Project Feasibility Pottery Design

II

Preface

The Project Feasibility Study and Evaluation Course are talking about the way to

create the new project business that can use in the real world. In this project is studying the

feasibility of pottery business in the north of Thailand, which is include nine chapters there

are the introduction of business, nature of industry, marketing feasibility, the investment cost

of business, the operating cost, the administration cost, the financial feasibility, the risk man-

agement of business and the conclusion. This project encourages investors who interested to

get knowledge and information about pottery business before makes decision to investment,

including the way to manage pottery business, it effects for investors to get the benefit.

Moreover, we have present technical about strategy management to make up this project by

use varieties of pottery. We expect this project to be usefulness for investors and their can use

this project is the first choice of decision when investors want to invest in pottery business.

Group Members

Miss Nang May Thu Aung ID.5131205222

Miss Pornpavee Worasubhakorn ID.5231203091

Miss Rattanapon Kongsong ID.5231203102

Miss Warisara Manosamoot ID.5231203108

Mr. Wichakorn Kunapoe ID.5231203111

Miss Suparat Thanathip ID.5231203121

Miss Sawitra Phonphairin ID.5231203123

Miss Yiwei Gao ID.5231203186

III

Table of Content

Preface I1

Table of Content III

Executive Summary VI

Chapter 1 Introduction 1

1.1. Background and Significance of the project 2

1.2. Project objective 2

1.3. Benefits of Project 3

1.4. Operating methods 3-4

1.5. Time frame of study 5

Chapter 2 Industry Profile 6

2.1. Nature of industry 7-8

2.2. Situation industry 9-10

2.3. Product and Service 10-12

2.4. Vision 12

2.5. Mission 12

2.6. Strategy 12

2.6.1. Corporate Level 12

2.6.2. Business Level 13

2.6.3. Functional Level 14-15

Chapter 3 Market Feasibility Study 16

3.1. Market Analysis 17

3.1.1. General Environment Analysis

17-20

3.1.2. Competition Analysis (3C Analysis) 21-29

3.2. STP Analysis 29

3.2.1. Market Segmentation 29

3.2.2. Target Market 29

3.2.3. Positioning Analysis 30

3.3. Marketing Mix Strategy 31

3.3.1. Product Strategy 31-32

3.3.2. Price Strategy 32-33

3.3.3. Place Strategy 33

IV

3.3.4. Promotion Strategy 33-34

3.4. Sales Forecast 34-45

3.5. Marketing Expense 46-49

3.6. Conclusion 50

Chapter 4 Investment Cost 51

4.1. Location 52-57

4.2. Pre-Operating Cost

58-80

4.3. Investment Cost 81-84

4.4. Depreciation 85-94

4.5. Conclusion 95

Chapter 5 Production and Operation Cost 96

5.1. Product Characteristics 97-108

5.2. Service Process 109

5.3. Logistic Management 110

5.4. Packaging 111-118

5.5. Raw Materials Cost 119-123

5.6. Direct Labor 123-129

5.7. Manufacturing Overhead 130-133

5.8. Operating Cost 134-137

5.9. Conclusion 138

Chapter 6 Administration Cost 139

6.1. The Organization Chart 140

6.2. Administration Expense 141

6.2.1. The Employee Salary 141-147

6.2.2. Rental Fee 148

6.2.3. The Cost of Facility 148-151

6.2.4. Training & Development of Employee 152

6.2.5. Total Administration Cost 153-155

6.3 Conclusion 156

Chapter 7 Financial Analysis 157

7.1. Income statement 158-162

7.2. Statement of Cash flow 163-166

7.3. Balance sheet 167-171

V

7.4. Conclusion 172

Chapter 8 Risk Management 173

8.1. External Risk 174

8.1.1. Competitor Risk 174

8.1.2. Customer Demand Risk 175

8.1.3. Political Risk 175

8.1.4. Economic Risk 176

8.1.5. Social Risk 176-177

8.1.6. Technology Risk 177

8.1.7. Environment Risk 178

8.2 Internal risk 178

8.2.1. Human resources risk 178-179

8.2.2. Marketing risk 179

8.2.3. Information risk 180

8.2.4. Operation risk 180

8.2.5. Risk of cost 180-181

8.2.6. Fire Risk 181

8.2.7. Punctuality Risk 181

8.2.8. Budget risk 181

8.2.9. Financial risk 182-242

8.3 Conclusion 243

Chapter 9 Summary 244

Summary of project feasibility study 245-251

References

Appendix

VI

Executive Summary

Nowadays, pottery industry is the popular business in Thailand and other countries

(The Thai ceramic society). For Thailand, almost the factories are located in the northern.

Because the value of pottery production is more than 300 million Baht per year, so the num-

ber of pottery business increase all the time. Pottery Design focuses on serving commercial

premium products to consumer and staying on professionalism. We will follow the vision

through serving differentiate products with superior quality. Consumer can perceive the value

from those products. We concern in Growth strategy which is suitable for newly company as

Pottery Design. We serve modern style with natural resources which are safety to the health

of consumer. We target the consumer by tourists who are Thai and foreigner in Chiang Rai

and hotels& spas in Chiang Mai. From this issue, the number of tourist increases to 11.96%

from 2.98% in year 2010-2011. This causes the increasing of hotels& spa and the demand for

their decorative items will increase. Therefore, we have an opportunity to get more sales. We

also serve the premium service to consumers which may exceed their expectations. Although

consumers have to pay for our pottery in expensive, they can perceive value from product by

quality and its price. We place the products in our store at Mae-jan district, Chiang Rai where

is located with premium clay and the consumers can follow the products through company’s

website and the campaign of company at central plaza Chiang Rai on January and July of

each year. In term of financial analysis, Pottery Design has to provide the information of fi-

nancial statement analysis for the investor to make decision. We prepare financial analysis for

evaluating formulating plans and policies for the future. Therefore, we always need to eva-

luate our performance and effectiveness to realize the company's goal in the past for investor

to know us. We are a newly company which is well in financial term. Therefore, we are a

consistent to make profit and can deal with any financial risk that will occur with the compa-

ny. In conclusion, pottery design as a newly company in pottery industry. We have competi-

tive advantages that superior from others. In addition, we plan to expand our products to the

new market in other countries especially ASEAN countries because of encouragement in

government policy. This figures that we can increase total sale when getting more markets.

1

Chapter 1

Introduction

2

1.1 Background and significance of the project

“Popular Handmade Design” Pottery is very popular in Thailand. The pottery shows

art and beautiful design to decorative. Pottery includes both decorative and home ware such

as bowl, vases, dishes, and lamps. All of pottery was made by professional potter. Pottery is

part of a larger product group called ceramics that encompasses bricks, cement, sewer pipes,

and other industrial products. Four steps are needed to make a pottery product: preparing the

clay mixture, shaping the clay, decorating and glazing the item, and firing (baking). The fir-

ing temperature gives pottery its finished appearance and its strength.

Nowadays, not only hotel like to use pottery to decorate but also home and spa. Each

piece of our pottery has been carefully crafted to sure you the maximum enjoyment. Each is

unique in it and may vary in color and size from others of its type. Pottery goes through more

than 15 painstaking steps to produce the finished design. Pieces are fired to 2380°F.

We have own shop in Chiang Rai and also serve our products to hotels and spas in

Chiang Mai. Each hotel and spas decorate by pottery such vases, lamps. According to the

trend of people which are able to buy the products for using in their places (house and busi-

ness), we want to serve the things that we expect to them as a new alternative. Also we are

confident in our design and quality of the products; therefore we want the consumers to

perceive those products that we have. In addition, pottery will lead our company to success in

doing business because we design product which are different from competitors.

1.2 Project objective

1. To summary of the feasibility of pottery business

2. To study the situation of pottery business

3. To analyze market in the business and financial risk feasibility

4. To study pottery makers and clay industry workers of Chiang Rai

5. To study locate and identify the place from operating potteries.

6. Establish an ongoing support structure for the operating potteries

3

1.3 Benefits of project

1. To learn about the situation of pottery business

2. To learn about the market and financial risk in project feasibility

3. To learn about the technical and management process in pottery business

4. To know pottery makers and clay industry workers of Chiang Rai

5. To know academic study the clay industry

6. To know the feasibility of pottery business in Chiang Rai

1.4 Operating methods

To study management in pottery business as follows:

• Background of pottery

• Define our product and service

• Support vision and mission statement of pottery

• Explain its benefits and strengths of the company

• Describe in detail the information generated from our programs and how it affects our

operation.

• Determine whether our product will be produced in-house or if it will be outsourced.

Then describe how our product will be packaged, the shipping fees and procedures,

and channels of distribution. Also include the turnaround time of our product from or-

der to delivery.

To study competition analysis and marketing feasibility as follows:

• Any unique selling features and how the product or service compares to the competi-

tion

• Analysis facilities about describing our location include the amount of square footage,

our reason for choosing a particular location. Whether our have ample parking.

• General internal and external environment

To study the technical process in pottery business as follows:

• List our principal and alternate suppliers and their location, types of goods supplied

and how materials are ordered.

• Discuss quality control procedures and all equipment or machinery used and how it

will be maintained.

4

• Explain the type of computer system and software programs used to collect and

process data about our product. Also include how our system is tested and maintained.

• Operations and management analysis.

To study the financial feasibility of pottery business as follows:

• Include ideas for product service expansion or enhancement. Discuss additional

equipment, staffing and resources needed to accommodate the changes and how our

anticipate improvements to affect our overall profits

• Our operating plan can also include product charts, Floor plans and a capital equip-

ment list. Product charts break down the features, benefits, pricing, promotion and

distribution of our product or service as compared to our top competitors. This infor-

mation helps potential investors evaluate the strengths and weaknesses of our product

or service.

• Floor plans display the work and storage space used by employees, and the capital

equipment list indexes our fixed assets: machinery, furniture, computers and other

equipment used in the production of our product or service. This list becomes very

important if looking to secure financing. It lets bankers know that our have the re-

sources to get the job done.

• Investment and Operation cost of pottery business

To study and analysis risk of pottery business in Chiang Rai

To Summary the feasibility of pottery business in Chiang Rai

5

1.5 Time frame of study

Operations Methods

November December January February

week week week week

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

To study the general of pottery business in

Chiang Rai

To study management in pottery business

To study competition analysis and marketing

feasibility

To study the technical process in pottery

business

To study the financial feasibility of pottery

business

To study and analysis risk of pottery business

in Chiang Rai

To summary the feasibility of pottery busi-

ness in Chiang Rai

6

Chapter 2

Industry Profile

7

2.1 Nature of Industry

In the past the pottery was looked its oldest and look like ancient. The earliest evi-

dence of pottery that has been found was made in the Middle East during the Neolithic Revo-

lution, about 10,000 years ago, when humans started learning to domesticate plants and ani-

mals. However, our knowledge of the past is not complete. For example, scientists discovered

a 25,000 year-old fired figurine of a woman made of clay and bone ash, called "Venus," at

Dolni Vestonice in the Czech Republic.1 The next major innovation, the pottery wheel,

emerged around 3000 B.C. in Mesopotamia. While no one knows who invented the pottery

wheel or if it was developed over time, it allowed potters to make perfectly round pottery for

the first time. The ancient Greeks made incredible pottery during the 6th and 5th centuries

B.C. We can enjoy examples of the early black and the later, more realistic red vases deco-

rated with mythological themes in museums today. By the 6th century B.C., the potters, and

sometimes the painters, signed their pieces.2 From the history the pottery that oldest of the

world was found at China according to the news China gave the world porcelain. And now it

appears that the country also gave us our first pottery. A team of Israeli, Chinese, and Ameri-

can scholars says it has found ceramic remains in a cave in China's Hunan province that are

from 15,400 to 18,300 years old. That's at least 1000 years earlier than other pottery frag-

ments from the same region, which were previously thought to be the oldest in the world.3

Figure2.1: oldest pottery of the world Figure2.2: Nowadays

Piecing pottery's past. A vessel similar to this one, now in Hunan Provincial Museum, may be

the oldest pottery yet found. Credit: Hunan Provincial Museum, * 20064

Nowadays, the pottery industry is the popular business. Almost the factories located

in north of Thailand. Lampang province has lots of pottery and ceramics factories. There are

250 companies and 100 of Small and Medium Enterprises (SMEs). The value of production is

more than 300 million baht per year. The pottery business must careful in design. The prod- 1 http://www.life123.com/hobbies/antiques-collectibles/pottery/history-of-pottery.shtml 2 http://www.historyworld.net/wrldhis/PlainTextHistories.asp?historyid=ab98 3 http://news.bbc.co.uk/2/hi/science/nature/8077168.stm 4 http://news.sciencemag.org/sciencenow/2009/06/02-01.html

http://www.life123.com/hobbies/antiques-collectibles/pottery/history-of-pottery.shtml

http://www.historyworld.net/wrldhis/PlainTextHistories.asp?historyid=ab98

http://news.bbc.co.uk/2/hi/science/nature/8077168.stm

http://news.sciencemag.org/sciencenow/2009/06/02-01.html

8

ucts should have different design to satisfy need of customers. The company has dedicated to

the improvement of quality product and services prompt delivery and continuous develop-

ment. However the important things of pottery business are the experience, creation in design

and high-skill of each potter. The pottery business is happened to serve the customers who

like to decorate the home. But, nowadays the pottery business can serve the other target

group such as hotel, spa, and Thai massage business. These groups are the important custom-

ers of our business because these groups use the pottery products to decorate their place in

much style for beautiful and interested places. Our factory and the head office located in Mae

Jan, Chaing Rai province. Because of in that places has the primary material and other im-

portant resources, it’s easy to find in the area. Pottery Design Company provides the pottery

in the different styles from our competitor. Our company concern about the high quality of

product, prices is customer can own and the different design. And our company is also pro-

ducing pottery following the satisfied design of each customer. The Doy Din Dang pottery is

the prime direct competitor of our business. The owner name is Aj. Somluck Pantiboon. He

graduated from Rajamangala University of Technology Lanna Chiangmai. He spends time to

study 4 and half years. He is a famous potter and get many reward for example he get the

third at The 19th Fletcher Challenge award Exhibition, Auckland, New Zealand.5 And the first

indirect competitor, this is the ceramic company in Lampang province. Pottery Design Com-

pany uses the color in each product from nature. It did not affected to the health when the

customer touch and bear to the sunlight if the use to decorate in the garden. Moreover, the

Pottery Design Company provides the service to our customers. Such as we have free interior

designer go to visit hotel or area that customer want to use our product. The interior designer

will plan and set the model that the pottery to suit with customer’s style or style’s in those

areas. There are the things that our company different from competitor. We have the individ-

ual shop and office to contact for production. The customers can come to see and choose the

product by themselves in our shop.

5 http://www.tourismchiangrai.com/cr/49Artists_Lanna/Somluck.html

http://www.tourismchiangrai.com/cr/49Artists_Lanna/Somluck.html

9

2.2. Situation of Industry

6 Figure2.3:The graph of export and import of ceramic product

The statistics in the graph show that the pottery and the ceramic is the popular in

Thailand and other country. The Pottery Design Company uses this statistic because the pot-

tery was classified in the group of ceramic. In December 1st – 12th, 2010 the Lampang prov-

ince has the Ceramic fair 23rd, from this festival the ceramic can get the sale is 15million baht

but they has goal just only 10 million baht.7 Pottery is the art products that use a lot of

process for production. All most step to produce the pottery by hand and from the profession-

al potter. Chiang Rai is the good location to do this business because the raw material to pro-

duce is easy to find ,this province have company that do the pottery and this company not do

the marketing, target market and design the pottery follow the customer satisfied. This com-

pany do the pottery in art design because the owner of this company is artist, he do the prod-

uct depend on feeling and art motion ,he did not care the need of customer or he sell his

product to customer is really like in his performance. And our company have a lot of indirect

competitor is the product that produce from ceramic. It is cheaper than pottery. That all our

company mentioned before is identified the way to our company will successfully. Our com-

pany has the high quality product, use the natural raw material, exotic and have feature that

difference from the other. Our potteries have two product lines. First the products decorate

such as vases, lamps and spa set. Second the product about home ware for example dishes,

bowls, spoons and teapot. Nowadays the pottery is popular to decorate the home, hotel and

spa. Our company makes the marketing strategy to fight with the competitor. Our company

has the representatives go to see the real area and present the product to customer. In addition

our company has a catalog to show many style of product. Our product not only to decorate

but also it is present, gift in importance day or any celebration. And the company has own

6 http://www.thaiceramicsociety.or.th/statistic.php 7 http://www.krobkruakao.com/

http://www.thaiceramicsociety.or.th/statistic.php

http://www.krobkruakao.com/

10

shop and factory to produce the pottery. In each pottery were design by good artist, good de-

signer, made by professional potter and controller in each process. Moreover our company

has the professional architecture to choose position to put the pottery and decorate for the

rooms of hotel, spa and house both inside and outside. From the characteristic of our pottery

is the main thing can attract the general people who have power to purchase that like to col-

lect the performance of art and purchases the pottery for decorate their home.

2.3 Product and Service

2.3.1 Product

We divide pottery into 2 types; the first is home ware products such as table ware,

tea/coffee set, bath and spa, and lamp. The second is decorative pieces such as gift item and

decorative item.

Home ware

Plate

Bowl

Spoon and Fork

11

Cup

Teapot

Decorative

Vase

Lamp

Spa set

12

2.3.2 Service

- Guarantee product in which transport products on time when we have contract with

customers and guarantee design of order that maybe demaged within 7 days

- We have decorator to design products to serve demand of consumer.

2.4 Vision

Our vision is a leading manufacturer and distributor of pottery with a focus on

commercial premium of products, and professionalism.

• Offer quality products for customer

• Satisfy distributors’ needs by offering professional product

• Trust, empower, and reward our staff to make them accountable

• Contribute to the society

2.5 Mission

Our company commits to develop and manufacture pottery with raw materials of su-

perior quality to ensure the very best and most effective product, and also we will become the

leading production of the best pottery products in Chiang Rai.

• To inspire moments of optimism by artistic.

• To get high profit when produce more products and the cost will be lower.

• To create value and make a difference.

2.6 Strategy

2.6.1 Corporate Level

“Pottery Design” is built as a new business in a field of handicraft. According to we are new-

ly in the pottery market, we concern in Growth Strategy which is necessary for business that

is developing itself to become a known company. This strategy will forward force the growth

to company. We control the processes of operating and then serve to the consumers. This is

known as vertical integration. We serve our products directly to consumers by do not need to

do with intermediate. From this way, we use forward integration for developing our business.

The purposes of using growth strategy are increasing the number of sales and market share.

Moreover, we want to minimize the cost per unit of the products and want to be survived in a

case of having many competitors in the market. We think that growth strategy will lead our

business to gain higher gross margin at the end of working period.

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

13

2.6.2 Business Strategy

Creating differentiation is an aim of Pottery Design to serve our products to consumers. We

believe that when we are different from competitors, consumer will accept our product in

their mind and have strong loyalty .We differentiate from many competitors as follow:

Style

• We have own style of products which are every pieces of products have to be modern.

Moreover, there are many patterns and colors for consumer to choose in their own prefe-

rence. Our style is a one choice for people who love to get the things that are different

and exotic from others.

Quality

• Natural resources such as clay, ashes, etc. are acceptable in our process to produce the

products. We concern in the security of using products as when consumer has a meal, the

chemical’s equipment such as plate, spoon or cup have to disappear of combination of its

residue as danger into food or water.

Packaging

• We provide the protected box for breaking of product when consumer purchases any

kind of products that we have. Also we have a special box for consumer who purchases

our product as a gift for their special one in a special occasion.

Service

• We have decorators for design the product that consumer want such as the hotel want

us to design their decorative instruments to be suitable with their hotel, we can do for

them. In other hand, the consumers who only purchase our product for using in their own

are welcomed to design the product for them too. Our employees are trained in a field of

service, thus they will be polite and kind to consumers. We also prepare a company’s

track to transfer the products to the place of consumer i.e. hotel and spa.

Price

• Although we price the product at high price, consumer will absolutely perceive the

value of product. They will not disappoint in the products when purchasing.

Place

• We place the store and factory close to the street. It is an easy way to find our store.

Method

• We use traditional method (make by hand) to establish each price of product. Thus,

the pattern or shape of pottery will be different from others.

14

2.6.3 Functional Strategy

Marketing strategy

Product

• To serve the right feature of products to the right consumers

• Concentration in quality of process to make the product

• To create the logo of company for consumer to remember us

• Differentiation style of products from competitors

• There are many products to choose for consumer in many product lines

Price

• We price of our products by skimming pricing. Due to we produce by

unique style of product, our product will be interested in the market. Also we want the

consumer perceive the quality of the product through the price. Therefore, the consumers

will absolutely purchase our products at any given price.

Place

• We serve the product that we produce directly to consumer. We don’t have agent for

selling our products. Preparing enough inventories to serve consumer at the right time.

There is front store of the company in Chiang Rai and to trade via company’s website.

• We also sell products to Hotels and spas where are in Chiang Mai.

Promotion

• Public Relation of the products by creation show in department store in Chiang Rai.

• Advertising the company website on social network such as trading website, face-

book, twitter etc.

• Providing company’s billboards along the streets in Chiang Rai.

• Providing the special campaign for special events such as Ceramic Expo etc.

Financial strategy

• Developing the structure of ratio for convenient of doing business in short and long

term investment

• To analysis the structure of investment and doing business due to growth strategy

• To plan the management of taxation that will related to the method of business

• To manage the system of acquire capital for convenient in operating business

• To plan the expenditure of investment and controls cash flows of money

15

Human resource management

• Divide the responsibilities of employees into each zone of job (put the right man to

the right job) for increasing the quality of appraisal performance

• Training is provided to employees to let them do the same standard

• To provide the good quality of equipments and be enough quantity for usage

• To prepare the appropriate and secure place for employees to do their works

16

Chapter 3

Marketing Feasibility

Study

17

3.1 Marketing Analysis

3.1.1 General Environment Analysis

Political analysis

Nowadays political situation of Thailand is still normal. We have election on 3 July

2011. Its leader Yingluck Shinawatra became the prime minister of Thailand. Thailand is

now faced with fast-changing economic and social conditions, ideas and frameworks about

administration of state affairs cannot remain unchanged. It has some political problem that

affects from previous situation such as red shirt, yellow shirt, unrest in southern Thailand and

civil war. The political is not affecting the tourism industry, according to the statistic from

department of tourism. The number of tourist is increasing upward to 11.96 percent from –

2.98 percent in year 2010 to year 2011.8 The tourists come to travel in Thailand because the

political is stronger than last year. From this situation, our business will get the gain. The

number of tourists will be affects directly to the pottery business because our target is the

tourists and tourism business such as hotel, resort, spa and the restaurant in Chaing Mai prov-

ince. The demand of pottery will increase. However, the pottery company can sell the pottery

to customers who want the pottery t to decorate the home. The entrepreneur of pottery prod-

uct can get more revenue. Then, the pottery company should careful in each step when run

the business. Our company will focus on the quality of production and also focus on the mar-

keting part. We will produce product to match with the need of customers and to keep the

customers satisfaction of product.

Figure: 3.1 the amount and the rate change of a tourist year 2005-2011

8 Information from Department of Tourism http://123.242.133.66/tourism/th/home/download_list.php?gid=4

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

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

18

Economic analysis

In the third quarter of year 2011, Thai economy grew by 3.1 percent. However, the

severe flood disaster striking Thailand since the end of the third quarter through the fourth

quarter has affected production in many sectors, especially those in industrial estates resided

in Ayutthaya and Pathumthani province, which are the main production base and suppliers of

raw material and parts for automobile, electronics, textile, shoes, food and beverages, and

rubber and plastic products. Thus, the flooding in these two provinces has interrupted the

supply chain of major industries in other provinces and in other countries. Moreover, the ef-

fect of the disaster has spread to tourism sector as many countries have issued travel warning

against entering Thailand. As a result, an expected inbound tourist is reduced to 18.8 million

persons, from the previous forecast of 19.5 million persons. NESDB adjusts the previous

2011 GDP forecasts of 3.5 - 4.0 percent, announced on August 22, 2011, to 1.5 percent, with

inflation rate of 3.8 percent.9 The movement of these economic in Thailand has affect in

many businesses that located in flooded area. There factory was flooded. The machines sys-

tem was destroyed and cannot find the raw material to support the production process. How-

ever, our business is not affected by the economic crisis with other businesses. We sell prod-

uct to tourism industries in north of Thailand. The production of our company can run

smoothly. The raw material can find in local area. So, the pottery business will grow up in the

market.

Figure: 3.2 Thai economies in Q3/2011

9 Information from Office of the National Economic and Social Development Board Information (NESDB) http://www.nesdb.go.th/Default.aspx?tabid=433

19

Social analysis

Thai society is the individualism society. In the part Thai people live in the big family

include with grandfather, grandmother, father, mother and the children. But In present people

will build the new house that separate from the old family. The government would like to

support the new family. The Cabinet on May 3, 2011, approved a mortgage incentive plan for

first-time homebuyers as proposed by the Ministry of Finance. In this plan, homebuyers can

apply for loans to purchase or build homes. Borrowers will be exempted from interest in the

first two years on mortgages for up to 30 years. Property eligible for the plan will be residen-

tial units costing up to THB3 million. According to KResearch the new mortgage incentive

will quicken buying decisions on new homes, we have raised our projection on housing loans

for 2011 to THB2,025,350-2,042,715 million, rising nicely at 8.0-9.0 percent, though still

lower than the 9.8 percent growth achieved in 2010 over 2009.10 From this situation, it has

the good effect from our business. The number of new homebuyer increasing, the demand of

pottery to decorate the home will be increase also. It is not only new buyer housing of Thail-

and but the people that have the house and love to decorate their home, restaurant and hotel.

So, the pottery business can make the good profit in Thai social.

Figure: 3.3 Demand type of new housing year 2003-2011

10 Information from KResearch, K-Econ Analysis http://www.kasikornresearch.com/

20

Technology analysis

The advancement of technology nowadays has changed the way of people communi-

cating one to another. As the business years ago, the company may only rely on the phone

line and mails to keep in contact with others, but now they can make it easier and efficiently

by using those mobile phones and text messaging features for communications. They can

now sending and receiving information to others at anytime and anywhere they want

(http://www.ictbestpractices.net). Technology is the important things of production process.

It can help company to reduce the cost and can make the profit. The pottery business would

high technology to improve the product.

Technology equipments that we using in Pottery design business include telephone, it

can easy and faster to communication between our companies with our consumers. In addi-

tion, the internet is the great technology that can help people contact in easy way. Our com-

pany also use internet to contact with other. We can find the information about our supplier,

wholesaler and competitor. Our customer can order on the website. We have the Facebook

page to build to closer relationship with our consumers. It’s very convenient and so fast. It

means that save time for customer. We use truck and container to send our product to the cus-

tomer to protect our product and to make sure we can send to them on time. Our customer

can also order through the phone. They just look at in the catalogue and they can order it. It

makes them to save time and money. They don’t need to come along to our factory and

check. Therefore, to make customer satisfy, we absolutely focus on high technology in our

business.

Internet Telephone Facebook fan page

Figure: 3.4 Technology Equipment

21

3.1.2. Competitor Analysis (3 C Analysis)

Direct Competitor analysis

1) Doy Din Dang Pottery

49 Moo 6, Tambon Nanglae, Amphoe Mueang, Chiang Rai 57100

Figure 3.5 Doy Din Dang Pottery

Located in the verdant hills 12 km north of Chiang Rai, Doy Din Dang Pottery is surrounded

by a tranquil landscape which provides both the inspiration and the natural materials for the

work. The wares reflect both the simple and complex beauty found in nature. Since the estab-

lishment of the studio in 1991, Doy Din Dang has been producing original pieces that are

both functional and decorative and adapt themselves to a contemporary lifestyle. The weak-

ness of Doy Din Dang is about difficulty to find their store.11

Figure 3.5.1 Home ware Figure 3.5.2 Decorative

11 http://www.dddpottery.com/

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

http://www.dddpottery.com/

22

2) Wieng Kalong Pottery

639 Moo 1, Mae Chedi, Wiang Pa Pao, Chiang Rai 57260, Thailand

Figure 3.6 Wieng kalong Pottery

Both Thai and foreign people accept the product of Wieng Kalong

Pottery in which they have specific style of pattern. There are good

qualities of soil provided around their area. This means that they

have enough resource for their usage. Almost of consumer buy

product as a gift. Mainly they concern in original pattern of design.

Although they have special design, people can use in diary life such

as plates, bowls. Jars and cups. Wieng kalong Pottery is located in

Wieng Pa Pao, Chiang Rai, thus it is far from the center of Chiang

Rai around 2 hour.12

12 http://www.wiang-kalong.com/

http://www.wiang-kalong.com/

23

3) Baan Celadon Ltd.

7 Moo 3 San Klang, Sankamphaeng, Chiang Mai 50130

Figure 3.7 Baan Celadon Ltd.

Celadon is a kind of handmade by a traditional process. It is a man-made and doing as a natu-

ral beautiful products.]As celadon is a man-made product which depends upon the skills and

experience of craftsmen, it is valuable. Because of its attractiveness and solidity, celadon is

used both for home decoration and everyday use. Celadon dinner set is extremely appreciated

not only for its beauty, but also for the health safety. No chemical is used for the production.

They provide table ware, dinner set, coffee mug, celadon vase, celadon classical vase, candle

stick, ashtray, gift item, celadon Lanna Thai, showcase and so on. They mainly provide their

product to Chiang Mai local people.13

4) Banpatan Terra cotta pottery

175 Moo 4 San Phak Wan, Hang-Dong district , Chiang Mai 50230

Figure 3.8 Banpatan Terra cotta pottery

13 http://www.baanceladon.com/

http://www.baanceladon.com/

24

Terra Cotta makes the products which show the traditional northern art. All goods are

hand-made for molding pottery. They have typical style of animals, dolls, vase, etc.

which focus on decoration in the garden or in the house. All products relate to the au-

thentic shape and indicate the Thai Traditional Lanna Style. In addition, they also re-

ceive orders of any kinds of products in line with terra-cotta.14

Indirect Competitors analysis

S.C. Ceramic store

At Baan Pang Ka, Amphoe Jaehom, Lampang province.

The S.C. Ceramic store has many products line, design and product line to serve the

customer. The product that same the pottery or can substitute in some product of pot-

tery but they made from ceramic example vases, dishes and the thing that decorative

home. The price is cheaper than the pottery including with the weight of product. This

company is very famous in local area, other province and export to other countries.15

Analyze & Summary the competitor.

Name of competitor Detail Competitor

1. Doy Din Dang - The positioning of product is expensive

and middle modern. The pottery from Doy

Din Dang are from the professional potter

(Aj.Somluck) he is the famous potter and

people well-know because beginning the

business in 19 years ago. The design of

14 http://www.banpatan.com/eng/index.htm 15 http://siamc34.tripod.com/

http://www.banpatan.com/eng/index.htm

http://siamc34.tripod.com/

25

product has the own feature. He uses the

natural raw-material to produce the product.

2. Wieng Kalong Pottery

-From the positioning the potter of Wieng

Kalong is luxury and more expansive. The

pottery from Wieng Kalong was accepted

by the foreign and Thai people that use the

high quality soil. All most product can use

in daily life such as dishes, bowls, spoons,

forks and etc.

3. Baan Celadon Ltd.,

-The pottery style from Baan Celadon is

very luxury and expensive because the own

technique to produce all of the pottery in

green color. No competitor can imitates or

can copy the product from this factory. But

nowadays the special technique it affect to

sale of factory because the competitor have

more choice to offer the customers. They

offer the product that the competitor cannot

imitate and use only green color in the

every product. Celadon is a kind of hand-

made by a traditional process.

4. Banpatan Terra Kotta Pottery

-The position of this factory the product not

expensive and durable. The customer can

own it. The product is suitable to decorate

general place such as restaurant. They offer

the product show the traditional northern art

and Lanna styles. The receive order was

designed by customers.

26

5. S.C. ceramic store

-It is the indirect competitor. They offer the

product from ceramic and some product can

substitute the pottery and cheaper. They can

produce a lot of quantities and not spend

long time to produce.

Customer Analysis

Pottery Design Company divides the customer into 2 groups. First group is the con-

sumers who are local consumer and tourist (Thai& foreigner) who have own style, having

high power to purchase, high status and love to decorative their place in modern style(70%).

Second; consumer who buy pottery to use in their business as hotel and Spa (30%). Our

Company will serve the products to customers satisfied.

Figure 3.9 Target market

From the statistic of tourism and tourist came to travel at Chiang Rai in year 2007 have the

Thai people 1,135,659 persons and foreigner 300,776 persons per year, it show that product

can sale in whole year and especially the high season. In addition, some customers are from

the owner of business in Hotel and spa in Chiang Mai because of from the statistic show that

in Chiang Mai has the hotel approximately 170-200 hotels and spas. In 70% of hotel and spa

was decorated by the pottery. They put it in the room, show in the front, counter including the

garden.

