Ch.1-7 Cosy coffin company

Company Name: Cosy Coffin Company

Group Name

1. Miss Sitanun Karjangrut ID: 5031207038

2. Miss Areepan Pobsabua ID: 5031207046

3. Mr. Komron Punsang ID: 5031207073

4. Mr. Kantapich Panyaditwong ID: 5031207162

5. Miss Mullika Siriwet ID: 5031207164

Section 2

Seating: 10

Preface

This report prepared as part of a feasibility study in business. We have spent the last

13 weeks during the second semester of the academic year 2553 to study their practice

knowledge and information that is synthesized to compile the report.

In our study this subject considered successful to a certain extent discover how to

study to become entrepreneurs. And understand the importance of practicing their truly

Furthermore the study of the feasibility of doing business in this time, we was advised

by the instructor as well so thanks to a chance at this time.

Table of Contents

Page

Chapter 1: Introduction 1

- Background and Significance of the Project 1

- Project Objectives 2

- Benefits of Project 2

- Activities / Time Frame 3

Chapter 2: Industry profile 4

- Nature of industry 4

- Situation of Industry 9

- Product/Service 12

- Vision 15

- Mission 15

- Strategy 15

Chapter 3: Market Feasibility Study 17

- Market analysis 17

- Social environment 17

- Technology factor 17

- Competition Analysis: 17

- STP analysis 19

- Marketing mix strategy 21

- Sales Forecast 24

- Marketing Expenses 29

Chapter 4: Technical Feasibility Study 31

- Product Characteristics 31

- Product Process 33

- Services Process 34

- Location 36

- Store layout 37

- Machine, Tool, and Equipment 37

- Retail management and inventory 40

- Logistic management 40

- Organization Management 41

- Cost of Investment 44

- Office equipment 45

- Five year – Depreciation 45

- Operating Cost 47

Chapter 5: Financial Analysis 48

- Income Statement 48

- Cash Flow 51

- Balance Sheet 56

- NPV 61

- Payback period 61

- IRR 61

- Break-even point 61

Chapter 6: Risk Management 62

- Risk Management 62

- Financial Risk Analysis 65

Chapter 7: Summary 66

1

Project feasibility study & evaluation Chapter 1

Introduction

Background and Significance of the Project

At the present, every country in the world is promoting and urging global warming

such as decrease in deforestation or recycle use. The coffin is one that uses wood as primary

building materials, and also coffin is much needed for everyone. Each year, Thailand has a

death rate of population increase especially in the three southern border provinces which has

killed almost every day the main reason from terrorism. One important thing is most people

are poor, so a cheap coffin it is therefore necessary and desired for them. Nowadays there are

a few companies in the honeycomb paper industry produced honeycomb paper coffin for sell

at cheaper price than wooden coffin and friendly with environment as well.

Honeycomb paper coffin business is more interested; even if the operator is not so

much, but Trends in the growth of this business are increasing, so is the main reason to invest

in this business. Cosy Coffin is not only the company to produce honeycomb paper coffin we

also promote and campaign on global warming is reduce about deforestation; therefore to

chose materials made from honeycomb paper produced materials to replace wood which

faster degradation and strength equal to coffin wood. It can support the weight of

approximately 200 kg. Flammable and can burn more easily than wood make it more

convenient for relatives who died or cremation temple because wood does not cause the

contamination of the bone ash. And most importantly cheap available as an alternative to

those with low incomes. We will also make a donation coffin to some temple to be used with

the bodies without relatives in order to receive attention from many of the temple. In the

future, we will represent the coffin donated to temples as well.

Cosy Coffin Company is the name of company we chose to target market segments in

the three southern border provinces of Thailand; why choose to invest here because this area

is the death occurred almost daily that now must import wood for coffins and make it a lot.

Honeycomb paper is lighter than the wood can move more easily. Our manufacturing located

in Songkhla that is the economy city so easy to transport raw materials and distribution, and

close to the three southern border provinces. A product design is no different from the

wooden coffin, but customers will get a cheaper price. Our company has a plan to establish

2

Project feasibility study & evaluation any factory because the cost of investment is cheap and it is not long time for profit return, so

we try to make product to be recognized under the brand of Cosy Coffin.

Project Objectives

1. To compute the risk analysis and sales forecast of recycling business.

2. To study trend and situation of this business.

3. To learn about the process in this product form the professional.

4. To learn about competition of product.

5. Conclusion the feasibility of business.

Benefits of Project

1. Evaluating feasibility and impact of this business.

2. Understanding the trend and situation of this business.

3. Get knowledge about the product from the professional field.

4. Can know and understand about competition of the product.

5. Get to know the approach of project case study successful.

3

Project feasibility study & evaluation

Activities / Time Frame

Operation Plan November December January February

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

• Research and collecting

general data such as price of

the product, supplier, business

process.

× ×

×

• Study customer behavior. ×

• Competitive analysis. ×

• Market survey. × ×

• Marketing analysis. ×

• Product analysis. ×

• Financial analysis × × ×

• Risk management. ×

• Conclusion of project

feasibility.

×

4

Project feasibility study & evaluation Chapter 2

Industry profile

Nature of industry

A coffin is a funerary box used in the display and containment of dead people – either

for burial or cremation. Generally referred to as coffins, in contemporary North American

English there is a distinction made between coffins, which have six sides in plain view, and

caskets, which have four sides.

Etymology

First attested in English 1380, the word coffin derives from the Old French "cofin",

from Latin "cophinus", which is the romanization of the Greek "κόφινος" (kophinos),

"basket". The earliest attested form of the word is the Mycenaean Greek ko-pi-na, written in

Linear B syllabic script. Any box used to bury the dead in is a coffin. Use of the word

"casket" in this sense began as a euphemism introduced by the undertaker's trade in North

America; a "casket" was originally a box for jewelry. North Americans may draw a

distinction between "coffins" and "caskets", using coffin to refer to a tapered hexagonal or

octagonal (also considered to be anthropoidal in shape) box used for a burial and casket to

refer to a rectangular burial box with a split lid used for viewing the deceased as seen in the

picture above. Receptacles for cremated and crenulated human ashes (sometimes called

cremains in North America) are called urns.

http://en.wikipedia.org/wiki/Urns

http://en.wikipedia.org/w/index.php?title=Cremulated&action=edit&redlink=1

http://en.wikipedia.org/wiki/Cremated

http://en.wikipedia.org/wiki/Rectangle

http://en.wikipedia.org/wiki/Octagon

http://en.wikipedia.org/wiki/Hexagon

http://en.wikipedia.org/wiki/Undertaker

http://en.wikipedia.org/wiki/Euphemism

http://en.wikipedia.org/wiki/Linear_B

http://en.wikipedia.org/wiki/Mycenaean_Greek

http://en.wikipedia.org/wiki/Greek_language

http://en.wikipedia.org/wiki/Romanization

http://en.wikipedia.org/wiki/Latin

http://en.wikipedia.org/wiki/Old_French

http://en.wikipedia.org/wiki/Multiview_orthographic_projection#Plan_view

http://en.wikipedia.org/wiki/North_American_English

http://en.wikipedia.org/wiki/North_American_English

http://en.wikipedia.org/wiki/Cremation

http://en.wikipedia.org/wiki/Burial

http://en.wikipedia.org/wiki/Dead

http://en.wikipedia.org/wiki/Box

http://en.wikipedia.org/wiki/Funeral

5


Practices

A coffin may be buried in the ground directly, placed in a burial vault or

cremated. Alternatively it may be interred above ground in a mausoleum, a chapel, a church,

or in a loculus in catacombs. Some countries practice one form almost exclusively, whereas

in others it may depend on the individual cemetery. The handles and other ornaments (such as

doves, stipple crosses, crucifix, symbols etc.) that go on the outside of a coffin are called

fittings (sometimes called 'coffin furniture' - not to be confused with furniture that is coffin

shaped) while organizing the inside of the coffin with fabric of some kind is known as

"trimming the coffin". Cultures that practice burial have widely different styles of coffin. In

some varieties of Orthodox Judaism, the coffin must be plain, made of wood and contain no

metal parts or adornments. These coffins use wooden pegs instead of nails. In China and

Japan, coffins made from the scented, decay-resistant wood of cypress, sugi, thuja and

incense-cedar are in high demand. Sometimes coffins are constructed to permanently display

the corpse, as in the case of the glass-covered coffin of the Haraldskær Woman on display in

the Church of Saint Nicolai in Vejle, Denmark or the glass-coffin of Vladimir Lenin which is

in the Red Square in Moscow. When a coffin is used to transport a deceased person, it can

also be called a pall, a term that also refers to the cloth used to cover the coffin.

Design

Coffins are traditionally made with six sides, tapered around the shoulders, or

rectangular with four sides. Continental Europe has favored the rectangular coffin or casket,

although variations exist in size and shape. In Medieval Japan, round coffins were used,

http://en.wikipedia.org/wiki/Pall_(casket)

http://en.wikipedia.org/wiki/Death

http://en.wikipedia.org/wiki/Moscow

http://en.wikipedia.org/wiki/Red_Square

http://en.wikipedia.org/wiki/Vladimir_Lenin

http://en.wikipedia.org/wiki/Denmark

http://en.wikipedia.org/wiki/Vejle

http://en.wikipedia.org/wiki/Haraldsk%C3%A6r_Woman

http://en.wikipedia.org/wiki/Incense-cedar

http://en.wikipedia.org/wiki/Thuja

http://en.wikipedia.org/wiki/Sugi

http://en.wikipedia.org/wiki/Cupressaceae

http://en.wikipedia.org/wiki/Japan

http://en.wikipedia.org/wiki/China

http://en.wikipedia.org/wiki/Orthodox_Judaism

http://en.wikipedia.org/wiki/Cemetery

http://en.wikipedia.org/wiki/Catacombs

http://en.wikipedia.org/wiki/Loculus_(architecture)

http://en.wikipedia.org/wiki/Mausoleum

http://en.wikipedia.org/wiki/Burial_vault

6

Project feasibility study & evaluation which resembled barrels in shape and were usually made by coopers. In the 1961 Kurosawa

film Yojimbo, the protagonist, anticipating a shortage of coffins due to an impending battle

(planned by Yojimbo) persuades several coopers to start making more coffins. In the case of

a death at sea, there have been instances where trunks have been pressed into use as a coffin.

