Net cash flow form Operating activity 333,025 641,532 464,477 301,243 389,592 522,617 323,921 780,507 679,782 256,363 739,962 1,089,567 6,522,588
Selling & administrative activities
Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
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
Organization expenses 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
Cash outflow sell & administrative
activity 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
Net cash flow sell & administrative
activity -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
Investing activities
Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
Building and land 10,500,000 0 0 0 0 0 0 0 0 0 0 0 10,500,000
Building modifies cost 432,000 0 0 0 0 0 0 0 0 0 0 0 432,000
Install telephone 2,499 0 0 0 0 0 0 0 0 0 0 0 2,499
Equipment 814,668 0 0 0 0 0 0 0 0 0 0 0 814,668
Cash outflow investing activities 11,749,167 0 0 0 0 0 0 0 0 0 0 0 11,749,167
Net cash flow investing activities -11,749,167 0 0 0 0 0 0 0 0 0 0 0 -11,749,167
Financing activities
Cash inflow
Borrowing 13,000,000 0 0 0 0 0 0 0 0 0 0 0 13,000,000
Cash outflow
Interest rate 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 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
Net cash increase or decrease 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
Beginning cash 995,063
1,337,25
0
1,503,28
2
1,193,24
0
1,283,48
7
1,507,65
9
1,239,57
5
1,720,73
7
2,102,07
4 1,672,252 2,113,769
Ending cash 995,063 1,337,250
1,503,28
2
1,193,24
0
1,283,48
7
1,507,65
9
1,239,57
5
1,720,73
7
2,102,07
4
1,672,25
2 2,113,769 2,903,991 2,903,991
Monthly Based for Year 2
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Operating activities
Cash inflow
Cash sales 2,064,300 1,919,800 1,382,200 1,577,000 1,382,200 1,191,900 982,800 1,098,200 1,021,700 964,000 1,344,600 1,858,900 16,787,600
Depreciation 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
Cash inflow from operating activity 2,103,105 1,958,605 1,421,005 1,615,805 1,421,005 1,230,705 1,021,605 1,137,005 1,060,505 1,002,805 1,383,405 1,897,705 17,253,260
Cash outflow
Purchasing product 559,500 515,500 374,500 429,500 374,500 322,500 265,500 297,500 276,500 260,500 364,500 505,000 4,545,500
Operating expense 735,210 208,150 207,250 647,900 208,150 207,250 565,490 208,150 207,250 666,850 207,250 208,150
4,277,050
Income tax 95,939 159,923 100,568 55,440 100,433 79,823 3,272 69,383 61,193 14,003 96,428 152,363
988,768
Cash out flow from operating activity 1,390,649 883,573 682,318 1,132,840 683,083 609,573 834,262 575,033 544,943 941,353 668,178 865,513 9,811,318
Net cash flow form Operating activity 712,456 1,075,032 738,687 482,965 737,922 621,132 187,343 561,972 515,562 61,452 715,227 1,032,192 7,441,942
Selling & administrative activities
Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
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
Organization expenses 690,255 162,295 162,295 602,945 162,295 162,295 520,535 162,295 162,295 621,895 162,295 162,295 3,733,990
Cash outflow sell & administrative
activity 696,405 169,345 168,445 609,095 169,345 168,445 526,685 169,345 168,445 628,045 168,445 169,345 3,811,390
Net cash flow sell & administrative
activity -696,405 -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
Investing activities
Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
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
Net cash flow investing activities 0 0 0 0 0 0 0 0 0 0 0 0 0
Financing activities
Cash inflow
Borrowing 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
Interest rate 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 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
Operating activities
Cash inflow
Cash sales 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 18,452,900
Depreciation 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
Cash inflow from operating activity 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 18,918,560
Cash outflow
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
Income tax 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
Cash out flow from operating activity 1,608,880 957,953 734,988 1,242,566 704,838 623,713 933,853 665,808 598,823 1,066,920 691,688 980,253 10,810,283
Net cash flow form Operating activity 704,925 1,193,352 821,817 471,439 773,367 644,592 180,152 713,697 608,382 6,885 760,617 1,229,052 8,108,277
Selling & administrative activities
Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
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
Organization expenses 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
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
Net cash flow 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
Investing activities
Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
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
Net cash flow investing activities 0 0 0 0 0 0 0 0 0 0 0 0 0
Financing activities
Cash inflow
Borrowing 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
Interest rate 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 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
Operating activities
Cash inflow
Cash sales 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 20,920,000
Depreciation 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
Cash inflow from operating activity 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 21,385,660
Cash outflow
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 5,681,500
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
Cash out flow from operating activity 1,713,879 980,639 796,204 1,327,246 762,709 710,909 1,091,857 743,134 678,284 1,174,840 763,034 1,077,699 11,820,434
Net cash flow form Operating activity 783,926 1,260,666 948,801 533,159 889,896 808,296 276,748 855,471 750,921 160,665 891,171 1,405,506 9,565,226
Selling & administrative activities
Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
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
Organization expenses 907,065 162,295 162,295 734,685 162,295 162,295 677,545 162,295 162,295 785,515 162,295 162,295 4,403,170
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
Investing activities
Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
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
Net cash flow investing activities 0 0 0 0 0 0 0 0 0 0 0 0 0
Financing activities
Cash inflow
Borrowing 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
Interest rate 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
1,106,161 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 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
Operating activities
Cash inflow
Cash sales 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 22,774,800
Depreciation 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
Cash inflow from operating activity 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 23,240,460
Cash outflow
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 6,192,000
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
Income tax 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
Cash out flow from operating activity 1,864,700 1,114,214 880,789 1,470,064 841,979 774,994 1,169,053 756,184 710,909 1,216,712 789,134 1,124,889 12,713,621
Net cash flow form Operating activity 830,005 1,473,591 1,079,616 605,741 1,018,926 913,611 331,352 878,421 808,296 172,793 937,071 1,477,416 10,526,839
Selling & administrative activities
Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
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
Organization expenses 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
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
Net cash flow 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
Investing activities
Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
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
Net cash flow investing activities 0 0 0 0 0 0 0 0 0 0 0 0 0
Financing activities
Cash inflow
Borrowing 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
Interest rate 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 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
Investment 13,000,000
Remainder 9,277,780.45
IRR= 34.77%
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 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 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.
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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