Escolar Documentos
Profissional Documentos
Cultura Documentos
By
Jibjung_p_46@hotmail.com
Tekiyong@hotmail.com
Kk_trombone@hotmail.com
Pingpongcha_aw@hotmail.com
Sadudee_7@hotmail.com
Preface
The project was prepared for the future investment planning of the Best Ce Ra
Ceramic Company. In the project, we have analyze the project feasibility and evaluation that
to become the success company in the ceramic business. It includes with the company
background, industry profile analysis, marketing feasibility analysis, technical feasibility
analysis, financial analysis, risk management analysis, and summary of the project’s
feasibility to see all image of Best Ce Ra Ceramic Business.
This project report was presented to investors or people who interested in this
business and would like to invest in this business for taking on loan the money.
Content
Title Page
Preface………………………………………………………………………………….. A
Content…………………………………………………………………………………. B
Exclusive Summary…………………………………………………………………….. C
Chapter 1: Introduction
Project Objectives……………………………………………………………… 2
Benefits of Project……………………………………………………………... 2
Activities/Time Frame………………………………………………………..... 3
Nature of Industry…………………………………………………………………..4
Situation of Industry………………………………………………………………12
Product/Service……………………………………………………………………19
Vision……………………………………………………………………………...20
Mission…………………………………………………………………………….20
Strategy…………………………………………………………………………....20
Corporate Level……………………………………………………....……20
Business Level……………………………………………………………..21
Functional Level………………………………………………...…………21
Market Analysis…………………………………………………………………....23
Title Page
Competition Analysis……………………………………………………....23
Competitor analysis………………………………………………...23
Customer Analysis……………………………………………..…..32
Competitive Analysis…………………………………………...….34
STP Analysis……………………………………………………………………….35
Marketing Expenses………………………………………………………………..57
Conclusion……………………………………………………………………...….61
Location…………………………………………………………………..104
Facility Layout……………………………………………………………106
Company equipments……………………………………………………..110
Logistics Management…………………………………………………....113
Facility Management……………………………………………………...115
Cost of Investment……………………………………………………………..…119
Pre-Operating Cost……………………………………………………….119
Investment cost…………………………………………………………………...119
Content
Title Page
Conclusion………………………………………………………………………....129
Income Statement…………………………………………………………………130
Balance Sheet……………………………………………………………………..136
Cash Flow…………………………………………………………………………142
Payback Period……………………………………………………………………153
Risk Management…………………………………………………………………155
Chapter7: Summary
Referent………………………………………………………………………………….170
Exclusive Summary
Best Ce Ra Ceramic Company limited will plan to start business in January 2011. The
company will be established at Lampang province especially on the famous area, Wiang la
kon road. The company building is bought in three rows of commercial building with
10,500,000 baht, for avoiding cost and competitive problems that Best Ce Ra does not have
the manufactory, but the company has made the order to KK Ceramics Company Limited for
producing the products under the design and the brand of Best Ce Ra design.
Best Ce Ra focus on the ceramic business that designs, creates, and provides the great
and high-quality ceramic products. The company focuses on the gift and decoration and the
teenagers that age between 13-25 years, there are 676,214 teenagers in Lampang and 33,115
teenagers in school around the company. There are three concept designs for the product that
green design, love design, and animals design. Moreover, all products were added the fresh
fragrant that is the main point 100% is not same with any ceramic companies that it is the
point of different from the competitors.
Thailand's ceramic industry had highly supported by the government and it large in
market demand supporting in many local markets and global markets, Thailand registered
ceramic exports of US$ 834 million in 2008, up 17.29%, so the trend of growth is likely
increasing. The company expects to sale in year 1 is 14,679,100 baht, year 2 is 16,787,600
baht, year 3 is 18,452,900 baht, year 4 is 20,920,000 baht, and year 5 is 22,774,800 baht. It
increases continually and constantly.
For the project Best Ce Ra company would like to require a total load at 13,000,000
baht with 12% in interest rate under the date in April 2010. The load will spend to company
all investment activities. The payback period is 8.5 years. Net Present Value is 22,277,780.45
baht that value of return from the investment higher than the investment at the beginning
about 9,277,780.45 baht. And The Internal Rate of Return (IRR) is 34.77%.
Chapter 1
Introduction
In now days, the ceramic products are more important in markets around the world.
Most people in the world took it to their daily lives and cannot live it out, the products that
such as kitchenware (plates, bowls, spoons, etc.), potteries, decoration (dolls, vases, etc.), and
sanitary wares (flush toilet, dish soap, wash basin, etc.) all of these products we often see it
easily in the markets like home marks, department stores, and groceries. In Thailand there are
many ceramic industries and workshops. It is one of tops ceramic exporting in the world
especially northern of Thailand, at Lampang province. There are many ceramic industries,
and it is the most famous area.