They may incorporate features that claim to protect the body or for public health. For

example, some may offer a protective casket that uses a gasket to seal the casket shut after the

coffin is closed for the final time. In England, it has long been law that a coffin for interment

above ground should be sealed; this was traditionally implemented as a wooden outer coffin

around a lead lining, around a third inner shell. There are occurrences of coffins lined with or

constructed from lead to bury radioactive-contaminated dead. However, in practice, after

some decades have passed, the lead may ripple and rip. In the United States, numerous states

require a vault of some kind in order to bury the deceased. A burial vault serves as an outer

enclosure for buried remains; the coffin serves as an inner enclosure. Some manufacturers

offer a warranty on the structural integrity of the coffin. However, no coffin will preserve the

body, regardless of whether it is a wooden or metal coffin, a sealed casket, or if the deceased

was embalmed beforehand. In some cases, a sealed coffin may actually speed up rather than

slow down the process of decomposition. An airtight coffin, for example, fosters

decomposition by anaerobic bacteria, which results in a putrefied liquefaction of the body,

and all putrefied tissue remains inside the container, only to be exposed in the event of an

exhumation. A container that allows air to pass in and out, such as a simple wooden box,

allows for clean skeletonization. However the situation will vary according to soil or air

conditions, and climate. Coffins are made of many materials, including steel, various types

of wood, and other materials such as fiberglass. There is emerging interest in eco-friendly

coffins made of purely natural materials such as bamboo, willow or Banana Leaf. Custom

coffins are occasionally created and some companies also make set ranges with non-

traditional designs. These include printing or painting of peaceful tropical scenes, sea-shells,

sunsets, cherubs and patriotic flags. Some manufacturers have designed them to look like

gym carry bags, guitar cases, cigar humidors, and even yellow dumpster bins. Other coffins

are left deliberately blank so that friends and family can inscribe final wishes and thoughts

upon them to the deceased. In Taiwan, coffins made of crushed oyster shells were used in the

18th and 19th centuries. Coffins are sometimes personalized to offer college insignia or

different head panels to better reflect the deceased's life choices of aspirations: in Ghana, Seth

Kane Kwei Carpentry Workshop in the 50's was at the beginning of a tradition, still alive

http://en.wikipedia.org/wiki/Kane_Kwei_Carpentry_Workshop

http://en.wikipedia.org/wiki/Ghana

http://en.wikipedia.org/wiki/Oyster

http://en.wikipedia.org/wiki/Taiwan

http://en.wikipedia.org/wiki/Skeleton

http://en.wikipedia.org/wiki/Liquefaction

http://en.wikipedia.org/wiki/Putrefaction

http://en.wikipedia.org/wiki/Anaerobic_bacteria

http://en.wikipedia.org/wiki/Embalmed

http://en.wikipedia.org/wiki/Gasket

http://en.wikipedia.org/wiki/Yojimbo_(film)

http://en.wikipedia.org/wiki/Kurosawa

http://en.wikipedia.org/wiki/Cooper_(profession)

7

Project feasibility study & evaluation under his grandson Eric Adjetey Anang who creates elaborate coffins built in the shapes of

various mundane objects, like automobiles or aero planes, fish or pigs, onions or stools. In the

1990s, the rock group Kiss released a customized Kiss Kasket, which featured their

trademark makeup designs and KISS logo and could also be used as a cooler. Pantera

guitarist Dimebag Darrell was buried in one.

Cremation

With the resurgence of cremation in the Western world, manufacturers have begun

providing options for those who choose cremation. For a direct cremation a cardboard box is

sometimes used. Those who wish to have a funeral visitation (sometimes called a viewing) or

traditional funeral service will use a coffin of some sort. Some choose to use a coffin made of

wood or other materials like particle board. Others will rent a regular casket for the duration

of the services. These caskets have a removable bed and liner which is replaced after each

use. There are also rental caskets with an outer shell that looks like a traditional coffin and a

cardboard box that fits inside the shell. At the end of the services the inner box is removed

and the deceased is cremated inside this box.

Industry

Traditionally, in the Western world, a coffin was made, when required, by the village

carpenter, and he would frequently manage the whole funeral. The design and workmanship

would reflect the skills of that individual carpenter, with the materials and brasses being the

materials that were available at the time. In past centuries, if a pauper's funeral was paid for

by the parish, the coffin might have been made of the cheapest, thinnest possible pine. At the

other extreme, a coffin bought privately by a wealthy individual might have used yew or

mahogany with a fine lining, plated fittings and brass decorations, topped with a decorated

velvet drape. In modern times coffins are almost always mass-produced. Some manufacturers

do not sell directly to the public, and only work with funeral homes. In that case, the funeral

director usually sells the casket to a family for a deceased person as part of the funeral

services offered, and in that case the price of the casket is included in the total bill for

services rendered. Some funeral homes will have a small showroom to present families with

the available caskets that could be used for a deceased family member. In many modern

funeral homes the showroom will consist of sample pieces that show the end pieces of each

http://en.wikipedia.org/wiki/Mahogany

http://en.wikipedia.org/wiki/Yew

http://en.wikipedia.org/wiki/Softwood

http://en.wikipedia.org/wiki/Poor_law_Union

http://en.wikipedia.org/wiki/Carpenter

http://en.wikipedia.org/wiki/Viewing_(funeral)

http://en.wikipedia.org/wiki/Funeral#Visitation

http://en.wikipedia.org/wiki/Western_world

http://en.wikipedia.org/wiki/Cremation

http://en.wikipedia.org/wiki/Dimebag_Darrell

http://en.wikipedia.org/wiki/Pantera

http://en.wikipedia.org/wiki/Kiss_Kasket

http://en.wikipedia.org/wiki/Kiss_(band)

http://en.wikipedia.org/wiki/Eric_Adjetey_Anang

8

Project feasibility study & evaluation type of coffin that can be used. They also include samples of the lining and other materials.

This allows funeral homes to showcase a larger number of coffin styles without the need for a

larger showroom. Other types may be available from a catalogue, including decorative paint

effects or printed photographs or patterns. Under a U.S. federal law, 16 CFR Part 453 (known

as the Funeral Rule), if a family provides a casket they purchased elsewhere, the

establishment is required to accept the casket and use it in the services. If the casket is

delivered direct to the funeral home from the manufacturer or store, they are required to

accept delivery of the casket. The funeral home may not add any extra charges or fees to the

overall bill if a family decides to purchase a casket elsewhere. If the casket was bought from

the funeral home, these Regulations require bills to be completely itemized.

Nowadays the innovation about paper in Thailand is developed continuously by

following the wants of marketing include with the social trend to save the world that focus on

decrease the wood and plastic in production .And then focus on provide the ways to create

new business which one is “Honeycomb paper” that also in Thai people but in export

business be in with this business because it’s important paper to protect the product 100%

through receiver. The qualification of honeycomb paper can be support 800 kg weight.

Honeycomb is strong paper so it’s adapted to be honeycomb coffin is the package that

important export business and get the good response from the exporter and decrease about

cost of production, transportation decrease about 30% include with realize to world trend that

want to save the world and protect global warming because when we used honeycomb paper

we can recycle for using again that make customer satisfy. The adapting of honeycomb to be

coffin is increase more benefit and value by using design and desire of marketing player. The

honeycomb coffin is the choosing way of Thai people because it’s cheap and softly. The price

staring only 700 bath. However these businesses still grow up because it’s appropriate and

support the people who want to save cost and save the world.

9

Project feasibility study & evaluation Situation of Industry

The situation of honeycomb paper in Thailand

Nowadays, many companies have to develop their product to support the global

worming project. That is the positive thing, that can be make propel how have greet idea to

create and product them product. Generally paper can help us world from many product that

product by paper. Like Thailand innovation in part of paper can be consider develop

according to market demand all time .Including the social environment in which many people

reduce the use of wood and plastic in the production process. And then they focus on

alternatives to business. The one of the most innovation is paper Honeycomb. Paper

honeycomb is a building and packing material. One of the most commons uses of paper

honeycomb is for standard doors inside houses. Typically a layer of fiberglass the enforced

paper made into honeycomb shapes and then another layer of fiberglass. Compared pound for

pound, it is stronger than steel and costs substantially less to manufacture.

During the Second World War, paper honeycomb was introduced for the airplane

industry .After the war ended paper honeycomb was used primarily as a structural material in

the reconstruction of Europe. The shortage of building material made paper honeycomb an

excellent cost effective available alternative. The development of paper honeycomb in North

America was based on those post-war European applications.

Paper honeycomb is still used in structural applications such as inner doors,

separation walls and furniture. Door companies incorporated high speed production lines with

continuous paper honeycomb and are able to produce up to 10,000 doors a week. In

Switzerland and Germany, paper honeycomb has become an important material in home

construction. The use of paper honeycomb as a cost effective way to provide temporary

housing units has been explored but despite high interest levels has not become the standard

for temporary shelter.

Paper honeycomb is also used as a packaging material. Glued with paper on both

sides, it makes an excellent protecting material for all types of items. It is currently used in

the following industries: paper, automotive, glass, ceramic, transportation, appliance, and

furniture. Paper honeycomb can be die cut, slit scored or cookie cut into numerous sizes and

shapes to protect products "inside the box" or "outside the box". Paper honeycomb is a

http://en.wikipedia.org/wiki/Second_World_War

http://en.wikipedia.org/wiki/Steel

http://en.wikipedia.org/wiki/Fiberglass

http://en.wikipedia.org/wiki/Honeycomb

http://en.wikipedia.org/wiki/Fiberglass

10

Project feasibility study & evaluation protective packaging alternative to wood, corrugated or EPS. Paper honeycomb is now being

used in transportation applications such as rail car and truck tonnage.

In the part of export business would be intimately familiar. It is a paper that is

essential to protect the goods in good condition until the door 100%, but shrewd

entrepreneurs. The business generation at second extension of his father's business in the

corrugated industry. The current saturation point comes. Face problems in terms of

competition. Price and pounding each other and make the size of SME business is hard.

According to Mr.Aroon, He say that” Our received good feedback from exporters.

Especially in terms of cost reduction in transportation costs to be approximately 30% of the

original wood used mainly, as well as to meet the current world community to reduce global

warming. Because paper honeycomb can be recycled and reused a new one, it has been

accepted by customers as well. The company well decided to import the machine used to

produce honeycomb paper instead to reduce production costs’

In addition paper honeycomb can receive much weight. Therefore, it is not difficult to

be an extension of a product known as the common man. Bookshelf Pet coffins coffin, or

even bring the paper to create a booth displaying various products because the show is mostly

used only a few days.

However, the business of paper honeycomb is also likely to grow more because it can

be processed into various products easily. It based on ideas of entrepreneurs to create a

product out that kind. Therefore, the future of the Thai paper industry would never come to a

stalemate if the operators do not stop to create.

The situation of coffin in Thailand

Coffin for sale is generally three types of Thai Coffin Chinese Coffin, and Christianity

Coffin. Materials used in the manufacture of wooden coffin generally used tire most 35

percent, followed by 20 percent due to a plywood timber that needs to replace the rubber

wood. And to enhance the environment and forest conservation campaigns.

The price of the coffin; The major operators who engage in the production and distribution

Coffin for over 3 decades now indicates that type of coffin was priced between 800-1500

11

Project feasibility study & evaluation baht Coffin expensive type of cost is generally popular during the 4500-8000 baht, normally

coffin is sold as a package together with basic services

Popular in the manufacture and sale of shell; from a coffin shop survey 93 percent of

popular coffin sales up more than two types of the remaining 7 percent sell only Thai Coffin.

For the popularity of the buyer was a relative on buying Thai Coffin most 39 percent,

followed by 36 percent purchase Chinese Coffin differ only slightly.