70%

30%Tourist

Hotel & spa

27

Competitive Analysis

Ceramic industry is an important industry for Thailand economy. Local people can

get the job from this way. This is the source that supports Thailand economy16. In 2010, sell-

ing pottery and its production tend to a little increase due to recovering of economy within

country. In addition, it is the period of stronger in budget policy of Thai government. Budget

policy tends to more practical. The economic flow within country is more increasing and let

people have higher power to purchase product that they want. From this way, there are many

pottery companies build up themselves because of stronger policy of government and demand

of consumer. Almost of them are located in northern of Thailand especially in Lampang

where is abundantly in good quality of clay, rock and material17.

Market share

We want to get market share at 18% of ceramic industry in Thailand that evaluate by

popularity of consumer according to a length of time of company’s establishment. According

to Lampang, where is the popular area that produces ceramic because of more quality re-

sources. Moreover, the policy of government is stronger, this increases ceramic industry

within Lampang due to they already have abundantly clay which is good quality, so that

Lampang is the famous and well known in ceramic market. Also Lampang began to produce

ceramic long time ago; this is a good point that makes people know ceramic Lampang by

evolution of its time. Almost Lampang people do ceramic as their business. This means ce-

ramic in Lampang have a high chance to get more market share in ceramic industry within

Thailand. For our company, we just start doing business in this field, so we cannot count as

popularity same as Lampang. We may be counted in the one of others part from market share

that mention about 30% but we plan to achieve the goal at 18% from 30%. Because we have

own style which is modern, consumer can perceive value from unique style of us. Also we

concentrate in good quality of raw material in production. We plan to develop our strategies

to be better all the time because we hope that consumers will accept new company as Pottery

Design into their mind and stand in loyalty.

16 http://www.tisccm.moc.go.th 17 http://tisc.feu.ac.th/content.aspx?file_upload_id=2053&page_num=1

http://www.tisccm.moc.go.th/

http://tisc.feu.ac.th/content.aspx?file_upload_id=2053&page_num=1

28

Figure 3.10 Market share

Lampang Ceramic 28% There are increasing ceramic business in Lampang all the time.

At the present, there are 249 ceramic companies that register as formally in Lampang. 18 This

is the opportunity for getting more consumers who interest in ceramic around Lampang. This

is the land of ceramic. Also the price is not high, all level of people can buy ceramic from this

place.19

Ban Chiang 24% Ban Chiang is the famous ceramic which the pattern is the oldest in the

world. Their features are hard to copy by others because they have unique Thai pattern. It is

located at Udonthani province20. Consumer both Thai and foreigner who love in Thai style

will choose Ban Chiang as their first choice.

Celadon 18% located in Chiang Mai with many shards and styles (dark gray, honey

yellow, green, oliven green, blue- green and brown). They have unique production and excu-

sive resources. Its production looks strong and beautiful and brings the owner good luck and

success.21 They provide decorative items and table ware. The weak point is they cannot pro-

duce more potteries at each time because they use manmade system.22 This cannot response

demand of consumer in case they want large amount of product at that time.

18 http://ceramiccenter.dip.go.th/LinkClick.aspx?fileticket=ibiEXdbbpP8%3D&tabid=36 19 http://ceramiclampangonline.blogspot.com/ 20 http://www.roigoo.com/board/index.php?topic=10207.0 21 http://www.baanceladon.com/production_of_celadon.html 22 http://www.tisccm.moc.go.th/tisc/report/gb_upload/show_upload.aspx?out_type=205001

Lampang Ceramic

28%

Ban Chiang 24%

Celadon18%

Others30%

Figure of market share in Ceramic industry within Thailand

http://www.facebook.com/l.php?u=http%3A%2F%2Fceramiccenter.dip.go.th%2FLinkClick.aspx%3Ffileticket%3DibiEXdbbpP8%253D%26tabid%3D36&h=nAQENbCz2

http://ceramiclampangonline.blogspot.com/

http://www.roigoo.com/board/index.php?topic=10207.0

http://www.baanceladon.com/production_of_celadon.html

http://www.tisccm.moc.go.th/tisc/report/gb_upload/show_upload.aspx?out_type=205001

29

Others 30% there are newly and existed companies that may not be enough famous and

just started doing business. Pottery Design is the one of them that focuses on 18% of market.

We will develop our strategies to response demand of consumers, we will stand on modern

style which consumers can perceive value from the product’ quality. We will be going for-

ward to consumer’s mind. We hope that in the future, consumer will be better knows Pottery

Design as well known company.

3.2 STP Analysis

3.2.1 Market Segmentation

There are many newly hotels and spas grow up in Chiang Mai every year.23 Each ho-

tel has its own style some of them are luxury and another are Butik hotel. From this way, an

owner, designer and decorator want to find new items for using and decoration in their start-

ing business. This is possible for us to response their want. Consumer who has more income

can be easy to buy our products because we produce differentiate products so, the price quite

high. Also Chiang Rai is the place where many Thai and foreign tourists come to visit all the

year because there are many attractive places to travel. When they go back in their place, they

want to buy something from Chiang Rai as a gift, usage, decoration or buying for accumula-

tion. They may be the person who have own style and love to buy items which are different

style from other people. They can pay their money for products that are unique style at any

price even very high price.

3.2.2 Target Analysis

Pottery Design Company provides 2 target groups. First, newly hotel and spa in

Chiang Mai where chooses pottery as their home ware and decorative items. Second, we sell

our products to the tourists (Thai& foreigner) who come to visit Chiang Rai. They have own

style, having high power to purchase and love to decorate their place by unique item. Modern

style is the one thing that they prefer to purchase our products. They perceive the value of

product through the price which is high. Consumers who are these characters may be a deco-

rator, architect, artist, designer or collector.

23 http://www.cmcity.go.th/aboutus/economic.php

http://www.cmcity.go.th/aboutus/economic.php

30

3.2.3 Position Analysis

The position of Pottery Design is to create image of modern products which can entry the

mind of our targets that are tourist in Chiang Rai (Thai and foreigner) and hotels &spas in

Chiang Mai. They can perceive the modern style of pottery by price that is high. We have

own style that is different from competitors. This means our company is recognized by con-

sumer and they can remember us. When consumer buys pottery from us, they will hold a spe-

cific style pottery that anyone hard to hold. We use raw material from nature as color on pot-

tery which is not dangerous to people and this looks more modern. This can attract the cus-

tomers and also we have a packing that make pottery get more modern and more value. Final-

ly we may receive the opportunity of getting more consumers by using word of mouth from

our consumers.

31

3.3 Marketing Mix Strategy

Marketing Mix

Product Price Place Promotion

3.3.1 Product strategy

Quality

According to the customer requirement, we focus more about the quality of product

that durable and guarantee product depended on type of product and condition if the product

has damaged, Pottery design will serve the guarantee to that product, and consumer can order

product in special design. The products of Pottery Design divide by 2 types which are decora-

tive product and home ware product.

Branding

For branding of our products, branding represents the strength of products that we

show in the modern designed. It can be created the answer instead of asking about the prod-

uct from consumers. They can investigate the basic mission, vision, values, strategic intent,

core competencies and culture of company. Then the trick is to build relevant differentiation

into the brand based on the target market’s needs and the brand’s unique strengths. In this

way, our branding is shown as the product of Pottery Design.

32

Style

We design products which are unique and different from others. Consumers can pur-

chase special product with special design from us. They can purchase from front store of our

company. Our products are the product that high differentiation and less available in the mar-

ket. They can perceive high value from our products.

Service

For transportation, we deliver products to consumer by company’s truck. Consumer

can wait for product within 30 days from the day that order products in case ordering of ho-

tels and spas. We emphasize on delivery on time because this show the responsibility and

trust of our company. We don’t have freight and ship for sending products to customer. We

also provide bank information for consumer to pay for order.

Kasikorn Bank

Mueang Chiang Rai Branch, Chiang Rai, Thailand

A/C Name: Pottery Design Co. Ltd

A/C No.: 341-2-30509-3

Saving Account

Packaging

We provide the protected box for breaking of product when consumer purchases any

kind of products that we have. Also we have a special box for consumer who purchases our

product as a gift for their special one in a special occasion. And we can make product follow-

ing order of customer.

3.3.2 Price Strategy

Price Skimming

We set products at high price because we have a substantial competitive advantage.

Due to we produce unique style of product, our product will be interested in the market. Also

we want the consumer perceive the quality of the product through the price. Therefore, the

consumers will absolutely purchase our products at any given price.

33

Discount

Our Company has an inherent understanding of discounting and promotional strate-

gies. Customers feel thankful when they get product or service at a decreased price, yet they

still see great value in the brand and would indeed pay more for the product or service in the

future. Then our company discount to customer such as hotel and spa which buy our products

more than 200,000 baht for 5% discount.

3.3.3 Place Strategy

Direct selling

We serve the products that we produce directly to consumer. We prepare enough in-

ventories to serve consumer at the right time. There is front store of the company in Chiang

Rai. Hotels and spas where are in Chiang Mai are the places that our company duel business

with.

Internet

The Internet has a geographically disperse market. The main benefit of the Internet is

that niche products reach a wider audience. There are few barriers to entry and costs are low.

We use e-commerce technology by company’s website.

Shop

We have own shop for customer to buy our products in Mae Jan, Chiang Rai. Our

shop also located in the same area with factory where produce products.

3.3.4 Promotion Strategy

Advertising

For advertising, our company uses own website to present our products and company

to customer by directly. Our company also uses billboard along the main street to advertise to

consumers before the date of company’s event.

Catalogue

When the customers interest in our products, we willing to send catalogue to them for

seeing more detail of product and we will always send catalogue every time that we develop

new style of product to consumer who are register as our member.

34

3.4 Sales Forecast/Profit Estimation

The consumers who are tourist (Thai& foreigner)

Figure: 3.11Tourism statistics in Chaing Rai per month24

According to the number of Thai and foreigner tourist it shows that the amounts of

people come to travel every month especially in 2005. This case shows that the Chiang Rai

province where the popular people want to travel and there are many interest places that can

convince the people in other province come to Chiang Rai. It is the chance for our company

to get the benefit. For Pottery Design, first we forecast our sale base on amount of tourists

(Thai and foreigner) who come to Chiang Rai and amount of their buying souvenirs. We also

forecast amount of selling pottery base on seasonal factor. The sales will be high at the end of

the year until the beginning of next year according to the amount of monthly tourists who

come in Chiang Rai table that we mention above. On November to March; there is winter in

Chiang Rai, this attracts the tourists come to travel because there are many interested places.

Also our sale will higher when we do the campaigns twice a year which are on January and

July. Thus, our sale will higher after a month of doing campaigns.

24 http://www2.tat.or.th/tat_branch/web/branch_download_list.php?BR=2&CadID=61

98,376

69,382 71,595

49,118 49,840 39,727

63,172 61,757 51,640

59,143

90,224

112,094

0

20000

40000

60000

80000

100000

120000

http://www2.tat.or.th/tat_branch/web/branch_download_list.php?BR=2&CadID=61

35

Table 3.12The sale forecast of tourist in Chiang Rai per month

From table 3.12, we can forecast our sales by amount of tourist who come to Chiang Rai

in each month multiply by our market share (18%), then we divide the answer by amount of

well known pottery companies within Chiang Rai which include tree companies (Doy Din

Dan, Wieng Kalong and Pottery Design). Because we want to know the possibilities that in

each company how many tourists buy their pottery. At last, we found from table 3.13 that

each tourist spend money for souvenir is 601.95 Baht. Thus, we multiply this amount of

money with the last answer that we get before. As a result, we will know the total sale in each

month by previous calculating.

Formula

Tourist× Market share ÷ Competitor× Tourist spend = Total of sale

Table 3.13 Average Expenditure of Chiang Rai25

25 http://www2.tat.or.th/tat_branch/web/branch_download_list.php?BR=2&CadID=61


36

We assume that the percentage of total of sale will increase 15% every year

Year 1 = 29,473,938 baht

Year 2 = 29,473,938 + (29,473,938 *15%)

= 33,895,029 baht

Year 3 = 33,895,029 + (33,895,029 *15%)

= 38,979,283 baht

Year 4 =38,979,283 + (38,979,283 *15%)

=44,826,175 baht

Year 5 =44,826,175 + (44,826,175 *15%)

=51,550,101 baht

37

The consumers: hotel and Spa in Chiang Mai province.

According to the number of hotels in Chiang Mai it show that the amounts of hotels

increase in every year especially in 2007. The average in year 2005 the amount is different

from year 2007. Chiang Mai province is the province that scenery town which popular for

people in Thailand, so hotels in Chiang Mai it has been established more and more. This case

show that the hotels in Chiang Mai province that create new hotels which they want pottery to

decorate in their hotels. It is the chance for our company to get the benefit.

Table 3.14Operating Expense of hotel and guest house in 2002 26

26 http://service.nso.go.th/nso/report/report03.html

http://service.nso.go.th/nso/report/report03.html

38

390

400

410

420

430

440

450

Year 2009 Year 2010

410

447

Resource : Ministry of Tourism & Sports27

Table 3.15 the number of hotels in the year 2009-2010

From the table that show the number of hotels in Chiang Mai in year 2010 equals 447

hotels, it mean that the hotels equals 38 (447/12) per month. In Chiang Mai there are two

competitors, so in one month the customers come to Pottery Design equals 19 hotels (38/2) but

we have 18% market share of total market. Therefore, our target hotels about 4 hotels

(17*18%); so the money that hotels spend for decoration equals 1,185,387.2 bath

(4*196,346.8) per month and equals 9,424,646.4 bath (785,387.2*12) per year.

We assume that the percentage of total of sale will increase 15% every year

Year 1 = 9,424,646 baht

Year 2 = 9,424,646 + (9,424,646*15%)

= 10,838,343 baht

Year 3 = 10,838,343 + (10,838,343 *15%)

= 12,464,094 baht

Year 4 =12,464,094 + (12,464,094 *15%)

=14,333,708 baht

Year 5 =14,333,708 + (14,333,708 *15%)

=16,483,764 baht

27 http://www.cmcity.go.th/aboutus/economic.php


39

The customers: tourist (Thai& foreigner)

Year 1 = 29,473,938 baht

Year 2 = 33,895,029 baht

Year 3 = 38,979,283 baht

Year 4 = 44,826,175 baht

Year 5 =51,550,101 baht

The consumers: hotel and Spa in Chiang Mai province.

Year 1 = 9,424,646 baht

Year 2 = 10,838,343 baht

Year 3 = 12,464,094 baht

Year 4 =14,333,708 baht

Year 5 =16,483,764 baht

So, the total revenue per year equals the tourist (Thai& foreigner) + the

customers: hotel and spa in Chiang Mai. According to:

Year 1 = 29,473,938 + 9,424,646

= 38,898,584 baht

Year 2 = 33,895,029 + 10,838,343

= 44,733,372 baht

Year 3 = 38,979,283 + 12,464,094

= 51,443,377 baht

Year 4 =44,826,175 +14,333,708

= 59,159,883 baht

Year 5 =51,550,101 + 16,483,764

=68,033,865 baht

40

Table 3.16 Sale Forecast Year 2012


41



42


43



44



45


46

3.5 Marketing Expenses (Sale Incentive)

Advertising

Our company advertises products on website and newspaper to present our product

and company to customer by directly. Our company also used billboard advertisement before

events in November and May, except the first year. We have total cost of advertising 36,000

Baht in every year.

Included: Blog of markets website zone 2,500 Baht per month

Blog advertising in newspaper 500 Baht per month

User domain name of website 490 Baht per year

Billboard on street 65,000 Baht per month

(That is included vat)

Catalogue

For the customers interested in our products, we have to send catalogue to our cus-

tomers for see more the product categorized in November and May by prepare with adver-

tisement. And also brochure serves with catalogue that are twice a year. The cost of catalogue

and brochure are 31,700 Baht per time. And the cost of brochure pays with catalogue in fixed

cost.

Included: Brochure expense 17,000 Baht per printed

(Print 10,000 sheets for each 1.7 Baht)

Catalogue expense 14,700 Baht per printed (2,000 books)

(Size A5 (14.5*21.0 cm.) (115 gram) 16 pages for each 7.35 Baht)

Promotion

Public Relation the products by creation show in department store in Chiang Rai . Al-

so to organize the campaign to promote the new product collection twice a year, our company

has events on January and July a year. The cost of promoted the new product in the campaign

by organizer cost 460,000 Baht per year.

Included: Organizer total cost 230,000 Baht per time

47

Marketing Expenses of Year 2012 Expenses

Month Jan. Feb. Mar. April May June July Aug. Sep. Oct. Nov. Dec. Total

User domain name

490

-

-

-

-

-

-

-

-

-

-

-

490

Catalogue -

-

-

- 14,700

-

-

-

-

- 14,700

-

29,400

Advertisement

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

36,000

Brochure -

-

-

-

17,000

-

-

-

-

- 17,000

-

34,000

Total

3,490

3,000

3,000

3,000

34,700

3,000

3,000

3,000

3,000

3,000

34,700

3,000

99,890



User domain name

490

-

-

-

-

-

-

-

-

-

-

-

490

Catalogue -

-

-

- 14,700

-

-

-

-

- 14,700

-

29,400

Advertisement

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

36,000

Brochure -

-

-

-

17,000

-

-

-

-

- 17,000

-

34,000

Campaign 230,000 -

-

-

-

- 230,000

-

-

-

-

-

460,000

Billboard -

-

-

-

65,000

-

-

-

-

-

65,000

-

130,000

Total

233,490

3,000

3,000

3,000

99,700

3,000

233,000

3,000

3,000

3,000

99,700

3,000

689,890

48



User domain name

490

-

-

-

-

-

-

-

-

-

-

-

490

Catalogue -

-

-

- 14,700

-

-

-

-

- 14,700

-

29,400

Advertisement

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

36,000

Brochure -

-

-

-

17,000

-

-

-

-

- 17,000

-

34,000

Campaign 230,000 -

-

-

-

- 230,000

-

-

-

-

-

460,000

Billboard -

-

-

-

65,000

-

-

-

-

-

65,000

-

130,000

Total

233,490

3,000

3,000

3,000

99,700

3,000

233,000

3,000

3,000

3,000

99,700

3,000

689,890



User domain name

490

-

-

-

-

-

-

-

-

-

-

-

490

Catalogue -

-

-

- 14,700

-

-

-

-

- 14,700

-

29,400

Advertisement

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

36,000

Brochure -

-

-

-

17,000

-

-

-

-

- 17,000

-

34,000

Campaign 230,000 -

-

-

-

- 230,000

-

-

-

-

-

460,000

Billboard -

-

-

-

65,000

-

-

-

-

-

65,000

-

130,000

Total

233,490

3,000

3,000

3,000

99,700

3,000

233,000

3,000

3,000

3,000

99,700

3,000

689,890

49



User domain name

490

-

-

-

-

-

-

-

-

-

-

-

490

Catalogue -

-

-

- 14,700

-

-

-

-

- 14,700

-

29,400

Advertisement

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

36,000

Brochure -

-

-

-

17,000

-

-

-

-

- 17,000

-

34,000

Campaign 230,000 -

-

-

-

- 230,000

-

-

-

-

-

460,000

Billboard -

-

-

-

65,000

-

-

-

-

-

65,000

-

130,000

Total

233,490

3,000

3,000

3,000

99,700

3,000

233,000

3,000

3,000

3,000

99,700

3,000

689,890

Table 3.26-3.30 Marketing Expense Year 2012-201

50

3.6 Conclusion

From market analysis, we have to analysis the general environment of our

business including political, economy, social and technology. These four factors are the

things that we have to know in doing business; therefore, we will know how to manage the

changing of environment that affect to our company. In addition we have to analysis the

competition which is competitor, consumer and competitive analysis. There are both direct

and indirect competitors where are located in Chiang Rai and Chiang Mai. The main direct

competitors in Chiang Rai are Doy Din Dang pottery and Wiang Kalong pottery. Ban Cela-

don Ltd. is a direct competitor in Chiang Mai and indirect competitor is S.C. ceramic store

which is selling ceramic. From sale forecast table of pottery design in each year, it can show

the influence total sale of our business. On November to March; there is winter in Chiang

Rai, this attracts the tourists who have own style, having high power to purchase and love in

modern style. They come to travel in Chiang Rai because there are many interested places.

Also our sale will higher when we do the campaigns twice a year which are on January and

July. Thus, our sale will higher after a month of doing campaigns. Moreover, our company

has own shop that serves our pottery to the consumer who are tourists. In addition, hotels and

spas in Chiang Mai are our consumer. The marketing mix of our company is to concern in

product, price, place and promotion. Finally, we realize that we have to concentrate every-

thing about analysis marketing which forces our business to be successful.

51

Chapter 4

Investment Cost

52

4.1 Location

In Chiang Rai province there are many business areas. The pottery design company is

locating middle between the ways Chiang Rai - Maesai and Chiang Rai - Chiang Sean. Our

company chooses this area because it nears the raw material. It helps our company to save

cost of transport raw material. Locate at 456 Moo 1 Phahonyothin, Maejan, Maejan District,

Chiang Rai 57110.

53

Figure 4.1: The in front of company with billboard

Figure 4.2: The whole picture of company

54

Figure 4.3: The store of company

55

Figure 4.4: The office and the inventory

56

Figure 4.5: The rest room

57

Figure 4.6: Plant decoration

58

4.2. Pre-Operating Cost

Land

We will buy the land in Phaholyothin Rd., Mae Jan, Mae Jun district, Chiang Rai,

57110. This area is closed to main road (Phaholyothin Road). We buy 3 Rai of the land, each

Rai(farm) prices at 200,000 Baht. Therefore, we have to pay 600,000 Baht for 3Rai of the

land.

Figure4.7: Land

Conveyance of land

Mr. Somsak Manawut is owner of this land, so we have to transfer the ownership of

land to be us. We will transfer the land at Department of lands (Mae Jan branch). It is located

at: Hiran Nakorn Rd., Mae Jan, Mae Jan District, Chiang Rai 57110 Tel. 0-5377-1706 Tel.

Fax 0-5377-1722. The fee rate is 2% of 100 Baht from the price of land (600,000Baht).

Thus, we pay 12,000 Baht to transfer the ownership.

Figure4.8: Map of Department of lands (Mae Jan branch)

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

59

Filling land and site preparation

Chiang Rai Development Company fills land and site preparation for us. Its location

is 89/16, Moo.18, Robwiang, Mueang, Chiang Rai, 57000 Tel. 0-5374-4674

They calculate the price for those activities as 1 Metre/ Rai about 200,000 Baht .We have3

Rai of land so, we have to pay for this cost 600,000 Baht

Drawing and construction

http://www.google.co.th/url?sa=t&rct=j&q=robwieng%20%20chiangrai&source=web&cd=1&ved=0CCAQFjAA&url=http%3A%2F%2Fth-th.facebook.com%2F57000mag&ei=nN_pTrG1GIPrrQewvfSTCQ&usg=AFQjCNGKIZpM8ig1Tc-FgSgMaCOBubmJNg

60

We let SC- House Construction to draw pattern of business both store and factory.

The price is 35000 Baht for drawing store and 20000 Baht for factory. For the construction

cost of store and factory, we accept standard series meterials. It takes cost about 2,500,000

Baht and 900,000 Baht resectively. SC- House Construction locates in 10/6 Moo. 14,

SanKungLuang Rd., Robwiang, Mueang, Chiang Rai, 57000, Tel. 053-757115. Contract with

Aj. Chairot Dachchanasakuln, Email: [email protected]

Plants and Service

We employ Terrace by Design to decorate available area of

company by plants. It takes cost about 50,000 Bath which include the

cost of plants, materials and payment of service. Chinorot Khamja-

roen 129/128 M.2 Chiang Mai Villa 1, T.Padad, A. Muang, Chiang

Mai, 50100, Thailand Tel: 081-950-2072, 087-188-7700 http://www.

terracebydesign.com/index.php

Decoration cost

• Tile

We accept many types and sizes of tile for using in different past of company. Therefore,

the price is also different. We order from The Threetouch Asia Pacific Co.,Ltd. 56/23 Seri

Thai Rd., Kannayao, Kannayao, Bangkok 10230 Thailand Tel. +662-3799065-67 Fax.+662-

3799070. Service is included.


mailto:[email protected]

61

We use white tile in our sale room. The size is 60 × 60 centimeter.

Price is 420 Baht/ box (4 pieces= 1.44 square metre). We use

100boxes, so we pay 42,000 Baht.

Dark brown color in factory (60 × 60 centimeter), the price is 275

Baht/ box (4 pieces= 1.44 square metre). We use 200 boxes, so we

pay 55,000 Baht.

Black& White color in rest room (30 × 30 centimeter), the price is

450 Baht/ box (11 pieces= 0.96 square metre). We use 30 boxes, so

we pay 13,500 Baht.

Pink color in kitchen room (60 × 60 centimeter), the price is220 Baht/

box (4 pieces= 1.44 square metre). We use 30 boxes, so we pay 6,600

Baht.

Light brown color in kitchen room (60 × 60 centimeter), the price is

250 Baht/ box (4 pieces= 1.44 square metre). We use 45 boxes, so we

pay 11,250 Baht.

Blue color in Office of empoyees (40 × 40 centimeter), the price is

430 Baht/ box (7 pieces= 1.12 square metre). We use 25 boxes, so we

pay 10,750 Baht.

Total tile cost 42,000 +55,000 +13,500 +6,600 +11,250 +10,750 = 139,100 Baht

62

• Wallpaper

Blue color & flower wallpaper is used in office of em-

ployees, a price of wallpaper are 6,300 Baht (900 Baht/per

roll). We order from Blinds Chiang Rai 29/8 Moo 1, Thasud,

Muang, Chiang Rai 57100 Tel. 053706322.

• Paint for building

Each room has difference color of painting because we want our company is colorful and

make workers are happy in their place of work. We order from Homemart Chiang Rai at 141

Moo.25, Robwieng, Muang, Chiang Rai. Tel 665-371-1523, 665-371-2027 or 665-371-3187.

The price of paints includes the paintand service is 95,000 Baht

Figure 4.9: Light brown in factory Figure 4.10: Black color in rest room

Figure 4.11: Light pink Figure 4.12: Dark brown (outside)

63

Table: Cost of Decoration

No. Descript Price (Baht)

1 Tile 139,100

2 Wallpaper 6,300

3 Paint for building 95,000

Total 240,400

Billboard of Company

The billboard of our company has two styles. Our company hire the shop of

Mr.Kietisak Sinanta to contribute the structure all of billboard. There are three billboards at

our company.

The first billboard (Figure 4.14) is called “Nameplates “the front on top of the door.

The text of billboard make from plastic. And has the light inside. The size is width .50 m. X

length 2 m. The price is 16,000 baht. The second billboard (Figure 4.15) the price is 27,000

bath is same symbolic and desire but change the size and instrument to construct. This bill-

board was set high 4 m. This billboard make from box of light “width 1.5 m. Length 3m.”The

text of billboard is sticker.

The last billboard (Figure 4.16) builds from brick it’s behind the text that make from

Aluminum. The size is “width 1.5 m. Length 6 m. The price is 32,000 Bath.

Figure 4.13, Figure 4.14

Figure 4.15

64

Billboard tax

All billboard of The Pottery Design Company make by English front and pays the fee tax

for set company billboard. This billboard uses in the commercial for earn the revenue. The

tax is in each billboard equal:

Figure 4.13: The size of billboard equal width about width .50 meters X length 2 me-

ters, width multiple height equal to 1 square meter. Calculate be square centimeter equal

10,000 square centimeters. Calculate the billboard tax. The billboard has all English front

rates 40 Baht/500 square centimeter.

: (10,000 / 500) x 40 = 800 Baht

Figure 4.14: The size of billboard equal width about width 1.5 meters X length 3 me-

ters, width multiple height equal to 4.5 square meters. Calculate be square centimeter equal



: (45,000 / 500) x 40 = 3,600 Baht

Figure 4.15: The size of billboard equal width about width 1.5 meters X length 6 me-

ters, width multiple height equal to 9 square meters. Calculate be square centimeter equal



: (90,000 / 500) x 40 =7,200 Baht

Hence; the billboard tax total 11,600 bath

Place of Payment: Robwieng Sub-district Administration Organization and located

at 336Moo.5, Robwieng District, Muang, Chiang Rai 57100. Telephone no. 665-374-2663

Gate

We use tree as a gate around company and a front side is t by steel painting with black

color which high 1.25m. and length 1.5m. Tree gate takes cost about 20,000 Baht around

company and steel gate is 7,500 Baht. Total gate cost is 27,500 Baht

Figure 4.16: Tree gate Figure 4.17: Steel gate

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

65

Car parking

Eight cars of both employees and consumers can be in our car parking. We will use

Tropical Tanroof of CPAC Monier, and using steel towers and cement also painting in light

brown color .The standard size for 1car parking is (W) 3m and (H) 3.5 m.

Cost of steel towers = 12,000 baht

Cost of Tropical Tanroof = 30,000 baht

Labor cost =55,000 baht

Total cost of car parking =97,000 Baht Tropi- cal tanroof

Figure 4.18: Car parking

High-speed internet setting

A high-speed internet service by ADSL technology (Asymmetric Digital Subscriber

Line) via an existing phone line por. Maximum 6 Mbps download speed and 512 Kbps max-

imum uploading speed in always-on connection, unlimited internet access , with the transmis-

sion speed varying upon the distance and the quality of the lines.

- Provide fully protected and dedicated connectivity for transmitting all kinds of data services

such as audio, image and Internet by using TOT’s on-net and off-net from our regional and

global partners’ networks.

- Offer excellent service quality on a par with Service Level Agreement (SLA)

- Suit large businesses, such as financial institutions, manufacturers, import-export

businesses, which require privacy, speediness, accuracy and high security in data transmis-

sion.

66

Instruction for use

The telephone can be used while surfing the net.

- An always-on connection enables unlimited use of the internet.

- Supports various applications in transmission of massive data and high bandwidth

especially multimedia technology and videoconferences.

Bandwidth Speeds

- Ranging from 128 Kbps. to 2.5 Gbps.

Charges

- Depending upon the circuit size and the destination

(A high-speed internet setting cost is 590 Baht/months)

*Service of installation is included with package that we buy at the first time.

Electrical installations

We tested often enough that there is little chance of deterioration leading to danger.

Any part of an installation that has become obviously defective between tests should be de-

energized until the fault can be fixed.

(Electricity sitting cost is applicable to business as well as related areas, the average

power demand in 15 minutes, maximum 30 kW but less than 1,000 kW and average power

consumption of less than 250,000 kWh per month for 3 months.

Figure 4.19: Transformer

3.1 The normal rate.

3.1.1 Voltage of 69 kV and above 175.70 1.6660.

3.1.2 Pressure 22-33 1.7034 196.26 kV.

3.1.3 Low voltage than 22 kV 221.50 1.7314.

67

For the time of use (Time of Use Rate: TOU).

- Voltage of 69 kV and above 74.14 2.6136 1.1726 228.17.

- Pressure 22-33 132.93 2.6950 1.1914 228.17 kV.

- Low voltage than 22 kV 210.00 2.8408 1.2246 228.17.

Stransformer Model: 800kVA 3 Phase 22 KV

Cost 450,000 Baht

Meter less than 69 kV high voltage systems.

The value of 30 Amp is 20, 000 Baht.

Total of electrical installation 450,000 + 20,000 = 450,000 Baht

Cost of setting security cameras

We use security cameras from D-Pro Communication Chiangrai CO., Ltd. The cost of

setting include with the price of all cameras that we buy. They will provide service for us. D-

Pro Communication Chiangrai CO.,Ltd. locate in 139/5 Moo 12, Robwiang, Mueang

,Chiangrai, 57000 Tel. (053) 712144, 088-2587858, 088-2587859 Email

: [email protected] , [email protected] and Website : http://www.dprocctv.com

Figure 4.20 : The location of D-Pro Communication Chiangrai CO., Ltd.


mailto:[email protected]

http://www.dprocctv.com/

68

Telephone Processing

Telephone wires are easy to work with and very safe due to the low voltages

involved. The most complex part of installing telephone wires is complying with the

defined standards.

When installing additional telephone wires into an existing facility, it is usually

best to determine which telephone wiring standard is currently in use and conform to that

standard. When installing telephone wiring into a new facility, EIA/TIA T586A is the

standard to utilize.

(Telephone sitting cost is free because it’s the promotion.)

Air-conditioner setting

A split system air conditioners maximum efficiency and long term reliability are di-

rectly linked with the quality of the installation. Some of our installation examples, the in-

stallation of a split system air conditioner can be a large job and getting a licensed installer is

important. A split system is a long term investment, not only to company but comfort as well,

get it done right. (Air conditioner setting cost is free)

69

Water Installations

Water demands can vary greatly from site to site and therefore we specialize in de-

signing and installing a bespoke system. Filtration and treatment if required, is available to

meet most requirements including pH adjustment, softeners, iron and manganese reduction,

bacteria treatment etc. A detailed water analysis will be obtained prior to installation to en-

sure the best result. All installation works are carried out by ourselves and we frequently

work in conjunction with other professionals such as electrical contractors, heat pump engi-

neers and domestic plumbers should their services be required. Our installation works are

guaranteed, the installation of plumbing, water meters and a diameter of 6 inches.