This kind of business is more interested and it is large in market demand supporting in
many local markets and global markets, and the trend of growth is likely increasing. So it is
the main reason that let us choose to invest in this business. Best De Ce Ra is not the normal
store that provides only ceramic products that easily looking from general markets like
normal kitchenware, potteries, decoration, and sanitary wares, but Best De Ce Ra is a
wonderful store and ceramics gallery. We focus on creating a new design to ceramic
products. It is likely the ceramics center, we creates a lot of various designs to ceramic
products such as decoration, gifts, appliances, etc. The entire product designs are various,
new in the market. The reason that we selected to focus on the design of products that for
needing to make the own company design styles and making the point of different into the
products that let customers have some best feeling to ceramic, and let some that never favor
in ceramic changing their mind and favor on Best Ce Ra Ceramic designs at the first time
they have seen with the wonderful design and fragrance.
Project Objectives
Benefits of Project
1. Able to apply the knowledge in real ceramic business under the business rapidly
growing.
2. Able to apply the plan for getting high profit/return on investment.
3. The plan is most feasible and high success in real business that able to guide in the
future.
4. To know the methods for making high in sale.
5. Able to plan and manage the business to success.
6. To be a good businessman
7. High ability to apply the knowledge and skills to real business.
8. Able to be the center of ceramic product designs in Thailand.
9. Able to make strong in business brand.
10. Able to get high in experience.
Activities/Time Frame
Ap Ma Ju Au Se Oc No De Ja Fe Ma
Project step: r y n Jul g p t v c n b r
C. Investment resource
4. Building
G. Buy equipment
6. Human resource
H. Recruit designer
I. Recruit worker
7. Production
L. Grand opening
Chapter 2
Industry Profile
Nature of Industry
Definition of ceramic
The word ceramic comes from the Greek word κεραµικός (keramikos) meaning
pottery, which is said to derive from the Indo-European word ker, meaning heat. Ceramic
may be used as an adjective describing a material, product or process; or as a singular noun,
or, more commonly, as a plural noun, ceramics.
For a few centuries, the Khmer turned out ceramics of high quality in large volume,
mostly using kilns located close to the famed Angkor Watt temples and also in parts of
modern-day eastern Thailand. A majority of the old Khmer ceramics was glazed brown,
wood-ash, dark jade green, or olive green, but whites,
yellows, and grays have also been found. The Khmer
made ceramics of just about everything from vases,
jars, and urns to animal-shaped pots and oil lamps,
some also in dual-color glazes. It is generally believed
Khmer ceramics were mostly used for ritual, as art
critics find their character to be heavy and serious.
But as the political winds of Southeast Asia went, so too did the history of ceramics in
the region. When the Khmer Empire began its downfall in the 13th century as the emerging
Siamese sacked Angkor and took major territorial gains, the production of Khmer ceramics
was finished. However, the Siamese (later to be known as the Thais), quickly took the
ceramics torch from the Khmer and made it their own, starting limited production almost
exactly when the Khmer version was finished. In this way, Thai ceramics is much like Thai
architecture and many other facets of Thai culture in that much of it developed from previous
Khmer designs as the two kingdoms experienced opposite fortunes.
When China experienced an internal crisis in the 15th century, it opened the door for
Thai ceramics to take over the Asian market. Now fired
in kilns in the ancient Siamese capital, Sukhothai and
known as Sukhothai ceramics, the old Thai versions
found their way as far as Indonesia and the Philippines.
Huge caches of Sukhothai ceramics have been found on
sunken vessels in the Gulf of Thailand. But once again,
war intervened in ceramic production. As the territorial battles between the Siamese and the
Burmese heated up, production of Sukhothai ceramics slowed and finally ceased by the 16th
century and Chinese ceramics once again took the mantle for Asia. At present time, the old
Sukhothai ceramics are mostly held in private collections, though some can be found in
museums in Bangkok and Sukhothai.
In modern days, Thailand is once again producing some of Asia’s best ceramics,
mainly in centers in the northern part of the Kingdom. Pottery, statues, and ceramic workings
of all kinds have been revived as Thai artisans have rediscovered this ancient art and turned
the attention of their creative juices to its production. Technical breakthroughs in the firing of
ceramics have spawned a rebirth of Thai ceramics. The types, colors, and designs of modern
Thai ceramics are more varied than ever, and have become an increasingly popular art import
to the West as the skilled Thai artisans have learned to fuse the new designs with the ancient
art traditions of their past.
Lampang is one of the most important ceramic producers in the north of Thailand.
Reasons to support this are:
1. It is the main source of white clay in Thailand, with 93% of all white clay coming
from Lampang. This white clay is highly resistant to heat thus producing quality
products.
2. The rate of payment for labor force in Lampang is cheaper than those of larger
cities.
3. Lampang is situated in a good location. It is the bypass to many nearby provinces
and has all forms of transportation.
Ceramics in Lampang was originated when a villager from the Jae-Hom district found
a whetstone which was made from Kaolinite (white clay). After that, three Chinese, Mr. Chin
Simyu, Mr. Ue Siayu, and Mr Kwok Sewkim from Tai-Pu city (famous for producing
dinnerware in China) tried to search for sources of white clay with financial support from Mr.
Tawee Polcharone. Finally, in 1947, they
found the sources at Pang-Ka village,
Amphur Jae-Hom, Lampang between the
26th and 27th Kilometer of Lampang -
Jachom Road.