Security, production and sales coffin; Production and sales Coffin is a business that never

die, because it is a business necessity and is required it is evident that since the year 2539

economic crisis, since even the lean economy many businesses are having trouble operating

but the coffin business is not affected considering the rate of death among Thai people is

increasing 5 percent per year the comparison hands today which estimates the number of

deaths was 450,000 with an average price of 4,500 baht per coffin current business earn a

minimum value of approximately 2,000 million baht.

In addition, the business will also promote business industrial and workers as well.

Coffin shops in Bangkok and its suburbs over more than half (67 percent), mainly shops and

sells itself the remaining 33 percent of the retail stores that receive products from major

manufacturers to sell (Kasikorn Thai Research Center 2540). When used with a comparable

number of deaths increased in Thailand today could indicate that needs and the need to

produce and use coffin increasing the number of casualties, so this business need workers in

manufacturing Both skilled and unskilled labor cause of the current economic flow,

production, sales and employment for small business coffin manufacturing industry may be

classified as a family investments of entrepreneurs will depends on location and size of store

is important.

12


Product/Service

Cosy Coffin Company provides honeycomb paper coffins, this is honeycomb paper

can support the weight of approximately 200 kg and lighter than the wood can move more

easily. Our products are exhaustively elaborate and customers will get a cheaper price than

wooden coffin.

Honeycomb paper Coffin:

13


Flammable and can burn more easily than wood make it more convenient for relatives

who died or cremation temple because wood does not cause the contamination of the bone

ash.

We have many design coffins to offer customers

14


15


Vision: To be the best one coffin with the excellent quality and save the world.

Mission: The Company use 3’R as reduce, reuse and recycle, so the companies are

indoctrinate to the employee for care environment and social at the same time. The company

will be success depends on good quality, service, value, transportation, and competitive

pricing of the product that offer to the customers and also the qualities of life of the employee

like a work place, welfare, satisfied salary, and safety must be under the standardize.

Strategy:

Corporate level strategy

Cosy Coffin Company is a new company which properly selected from situation

analysis. Our business is a kind of sustainable business, which care environment and social

that has a coffin made from honeycomb paper for the one choice offer to customers who want

to save money and save world. We would like to be a leader price, because our competitors

consist both of more wooden coffin company and less honeycomb paper coffin company, but

honeycomb paper coffin is cheaper price which the same quality to support customers

demand. In the future if our business increases more demand we will develop the product to

present customers for good attraction and get better, as well as extend a new branch to other

area, because we have a good quality product to make this point stronger for break into the

market.

Business level strategy

Cosy Coffin Company is focused on the cost leadership strategy because the product

that are produced from low cost material but good quality, the cost that is likely lower than

other stores in this business area. Cosy Coffin Company able to gain an advantages more than

competitors in this business level strategy by developing the product designs for more

attractiveness, and developing raw materials and control as high quality under the low cost

system for economy of scale in the future.

16

Project feasibility study & evaluation Moreover, Cosy Coffin Company is not only to sale the coffin, but also donate coffin

to temple for bodies without relatives. This is the way to make a well know from our

competitors.

Functional level strategy

Cosy Coffin 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

- Our target group is pauper and everyone who want to save money and save world.

- Diversity of coffin product designs.

- For the beginning we sale our product in three southern border provinces of Thailand

because there is more demand area.

- We focus on quality of product and the cheap price.

- We have advertising on Internet and local newspaper to promote our product.

- We donate our coffin to temple for bodies without relatives for get a well know.

The Operation Strategy

- Clear vision and mission

- Clear positioning the product system.

- To decrease the cost but good quality to gain more customers.

Financial Strategy

- We loan money from the bank that support SME business.

- To make clearly the financial system.

- Use trade credit.

Human resources Management Strategy

- Hiring employee in the local area for save cost and increase revenue to community.

- Training employee for good skill and good working environment.

17


Chapter 3

Market Feasibility Study

Market analysis

General Environment Analysis

Social environment

Thai social is a group of people living together in Thailand. There is Thai traditional

and unique cultural identity different from any other societies, including spoken language,

writing, beliefs, manner, food and life style, etc. the environment determines the nature of

society including nature environment and cultural environment. Family is currently important

in Thai society because many people have family but somebody stays alone so the Cosy

Coffin Company focus on these things and make the product to the people both of groups.

For these reasons our business can support the Thai traditional and culture which belief with

the religious, so the cosy coffin is the sacred ceremony for the ending of people life cycle.

Technology factor

All of technology brings the knowledge from scientific to apply for creating

interesting in nowadays technology factors have more affected to most business to promote

and support the ways that make customer know. Internet is the large computer networks that

connect to around the world for help to promote our business. There are many user and

popular continuously. The internet is large media can communicate information exchange.

Cosy Coffin business apply technology to achieve the highest quality to customer channel,

such as searching the information about our product include with using the telephone or fax

for reservation our product to increase convenient for customer to find the information.

Competition Analysis:

18

Project feasibility study & evaluation Our competitor in Coffin Company, this-is, who produce or design the coffin quite

similar Cosy Coffin Company. We can analyze competition as follow;

1. Competitor Analysis: The famous coffin company is two companies and the market

they are focus on is likely in the three southern border provinces because this area

which has killed almost every day the main reason from terrorism. There are third

coffin companies as follow;

1.1 Asoke:

Asoke has three types and there are sold 10 coffins per day;

General pattern, this is white wooden coffin cost 4000-7000 THB.

A small coffin for a child remains priced at 1,000 THB.

Air-conditioned coffin prices ranging from 6500-8000 THB.[ For rents]

Remark: It makes the body look better and maintain the original longer.

Special Products: Flowers and wreaths.

1.2 Tong Tek Siang Tung Foundation:

Foundation has two types; rubber wood coffin for distribution and white coffin this is

gold pattern of retail price of each coffin 4500 THB and there is sold 5-10 coffins per week.

We can see our competitors are not more in this area and almost sales wooden coffin.

So we are a new company that not difficult to entry in this business.

2. Customer Analysis:

Our target market segments are Songkhla and three southern border provinces of

Thailand because this area is the death occurred almost daily. In addition, the total since

January 2547 until October 2553 month is southern unrest was caused by the 10,386 people

were killed including 4,453 people, injured 7,239 people. If counting injuries and deaths

combined total will be up to 11,692 people, especially during the months of September and

October are the death statistics from the unrest on average 2 people per day. Therefore,

compared the number and proportion of deaths and injuries by looking at the religious

background of 59.02 percent (2,628 persons) of people who died from the unrest of the

Muslim group and the other 38.15 percent (1699 persons) of those fatalities are those who are

Buddhists. Moreover, in the group who received of all injuries 60.13 percent (4353 persons) it

who are Buddhists and Muslim is 32.68 percent (2,362 persons). Moreover; the cause of die

still from accidents, and disease as well. Therefore, our company are selected Songkhla in the

19

Project feasibility study & evaluation opening of business because it close to the three southern border provinces and more safety,

and there consists of level or frequency of violence was less, but the number of death and

injuries continues to make the coffin is still demanding.

3. Competitive Analysis:

Cosy Coffin Company is study and analysis about Coffin Company in Songkla selling

coffin to three southern border provinces; our company emphasized is customers in this area

because the populations are the death occurred almost daily so the coffin is great market

demand. Our company has realized the Honeycomb paper coffin as a novelty, and it makes

our products different from other shops that use raw materials from wood such as Asoke and

Tong Tek Siang Tung Foundation. Therefore, honeycomb paper produced materials to replace

wood which faster degradation and strength equal to coffin wood and it can support the

weight of approximately 200 kg and sell at cheaper price than wooden coffin this is

Honeycomb paper coffin sold 900 THB but coffin wood from Asoke and Tong Tek Siang

Tung Foundation are more than our company in upper 4,000 THB. Moreover, our product

design, quality and durability are similar from wooden coffin but our products are lighter than

products made of wood and friendly with environment as well. Our company is currently

marketing space there are small and new so people do not know about the properties of

honeycomb paper and it made customer uncertainty in our products. So, we will offer

advertising and suggested about the honeycomb paper to be recognized of customer. In

addition, within two years our company may have failed to gain, but next year we will make a

market area increases and the market will expand to other provinces. Moreover, In Songkhla

less coffin business that made from honeycomb paper and we will promote and provide

comprehensive coffin becomes the business which is very popular in the future to get more

benefits and successful, and also in three southern border provinces not have a coffin factory

and less a coffin store, so almost retailer will order coffin from Bangkok, if coffin factory

located in Songkhla it’s easier when order and transportation, also decrease cost as well.

STP analysis

Marketing Segmentation analysis

20

Project feasibility study & evaluation Our product made from natural material and to develop their product to support the

global worming project. This is the new market in Thailand and can attractive the costumer

more than any product. That is the good point because costumer who live to stop the global

warming, they need to use the product from natural as well. So, about market segmentation

we will focus on people who want to save money and save world or poor person .and then

our product are the product about culture and traditional making to every people can come to

buy our product. This project assists people in Songkhla and tree southern border provinces

of Thailand. The three southern border provinces of Thailand, They have many problems in

these areas and that satiation can affect too many household in part of career, daily live,

safely. So, our product and company will pay attention in this problem want to participate

and solve extensively.

Information about death in three southern border provinces Thailand

Source : http://www.southpeace.go.th/actv/act_520301.htm

Target marketing

Our product is a standard product in production; it can make sure that the customer

will get satisfaction in part of price and quality. Our target focuses on people in Songkhla and

http://www.southpeace.go.th/actv/act_520301.htm

21

Project feasibility study & evaluation three southern border provinces of Thailand can be poor people or everyone who want to

save money and save world .In long term, our company will support in the foundation or

association that contribute society, in addition we can help local area or poor people to save

money and safe the global worming and then this process can promote our product to know in

three southern border provinces of Thailand too.

Positioning

Our product has a characteristic and a litter competitive. We try to create our product

to standard. We try to make customer who use our product satisfaction .so we just to create

our brand to easy to understand and easy to know. That is the best way because customer

behavior is very important. If they use our product satisfaction they will use world-of-mouth

communication to another people. More than that, about the promotion is important, we will

try to create promotion to approach with area. In addition we will organize by our staff and

check every process from technology that has quality and high standard and then, we have

service in every step for the customer hoe want to get the information about our product. At

the product price we set the price to approach with poor people and people who want to save

cost as well.

Marketing mix strategy

Marketing mix strategy is under the marketing model that hat help the company are thinking

of setting up, starting, expanding the business and selling the product or service. The

Quality

Price

Low

Low

High

High

Cosy Coffin Company

22

Project feasibility study & evaluation marketing meet their need and want. The company has to controllable factor at the market to

satisfy a target market the success marketing are the right product, in the right place, at the

right time ,at the right price. The key consider actions in the market should be analyze the 4Ps

Product and Service

We have main product is coffin in tree style design include with Normal coffin

design, Thai coffin design, and Painting coffin design. We also provide side product for

comfortable use such as wood flowers, wreath, and soul invite equipment. About service we

have Funeral services injections for offer customers as well.