Monthly cost of installing new plumbing VAT 150,000 Baht Water deposit 20,000 Baht

Pay rates are above cost. The pipe separate water meters to 20 meters in length pipe and

turn the meter is longer than 20 meters. Install the faucet, a point is 500 Baht. We use 4 points

in our company, therefore; we pay about 2,000 Baht.

Total of water installation 150,000+ 20,000+2,000 = 172,000 Baht

Business registration

We pay 3,000,000 Baht for business registration

For commercial registration of we conduct the commercial businesses located in Chiang Rai

provinces Business Development.

Period of Time for Commercial Registration

- The registration of new commercial businesses must be within 30 days from the

starting date of business

- The change of registered transactions according to (1) must be within 30 days from

the changing date

70

- The liquidation of businesses must be within 30 days from the liquidation date

- The loss of commercial registration certificate must submit the request for re-

placement within 30 days from the date of loss.

Duties of Persons who Conduct the Businesses

(1) Must submit the request for registration within the specified period, depending

on the case

(2) Must demonstrate the commercial registration certificate or the replacement at the

office in any public place

(3) Must provide the sign of the business’s name in front of the head office and

branches in public place within 30 days from the commercial registration date / The

sign must be in Thai letters and can be easy to read and may have foreign letters in the

sign, and must be in compliance with the registered name. If it is the branch, must

have the word “branch” in the name.

(4) Must offer the fact regarding the registration transaction according to the re-

gistrar’s order

**Must facilitate the registrar and officers for auditing the office of the person who

conducts the businesses.

Commercial Registration Fee

The request for performing according to the Commercial Registration Act shall pay the fee

according to the type as follows:

(1) New commercial registration of 50 Baht

(2) Registration for the change of registered transaction for 20 Baht per time

(3) Registration of the business liquidation of 20 Baht

(4) Request for issuance of replacing license of 30 Baht per copy

(5) Request for verifying the documents of person who conducts commercial businesses

for 20 Baht per time

(6) Request for the officer to copy and certify the copy of document for 30 Baht per copy

71

Machine and equipment

1. Gas Furnaces Ceramic

Product Details

• Operating Temperature : 1200°C ~ 1550°C

• Temperature Control : Firing cycles including cooling are programmable with a

thermo PLC

• Thermocouple : Type S (PtRh-Pt) with dual element

• Over temperature Protection : Standard

• Thermal Insulation : Light refractory bricks and/or Ceramic fiber

• Source of Heat : Low emission high velocity burners with silicon carbide com-

bustion tubes, spark ignition and continuous flame monitoring system

• Kiln Pressure : Controlled (optional)

• Kiln Atmosphere : Oxidizing/Neutral (standard) - Reducing (optional)

• Truck Movement : Manual by man power (Motor driven truck movement is op-

tional)

• Body Construction : Welded steel structure

• Coating : Thermoset powder coat

• Standard Color: Beige (RAL 7032 W) + Orange (RAL 2004 W) - Other colors

on request.

Price: 438,650 Baht

72

2. Pacifica Potter's Wheel

Product Details

The GT-400 develops up to 1/2 hp and is ca-

pable of centering up to 80 lbs. of clay. Price in-

cludes Splash Pan.

Shipping Weight: 92.00 lbs

Shipping Dimensions: 31 x 27 x 20

Price: 24,955 Baht

Features of Pacifica Potter's Wheels:

• State-of-the-art electronics provide extra torque and consistent RPM at even the slow-

est speeds great for delicate trimming

• Cast aluminum Magic Pedal is renowned for its fluid, comfortable operation that puts

the potter in total control

• Modular construction of electronic components makes repairs a snap-often reducing

down time to hours versus days or weeks

• Heavy-duty, steel frame with 3 widely spaced legs is stable and virtually indestructi-

ble

• Spacious, molded tabletop provides large work area and cleans easily

• 13" cast aluminum throwing head

• Splash pan is easily removed for cleaning

• Convenient, 3-position, reversing switch

• Ships UPS in days versus many other wheels that have to be shipped by truck

• Total Satisfaction Guarantee

• Compatible with Axner Power Arm and Accessories (pictured right)

3. The Seat for Pacifica Wheels

The Seat for Pacifica Wheels: Comfortable, supportive

and adjustable.

Price: 3,720 Baht

73

4. Computer

With a piano-black and chrome finish, the PCs in this se-

ries command attention in any room. Features include:

• An integrated design with single power

cord and easy setup

• Genuine Windows 7 Home Premium

• An AMD E450 dual-core processor

• A new easel design with metallic pedestal that elegantly lifts the display Fast,

easy, trusted Web browsing with Windows Internet Explorer

• A 20" diagonal Full HD§ widescreen with 1080p (1920 x 1080) resolution

• A sophisticated nonglare display with LED backlighting plus platinum metal

trim and rounded corners

• Internal antennas for 802.11 Wi-Fi1

• An integrated 6-in-1 digital media card reader

• A built-in webcam 2 and mic.

Price: 24,190 Baht

5. Printer and Fax

• Super G3 Fax with 33.6 kbps Modem

• Caller ID Compatible

• 10-CPM Laser Copier

• Top loading paper tray holds up to 250 pages for

high-volume fax reception

• Junk Fax Prohibition Feature

Price: 32,780 Baht

6. Phone

• Corded speakerphone system provides reliable connection

even during power outages

• Speakerphone built into base

• Headset jack for hands-free operation with optional headset

• 10-station speed dial

• Built-in data port for connection to computer modem or fax machine

• Model: KX-TS105B Weight: 2.05 pounds Price: 540 Baht

74

7. Boss desk

• Center drawer with metal runners and

safety stops

• Two outside drawers with metal runners

and safety stops; lower drawer holds letter-size

hanging files

• Grommet hole for cord management

• Organizer hutch with full shelf and cub-

byhole storage

• Quick and easy assembly with patented T-lock drawer system

• Product Dimensions: 23.5 x 53.1 x 36.2 inches ; 121.2 pounds

• Shipping Weight: 122 pounds (View shipping rates and policies)

• ASIN: B003QX2XU8

Price: 7,900 Baht

8. Office desk

• Computer desk with sliding tray

• Manufactured from CARB compliant com- po-

site wood carrying the Forest Stewardship

Council (FSC) certification; laminated pure

black finish

• Assembly required by two adults; Tools not

provided; To clean, use a soft dry cloth;

• Measures 42 inches wide by 20 inches deep

36.75 inches high; 5-year warranty

• Product Dimensions: 42 x 20 x 36.8 inches Price: 4,700 Baht

75

9. Chair

• Comfortable, soft PU leather upholstery with ample

padding, oil and water resistance.

• Comfortable arm rests

• 360 degree swivel for the chair

• Adjustable height from 19" to 23"

• ASIN: B004MONQ2O

• Item model number: O13

Price: 1,050 Baht

10. Sofa set

• Spacious 3-piece sectional sofa with L/R-reversible chaise, 3-person sofa, and over-

sized 38-by-26-inch ottoman; includes 2 accent pillows

• Hardwood frames covered in dark brown faux leather; cushions upholstered in stain-

resistant microfiber

• With pocket inner spring coils for supportive seats; quality poly fiber fill in seat and

back cushions

• Home assembly required; cushions, parts, hardware, and tools packed under fabric

flap in base frames

• Assembled 84" x 34" chaise and 78" x 34" sofa stand 35" high; spot clean

• Product Dimensions: 85 x 35 x 17 inches ; 258 pounds

Price: 7,000 Baht

76

11. Electronic Fan

• 3-speed control.

• This three speed desk fan will help cool off any room.

Great for the office or work desk. Fan pivots up and down to

place air where you need it. Black finish.

Price: 1,950 Baht

12. Air condition Panasonic

• 2.6kW Cooling Capacity

• 3.6kW Heating Capacity

• Inverter Technology

• Patrol Sensor

• EcoNavi

• AutoComfort

• Advanced+Plus e-ion Air Purifying System

• Mild Dry Cooling

• Demand Control

• 24 Hour Dual ON/OFF Real Setting Timer

• Blue Fin Condenser

• Large Remote Controller

• Wired Remote Controller (Optional)

• -15 Degree Heating Operation Lower Limit

• 46 Degree Cooling Operation Higher Limit

• Quiet Mode - (Indoor Cooling) & (Outdoor Cooling)

Price: 13,900 Baht

77

13. Document file

• Brand Name: Pendaflex

• Model number: 752 1/3

• 1/2 Cut Tabs. Manila.

• Lifetime Guarantee

Price: 3,390 Baht

14. Cash register

• Quick Guide

• Vista, and Windows 7 support

• Up to 2GB SD compatible

• 2000 Price Look Ups (PLU's)

• Microban - antimicrobial product protection

• Quick Guide

• Vista, and Windows 7 support

• Up to 2GB SD compatible

• 2000 Price Look Ups (PLU's)

• Microban - antimicrobial product protection

Price: 25,000 Baht

15. Set of counter

• Quick Guide

• Greet all your customers in style with

this modern design reception

• Product Dimensions: 20 x 59 x 45 inches

Price: 15,000 Baht

78

16. Panasonic plasma TV

• 1080p Full-HD Resolution

• VIERA Image Viewer (Photo and

Video)

• Energy Star

• Fast Switching Phosphor

• Easy IPTV with DLNA

• Brand Name: Panasonic

• Model: TC-P50S30

• Display Technology: led-lit

• Display Size: 42 inches

• Image Aspect Ratio: 16:9

• Product Dimensions: 47.4 x 12.8 x 30.7

Price: 29,990 Baht

17. Truck product HINO 6 wheel

• Truck product HINO 6 wheel

• Dutro Light Duty Long wheel base Truck Chassis

• GVW – 6.5 Ton

• Wheelbase – 3870 mm

• Maximum Output – 105 PS at 3200 r/min

• Maximum Torque - 26.8 kgf.m at 2000 r/min

• Cabin A/C – Factory Fitted

Price: 900,000 Baht

79

18. HINO 6 Wheel

• Wheelbase – 3870 mm

• small (4*6)

• GVM :6,800 – 7,000 kg

• Max power output: 136 ps/ 2,500 rpm

Price: 700,000 Baht

19. TOYOTA HILUX-VIGO

• GVM :6,800 – 7,000 kg

• Toyota HILUX VIGO 3.0G SM/C 4WD M/T

Price: 425,000 Baht

80

Table 4.2 Total pre-operating cost

No Descript Cost/Baht

1 Land 600,000

2 Conveyance of land 12,000

3 Filling land and site preparation 600,000

4 Drawing and construction 3,455,000

5 Plants and Service 50,000

6 Decoration cost 240,400

7 Billboard of Company 75,000

8 Billboard tax 11,600

9 Gate 27,500

10 Car parking 97,000

11 Electrical installations 450,000

12 Water Installations 172,000

13 Business registration 1,000,000

Total 6,790,500

81

4.3 Investment cost

1. Building

Table 4.3 Total building cost

No Core Building Quantity Per Once Total

1 Pilling 0.50 X 21.00 m.

18 m.*m.

24,690

444,420

2 Concrete surface floor

760 Cm2

1,560

1,185,600

3 Concrete parking lot

180 Cm2

1,910

343,800

4 Concrete makes for Gypsums Smooth plaster

2,800 M2

230

644,000

5 Color for ceiling makes for smooth

2,800 M2

100

280,000

6 Masonry wall plaster

1,500 m.*m.

450

675,000

7 Electronic door 4 x 2.05 m.

1 set

55,000

55,000

8 Toilet s system

2 unit

9,500

19,000

13 Carved roofing 0.5 x 1.20 m.

2,800 M2

52

145,600

14 Floor title 12” x 12”

2,800 M2

400

1,120,000

15 Window set

15 unit

1,800

27,000

16 Electrical work

200 unit

550

110,000

17 Color work

4,800 m.*m.

80

384,000

Total 5,433,420

82

2. Equipment and machine

2.1 Equipment & Tools

Table 4.4 Total of office element

No Descript No.

Product Price/unit Total

1 Computer 6

24,190 145,140

2 Printer and Fax Pana-sonic 1

32,780 32,780

3 Phone 2

540 1,080

4 Boss desk 1

7,900 7,900

5 Office desk 4

4,700 18,800

6 Chair 12

1,050 12,600

7 Sofa set 1

7,000 7,000

8 Air condition 1

13,900 13,900

9 Electronic Fan 6

1,950 11,700

10 Document file 1

3,390 3,390

11 File cabinet 1

2,100 2,100

12 Bin 7

270 1,890

13 carpet 3

330 990

14 Set of Fujiko CCTV 2

13,500 27,000

Total 286,270

83

Table 4.5 Total of shop equipment

No Descript No.


1 Cash register 1 25,000 25,000

2 Set of counter 1 15,000 15,000

3 Chair 6 1,050 6,300

4 Pottery shelf 14 2,800 39,200

5 Air condition 2 13,500 27,000

6 Set of FujikoCCTV 1 13,500 13,500

7 Bin 2 270 540

8 Panasonic plasma TV 1 29,990 29,990

9 Phone 1 540 540

Total

157,070

Table 4.6 Total of kitchen equipment

No Descript No.


1 Kitchen set 1 24,500 24,500

2 Microwave 1 1,800 1,800

3 Panasonic Refrigerator 1 5,590 5,590

4 Table set 2 7,300 14,600

5 Insolated container of hot water 1 1,640 1,640

6 Kitchen sink cabinet 1 5,800 5,800

Total

53,930

84

Table 4.7 Total of restroom equipment

No Descript No. Prod-

uct Price/unit Total

1 Restroom door 6

600 3,600

2

flush toilet 6

4,500

58,500

3

Urinal 3

1,700

5,100

4

Mirror 9

1,900

17,100

5

Wash basin 6

2,690

18,830

Total

103,130

Table 4.8 Total of operating equipment & machine

No Descript No. Prod-

uct Price/unit Total

1 Gas Furnaces Ceramic

2

438,650

877,300

2 Pacifica Potter's Wheel

12

24,955

299,460

3 The Seat for Pacifica Wheels

12

3,720

44,640

4 Phone

2

540

1,080

5 Table

18

900

16,200

6 Pottery Shelf

35

1,550

54,250

7 Bin

10

270

2,700

8 Electronic Fan

6

1,150

6,900

9 Truck product HINO 6 wheel

1

900,000

900,000

10 HINO 6 wheel

1

700,000

700,000

11 TOYOTA,HILUX-VIGO

1

425,000

425,000

Total

1,302,530

85

4.4 Depreciation

Table 4.9 Total Depreciation Year 2012

87


89


91


93


95

4.5. Conclusion

Pottery Design is located at 456 Moo 1 Phahonyothin, Maejan, Maejan District,

Chiang Rai 57110. It is middle between Chiang Rai- Maesai and Chiang Rai-Chiang Sean.

Our company chooses this area because it nears the raw materials. At the first time, we buy 3

Rai of land which closed to Phaholyothin Rd. Next, we need to transfer the land to be us. The

cost of conveyance of land, filling land, site preparation, drawing, construction and decorate

plants including service are our pre operating cost. In addition, the cost of decorative is also

the pre operating cost which includes tile, wallpaper and paint for building. We have a bill-

board of company that has to pay for its tax. The amount of money that we pay depends on

the size of billboard. We decide to build car parking and company’s gate. Our company needs

to use social network to duel our works with other parties, so we need to set high-speed inter-

net. The installation of electricity, water installation and telephone processing are the main

facility for our business so, we have to install them. Moreover, we need some security camera

in our company; we have to purchase these cameras from D-Pro Communication Company.

Setting of air-conditioner is also needed. When we have a plan to do business, the business

registration is required. We are the business that produce and sell the product to consumer

directly, so we need to buy many types of equipment such as gas furnaces ceramic, potter's

wheel, computer, printer and fax, air condition, truck etc. For investment cost, it consists of

the cost of building, equipment and machine. Building cost is about Toilet s system, window

set, concrete surface floor, etc. The cost of equipment and tools are divided by the using of

each room such as rest room, office, shop, etc.

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

96

Chapter 5 Production and Operation Cost

97

5.1 Product Characteristics We divide pottery into 2 types; the first is home ware products such as table ware,

tea/coffee set, bath and spa, and lamp. The second is decorative pieces such as gift item and

decorative item.

Home ware

Plate

Pottery plate with hummingbird by Vicky Calabaza (Santo Domin-

go) Vicky Tenorio Calabaza was born in 1959 and has been making pot-

tery since 1983. She is the grand-daughter of Lupe Tenorio who was also

her teacher. She sometimes collaborates with her husband Andrew Cala-

baza. Vickie signs her work with 6 dots in the form of a triangle. This

plate measures 9 inches in diameter.

Pottery Bowl with horses by Robert Tenorio (Santo Domingo)

Robert Tenorio was born in 1950 and has been making pottery since

the 1960's. He studied art at the Institute of American Indian Arts

(IAIA) in Santa Fe, New Mexico but began working earlier in clay

with his grandmother Andrea Ortiz and his great- aunt Lupe Tenorio.

He continued formal training in clay at IAIA under OtellieLoloma. He is the recipient of

many awards including, 17 awards alone from the Santa Fe Indian Market dating back to

1967. In 2000 he won the Governor's Award at Indian Market- Santa Fe, New Mexico. His

work can be found in the collections of the Peabody Museum at Harvard University, Cam-

bridge, MA; Nagoya Museum, Japan; and the Royal Family of Great Britain. This bowl

measures 3 3/4 inches tall by 8 1/4 inches in diameter.

Eye Dazzler pottery plate by Rebecca Lucario (Acoma)

Rebecca Lucario was born in 1951 and is a member of the Yellow

Corn Clan. She has been active making pottery since 1965 and was

taught by her grandmother Dolores S. Sanchez. She specializes in

Mimbres Revival style with animal designs and eye dazzlers.

This plate measures 7 1/2 inches in diameter.

98

Blue Italian Italy Flower Plate With Struck Through "Z" Signature

Marking. I have a blue Italian flower plate that I am trying to iden-

tify. Please see photographs. Any information you could provide as

to the plate and /or mark would be greatly appreciated.

This decorative, rectangular platter has an elegant, Victorian lace pat-

tern imprinted in the clay (You can feel the texture). Color: Varie-

gated tan (beige) to brown. Dimensions: 11 x 6". Food-safe, micro-

wave & dishwasher safe. It can be used as a serving tray, and would

make a great gift. It is made of fine white stoneware clay, and high fire glazes.

Bowl

Red on buffware deeply incised pottery bowl by Margaret Ta-

foya (Santa Clara) Margaret Tafoya (1904- 2001) learned the art

of pottery making from her mother Sara FinaTafoya (1863- 1949),

who was considered the leading Santa Clara potter of her day.

Margaret is considered one of the leading Santa Clara potters of the

latter half of the 20th C and in 1984 she was awarded a National

Heritage Fellowship from the National Endowment for the Arts for her accomplishments.

This bowl measures 5 1/4 inches tall by 28 1/4 inches in circumference. This bowl is in very

good condition.

Fine line geometric pottery bowl by Rebecca Lucario (Acoma)

Rebecca Lucario was born in 1951 and is a member of the Yellow

Corn Clan. She has been active making pottery since 1965 and was

taught by her grandmother Dolores S. Sanchez. She specializes in

Mimbres Revival style with animal designs and eye dazzlers. Re-

becca fires her pieces twice, first in an electric kiln to cone 04, then

outside in the traditional manner, which she says gets much hotter than the electric firing. She

may spend up to 12 hours spread out over several days just on the black design work for her

larger pots. She says she does not measure or plot out her designs with instruments but rather

spaces the design out by eye. This bowl measures 5 1/4 inches tall by 21 inches in circumfe-

rence.

99

Pottery bowl with rabbit by Gloria Mahle (Hopi)

Gloria Mahle is a member of the Rabbit/ Tobacco Clan and has

been making pottery since 1980. She first learned by watching her

mother Marilyn Mahle and credits Rainy Naha and Fawn Navasie

with helping her develop her skills. She in turn taught her nephew

Garrett Maho, who has also become a noted Hopi potter. This bowl measures 3 1/4 inches tall

by approximately 4 inches in diameter.

Extra Large Poppy Bowl - Made to Order - Copper Red Black

Silver Ceramic Pottery. This custom, made to order HUGE poppy

bowl can be made and shipped to you in 3 short weeks! My pieces

are hand thrown, glazed and fired by me in my home studio. This

one of a kind bowl is glazed with my NEW Copper Red and Silver

Black combination, beautiful for serving food or standing up on a display stand. Dimensions:

14"diameter x 3.5" deep.

Scalloped pottery bowl. Here is a great sized bowl that would be

nice for a soup cereal bowl or a good helping of ice cream, it

would be a perfect for a cat or dog dish too. It has gentle scallops

with dots and dents that add extra interest to the deep swirl and

grooves that have pooled the glaze nicely. Wonderful coloring of

sage green and toffee brown all on top of a deep dark black is so

earthy and bold. Measures about 5 x 2 1/2 inches tall and will hold almost 2 cups.

Spoon and Fork

Harker Pottery Salad or Serving Fork & Spoon Harker Pottery China

and Gold Inlay Serving or Salad Fork and Spoon. This 1940's serving set,

we believe to be made by Harker Pottery, is cream china color at holding

end, with gold inlay filigree leaves motif at the other end. Spoon measures

8-1/2” long by 2-1/2” wide at the bowl of the spoon. Fork is three prongs

and measures 8-3/4” long by 2-1/2” wide at the bowl of the fork. Both have a hole at one end

for hanging. Fork and Spoon are in excellent condition with no chips or nicks.

100

All products, thanks to careful choice of white-backing clays and high

baking temperature, are thermo-resistance and are perfect for casserole

use in traditional and microwave ovens. Sub-glaze decoration made with

the use of paint free of lead and other radioactive elements. All utensil

can be exploited for all kind of food storage and they can be cleaned in

any types of mechanical dish-washers as well.

Circa 1937 - 1944. Fiesta Kitchen Kraft Original Salad Fork

in original radioactive red. The Fiesta Kitchen Kraft utensils

were designed by Frederick Rhead at Homer Laughlin Pottery

Company to go along with the popular Fiesta line. Originally

intended to go with the 11 3/4" Salad bowl. They will never

be marked, but rather would have been sold with a paper label. This salad fork in the early

red glaze is in excellent condition without damage or wear, please note one small glaze skip

on the edge of one of the tongs (shown in picture two at about 3 o'clock). Lovely piece with-

out damage to the tongs which is hard to find condition. Enjoy a complete set in one color, or

mix and match.

Beaba Soft Spoon & Fork Set

The perfect first utensils for babies, these French-designed utensils

help them make a happy transition to solid foods. The BPA-free

spoons and forks are made of colorful polypropylene and elasto-

meric to ensure a gentle touch on sensitive gums. Fun colors entice

children to practice eating on their own. Utensils are proportioned

for little mouths, and handles are sized for all types of food containers, ultra-gentle on gums,

and more comfortable than cold metal utensils, lightweight and durable. Assorted green,

orange, pink and blue, set of 10 includes six spoons and four forks.

Handmade earthy like spoons, these three spoons are all about 6 inches long,

glazed with a non toxic lead free glaze. Blues, browns, blacks, and a egg plant

for the colors, they work well with your sugar, honey, and coffee, just about

everything you use a spoon for. I mainly use mine for adding honey to my tea.

101

Cup

Natural Elements Pottery-- Winter Colors Flower Pattern Mug.

This beautiful, eye-catching clock will leave you smiling with

every glance at the time. All of Jane King's Clocks are handmade

including the numbering and design patterns on the face of the

clock. Jane King's Clocks all come pre-assembled, and include a

hanging device firmly attached to the back of each clock. The Di-

mensions are approximately 11" Height by 11" Width.

Reno Pottery - Cup Rooster Design. This pottery piece is a beauti-

fully designed Wine Cooler, made exclusively by Reno Pot-

tery. This creative handmade Bamboo designed Wine Coo-

ler features many different vibrant Blue and White colors and a very

stunning Bamboo handle.

Art Nouveau Green Pottery Cup Vase. Really beautiful piece of

green pottery with an elegant vine detail wrapping around the base

of the cup. I think using it as a vase would be really pretty. I do not

know much about it, there aren’t any makers’ marks, but it is in

pristine condition with no defects. Real pretty piece. Stands 4

inches tall and is 4 inches across the opening.

Warm Pottery Coffee Mug in Dark Olive Green Rose Carved

This one is a keeper. Wheel thrown, hand carved mug. Once you

hold it, you'll fall in love--the texture of the carving against your

hand feels quite exquisite, and the large handle lets you’re really get

a hold on it. Complete with a cute yet comfy thumb rest. I hand through these with white

stoneware, and then carved the rose pattern into each. This is one of my favorite glazes--it's a

layered glaze, teal green, which you'll see on the inside of the mug, and then I used my earthy

brown glaze over top. It creates a real rich dark olive green that shows off the carvings so well.

This mug measures 3.25" wide x 3.75" high.

http://www.americanmadepottery.com/RENO-POTTERY-CUP-ROOSTER-DESIGN-p/rprp00030.htm

102

Pottery Coffee Mug - Scalloped Dark Blue Ceramic Mug Hand

Carved. Wheel thrown, hand carved mug. You'll fall in love quickly

with this guy--the texture of the carving against your hand feels quite

exquisite, and the large handle lets you’re really get a hold on it. Com-

plete with a cute yet comfy thumb rest. I hand through this piece with

white stoneware, and then carved the intricate scalloped pattern into it. This is a new glaze I just

started using and am totally in love with---a real rich deep navy blue. It really shows off the carv-

ings, and looks great. This mug measures 3.25" wide x 4.25" high.

Teapot

Wood Fired Teapot Set w Cane Handle / Handmade Pottery

Wheel Thrown Stoneware Clay. I was so fortunate to be included

in an anagrams kiln firing last month, which is a wood fired

kiln. This teapot set was fired for 3 days in a wood fired kiln to

Cone 10, 2400 F. A smooth glaze on the inside, the outside left bare to interact with the flame

and ash. This work is surely one of a kind. 100% food safe. A sure way to enhance your eve-

ryday life and reconnect with a 100% handmade piece of ceramic pottery. This sweet 20 Oz

teapot fits the hand and pours like a dream. Teapot and spout was wheel thrown and then the

lid and the handle lugs were formed and attached. After I got it home, I decided it was too

special for a store bought bamboo handle, so I took a class on cane weaving just to make this

handmade cane handle. This teapot has a built in strainer and a lid that will not fall off. Pours

without dripping, a sign of a good teapot. Comes with two matching teacups.7 1/2" X 8"

stoneware teapot with spout and handle, holds 20 Oz.3" x 3" teacups, each holds 8 Oz.

Olive Green Pottery Teapot Set. This Teapot Set was made on the

potter's wheel and waxed for the flower design before glazing.

Tray is not included. This set is including a teapot and two teacups.

This set has beautiful shape and handful structure, and the teapot

and teacups are so light for your convenience. Teapot is pretty big

enough for two people. Enjoy your teatime. Food, beverage, and dishwasher safe. Teapot

Size: 6" Diameter, 8.5 Length from handle to spout, 4" Height. Teacup Size: 3" Diameter,

1.5" Height

103

Sunbeam Designed Teapot Set. This Sunbeam Designed Teapot

Set is wheel thrown and applied red clay into the outside of whole

body to make a sunbeam design. This set is including teapot itself,

two teacups and a small bowl with spout to let water cool. This set

has beautiful design, handful structure, and right size for two

people. Enjoy your teatime. Food, beverage, and dishwasher safe. Teapot Size: 4 1/2" Diame-

ter, 7" Length to Spout, 5 1/2" height to handle

Beautiful Vintage Takahashi Pottery San Francisco Spring Dai-

sy Teapot. This listing is for 1 Takahashi Pottery San Francisco

teapot from the Spring Daisy collection. The measurements are as

follows; the belly of the pot is approximately 7 inches wide, the

length from handle to end of spout is 11 inches and the height is 6

inches tall. The teapot is in near mint condition, I say “near” mint

because there is one minor area of damage on the end of the spout which I have shown to the

best of my ability in the last picture. In the 1840s Ashley A Vatrine started a provision and

supply business in San Francisco, many different styles of pottery were produced over the

years some marked some unmarked but the most identifiable were marked Takahashi San

Francisco with a Japan export stamp, they may also read Takahashi Shokai meaning the Ta-

kahashi Company. This particular exporter is still in business to this day (this item is from the

80s) but the older pieces and number seasonal pieces have become the most sought after col-

lectibles. I am selling two other matching listings to this one so if you are interesting in buy-

ing the entire set please feel free to convo I will be happy to combine the shipping for you.

Fish Goddess Teapot Matt Blue

The porcelain teapot is thrown and altered on the wheel in parts. The fish is

hands shaped and act as lid. The surface was created by shellac resist. Then it

was fired to 2300 degrees F with gas and wood. 10"x 5"x 3".

104

Decorative

Vase

Red Honey Vase Pottery. Red Honey Glaze Flower Vase.6" tall.

This ceramic vase has a rich honey/butterscotch glaze. Each piece

of Darshan Pottery is hand thrown on my potter's wheel, glazed in

lead-free glazes, and fired in my kiln. It is here where the kiln spi-

rits transform the final product, giving each piece its unique cha-

racter.

Vintage Stangl Vase Pottery Art in Antique Gold and Aqua Re-

tro Stangl vase with a lovely hand painted antique gold finish over

an aqua glaze. This piece in excellent condition and has no chips or

cracks. There is one small indent in the ceramic at the mouth of the

vase that was part of manufacturing and is original to the piece,

which isn't a flaw just added character. It would make a great gift.

Measures approx. 9.25 inches tall and 5 inches wide.

Vintage midcentury blue pottery vase. This small pottery weed

vase is not marked. It may have been made in the 1960s or 1970s

by Otagiri of Japan. It is handcrafted, but does not have the rough-

ness of a wheel thrown studio piece. The blue semi-matte glaze

has a beautiful figural appearance. Specks of brown iron oxide

peek through the mottled blue texture and the blue glaze is thicker and pools and runs down

the sides in some areas. The condition is very good and there are no chips, cracks, or repairs.

The size is about 5 1/2" high by 4 1/2" in diameter. This is a lovely piece for your mid cen-

tury or modern home.

105

Unfurling Vase. Ceramic, high-fired, glazed with black and red

iron under glaze washes and spodumene (cream-colored high-fire

glaze with iron flecks). Dimensions: 18" tall x 9" wide x 9.5"

wide. Weight: 20 lbs. The idea behind this is the shedding of skin

to reveal the raw, natural state that lies within the boundaries and

expectations of the traditional vase form.

Vintage Pottery Vase with Pink Roses - Shabby Chic Cottage

I love a vase that looks pretty even without fresh flowers. This

vintage creamy white pottery two handled vase is embossed with

an allover diamond pattern and decorated with applied soft pink

roses. The mark on the bottom is illegible, but looks very much

like a made in Japan mark. There is overall crazing in the glaze. Condition is very good with

no chips or cracks.Measurements:4-1/2" in overall diameter by 7-7/8" tall.

Lamp

Raku Pottery Lamp. This is a wheel thrown Raku Fired Stoneware

Lamp created by Robert Graydon. This is a picture of the actual Lamp

to be shipped. It is signed and dated. It has been taken Red Hot from

the kiln and placed into straw, leaves and pine needles. This Lamp

Does come with a black paper shade and a 3 way type Light fixture. It

measures 6 1/2" Wide at the base x 16 1/2" to the Top of the pottery

and a Total High of 29" to the Top of the Shade.

Vintage Speckled Pottery Crock Lamp

Vintage Speckled Pottery Crock Lamp. Mid 80's.Works and in

very nice shape. Lamp shade is fraying in a few places. Measures

19 1/2" tall and 7" at the base. Weighs a little over 4 lbs.

106

READY TO SHIP Cobalt Blue Electric Lamp Wheat Design

Handmade Pottery. I made the base for this stoneware lamp on

the potter's wheel in my studio. I hand-incised a wheat design on it.

The lamp base is glazed in a cobalt blue glaze and fired in reduc-

tion to cone 10. The socket is solid brass with an antique finish.

The lamp has a brown 8 ft. cord and has felt pads on its base to

prevent it from scratching the surface you put it on. This electric lamp would enhance any

room. Beautiful and functional. Unique Valentine's Day gift. The lamp base measures 11.75

inches (29.8 cm) tall including the antique brass socket and 4.5 inches (11.4 cm) in diameter

at its widest point. The 7 inch (17.8 cm) rice paper shade is not included in this listing.

• Bungalow 5 Athena Dark Brown Pottery. Tapered Contemporary

Ceramic Mounted on White Base. Dark Chocolate Brown Decorated

with Raised White Patterned Dots. 16" bottom fabric shade. 27" high

from bottom of base to top of shade. 3 way socket -- 150 watt max.

The entire surface of this lamp's dark chocolate brown ceramic is

covered with tiny raised dots of white and the effect is mesmerizing.

Signed Vintage 1960s Aladdin Electric Table Lamp Abstract

Ceramic Pottery. Here for sale is a very unique find, an abstract

table lamp by Aladdin, the base is signed. It is made of ceramic

pottery and has a heavy glaze over it. The lamp is of a unique form

resembling a rock or drift wood. It was reclaimed from an old

ocean side motel in Maine. It stands 9" tall and 8" wide at the base.