During 1975-1985, there was an increase in technology in the ceramics industry. This
produced better quality, more colorful and cost-saving strategies. Lampang ceramics became
better known for its blue and white products in international markets.
During 1985 - 1994, the ceramic industry was able to provide more variety in model,
texture of stoneware, earthenware, porcelain, and
production techniques. The industry has become highly
competitive. The Ceramics Group of Lampang searched
for factors that could reduce cost of production and
increase productivity; therefore, new types of kilns were
introduced at local use such as the shuttle kiln, the tunnel kiln, and the fiber insulator kiln.
Today, the ceramic factories in Lampang range from small to large scale. There are
about 30 factories for medium to large scale numbering from 100-600 in labor force per
factory. There are about 120 factories for small scale with 10-80 in labor force per factory.
This generates a cash flow into the province of at least 2,000 million baht per year.
• Conservative style, i.e. : using the jigger method of production and dragon
kilns, which still use wood as an energy source; they produce 5" - 7" local
bowls along with electric insulators and Art Ceramics of which only 7-8
factories remain in operation today.
• LPG kiln: to compete with products from abroad, the LPG kiln is used to
produce gift sets, home decoration sets, dinnerware, ceramic fences, and
handmade products.
• High technology products: using the tunnel kiln, Lampang was able to expand
production capacity to serve the market demand of Europe and America.
These products are tableware, large flower pots, and vases.
Though Lampang has been producing white clay ceramics for only 50 years, it is one
of the most important exports of Thailand and will continue to enhance income and
occupational growth of the local people in the future.
For convenience, ceramic products are usually divided into four sectors; these are
shown below with some examples:
- Refractory, such as kiln linings, gas fire radiant, steel and glass making
crucibles
- White wares, including tableware, wall tiles, pottery products, and sanitary
ware
- Technical, is also known as Engineering, Advanced, Special, and in Japan,
Fine Ceramics. Such items include tiles used in the Space Shuttle program, gas
burner nozzles, ballistic protection, nuclear fuel uranium oxide pellets, bio-
medical implants, jet engine turbine blades, and missile nose cones.
Frequently the raw materials do not include clays.
Different types of ceramics represent the creative ideas of the makers and reflect
variety of functions. Ceramics are also produced in response to the needs of customers. They
will be divided into seven main types on the basis of surface coatings:
1. Monochrome Ware
1.1 Celadon or Green-Glazed Ware. This type is divided into two subtypes
due to different sources of glazes.
- Ware coated with ash glaze. Wares of this type include Lan Na,
Sukhothai, Khmer, and Vietnamese and Burmese ceramics. Most of
the ware are decorated with carved, incised, graffito and impressed
designs before glazing. Glaze slips vary in color and the amount
applied.
- Ware coated with copper glaze. Wares of this type of glaze are called
“opaque green-glazed ware” as illustrated by Burmese ceramics.
2.1 White and Brown-Glazed Ware, as found on Sukhothai ware from the Si
Satchanalai kilns. The ware were first formed, and then incised with a pointed
tool, and the patterns accordingly coated with white and brown glazes.
2.3 Transparent Green and Brown-Glazed Ware, as seen from Khmer and
a number of Lan Na ware such as those produced from the San Kamphaeng, San
Sai, and Wiang Ka Long kiln sites.
This type of decoration is found on Lan Na, Vietnamese, Chinese and Sukhothai
ware. Those found on Thai and Vietnamese ceramics show imitation of Chinese ceramics;
that is, once formed, the potter drew and painted the designs with a pigment derived from
iron oxide, and then dipped the ceramics into the glaze. It is interesting to note that Sukhothai
ware from the Sukhothai-city kilns were painted after the white thick slip had been applied on
the surface of the vessels, to smooth the coarse-textured surface.
Only Burmese ceramics represent this surface finishing. Regarding the finishing
method, the ware, once glazed with opaque white slip, were painted with a glaze derived
from a combination of white and green slip before firing.
This is one of the most commonly found decoration patterns on Chinese and
Vietnamese ceramics. The vessels were painted in underglaze before they were repainted
overglaze in red, yellow, sky blue or green. After the vessels were fired under low
temperature so that the colors could be attached permanently to the surface of the vessels.
However, we note that green, yellow and blue decorations on overglaze enameled ware found
in Thailand are more durable than the red ones. This may be due to the fact that the green,
yellow and blue have more glazes in them.
7. Unglazed Ware.
Forms of ceramics
1. Production Base: for quality and affordable ceramic products that the
company tries to hire the best one factory for order that company can be achieved
economies of scale, and generate the best value appropriate to the production cost and
product quality. The Company has also well diversified production risks by setting up
the production facilities in Lampang province to cover almost all ranges of product
prices and quality standards.
3. Distribution Base: The Company has its own distribution store. This
distribution bases is strategic place in the key regions of Lampang.