Price

The Company will depend on the price very cheaper in the market because the cost of

product is lower. So the company’s focus on the poor people and the people who would like

to save money and save world.

Product and service Price

Normal coffin design 900 B.

Thai coffin design 1,600 B.

Painting coffin design 3,000 B.

Funeral services injections 1,000 B.

Wood flower 1 B.

Wreath 800 B.

Soul invite equipment 500 B.

Place

The factory of the company is locate in Songkhla, It the large area and near three

southern border provinces of Thailand. That is the target group because it has more people

die. This location is safe than 3 provinces and easy for transportation. This is the good

location that conveniences for the customer come to in victory, and also get more market

http://dict.longdo.com/search/safe

23

Project feasibility study & evaluation share. For the marketing the company advertising on the internet, poster, local newspaper,

and charity.

Promotion

Normally coffin business will not have a promotion such as buy one get one free or

decrease a sale price for some festival because it’s related with the death, and customer

cannot bargain the price, then we will provide a good product quality at the cheap price and

other product that relate with cremation for the convenient.

Sales Forecast

Our company forecast that the sale volume depend with the death rate of people in

three southern border provinces of Thailand and Songkhla about 1,212 per year and growing

in every year, and also forecast from our positioning in the market share with competitors.

The beginning our sale will increase from first year about 10 % from market share and

increase to 15% , 25%, 30%, and 35% for next year.

Expected Market Share of Cosy Coffin Company

24


Market share of Cosy Coffin CompanyMarket share of competitors

Five years Sales – Forecast

First year

Description Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.Normal coffin

design 9,000 9,900 11,700 12,600 13,500 13,500 11,700 12,600 13,500 12,600 11,700 13,500Thai coffin

design 32,000 35,200 38,400 41,600 44,800 41,600 41,600 38,400 38,400 41,600 41,600 44,800Painting coffin

design 0 0 0 0 0 0 6,000 6,000 3,000 3,000 6,000 6,000Funeral services

injections 4,000 4,000 4,000 5,000 5,000 4,000 6,000 6,000 6,000 7,000 7,000 8,000

Wood flower 800 800 800 800 900 900 900 1,000 1,000 1,000 900 900

Wreath 8,000 8,000 8,000 12,000 12,000 12,000 12,000 12,000 16,000 12,000 12,000 16,000Soul invite equipment 2,500 3,500 2,500 3,500 4,000 2,500 4,000 3,500 2,500 4,500 4,500 2,500

Total 56,300 61,400 65,400 75,500 80,200 74,500 82,200 79,500 80,400 81,700 83,700 91,700

Second year

Description Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.Normal coffin

design 9,000 9,900 11,700 12,600 13,500 13,500 11,700 12,600 13,500 12,600 11,700 13,500

Thai coffin 32,000 35,200 38,400 41,600 44,800 41,600 41,600 38,400 38,400 41,600 41,600 44,800

23%

77%

25

Project feasibility study & evaluation design

Painting coffin design 6,000 6,000 6,000 6,000 6,000 6,000 9,000 9,000 9,000 9,000 3,000 3,000

Funeral services

injections 11,000 12,000 11,000 12,000 11,000 14,000 13,000 13,000 14,000 15,000 15,000 14,000

Wood flower 10,000 11,000 10,000 12,000 12,000 11,000 14,000 13,000 13,000 14,000 13,000 14,000


Total 93,000 99,600 102,600 114,700 112,300 133,600 125,800 121,000 136,400 127,700 132,800 138,800

Third year

Description Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.Normal

coffin design 18,000 19,800 21,600 23,400 25,200 27,000 27,000 25,200 27,000 23,400 25,200 25,200Thai coffin

design 48,000 52,800 57,600 57,600 57,600 67,200 57,600 67,200 72,000 72,000 67,200 72,000Painting

coffin design 30,000 30,000 30,000 33,000 33,000 30,000 33,000 36,000 33,000 36,000 36,000 36,000Funeral services

injections 20,000 20,000 23,000 20,000 22,000 23,000 24,000 23,000 25,000 24,000 25,000 25,000

Wood flower 20,000 21,000 20,000 21,000 21,000 23,000 24,000 24,000 23,000 24,000 25,000 25,000


Total 191,100 198,700 209,700 215,400 219,400 230,600 228,600 232,500 247,800 238,900 240,300 247,500

Fourth year



design 64,000 70,400 76,800 83,200 89,600 96,000 89,600 83,200 96,000 89,600 83,200 96,000Painting


injections 25,000 25,000 27,000 26,000 27,000 28,000 26,000 26,000 27,000 28,000 30,000 30,000

26

Project feasibility study & evaluation Wood flower 25,000 25,000 25,000 28,000 27,000 27,000 29,000 27,000 28,000 28,000 29,000 30,000


Total 258,000 270,100 284,600 292,700 307,100 316,200 317,400 299,500 323,800 318,600 314,600 334,600

Fifth year



design 96,000 102,400 108,800 115,200 121,600 128,000 128,000 121,600 128,000 128,000 121,600 121,600Painting


injections 30,000 32,000 31,000 30,000 30,000 33,000 32,000 33,000 34,000 33,000 34,000 35,000

Wood flower 30,000 33,000 32,000 30,000 33,000 34,000 33,000 35,000 34,000 35,000 34,000 35,000


Total 326,500 350,600 357,700 354,300 378,900 386,900 390,000 370,900 393,000 386,500 385,900 393,300

Profit estimation

There is no account receivable, the cash receive is equal total sale in each year

Five Years - Cash Receive

First year

27

Project feasibility study & evaluation Description Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total

Normal coffin design 9,000 9,900 11,700 12,600 13,500 13,500 11,700 12,600 13,500 12,600 11,700 13,500 145,800Thai coffin

design 32,000 35,200 38,400 41,600 44,800 41,600 41,600 38,400 38,400 41,600 41,600 44,800 480,000Painting

coffin design 0 0 0 0 0 0 6,000 6,000 3,000 3,000 6,000 6,000 30,000Funeral services

injections 4,000 4,000 4,000 5,000 5,000 4,000 6,000 6,000 6,000 7,000 7,000 8,000 66,000Wood flower 800 800 800 800 900 900 900 1,000 1,000 1,000 900 900 10700

Wreath 8,000 8,000 8,000 12,000 12,000 12,000 12,000 12,000 16,000 12,000 12,000 16,000 140,000Soul invite equipment 2,500 3,500 2,500 3,500 4,000 2,500 4,000 3,500 2,500 4,500 4,500 2,500 40,000

Total 56,300 61,400 65,400 75,500 80,200 74,500 82,200 79,500 80,400 81,700 83,700 91,700 912,500

Description Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total

Normal coffin design 9,000 9,900 11,700 12,600 13,500 13,500 11,700 12,600 13,500 12,600 11,700 13,500 145,800

Thai coffin design

32,000 35,200 38,400 41,600 44,800 41,600 41,600 38,400 38,400 41,600 41,600 44,800 480,000

Painting coffin design 6,000 6,000 6,000 6,000 6,000 6,000 9,000 9,000 9,000 9,000 3,000 3,000 78,000Funeral services

injections11,00

0 12,000 11,000 12,000 11,000 14,000 13,000 13,000 14,000 15,000 15,000 14,000 155,000Wood flower

10,000 11,000 10,000 12,000 12,000 11,000 14,000 13,000 13,000 14,000 13,000 14,000 147,000

Wreath20,00

0 20,000 20,000 25,000 20,000 42,000 30,000 30,000 42,000 30,000 42,000 42,000 363,000Soul invite equipment 5,000 5,500 5,500 5,500 5,000 5,500 6,500 5,000 6,500 5,500 6,500 7,500 69,500

Total93,00

0 99,600102,60

0 114,700112,30

0 133,600125,80

0 121,000136,40

0 127,700 132,800138,80

0 1,438,300

Second year

Third year



Thai coffin design 48,000 52,800 57,600 57,600 57,600 67,200 57,600 67,200 72,000 72,000 67,200 72,000 748,800

Painting coffin

30,000 30,000 30,000 33,000 33,000 30,000 33,000 36,000 33,000 36,000 36,000 36,000 396,000

28

Project feasibility study & evaluation designFuneral services

injections 20,000 20,000 23,000 20,000 22,000 23,000 24,000 23,000 25,000 24,000 25,000 25,000 274,000Wood flower 20,000 21,000 20,000 21,000 21,000 23,000 24,000 24,000 23,000 24,000 25,000 25,000 271,000


Total 191,100 198,700 209,700 215,400 219,400 230,600 228,600 232,500 247,800 238,900 240,300 247,500 2,700,500

Fourth year



Thai coffin design 64,000 70,400 76,800 83,200 89,600 96,000 89,600 83,200 96,000 89,600 83,200 96,000 1,017,600

Painting coffin design 45,000 48,000 48,000 45,000 51,000 48,000 51,000 45,000 51,000 51,000 48,000 51,000 582,000Funeral services



Total 258,000 270,100 284,600 292,700 307,100 316,200 317,400 299,500 323,800 318,600 314,600 334,600 3,637,200

Fifth year



Thai coffin design 96,000 102,400 108,800 115,200 121,600 128,000 128,000 121,600 128,000 128,000 121,600 121,600 1,420,800

29

Project feasibility study & evaluation Painting coffin design 45,000 48,000 48,000 45,000 51,000 48,000 51,000 45,000 51,000 51,000 48,000 51,000 582,000Funeral services



Total 326,500 350,600 357,700 354,300 378,900 386,900 390,000 370,900 393,000 386,500 385,900 393,300 4,474,500

Marketing Expenses

Market expenses are the cost that our company use for promoted our company. Each

Cost is separate by each season too. We have three ways to promote for a well known the

first one is promote through the local newspaper this is popular one because many people and

many retailer always read newspaper. Second one is poster because more people can see our

product through poster in many places. And the last one we donate coffin to some temple for

the dead body without relatives we can get more famous from temple and communities in

many good way.

Five Years - Marketing Expenses

First year

Description Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Totallocal

newspaper 5,000 0 0 0 0 5,000 0 0 0 0 3,000 0 13,000

poster 2,000 0 0 0 0 0 2,000 0 0 0 0 0 4,000

charity 13,500 18,000 18,000 0 22,500 13,500 13,500 13,500 13,500 18,000 13,500 135 157,635

Total 20,500 18,000 18,000 0 22,500 18,500 15,500 13,500 13,500 18000 16,500 135 174,635

30

Project feasibility study & evaluation Second year


newspaper 0 0 0 0 0 0 0 0 2,500 0 0 2,500

Poster 0 0 0 1,000 0 0 0 0 0 0 1,000 2,000

Charity 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 108,000

Total 9,000 9,000 9,000 9,000 10,000 9,000 9,000 9,000 9,000 11,500 9,000 10,000 112,500

Third year


newspaper 0 0 0 0 0 3,000 0 0 0 0 0 0 3,000

poster 0 0 0 0 0 0 0 1,000 0 0 0 0 1,000

charity 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 97,200

Total 8,100 8,100 8,100 8,100 8,100 11,100 8,100 9,100 8,100 8,100 8,100 8,100 101,200

Fourth year


local newspaper 0 0 0 0 0 0 0 0 0 0 0 0 0

poster 0 0 0 0 0 0 0 0 0 0 0 0 0

charity 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 97,200

Total 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 97,200

Fifth year


local newspaper 0 0 0 0 0 0 0 0 0 0 0 0 0

poster 0 0 0 0 0 0 0 0 0 0 0 0 0

charity 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 97,200

Total 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 97,200

31


Chapter 4

Technical Feasibility Study

Production and Operation Analysis

Product Characteristics

Normal coffin design

This design is normal type coffin made from honey comb paper it has Characteristic is

no painting and a rectangle box with 530 mm. wide, 1870 mm. length, and 380 mm. high.