Overall including the shade it is 20" tall.

107

Spa set

Rooted In Clay Votive/Tea light Holder

This uniquely creative and handcrafted Textured Votive or Tea

light Holder made by Rooted in Clay Pottery, features many dif-

ferent white, brown, and honey glazed colors. On the inside of the

bowl features a contrasting green glaze, this is an earth-toned,

beautiful pottery piece. All of Rooted in Clay Pottery pieces are

made using nature and natured-inspired designs. This pottery

piece is the perfect decoration for any home. Needless to say, all

of rooted in Clay's Pottery pieces are very unique and highlighted with natural bark and leaf

textures that are sure to impress anyone!

Vintage Blue Mountain Pottery Candle Holders Cobalt Blue

Look at the beautiful cobalt blue glaze on this set of three vintage

Blue Mountain Pottery candle holders. The largest candle holder

has a large loop-shaped handle and stands approximately 7 1/2

inches tall. The set of two smaller candle holders stand approx-

imately 2 1/2 inches tall. These candle holders are unmarked. The red clay used by BMP is

evident on the bottom of the candle holders. They are in excellent vintage condition with no

chips, cracks, or crazing.

Great Bay Pottery Creamer Our handmade pottery creamers and

sugars are the perfect way to store and serve coffee and tea. Func-

tional and decorative, our stoneware pottery sugars, creamers, and

sets are the perfect addition to your dinner and coffee table. Crea-

mer - 4.25"h x 3.5"w 10oz.Sugar Bowl - 3.75"h x 3.75V

http://www.americanmadepottery.com/Great-Bay-Ceramic-Creamer-p/rpgb141.htm

108

Mud works Pottery Toothpick Holder by JoAnne Stra-

takos.MudWorks Pottery introduces the Toothpick Hold-

er handmade by JoAnne Stratakos. Product Dimensions

are approximately 3.5" Height by 2" Width.

Blue Mountain Pottery Vintage Candle Holders

Blue Mountain Pottery vintage candle holders. Beautiful

display pieces. Excellent condition. Made in the '60's or

'70's. No chips, cracks, or repairs on this piece. BMP

Canada on the bottom as shown. Blue Mountain Pottery has officially ended production of

items as of the fall of 2004. Unable to compete with low quality mass produced pottery ware

items from China.

109

5.2. Service Process

Product / Service process

The Pottery Design Company is the industries that provide the very high quality,

modern and the produce attractive the customer. The Pottery design company have own ma-

nufactory for producing the product because it will forward force the growth to company. We

control the processes of operating and then serve directly to the consumers. This is known as

vertical integration. We serve our products directly to consumers by do not need to due with

intermediate. From this way, we use forward integration for developing our business. The

purposes of using growth strategy are increasing the number of sales and market share.

Service process; The Pottery Design Company was divide the service in 2 services.

1. The Pottery Design shop is opened (9 am- 9 pm.) daily. We offer the product in the

store the customer can choose and can touch the product that they want to buy by

themselves.

2. The Pottery will delivery to the Hotel& Spa in Chiang Mai. We show the process

from model picture

Store atmospherics

Lighting: This store is use the light the show the feeling in artist. In the zone of show

product use the orange light. Zone counter of cashier use white electric light decorate on the

ceiling. In front of the store we use white electric light also. The pottery must use full-

spectrum light, but you must have good lighting in your work space. The best lighting will be

ambient rather than spotlights. It makes the store attractive when people pass this way, they

will visit in our store.

Color: Our store use cool color to paint. The wall was paint in white color because it

helps the customer can see the pottery obviously. The floor of store is light brown because in

the store will build the art emotion for customer. It makes the customer want to own the pot-

tery.

Music: The Pottery Design Company serves the chill and classic music. It makes the

customer feel relaxation and live in the shop for a long time. It can help to sale more products

from our company.

Scent: We will use the fresh or natural scent in the store because it helps the customer

want to live in long time and effect to buying behavior of customer.

110

5.3 Logistic Management

Merchandizing: According to the pottery design has own shop for the customer,

so it make the customer easy to purchase the product and can touch real product.

Deliver to Hotel & Spa: The customer see the catalog and order through the repre-

sentative of pottery design. Our Company will ship the product to the customer at Chiang

Mai. After that the customer’s order the product, the staff will packaging and delivered prod-

uct within 5 hour (190 km.).Next in each deliver product we will guarantee the product and

check product before customer receive.

Trading: It include the order process, account receivable, inventory control,

check quality, and the insurance for staff and security system its effective management as

well as accurate finance and accounting(8,660 baht)

The Pottery wills delivery to the Hotel& Spa in Chiang Mai. We show the

process from model picture

Customer (Hotel&Spa) Agree to order

Present Catalog, Decorators Delivery

Pottery Design Company Check products

Payment Customer receives

Figure 5.1: Logistics process

111

5.4 Our Packaging

Our company chooses Asia Paper Bag Company to produce the bag and boxed for our

company.

Asia Paper Bag Company Limited

ASIA PAPER BAG CO., LTD is one of the leading manufacturers and exporters of pa-

per bags and boxes in South East Asia. Established in 1968, we now produce over 5 million

bags per month. In addition to supplying all over Thailand, we export to more than 30 coun-

tries around the world.

We care about the Environment therefore we use recycled materials for our quality

products. With our modern offset printing technology we are capable of printing up to 5 col-

ors / 2 sides.

Folding is by to machine or hand allowing us to produce bags of any size or style. Han-

dle styles include paper twisted, cotton and nylon rope.

We are the selected list of Department of Export Promotion, Ministry of commerce.

For quality bags and boxes of all kinds at competitive prices contact ASIA PAPER BAG

CO., LTD.

General company information:

Contact: Steven Surya

Address: 499-499/1 Samwa Rd., Bangchan, Ket Klong Samwa, Bangkok, Thailand

Country: Thailand

International phone number: 66-2-90621505

International Fax: 66-2-90621578

Website: www.asiapaperbag.com

Business Type: Manufacturing

112

The Pottery design company bag:

Figure 5.2: The bag of pottery design

Code No. K-R2765

Character Paper Carrier Kraft Bags

Material Naturally degradable or can be recycled. Available with flat tape

handle or twisted paper

Size availa-

ble

Size no. I01 I02 I03 I04

size(cm.) 15x8x17 20x9x8 26x10x23 33x12x27

We choose Paper Carrier Kraft Bags of Asia Paper Bag Company. The bag size that we

choose is 44x15x38 cm. We choose light brown color, recycled brown craft paper made. Na-

turally degradable or can be recycled. Available with flat tape handle or twisted paper. Tex-

ture with PP rope handle and screen our logo on every bag to show unique of our company to

our customers. The prices of bag follow the table below:

Number of bag Baht per piece

less than 500 pieces 20 Baht

501-1,000 pieces 17 Baht

1,001-3,000 pieces 15 Baht

More than 5,000 pieces 10 Baht

113

The Pottery Design company box:

Figure 5.3: The box of pottery design

Box

Code No. Size

BPDC 001 15x10x15 cm

BPDC 002 25x25x20 cm

BPDC 003 60x45x50

We choose 3 size of box that is 15x10x15 cm, 25x25x20 cm and 40x35x40 cm. All of

boxes are brown board 350 grams, colors printing, and glossy lamination and screen our logo

on every box to show unique of our company to our customers. The prices of box follow the

table below:

Number of box 15x10x15cm

(Baht/pc.)

25x25x20 cm

(Baht/pc.)

60x45x50 cm

(Baht/pc.)

Less than 500 pieces 10 Baht 20 Baht 40Baht

501-1,000 pieces 9 Baht 19 Baht 39 Baht

1,001-3,000 pieces 7 Baht 16 Baht 37 Baht

3,001-5,000 pieces 6 Baht 14 Baht 34 Baht

More than 5,000 pieces 5 Baht 12 Baht 30 Baht

114

The cost of bag and box per year:

The amount of bags and boxes evaluate from the unit in sale forecast in each year. The cost of packaging is high cost in November- March.

The month (July) the company has events in each year. The details of cost in each year show on the schedule:

Table 5.1 Total the cost of bag and box year 2012

Year 1 Jan. Feb. March April May June July Aug. Sep. Oct. Nov. Dec. Total

No.of bag 144 95 89 25 20 54 20 45 99 28 256 50 925

Baht per piece 10 10 10 10 10 10 10 10 10 10 10 10 120

Cost of Bag 1,440 950 890 250 200 540 200 450 990 280 2,560 500 9,250

No.of Middle

box 123 133 195 55 50 67 123 55 36 34 102 150 1123

Baht per piece 12 12 12 12 12 12 12 12 12 12 12 12 144

Cost of Box 1476 1596 2340 660 600 804 1476 660 432 408 1224 1800 13476

No.of large 255 167 245 88 79 30 140 70 56 70 158 190 1,548

Baht per piece 34 34 34 34 34 34 34 34 34 34 34 34 408

Cost of box 8670 5678 8330 2992 2686 1020 4760 2380 1904 2380 5372 6460 52632

Total of cost 11,586 8,224 11,560 3,902 3,486 2,364 6,436 3,490 3,326 3,068 9,156 8,760 75,358

115



No. of bag 135 50 89 20 30 54 57 45 123 28 256 70 957

Baht per piece 10 10 10 10 10 10 10 10 10 10 10 10 120

Cost of Bag 1,350 500 890 200 300 540 570 450 1,230 280 2,560 700 9,570

No.of Middle box 100 133 195 55 55 67 123 55 36 34 112 205 1170

Baht per piece 12 12 12 12 12 12 12 12 12 12 12 12 144

Cost of Box 1200 1596 2340 660 660 804 1476 660 432 408 1344 2460 14040

No.of large 280 210 245 112 88 50 140 78 67 75 158 220 1,723

Baht per piece 34 34 34 34 34 34 34 34 34 34 34 34 408

Cost of box 9520 7140 8330 3808 2992 1700 4760 2652 2278 2550 5372 7480 58582

Total of cost 12,070 9,236 11,560 4,668 3,952 3,044 6,806 3,762 3,940 3,238 9,276 10,640 82,192

116



No. of bag 156 95 90 35 44 49 70 45 95 28 256 50 1,013

Baht per piece 10 10 10 10 10 10 10 10 10 10 10 10 120

Cost of Bag 1,560 950 900 350 440 490 700 450 950 280 2,560 500 10,130

No. of Middle box 140 133 205 30 30 67 100 60 45 50 132 178 1170

Baht per piece 12 12 12 12 12 12 12 12 12 12 12 12 144

Cost of Box 1680 1596 2460 360 360 804 1200 720 540 600 1584 2136 14040

No.of large 205 167 245 88 85 90 270 70 88 70 158 199 1,735

Baht per piece 34 34 34 34 34 34 34 34 34 34 34 34 408

Cost of box 6970 5678 8330 2992 2890 3060 9180 2380 2992 2380 5372 6766 58990

Total of cost 10,210 8,224 11,690 3,702 3,690 4,354 11,080 3,550 4,482 3,260 9,516 9,402 83,160

117



No. of bag 175 101 129 33 34 54 70 29 90 34 120 56 925

Baht per piece 10 10 10 10 10 10 10 10 10 10 10 10 120

Cost of Bag 1,750 1,010 1,290 330 340 540 700 290 900 340 1,200 560 9,250

No.of Middle box 190 140 205 67 50 67 123 90 36 56 224 150 1398

Baht per piece 12 12 12 12 12 12 12 12 12 12 12 12 144

Cost of Box 2280 1680 2460 804 600 804 1476 1080 432 672 2688 1800 16776

No.of large 220 167 245 93 79 45 277 90 70 89 305 277 1,957

Baht per piece 34 34 34 34 34 34 34 34 34 34 34 34 408

Cost of box 7480 5678 8330 3162 2686 1530 9418 3060 2380 3026 10370 9418 66538

Total of cost 11,510 8,368 12,080 4,296 3,626 2,874 11,594 4,430 3,712 4,038 14,258 11,778 92,564

118



No. of bag 89 77 92 15 40 22 101 36 57 28 76 73 706

Baht per piece 10 10 10 10 10 10 10 10 10 10 10 10 120

Cost of Bag 890 770 920 150 400 220 1,010 360 570 280 760 730 7,060

No.of Middle box 255 133 195 97 34 89 170 45 36 34 223 150 1461

Baht per piece 12 12 12 12 12 12 12 12 12 12 12 12 144

Cost of Box 3060 1596 2340 1164 408 1068 2040 540 432 408 2676 1800 17532

No.of large 255 230 254 70 99 90 198 100 78 65 205 278 1,922

Baht per piece 34 34 34 34 34 34 34 34 34 34 34 34 408

Cost of box 8670 7820 8636 2380 3366 3060 6732 3400 2652 2210 6970 9452 65348

Total of cost 12,620 10,186 11,896 3,694 4,174 4,348 9,782 4,300 3,654 2,898 10,406 11,982 89,940

119

5.5 Raw Materials Cost

Raw Materials

1. Clay

Clay selection is necessary to consider especially for producer. They need to under-

stand and know the qualification of clay because there are many types of clay with different

qualifications. Producer has to know the chemical composition, plasticity, shrinkages and fire

color which are the basic needs for apply to the right objectives of producer. Clay divides into

2 types

• Primary or residual Clay

Primary clay is found in the same place as the rock from which it is derived—it has28

not been transported by water or glacier and thus has not mixed with other forms of sediment.

Primary clay is heavy, dense, and pure. It includes kaolin that often used in ceramic and re-

fractory clays can withstand high temperatures. It contains less sand and fewer fragments.

Primary clays, when they have been cleared of rock fragments, tend to be relatively pure and

free from contamination with nonclay minerals. Potter value primary clays for their purity,

their whiteness, and their freedom from objectionable mineral or organic contamination.

Most kaolins are primary clays.

• Secondary or sedimentary Clay

Secondary or sedimentary clay is formed of lighter sediment that is carried farther in

water and deposited. This secondary clay, a mixture of sediment, is finer and lighter than

primary clay. It is clay that has been transported from the site of the original parent rock. Al-

though water is the most common agent of transportation, wind and glaciers may also carry

clay. Transported clays are more common than primary clays. They are ordinarily composed

of material from a variety of sources. They are apt to contain iron, quartz, mica, and other

impurities. It varies widely in composition. Including ball clays are highly plastic secondary

clays with little iron content. The great majority of secondary clays contain enough iron to

make them fire to a buff, brown, or red color, and the maturing temperature is usually quite

low. Varying additives give the clay different characteristics. Clay comes to a production pot-

ter in one of two forms—as a powder to which water must be added, or with water already

added.

28 http://blog.sina.com.cn/s/blog_4fcaa5bb0100ouj3.html

http://blog.sina.com.cn/s/blog_4fcaa5bb0100ouj3.html

120

Thus, we select secondary clay which is ball clay

from Pa Tueng, Mae jan, Chiang Rai because there

are clay which have suit characteristics for our pro-

duction and easy for us to carry clay to our manufac-

ture due to located around our area. Clay that we use

involve with composed of material from a variety of

sources. They contain iron, quartz, mica, and other

impurities. This reduces steps in production. We

don’t need to mix other materials for molding because

ball clay already has in itself and we can save the

production cost. The potter is easy to mold pottery

because ball clay is highly plastic. Moreover, the

great majority of it contain enough iron

to make them fire to a buff, brown, or red color, and

the maturing temperature is usually quite low.

We hire a Backhole to carry clay from source to company’ 5 cubic truck then deliver to our

manufacture. We dig out clay at depth 2 meter, width 4 meter× length 6 meter per time. The

cost of clay is 350 Baht per time (full in 5 cubic trucks). Because clay that we use is around

our company, we can get a cheap price. We plan to order 2 times per month so; we pay for

clay 700 Baht a month. We will order clay at the same amount in each month because we

have a method of clay preparation before molding. It take long time for waiting ready clay

that suit to mold pottery so, we need to keep large amount of clay in our stock.

Figure 5.4: The source of raw materials

121

2. Water

We need to use water as a mixture of some dried clay. This makes an easy way for

potter to mold pottery more smooth. We cannot identify how much water we need to mix

with clay. It depends on condition of clay at that time. Sometimes there are no need water but

sometimes, water is required.

3. Wood ash glazes

Wood ash is an alkaline containing widely variable amount of Ash from many plants.

We also use local plants as ingredient in wood ash such as longan and lichee plants. We can

find those plants around our area so, we don’t need to pay for this. We can save the cost of

raw materials. The ingredients that we mix as wood ash glaze as follow:

Terminalia Alata Combretaceae

Longan tree Lychee

122

4. Ferric oxide(color stain)

We use color power in painting with high performance

quality ceramic color stains, superfine particle size ready

to use. It is suitable for decorating by decal, colored glazes

and underglaze colors on earthenware, stoneware and por-

celain. This color stain is suitable for firing range 1000-

1400° c. The retention is to keep the color into dry place

and before using in each time, should blend in its color for

more smooth when painting.

We use 30 colors stain for our painting pottery. The size of each color is about 5 kg. (1kg. =

300 Baht). Thus, we need to pay for color stain 45,000 Baht at the first time that we start

doing business [(5kg × 300 Baht) × 30 colors]. We order color stain from Cowin Color Co.,

Ltd. where is located in 86 Moo 7, Thakham Road Samaedam, Bangkhunthian, Bangkok

10150 Tel: 02 453 1788 , Website: http://www.cowincolor.com/

SF-6140 Black/Co-Free SF-6149 Black SF-6168 Stone Grey SF-6250 Royal Blue

SF-6256 Cobalt Blue SF-6258 Deep Blue SF-6262 Teal Blue SF-6280 Turquoise

SF-6300 Chocolate SF-6301 Dark Brown SF-6336 Red Brown SF-6339 Salmon Brown

SF-6412 Chrome Green SF-6449 Dark Green SF-6450 Peacock SF-6646 Bright Green

SF-6500 Scarlet SF-6502 Bright Red SF-6521 Red Orange SF-6527 Coral

SF-6530 Pink SF-6533 Alumina Pink SF-6535 Rose SF-6540 Maroon

SF-6550 Violet SF-6575 Lilac SF-6601 Mandarin SF-6623 Praseodymium

http://dict.longdo.com/search/blend%20in

http://www.cowincolor.com/

123

Table 5.6 Total cost of Raw Materials

No. Descript Total

1 Clay 8,400

2 Ferric oxide(color stain) 90,000

Total 98,400

5.6 . Direct Labor

1. Factory Manager : 1 position

Salary/ month 15,000 baht

Responsibilities:

To manage the overall the operations of manufacturing, resale, delivery and customer

services process, Day-to-day working relationship with operations team, technical

team and commercial team. Manage the overall operations outputs to ensure optimum

service levels, productivity, cost efficiency and quality.

Supply Chain

Ensure that on-time delivery is achieved and Customers’ expectations on standards

and requested delivery lead time are met

Manage supply chain for re-sales items to optimize both service and inventory days

Oversee the procurement of the equipment and raw materials to ensure that they meet

with IFF quality and delivery lead time.

Manage the storage of the raw materials to ensure that quality is maintained and first-

in-first-out procedures are followed.

Manage warehouse and distribution to ensure cost efficiency and effectiveness

Optimize inventory days – minimum inventory for maximum service levels

Minimize SMOG and Aging inventory

Production

Continuously improve production and production supply process to increase capacity

Measure utilization, anticipate capacity issues and resolve on time

Oversee and manage the safety and hygiene of the manufacturing plant to provide a

safe and clean working environment and to meet the GMP and IFF safety standards

(SERA).

124

Oversee proper Preventive Maintenance and other maintenance activities

Quality

Oversee the QC process to ensure the consistency of the quality in both raw materials

and products.

Implement quality behavior in people

Oversee the whole FL production and warehouse process to ensure optimum quality

and meet GMP, AIB and HACCP standards.

Ensure full traceability for all Raw Materials and Finished Goods

Manage Customer Complaints, root cause analysis and implement preventive actions

Manufacturing Expense

Manage the expenses of the operations unit to ensure that they meet the budget set

(LIP)

Continuously seek cost optimization, balancing throughput, inventory and

manufacturing expense

Operations Planning and execution

Set PMP goals for the staff of operations unit aligned with operational targets and

plans

Identify training and development needs to improve the skills, performance and occu-

pational health and safety of the employees.

Develop the Site Master plan (5 year outlook) for required capacity and budget re-

quirements; annually prepare the Operations Capital Budget; prepare Capital requests

and manage capital projects

Develop the Operations Plan based on Operational targets and capital Budget

Requirements:

Bachelor degree in Food Science or related field.

More than 5 years experiences in managing a manufacturing plant and logistics.

Strong communication skills and leadership skills

Strong knowledge and implementation experience in GMP/HACCP

Customer-oriented and quality oriented

2. Technician : 1 positions

Salary / month 8,500 baht

125

3. Potter : 10 positions


Responsibilities:

More than 5 years experienced with technical knowledge of pottery manufacturing.

Having numerical skills by calculating cost of materials used in his design

Working with accurate information and details

Can work in Computer using Illustrator or anymore

Requirements:

Experience over : 5 years

Age begin 30 years or above

Gender : Male/Female

4. Product Designer : 1 position


Responsibilities:

Multi-tasking: graphic designers often work on more than one design brief at a time.

Using a wide range of media, including photography and computer aided design.

Developing design briefs by gathering information and data to clarify design issues.

Thinking creatively to produce new ideas.

Contributing ideas and design at work to the overall brief.

Producing accurate and high quality work.

Using innovation to redefine a design brief and meet the constraints of cost, time and

client.

Interpreting the business needs.

Keeping abreast of developments in IT, particularly design programs.

Requirements:

Male/Female aged not over 28

Bachelor’s Degree in Arts, design or related field.

Good command in Photoshop, Illustrator etc.

Fresh graduated preferable.

Self-motivated, Innovative and team player.

Highly responsibility and able to work under pressure

Good command in English both spoken and written.

126

Driving License holder and military exemption.

5. Quality Controller : 1 position


Responsibilities:

To plan, implement and supervise QA function for EOC, Tablets and Outsourcer’s’

process including sampling, rejection and evaluation of raw materials and ensure that

production processes are in accordance with Good Manufacturing Practice (GMP),

Hazard Analysis Critical Control Point (HACCP), Good Laboratory Practice (GLP)

and Standard Production Instruction (SPI)

Requirements:

Bachelor Degree in Food Science / Food Technology / Biotechnology / Product de-

velopment / Food engineering or higher degree in related field.

Master Degree in Business Administration is advantage.

At least 6 years experience in food industry for a graduate of Bachelor Degree in

Science and 5 years for MBA

Strong initiative and follow-through

Good interpersonal Skill and communication skill

Strong leadership

Fluent English communication and computer literacy

6. Stock Controller : 1 position


Responsibilities:

Report to Production Director

Subordinate is 4 Section Manager, and 110 operator in production department

To be the window to connect between Director and Staff

Develop the operations team, including supervisors, leads, and associates, into the co-

hesive staff to properly maintain a “Zero defects” philosophy

Create scheduling tools to assist in controlling department work load uniformly across

a specific time horizon, Planning the production and material, man

Ensure that operators in each department accomplish their task as per established rules

and procedures

127

Ensure that the material is dispatched to the various sectors and that the flow of ma-

terial meets the plans

Supplies adequate and timely reports to upper management

Requirements:

Age 33 years old up

Bachelor Degree in Industrial engineering, or related field

5 years experience in Production Management, Manufacturing Environment, produc-

tion planning

2-3 years experience in Supervisor or Leader Level

Have a knowledge about Statistics process control (SPC), Six Sigma, TQM is a plus

Good in English for speaking, listening, reading & writing

Have a leadership skill

Ability to solve problem

Have a good human relationship

7. Baking Person : 1 position


Responsibilities:

Responsible for conceptual design, detailed design, equipment specification, identify

Measurement & Verification System (M&V), construction and commissioning super-

vision, inspection, training, and installation of M&V system, monitor its efficiency

and verify the saving according to the M&V system.

Design and supervise construction of Advance Large Scale Energy Efficiency Project,

Productivity Improvement, Environment and Quality project such as Cogeneration

Plant - Biomass/ NG/ Solid Fuel, Absorption Chiller, Heat Recovery, etc., for our

clients (Industrial, Commercial Building or other business).

To collaborate with the project manager, contractor or client during project phases re-

lated to electrical engineering issues.

Coordinating and visiting contractors on site and advising on electrical engineering is-

sues

Requirements:

Male Thai Nationality

Bachelor’s degree or higher in Electrical Engineering.

Minimum 2-3 years experience in Electrical design and project management.

128

Engineering License: Associate Engineer or higher level from Council of Engineers.

Hands-on experiences with Power Generation System, HV/MV Substation, Refrigera-

tion, Air Conditioning System, Renewable Energy and other Energy Efficiency Tech-

nologies are preferable.

Experience with Energy Efficiency Project, Construction of power plant, work with

Consulting Company in energy field, would be an advantage.

Ability to influence and motivate the project team through interpersonal skills

Ability to learn and self improvement

8. Packaging : 1 position


Responsibilities:

Multi-tasking: graphic designers often work on more than one design brief at a time.

Developing design briefs by gathering information and data to clarify design issues.

Thinking creatively to produce new ideas.

Contributing ideas and design at work to the overall brief.

Producing accurate and high quality work.

Interpreting the business needs.

Requirements:

Male/Female aged not over 28

Bachelor’s Degree in Arts, design or related field.

Fresh graduated preferable.

Self-motivated, Innovative and team player.

Driving License holder and military exemption.

9. Delivering Person : 1 position


Responsibilities:

To driving a car to serve products to customer

To buying raw materials and equipment

129

Requirements:

Male Thai Nationality

Ability to solve problem

Have a good human relationship

Table 5.7 Total direct labor cost per month

No. Position Quantity Salary Total

1 Factory Manager 1 15,000 15,000

2 Technician 1 8,500 8,500

3 Potter 10 6,000 60,000

4 Product Design 1 9,500 9,500

5 Quality Controller 1 8,000 8,000

6 Stock Controller 1 7,000 7,000

7 Baking person 1 5,000 5,000

8 Packaging 1 6,000 6,000

9 Delivering person 1 6,000 6,000

Total 125,000

130

5.7 Manufacturing Overhead

1. Factory utilities

1.1 Water Expense / month

Water is the important factor in the process of produce the pottery. From the informa-

tion if the Cray one ton, we will use water 300 liters. For Pottery Design, the operation will

depend on the sale forecast per month because our sale base on amount of tourists (Thai and

foreigner) who come to Chiang Rai and amount of new hotel and spa in Chiang Mai. We also

forecast amount of selling pottery base on seasonal factor. Thus, water expenses per month

will not the same.

Table 5.8 Water tariffs29

29 http://www.mwa.co.th/ewt/mwa_internew/watercost.html

131

Table 5.9 Total water expense per month

No. Month Water vo-lume/cu.m.

Water ex-pense

General ser-vice VAT 7% Total

1 Jan 80 1,337

550 132 2,019

2 Feb 80 1,337

550 132 2,019

3 Mar 80 1,337

550 132 2,019

4 Apr 75 1,247

550 126 1,923

5 May 75 1,247

550 126 1,923

6 Jun 75 1,247

550 126 1,923

7 Jul 60 977

550 107 1,634

8 Aug 60 977

550 107 1,634

9 Sep 85 1,428

550 138 2,116

10 Oct 85 1,428

550 138 2,116

11 Nov 80 1,337

550 132 2,019

12 Dec 80 1,337

550 132 2,019

Total 23,366

132

1.2 Electricity Expense / month

Electricity is very important factor in our company because the method of dried will

use the electricity and almost process in production will use it also. We estimate for use elec-

tricity 22-33 K.W pressure and use in peak time. So, the electricity bill calculates from:

22-23 meter pressure in Time of use rate (TOU)

Estimate use of electricity 850 units* 2.6950 =2,290.75 Baht

Add. (+) Service expense = 228.17 Baht

Add. (+) VAT 7 % =176.32 Baht

Total Electricity expense per month =2695.25 Baht

Table 5.10 The Time Of Use Rate (TOU)30

*Peak Mon-Fri: 9a.m. - 8 p.m.

Off Peak Mon-Fri: 8p.m. - 9 a.m. & Holiday

30 http://www.pea.co.th/th/rates/rates_separateTOU3_2to6_2.htm

Time of Use Rate (TOU)

Energy Charge

(Baht/Unit) Service fee

(Baht/Month) Peak Off Peak

Pressure 22-23 Kilovolts 2.6950 1.1914 288.17

Pressure 22 Kilovolts 2.8408 1.2246 288.17

133

Factory insurance

1. Car insurance

Figure 5.5: Logo Ayudhya Allianz C.P.

Pottery design has to purchase the car insurance via www. Todayinsure.com. It is Al-

lianz cp insurance, which is Allianz cp 2 plus car insurance. The insurance plan provides

more cover to the damage to the vehicle insured from land transport. The limited protection

that we will get is 1,000,000 Baht. So, the Allianz cp 2 plus insurance plus taxation per year

is 7,740 Baht per year and plus enactment car free is 920, so total of insurance car plus

enactment car free is 8,660 Baht per year. It is a fix cost that we have to pay in the beginning

of the year.

2. Fire insurance

Figure5.6: Logo Muang Thai Insurance

Pottery design does fire Insurance with Muang Thai Insurance with limits protection

is 2,000,000 Baht and insurance rate is 2,579 Baht per years, it is a fix cost. Muang Thai In-

surance are protect everything in the shop and protection for year

134

5.8 Operating Cost

Table 5.11 Total operating cost

Operating Cost

No. Descript 2012 2013 2014 2015 2016

1 Raw materials

98,400

98,400

98,400

98,400

98,400

2 Direct labor cost

125,000

125,000

125,000

125,000

125,000

3 Water Expense

23,366

23,366

23,366

23,366

23,366

4 Electicity Expense

32,340

32,340

32,340

32,340

32,340

5 Factory insurance

11,239

11,239

11,239

11,239

11,239

6

The cost of bag and

box

75,358

82,192

83,160

92,564

89,940

Total

365,703

372,537

373,505

382,909

380,285

135

Table 5.12 Total operating cost Year 2012


136



137


138

5.9. Conclusion

We serve 2 types of modern pottery to consumers which are home ware (plate, bowl.

Spoon and fork and teapot) and decorative items (vase, lamp and spa set). We produce pot-

tery by natural resources which can easy to find near our area. The raw materials include with

ball clay that compose a variety of sources. The potter is easy to mold pottery because ball

clay is highly plastic. Water is also required. And the wood ash glazes use local plants as in-

gredient such as longan and lichee plants. We use color stain which is secure for general

usage. Using local material can reduce the production cost. Our pottery is unique style which

consumer can perceive value from them. The health of consumer will be safety when they use

our pottery because we use natural resources. For service process, we have two processes

that serve to the consumer who come to our shop. We open at 9 am- 9 pm. daily so, they can

choose and can touch in real. We concern in the atmospherics of store especially on color,

scent, lighting and music. And another process is we serve to hotel& Spa in Chiang Mai.

We will give the catalog and order through the representative of company. We will deliver

the product to them at Chiang Mai. We provide the protected box for breaking of product and

having a company paper bag for consumer. We also have a special box for consumer who

purchases our product as a gift for special occasion. In operation process, we require the qua-

lifications employees work with our company. We need 9 positions for operation method

which are factory manager, technician, potter, product designer, quality controller, stock con-

troller, baking person, packaging and delivering person. For manufacturing overhead, we

need to pay for factory utilities which consist of water expense and electricity expense.

Moreover, we have to pay for the insurances of company’s car and the fire of company.

139

Chapter 6

Administration Cost

140

6.1 The Organization Chart of Pottery Design

CEO

Top Manager

Factory Manager

Technician Research & Development

Design Product

Quality Control

Stock Control

Production Control

Produce & Baking

Packaging

Delivering

Human Resource Manager

Recruitment

Training

Marketing Manager

Advertising

Selling

Financial Manager

Accountant

141

6.2. Administration Expense

6.2.1. The Employee Salary of Pottery Design Department31

1. Managing and controlling all department position

• Top manager department 1 person 17,000 baht

Total payment of salary 17,000 Baht

2. Employee in the Financing department

• Financing Manager 1 persons 15,000 baht

• Accountant 1 persons 13,000 baht


3. Employee in the Marketing department

• Marketing Manager 1 person 11,000 baht

• Sales person 1 persons 7,500 baht

• Advertising Assistant 1 persons 6,000 baht

** Sale person commission 0.1% for sale over-times


4. Employee in the Human Resource department

• Human Resource Manager 1 person 10,500 baht

• Recruitment 1 person 7,500 baht

• Training & Developing 1 person 7,500 baht


5. Employee in the other work department

• Housekeeper 1 person 4,500 baht

• Security Guard 1 person 4,500 baht


Total salary expense/month 104,000 Baht

**Overtime must be paid at time and one-half the regular rate of pay. The “regular rate” is an

hourly rate that will change for a salaried employee based upon the number of hours worked

31 http://www.adecco.co.th/Uploads/Knowledge-Center-Thought-Leadership/Thailand-Salary-Guide/Adecco-Thailand-Salary-Guide-2011.pdf

142

in a week. Since salary constitutes wages at straight time for all hours worked, the employer

owes an additional half-time for the hours in excess of 40 in a week.