The Thai economy in 2009 is forecasted to contract by -3.0 percent per year. This is
attributed to the sharp contraction of the economy in the first half of the year as a result of
gGlobal economic crisis that causes a marked fall inadversely affected export volume of
goods and services. Although the recovery trend of the global economy would haveplay a
positive impactrole onto the export of goods and services in the second half of the year,
export volume of goods and services in 2009 is still forecasted to contract considerably
shrink at a high rate of -14.8 percent per year. Import volume of goods and services, on the
other hand, is forecasted to decline by -22.2 percent per year following, decline in import
demand for export-oriented productions export and contraction in domestic demand spending
subside. In particular, private investment is projected to contract by -13.7 percent per year, as
investors s delay their investment plan decision following lowered the drop in foreign and
domestic purchase orders. Despite the improving tendency of domestic private consumption
as a resulting from higher of better private income following an increase improving in
employment conditions and positive the impact from the Government’s Stimulus Package 1
that helps to supporting income and reducing household expenses, the sharp contraction in
private spending particularly during the first half of the year would cause average private
consumption in the year 2009 to shrink at the rate of -1.0 percent per year.
The major factor that would alleviate the contraction of the Thai economy when
private spending does not yet fully recover is the accelerated disbursement of government
public expenditures in accordance with the target to reach the target. In particular, the timely
quick and effective implementation of the “Strong Thailand 2012Thai Khem Khaeng”
program lan is crucial in has to continually help drive in supporting the Thai economy during
the remaining period of the year. In this connection, public Government consumption growth
in 2009 is projected to accelerate to 6.4 percent per year, while public investment growth is
projected to increase to 5.3 percent per year
1.2 Economic Stability
The Thai economy for 2010 is forecasted to expand at 3.3 percent per year (or within
the range of 2.5 - 4.1 percent per year), with supported by continued the government public
spending under the fiscal deficit framework at 3.5 percent of GDP as the major drive, along
with the public Government investment expenditures under the “Strong Thailand 2012Thai
Khem Khaeng” program. lan. Public investment is thus forecasted to accelerate to 8.2
percent per year (or within the range of 5.2 – 11.3 percent per year), while public
consumption in 2010 is projected to expand at the rate of 4.8 percent per year (or within the
range of 4.0 – 5.7 percent per year.) In addition, the recovery of private expenditures that has
an improving trend from the low base in 2009 would play a support Thailand’s economic
expansioning role. In this connection, private consumption is forecasted to grow at 4.2
percent per year (or within the range of 3.7 – 4.7 percent per year), as household incomes
increase recuperates following the recovered economic revival, coupled with the
employment conditions and work hours that would return tosume the normal level. Private
investment in 2010 is projected to expand from the low base in 2009 to grow at 6.6 percent
per year (or within the range of 2.7 – 9.0 percent per year), partly due toas the public
investment under the “Thai Khem KhaengStrong Thailand 2012” program that lan would
lead to cause the Ccrowdinging-in effect for private investment. Meanwhile, export of goods
and services in 2010 is forecasted to grow at 5.6 percent per year (or within the range of 4.8
– 6.7 percent per year), as the economies of major trading partners recover as well as
improving from s, along with the low base of last year. The growth of import volume of
goods and services is projected to accelerate to 12.4 percent per year (or within the range of
10.6 – 14.2 percent per year), as a result of the recovery of domestic spending and the rise in
export. Export recovery.
Thailand's ceramics industry has made major strides on the global market recently,
while showing significant progress and maturation over its 50-year existence. Thailand's
ceramic industry began with production focused largely on Chinese styled products including
the notorious 'blue and white' kitchenware products as well as other home decoration
products. Early companies were mostly family businesses typified by low investments in
technology and marketing and with little motivation to create new products.
The past ten years have seen winds of change blow through Thailand's ceramic
industry with the entry of a new generation of entrepreneurs eager to capitalize on new
opportunities. 'New blood' in the industry has brought innovative styles of management and
has led to new developments in the country's ceramic industry.
Thailand's ceramic industry is largely centered in the northern region of the country,
particularly in Lampang and Chiang Mai provinces. Both provinces have large deposits of
minerals used in the production of ceramic products including kaoline and feldspar. Due to its
large deposits of kaolinite (white clay) Lampang has emerged as the base for numerous new
ceramics factories, with over 190 factories currently in operation.
Over the past 15 years, Thailand's ceramic industry has focused its development on
product quality, design, marketing, distribution and overall management. Companies have
been investing in high higher technology and concentrating on design, with the result being
innovative products and improved quality standards matching international standards. Local
entrepreneurs have become more export orientated, responding better to the sophisticated
needs of different markets.
Thailand registered ceramic exports of US$ 834 million in 2008, up 17.29%. The
leading markets for Thai ceramic exports are the United States, Japan, Hong Kong, Australia
and the United Kingdom.
Strong rivals exist in the regional ceramic industry from competitors in China, the
Philippines, Indonesia and Malaysia. Although Thailand's ceramics industry is often unable
to compete on price alone, producers have been able to differentiate themselves through the
quality of their products, particularly in product style and design.
Initial efforts by ceramics companies to establish their own international brand names
and comprehensive product lines have proved successful and are being further championed
by the Department of Export Promotion as a way of improving sales and competing in the
global marketplace. In addition, more measures have recently been taken by the ceramics
industry to further promote it to overseas customers including the establishment of a trading
and information network designed to share resources, marketing advice and contacts among
ceramics manufacturers.