Can support the weight of approximately 200 kg and lighter than the wood can move more

easily. Our products are exhaustively elaborate and customers will get a cheaper price than

wooden coffin.

Thai coffin design

32

Project feasibility study & evaluation This is a Thai style with white or gold color painting and decorates with Thai

painting. Characteristic is a rectangle box with 530 mm. wide, 1870 mm. length, and 380

mm. high. Can support the weight of approximately 200 kg and lighter than the wood can

move more easily.

Painting coffin design

This is a coffin painting with some pattern that depend on customer require such as

religions or beautiful feel for a differentiations. . Characteristic is a rectangle box with 530

mm. wide, 1870 mm. length, and 380 mm. high. Can support the weight of approximately

200 kg and lighter than the wood can move more easily.

Funeral services injections

This is a corpse inject service for keep its not be rotten about this service will provide

in the close area in 80 km. radius.

33


Wood flower

This is the one function for the last corpse respect in Thai style and it is good fuel in

burn.

Wreath

This is the thing which made from fresh flowers so color full use for coffin decoration

and the guest bring to show the sadness as well.

Soul invites equipment

This is some equipment have a function for invite the soul in Thai worship.

34


Product Process

The coffin, wood flower, wreath, and soul invite equipment in Sonkhal we can

produce by ourselves and we order the raw material from supplier such as honey comb paper,

fresh flowers, and etc. About service, our company will give clear information to customer

for make understanding and decision making.

For the production process: There are many processes from suppliers to our customers

following:

Process of supplier to customer

1. Find all suppliers who are the license agent.

2. Collect the name of all suppliers and information of each raw material.

3. Compare each suppliers of each raw material.

4. Selects and ordering raw material from the best supplier.

5. Receive raw material and make payment at appointment date.

6. Bring raw material to the produce product process.

7. Bring a final product to shoe in front store.

8. Sell our product to customers at front store and ordered by call.

9. Deliver product to customers.

Supplier detail

Honey comb paper

35

Project feasibility study & evaluation # O&H Honeycomb Paper Co.,Ltd. 147 Moo7 Nonghiang, Phanatnikhom, Chonburi 20140

Thailand

# Union paper tube Co.,Ltd. 522 Moo1 Thayban , Mueng, Samut Parkan 10280 Thailand

Fresh flowers and tool

# Pak Clong Talad. 42/5 Moo 12 Bangbon5 road, Nongkham, Bangkok 10160 Thailand

# Lo Chia Seng flower 332-334 Banmor road, Phanakorn, Bangkok 10200 Thailand

Wood flower

# Wife house group at Bauyai temple, Bauyai, Nakhon Ratchasima Tel. 085-7683924

Services Process

All of our service is doing with the good relationship, informally and good advices by

trained employees or expert person for get along well with our company conceptual that “We

are a special one that helps you save money and world”. Because our company base on good

quality at the cheap price that provide to customers, so our company has many service to

serve our customers to be satisfaction while the customers come to our company or when

they need to get help. There are two kinds of service process: General Services and Call

center Services.

For general services process, it is the process that the customers come to our store for

buy or get some help follow:

1. Train all employees with training course by the expert person.

2. Serve customers with friendly service follow object of each customer.

2.1 The customer who come to buy our product.

2.1.1 Help our customer by give more information

2.1.2 Check the order and products with customer.

2.1.3 Make payment to customer.

2.1.4 Deliver product to customer.

2.2 Customer who want to take some advice or have some trouble.

2.2.1 Ask the trouble from customer.

36

Project feasibility study & evaluation 2.2.2 Answers with clearly and politeness the customer’ trouble as much as

possible.

For call center service processes, the company has call center service to serve

customer who call to our company for check the product, order product, and need some help.

This service process follows:

1. The company will establish the call center service and our company will use the

trained employees to be call center too. In addition, the company will make the

advertising to promote that our company has call center to serve and help the

customers.

2. When we receives the call from customers, our service process will separate by

the customers follow:

- The customer who want to check the price, our company will get update information

to customers by employees can check the price and stock from computer.

- The customer who want to order the product, the process of this service is follow:

Firstly, our employee received the customers’ order and then, employees will check

the price and stock from computer and tell customer, if customer order product the

employee will require customer address for deliver. The company will send the

product to customer for free in 80 km. if more than 80 km. we will charge 10 baht per

1 km.

Location

The location is very importance for our company, it can make maximum benefit .our

company has office and factory .our office located at Songkhla province. It is easy for the

costumers to contact us. Because this location is on the main road and near the temple then

when the costumers want to buy our product it is very easy to transportation. For the long

term management, we will expand our business and find new location to standard area.

Example of location of our company:

37


Store layout

Example of store layout:

Cosy coffin shop is dividing in to tree part that the first part is store, the second part is

warehouse and office, and the third part is factory. We arrange a store that is located in front

38

Project feasibility study & evaluation of the area for show the sample product. Warehouse is located in the back of store within

warehouse we separate in two part area it is office and warehouse for save a space. And the

factory is located in back of warehouse. It is near together so it is easy to manage products.

We concern about the cleaning and light of store and warehouse.

Machine, Tool, and Equipment:

Type Picture

Honey comb paper

Melt Gun

Fabric

Color Painting

Flowers

Hammer and Nail

39


Drill

Screwdriver kit

Light bulb

Computer

Printer

Telephone and Fax

Refrigerator

Chair

40


Table

Hanger Electrical Fan

Extinguisher

Shelf

Retail management and inventory

Our store have to design of the modern through visual communication, color,

collocation that customers’ perceptual and emotion response that affect their purchase

behavior.

Color of store: We using mellow color that make customer to be calm, we would like to

design color that appropriate with the product. We will use a dull and light color.

Convenience: this factor is most important to customer then we have concern about service

and packing. The store are collocation that easy for do everything. We have transport service

to customer that so convenience for the customer.

Cleanness: We have housekeeper who always clean our store. Our stores are collocation that

easy for clean.

Decoration: In and around store are decorated by tree and flower.

Cosy Coffin Company ธุรกิจโลงศพจำ กัด โทร 084-0435653

41


Logistic management

Logistics is the management of the flow of the goods, information and other

resources in a repair cycle between the point of origin and the point of consumption in order

to meet the requirements of customers. Logistics involves the integration of information,

transportation, inventory, warehousing, material handling, and packaging, and occasionally

security. Logistics is a channel of the supply chain which adds the value of time and place

utility. Today the complexity of production logistics can be modeled, analyzed, visualized

and optimized by plant simulation software. For our logistic management we will transform

our product in many ways. It depend on the customers .in addition, our company will

coordinate with other association or place of costumers. Our company has the promotion and

services for the costumers such delivery product. It can make to easy for the customer. The

company will send the product to customer for free in 80 km. if more than 80 km. we will

charge 10 baht per 1 km within Songkhla. In addition we are wholesaler to transport the order

to retailer in the three southern border provinces of Thailand as well.

Organization Management

Logo of Cosy Coffin Company:

This advertisement is wide 6 Meters and height 1 Meters. It is set up under the roof in

front of our company. There are name of our company, telephone contract, and logo of our

company. Our logo composes of our company’s abbreviation (CCC) for background; our

company chooses pink color and white front because it is easy to memorable and clearly.

Employee:

http://en.wikipedia.org/wiki/Supply_chain

http://en.wikipedia.org/wiki/Security

http://en.wikipedia.org/wiki/Packaging

http://en.wikipedia.org/wiki/Warehousing

http://en.wikipedia.org/wiki/Inventory

http://en.wikipedia.org/wiki/Transportation

http://en.wikipedia.org/wiki/Spare_part#Repair_cycle

http://en.wikipedia.org/wiki/Information

http://en.wikipedia.org/wiki/Good_(economics)

42

Project feasibility study & evaluation Employee this-is, the people who are important to our business because employee are

the people that will enable businesses to achieve our goals.

Top Manager: 1 person

Male Age more than 28 years

Bachelor’s Degree in business administration or related fields

More experiences and High Creativity

Good personality and Good communication in Thai and English

Accountant: 1 person

Female Age more than 25 years

Bachelor’s degree [Accounting Management]

Experienced in accounting 2-3 years before

Know very well in tax

Good computer skills

Transportation Manager: 1 person

Male Age between 28-45 years

Secondary school education or High school education

High Responsibility and strong personality

More experienced and know very well in the three southern border provinces map

Customer Assistant: 1 person

Male Age between 28-45 years

High school education

Good personally

43

Project feasibility study & evaluation Good experience in sale and communication in Thai and English

Housekeeper: 1 person

Male and Female Age between 18-35 years

Secondary school education

Having an industrious

Skilled craftsman: 4 peoples

3 Male, 1 Female Age between 25-50 years

Secondary school education or High school education [Building contractor]

High Responsibility and strong personality

More experience in construction and design.

Organization Chart:

Top Manager:

Top Manager

Accountant Transportation

Manager

Customer

Assistant

Housekeeper Skilled craftsman

44

Project feasibility study & evaluation Top Manager is very important in terms of its design strategy and management

overall of company. Therefore, they will receive information of all departments were also

determined and the development of strategies to make the company has more profitable.

Accountant:

Accountant is responsible for collecting data about the number of products sold, the

number of equipment and supplies purchased from every department to analyze and record

data for evaluate the situation of Cosy Coffin Company. Moreover, all details must be

reported to top manager for the company's strategic development.

Transportation Manager:

Transportation Manager is responsible for shipping to the customer, place of customer

and knows about mapping the three southern border provinces. Therefore, they will be take

care the product and friendly service for every customer.

Customer Assistant:

Customer Assistant is the first to meet with clients and detailed description of the

product. Therefore, meet customer needs or wants, good service and good information for

customer decision and then we will receive feedback from customer for improves our

performance. The store will have trained staff to ensure performance.

Housekeeper:

Responsible is cleaning the office and the place for made the product. Moreover,

Housekeeper needs to do these for good atmosphere of shop because cleanliness is very

important in the eyes of customers and has some service to customer for increase satisfaction

of customer.

Skilled craftsman:

Carpenter is a person who can design and build honeycomb paper coffin for the store

to send to the three southern border provinces. Moreover, Can tell more about the structure of

45

Project feasibility study & evaluation the honeycomb paper coffin and will be a consultant of customers who have questions about

honeycomb paper coffin or outcome to increase the customers’ satisfaction.