Explanation of Employees32

Some things that the employee should consider in their own development include

seeking a variety of assignments, tackling tough problems and asking for feedback. Coaching

is another helpful activity, both in looking for opportunities to coach others and finding good

coaches for him or her. It can help to ask for feedback when working with a variety of people

and in a variety of situations. Employees should be looking for developmental relationships

that can provide a variety of learning. They can also identify goals for new skills and abilities

and then look for ways to meet those goals. It can also be helpful to attend classes and work-

shops to fill in conceptual needs.

The qualification of employees

• Top manager department

Specific Accountabilities:

Controlling and monitoring daily operations and continuing improvement service lev-

el included staff’s performance together with subordinates.

Set up the reasonable control system to avoid error and omission operations

Controlling and monitoring DSO, billing and collection incl. aging accrual cost and

income in monthly.

Controlling and monitoring revenue, cost of service, GP and operating expenses to

achieve company’s expectation.

To control and monitor Branch performance according to ISO procedure.

Work closely with Product Management and sales to set up financial and volume tar-

gets and support Key Account business development.

Work closely with Product Management to ensure operational excellence and process

optimization.

Other responsibilities are per Managing Director assignment

32 http://dwd.wisconsin.gov/er/labor_standards_bureau/publication_erd_13109_p.htm

143

Skills Required:

Highly leadership skills

Proficient in English and the other language is advantage.

Human Relationship Management skills

Office Management skills

Business Management skills

Communication and Negotiation skills

Human Resources skills

• Financing Manager

Responsibilities:

Responsible for formulating business budgets/planes

Improving the accounting function

Ensuring the statutory financial statements and annual accounting reports are prepared

in a timely manner

Control the operating expenses and capital expenditure program and ensuring that

taxation and Regulatory affairs of the business.

Optimize the effective use of personnel, technological resources and other business

assets

Requirements:

Thai nationality only

Bachelor degree in Finance & Accounting or any related fields

At least 5 years professional experience in a similar post is required

Clear understanding of accounting principles

Good communication of both spoken and written English

Proficient in Microsoft Office program especially Excel (advance level)

Accuracy, analytical thinking with strong business sense

Ability to plan, organize and generate expected result under pressure

Good knowledge in taxation and legal issues

Communicate with tenants on various payment

144

• Accountant

Responsibilities:

Check and coding Daily Collection report and properly posting to G/L and ensure that

all documents are properly attached (Daily Collection Vouchers, Pay-in slip, Invoices,

Tax Invoices, and Withholding Tax Certificate).

Prepare output VAT report and reconcile to G/L.

Maintain all copy of Maintenance Service contracts

Maintain & update Inventory system (APPX). Also prepare the reconciliation be-

tween Inventory System (APPX), G/L, and Inventory System maintained by Sigma.

Match T order number between T billing and T cost, and prepare monthly analysis for

T billing in advance and T cost in process.

Prepare monthly disbursement withholding tax (deducted from vendors) return to

government, and reconcile to G/L.

Prepare monthly analysis and reconciliation reports as concerned

Prepare bank guarantee requisition to banks and maintain control files for follow up.

Also prepare the monthly reconciliation between company record and bank record.

Prepare a purchase tax report for submission to government on monthly basis.

Prepare purchase tax reconciliation with G/L.

Prepare monthly VAT return (ภพ. 30) and submit to government.

Prepare Pay-in slip for all checks/cash received from customers to be deposited to

bank the next day.

Coding and preparing vouchers for MER of employees and key in to APPX.

Requirements:

University graduate BA in Finance, Accounting or equivalent.

Good computer skills especially MS Excel

Good communication and interpersonal skills are required

• Marketing Manager

Responsibilities:

Assist Brand Manager in brand equity management, market & competitor’s analysis,

and development of CP-branded product range innovation in overseas markets;

145

Work closely with Brand Manager in strategic implementation of below-the-line and

above-the-line activities as well as collaborate with related parties on packaging de-

velopment and management;

Requirements:

Male/Female, aged between 21-25 years;

Holder of a Bachelor’s degree in Business Administration with Marketing major, or

other related disciplines with business-related major;

Possess 1-3 year hands-on experience in Marketing, preferably in Food and Beverage,

or FMCG; new graduates with high caliber for challenging assignments and opportu-

nity are welcome to apply for the position;

Good command of English language and proficient with Microsoft Office programs,

the Internet, and e-mail application;

• Sales person

Responsibilities:

Able to work independently to achieve company target

Handle order process from design to finish products

Dealing with merchandise quality and cost control

Handle merchandise assortment to achieve target

Flexible sourcing ability to selective target

Requirements:

Thai nationality, male or female, age 25 years old up

Bachelor or Master Degree's in Fashion Design or any related fields.

Minimum 1 years experience about Merchandiser of Apparel.

Good communication skill, strategic thinking, creativity, result details oriented and

problem solving skill as well as multi tasks skill.

Positive thinking, Active, Coordinative Creative, Initiative & Effective

Willing to work hard in fast moving & love challenge.

• Advertising Assistant

Responsibilities:

Prepare or edit organizational publications for internal and external audiences

146

Establish and maintain cooperative relationships with representatives of communi-

ty, employee and public interest groups.

Arrange public appearances, lectures, or exhibits for clients to increase product and

service awareness and to promote goodwill

Writing and editing in-house, articles and annual reports.

Requirements:

Bachelor or Master degree in Public Relations, Business administration, or related

fields

Minimum 4 years experience in area of news writer and public relations

Self-motivated, analytical skill and systematic thinking

Excellent communication, presentation and negotiation skills

Excellent command of both spoken and written English

• Human Resource Manager

Responsibilities:

Support Trainers/ Account executive or team member for admin works

Delivering high quality services to participants on site for Training, Workshops, or

other projects.

Requirements:

Male or Female, not over 27 years of age

New Graduates are welcome, or with 1-2 years of work experience in the service in-

dustry or related field.

At least a bachelor’s degree in any field.

Possess professionalism and a customer service orientation.

Strong communication, interpersonal and organizational skills.

• Recruitment

Responsibilities:

Assist Recruitment Specialists on operation and administration of recruitment & se-

lection process, recruitment activities, and projects

Search and Screen resumes of the candidate and make an appointment to interview

Conduct in depth and face to face interview with the prospect candidates for final se-

lection process before submitting short listed candidates to the customer.

147

Provide support to recruitment team for any recruitment activities, such as walk-in in-

terview, open house, universities visit, etc.

Requirements:

Female only

Bachelor's Degree in IT or related fields.

Good interpersonal skill, has service mind, can work under pressure, self motivated,

good attitude

• Training & Developing

Responsibilities:

Provide a first class career development service to the business in line with Group’s

strategy of attract.

Develop and motivate our executive officers.

Ensure that executive officers are identified and development interventions are

created and launched, linking effectively to succession planning process.

Requirements:

Bachelor’s Degree or higher in HRM, Political Sciences or related field

Fluent in both written and spoken English

Microsoft Word, Excel and PowerPoint skill

Strong planning, implementation and influencing skills are required

• Housekeeper

Responsibilities:

To cleaning office and manufacture

Access in shelf of pottery

• Security Guard

Responsibilities:

To rescuer office and manufacture

Access in shelf of pottery

148

6.2.2. Rental Fee

The building official of our company was buying in part of operating cost.

Therefore we don’t have rental free in administration cost.

6.2.3. The Cost of Facility Bill Payment

Telephone Expense33

The KX-TES824BX Advanced Hybrid Systems are phone systems which can

support your business and personal needs. The KX-TES824BX Up to 8 CO lines and 24 Ex-

tensions. Direct Inward System Access (DISA) with message. Uniform Call Distribution

(UCD) with message. Caller ID Display on SLT

Prepaid Promotion

Table 6.1 Calling Rate

Package 1st time Deposite

(baht)

Calling Rate

Expired (day) Destination:

Fixed line

Destination: Mobile

and 3BB Phone

number International

Samll 50 0.35 baht/min. 1.50 baht/min.

Special rate 60 countries.

365 100

Medium 300 0.30 baht/min. 1.50 baht/min.

Large 500 0.25 baht/min. 1.25 baht/min.

(Estimate monthly phone bill is 1,790 Baht/per month.)

Internet Expense34

A high-speed internet service by ADSL technology (Asymmetric Digital Subscriber

Line) via an existing phone line por. Maximum 6 Mbps download speed and 512 Kbps max-

imum uploading speed in always-on connection, unlimited internet access , with the transmis-

sion speed varying upon the distance and the quality of the lines.

33 http://www.totnetcall.com/VoIP/rate.aspx 34 http://www.toteservice.com/thai/adsl/

149

Promotion details of TOT’s company

• Require one-month advance payment

• Pay 100 baht equipment deposit fee (Deposit fee will be refunded when the con-

tract is terminated and router is returned in fine condition.)

• The company will gradually increase speed to 6 Mb.

• The package is 590 per month. Monthly fee (Exclusive of VAT 7%)

(Estimate monthly internet bill is 631.3 Baht/per month.)

Water Expense35

We can get the water from Provincial Regional office. Rate of water calculate by

each person who use water by meter which recorded multiply current water rate the result

won’t less than water tariffs minimum rate in each type.

Formula to calculate

Price of Water Tariffs = [amount of using water + service fee] + value add taxes. The price of

water is calculated by the user who use much or less in business. Its citizen begs for water

supply from government to invent and build water supply system. The government takes

some part of taxes revenues to water supply system to community with appraise water Tariffs

rate to user. The water supply is created and send but no use is wasteful for water.

Table 6.2 The water expense by Type of user

Type of user

Period of using water

(liter/month)

Hose hold and

etc.(sting/liter)

Water tariffs min-

imum rate

Government service

and small busi-

ness(sting/liter)

Water tariffs mini-

mum rate

State Enterprises

industry and large

business(sting/liter)

Water tariffs mini-

mum rate

0 - 1,000 0.755 0.900 1.00

10,001-20,000 0.850 1.175 1.300

20,001- 30,000 1.075 1.300 1.600

30,001-50,000 1.275 1.400 1.900

50,001- 80,000 1.400 1.440 2.100

100,001- 300,000 1.460 1.460** 2.150

35 http://www.business-in-asia.com/investment_costs2.html

150

300,001 - 1,000,000 1.470 1.470 2.175

1,000,001 – 2,000,000 1.480 1.480 2.150

2,000,001 – 3,000,000 1.490 1.490 2.125

3,000,001 more than 1.500 1.500 2.100

*** The company used rate 100,001- 300,000 = 1.460 Baht.

Price of water Tariffs

Estimate used (65,000 liter*1.440)/100 = 936 Baht VAT 7% = 65.52 Baht

Service Fee = 30 Baht = 1,001.52 Baht

(Total 1,001.52 + 30 = 1,001.52 Baht/month)

We estimate for use electricity 22-33K.W pressure.

Electricity Expense / month36

Electricity is very important factor in our company because the method of dried will

use the electricity and almost process in production will use it also. We estimate for use elec-

tricity 22-33 K.W pressure and use in peak time. So, the electricity bill calculates from:

Formula to calculate

22-23 meter pressure in Time of use rate (TOU)

Estimate use of electricity 350 units* 2.6950 = 943.25 Baht

Add. (+) Service expense = 228.17 Baht

Add. (+) VAT 7 % = 81.99 Baht

Total Electricity expense per month = 1,253.42 Baht

Table 6.3 The Time Of Use Rate (TOU)37 36 http://www.pea.co.th/th/rates/rates_separateTOU3_2to6_2.htm

Time of Use Rate (TOU) Energy Charge

(Baht/Unit)

Service fee

(Baht/Month)

Peak Off Peak

Pressure 22-23 Kilovolts 2.6950 1.1914 288.17

Pressure 22 Kilovolts 2.8408 1.2246 288.17

http://www.pea.co.th/th/rates/rates_separateTOU3_2to6_2.htm

151

*Peak Mon-Fri: 9a.m. - 8 p.m.

Off Peak Mon-Fri: 8p.m. - 9 a.m. & Holiday

6.2.4. Training & Development of Employee

Employee development is a joint, on-going effort on the part of an employee and the

organization for which he or she works to upgrade the employee's knowledge, skills, and ab-

ilities. Successful employee development requires a balance between an individual's career

needs and goals and the organization's need to get work done. Employee development pro-

grams make positive contributions to organizational performance. A more highly-skilled

workforce can accomplish more and a supervisor's group can accomplish more as employees

gain in experience and knowledge, and also supported the commonly held belief that em-

ployee development programs make positive contributions to organizational performance. A

more highly skilled workforce can accomplish more as the individuals gain in experience and

knowledge. In addition, retaining an employee saves the organization a great deal of money.

One method of retention is to provide opportunities to develop new skills. In research con-

ducted to assess what retained employees, development was one of the top three retention

items.

The Role of the Manager in Employee Development

The manager has several roles to play, but providing information and support to facilitate the em-

ployee's development is what is most important. There are a few basic roles for a supervisor in devel-

oping employees. They include:

Coaching employees to help them determine what they need for development

Providing both positive and corrective feedback

Offering organizational insight, information, and advice

Guiding the planning through goal setting and checking back over time

Allotting time and money for development experiences

Ensuring opportunities for applications of new learning

It is very helpful for an employee to get an honest assessment of their work, as well as access to others

who may be able to provide information or coach the employee. The successful supervisor will also

respect every employee's learning curve. It takes time for anyone to learn new skills and be able to

152

apply them well; this does not happen overnight. Building this development time into the application

of a new skill set will make the employee more successful.

(The cost of Training & Development of Employee is 20,000 Baht/Year)

153

6.2.5 Total Administration Cost Year 2012 - 2016

Table 6.4 Total Administration Cost Year 2012 – 2016

154

Table 6.5 The administration expense Year 2012



155



156

6.4. Conclusion

The expenses that an organization incurs not directly tied to a specific function such

as manufacturing/production or sales. These expenses are related to the company, and also

referred to as “administrative cost.” Our company has administration expense in official

parts. From the administration expense, The Pottery Design consist the cost of water, electric-

ity, telephone, internet, salary of employees(except salary of employees in factory overhead),

internet, cost of official equipment, and also including cost of training and development of

employees. The amount of money that we can separate in two parts, there are fixed cost and

variable cost. For the fixed cost are including the pay roll method of salary payment, cost of

internet, cost of training and development. For the variable cost, there are including the cost

of water, electricity, telephone, and other official equipment depend on used. In the other

part, the rental free no has in this part because we have purchasing the land in the part of in-

vesting and also building of factory. In administration official, we require the qualifications

employees work with our company. We need 11 positions for working in official which are

top manager department, financing manager, accountant, marketing manager, salesman, ad-

vertising assistant, human resource manager, recruitment, training & developing, housekee-

per, and security guard. Therefore, the cost that occurs within official will included in admin-

istration expense.

157

Chapter 7

Financial Analysis

158

Financial situation of company

Our company borrows money from investor. We borrow 10,000,000 Baht and the interest rate is 20 % per year. We will pay back the

principle and interest to investor every month.

7.1 Income statement

Table 7.1 Income statement Year 2012

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

Sales 4,734,170 4,480,540 3,367,130 2,750,380 2,344,485 1,633,475 1,919,355 2,688,095 3,171,000 3,309,965 3,973,765 4,521,150 38,893,510 Cost of goods sold 2,635,160 2,493,960 1,874,310 1,530,920 1,305,060 909,240 1,068,410 1,496,200 1,765,160 1,842,450 2,211,790 2,516,660 21,649,320

Gross profit 2,099,010 1,986,580 1,492,820 1,219,460 1,039,425 724,235 850,945 1,191,895 1,405,840 1,467,515 1,761,975 2,004,490 17,244,190 Expense

Operating expenses 205,939 146,338 149,674 141,920 141,504 140,382 189,165 141,219 141,537 141,279 147,270 146,874 1,833,101 Administration expenses 109,134 109,134 109,134 109,134 109,134 129,134 109,134 109,134 109,134 109,134 109,134 109,134 1,329,608 Marketing expense 3,490 3,000 3,000 3,000 34,700 3,000 3,000 3,000 3,000 3,000 34,700 3,000 99,890 Pre-investment expense 6,790,500 6,790,500Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648 Total expenses 7,169,117 318,526 321,862 314,108 345,392 332,570 361,353 313,407 313,725 313,467 351,158 319,062 10,773,747

Income before interate and taxes 5,070,107- 1,668,054 1,170,958 905,352 694,033 391,665 489,592 878,488 1,092,115 1,154,048 1,410,817 1,685,428 6,470,443 Interest expense 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 2,000,004

Income before income taxes 5,236,774- 1,501,387 1,004,291 738,685 527,366 224,998 322,925 711,821 925,448 987,381 1,244,150 1,518,761 8,470,447 Income taxes expenses 1,541,032 450,416 301,287 221,605 158,210 67,499 96,877 213,546 277,634 296,214 373,245 455,628 2,541,134

Net Income(Loss) 6,777,806- 1,050,971 703,004 517,079 369,156 157,499 226,047 498,275 647,814 691,167 870,905 1,063,133 17,243

Pottery Design companyIncome Statement

For Year Ended December 31,2012

159


Sales 6,072,535 5,560,605 3,348,200 2,757,675 2,515,515 1,982,140 1,795,340 2,558,850 2,973,455 3,617,875 5,631,385 5,959,780 44,773,355 Cost of goods sold 3,380,130 3,095,210 1,863,930 1,534,910 1,400,210 1,103,290 999,330 1,424,360 1,655,090 2,014,070 3,134,760 3,317,370 24,922,660


Operating expenses 206,423 147,350 149,674 142,686 141,970 141,062 189,535 141,491 142,151 141,449 147,390 148,754 1,839,935 Administration expenses 109,134 109,134 109,134 109,134 109,134 129,134 109,134 109,134 109,134 109,134 109,134 109,134 1,329,608 Marketing expense 233,490 3,000 3,000 3,000 99,700 3,000 233,000 3,000 3,000 3,000 99,700 3,000 689,890 Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648 Total expenses 609,101 319,538 321,862 314,874 410,858 333,250 591,723 313,679 314,339 313,637 416,278 320,942 4,580,081

Income before interate and taxes 2,083,304 2,145,857 1,162,408 907,891 704,447 545,600 204,287 820,811 1,004,026 1,290,168 2,080,347 2,321,468 15,270,614 Interest expense 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 1,536,180

Income before income taxes 1,955,289 2,017,842 1,034,393 779,876 576,432 417,585 76,272 692,796 876,011 1,162,153 1,952,332 2,193,453 13,734,434 Income taxes expenses 586,587 605,353 310,318 233,963 172,930 125,275 22,882 207,839 262,803 348,646 585,700 658,036 4,120,330

Net Income 1,368,702 1,412,489 724,075 545,913 403,502 292,309 53,390 484,957 613,208 813,507 1,366,632 1,535,417 9,614,104




160


Sales 7,234,360 6,779,915 3,692,265 2,942,425 2,942,090 2,371,265 2,155,730 3,091,210 2,938,240 3,515,450 6,543,145 7,239,300 51,445,395 Cost of goods sold 4,027,010 3,773,790 2,055,060 1,638,170 1,637,780 1,320,310 1,200,320 1,720,630 1,635,880 1,957,020 3,642,670 4,030,090 28,638,730

Gross profit 3,207,350 3,006,125 1,637,205 1,304,255 1,304,310 1,050,955 955,410 1,370,580 1,302,360 1,558,430 2,900,475 3,209,210 22,806,665 Expense


Income before interate and taxes 2,600,109 2,687,599 1,315,213 990,347 893,714 716,395 359,413 1,057,113 987,479 1,244,771 2,483,957 2,889,506 18,225,616 Interest expense 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 1,179,936


Net Income 1,751,247 1,812,490 851,819 624,413 556,770 432,647 182,759 671,149 622,406 802,510 1,669,940 1,953,825 11,931,976




161





Income before interate and taxes 2,996,019 3,099,970 2,121,913 1,496,178 921,433 583,540 260,064 949,463 1,382,204 1,876,133 2,890,455 3,121,150 21,698,518 Interest expense 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 906,300

Income before income taxes 2,920,494 3,024,445 2,046,388 1,420,653 845,908 508,015 184,539 873,938 1,306,679 1,800,608 2,814,930 3,045,625 20,792,218 Income taxes expenses 876,148 907,333 613,916 426,196 253,772 152,404 55,362 262,181 392,004 540,182 844,479 913,687 6,237,666

Net Income 2,044,346 2,117,111 1,432,471 994,457 592,135 355,610 129,177 611,756 914,675 1,260,425 1,970,451 2,131,937 14,554,553




162





Income before interate and taxes 3,828,499 3,886,767 1,956,007 1,526,090 1,088,910 601,881 364,346 1,321,078 1,717,712 2,209,583 3,261,962 3,872,306 25,635,137 Interest expense 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 696,120

Income before income taxes 3,770,489 3,828,757 1,897,997 1,468,080 1,030,900 543,871 306,336 1,263,068 1,659,702 2,151,573 3,203,952 3,814,296 24,939,017 Income taxes expenses 1,131,147 1,148,627 569,399 440,424 309,270 163,161 91,901 378,920 497,911 645,472 961,186 1,144,289 7,481,705

Net Income 2,639,342 2,680,130 1,328,598 1,027,656 721,630 380,709 214,435 884,147 1,161,791 1,506,101 2,242,766 2,670,007 17,457,312




163

Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. TotalCash flows from operating activity:

Cash inflowNet income (Loss) 4,734,170 4,480,540 3,367,130 2,750,380 2,344,485 1,633,475 1,919,355 2,688,095 3,171,000 3,309,965 3,973,765 4,521,150 38,893,510 Depreciation expenses 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648 Cash inflow from operating activity 4,794,224 4,540,594 3,427,184 2,810,434 2,404,539 1,693,529 1,979,409 2,748,149 3,231,054 3,370,019 4,033,819 4,581,204 39,614,158

Cash outflowCash paid for Cost of Good Sold 2,635,160 2,493,960 1,874,310 1,530,920 1,305,060 909,240 1,068,410 1,496,200 1,765,160 1,842,450 2,211,790 2,516,660 21,649,320 Cash paid for operating expense 205,939 146,338 149,674 141,920 141,504 140,382 189,165 141,219 141,537 141,279 147,270 146,874 1,833,101 Cash paid for marketing expense 3,490 3,000 3,000 3,000 34,700 3,000 3,000 3,000 3,000 3,000 34,700 3,000 99,890 Cash paid for administrative expense 109,134 109,134 109,134 109,134 109,134 129,134 109,134 109,134 109,134 109,134 109,134 109,134 1,329,608 Cash paid for interest 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 2,000,004 Cash paid for taxes 1,541,032 450,416 301,287 221,605 158,210 67,499 96,877 213,546 277,634 296,214 373,245 455,628 4,453,196 Cash outflow from operating activity 4,661,422 3,369,515 2,604,072 2,173,246 1,915,275 1,415,922 1,633,253 2,129,766 2,463,132 2,558,744 3,042,806 3,397,963 31,365,119

Net cash flows from operating activity 132,802 1,171,079 823,112 637,188 489,264 277,607 346,156 618,383 767,922 811,275 991,013 1,183,241 8,249,039 Cash inflow from investing activity:

Cash inflowCash received from sold equipment - - - - - - - - - - - - -

Cash outflowCash paid for building 5,433,420 - - - - - - - - - - - 5,433,420 Cash paid for purchase of land 600,000 - - - - - - - - - - - 600,000 Cash outflow from investing activity 6,033,420 - - - - - - - - - - - 6,033,420

Net cash flows from investing activity 6,033,420- - - - - - - - - - - - 6,033,420- Cash flows fom financing activity:

Cash inflowCash Loan 10,000,000 - - - - - - - - - - - 10,000,000 Cash inflow from financing activity 10,000,000 - - - - - - - - - - - 10,000,000

Cash outflowCash paid for long-tern note payable 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256Cash outflow from financing activities 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256

Net cash flows from financing activity 9,806,744 193,256- 193,256- 193,256- 193,256- 193,256- 193,256- 193,256- 193,256- 193,256- 193,256- 193,256- 9,806,744 Net cash increase or decrease 3,906,126 977,823 629,856 443,932 296,008 84,351 152,900 425,127 574,666 618,019 797,757 989,985 12,022,363 Beginning cash - 4,022,578 5,000,401 5,630,257 6,074,188 6,370,196 6,454,547 6,607,447 7,032,573 7,607,239 8,225,258 9,023,015 - Ending cash 4,022,578 5,000,401 5,630,257 6,074,188 6,370,196 6,454,547 6,607,447 7,032,573 7,607,239 8,225,258 9,023,015 10,013,000 12,022,363

For Year Ended December 31,2012Statement of Cash flowPottery Design company

7.2 Statement of Cash flow

Table 7.7 Statement of Cash flow Year 2012

164



Cash outflowCash paid for Cost of Good Sold 3,380,130 3,095,210 1,863,930 1,534,910 1,400,210 1,103,290 999,330 1,424,360 1,655,090 2,014,070 3,134,760 3,317,370 24,922,660 Cash paid for operating expense 206,423 147,350 149,674 142,686 141,970 141,062 189,535 141,491 142,151 141,449 147,390 148,754 1,839,935 Cash paid for marketing expense 233,490 3,000 3,000 3,000 99,700 3,000 233,000 3,000 3,000 3,000 99,700 3,000 689,890 Cash paid for administrative expense 109,134 109,134 109,134 109,134 109,134 129,134 109,134 109,134 109,134 109,134 109,134 109,134 1,329,608 Cash paid for interest 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 1,536,180 Cash paid for taxes 586,587 605,353 310,318 233,963 172,930 125,275 22,882 207,839 262,803 348,646 585,700 658,036 4,120,330 Cash outflow from operating activity 4,643,779 4,088,062 2,564,071 2,151,708 2,051,959 1,629,776 1,681,896 2,013,839 2,300,193 2,744,314 4,204,699 4,364,309 34,438,603

Net cash flows from operating activity 1,488,810 1,532,597 844,183 666,021 523,610 412,418 173,498 605,065 733,316 933,615 1,486,740 1,655,525 11,055,400 Cash inflow from investing activity:


Cash outflowCash paid for building - - - - - - - - - - - - - Cash paid for purchase of land - - - - - - - - - - - - - Cash outflow from investing activity - - - - - - - - - - - - -

Net cash flows from investing activity - - - - - - - - - - - - - Cash flows fom financing activity:

Cash inflowCash Loan - - - - - - - - - - - - - Cash inflow from financing activity - - - - - - - - - - - - -

Cash outflowCash paid for long-term note payable 148,438 148,438 148,438 148,438 148,438 148,438 148,438 148,438 148,438 148,438 148,438 148,438 1,781,256Cash outflow from financing activities 148,438 148,438 148,438 148,438 148,438 148,438 148,438 148,438 148,438 148,438 148,438 148,438 1,781,256

Net cash flows from financing activity 148,438- 148,438- 148,438- 148,438- 148,438- 148,438- 148,438- 148,438- 148,438- 148,438- 148,438- 148,438- 1,781,256- Net cash increase or decrease 1,340,372 1,384,159 695,745 517,583 375,172 263,980 25,060 456,627 584,878 785,177 1,338,302 1,507,087 9,274,144 Beginning cash 10,013,000 11,353,372 12,737,531 13,433,276 13,950,860 14,326,032 14,590,012 14,615,072 15,071,699 15,656,577 16,441,754 17,780,057 10,013,000 Ending cash 11,353,372 12,737,531 13,433,276 13,950,860 14,326,032 14,590,012 14,615,072 15,071,699 15,656,577 16,441,754 17,780,057 19,287,144 738,855-

Pottery Design companyStatement of Cash flow



165



Cash outflowCash paid for Cost of Good Sold 4,027,010 3,773,790 2,055,060 1,638,170 1,637,780 1,320,310 1,200,320 1,720,630 1,635,880 1,957,020 3,642,670 4,030,090 28,638,730 Cash paid for operating expense 204,563 146,338 149,804 141,720 141,708 142,372 193,809 141,279 142,693 141,471 147,630 147,516 1,840,903 Cash paid for marketing expense 233,490 3,000 3,000 3,000 99,700 3,000 233,000 3,000 3,000 3,000 99,700 3,000 689,890 Cash paid for administrative expense 109,134 109,134 109,134 109,134 109,134 129,134 109,134 109,134 109,134 109,134 109,134 109,134 1,329,608 Cash paid for interest 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 1,179,936 Cash paid for taxes 750,534 776,781 365,065 267,606 238,616 185,420 78,325 287,635 266,745 343,933 715,689 837,353 5,113,704 Cash outflow from operating activity 5,423,059 4,907,371 2,780,391 2,257,958 2,325,266 1,878,564 1,912,916 2,360,006 2,255,780 2,652,886 4,813,151 5,225,421 38,792,771

Net cash flows from operating activity 1,871,355 1,932,598 971,928 744,521 676,878 552,755 302,868 791,258 742,514 922,618 1,790,048 2,073,933 13,373,272 Cash inflow from investing activity:


Cash outflowCash paid for building - - - - - - - - - - - - - Cash paid for purchase of land - - - - - - - - - - - - - Cash outflow from investing activity - - - - - - - - - - - - -

Net cash flows from investing activity - - - - - - - - - - - - - Cash flows fom financing activity:

Cash inflowCash Loan - - - - - - - - - - - - - Cash inflow from financing activity - - - - - - - - - - - - -

Cash outflowCash paid for long-term note payable 114,015 114,015 114,015 114,015 114,015 114,015 114,015 114,015 114,015 114,015 114,015 114,015 1,368,180Cash outflow from financing activities 114,015 114,015 114,015 114,015 114,015 114,015 114,015 114,015 114,015 114,015 114,015 114,015 1,368,180

Net cash flows from financing activity 114,015- 114,015- 114,015- 114,015- 114,015- 114,015- 114,015- 114,015- 114,015- 114,015- 114,015- 114,015- 1,368,180- Net cash increase or decrease 1,757,340 1,818,583 857,913 630,506 562,863 438,740 188,853 677,243 628,499 808,603 1,676,033 1,959,918 12,005,092 Beginning cash 19,287,144 21,044,484 22,863,066 23,720,979 24,351,485 24,914,348 25,353,088 25,541,941 26,219,183 26,847,682 27,656,285 29,332,319 19,287,144 Ending cash 21,044,484 22,863,066 23,720,979 24,351,485 24,914,348 25,353,088 25,541,941 26,219,183 26,847,682 27,656,285 29,332,319 31,292,236 7,282,051-




166


Cash inflowNet income (Loss) 9,999,090 9,477,535 5,128,395 4,139,630 3,371,960 2,101,045 2,151,405 3,678,015 4,571,505 5,678,590 8,287,580 9,449,070 68,033,820 Depreciation expenses 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 661,012

Cash inflow from operating activity 10,054,174 9,532,619 5,183,479 4,194,714 3,427,044 2,156,129 2,206,489 3,733,099 4,626,589 5,733,674 8,342,664 9,504,154 68,694,832 Cash outflow

Cash paid for Cost of Good Sold 206,973 148,300 150,010 141,712 142,192 142,366 192,511 142,029 141,865 141,109 148,520 150,096 1,847,683 Cash paid for operating expense 206,973 148,300 150,010 141,712 142,192 142,366 192,511 142,029 141,865 141,109 148,520 150,096 1,847,683 Cash paid for marketing expense 233,490 3,000 3,000 3,000 99,700 3,000 233,000 3,000 3,000 3,000 99,700 3,000 689,890 Cash paid for administrative expense 109,134 109,134 109,134 109,134 109,134 129,134 109,134 109,134 109,134 109,134 109,134 109,134 1,329,608 Cash paid for interest 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 696,120 Cash paid for taxes 1,131,147 1,148,627 569,399 440,424 309,270 163,161 91,901 378,920 497,911 645,472 961,186 1,144,289 7,481,705

Cash outflow from operating activity 1,945,727 1,615,371 1,039,563 893,992 860,498 638,037 877,067 833,122 951,785 1,097,834 1,525,070 1,614,625 13,892,689 Net cash flows from operating activity 8,108,448 7,917,248 4,143,916 3,300,722 2,566,546 1,518,092 1,329,423 2,899,977 3,674,805 4,635,840 6,817,595 7,889,530 54,802,142 Cash inflow from investing activity:


Cash outflowCash paid for building - - - - - - - - - - - - - Cash paid for purchase of land - - - - - - - - - - - - -

Cash outflow from investing activity - - - - - - - - - - - - - Net cash flows from investing activity - - - - - - - - - - - - - Cash flows fom financing activity:

Cash inflowCash Loan - - - - - - - - - - - - -

Cash inflow from financing activity - - - - - - - - - - - - - Cash outflow

Cash paid for long-term note payable 67,265 67,265 67,265 67,265 67,265 67,265 67,265 67,265 67,265 67,265 67,265 67,265 807,180Cash outflow from financing activities 67,265 67,265 67,265 67,265 67,265 67,265 67,265 67,265 67,265 67,265 67,265 67,265 807,180