The Industrial Promotion Department believes that Thailand's ceramic industry has
the highest potential for expansion and export growth among small to medium enterprise
(SME) industries. Further efforts by Thailand's ceramic producers to improve product quality,
technology and marketing efforts should continue the success of the industry over the next 50
years.
The study of the comparative advantage of the ceramic industry in Thailand had four
objectives. Firstly, to study the structure of ceramic industry in Thailand and Lampang
province in term of the production, the marketing, the international trade and the production
costs. Secondly, to study the policies and measurement of Thai government that supported
the industry in order to analyze and solve the problems. Thirdly, to study the comparative
advantage of the ceramic industry by using Domestic Resource Cost Index (DRC) and
Effective Rate of Protection (ERP) in three categories of the ceramic products namely, bowl,
souvenir and railing ceramic products. The primary data were obtained by surveying the
ceramic factories in Lampang province in A.D. 1997. Finally, study the competition of Thai
ceramic industry, that in major market and the effects of Asian Free Trade Area (AFTA) on
Thai ceramic industry.
The study found that bowl ceramic products of small factory had low quality and most
of them were produced for the domestic consumption while those from medium and large
factories had higher quality and were produced for export in the world market. Souvenir
ceramic products were labor intensive production process which most factories were small
and produced for domestic market. However, some small factories could produce for export.
Production of railing ceramic was depended on constructing conditions. There was excess
supply of this kind of product when the economy condition slowed down. Therefore this kind
of product faced with high degree of competition in term of both prices and quantities.
The government had highly supported and protected the ceramic industry. For
example, collect 80 percents of tax rate on imported ceramic products, support domestic
investment and promoting the ceramic products which received GSP from developed
countries. Those policies made the ceramic industry changes from import-substitute industry
to export industry. Afterwards, government reduced the import tax rate down to 30 percents
in order to make this industry performance more efficient so that it could compete with the
world market.
The research result in Lampang province showed that the industry had many serious
problems such as irresponsibility of labors, low quality of inputs, expensive imported inputs
and complicated export procedures. The solutions for above mentioned problems were labor
training, supporting the production of import-substitute material inputs and improving export
procedures.
The research results show that all products in every size of factories had the ratio of
DRC/SER less than one. It meant that the industry had comparative advantage. The result of
ERP also showed that all products in every size of factories had negative value of ERP in
both Ballasa and Corden concepts. It meant that even the industry do not get any protection
from the government, this industry could export the ceramic products to compete with the
world market. Therefore, these results also confirmed that the ceramic industry had
comparative advantages. The study found that bowl ceramic products had the most
comparative advantages followed by railing and souvenir ceramic products, respectively.
The study of competition of Thai ceramic industry in major markets showed that Thai
bowl ceramic products had higher market share in US market than rival Asian countries but
lower than China and Taiwan. In EU and Japanese markets, Thai bowl ceramic products
could not compete with EU products. Thai souvenir ceramic products had higher market
share in US and Japanese markets more than the rival Asia countries except for china.
Nevertheless, Thai ceramic products exported to EU must be improved their quality. Railing
ceramic products had low value in the total market. However, if this kind of product can
expand to neighbor countries, especially Asian market, Thailand will earn more revenue from
those markets.
The study of the effects of AFTA found that although the value of exported ceramic
to Asian countries was the least as compared to the total export value, the result of tax
reduction would allow Thailand to expand its market share in Asian countries. However as
compared to Indonesia and Malaysia, Thailand still had advantages in term of labor skill,
input materials and technology but disadvantages in term of energy. Therefore, the desired
trade pattern should be concentrate on materials and energy exchange among this three
countries in order to increase competitive ability of Thailand.
The policy implications obtained from this study suggested that the domestic
entrepreneurs should improve their technology to produce high quality of ceramic products
due to the low quality of ceramic products could not compete with cheap products from
China. The small industries should combine to medium and large industries in order to
increase production capacity, in order to have economies of scale and to receive special
privilege from B.O.I. or try to cooperate in term of ceramic association for decreasing
production and marketing costs. Moreover, government should support private sector to find
out new markets for substitution the lost market share in the existing markets.
Product/Service
Best Ce Ra Ceramic Company designs, creates, and provides the great and high-
quality ceramic products. The entire products designs are various and all products add fresh
fragrance.
Products:
There are two categories of products that provided by Best Ce Ra and products using
for that following:
- Decorations
- Gifts
To use for giving to people in any celebrations, special days, or festivals such
as key rings,
Design:
The Green Design style of products are focusing on the natural and
environment, the style that able to let customers feel cheerful and take them into the
natural with fresh feeling.
Love design
Animals design
This style of products is focused on the favorite animals that propagate into
many Best Ce Ra product categories, that able to make customers feel the products in
different between Best Ce Ra and other companies’ products such panda towel ring,
or tiger toilet paper holder.