Cost of Investment

Pre – operation cost Amount

Land and building 3,980,000

Office equipment 99,201

Total 4,079,201

Investment Cost

Office equipment

Office equipment Quatity Price Amount

Depreciatio

n

Annual

Dep.

Monthly

Dep.

Melt Gun 4 199 796 3 265 22

Hammer 4 3,500 14,000 3 4,666 388

Drill 2 4,500 9,000 3 3,000 250

Screwdriver kit 1 2,200 2,200 3 733 61

Light bulb 5 185 925 5 185 15

Computer 1 15,000 15,000 5 3,000 250

Printer 1 3,490 3,490 5 698 58

Telephone & Fax 1 7,450 7,450 5 1,490 124

Refrigerator 1 5,890 5,890 5 1,178 98

Chair 4 2,480 9,920 5 1,984 165

46

Project feasibility study & evaluation Table 2 2,950 5,900 5 1,180 98

Hanger Electrical

Fan 3 750 2,250 5 450 37

Extinguishes 2 690 1,380 5 276 23

Shelf 3 8,500 25,500 5 5,100 425

Miscellaneous 1 2,500 2,500 3 833 69

Five year - Depreciation

First year

Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Building 3,980,000 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 132,672

Inventory 245,000 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 12,276

Pickup car 549,000 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 68,628

Computer 15,000 250 250 250 250 250 250 250 250 250 250 250 250 3,000

Office

equipment 99,201 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 19,836

Total 4,888,201 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 236,412

Second year


Building 3,847,328 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 132,672

Inventory 232,724 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 12,276

Pickup car 480,372 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 68,628

Computer 12,000 250 250 250 250 250 250 250 250 250 250 250 250 3,000

Office

equipment 79,365 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 19,836

Total 4,651,789 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 236,412

Third year

Investmen

t Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Building 3,714,656 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 132,672

Inventory 220,448 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 12,276

Pickup car 411,744 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 68,628

47


Computer 9,000 250 250 250 250 250 250 250 250 250 250 250 250 3,000

Office

equipment 59,529 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 19,836

Total 4,415,377 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 236,412

Fourth year


Building 3,581,984 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056

132,67

2

Inventory 208,172 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 12,276

Pickup car 343,116 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 68,628

Computer 6,000 250 250 250 250 250 250 250 250 250 250 250 250 3,000

Office

equipment 39,693 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 19,836

Total 4,178,965 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701

236,41

2

Fifth year


Building 3,449,312 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056 11,056

132,67

2

Inventory 195,896 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 12,276

Pickup car 274,488 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 5,719 68,628

Computer 3,000 250 250 250 250 250 250 250 250 250 250 250 250 3,000

Office

equipment 19,857 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 1,653 19,836

Total 3,942,553 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701

236,41

2

Operating Cost

Raw material:

Beginning raw material inventory -

Purchase of raw material 39,400

Raw material available for use 39,400

Ending raw material inventory -

48

Project feasibility study & evaluation Material use in product 39,400

Direct labor cost:

Direct labor 37,500

Overhead:

Total manufacturing overhead 10,396

Management Analysis

Administration cost:

Electricity 700/month

Telephone 600/month

Water 200/month

Chapter 5

Financial Analysis

This chapter is going to detail about financial analysis, we analyze three statements that

are very important for make decision. In each statement, it uses monthly based in five years.

Cosy Coffin Company

Income Statement

49

Project feasibility study & evaluation First year (Monthly base)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Sale 56,300 61,400 65,400 75,500 80,200 74,500 82,200 79,500 80,400 81,700 83,700 91,700Cost of

goods sold-59,400 -59,400 -59,400 -59,400 -59,400 -59,400 -59,400 -59,400 -59,400 -59,400 -59,400 -59,400

Wages Expense

-37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500

Depreciation

-19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701

Administra tion

-1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500

EBIT -61,801 -56,701 -52,701 -42,601 -37,901 -43,601 -35,901 -38,601 -37,701 -36,401 -34,401 -26,401

Interest -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667

Taxes 0 0 0 0 0 0 0 0 0 0 0 0

Net income -73,468 -68,368 -64,368 -54,268 -49,568 -55,268 -47,568 -50,268 -49,368 -48,068 -46,068 -38,068

Cosy Coffin Company

Income Statement

Second year (Monthly base)


Sale 93,000 99,600 102,600 114,700 112,300 133,600 125,800 121,000 136,400 127,700 132,800 138,800Cost of

goods sold-59,400 -59,400 -59,400 -59,400 -59,400 -59,400 -59,400 -59,400 -59,400 -59,400 -59,400 -59,400

Wages Expense

-37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500

Depreciation

-19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701

Administra tion

-1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500

EBIT -25,101 -18,501 -15,501 -3,401 -5,801 15,499 7,699 2,899 18,299 9,599 14,699 20,699

Interest -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667

Taxes 0 0 0 0 0 0 0 0 0 0 0 0

Net income -36,768 -30,168 -27,168 -15,068 -17,468 3,832 -3,968 -8,768 6,632 -2,068 3,032 9,032

Cosy Coffin Company

Income Statement

Third year (Monthly base)


Sale191,100 198,700 209,700 215,400 219,400 230,600 228,600 232,500 247,800 238,900 240,300 247,500

Cost of goods sold

-57,000 -58,450 -58,560 -57,000 -58,000 -58,540 -56,000 -56,040 -57,100 -57,400 -57,400 -58,400

Wages Expense

-37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500

Depreciation -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701

Administra tion

-1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500

50

Project feasibility study & evaluation EBIT 75,399 81,549 92,439 99,699 102,699 113,359 113,899 117,759 131,999 122,799 124,199 130,399

Interest -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667

Taxes -8,252 -8,252 -8,252 -8,252 -8,252 -8,252 -11,184 -11,184 -11,184 -11,184 -11,184 -11,184

Net income 55,480 61,630 72,520 79,780 82,780 93,440 91,048 94,908 109,148 99,948 101,348 107,548

Cosy Coffin Company


Sale258,000 270,100 284,600 292,700 307,100 316,200 317,400 299,500 323,800 318,600 314,600

334,600

Cost of goods sold

-60,000 -65,450 -68,560 -67,000 -68,000 -68,540 -66,000 -66,040 -67,100 -67,400 -67,400 -68,400

Wages Expense

-37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500

Depreciation

-19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701

Administra tion

-1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500

EBIT 139,299 145,949 157,339 166,999 180,399 188,959 192,699 174,759 197,999 192,499 188,499 207,499

Interest -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667

Taxes -15,149 -15,149 -15,149 -15,149 -15,149 -15,149 -18,065 -18,065 -18,065 -18,065 -18,065 -18,065

Net income 112,483 119,133 130,523 140,183 153,583 162,143 162,967 145,027 168,267 162,767 158,767 177,767

Income Statement

Fourth year (Monthly base)

Cosy Coffin Company

Income Statement

Fifth year (Monthly base)


Sale 326,500 350,600 357,700 354,300 378,900 386,900 390,000 370,900 393,000 386,500 385,900 393,300Cost of

goods sold-70,000 -75,450 -70,000 -75,350 -70,000 -74,450 -76,000 -76,450 -76,700 -76,650 -76,090 -77,450

Wages Expense

-37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500 -37,500

Depreciation -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701 -19,701

Administra tion

-1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500 -1,500

51

Project feasibility study & evaluation EBIT 197,799 216,449 228,999 220,249 250,199 253,749 255,299 235,749 257,599 251,149 251,109 257,149

Interest -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667 -11,667

Taxes -21,624 -21,624 -21,624 -21,624 -21,624 -21,624 -23,967 -23,967 -23,967 -23,967 -23,967 -23,967

Net income 164,508 183,158 195,708 186,958 216,908 220,458 219,665 200,115 221,965 215,515 215,475 221,515

Cosy Coffin Company

Cash Flow

First year (Monthly base)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecOperating Cash Flow

Net income -73,468 -68,368 -64,368 -54,268 -49,568 -55,268 -47,568 -50,268 -49,368 -48,068 -46,068 -38,068

Depreciation 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701

Change in inventory -12,500 0 0 0 0 0 0 0 0 0 0 0Change in accrued tax

0 0 0 0 0 0 0 0 0 0 0 0

52

Project feasibility study & evaluation expenseTotal

operating cash flow -66,267 -48,667 -44,667 -34,567 -29,867 -35,567 -27,867 -30,567 -29,667 -28,367 -26,367 -18,367Investing cash flow

Purchase in fixed assets

-4,079,201 0 0 0 0 0 0 0 0 0 0 0

Total investing cash flow

-4,079,201 0 0 0 0 0 0 0 0 0 0 0

Financing cash flow Proceed

from long term

borrowing 6,019,701 0 0 0 0 0 0 0 0 0 0 0Repayment

of debt principle 0.00

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

Total financing cash flow 6,019,701 -35666.66 -35666.66 -35666.66 -35666.66 -35666.66 -35666.66 -35666.66 -35666.66 -35666.66 -35666.66 -35666.66

Net increase (decrease) in

cash 1,854,532 -84,334 -80,334 -70,234 -65,534 -71,234 -63,534 -66,234 -65,334 -64,034 -62,034 -54,034Cash at

beginning of period 1,854,532 1,770,198 1,689,864 1,619,630 1,554,096 1,482,862 1,419,328 1,353,094 1,287,760 1,223,726 1,161,692

Cash at end of period 1,854,532 1,770,198 1,689,864 1,619,630 1,554,096 1,482,862 1,419,328 1,353,094 1,287,760 1,223,726 1,161,692 1,107,658

Cosy Coffin Company

Cash Flow


Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecOperating Cash Flow

Net income -36,768 -30,168 -27,168 -15,068 -17,468 3,832 -3,968 -8,768 6,632 -2,068 3,032 9,032

Depreciation 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701

Change in inventory

12,500 13,000 13,500 12,000 -12,500 13,500 13,000 -13,500 12,500 13,500 -12,500 13,000

53

Project feasibility study & evaluation Change in accrued tax

expense 0 0 0 0 0 0 0 0 0 0 0 0Total

operating cash flow -4,567 2,533 6,033 16,633 -10,267 37,033 28,733 -2,567 38,833 31,133 10,233 41,733Investing cash flow

Purchase in fixed assets 0 0 0 0 0 0 0 0 0 0 0 0

Total investing cash flow 0 0 0 0 0 0 0 0 0 0 0 0Financing cash flow Proceed

from long term

borrowing 0 0 0 0 0 0 0 0 0 0 0 0Repayment

of debt principle

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

Total financing cash flow

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66


cash -40,234 -33,134 -29,634 -19,034 -45,934 1,366 -6,934 -38,234 3,166 -4,534 -25,434 6,066Cash at

beginning of period 1,107,658 1,067,424 1,034,290 1,004,656 985,622 939,688 941,054 934,120 895,886 899,052 894,518 869,084

Cash at end of period 1,067,424 1,034,290 1,004,656 985,622 939,688 941,054 934,120 895,886 899,052 894,518 869,084 875,150