Net cash flows from financing activity 67,265- 67,265- 67,265- 67,265- 67,265- 67,265- 67,265- 67,265- 67,265- 67,265- 67,265- 67,265- 807,180- Net cash increase or decrease 8,041,183 7,849,983 4,076,651 3,233,457 2,499,281 1,450,827 1,262,158 2,832,712 3,607,540 4,568,575 6,750,330 7,822,265 53,994,962 Beginning cash 46,117,936 54,159,119 62,009,102 66,085,754 69,319,211 71,818,492 73,269,319 74,531,477 77,364,189 80,971,729 85,540,304 92,290,634 46,117,936 Ending cash 54,159,119 62,009,102 66,085,754 69,319,211 71,818,492 73,269,319 74,531,477 77,364,189 80,971,729 85,540,304 92,290,634 100,112,899 7,877,026




167

7.3 Balance sheet

Table 7.11 Balance sheet Year 2012

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecAssetsCurrent assets

Cash 4,022,578 4,480,540 3,367,130 2,750,380 2,344,485 1,633,475 1,919,355 2,688,095 3,171,000 3,309,965 3,973,765 4,521,150 Prepaid insurance 937 937 937 937 937 937 937 937 937 937 937 937 Total current assets 4,023,515 4,481,477 3,368,067 2,751,317 2,345,422 1,634,412 1,920,292 2,689,032 3,171,937 3,310,902 3,974,702 4,522,087

Plant assetsOffice equipment 600,400 - - - - - - - - - - - Operating equipment 1,302,530 - - - - - - - - - - - Land 600,000 - - - - - - - - - - - Building 5,433,420 - - - - - - - - - - - Total plant assets 7,936,350 - - - - - - - - - - -

Total Assets 11,959,865 4,481,477 3,368,067 2,751,317 2,345,422 1,634,412 1,920,292 2,689,032 3,171,937 3,310,902 3,974,702 4,522,087

Liability and EquityCurrent Liability

Wage payable 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 Interest payable 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 Income tax payable 1,541,032 462,916 313,787 234,106 170,710 79,999 109,378 226,046 290,134 308,714 385,745 468,128 Total current liabilities 1,936,699 858,583 709,454 629,773 566,377 475,666 505,045 621,713 685,801 704,381 781,412 863,795

Long-term liabilitiesLong-term note payable 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 Principle payable 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 Total long-term liabilities 9,806,744 9,806,744 9,806,744 9,806,744 9,806,744 9,806,744 9,806,744 9,806,744 9,806,744 9,806,744 9,806,744 9,806,744 Total liabilities 11,743,443 10,665,327 10,516,198 10,436,517 10,373,121 10,282,410 10,311,789 10,428,457 10,492,545 10,511,125 10,588,156 10,670,539

Stockholders'equityRetain earning 216,422 6,183,850- 7,148,131- 7,685,200- 8,027,699- 8,647,998- 8,391,497- 7,739,425- 7,320,608- 7,200,223- 6,613,454- 6,148,452- Total stockholders'equity 216,422 6,183,850- 7,148,131- 7,685,200- 8,027,699- 8,647,998- 8,391,497- 7,739,425- 7,320,608- 7,200,223- 6,613,454- 6,148,452-

Total liabilities and equity 11,959,865 4,481,477 3,368,067 2,751,317 2,345,422 1,634,412 1,920,292 2,689,032 3,171,937 3,310,902 3,974,702 4,522,087

Pottery Design companyBalance Sheet


168


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

AssetsCurrent assets


Plant assetsOffice equipment - - - - - - - - - - - - Operating equipment - - - - - - - - - - - - Land - - - - - - - - - - - - Building - - - - - - - - - - - - Total plant assets - - - - - - - - - - - -

Total Assets 11,354,309 12,738,468 13,434,213 13,951,797 14,326,969 14,590,949 14,616,009 15,072,636 15,657,514 16,442,691 17,780,994 19,288,081


Wage payable 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 Interest payable 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 Income tax payable 586,587 605,353 310,318 233,963 172,930 125,275 22,882 207,839 262,803 348,646 585,700 658,036 Total current liabilities 943,602 962,368 667,333 590,978 529,945 482,290 379,897 564,854 619,818 705,661 942,715 1,015,051


Stockholders'equityRetain earning 2,878,213 4,243,607 5,234,387 5,828,325 6,264,531 6,576,164 6,703,619 6,975,289 7,505,202 8,204,536 9,305,785 10,740,536 Total stockholders'equity 2,878,213 4,262,373 4,958,118 5,475,701 5,850,873 6,114,853 6,139,913 6,596,541 7,181,418 7,966,596 9,304,898 10,811,985




169





Total Assets 21,045,421 22,864,003 23,721,916 24,352,422 24,915,285 25,354,025 25,542,878 26,220,120 26,848,619 27,657,222 29,333,256 31,293,173


Wage payable 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 Interest payable 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 Income tax payable 750,534 776,781 365,065 267,606 238,616 185,420 78,325 287,635 266,745 343,933 715,689 837,353 Total current liabilities 1,077,862 1,104,109 692,393 594,934 565,944 512,748 405,653 614,963 594,073 671,261 1,043,017 1,164,681






170





Total Assets 33,360,114 35,499,821 36,954,888 37,971,941 38,586,672 38,964,878 39,116,650 39,751,002 40,688,273 41,971,294 43,964,340 46,118,873


Wage payable 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 Interest payable 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 Income tax payable 876,148 907,333 613,916 426,196 253,772 152,404 55,362 262,181 392,004 540,182 844,479 913,687 Total current liabilities 1,180,673 1,211,858 918,441 730,721 558,297 456,929 359,887 566,706 696,529 844,707 1,149,004 1,218,212






171





Total Assets 54,160,056 62,010,039 66,086,691 69,320,148 71,819,429 73,270,256 74,532,414 77,365,126 80,972,666 85,541,241 92,291,571 100,113,836


Wage payable 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 Interest payable 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 Income tax payable 1,131,147 1,148,627 569,399 440,424 309,270 163,161 91,901 378,920 497,911 645,472 961,186 1,144,289 Total current liabilities 1,418,157 1,435,637 856,409 727,434 596,280 450,171 378,911 665,930 784,921 932,482 1,248,196 1,431,299






172

7.4 Conclusion

In term of financial analysis, Pottery Design has to provide the information of finan-

cial statement analysis for the investor to make decision. We prepare financial analysis for



to know us. The investor will seek the capability, stability, profitability, solvency, and liquidi-

ty of company in financial statement financial statement consists of income statement, cash

flow and balance sheet. For income statement, it shows the company profit or loss that comes

from the revenue deduct by expense of operating, administration, marketing, pre-investment

and the cost of depreciation. We do income statement for report a company's earnings to in-

vestors over a specific period of time. Investors will make decisions based on the reported

earnings from the income statement. It provides important insights into how effectively man-

agement is company can control their expenses, the amount of interest income and expense,

and the taxes paid. From Pottery Design income statement shows that we only get the loss on

first month of beginning year because it takes cost too much about expense. For other months

we can get net income. Cash flow let investors to understand how a company's operations are

running, where its money is coming from, and how it spends. It is determined into three areas

which are operating activities, investing activities and financial activities. The investor can

see the return over rate of company from cash flow. Almost of liquidation in Pottery Design

is positive, this shows that we quite have cash on hand. For balance sheet, it is a snapshot of

the company’s accounts or assets, liabilities and shareholders’ equity. The investor can get

the idea of the company’s financial position along what the company owns and owes. Total

asset and total liability & equity of Pottery Design are equal. This means our company has

enough liquidation. We are a newly company which is well in financial term. Therefore, we

are a consistent to make profit and can deal with any financial risk that will occur with the

company.

173

Chapter 8

Risk Management

174

Risk Management Risk management is a process for identifying, assessing, and prioritizing risks of dif-

ferent kinds. It will create eliminate the impact of negative events and we have to plan to re-

duce the negative impacts of our company.38 It may also effect to our income. Our company

“Pottery Design’ may also have a lot of risk in near future. Many people love to decorate

their home, shop, company, hotel and many kinds of businesses in these days. That is a good

point to run for our business though we will have a lot of general problems to solve and we

have to have solution before we start our business, especially for risk manager to create and

solve for it in a company. However, there are many types of risk can occur in our company.

We have two types of will mainly effect on our business. They are external risk and internal

risk because risks will not come not only from external but also from internal. Therefore, we

need to prepare for it.

8.1 External risks

External risk management is about the probability of loss. Strictly, it is about the de-

gree of affordability of the worst possible loss. A careful external risk management plan en-

sures that each individual bet and each collection of correlated bets risks less than half of our

available bankroll. The external risk management process should be the same for all bets. The

primary question you should always be asking yourself is how much you can lose and how

much you can afford to lose. The external risks that we may face are as follow:

8.1.1. Competitor Risk

More and more competitors are come to market to challenge with other competitors.

Year by year many entrepreneurs are competed with other company. Chiang Rai is a province

that a lot of natural resources that we can produce pottery easily than other province not like

in Bangkok. Therefore, many people who have rich money or wealth want to come to Chiang

Rai and build pottery business as a second business. Some new entrepreneurs do pottery

business as an art. People love to decorate with art and design in their home in these days.

One more thing is pottery or art decorations are valuable and high seller in 2012. Though, we

have a lot of competitors in market we have to prepare for it for example to make customer

trust, to make customer believe and do what we said in menu and make customer happy by

using our things and products.

38 http://www.whatisriskmanagement.net/

http://www.whatisriskmanagement.net/

175

8.1.2. Customer Demand Risk

Customer behavior is uncontrollable things which always happened to the company.

Customer keeps changing behavior of them. There is nobody can control their mind chang-

ing. The solution of us is to need to know what they want. We need to keep in touch with cus-

tomer. We need to make our product with more fashionable than our competitors. We will do

what we said and what the customer order. We show our responsibility and wiliness.

8.1.3. Political Risk

The election of prime minister of Thailand is keep choosing in the time is come.

People keep busy with it and political unstable is effect to the country. It is not only to the

people but also to the country income, economic and social effect. The encouragement of in-

ternational relations is higher than before. Thailand’s foreign policy with ASEAN is prepared

strongly to be one of the best successful countries within ASEAN in 2015. After ASEAN

ECONOMIC COMMUNITY (AEC) is open not only Thailand but also other countries can

get more opportunities in job. Thailand has the strong relationship with United States. That is

a good point of view from political risk such as the income of Thailand workers are lower

than before so we need to be more effective to get job, to get foreign visitors, to get more for-

eign money. More and more people are jobless if we compare with 2001. There are a lot of

close work with Europe however currently hold of full diplomatic relations with the EU.

High rate of employee can effect to the people. Thailand in these days effect to the workers

and employee and also to the company by because of the incontrollable things for example

flooded in Bangkok. This factor is not only effect to Chiang Rai but indirectly effect to the

Chiang Rai employment. These are also the solutions to solve the problem in a country.

Thailand people effect because of all of the reasons with income, economy and so on. Even

though, this kind of problem is happen in Thailand, we cannot control by ourselves, we will

set our product with low price and to make more beautiful, to make more attractions and to

make more promote in marketing are the reasons that we can solve the external problem or

unexpected problems to the company. Even the political risk is not really directly effect to the

company but indirectly effect to us.

176

8.1.4. Economic Risk39

The cost of fuel is high. The cost of rice is high. Everything of the cost of living in

Thailand is high if we compare with 2006. Economic of the people is not really good. People

are rare to buy and make decorate for their building with pottery unless they have to do or

their decoration is still good as before. Customer will think they can decorate with other

things such as painting by not using pottery to decorate in their building, business, shop and

hotel. It may be the economics of people, can also be the reason of the price of pottery is high

than other decorating things. So, what we have to do is we need to be more effective and sell

with low price as much as we can. The cost of ceramic is also high that affect and problems.

The cost of ceramic increase may affect the confidence of consumers.

Despite disruptions to the supply of goods and services as a result of the floods, con-

sumer prices fell by 0.5% month on month in December. On a year by year basis, the rate of

inflation slowed from 4.2% in November to 3.5%. The Economist Intelligence Unit expects

the rate of inflation to slow to 2.5% on average this year, from 3.8% in 2011. [From market

research report of REPORT BUYER] After lowering its main interest rate, the one-day re-

purchase rate, for the first time in more than two years, the Bank of Thailand will lower the

cost of borrowing again in early 2012 to support the flood-hit economy. As we know that the

economics of Thailand is lowering. The annually sale of our company will also low. The

problem of economic effect is directly effect to the every business. We cannot do anything

about this. What we can do is we need to be prepared well about every uncontrollable effect.

Anyhow, we do not need to afraid too much for it now is 2012 and 2015 is going to reach

soon. We will have opportunities to do economic with other ASEAN countries. At that time,

we can express our marketing, we can send to other neighbor countries such as China,

Myanmar, Lao, Cambodia and other neighbor countries with no tax and we can get more

profit.

8.1.5. Social Risk

As we are doing business in here Chiang Rai, the government supports the local

people a lot such as hill tribe people, A Khar people and any other nationality around here.

Social risk is not really cause to us because our company is pottery but we should to involve

39http://www.reportbuyer.com/countries/asia_pacific/thailand/country_risk_service_thailand_january_2012_updater.html

177

with the CSR (corporate social responsibility) community. It is to make people to get high

living standard and to get good image of our company within these area.

8.1.6. Technology Risk

Technology is one of the most important to use in an organization. The workers are

using machine to produce the products, office staff are using technology to make more attrac-

tive design and office work with high technology. To produce the good one or perfect one we

need to use high technology things and upgrade our machine. The office staffs have to have

guideline to set and new knowledge to let worker know how to use after upgrade our machine

or technology things.

• Internet

Now a days, everybody use internet not only a little child or but also the gray people.

We use internet to promote our products by using website, facebook, twitter, etc. By using

internet is a part of successful to promote new thing or old thing. However, internet connec-

tion is not really good in sometime even we pay money monthly. The connection is bad

which depend on the company. Sometime we pay monthly but we cannot use as we want.

The demand of connection is high than supply usually. So, if we want to get a good connec-

tion we have to pay more and to get a better one. That is the only way to solve the problem.

• Machine

The new technology of the pottery machine is more and more come out to the market.

We need to upgrade it as much as we can. Sometime the old machines are unsafe for the

workers. It can give danger to our workers. We need to prepare for it. If worker working un-

der the situation of unsafe, if the accident happened worker can complain and the police will

charge us as we are not a good company, working in our company is unsafe or etc. Computer

and other office things also is the machine that is related with technology.

• Information Technology

Management information technology is import in our business. We have to use it as

we are in this era but MIT( management information technology) effective cause during op-

eration. So, we need to make decision in operations management and we need to corporate

with survival. This is the way that we can solve our main problem in information technology.

178

8.1.7. Environment Risk

• Flood40

For our business are doing business in Mea Jan, Chiang Rai which located

on the fault. Flooding is a natural process and can happen at any time in a wide variety of lo-

cations. It constitutes a temporary covering of land by water and presents a risk only when

people, their property and/or environmental assets are present in the area which floods. Un-

derstanding flood risk is a key step in managing the impacts of flooding. Flood risk is a com-

bination of the likelihood of flooding and the potential consequences arising. These Guide-

lines recommend a staged approach to flood risk assessment that covers both the likelihood of

flooding and the potential consequences. Therefore, our company also learning basics of

knowledge for protect our company from lose of factory and office when we meet flood, we

must observe continuously and how we can avoid effectively applied to lessening the adverse

effects of the flood on our company.

• Earthquake41

Hundreds of active earthquake faults have been identified over the past few decades

that could generate earthquakes affecting major population centers in the city. The event

started almost a hundred years of research and development towards building safer communi-

ties. Today, earthquake safety is considered in all aspects of planning, building, operating

business, and in developing a safe and sustainable living environment. So, our company also

learning the basics of knowledge management and how we can avoid effectively applied to

lessening the adverse effects of the earthquake on our company.

8.2 Internal risk

Internal risk is a kind of risk which happens in a company. It can happen many condi-

tions for example employee risk which accidents during working or may be employee unsta-

ble. Most of internal risks can control however some risk cannot control as we think. Follow-

ing are the internal risk which can happen to our company:

8.2.1. Human resources risk

The consumer may have some mistakes during their works. For example, they are lost

of effect efficiency, expert and knowledge due to getting a few training from company. In

other hand, for recruitment, the company cannot know the real behavior or performance in

who is good or bad in working. This is the hard work for HR staff to duel with this issue. If 40http://www.flooding.ie/en/media/The%20Planning%20System%20and%20Flood%20Risk%20Management.PDF 41 www.kenttrustweb.org

179

we have problem with driver such as driver did not come to work or driver is drunk. This rea-

son affect to late delivery. This also change company’s image to be bad way. More problems

are release of personal information, reputation in the community, and abuse. Abuse can be

either one-time or ongoing such as physical, emotional, psychosocial, and sexual and finan-

cial. In addition, employee may often take leaves. It makes ability in working of company

force slower. From previous problems, we consider to train our employees at the first time of

their coming for making higher performance and going to the same standard together. More-

over, we have to protect our company by law. We have to have specific law for the employee

it have to let them know during they come to work at the first time. The legal of the company

which is the employee can do or cannot do.

Employee Health risk

• Pottery glazes to be used with foodstuffs causing harm to health of staff and visitors.

The ingestion of toxic will be harmful substances. Solutions: Do not use lead based

glazes. Ensure glazes or color do not release metallic compounds when they come

into contact with acids contained in food stuffs. Ensure glazes are used in accordance

with the manufacturer’s instructions.

• One more thing is employee manual handling which is muscular skeletal injuries. If

workers work long time, they may have problems with skeletal and also during

working time because of materials.

Solutions: Staff carefully supervised and correct procedures for loading and un-

loading strictly observed. Worker should have appropriate footwear worn and mechanical

lifting aids available such as trolleys. Heavy items stored at waist level.

8.2.2. Marketing risk

Marketing department or staff in office is one of the departments that have to commu-

nicate with all of our customers. They have to know what are customer needs and wants, ask-

ing customers such as questionnaires, promoting our products with many ways and any kind

of way to do with marketing to get our sale target. The majority of managers understand how

risk management applies to their business. They understand what a disaster is and its poten-

tial for causing loss of revenue as well as public trust. The major challenge to marketing risk

management is the feeling that a disaster. Marketing Risk management professionals need to

keep the horror, so to speak, present.

180

8.2.3. Information risk

The information of pottery industry is quite hard to find especially for statistics. Ac-

tually, there are many organizations that supports the information of pottery business, but al-

most of them offer the information that we don’t want. It shows only general information but

not specific information such as amount of market share within industry. Therefore, we need

to find the information from many sources to analyze by ourselves. This can be wrong for our

understanding. We will know in the different way from the fact. Moreover, we are newly

company, so we have a little experience and information about market, consumer or other

factors that relate to us. To lose of needed information means losing a tool to support compa-

ny to run business for the success. Finally, we realize that we can solve these problems by

doing research, questionnaire, observation, etc in the market. We think that doing this way

can support and make us get more and clearly information.

8.2.4. Operation risk

We take long time to produce pottery because it is handmade process with a few ex-

pert potters. Hence, the amount of pottery that produces in each time quit small. In case, con-

sumer hurries us to deriver pottery with large amount for them, it take long time to deriver

them because of long time operation. For the helpers of the potter; they are not expert, so they

cannot mange the most effective for materials. They don’t know how much material will be

suitable to use. This makes longer in operation because the expert potter have to reproduce

the pottery from the mistake of helper. However, we have to face with operation risk, we

need to develop our system and strategies clearly and announce to all workers. So, they will

follow the company’s system and better know how to perform their tasks in suitable way.

8.2.5. Risk of cost

The cost always change fluctuate all the time. Sometimes, we cannot follow imme-

diately. As the wage of employee, they request to give more wage when company face with

good situation in the market. In other hand, if we are in bad economy, it is hard for us to de-

crease their wage due to we increase the wage at the first time when having good situation.

For material and equipment cost; it also depends on economic situation, according to we

don’t have enough information about some equipment, we may buy the wrong equipments

and waste much money from our miss understanding. Also the cost problem is the reason

from the mistake of accountants. They have some mistake in calculating so; it damages the

181

system of company’s cost. Company will pay the wrong amount of money to supplier and get

decreased profit. In consequence, we have to concern about the situation that relate to the

company’s cost all the time. We need to check the price of raw material and more knowing

about what we purchase. This will prevent us from any cost mistakes.

8.2.6. Fire Risk

Working area should be non-smoking area and property damage. If fire all of the staff

danger and our own stuff will be gone so please make sure to check staff. The solution is to

check fire conducted and reviewed annually. Rubbish not allowed accumulating located in

separate room and area. Flammable materials are not to be stored in the room or working

place.

8.2.7. Punctuality Risk

Sometime we can have problems with our machine, car and employee. If we have

problem with our machine such as machine is broke or accident during working. If we have

problem with our cars such as car is broken, car accident or cannot arrived to the customer

punctuality.. Therefore, we need to be careful for machine, accidents, punishment to driver if

he did something wrong or legally attack to drivers and employee.

8.2.8. Budget risk

There are a few capital of company while we want to start doing business. Thus,

company needs the help from financial institutions but we concern in which these institutions

will give their supports for us or not. If they don’t help us, our plans are difficult to do. Be-

cause we need to use much money to do business at the first, we are not sure about this. Also

they may not confident us that can we pay back the large money for them or not. Therefore,

we have to present the clear information to get the confidence from them and they will give

their supports for us to run business.

182

8.2.9. Financial risk

Financial risk causes the problem to our company. Therefore, we need to manage with the

unexpected situation as follow:

1 Decreasing sale

• If total sale of company decrease5%, so our sale revenue will decrease as fol-

low:

Year 2012 Sale revenue is 38,893,584 Baht





• If sale revenue decreases 5%, it will affect net income of company as follow:

Year 2012 Net income is 17,243 Baht

Year 2013 Net income is 7,187,350.55 Baht




183

Table 8.1 Total sale of company decrease 5% Year 2012


Sales Year 1 TotalProduct Price Units Sales Units Sales Units Sales Units Sales Units Sales Units Sales Units Sales Units Sales Units Sales Units Sales Units Sales Units Sales

Plate 450 450 202,500 423 190,350 340 153,000 267 120,150 230 103,500 165 74,250 199 89,550 256 115,200 305 137,250 312 140,400 384 172,800 445 200,250 1,699,200Bowl 650 450 292,500 431 280,150 329 213,850 261 169,650 229 148,850 156 101,400 187 121,550 251 163,150 317 206,050 324 210,600 370 240,500 441 286,650 2,434,900Spoon/Fork 125 468 58,500 428 53,500 335 41,875 272 34,000 238 29,750 163 20,375 196 24,500 262 32,750 308 38,500 315 39,375 387 48,375 436 54,500 476,000Cup 360 469 168,840 439 158,040 327 117,720 263 94,680 227 81,720 153 55,080 185 66,600 253 91,080 311 111,960 326 117,360 390 140,400 428 154,080 1,357,560Tea pot 1,040 475 494,000 425 442,000 338 351,520 274 284,960 236 245,440 164 170,560 194 201,760 264 274,560 305 317,200 317 329,680 387 402,480 449 466,960 3,981,120Vase 4,680 463 2,166,840 440 2,059,200 325 1,521,000 265 1,240,200 225 1,053,000 155 725,400 183 856,440 267 1,249,560 314 1,469,520 328 1,535,040 394 1,843,920 443 2,073,240 17,793,360Lamp 2,520 462 1,164,240 443 1,116,360 331 834,120 276 695,520 234 589,680 167 420,840 192 483,840 258 650,160 302 761,040 319 803,880 381 960,120 436 1,098,720 9,578,520Spa set 415 450 186,750 436 180,940 323 134,045 268 111,220 223 92,545 158 65,570 181 75,115 269 111,635 312 129,480 322 133,630 398 165,170 450 186,750 1,572,850Total 4,734,170 4,480,540 3,367,130 2,750,380 2,344,485 1,633,475 1,919,355 2,688,095 3,171,000 3,309,965 3,973,765 4,521,150 38,893,510

Jul Aug Sep Oct JunMayAprMarFebJan Nov Dec


Plate 450 505 227,250 370 166,500 260 117,000 239 107,550 210 94,500 185 83,250 224 100,800 190 85,500 245 110,250 268 120,600 370 166,500 520 234,000 1,613,700Bowl 650 505 328,250 370 240,500 260 169,000 239 155,350 210 136,500 190 123,500 229 148,850 192 124,800 245 159,250 264 171,600 370 240,500 520 338,000 2,336,100Spoon/Fork 125 500 62,500 375 46,875 262 32,750 241 30,125 211 26,375 188 23,500 227 28,375 195 24,375 247 30,875 261 32,625 368 46,000 523 65,375 449,750Cup 360 506 182,160 374 134,640 261 93,960 238 85,680 211 75,960 184 66,240 222 79,920 192 69,120 248 89,280 260 93,600 367 132,120 524 188,640 1,291,320Tea pot 1,040 512 532,480 376 391,040 259 269,360 232 241,280 218 226,720 186 193,440 226 235,040 191 198,640 240 249,600 265 275,600 365 379,600 529 550,160 3,742,960Vase 4,680 504 2,358,720 372 1,740,960 262 1,226,160 240 1,123,200 215 1,006,200 200 936,000 225 1,053,000 192 898,560 244 1,141,920 266 1,244,880 370 1,731,600 525 2,457,000 16,918,200Lamp 2,520 501 1,262,520 375 945,000 265 667,800 236 594,720 219 551,880 195 491,400 229 577,080 192 483,840 243 612,360 264 665,280 371 934,920 521 1,312,920 9,099,720Spa set 415 510 211,650 373 154,795 263 109,145 242 100,430 216 89,640 190 78,850 228 94,620 189 78,435 241 100,015 267 110,805 374 155,210 526 218,290 1,501,885Total 5,165,530 3,820,310 2,685,175 2,438,335 2,207,775 1,996,180 2,317,685 1,963,270 2,493,550 2,714,990 3,786,450 5,364,385 36,953,635

Jul Aug Sep Oct Nov DecJan Feb Mar Apr May Jun

184




Plate 450 450 202,500 370 166,500 247 111,150 210 94,500 190 85,500 183 82,350 247 111,150 198 89,100 235 105,750 260 117,000 370 166,500 475 213,750 1,545,750Bowl 650 450 292,500 370 240,500 250 162,500 210 136,500 190 123,500 183 118,950 247 160,550 188 122,200 235 152,750 260 169,000 370 240,500 477 310,050 2,229,500Spoon/Fork 125 442 55,250 372 46,500 245 30,625 213 26,625 196 24,500 185 23,125 250 31,250 190 23,750 231 28,875 254 31,750 374 46,750 480 60,000 429,000Cup 360 447 160,920 369 132,840 243 87,480 215 77,400 195 70,200 188 67,680 246 88,560 195 70,200 230 82,800 258 92,880 374 134,640 481 173,160 1,238,760Tea pot 1,040 440 457,600 365 379,600 241 250,640 216 224,640 197 204,880 184 191,360 250 260,000 187 194,480 231 240,240 260 270,400 370 384,800 479 498,160 3,556,800Vase 4,680 444 2,077,920 368 1,722,240 244 1,141,920 214 1,001,520 199 931,320 182 851,760 255 1,193,400 186 870,480 235 1,099,800 260 1,216,800 368 1,722,240 470 2,199,600 16,029,000Lamp 2,520 441 1,111,320 371 934,920 248 624,960 212 534,240 198 498,960 180 453,600 254 640,080 187 471,240 233 587,160 259 652,680 378 952,560 472 1,189,440 8,651,160Spa set 415 446 185,090 369 153,135 248 102,920 213 88,395 194 80,510 180 74,700 244 101,260 192 79,680 239 99,185 256 106,240 375 155,625 480 199,200 1,425,940Total 4,543,100 3,776,235 2,512,195 2,183,820 2,019,370 1,863,525 2,586,250 1,921,130 2,396,560 2,656,750 3,803,615 4,843,360 35,105,910



Plate 450 502 225,900 380 171,000 205 92,250 186 83,700 165 74,250 152 68,400 205 92,250 170 76,500 191 85,950 215 96,750 370 166,500 499 224,550 1,458,000Bowl 650 505 328,250 380 247,000 205 133,250 186 120,900 165 107,250 152 98,800 200 130,000 177 115,050 191 124,150 215 139,750 370 240,500 498 323,700 2,108,600Spoon/Fork 125 503 62,875 377 47,125 208 26,000 190 23,750 167 20,875 155 19,375 208 26,000 169 21,125 190 23,750 219 27,375 371 46,375 499 62,375 407,000Cup 360 504 181,440 375 135,000 211 75,960 191 68,760 170 61,200 155 55,800 203 73,080 176 63,360 194 69,840 214 77,040 375 135,000 497 178,920 1,175,400Tea pot 1,040 501 521,040 384 399,360 206 214,240 192 199,680 169 175,760 154 160,160 202 210,080 173 179,920 189 196,560 217 225,680 374 388,960 498 517,920 3,389,360Vase 4,680 500 2,340,000 382 1,787,760 212 992,160 189 884,520 168 786,240 153 716,040 207 968,760 170 795,600 190 889,200 213 996,840 374 1,750,320 495 2,316,600 15,224,040Lamp 2,520 506 1,275,120 385 970,200 207 521,640 193 486,360 172 433,440 150 378,000 200 504,000 175 441,000 192 483,840 215 541,800 376 947,520 496 1,249,920 8,232,840Spa set 415 504 209,160 383 158,945 209 86,735 194 80,510 171 70,965 152 63,080 204 84,660 172 71,380 190 78,850 214 88,810 373 154,795 500 207,500 1,355,390Total 5,143,785 3,916,390 2,142,235 1,948,180 1,729,980 1,559,655 2,088,830 1,763,935 1,952,140 2,194,045 3,829,970 5,081,485 33,350,630


185



Plate 450 502 225,900 345 155,250 202 90,900 189 85,050 160 72,000 140 63,000 195 87,750 154 69,300 172 77,400 198 89,100 335 150,750 490 220,500 1,386,900Bowl 650 500 325,000 345 224,250 200 130,000 188 122,200 165 107,250 140 91,000 195 126,750 150 97,500 172 111,800 200 130,000 335 217,750 490 318,500 2,002,000Spoon/Fork 125 504 63,000 349 43,625 205 25,625 180 22,500 166 20,750 141 17,625 192 24,000 149 18,625 170 21,250 197 24,625 337 42,125 495 61,875 385,625Cup 360 505 181,800 348 125,280 207 74,520 179 64,440 158 56,880 143 51,480 193 69,480 150 54,000 175 63,000 199 71,640 339 122,040 493 177,480 1,112,040Tea pot 1,040 505 525,200 349 362,960 206 214,240 186 193,440 157 163,280 144 149,760 191 198,640 151 157,040 173 179,920 200 208,000 341 354,640 492 511,680 3,218,800Vase 4,680 503 2,354,040 349 1,633,320 204 954,720 184 861,120 160 748,800 141 659,880 197 921,960 153 716,040 171 800,280 201 940,680 337 1,577,160 497 2,325,960 14,493,960Lamp 2,520 503 1,267,560 347 874,440 203 511,560 183 461,160 160 403,200 140 352,800 196 493,920 154 388,080 176 443,520 201 506,520 337 849,240 496 1,249,920 7,801,920Spa set 415 501 207,915 349 144,835 200 83,000 182 75,530 156 64,740 145 60,175 194 80,510 152 63,080 179 74,285 198 82,170 335 139,025 498 206,670 1,281,935Total 5,150,415 3,563,960 2,084,565 1,885,440 1,636,900 1,445,720 2,003,010 1,563,665 1,771,455 2,052,735 3,452,730 5,072,585 31,683,180


186

Table 8.6 Income statement of Sale decrease 5% Year 2012







Net Income(Loss) 6,777,806- 1,050,971 703,004 517,079 369,156 157,499 226,047 498,275 647,814 691,167 870,905 1,063,133 17,243



187


Sales 5,165,530.00 3,820,310.00 2,685,175.00 2,438,335.00 2,207,775.00 1,996,180.00 2,317,685.00 1,963,270.00 2,493,550.00 2,714,990.00 3,786,450.00 5,364,385.00 36,953,635.00 Cost of goods sold 2,875,360.00 2,126,520.00 1,494,650.00 1,357,270.00 1,228,890.00 1,111,090.00 1,290,140.00 1,092,840.00 1,388,020.00 1,511,260.00 2,107,680.00 2,986,010.00 20,569,730.00

Gross profit 2,290,170.00 1,693,790.00 1,190,525.00 1,081,065.00 978,885.00 885,090.00 1,027,545.00 870,430.00 1,105,530.00 1,203,730.00 1,678,770.00 2,378,375.00 16,383,905.00 Expense