Vision
Mission
Strategy:
Corporate Level
Best Ce Ra Ceramic Company is a new company, we just run business into the
market, according to many business in market that new business or new companies
are not more famous and the brands that are likely weak, but Best Ce Ra Ceramic
Company is not like those company because there is strong Ceramic industry and
market supporting for our company, The tend that likely increasing in today market,
although there are many ceramic industries and distributors that the market demand is
large and unlimited. So Best Ce Ra Ceramic Company has run the business under the
growth strategy that for setting a one simple organization, it is easily in
decentralization and management. The growth strategy able to get high market shares,
high profit, and customers that tend to increase for this industry. The strategy that
according to below:
Business Level
- Supply chain controlling, using value chain model that will support the
quality of products.
Marketing Strategy
Operation Strategy
Financial Strategy
Market Analysis:
At the primary period of ceramic product that many companies produced the most
products at point of decoration, kitchenware, and sanitary wares, and market that most
famous and tend to increasing and the products that able to sell more in the market. Then
there are many companies in the market increasing and trying to produce the products at
same design, so it affected to customers buying behavior that there are not focus on the brand
of products, but their most focus on the product prices and different design of ceramic that
many companies tried to focus on develop the market strategy and tried to set the products at
low price. Moreover, many new competitors entered to the market. The economy depression,
it did not affect to the demand of products in the market, so the trend of ceramic is not much
decreasing in the market.
Competition Analysis:
Competitor analysis
The direct competitor in the ceramic product is not found at the company area that
this entire area ceramic market share is hold on our hands, if look forward at the whole of
Lampang province that there are many ceramic companies. Overall are not serious problems
for Best Ce Ra because the most companies produce and design the ceramic product at same
style, no more different , and the market they are focus on is likely at outside the local area,
and keep some small and few store in Lampang. Besides, the most of companies do the
marketing as wholesale, so the most customers in the local area can not buy the products as
single unit.
There are 120 ceramic companies that we found in Lampang province, that able to
separate by categories below:
• 10 tile companies
According to the information, there are less in ceramic companies that focused on
producing and designing the products to teenager group of customers especially gift and
decoration type of products. The most of gift and decoration that they are not likely to
distribute in Lampang market, but we have found only one small store were opened in the
area that they are our direct competitors because they penetrate the market as the group
teenagers; there is Jaiko gift shop.
Jaiko gift shop is a new gift shop store in Lampang province. The store was
established at in front of Boonyawat school that near our company about 2 kilometers. They
have use pink ribbon for their store symbol.
The most products of Jaiko gift shop store are school bags, fashion bag, stationery,
and some gift that there is not more unit of each product.
- Different in products.
- Quality of the product is likely high
- Create the customer mind with our own packages and let the customer have brand
loyalty
- Our store is larger than Jaiko
- The products are more attractive teenagers
- We focus on whole Lampang teenagers that market is larger than Jaiko
- We have strong management system and advertising channels
- Our company and shop condition is better than Jaiko
- The product arrangement system is better than Jaiko
The ceramic companies that we have to focus on and try to make the plan for protect
our company are:
Logo
General information K.K. Ceramics Co.,Ltd was name kittiroj Ceramics in the
past. The factory has been established since January 5,
1982. It can be located in the area of about 12,600 square
meters, with an Investment of Baht. 800,000.00 Which has
been registered as ordinary business in the name
of Mr.Chatchai Kittirojana. Lucklly, the support of his
father Mr.Youngruaw Seaten help the factory.
At first the business has only 25 employees and produces
decorative items which are useful such as; Vase, Flower
Pot Piggy Bank, Ashtray, Teapot, Mug and different kinds
of souvenirs.
Mostly as customer’s order from customers they mostly
knew for the past 10 years. And regular customers from
our first factory since 1973. From then on, they became
popular from our old customers and started exporting in
some other countries. And they produce about 25,000 pcs
General information per month. In the year 1986 the factory has been expanded
and Increased investment of 800,000 Baht. To meet
customers demand this is increasing rapidly. They have
added 90 employees Production became 50,000 pcs per
month. Customers are from other countries and local
market.
Logo
Address
382 Lampang-Denchai Rd. Km.1, Prabaht, Muang,
Lampang, Thailand 52000
Logo -
General information Saengchai Ceramics Co., Ltd. was established in1991 with
a capital of 2,000,000 Baht. As a leading manufacturer of
ceramic ware, they pay their intention to do their best in
every piece of work so their product can be guaranteed for
its quality. For years they gain their reliability and
confidence from customer. Satisfaction of customer is
their aim and they hope that their elaborated products will
meet customer desire.
4. Dhanabadee Art Ceramic Company Limited
Logo
Product Decoration
Table ware
General information high quality and superior design and their products are
exported to 72 countries around the world. Moreover
home decoration products for exported. They have finest
design and superb material combine with the skill of
artisans to make the precious gift and souvenir know
as “White Elephant” for support the activities of the Thai
Elephant Conservation Center, Lampang Province,
Blindness school and scholarships for under privileged
students. Thier company ethos is " Sincere - Develop -
Social Compensate "
5. B.P.C Ceramics Company Limited
Logo
Hand-made Vase
Hand-made Tile
General information The employees are very experienced craft people and
produce the highest quality handmade ceramics. Their
products still keep on the tradition of ceramics that has
been presented for centuries in this area. The use of natural
elements earth, wood and clay to create the ceramics
bridges the gap between nature and modern lifestyle. BPC
Ceramic Co, Ltd is located on the outskrits of Khoka
Village in Lampang, Thailand aprroximately two hours
drive from Chiangmai.