Cosy Coffin Company

Cash Flow



Operating Cash Flow

Net income 55,480 61,630 72,520 79,780 82,780 93,440 91,048 94,908 109,148 99,948 101,348 107,548

Depreciation 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701

54

Project feasibility study & evaluation Change in inventory

13,000 13,500 12,000 -12,500 -13,000 12,500 13,000 13,500 12,000 -12,500 12,500 13,000

Change in accrued tax

expense

-8,252 -8,252 -8,252 -8,252 -8,252 -8,252 -11,184 -11,184 -11,184 -11,184 -11,184 -11,184

Total operating cash flow 79,929 86,579 95,969 78,729 81,229 117,389 112,565 116,925 129,665 95,965 122,365 129,065Investing cash flow



from long term


of debt principle

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66


-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66


cash 44,262 50,912 60,302 43,062 45,562 81,722 76,898 81,258 93,998 60,298 86,698 93,398Cash at

beginning of period 875,150 919,412 970,324 1,030,626 1,073,688 1,119,250 1,200,972 1,277,870 1,359,128 1,453,126 1,513,424 1,600,122

Cash at end of period 919,412 970,324 1,030,626 1,073,688 1,119,250 1,200,972 1,277,870 1,359,128 1,453,126 1,513,424 1,600,122 1,693,520

Cosy Coffin Company

Cash Flow



Operating Cash Flow

55

Project feasibility study & evaluation Net income

112,483 119,133 130,523 140,183 153,583 162,143 162,967 145,027 168,267 162,767 158,767 177,767

Depreciation 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701

Change in inventory

12,500 13,000 13,500 12,000 -12,500 13,500 13,000 -13,500 12,500 13,500 -12,500 13,000


expense

-15,149 -15,149 -15,149 -15,149 -15,149 -15,149 -18,065 -18,065 -18,065 -18,065 -18,065 -18,065




from long term


of debt principle

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66


-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66


cash 93,868 101,018 112,908 121,068 109,968 144,528 141,936 97,496 146,736 142,236 112,236 156,736Cash at

beginning of period 1,693,520 1,787,388 1,888,406 2,001,314 2,122,382 2,232,350 2,376,878 2,518,814 2,616,310 2,763,046 2,905,282 3,017,518


Cosy Coffin Company

Cash Flow



Operating Cash Flow

56

Project feasibility study & evaluation Net income 164,508 183,158 195,708 186,958 216,908 220,458 219,665 200,115 221,965 215,515 215,475 221,515

Depreciation 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701 19,701

Change in inventory

13,000 13,500 12,000 -12,500 -13,000 12,500 13,000 13,500 12,000 -12,500 12,500 13,000


expense

-21,624 -21,624 -21,624 -21,624 -21,624 -21,624 -23,967 -23,967 -23,967 -23,967 -23,967 -23,967




from long term


of debt principle

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66


-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66

-35,666.66


cash 139,918 159,068 170,118 136,868 166,318 195,368 192,732 173,682 194,032 163,082 188,042 194,582Cash at

beginning of period 3,174,254 3,314,172 3,473,240 3,643,358 3,780,226 3,946,544 4,141,912 4,334,644 4,508,326 4,702,358 4,865,440 5,053,482


Cosy Coffin Company

Balance Sheet

First year (Monthly base)


57

Project feasibility study & evaluation Asset

Current Assets Cash

1,854,5321,770,19

8 1,689,864 1,619,6301,554,09

6 1,482,8621,419,32

8 1,353,0941,287,76

0 1,223,7261,161,69

2 1,107,658 Acc.

receivable 0 0 0 0 0 0 0 0 0 0 0 0 Inventory

12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500Fixed Assets

Net plant

and equipment 4,079,201

4,079,201 4,079,201 4,079,201

4,079,201 4,079,201

4,079,201 4,079,201

4,079,201 4,079,201

4,079,201 4,079,201

Total Assets5,946,233

5,861,899 5,781,565 5,711,331

5,645,797 5,574,563

5,511,029 5,444,795

5,379,461 5,315,427

5,253,393 5,199,359

Liability and Equity

Liabilities

Acc. payable 0 0 0 0 0 0 0 0 0 0 0 0 Taxes payable 0 0 0 0 0 0 0 0 0 0 0 0Fixed

Liability Long-term

debt 6,019,7015,974,03

4 5,968,068 5,952,1025,936,13

6 5,920,1705,904,20

4 5,888,2385,872,27

2 5,856,3065,840,34

0 5,824,374Total

Liabilities 6,019,7015,974,03

4 5,968,068 5,952,1025,936,13

6 5,920,1705,904,20

4 5,888,2385,872,27

2 5,856,3065,840,34

0 5,824,374Equity

Retained earning

-73,468

-112,135

-186,50

3 -240,771 -290,339 -345,607 -393,175 -443,443 -492,811 -540,879 -586,947 -625,015Total Equity

-73,468 -112,135 -186,503 -240,771 -290,339 -345,607 -393,175 -443,443 -492,811 -540,879 -586,947 -625,015Total

Liabilities and Equity 5,946,233

5,861,899 5,781,565 5,711,331

5,645,797 5,574,563

5,511,029 5,444,795

5,379,461 5,315,427

5,253,393 5,199,359

Cosy Coffin Company

Balance Sheet


58

Project feasibility study & evaluation Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Asset

Current Assets Cash

1,067,4241,034,29

0 1,004,656 985,622 939,688 941,054 934,120 895,886 899,052 894,518 869,084 875,150 Acc.


12,500 25,500 39,000 51,000 38,500 52,000 65,000 51,500 64,000 77,500 65,000 78,000Fixed Assets

Net plant


4,079,201 4,079,201 4,079,201

4,079,201 4,079,201

4,079,201 4,079,201

4,079,201 4,079,201

4,079,201 4,079,201


5,138,991 5,122,857 5,115,823

5,057,389 5,072,255

5,078,321 5,026,587

5,042,253 5,051,219

5,013,285 5,032,351


Liabilities

Acc. payable 0 0 0 0 0 0 0 0 0 0 0 0 Taxes payable

0 0 0 0 0 0 0 0 0 0 0 0

Fixed Liability

Long-term debt 5,808,408

5,792,442 5,776,476 5,760,510

5,744,544 5,728,578

5,712,612 5,696,646

5,680,680 5,664,714

5,648,748 5,632,782

Total Liabilities 5,808,408

5,792,442 5,776,476 5,760,510

5,744,544 5,728,578

5,712,612 5,696,646

5,680,680 5,664,714

5,648,748 5,632,782

Equity

Retained earning -649,283 -653,451 -653,619 -644,687 -687,155 -656,323 -634,291 -670,059 -638,427 -613,495 -635,463 -600,431

Total Equity-649,283 -653,451 -653,619 -644,687 -687,155 -656,323 -634,291 -670,059 -638,427 -613,495 -635,463 -600,431

Total Liabilities and Equity 5,159,125

5,138,991 5,122,857 5,115,823

5,057,389 5,072,255

5,078,321 5,026,587

5,042,253 5,051,219

5,013,285 5,032,351

Cosy Coffin Company

Balance Sheet


59


Asset

Current Assets Cash

919,412 970,324 1,030,626 1,073,6881,119,25

0 1,200,9721,277,87

0 1,359,1281,453,12

6 1,513,4241,600,12

2 1,693,520 Acc.


13,000 26,500 38,500 26,000 13,000 25,500 38,500 52,000 64,000 51,500 64,000 77,000Fixed Assets

Net plant


4,079,201 4,079,201 4,079,201

4,079,201 4,079,201

4,079,201 4,079,201

4,079,201 4,079,201

4,079,201 4,079,201


5,076,025 5,148,327 5,178,889

5,211,451 5,305,673

5,395,571 5,490,329

5,596,327 5,644,125

5,743,323 5,849,721


Liabilities


8,252 8,252 8,252 8,252 8,252 8,252 11,184 11,184 11,184 11,184 11,184 11,184

Fixed Liability


5,600,850 5,584,884 5,568,918

5,552,952 5,536,986

5,521,020 5,505,054

5,489,088 5,473,122

5,457,156 5,441,190


5,609,102 5,593,136 5,577,170

5,561,204 5,545,238

5,532,204 5,516,238

5,500,272 5,484,306

5,468,340 5,452,374

Equity

Retained earning -613,455 -533,077 -444,809 -398,281 -349,753 -239,565 -136,633 -25,909 96,055 159,819 274,983 397,347

Total Equity-613,455 -533,077 -444,809 -398,281 -349,753 -239,565 -136,633 -25,909 96,055 159,819 274,983 397,347


5,076,025 5,148,327 5,178,889

5,211,451 5,305,673

5,395,571 5,490,329

5,596,327 5,644,125

5,743,323 5,849,721

Cosy Coffin Company

Balance Sheet


60


Asset

Current Assets Cash

1,787,3881,888,40

6 2,001,314 2,122,3822,232,35

0 2,376,8782,518,81

4 2,616,3102,763,04

6 2,905,2823,017,51

8 3,174,254 Acc.


12,500 25,500 39,000 51,000 38,500 52,000 65,000 51,500 64,000 77,500 65,000 78,000Fixed Assets

Net plant


4,079,201 4,079,201 4,079,201

4,079,201 4,079,201

4,079,201 4,079,201

4,079,201 4,079,201

4,079,201 4,079,201


5,993,107 6,119,515 6,252,583

6,350,051 6,508,079

6,663,015 6,747,011

6,906,247 7,061,983

7,161,719 7,331,455


Liabilities


15,149 15,149 15,149 15,149 15,149 15,149 18,065 18,065 18,065 18,065 18,065 18,065

Fixed Liability


5,409,258 5,393,292 5,377,326

5,361,360 5,345,394

5,329,428 5,313,462

5,297,496 5,281,530

5,265,564 5,249,598


5,424,407 5,408,441 5,392,475

5,376,509 5,360,543

5,347,493 5,331,527

5,315,561 5,299,595

5,283,629 5,267,663

Equity

Retained earning 438,716 568,700 711,074 860,108 973,542 1,147,536

1,315,522 1,415,484

1,590,686 1,762,388

1,878,090 2,063,792

Total Equity438,716 568,700 711,074 860,108 973,542 1,147,536

1,315,522 1,415,484

1,590,686 1,762,388

1,878,090 2,063,792


5,993,107 6,119,515 6,252,583

6,350,051 6,508,079

6,663,015 6,747,011

6,906,247 7,061,983

7,161,719 7,331,455

Cosy Coffin Company

Balance Sheet


61


Asset

Current Assets

Cash 3,314,172 3,473,240 3,643,358

3,780,226 3,946,544 4,141,912

4,334,644 4,508,326 4,702,358

4,865,440 5,053,482 5,248,064

Acc. receivable 0 0 0 0 0 0 0 0 0 0 0 0

Inventory13,000 26,500 38,500 26,000 13,000 25,500 38,500 52,000 64,000 51,500 64,000 77,000