Operating expenses 206,423.00 147,350.00 149,674.00 142,686.00 141,970.00 141,062.00 189,535.00 141,491.00 142,151.00 141,449.00 147,390.00 148,754.00 1,839,935.00 Administration expenses 109,134.00 109,134.00 109,134.00 109,134.00 109,134.00 129,134.00 109,134.00 109,134.00 109,134.00 109,134.00 109,134.00 109,134.00 1,329,608.00 Marketing expense 233,490.00 3,000.00 3,000.00 3,000.00 99,700.00 3,000.00 233,000.00 3,000.00 3,000.00 3,000.00 99,700.00 3,000.00 689,890.00 Depreciation 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 720,648.36 Total expenses 609,101.03 319,538.03 321,862.03 314,874.03 410,858.03 333,250.03 591,723.03 313,679.03 314,339.03 313,637.03 416,278.03 320,942.03 4,580,081.36

Income before interate and taxes 1,681,068.97 1,374,251.97 868,662.97 766,190.97 568,026.97 551,839.97 435,821.97 556,750.97 791,190.97 890,092.97 1,262,491.97 2,057,432.97 11,803,823.64 Interest expense 128,015.00 128,015.00 128,015.00 128,015.00 128,015.00 128,015.00 128,015.00 128,015.00 128,015.00 128,015.00 128,015.00 128,015.00 1,536,180.00

Income before income taxes 1,553,053.97 1,246,236.97 740,647.97 638,175.97 440,011.97 423,824.97 307,806.97 428,735.97 663,175.97 762,077.97 1,134,476.97 1,929,417.97 10,267,643.64 Income taxes expenses 465,916.19 373,871.09 222,194.39 191,452.79 132,003.59 127,147.49 92,342.09 128,620.79 198,952.79 228,623.39 340,343.09 578,825.39 3,080,293.09

Net Income 1,087,137.78 872,365.88 518,453.58 446,723.18 308,008.38 296,677.48 215,464.88 300,115.18 464,223.18 533,454.58 794,133.88 1,350,592.58 7,187,350.55




188


Sales 4,543,100.00 3,776,235.00 2,512,195.00 2,183,820.00 2,019,370.00 1,863,525.00 2,586,250.00 1,921,130.00 2,396,560.00 2,656,750.00 3,803,615.00 4,843,360.00 35,105,910.00 Cost of goods sold 2,528,920.00 2,102,010.00 1,398,420.00 1,215,580.00 1,124,000.00 1,037,330.00 1,439,560.00 1,069,380.00 1,334,020.00 1,478,860.00 2,117,230.00 2,696,060.00 19,541,370.00

Gross profit 2,014,180.00 1,674,225.00 1,113,775.00 968,240.00 895,370.00 826,195.00 1,146,690.00 851,750.00 1,062,540.00 1,177,890.00 1,686,385.00 2,147,300.00 15,564,540.00 Expense


Income before interate and taxes 1,406,938.97 1,355,698.97 791,782.97 654,331.97 484,773.97 491,634.97 550,692.97 538,282.97 747,658.97 864,230.97 1,269,866.97 1,827,595.97 10,983,490.64 Interest expense 98,328.00 98,328.00 98,328.00 98,328.00 98,328.00 98,328.00 98,328.00 98,328.00 98,328.00 98,328.00 98,328.00 98,328.00 1,179,936.00


Net Income 916,027.68 880,159.68 485,418.48 389,202.78 270,512.18 275,314.88 316,655.48 307,968.48 454,531.68 536,132.08 820,077.28 1,210,487.58 6,862,488.25




189


Sales 5,143,785.00 3,916,390.00 2,142,235.00 1,948,180.00 1,729,980.00 1,559,655.00 2,088,830.00 1,763,935.00 1,952,140.00 2,194,045.00 3,829,970.00 5,081,485.00 33,350,630.00 Cost of goods sold 2,863,260.00 2,180,000.00 1,192,410.00 1,084,400.00 962,940.00 868,170.00 1,162,690.00 981,920.00 1,086,640.00 1,221,310.00 2,131,880.00 2,828,580.00 18,564,200.00

Gross profit 2,280,525.00 1,736,390.00 949,825.00 863,780.00 767,040.00 691,485.00 926,140.00 782,015.00 865,500.00 972,735.00 1,698,090.00 2,252,905.00 14,786,430.00 Expense


Income before interate and taxes 1,676,953.70 1,422,689.70 632,412.70 554,247.70 361,477.70 363,374.70 334,598.70 472,637.70 556,358.70 663,267.70 1,281,799.70 1,935,794.70 10,255,613.40 Interest expense 75,525.00 75,525.00 75,525.00 75,525.00 75,525.00 75,525.00 75,525.00 75,525.00 75,525.00 75,525.00 75,525.00 75,525.00 906,300.00


Net Income 1,121,000.09 943,015.29 389,821.39 335,105.89 200,166.89 201,494.79 181,351.59 277,978.89 336,583.59 411,419.89 844,392.29 1,302,188.79 6,544,519.38




190


Sales 5,150,415.00 3,563,960.00 2,084,565.00 1,885,440.00 1,636,900.00 1,445,720.00 2,003,010.00 1,563,665.00 1,771,455.00 2,052,735.00 3,452,730.00 5,072,585.00 31,683,180.00 Cost of goods sold 2,866,910.00 1,983,820.00 1,160,330.00 1,049,550.00 911,210.00 804,740.00 1,114,940.00 870,370.00 986,050.00 1,142,630.00 1,921,920.00 2,823,550.00 17,636,020.00

Gross profit 2,283,505.00 1,580,140.00 924,235.00 835,890.00 725,690.00 640,980.00 888,070.00 693,295.00 785,405.00 910,105.00 1,530,810.00 2,249,035.00 14,047,160.00 Expense


Income before interate and taxes 1,678,823.70 1,264,621.70 607,006.70 526,959.70 319,579.70 311,395.70 298,340.70 384,047.70 476,321.70 601,777.70 1,118,371.70 1,931,720.70 9,518,967.40 Interest expense 58,010.00 58,010.00 58,010.00 58,010.00 58,010.00 58,010.00 58,010.00 58,010.00 58,010.00 58,010.00 58,010.00 58,010.00 696,120.00


Net Income 1,134,569.59 844,628.19 384,297.69 328,264.79 183,098.79 177,369.99 168,231.49 228,226.39 292,818.19 380,637.39 742,253.19 1,311,597.49 6,175,993.18




191

• If total sale of company decrease 10%, so our sale revenue will decrease as follow:






• If sale revenue decreases10%, it will affect net income of company as follow:


Year 2013 Net income is 6,583,702 Baht




192




Plate 450 425 191,250 370 166,500 260 117,000 239 107,550 210 94,500 185 83,250 224 100,800 190 85,500 245 110,250 268 120,600 363 163,350 420 189,000 1,529,550Bowl 650 425 276,250 370 240,500 260 169,000 239 155,350 210 136,500 190 123,500 229 148,850 192 124,800 245 159,250 264 171,600 365 237,250 420 273,000 2,215,850Spoon/Fork 125 420 52,500 375 46,875 262 32,750 241 30,125 211 26,375 188 23,500 227 28,375 195 24,375 247 30,875 262 32,750 361 45,125 423 52,875 426,500Cup 360 426 153,360 374 134,640 261 93,960 238 85,680 211 75,960 184 66,240 222 79,920 192 69,120 248 89,280 260 93,600 362 130,320 424 152,640 1,224,720Tea pot 1,040 433 450,320 376 391,040 259 269,360 232 241,280 218 226,720 186 193,440 226 235,040 191 198,640 240 249,600 265 275,600 359 373,360 429 446,160 3,550,560Vase 4,680 424 1,984,320 372 1,740,960 262 1,226,160 240 1,123,200 215 1,006,200 200 936,000 225 1,053,000 192 898,560 244 1,141,920 266 1,244,880 360 1,684,800 423 1,979,640 16,019,640Lamp 2,520 423 1,065,960 375 945,000 265 667,800 236 594,720 219 551,880 195 491,400 229 577,080 192 483,840 243 612,360 264 665,280 360 907,200 421 1,060,920 8,623,440Spa set 415 420 174,300 373 154,795 263 109,145 242 100,430 216 89,640 190 78,850 228 94,620 189 78,435 241 100,015 267 110,805 364 151,060 425 176,375 1,418,470Total 4,348,260 3,820,310 2,685,175 2,438,335 2,207,775 1,996,180 2,317,685 1,963,270 2,493,550 2,715,115 3,692,465 4,330,610 35,008,730





193




Plate 450 350 157,500 288 129,600 247 111,150 210 94,500 190 85,500 183 82,350 247 111,150 198 89,100 235 105,750 260 117,000 285 128,250 385 173,250 1,385,100Bowl 650 350 227,500 280 182,000 250 162,500 210 136,500 190 123,500 183 118,950 247 160,550 188 122,200 235 152,750 260 169,000 285 185,250 387 251,550 1,992,250Spoon/Fork 125 342 42,750 282 35,250 245 30,625 213 26,625 196 24,500 185 23,125 250 31,250 190 23,750 231 28,875 254 31,750 288 36,000 395 49,375 383,875Cup 360 347 124,920 285 102,600 243 87,480 215 77,400 195 70,200 188 67,680 246 88,560 195 70,200 230 82,800 258 92,880 280 100,800 392 141,120 1,106,640Tea pot 1,040 340 353,600 281 292,240 241 250,640 216 224,640 197 204,880 184 191,360 250 260,000 187 194,480 231 240,240 260 270,400 282 293,280 388 403,520 3,179,280Vase 4,680 344 1,609,920 284 1,329,120 244 1,141,920 214 1,001,520 199 931,320 182 851,760 255 1,193,400 186 870,480 235 1,099,800 260 1,216,800 284 1,329,120 396 1,853,280 14,428,440Lamp 2,520 341 859,320 287 723,240 248 624,960 212 534,240 198 498,960 180 453,600 254 640,080 187 471,240 233 587,160 259 652,680 286 720,720 392 987,840 7,754,040Spa set 415 345 143,175 286 118,690 248 102,920 213 88,395 194 80,510 180 74,700 244 101,260 192 79,680 239 99,185 256 106,240 287 119,105 396 164,340 1,278,200Total 3,518,685 2,912,740 2,512,195 2,183,820 2,019,370 1,863,525 2,586,250 1,921,130 2,396,560 2,656,750 2,912,525 4,024,275 31,507,825



Plate 450 335 150,750 285 128,250 210 94,500 191 85,950 175 78,750 157 70,650 215 96,750 170 76,500 190 85,500 215 96,750 275 123,750 336 151,200 1,239,300Bowl 650 335 217,750 285 185,250 210 136,500 191 124,150 175 113,750 157 102,050 210 136,500 177 115,050 190 123,500 215 139,750 275 178,750 336 218,400 1,791,400Spoon/Fork 125 330 41,250 282 35,250 213 26,625 197 24,625 177 22,125 160 20,000 218 27,250 169 21,125 191 23,875 218 27,250 276 34,500 335 41,875 345,750Cup 360 332 119,520 280 100,800 216 77,760 195 70,200 180 64,800 160 57,600 213 76,680 176 63,360 195 70,200 215 77,400 280 100,800 334 120,240 999,360Tea pot 1,040 331 344,240 289 300,560 211 219,440 196 203,840 179 186,160 159 165,360 212 220,480 173 179,920 193 200,720 217 225,680 279 290,160 338 351,520 2,888,080Vase 4,680 333 1,558,440 287 1,343,160 217 1,015,560 194 907,920 178 833,040 158 739,440 217 1,015,560 170 795,600 192 898,560 213 996,840 280 1,310,400 332 1,553,760 12,968,280Lamp 2,520 334 841,680 291 733,320 212 534,240 198 498,960 172 433,440 155 390,600 210 529,200 175 441,000 194 488,880 215 541,800 281 708,120 331 834,120 6,975,360Spa set 415 336 139,440 288 119,520 214 88,810 199 82,585 170 70,550 157 65,155 214 88,810 172 71,380 196 81,340 214 88,810 277 114,955 333 138,195 1,149,550Total 3,413,070 2,946,110 2,193,435 1,998,230 1,802,615 1,610,855 2,191,230 1,763,935 1,972,575 2,194,280 2,861,435 3,409,310 28,357,080


194


Sales Year TotalProduct Price Units Sales Units Sales Units Sales Units Sales Units Sales Units Sales Units Sales Units Sales Units Sales Units Sales Units Sales Units Sales

Plate 450 302 135,900 245 110,250 202 90,900 189 85,050 160 72,000 140 63,000 195 87,750 154 69,300 172 77,400 198 89,100 230 103,500 290 130,500 1,114,650Bowl 650 300 195,000 245 159,250 200 130,000 188 122,200 165 107,250 140 91,000 195 126,750 150 97,500 172 111,800 200 130,000 230 149,500 290 188,500 1,608,750Spoon/Fork 125 304 38,000 250 31,250 204 25,500 180 22,500 166 20,750 142 17,750 192 24,000 149 18,625 170 21,250 197 24,625 234 29,250 295 36,875 310,375Cup 360 305 109,800 248 89,280 207 74,520 180 64,800 158 56,880 143 51,480 193 69,480 150 54,000 175 63,000 199 71,640 239 86,040 293 105,480 896,400Tea pot 1,040 305 317,200 249 258,960 206 214,240 186 193,440 157 163,280 144 149,760 191 198,640 151 157,040 173 179,920 200 208,000 237 246,480 292 303,680 2,590,640Vase 4,680 303 1,418,040 250 1,170,000 204 954,720 184 861,120 160 748,800 141 659,880 197 921,960 153 716,040 171 800,280 201 940,680 238 1,113,840 297 1,389,960 11,695,320Lamp 2,520 302 761,040 247 622,440 203 511,560 183 461,160 160 403,200 140 352,800 196 493,920 154 388,080 176 443,520 201 506,520 232 584,640 296 745,920 6,274,800Spa set 415 301 124,915 249 103,335 200 83,000 182 75,530 155 64,325 145 60,175 194 80,510 152 63,080 179 74,285 198 82,170 230 95,450 298 123,670 1,030,445Total 3,099,895 2,544,765 2,084,440 1,885,800 1,636,485 1,445,845 2,003,010 1,563,665 1,771,455 2,052,735 2,408,700 3,024,585 25,521,380


195








Net Income(Loss) 6,777,806- 1,050,971 703,004 517,079 369,156 157,499 226,047 498,275 647,814 691,167 870,905 1,063,133 17,243



196




Gross profit 1,927,820 1,693,790 1,190,525 1,081,065 978,885 885,090 1,027,545 870,430 1,105,530 1,203,785 1,637,055 1,920,030 15,521,550 Expense


Income before interate and taxes 1,318,719 1,374,252 868,663 766,191 568,027 551,840 435,822 556,751 791,191 890,148 1,220,777 1,599,088 10,941,469 Interest expense 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 1,536,180

Income before income taxes 1,190,704 1,246,237 740,648 638,176 440,012 423,825 307,807 428,736 663,176 762,133 1,092,762 1,471,073 9,405,289 Income taxes expenses 357,211 373,871 222,194 191,453 132,004 127,147 92,342 128,621 198,953 228,640 327,829 441,322 2,821,587

Net Income 833,493 872,366 518,454 446,723 308,008 296,677 215,465 300,115 464,223 533,493 764,933 1,029,751 6,583,702



197




Gross profit 1,559,995 1,291,440 1,113,775 968,240 895,370 826,195 1,146,690 851,750 1,062,540 1,177,890 1,291,295 1,784,265 13,969,445 Expense


Income before interate and taxes 952,754 972,914 791,783 654,332 484,774 491,635 550,693 538,283 747,659 864,231 874,777 1,464,561 9,388,396 Interest expense 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 1,179,936

Income before income taxes 854,426 874,586 693,455 556,004 386,446 393,307 452,365 439,955 649,331 765,903 776,449 1,366,233 8,208,460 Income taxes expenses 256,328 262,376 208,036 166,801 115,934 117,992 135,709 131,986 194,799 229,771 232,935 409,870 2,462,538

Net Income 598,098 612,210 485,418 389,203 270,512 275,315 316,655 307,968 454,532 536,132 543,514 956,363 5,745,922



198


Sales 3,413,070 2,946,110 2,193,435 1,998,230 1,802,615 1,610,855 2,191,230 1,763,935 1,972,575 2,194,280 2,861,435 3,409,310 28,357,080 Cost of goods sold 1,899,860 1,639,900 1,220,910 1,112,260 1,003,410 896,670 1,219,690 981,920 1,097,990 1,221,440 1,592,750 1,897,800 15,784,600

Gross profit 1,513,210 1,306,210 972,525 885,970 799,205 714,185 971,540 782,015 874,585 972,840 1,268,685 1,511,510 12,572,480 Expense


Income before interate and taxes 909,639 992,510 655,113 576,438 393,643 386,075 379,999 472,638 565,444 663,373 852,395 1,194,400 8,041,663 Interest expense 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 906,300


Net Income 583,880 641,889 405,711 350,639 222,682 217,385 213,132 277,979 342,943 411,493 543,809 783,212 4,994,754




199



Sales 3,099,895 2,544,765 2,084,440 1,885,800 1,636,485 1,445,845 2,003,010 1,563,665 1,771,455 2,052,735 2,408,700 3,024,585 25,521,380 Cost of goods sold 1,725,510 1,416,490 1,160,260 1,049,750 910,980 804,810 1,114,940 870,370 986,050 1,142,630 1,340,740 1,683,550 14,206,080

Gross profit 1,374,385 1,128,275 924,180 836,050 725,505 641,035 888,070 693,295 785,405 910,105 1,067,960 1,341,035 11,315,300 Expense


Income before interate and taxes 769,704 812,757 606,952 527,120 319,395 311,451 298,341 384,048 476,322 601,778 655,522 1,023,721 6,787,107 Interest expense 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 696,120

Income before income taxes 711,694 754,747 548,942 469,110 261,385 253,441 240,331 326,038 418,312 543,768 597,512 965,711 6,090,987 Income taxes expenses 213,508 226,424 164,683 140,733 78,415 76,032 72,099 97,811 125,494 163,130 179,254 289,713 1,827,296

Net Income 498,186 528,323 384,259 328,377 182,969 177,408 168,231 228,226 292,818 380,637 418,258 675,997 4,263,691



200

• If total sale of company decrease 15%, so our sale revenue will decrease as follow:






• If sale revenue decreases 15%, it will affect net income of company as follow:






201





Nov DecJan Feb Mar Apr May Jun Jul Aug Sep Oct


Plate 450 405 182,250 350 157,500 240 108,000 229 103,050 210 94,500 186 83,700 204 91,800 170 76,500 225 101,250 248 111,600 343 154,350 400 180,000 1,444,500Bowl 650 405 263,250 350 227,500 240 156,000 229 148,850 210 136,500 190 123,500 209 135,850 172 111,800 225 146,250 244 158,600 345 224,250 400 260,000 2,092,350Spoon/Fork 125 400 50,000 356 44,500 242 30,250 230 28,750 213 26,625 187 23,375 207 25,875 175 21,875 227 28,375 242 30,250 341 42,625 403 50,375 402,875Cup 360 406 146,160 354 127,440 241 86,760 228 82,080 212 76,320 182 65,520 202 72,720 172 61,920 228 82,080 240 86,400 342 123,120 404 145,440 1,155,960Tea pot 1,040 412 428,480 351 365,040 239 248,560 230 239,200 219 227,760 186 193,440 206 214,240 171 177,840 220 228,800 245 254,800 339 352,560 409 425,360 3,356,080Vase 4,680 404 1,890,720 352 1,647,360 242 1,132,560 231 1,081,080 215 1,006,200 200 936,000 205 959,400 175 819,000 224 1,048,320 246 1,151,280 340 1,591,200 403 1,886,040 15,149,160Lamp 2,520 401 1,010,520 355 894,600 245 617,400 221 556,920 219 551,880 195 491,400 208 524,160 174 438,480 223 561,960 242 609,840 340 856,800 401 1,010,520 8,124,480Spa set 415 400 166,000 353 146,495 243 100,845 225 93,375 216 89,640 190 78,850 203 84,245 178 73,870 221 91,715 247 102,505 344 142,760 405 168,075 1,338,375Total 4,137,380 3,610,435 2,480,375 2,333,305 2,209,425 1,995,785 2,108,290 1,781,285 2,288,750 2,505,275 3,487,665 4,125,810 33,063,780


202




Plate 450 300 135,000 268 120,600 237 106,650 200 90,000 180 81,000 165 74,250 212 95,400 183 82,350 215 96,750 230 103,500 255 114,750 319 143,550 1,243,800Bowl 650 300 195,000 260 169,000 240 156,000 200 130,000 180 117,000 165 107,250 212 137,800 178 115,700 215 139,750 230 149,500 255 165,750 312 202,800 1,785,550Spoon/Fork 125 299 37,375 262 32,750 235 29,375 203 25,375 186 23,250 163 20,375 208 26,000 180 22,500 211 26,375 224 28,000 257 32,125 314 39,250 342,750Cup 360 297 106,920 265 95,400 233 83,880 205 73,800 185 66,600 168 60,480 211 75,960 185 66,600 210 75,600 228 82,080 250 90,000 311 111,960 989,280Tea pot 1,040 290 301,600 261 271,440 231 240,240 206 214,240 187 194,480 164 170,560 205 213,200 177 184,080 212 220,480 230 239,200 252 262,080 317 329,680 2,841,280Vase 4,680 296 1,385,280 259 1,212,120 234 1,095,120 204 954,720 189 884,520 162 758,160 200 936,000 176 823,680 214 1,001,520 230 1,076,400 254 1,188,720 316 1,478,880 12,795,120Lamp 2,520 298 750,960 267 672,840 238 599,760 202 509,040 188 473,760 160 403,200 216 544,320 179 451,080 213 536,760 229 577,080 256 645,120 316 796,320 6,960,240Spa set 415 295 122,425 266 110,390 239 99,185 207 85,905 184 76,360 167 69,305 210 87,150 180 74,700 216 89,640 226 93,790 257 106,655 315 130,725 1,146,230Total 3,034,560 2,684,540 2,410,210 2,083,080 1,916,970 1,663,580 2,115,830 1,820,690 2,186,875 2,349,550 2,605,200 3,233,165 28,104,250



Plate 450 238 107,100 215 96,750 200 90,000 181 81,450 165 74,250 147 66,150 205 92,250 150 67,500 170 76,500 200 90,000 213 95,850 241 108,450 1,046,250Bowl 650 238 154,700 215 139,750 200 130,000 181 117,650 165 107,250 147 95,550 200 130,000 157 102,050 170 110,500 200 130,000 213 138,450 241 156,650 1,512,550Spoon/Fork 125 236 29,500 212 26,500 203 25,375 187 23,375 167 20,875 150 18,750 208 26,000 149 18,625 171 21,375 198 24,750 216 27,000 247 30,875 293,000Cup 360 235 84,600 210 75,600 206 74,160 185 66,600 170 61,200 150 54,000 203 73,080 156 56,160 175 63,000 199 71,640 220 79,200 235 84,600 843,840Tea pot 1,040 231 240,240 218 226,720 202 210,080 186 193,440 169 175,760 149 154,960 202 210,080 153 159,120 173 179,920 197 204,880 219 227,760 238 247,520 2,430,480Vase 4,680 233 1,090,440 215 1,006,200 207 968,760 182 851,760 168 786,240 148 692,640 207 968,760 150 702,000 175 819,000 198 926,640 217 1,015,560 240 1,123,200 10,951,200Lamp 2,520 234 589,680 212 534,240 202 509,040 183 461,160 162 408,240 145 365,400 200 504,000 155 390,600 174 438,480 193 486,360 221 556,920 238 599,760 5,843,880Spa set 415 236 97,940 217 90,055 204 84,660 189 78,435 160 66,400 147 61,005 204 84,660 152 63,080 176 73,040 194 80,510 216 89,640 236 97,940 967,365Total 2,394,200 2,195,815 2,092,075 1,873,870 1,700,215 1,508,455 2,088,830 1,559,135 1,781,815 2,014,780 2,230,380 2,448,995 23,888,565


203



Plate 450 242 108,900 205 92,250 162 72,900 148 66,600 120 54,000 100 45,000 145 65,250 114 51,300 132 59,400 168 75,600 201 90,450 240 108,000 889,650Bowl 650 240 156,000 205 133,250 160 104,000 148 96,200 125 81,250 100 65,000 145 94,250 110 71,500 132 85,800 170 110,500 200 130,000 240 156,000 1,283,750Spoon/Fork 125 244 30,500 199 24,875 164 20,500 140 17,500 126 15,750 102 12,750 142 17,750 109 13,625 130 16,250 167 20,875 202 25,250 245 30,625 246,250Cup 360 245 88,200 198 71,280 167 60,120 140 50,400 128 46,080 103 37,080 143 51,480 110 39,600 135 48,600 164 59,040 209 75,240 243 87,480 714,600Tea pot 1,040 245 254,800 200 208,000 166 172,640 146 151,840 127 132,080 104 108,160 141 146,640 111 115,440 133 138,320 169 175,760 206 214,240 242 251,680 2,069,600Vase 4,680 243 1,137,240 200 936,000 165 772,200 144 673,920 120 561,600 101 472,680 147 687,960 113 528,840 131 613,080 165 772,200 208 973,440 247 1,155,960 9,285,120Lamp 2,520 241 607,320 197 496,440 162 408,240 145 365,400 120 302,400 103 259,560 146 367,920 114 287,280 136 342,720 170 428,400 202 509,040 246 619,920 4,994,640Spa set 415 246 102,090 196 81,340 163 67,645 142 58,930 119 49,385 106 43,990 144 59,760 112 46,480 137 56,855 168 69,720 199 82,585 248 102,920 821,700Total 2,485,050 2,043,435 1,678,245 1,480,790 1,242,545 1,044,220 1,491,010 1,154,065 1,361,025 1,712,095 2,100,245 2,512,585 20,305,310


204








Net Income(Loss) 6,777,806- 1,050,971 703,004 517,079 369,156 157,499 226,047 498,275 647,814 691,167 870,905 1,063,133 17,243



205



Sales 4,137,380 3,610,435 2,480,375 2,333,305 2,209,425 1,995,785 2,108,290 1,781,285 2,288,750 2,505,275 3,487,665 4,125,810 33,063,780 Cost of goods sold 2,303,060 2,009,690 1,380,650 1,298,830 1,229,810 1,110,870 1,173,590 991,510 1,274,020 1,394,530 1,941,410 2,296,580 18,404,550

Gross profit 1,834,320 1,600,745 1,099,725 1,034,475 979,615 884,915 934,700 789,775 1,014,730 1,110,745 1,546,255 1,829,230 14,659,230 Expense


Income before interate and taxes 1,225,219 1,281,207 777,863 719,601 568,757 551,665 342,977 476,096 700,391 797,108 1,129,977 1,508,288 10,079,149 Interest expense 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 1,536,180

Income before income taxes 1,097,204 1,153,192 649,848 591,586 440,742 423,650 214,962 348,081 572,376 669,093 1,001,962 1,380,273 8,542,969 Income taxes expenses 329,161 345,958 194,954 177,476 132,223 127,095 64,489 104,424 171,713 200,728 300,589 414,082 2,562,891

Net Income 768,043 807,234 454,894 414,110 308,519 296,555 150,473 243,657 400,663 468,365 701,373 966,191 5,980,078



206




Gross profit 1,345,380 1,190,240 1,068,560 923,580 849,970 737,540 938,030 807,220 969,565 1,041,690 1,155,040 1,433,485 12,460,300 Expense


Income before interate and taxes 738,139 871,714 746,568 609,672 439,374 402,980 342,033 493,753 654,684 728,031 738,522 1,113,781 7,879,251 Interest expense 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 98,328 1,179,936


Net Income 447,868 541,370 453,768 357,941 238,732 213,256 170,593 276,797 389,449 440,792 448,136 710,817 4,689,520



207



Sales 2,394,200 2,195,815 2,092,075 1,873,870 1,700,215 1,508,455 2,088,830 1,559,135 1,781,815 2,014,780 2,230,380 2,448,995 23,888,565 Cost of goods sold 1,332,740 1,222,290 1,164,490 1,043,060 946,410 839,670 1,162,690 867,920 991,790 1,121,540 1,241,480 1,363,230 13,297,310

Gross profit 1,061,460 973,525 927,585 830,810 753,805 668,785 926,140 691,215 790,025 893,240 988,900 1,085,765 10,591,255 Expense


Income before interate and taxes 457,889 659,825 610,173 521,278 348,243 340,675 334,599 381,838 480,884 583,773 572,610 768,655 6,060,438 Interest expense 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 906,300


Net Income 267,655 409,010 374,253 312,027 190,902 185,605 181,352 214,419 283,751 355,773 347,959 485,191 3,607,897



208


Sales 2,485,050 2,043,435 1,678,245 1,480,790 1,242,545 1,044,220 1,491,010 1,154,065 1,361,025 1,712,095 2,100,245 2,512,585 20,305,310 Cost of goods sold 1,383,260 1,137,510 934,150 824,300 691,700 581,240 829,940 642,370 757,590 953,050 1,169,040 1,398,550 11,302,700

Gross profit 1,101,790 905,925 744,095 656,490 550,845 462,980 661,070 511,695 603,435 759,045 931,205 1,114,035 9,002,610 Expense


Income before interate and taxes 497,109 590,407 426,867 347,560 144,735 133,396 71,341 202,448 294,352 450,718 518,767 796,721 4,474,417 Interest expense 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 696,120


Net Income 307,369 372,678 258,200 202,685 60,707 52,770 9,331 101,106 165,439 274,895 322,530 517,097 2,644,808




209

2 Increasing interest rate

Interest rate increase 5% So, interest rate equal 25%



210

Table 8.31 Income statement of interest rate increase 5% Year 2012






Income before income taxes 5,278,440- 1,459,721 962,625 697,019 485,700 183,332 281,259 670,155 883,782 945,715 1,202,484 1,477,095 8,970,439 Income taxes expenses 1,541,032 437,916 288,787 209,106 145,710 55,000 84,378 201,046 265,135 283,714 360,745 443,128 2,691,132

Net Income(Loss) 6,819,472- 1,021,805 673,837 487,913 339,990 128,332 196,881 469,108 618,647 662,000 841,739 1,033,966 345,252-



211








Net Income 1,352,291 1,396,078 707,664 529,502 387,091 275,898 36,979 468,546 596,796 797,096 1,350,221 1,519,006 9,417,166



212








Net Income 1,742,997 1,804,240 843,570 616,164 548,521 424,397 174,510 662,900 614,156 794,261 1,661,691 1,945,575 11,832,982



213








Net Income 2,041,176 2,113,942 1,429,302 991,287 588,966 352,441 126,007 608,587 911,505 1,257,256 1,967,281 2,128,768 14,516,518



214








Net Income 2,639,210 2,679,997 1,328,465 1,027,523 721,497 380,577 214,303 884,015 1,161,659 1,505,969 2,242,634 2,669,875 17,455,725



215








Net Income(Loss) 6,861,139- 992,638 644,671 458,746 310,823 99,165 167,714 439,942 589,480 632,834 812,572 1,004,800 707,754-



216







Income before income taxes 1,912,389 1,974,942 991,493 736,976 533,532 374,685 33,372 649,896 833,111 1,119,253 1,909,432 2,150,553 13,219,634 Income taxes expenses 573,717 592,483 297,448 221,093 160,060 112,405 10,012 194,969 249,933 335,776 572,830 645,166 3,965,890

Net Income 1,338,672 1,382,459 694,045 515,883 373,472 262,279 23,360 454,927 583,178 783,477 1,336,602 1,505,387 9,253,744



217








Net Income 1,738,283 1,799,526 838,856 611,450 543,807 419,684 169,796 658,186 609,442 789,547 1,656,977 1,940,861 11,776,416



218








Net Income 2,041,294 2,114,060 1,429,420 991,406 589,084 352,559 126,126 608,705 911,624 1,257,374 1,967,399 2,128,886 14,517,937



219








Net Income 2,641,720 2,682,508 1,330,976 1,030,034 724,008 383,087 216,813 886,525 1,164,169 1,508,479 2,245,144 2,672,385 17,485,847



220








Net Income(Loss) 6,902,806- 963,471 615,504 429,579 281,656 69,999 138,547 410,775 560,314 603,667 783,405 975,633 1,070,257-



221







Income before income taxes 1,897,068 1,959,621 976,172 721,655 518,211 359,364 18,051 634,575 817,790 1,103,932 1,894,111 2,135,232 13,035,782 Income taxes expenses 569,120 587,886 292,852 216,496 155,463 107,809 5,415 190,372 245,337 331,180 568,233 640,570 3,910,734

Net Income 1,327,948 1,371,735 683,320 505,158 362,748 251,555 12,636 444,202 572,453 772,752 1,325,878 1,494,662 9,125,047



222








Net Income 1,736,835 1,798,078 837,408 610,002 542,359 418,235 168,348 656,738 607,994 788,098 1,655,529 1,939,413 11,759,037



223








Net Income 2,044,061 2,116,827 1,432,187 994,173 591,851 355,326 128,893 611,472 914,391 1,260,141 1,970,167 2,131,653 14,551,142



224








Net Income 2,646,012 2,686,799 1,335,267 1,034,325 728,299 387,379 221,105 890,817 1,168,461 1,512,770 2,249,436 2,676,677 17,537,347



225

3 Increasing cost/ expense

• If cost/ expense increase 5%, net income will be affected as follow:

Year 2012 Net income is -98,603 Baht





226

Table 8.46 Income statement of cost increase 5% Year 2012







Net Income(Loss) 6,793,560- 1,042,029 693,945 508,293 360,384 148,066 215,547 489,452 638,962 682,324 861,857 1,054,098 98,603-



227






Income before interate and taxes 2,067,526 2,133,033 1,149,468 895,300 691,892 532,090 189,267 808,194 991,350 1,277,528 2,067,415 2,308,468 15,111,530 Interest expense 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 128,015 1,536,180


Net Income 1,357,658 1,403,512 715,017 537,099 394,714 282,853 42,877 476,125 604,335 804,659 1,357,580 1,526,317 9,502,745



228








Net Income 1,740,267 1,803,548 842,757 615,633 547,991 423,144 172,096 662,325 613,514 793,661 1,660,879 1,944,768 11,820,583



229








Net Income 2,033,321 2,108,165 1,423,395 985,656 583,358 346,159 118,496 602,901 905,810 1,251,549 1,961,224 2,122,797 14,442,831



230








Net Income 2,628,278 2,671,120 1,319,528 1,018,876 712,833 371,207 203,817 875,296 1,152,928 1,497,264 2,233,674 2,660,860 17,345,682



231

• If cost/ expense increase 10%, net income will be affected as follow:






232








Net Income(Loss) 6,809,536- 1,032,932 684,732 499,506 351,612 138,632 205,167 480,750 630,267 673,638 852,801 1,045,057 214,443-



233








Net Income 1,346,458 1,394,380 705,803 528,286 385,925 273,396 32,484 467,413 595,618 795,966 1,348,520 1,517,209 9,391,458



234








Net Income 1,729,200 1,794,451 833,538 606,853 539,211 413,641 161,553 653,621 604,778 784,968 1,651,811 1,935,704 11,709,331



235








Net Income 2,022,140 2,099,063 1,414,163 976,856 574,581 336,708 107,935 594,166 897,101 1,242,829 1,951,990 2,113,650 14,331,182



236








Net Income 2,617,059 2,661,954 1,310,302 1,010,097 704,037 361,704 193,320 866,566 1,144,221 1,488,584 2,224,575 2,651,705 17,234,124



237

• If cost/ expense increase15%, net income will be affected as follow:






238








Net Income(Loss) 6,825,067- 1,035,605 687,288 502,178 354,298 140,658 206,185 483,447 632,952 676,332 855,442 1,047,711 202,970-



239








Net Income 1,335,569 1,397,018 708,359 530,931 388,596 275,398 33,489 470,101 598,282 798,655 1,351,156 1,519,798 9,407,351



240







Net Income 1,718,308 1,797,124 836,090 609,533 541,891 415,598 162,410 656,315 607,423 787,656 1,654,439 1,938,335 11,725,122




241








Net Income 2,011,271 2,101,731 1,416,701 979,514 577,263 338,717 108,773 596,830 899,773 1,245,489 1,954,452 2,116,199 14,346,712



242








Net Income 2,606,151 2,664,558 1,312,847 1,012,776 706,700 363,661 194,221 869,234 1,146,895 1,491,284 2,227,172 2,654,247 17,249,746



243

8.3 Conclusion

Risk Management is designed to do more than just identify the risk. It must also quan-

tify the risk and predict the impact on the project. We do risk management by the purposes of

identify possible risk, allocate those risks and provide a basis for better decision making. We

divide our risks into 2 groups first, internal risk is mainly effect from the company especially

from the human resource department and other are the related of human resource department.