Logo
Address 142 M.4 Wangprown, Kokha, Lampang 52130
Table ware
- Create the customer mind with our own packages and let the customer have brand
loyalty.
Customer Analysis:
The Best Ce Ra targeting teenagers around the company area, Lampang province that
we spent one month gathering information about this target group. From talking to the
customers informally, as well as searching the population base especially teenager and
producing a customer questionnaire.
The number of teenagers size of Lampang province in 2009, the age between 13 – 25
years old.
Numbers
Total 33,115
According to the tended of today ceramic market that it is most famous for all
customers around the world and the demand support is high in the market, but the most
products that produce and deign for the large group of customers and focused on the power of
buying at the most of adults that no focusing on teenagers and there is less in the design for
teenager group of customers. At the chance that Best Ce Ra focuses on the need of teenager
market. For teenagers they favor the ceramic product too, but less design in supporting, they
need the ceramic product designs that different from the market and run forward with trended
of modern. The design that they interested in is beautiful looking and the style that likely
famous in teenage concept.
Customer buying behavior
Management discovered that many customers especially in school teenagers that able
to separate for two classes, one is high class such Assumption College Lampang, Phra Cha
Wit Lampang, and Bunyawat School Lampang, the most of them tended to have a high
budget in shopping. The other on is middle class that tended to have a low budget, and were
very price sensitive. But, both of them also were willing to spend considerable amounts on
gifts and decorations especially supported with teenage designs. 35% of them often buy the
product after finish the school and weekend. Furthermore, 65% of them often buy the
products at the special occasions, such as birthday, valentine day, graduation ceremonies,
New Year and etc that they tended to buy the products for gift and give it to their friends. The
motivation of this group is product designs. The product designs able to let this customer
group spend more money in buying products. 89% of the people that have influence to this
group to buying ceramic products are their friends because when they buy the product, they
often buy with friends also that their friends are more at the teenage that it able lead this
group of customers buy more in products.
As a result of the research, the management adapted its marketing strategy and began
to concentrate mainly on designing gifts and decorations for these particular days with the
expectation that increased profits around these times would balance the longer periods where
there was less demand.
Competitive Analysis:
There is no any competitor in the area of Wiang la kon road. All ceramic companies
in Lampang that there are many product that focus on the same design, it mains the most of
their products are not different, and the price that sets at likely the same price, not more
different. Besides, the main of their targets focus on exporting and outside markets. So, the
point of Best Ce Ra company that able to get more advantages and the ability in competitive
is likely higher that the most competitors in the same area. The different designs of the
products are newest, modern, and the products that produced from the own company. Best Ce
Ra has the strong point in competitive ability than stores around this area. However, Best Ce
Ra store and gallery is a new store in this area that should be focus more in product, price,
place, and promotion. In additional Best Ce Ra should be focus on 4Cs together with 4Ps.
STP Analysis:
Market segmentation
The ceramic products in the market have many types that there are Souvenir, gift and
decoration, tableware, sanitary ware, construction product, and tile. Best Ce Ra focus on the
gift and decoration products market segmentation because this type of product demand is
more large in the market, the design that able to create in more, and the products is supported
by many group if customers.
Target market
Best Ce Ra Ceramic focus on the people who is favor on the design of ceramic
products, liked to buy the ceramic products for giving people in some special days,
ceremonies, and festivals. Beside they buy the ceramic products for decorating houses,
workplaces, or cars. Our customers we focus on Lampang people.
The products that are made by ceramic are more famous in using around the world.
Unlimited in separate the buyers or users by gender and age, however the main target market
is focusing on:
Teenagers: The teenagers who has the age between 13-25 years old that looking the
ceramic products for giving people and decorating house and car, and who live in Lampang.
There are 676,214 teenagers in Lampang province and there are 33,115 teenagers in school
around our company. According to teenagers behavior around the area we found that they
spend more time for shopping after school with their friends, and they are looking for some
things new, lovely, and beautiful products. The most of them tend to buy the product at the
middle class to high class.
Positioning
In now days, there are many ceramic products in the market and the products that
likely at the same because the products are easy imitation, so the most of buyers are not
specific in focusing to buy ceramic product under the brand of products or producing from
where, but their focus on product designs. Best Ce Ra try to focus positioning of the products
at the different point of products design that according to several product designs for
attracting them interested in Best Ce Ra. Beside, Best Ce Ra designs and creates the new
products at special period that for hard to imitating product design from competitors.
The different point of products design, we focus to produce the product according to
our own designs that there are three concept designs to our gift and decoration for teenager
group of customers. We try to study about many companies products and create Best Ce Ra
own design, we add the fragrant into the product that is the main point of our products that
100% are not same with any ceramic companies in Lampang province.
At the product prices that we have set at the fairly price, it is not more high or not
more low because we concern about customer value perception. Therefore, we try to make
the point that customer willing to pay and able to buy our product. Moreover, we try to build
the brand value of product in mind of customers.