Fixed Assets

Net plant and equipment 4,079,20

1 4,079,201 4,079,2014,079,20

1 4,079,201 4,079,2014,079,20

1 4,079,201 4,079,2014,079,20

1 4,079,201 4,079,201Total Assets 7,406,37

3 7,578,941 7,761,0597,885,42

7 8,038,745 8,246,6138,452,34

5 8,639,527 8,845,5598,996,14

1 9,196,683 9,404,265


Liabilities

Acc. payable0 0 0 0 0 0 0 0 0 0 0 0

Taxes payable 21,624 21,624 21,624 21,624 21,624 21,624 23,967 23,967 23,967 23,967 23,967 23,967

Fixed Liability

Long-term debt

5,233,632 5,217,666 5,201,700

5,185,734 5,169,768 5,153,802

5,137,836 5,121,870 5,105,904

5,089,938 5,073,972 5,058,006

Total Liabilities 5255256 5239290 5223324 5207358 5191392 5175426 5161803 5145837 5129871 5113905 5097939 5081973

Equity

Retained earning

2,151,117 2,339,651 2,537,735

2,678,069 2,847,353 3,071,187

3,290,542 3,493,690 3,715,688

3,882,236 4,098,744 4,322,292

Total Equity 2,151,117 2,339,651 2,537,735

2,678,069 2,847,353 3,071,187

3,290,542 3,493,690 3,715,688

3,882,236 4,098,744 4,322,292

Total Liabilities and

Equity7,406,37

3 7,578,941 7,761,0597,885,42

7 8,038,745 8,246,6138,452,34

5 8,639,527 8,845,5598,996,14

1 9,196,683 9,404,265

NPV = initial investment + CFn/(1+r)^n

NPV = 4,423,582

Payback period = 3.8 year

Profit Area

Loss Area

Break-even point (492 units or 550,010 baht in sales)

62

Project feasibility study & evaluation IRR = 39 %

Break-even point

650,000

Bahts 600,000

550,000

500,000

450,000

400,000

200 250 300 350 400 450 500

Units

Break-even point in total sales baht

Break-even point in total sales baht = Fixed expenses/CM ratio

= 451,008 Baht/82%

Break-even sales = 550,010 Baht

Break-even point in units sold

Break-even point in units sold = Fixed expenses/CM per unit

= 451,008 Baht/916 Baht per unit

= 492 units

Chapter 6

Risk Management

Risk Management:

63

Project feasibility study & evaluation Risks occur with every company, but these risks will become effective or not, it

depends on the plan on addressing the risks and ways to modify risk.

Cosy Coffin Company has evaluated conditions that may pose a risk, and ways to

solve the problem of those risks such as the main risk may arise from terrorist groups in the

three southernmost provinces that shipment delays, causing loss of life or property of the

company. The risk of new competitors and existing competitors in the area, and risk from

supplier etc.

Risk from competitors:

The risk of competition is a growing number of new competitors into the market

opened in the same area and competition was open in the same area may be expanded or

branches as well as increased promotion to a wider variety. In addition, problems have a

direct impact on the company's market share. Therefore, our company has a marketing plan to

promote the products, design new advertising and new promotion increase the appeal to

customers and then customer are buy our products more competitor Moreover, the different

materials used in manufacturing and efficiently service our company will be popular. So, our

company's market share has increased the ratio.

Risk from supplier:

The risks may be due to shipping errors, goods in short supply, goods damaged while

in transit or poor quality goods. Moreover, risks may affect our company because the loss of

credit of the income statements. So our analysis is the source of the problem and corrects the

problem by checking every product before shipping, production to meet demand, the packing

and manufacturing efficiency.

Risk from price decrease on coffin product:

Reducing the price of goods at risk of revenue that is if the price decreases and poor

quality of goods y and it make the customers to choose products that are more expensive but

64

Project feasibility study & evaluation high quality of products or if the product is expensive but low quality may be the result in

customers buying goods with reasonable price and quality. Therefore, we focus on the quality

of the product is standard along with a reasonable price and make sure customers are buy our

products.

Risk from fire

This risk may happen from careless of company and deteriorates of equipments or

electronic equipment. If risk happens, it has more effect to lose asset and life

However, our company will prevent fire risk by purchase fire insurance for decrease

losing and increase confident. Moreover, our company will check electrical equipment every

year, and train employees carefully and not allow employees to smoke.

Risk from the substitutes product

The substitutes that like our product make from wood from natural. The substitutes

effect to decrease our Quantity of sales.

However, our company will offering promotion and advertising beside the expert

suggestion how to use for suitable then, the company will get increase quantity of sale and

decrease effect from substitute product.

Risk from theft

There are many thefts in Songkhla because It’s the travelling province, so many

travelers and foreigner that make high level of theft problems. If burglary happens it will

cause damage to and inventory and to the profit of the company. Therefore to prevent the

damage that might happen, the shop buys an insurance which cover the damage of burglary.

With the insurance, the shop can be sure to protect theft, along with other accidents that

might happen, including fire, hurricane, flood, and all other disasters.

65

Project feasibility study & evaluation Risk from employee error

As for all businesses that focus on service concept, employees are a critical factor that

can affect a business greatly. If a salesperson ignores the customers, or if an advisory expert is

impolite to the customers, it will cause negative effects on the image of the company greatly.

Therefore, in order to prevent these risks, the company will select people with a good service

mind nature, and will train them continuously to give good service to customers. The

manager will monitor the employees’ performance closely to prevent the error.

Risk from new technology

In Cosy coffin technology can be developed over time, newly developed equipments

and chemicals might replace the older ones. If the company stock in the inventory many items

which are being replaced by new ones, old items might become out of date and become more

difficult to be sold. The company will have to follow the information and news on Cosy

coffin technology development, to always be aware whenever there is new technology item

developed. However, there organization will prefer to use equipments which they are familiar

with, so the shop will have to organize the inventory for all equipments in appropriate

proportion.

Financial Risk Analysis

Sensitivity Analysis

Best case Based case Worst case

66

Project feasibility study & evaluation NPV 5,739,882 4,423,582 3,107,282

Payback period 3.1 3.8 4.8

IRR 39 %

** Note: Best case – Sales increase by 10%

Worst case – Sales decrease by 10%

The financial risk management tells about some situation in the future in which is

Best or worst case, Investigation of what happens to NPV when only one variable is changes.

As the table above, if sale of product has increased 10%.the payback period does not

change as much if NPV decrease the payback period that change too much. However, our

company has a plan if sale of product decrease, our company will increase on price of

product following and reduce the inventory in order to decrease expense and increase cash

flow of company.

Finally, financial risk management help to suppose the situation that might be occur

in the future and how do company effect with that risk.

Chapter 7

Summary

67

Project feasibility study & evaluation For our company, we chose to target market segments in the three southern border

provinces of Thailand; why choose to invest here because this area is the death occurred

almost daily that now must import wood for coffins and make it a lot. Honeycomb paper is

lighter than the wood can move more easily. Our manufacturing located in Songkhla that is

the economy city so easy to transport raw materials and distribution, and close to the three

southern border provinces. A product design is no different from the wooden coffin, but

customers will get a cheaper price. Our company has a plan to establish any factory because

the cost of investment is cheap and it is not long time for profit return, so we try to make

product to be recognized under the brand of Cosy Coffin.

Cosy Coffin is not only the company to produce honeycomb paper coffin we also

promote and campaign on global warming is reduce about deforestation; therefore to chose

materials made from honeycomb paper produced materials to replace wood which faster

degradation and strength equal to coffin wood.

According to the global warming project, our company just to pay attention with this

situation. And then our company needs to produce the product that appropriate with the

global warming project. Because Honeycomb paper coffin is the replacement of expensive

wooden coffin. It is light, strong, recyclable, environmental-friendly. Honeycomb paper

coffins are made of honeycomb paper panel, which are lighter, cheaper

than traditional wooden coffins. To save storage space and transportation costs, honeycomb

paper coffin are made based on the concept of DIY. All components are manufactured at

factory and the end products can be easily assembled at the final destination without any

metal nails.

Employee is important part of our company; they are main point to force our

company in order to achieve a goal. The positions for employees consist of top managers,

Accountant, transportation manager, Customer Assistant, Housekeeper; Skilled craftsman.

The company sets standard and select people with sufficient skills and quality to become

employees, to execute the expected performance for the company.

Our business is the new product in the market .we have some competitor .the market

they are focus on is likely in the three southern border provinces because this area which has

68

Project feasibility study & evaluation killed almost every day the main reason from terrorism. Moreover this project can help

people who are poor can buy and used our product. Our products different from other shops

which use raw materials from honey comb paper. And we are design; quality and durability

in similar from wooden coffin but our products are lighter than products made of wood and

friendly with environment as well. Our company is currently marketing space there are small

and new, so people do not know about the properties of honeycomb paper and it made

customer uncertainty in our products.

The one that important thing is the satisfaction of the customer because the world-of

mouth communication of the customer are very important. And we will try to create the

promotion that is appropriate with the customer life style. And we are produce the main

product are coffin and we have side product to provide the customer .So when the customer

come to use our product ,they can buy or order all item that we need to used. And our

company has the standard service processing. Finally we hope that our product its can help

many people so much. In addition, in the future we will try adding a new technology or new

innovation in production process .when our businesses are successful, we will expanding our

product and created new target to all over the country. And we will try to develop our new

product and service to provide the customer as well.

Reference

69


http://en.wikipedia.org/wiki/Coffin

http://www.ipsr.mahidol.ac.th/IPSR/AnnualConference/ConferenceII/Article/

Article13.htm

http://www.thaismefranchise.com/?p=11422#more-11422

http://www.oandhhoneycombpaper.com/honeycombcoffin.html

http://xiang-an.net/index.php

http://www.matichon.co.th/news_detail.php?newsid=1289876733&grpid=no&catid=19

http://www.suriyacoffin.com/dp/donation2

http://www.ldinet.org/webboard_rename/show.php?Category=board_1&No=764


http://unionpapertube.plazathai.com/contact_us/


http://www.pakklongtarad.com/contactus.template.php?lang=th&headername=

%B5%D4%B4%B5%E8%CD%E0%C3%D2&headername=

http://www.pakklongtarad.com/contactus.template.php?lang=th&headername=%B5%D4%B4%B5%E8%CD%E0%C3%D2&headername

http://www.pakklongtarad.com/contactus.template.php?lang=th&headername=%B5%D4%B4%B5%E8%CD%E0%C3%D2&headername


http://unionpapertube.plazathai.com/contact_us/


http://www.ldinet.org/webboard_rename/show.php?Category=board_1&No=764

http://www.suriyacoffin.com/dp/donation2

http://www.matichon.co.th/news_detail.php?newsid=1289876733&grpid=no&catid=19

http://xiang-an.net/index.php


http://www.thaismefranchise.com/?p=11422#more-11422

http://www.ipsr.mahidol.ac.th/IPSR/AnnualConference/ConferenceII/Article/Article13.htm

http://www.ipsr.mahidol.ac.th/IPSR/AnnualConference/ConferenceII/Article/Article13.htm

http://en.wikipedia.org/wiki/Coffin

70


Ch.1-7 Cosy coffin company

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