The company needs to be good at human resources if they want to be avoiding internal risk

managements. Some risky activities are central to the mission of an organization and an or-

ganization will choose to accept the risks. Policies and procedures are an important part of

this risk management strategy because they communicate expectations and define boundaries.

To be successful we need to learn more about writing policies and procedures in a company.

Second, external risks are uncontrollable. We cannot control them but we can do prepare

from our organizations. We need to make sure that we had prepared for it and we are in-

volved with it to do the better situation. The government and other outstanding company will

help each other and we can success with the business even we are in danger because it is ex-

ternal risks no one can control it.

244

Chapter 9

Summary

245

Summary of project feasibility study

In the past, pottery is looked its oldest and look like ancient when human started lean-

ing to domesticate plants and animals about 10,000 years ago. But nowadays, pottery industry

is the popular business in Thailand and other countries (The Thaiceramic society). For Thail-

and, almost the factories are located in the northern especially in Lampang province. Because

the value of pottery production is more than 300 million Baht per year, so the number of pot-

tery business increase all the time. Pottery includes both decorative and home ware such as

bowl, vase, dish, lamp, etc. It is a part of large product group called ceramic that encom-

passes bricks, cement, sewer pipes, and other industrial product. For Chiang Rai province,

there is a good location to do business in pottery field because there are abundantly good

qualities of raw material which are easy to find and the cost of material quite cheap. This is a

main point that some entrepreneurs choose Chiang Rai as their business location. The com-

pany that decides to do pottery business need to improve the quality of their products and

service that prompt delivery and continuously development. The experiences, creation in de-

sign and high skill of potter are the necessary conditions that every company has to concern

because pottery is the art products that use a lot of production processes. Nowadays, not only

individual consumer interest in pottery for their usage and decoration but also hotels and spas

prefer pottery as their table ware and decorative items. The entrepreneur needs to learn more

about the situation of pottery business at first before doing in real.

After Pottery Design learns about the necessary conditions for beginning pottery

business, we focus on serving commercial premium products to consumer and staying on pro-

fessionalism. We will follow the vision through serving differentiate products with superior

quality. Consumer can perceive the value from those products. We concern in Growth strate-

gy which is suitable for newly company as Pottery Design. We produce pottery and serve to

consumer directly which knows as vertical integration. We focus on differentiation as our

business strategy. We serve modern style with natural resources which are safety to the health

of consumer. We target the consumer by tourists who are Thai and foreigner in Chiang Rai

and hotels& spas in Chiang Mai. According to Chiang Rai, there are many interested places

to travel all of the year especially in the winter. For hotels & spas in Chiang Mai, the number

of hotels increases every year from year a2009-2010, increasing by 37 hotels within one year.

This means we absolutely can do business with this group of consumer. So, we realize that

creating the company’s brand is very important. It forces the mind of consumers more recog-

246

nize in a company’s position. Moreover, branding shows the unique characteristics of each

company. We also serve the premium service to consumers which may exceed their expecta-

tions. When consumers want us to design their own order, the decorator of company will help

them design with a polite service at their place. Although they have to pay for our pottery in

expensive, they can perceive value from product by quality and its price. This shows that the

price is not the main factor for consumer to decide whether they will buy pottery or not. We

place the products in our store at Mae-jan district, Chiang Rai where is located with premium

clay and the consumers can follow the products through company’s website and the cam-

paign of company at central plaza Chiang Rai on January and July of each year. We will pro-

vide the pottery information and the transaction process for consumer to purchase our prod-

uct. We serve 2 types of pottery first, decorative items which include vase, lamp, and spa set.

Second, a type of home ware which are plate, bowl, spoon and fork, cup, and teapot. We

don’t only focus on corporate and business strategy but also functional, financial and human

resource strategy because all of these strategies are the important elements that new business

needs to consider.

Marketing analysis is also necessary before starting business. Political analysis is the

one factor that we concentrate with. However, Thailand changes the prime minister; the new

policy of tourism industry doesn’t much change. The number of tourist still increase to

11.96% from 2.98% in year 2010-2011. Thus, pottery business is not affected. This causes

the increasing of hotels& spa and the demand for their decorative items will increase. For

economy analysis, although there is flood disaster in the center of Thailand, the economy in

that area is bad. In other hand, economy of the northern of Thailand still good. It doesn’t af-

fect our company. According to government support the new family, people can apply the

loan to purchase or build their house. The demand for purchasing new home ware and decor-

ative items are increased. Therefore, we have an opportunity to get more sales. We also need

to concern about technology which is helpful to production process. It can reduce the cost and

making an easy way to contract with other parties. Pottery Design faces with many competi-

tors such as Doy Din Dang, Wieng Kalong, Baan Celadon, and indirect competitor as S.D.

company where sell ceramics. It looks a big deal for us to do business. In this case, we are

confident that we can serve the unique potteries which are direct to the preference of our tar-

gets. Because we have own style that others cannot be like us. However, we are newly com-

pany, but we plan to develop our strategies to be better all the time. We need more time to

grow up as well known company.

247

For our sale forecast, we use statistic of tourists (Thai and foreigner) who come to tra-

vel in Chiang Rai in year 2005. The statistic shows that on January- March, the number of

tourists is quite high because there is winter in Chiang Rai. We can forecast the total sale by

using the statistic of tourist and their payment for souvenir. Each tourist pay for souvenir

about 601.95 Baht, we can see from the table of average expenditure of Chiang Rai tourist. In

addition, we need to know the number of hotel& spa in Chiang Mai because there is also our

target. The figure from Ministry of Tourism and Sports of Thailand show that in year 2009-

2010, there are increasing the number of hotel in Chiang Mai from 410 to 447 hotels. The

information of operating expense of hotels industry in Chiang Mai is also required. We need

to forecast our sale because we would like to estimate the amount of producing pottery in the

right amount with the right time for managing the cost in an effective way.

We choose to buy the land which near the main road (Phahonyothin road). We think

that we can make the opportunity to get more consumers when the store is easy to find. We

need to hire constructed company to build our buildings and decorative area around company.

Gate and car parking are also required for making. We divide our company into three parts

which are manufacture, store that includes with rest rooms and office. For setting new busi-

ness, we need to pay for taxes of billboard’s company. We require some facilities that force

us to be easy in working such as the need of high speed internet, electronic& telephone& wa-

ter installation, secure camera setting and air condition setting. For the needed equipments for

using in operating and administration process, we need the standard equipments especially in

operating. We have to buy equipments that are essential for our manufacture such as Gas

Furnaces Ceramic, Pacifica Potter's Wheel and Seat for Pacifica Wheels. We choose each of

them by concern in quality. Although it is costly for our company, it lets us to produce quali-

ty of pottery for consumers. The vehicles that are car and trucks are necessary for our operat-

ing. For the machines and equipments that we use in administration process which includes in

office, shop, kitchen and restroom, we require some machines that use in office such as com-

puters, printer, phone, boss desk, chair, air conditions, sofa set, etc. For in the shop, we re-

quire cash register, pottery shelf, set of counter, etc. We also need some machine for using in

the kitchen such as microwave, insolated container of hot water, kitchen sink cabinet, etc. We

plan the service process by directly delivery products to hotels& spa in Chiang Mai by our

truck’s company. In other hand, consumer can buy our pottery though the store at Mae Jan,

Chiang Rai. There are many parts that are elements in the cost of operating process which are

raw material cost, direct labor cost and manufacturing overhead cost. We hire employees by

248

required qualifications so we can select the best person who direct to our requirement. We

will get the right worker with the right job. We need nine positions in operation process

which are factory manager, technician, potter, product designer, quality controller, stock con-

troller, baking person, packaging and delivering person. For administration position, we need

eleven positions which are top manager, financing manager, accountant, marketing manager,

sales person, advertising assistant, human resource manager, training and development staff,

housekeeping and security guard. On the cost of factory utilities in operating process consists

of water expense and electricity expense. The cost of car and fire insurance is also includes in

operation cost. For water and electricity expense, the cost will vary from the number of pro-

duction. In other hand, the cost of facilities in administration works include with telephone

expense, internet expense, water expense, electronic expense and training of employee. We

divide the responsibilities of each employee according to their work. Our company has CEO

as the top and there is a top manager to assign work to each department. We have four de-

partments within company consist of the part of factory, human resource, marketing and fi-

nancing. From this way, we clearly to manage the tasks to each worker, so the workers will

know what the tasks they have to do and to perform in the right ways.

In term of financial analysis, Pottery Design has to provide the information of finan-

cial statement analysis for the investor to make decision. We prepare financial analysis for



to know us. The investor will seek the capability, stability, profitability, solvency, and liquidi-

ty of company in financial statement financial statement consists of income statement, cash

flow and balance sheet. For income statement, it shows the company profit or loss that comes

from the revenue deduct by expense of operating, administration, marketing, pre-investment

and the cost of depreciation. We do income statement for report a company's earnings to in-

vestors over a specific period of time. Investors will make decisions based on the reported

earnings from the income statement. It provides important insights into how effectively man-

agement is company can control their expenses, the amount of interest income and expense,

and the taxes paid. From Pottery Design income statement shows that we only get the loss on

first month of beginning year because it takes cost too much about expense. For other months

we can get net income. Cash flow let investors to understand how a company's operations are

running, where its money is coming from, and how it spends. It is determined into three areas

which are operating activities, investing activities and financial activities. The investor can

249

see the return over rate of company from cash flow. Almost of liquidation in Pottery Design

is positive, this shows that we quite have cash on hand. For balance sheet, it is a snapshot of

the company’s accounts or assets, liabilities and shareholders’ equity. The investor can get

the idea of the company’s financial position along what the company owns and owes. Total

asset and total liability & equity of Pottery Design are equal. This means our company has

enough liquidation. We are a newly company which is well in financial term. Therefore, we

are a consistent to make profit and can deal with any financial risk that will occur with the

company.

There are external and internal risks that Pottery Design faces when doing business.

This is a good way for us to forecast the risks that will occur before beginning business be-

cause we can earlier prepare the solutions to prevent the risks that will nearly come. For ex-

ternal risks, it is a risk that we cannot predict or control. Political risk is a risk that may cause

from changing the prim minister so; some new patterns of policy may change and lead the

pattern of our business change as well. The risk of economic is required for us to concern be-

cause from year 2006, the cost of living in Thailand quite high. People are rare to buy and

make decorative items for their building. At a present, we concern about this also because it

ever happened before. In other hand, we may get the good news that we are coming to get

opportunities to do economic with ASEAN countries. At that time, we can express our mar-

keting; we can send our pottery to those countries. In the risk of social, although our company

does not affect too much about other nationality people around Chiang Rai, we plan to serve

CSR to community. This can reduce the social risk of company. Moreover, technology

changes all the time so, we need to upgrade our machines for more safety to the workers. We

need to prepare for it. For environmental risk such as flood, earthquake, etc., these situations

can happen every time. Therefore, we need to know the basics of knowledge management

and how we can avoid effectively applied to lessening the adverse effects on our company.

Also competitor risk, we have to handle with it because there are many competitors in pottery

field so, we prepare for this by staying in own way and make consumer more trust in our

company because consumer who love the different style will loyalty in unique products. In

contrast, the mind of consumers always changes in style of product all the time. We need to

keep in touch with them. We will show our responsibility and wiliness instate of changing the

way we design because our design is unique.

Internal risk affect directly with many parts of company. It can happen in many con-

ditions. This is a kind of risk that we can control when we predict the situation and plan the

250

way to solve it. Especially human resource risk, we always face with them. Some employees

lost of efficiency and knowledge because sometimes we cannot know who is good or bad in

working such as driver is drunk during their work time. This affects to late delivery product

to consumer. Thus, we need to train employee at the first time and protect our company by

law and let them know which one can do or cannot do. For the health of employee, when they

work for long time, It causes employee has a problem with muscular skeletal injuries. Staff

should carefully supervised and correct procedures for loading and unloading strictly ob-

served. We also have marketing risk which the staffs have to communicate with all of our

customers. They have to know what are customer needs and wants, asking customers such as

questionnaires, promoting our products with many ways. We will understand what a disaster

is and its potential for causing loss of revenue as well as public trust. We will mange the

marketing team as professionals that keep the horror, so to speak, present. We have a problem

with the information which we are hard to find the specific statistics, but it shows just general

information. Therefore, we can be wrong in understanding. Also we have a little experience

and information about the market. It is easy for us to have the mistake. We realize that we can

solve this issue by doing research, questionnaire, observation, etc in the market. We think that

doing in this way can support and make us get more and clearly information. The operation

risk that we have is about taking long time to produce pottery because it is handmade process.

In case consumer harries us to deriver pottery with large amount for them it take long time to

deriver because of long time operation. However, we need to develop our system so; they

will follow the company’s system and better know how to perform their tasks in suitable way.

Moreover, the risk of cost always happens to our company. The cost of material and wage

fluctuate all the time. It depends on economic situation. We have to concern the situation that

relate to the company’s cost all the time and always check the price of raw material and more

knowing about what we purchase. This will prevent us from any cost mistakes. For prevent-

ing fire risk, we will check fire conducted and reviewed annually. We plan to solve punctuali-

ty risk in machine and equipment by more careful and check before using. Pottery Design

lists the risks both external and internal that will occur in doing business in order to prepare

the active solutions to prevent any risks away from company. We will create the best solu-

tions to lead the less effect of risks for company.

In conclusion, pottery design as a newly company in pottery industry at Chiang Rai

that serve the unique style pottery. We have competitive advantages that superior from others

such as style of the product, greater quality, service; deriver product to consumer in other

251

areas, providing verity channels to communicate, etc. In addition, we plan to expand our

products to the new market in other countries especially ASEAN countries because of encou-

ragement in government policy. This figures that we can increase total sale when getting

more markets. We give the interest rate at 20% to investor. This rate is quite high and we will

pay amount of interest to investor in each year not the same because we need to pay for inter-

est in earlier year higher than the next. The amount that we pay will decrease eventually. We

have the rate of IRR=10% and NPV= - 4,187,981 Baht (In this case, there are many interest

rates that we can choose if we choose the rate at 3%, 5%, 9%, our NPV will be 24,093,578,

10,397,719 and 876,623 Baht respectively, but the real we choose to give 20% interest rate

so, the real NPV of us is about - 4,187,981 Baht). Moreover, we will pay back all money to

the investor within 1 year and 15 days. Our amount of time to pay back is quite short time.

252

Reference








http://123.242.133.66/tourism/th/home/download_list.php?gid=4

http://www.nesdb.go.th/Default.aspx?tabid=433

http://www.kasikornresearch.com/






http://www.tisccm.moc.go.th


http://ceramiccenter.dip.go.th/LinkClick.aspx?fileticket=ibiEXdbbpP8%3D&tabid=36










http://www.mwa.co.th/ewt/mwa_internew/watercost.html


http://www.adecco.co.th/Uploads/Knowledge-Center-Thought-Leadership/Thailand-Salary-

Guide/Adecco-Thailand-Salary-Guide-2011.pdf

http://dwd.wisconsin.gov/er/labor_standards_bureau/publication_erd_13109_p.htm








http://123.242.133.66/tourism/th/home/download_list.php?gid=4

http://www.nesdb.go.th/Default.aspx?tabid=433






http://www.tisccm.moc.go.th/


http://www.facebook.com/l.php?u=http%3A%2F%2Fceramiccenter.dip.go.th%2FLinkClick.aspx%3Ffileticket%3DibiEXdbbpP8%253D%26tabid%3D36&h=nAQENbCz2











http://www.adecco.co.th/Uploads/Knowledge-Center-Thought-Leadership/Thailand-Salary-Guide/Adecco-Thailand-Salary-Guide-2011.pdf

http://www.adecco.co.th/Uploads/Knowledge-Center-Thought-Leadership/Thailand-Salary-Guide/Adecco-Thailand-Salary-Guide-2011.pdf

http://dwd.wisconsin.gov/er/labor_standards_bureau/publication_erd_13109_p.htm

253

http://www.totnetcall.com/VoIP/rate.aspx

http://www.toteservice.com/thai/adsl/

http://www.business-in-asia.com/investment_costs2.html



http://www.reportbuyer.com/countries/asia_pacific/thailand/country_risk_service_thailand_ja

nuary_2012_updater.html

http://www.flooding.ie/en/media/The%20Planning%20System%20and%20Flood%20Risk%2

0Management.PDF

www.kenttrustweb.org

http://www.toteservice.com/thai/adsl/

http://www.business-in-asia.com/investment_costs2.html



254

Appendix

Fire Insurance and car Insurance

255

ประกนรถยนต allianz CP 2 Plus

รายละเอยด/เงอนไขการรบประกนภย

- คมครองทรพยสนและรถของคกรณสงสด 1,000,000 บาท(ตอครง)

- มเงนชดเชยคกรณสงสด 500,000 บาท/คน และไมเกน 10,000,000 บาท(ตอครง)

- คมครองตวรถของทานจากอบตเหตสงสด 100,000 บาท(ตอครง)

- คมครองรถหาย-ไฟไหมวงเงน 100,000 บาท

- คมครองบคคลภายในรถไมเกน 3 คน มเงนชดเชย 100,000 บาท/คน และคารกษาพยาบาล 100,000 บาท/คน

ขอกาหนดของบรษทประกนภย

- ไมคมครองการเสยหาย เนองจากไฟไหม

- จากดอายรถไมเกน 15 ป

- ทนประกนไมตากวา 80% ของราคารถยนต (พจารณาโดยบรษทประกน)

- รบประกนรถยนตสวนบคคล ไมใชรบจางหรอใหเชา

- รบประกนอในเครอ

- รบสวนลดปตออาย 600 บาท (ไมมการเรยกรองคาสนไหมทงฝายผดและฝายถก)

- บรการรถฉกเฉน 24 ชวโมง

- ตรวจสภาพรถกอนรบประกน

กลมอลอนซ

บรษท อลอนซ เปนหนงในบรษทฯประกนภยทใหญทสดในยโรป กอตงเมอป 1890 ในประเทศเยอรมน มประสบการณใน

การรบประกนภยมากกวา 100 ป ใหบรการรบประกนภยแกลกคามากกวา 60 ลานคน ดวยเครอขายสาขามากกวา 70

ประเทศทวโลก อลอนซ ไดรบการจดอนดบสถานะทางการเงนในระดบแขงแกรงมาก ( AA-) โดยสถาบนจดอนดบ แสตน

ดารด แอนด พวร

เครอเจรญโภคภณฑ ( ซ. พ.)

เปนกลมธรกจเกษตรอตสาหกรรมทใหญทสดในประเทศไทย กอตงมานานกวา 80 ป มพนกงานในเครอรวมกนกวา

120,000 คนทวโลก (ประกอบดวยธรกจอาหารสตว ฟารมกง ฟารมเปดไก ฟารมสกร โรงงานแปรรปผลตภณฑเนอสตว

และ รานอาหาร ) ตอมาไดขยายสธรกจโทรคมนาคมและการสอสาร ธรกจคาสงและคาปลก ธรกจปโตรเคม ธรกจประกน

ชวต และ ธรกจประกนภยเครอเจรญโภคภณฑ ไดรบการจดอนดบเปนอนดบ 1 ของบรษททงหมดในประเทศไทยตดตอกน

เปนปท 5 จาก " นตยสารฟารอสเทรน อโคโนมค รวว" วาเปนธรกจทมความแขงแกรงของสถานะทางการเงน ผบรหารม

วสยทศน สามารถตอบสนองใหลกคาพงพอใจ และมความสามารถแขงขนเชงธรกจสง

256

ความคมครองประกนภยรถยนต Plan 1 Plan 2

ซอมรถคณ ตอครง ** 100,000 200,000

รถหาย ไฟไหม 100,000 200,000

บาดเจบเสยชวตบคคลภายนอก 500,000 / คน

บาดเจบเสยชวตบคคลภายนอก 10,000,000 / ครง

ทรพยสนบคคลภายนอก/ซอมรถคกรณ 1,000,000 / ครง

ประกนอบตเหต 100,000 / คน *

คารกษาพยาบาล 100,000 / คน *

ประกนตวผขบข 200,000 / ครง

คาเสยหายสวนแรก กรณเปนฝายผด 2,000

เบยประกนราคาปกต 8,600 11,000

เบยประกนราคาพเศษ 7,440 10,200

Click ดรายชออซอม

* คมครอง 5 คน

**รบประกนเฉพาะกรณชนกบยานพาหนะทางบกเทานน

***กรณถกชนแลวหน ไดรบความคมครองเมอ เมอสามารถแจงใหบรษททราบไดถงรายละเอยดของรถทมาชน โดยทาการ

แจงความกบเจาหนาทตารวจ และนาบนทกประจาวนมาแสดง

http://www.allianzcp.com/AZCP/claims.jsp

257

ใบสงซอประกนภย

Source: http://www.todayinsure.com/index.php?ui=sales&pid=3562

258

พรบ. คาเบยประกนภย และความคมครอง

พ.ร.บ.รถเกง พ.ร.บ.รถกระบะ พ.ร.บ.รถต

ราคา : 645 บาท ราคา : 967 บาท ราคา : 1,182 บาท

ความคมครองตามพระราชบญญตคมครองผประสบภยจากรถ พ.ศ.2535

1. คาเสยหายเบองตนสาหรบผขบข ความคมครอง

1.1 กรณบาดเจบ ในวงเงนไมเกน 15,000 บาท/คน

1.2 กรณบาดเจบ/เสยชวต ในวงเงนไมเกน 35,000 บาท/คน

2. คาเสยหายเบองตนสาหรบผประสบภย ความคมครอง

2.1 กรณบาดเจบ ในวงเงนไมเกน 50,000 บาท/คน

2.2 กรณบาดเจบ/เสยชวต ในวงเงนไมเกน 100,000 บาท/คน

Source: http://www.irminsure.com/index.php?lay=show&ac=article&Id=452728&Ntype=1

ประเภทรถ คาเบยประกนภยพรบ จายเงนสด

รถเกง 645.00 บาท 610 บาท

รถกระบะ 967.00 บาท 920 บาท

รถต 1,182 บาท 1,125 บาท

259

ทนประกนภย

1. สงปลกสราง คานวนทนประกนภยจาก พนทใชสอยรวมเปนตารางเมตร คณดวยราคาประเมนคากอสราง

ตอตารางเมตร โดยมสตรการคานวณดงน

ทนประกนภย = (กวาง x ยาว x จานวนชน x จานวนคหา)

คณดวยราคาประเมนตอตารางเมตรและใหราคาประเมน

สงปลกสรางชน 1 (ผนงคอนกรตลวน) = 8,000 บาท/ตรม.

สงปลกสรางชน 2 (ผนงครงตกไม) = 6,000 บาท/ตรม.

2. เฟอรนเจอร เครองตกแตง และของใชอน ใหประเมนตามความเปนจรง

3. สตอกสนคา ใหประเมนตามความเปนจรง

หากผเอาประกนภยตองการใหคมครองสงปลกสรางดวยทนประกนแบบชดใชตามมลคาทรพยสน

ทเปนของใหม (New Replacement Value Cost) ผเอาประกนภยจะตองแจงราคา

สงปลกสรางตามมลคาการกอสรางในปจจบน พรอมทงปรบทนประกนภยสงปลกสรางตามดชนราคา

กอสรางทเปลยนแปลงในแตละป

ถาทนประกนตากวามลคาทแทจรง เมอเกดความเสยหาย ผเอาประกนภยตองรวมเฉลยคาเสยหาย

การประกนอคคภย สาหรบรานคายอย/สานกงาน

เฉพาะสงปลกสราง ชน 1 - ผนงคอนกรตลวน สงปลกสรางชน 2 – ผนงครงตกครงไม

ทตงอยในเขตกรงเทพมหานคร และอาเภอเมองทวประเทศ

ตารางเบยประกนอคคภย สาหรบบานอยอาศยในกรงเทพมหานคร และอาเภอเมองทวประเทศ

260

รานคายอย สานกงาน

สงปลกสรางชน 1 สงปลกสรางชน 2 สงปลกสรางชน 1 สงปลกสรางชน 2

ทน

ประกนภย

เบยประกน ทนประกนภย เบยประกน ทนประกนภย เบยประกน ทนประกนภย เบยประกน

300,000 757.56 300,000 1,772.99 300,000 645.21 300,000 919.31

400,000 1,010.08 400,000 2,363.63 400,000 645.21 400,000 1,225.15

500,000 1,262.26 500,000 2,954.27 500,000 645.21 500,000 1,531.17

600,000 1,515.12 600,000 3,545.98 600,000 773.61 600,000 1,837.19

700,000 1,767.64 700,000 4,136.62 700,000 903.08 700,000 2,143.21

800,000 2,020.16 800,000 4,727.26 800,000 1,031.48 800,000 2,450.30

900,000 2,272.68 900,000 5,317.90 900,000 1,160.95 900,000 2,756.32

1,000,000 2,525.20 1,000,000 5,908.54 1,000,000 1,289.35 1,000,000 3,062.34

2,000,000 5,049.33 2,000,000 11,817.08 2,000,000 2,578.70 2,000,000 6,123.61

3,000,000 7,574.53 3,000,000 17,725.62 3,000,000 3,868.05 3,000,000 9,185.96

4,000,000 10,098.66 4,000,000 23,634.16 4,000,000 5,157.40 4,000,000 12,247.22

5,000,000 12,622.79 5,000,000 29,542.70 5,000,000 6,445.68 5,000,000 15,308.49

6,000,000 15,147.99 6,000,000 35,451.24 6,000,000 7,735.03 6,000,000 18,370.83

7,000,000 17,672.12 7,000,000 41,359.78 7,000,000 9,024.38 7,000,000 21,143.21

8,000,000 20,197.32 8,000,000 47,268.32 8,000,000 10,313.73 8,000,000 24,494.44

9,000,000 22,721.45 9,000,000 53,176.86 9,000,000 11,603.08 9,000,000 27,555.71

10,000,000 25,245.58 10,000,000 59,085.40 10,000,000 12,891.36 10,000,000 30,616.98

261

หมายเหต เบยประกนภยตามตาราขางตน รวมภาษมลคาเพม 7% และอากรแสตมปแลว

จานวน 645.21 บาท เปนเบยประกนภยขนตา ตามพกดอตราเบยประกนภยป 2544

สถานทตงทรพยสนเอาประกนภย

สถานทเอาประกนภย ทประกอบธรกจเปนรานคายอย หรอสานกงาน โดยจะพจารณาเฉพาะทเปน

สงปลกสรางชน 1 (ผนงคอนกรตลวน) และสงปลกสรางชน 2 (ผนงครงตกครงไม) ทตงอยใน

เขตกรงเทพมหานคร และอาเภอเมองทวประเทศ เทานน

ทรพยสนทรบประกนภย

1. สงปลกสราง หรอตวอาคาร (ไมรวมรากฐานและราคาทดน) รวมสวนตอเตมอาคาร

2. เฟอรนเจอร เครองตกแตงตดตงตรงตรา เครองใชไฟฟาและอปกรณไฟฟา

และเครองใชตางๆ

3. สตอกสนคา

ภยทใหความคมครอง

1. ไฟไหม

2. ฟาผา

3. การระเบดของแกสหงตมทใชเพอการอยอาศยในครวเรอน

วธการชาระเบยประกนภย

1. ศนยการบรการลกคา บรษท เมองไทยประกนภย จากด (มหาชน) สานกงานใหญ

2. เชค ขดครอม “A/C PAYEE” สงจายในนาม

“บรษท เมองไทยประกนภย จากด (มหาชน)”

3. ดราฟท ขดครอม “A/C PAYEE” สงจายในนาม

“บรษท เมองไทยประกนภย จากด (มหาชน)”

4. ธนาณต สงจายในนาม “บรษท เมองไทยประกนภย จากด (มหาชน)”

สงมาท ปณฝ.เมองไทย-ภทร คอมเพลกซ

5. ชาระดวยบตร ATM: ธนาคารกสกรไทย, ธนาคารกรงไทย และ ธนาคารกรงเทพ

6. ชาระทางโทรศพทท บมจ. ธนาคารกสกรไทย โทร. 0 2888 8888

262

7. ชาระผาน Internet Banking โดยสมครเปนสมาชก

ทเวบไซต www.kasikornbank.com

8. ชาระเงน ณ จดบรการ Jay Mart Shop: สาขาทมสญลกษณ Jay Mart

(เฉพาะเงนสด)

9. ชาระเงน ณ จดบรการ Pay station AIS/เทเลวซทวประเทศ

(เฉพาะเงนสดไมเกน 50,000 บาท)

หมายเหต การชาระเบยประกนภย ผเอาประกนภยจะตองอางองเลขทกรมธรรมประกนภยในการชาระเบยประกนภยดวย

Source: http://www.muangthaiinsurance.com/products_small_business.htm

http://www.kasikornbank.com/

263

Project Feasibility and Evaluation Group Member Seat 7

Team name : Power Ants

Pottery Design MISS NANG MAY THU AUNG 5131205222 Hospitality Industry Management

[email protected] 087-3622820

MISS PORNPAVEE WORASUBHAKORN 5231203091 Business Administration


MISS RATTANAPON KONGSONG 5231203102 Business Administration


MISS WARISSARA MANOSAMOOT 5231203108 Business Administration


MR. WICHAKORN KUNAPOE 5231203111 Business Administration


MISS SUPARAT THANATHIP 5231203121 Business Administration


MISS SAWITRA PHONPHAIRIN 5231203123 Business Administration


MISS YIWEI GAO 5231203186 Business Administration


School of Management

Mae Fah Luang University

Project Feasibility Pottery Design

Documents

Transcript of Project Feasibility Pottery Design