Marketing Mix Strategy
Product
Best Ce Ra is not the normal store that provides only ceramic products that easily
looking from general markets like normal kitchenware, potteries, decoration, and sanitary
wares, but Best Ce Ra is a wonderful store and ceramics gallery. We focus on new design to
ceramic products. It is likely the ceramics center that provides a lot of various designs to
ceramic products such as decoration and gifts. The entire products designs are various and
different from others.
Price
We use Cost-plus pricing and Psychological pricing to set our tour packages price.
Cost-plus pricing - set the price at the production cost plus a certain profit margin.
Psychological pricing - base the price on factors such as signals of service quality,
GDF00002 155
GDF00003 125
GDF00004 125
Price
Styles Products Code
(Baht per piece)
GDF00006 225
GDF00007 185
GDW00002 255
GDW00003 315
GDW00004 265
GDW00005 255
GDP00002 175
GDP00003 175
GDP00004 185
GDD00002 325
GDD00003 325
GDD00004 355
GDV00002 185
GDV00003 215
GDV00004 185
GDV00005 215
GDG00002 85
GDG00003 55
GDK00002 15
GDK00003 15
Price
Styles Products Code
(Baht per piece)
LDF00002 145
LDF00003 125
LDP00002 185
LDP00003 215
LDD00002 325
LDD00003 225
LDV00002 185
LDV00003 95
LDG00003 105
Price
Styles Products Code
(Baht per piece)
ADF00002 295
ADF00003 295
Glass ADF00001 95
ADF00002 95
ADF00003 95
Place
Promotion
As products move through the four stages of the product lifecycle different
promotional strategies should be employed at these stages to ensure the healthy success and
life of the product.
Introduction
When a product is new our objective will be to inform the target customers of
its entry. Radio, magazine, and handbill may be used to push the product through the
introduction stage of the lifecycle. Push and Pull Strategies will be used at this crucial
stage.
Growth
As the product becomes accepted by the target market Best Ce Ra at this stage
of the lifecycle we work on the strategy of further increasing brand awareness to
encourage loyalty.
Maturity
Decline
As the product reaches the decline stage we will use the strategy of reminding
people of the product to slow the inevitable
Sales Promotion
Best De Cera Ceramic Company has promoted its products through different sales
promotional strategies such as discount, premium, coupon and gift voucher.
Marketing Expenses:
Advertising
Best De Cera Ceramic Company advertises our product through many different ways
and media such as magazine, cutout and leaflet. We also uses direct – response advertising.
This is type of advertising that encourages the consumer to respond either by providing
feedback to the advertiser or placing.
We have advertised the company products to our customer by using the local radio
such FM 99 Mhz and FM 104.5 MHz. we choose to make an advertise on Saturday and
Sunday.
The cost of advertising at FM 99 Mhz and FM 104.5 MHz on Saturday and Sunday
Advertising on handbill
The handbill is for special day such New Year cerebration, valentine day, and the
promotion seasons. Handbill was printed by our company.
1 sheet of paper = 0.50 bath
Hiring worker to distribute handbill a time per one person = 200 bath
Total advertising cost per year = 72,000 + 3,600 + 1,800 = 77,400 bath
Conclusion
Product Characteristics
The products of Best Ce Ra Ceramic are concerned about the design first because we
try to make the point of different from many competitors in market and present a new design
of ceramic into the market under the brand of Best Ce Ra Ceramic Company limited. Best Ce
Ra focus on three styles of design concept, there are green design, love design, and animal
concept design. The entire product designs that we try to fix on the products shapes and
follow the modern trend in nowadays customer favors. Best Ce Ra creates these designs for
two main of products are decorations and gifts. Besides, there is a point that different from
others it is fragrance, all of the products that we have inserts fragrance that like fresh nature
into the products.
Green design
The design that able to let customers feel fresh when they are looking at the first time,
it able brings the feeling as the fresh nature and environment comes around. Besides the
natural fragrance can let customer relax. The design is focusing on the things in the nature
like tree, flower, etc.
GDF00003 125
GDF00004 125
GDF00005 185
GDF00006 225
GDF00007 185
Gift and Price (Baht per
Styles Code Pictures
Decoration piece)
Wall / alarm
Green design GDW00001 265
clock
GDW00002 255
GDW00003 315
GDW00004 265
GDW00005 255
Green design Picture frame GDP00001 195
GDP00003 175
GDP00004 185
GDD00003 325
GDV00002 185
GDV00003 215
GDV00004 185
GDV00005 215
GDG00002 85
GDG00003 55
GDK00002 15
LDF00002 145
LDF00003 125
LDP00003 215
LDD00002 325
LDD00003 225
LDV00002 185
LDV00003 95
LDG00002 125
LDG00003 105
Animal concept design
This design is the main product design of Best Ce Ra Company. It focuses on the
favorite animals of customers follow the modern, lovely, and different from the market.
Animal
Vase ADV00001 295
design
Animal
Flowerpot ADF00001 295
design
ADF00002 295
ADF00003 295
Animal
Glass ADF00001 95
design
Animal
Glass ADF00002 95
design
ADF00003 95
Best Ce Ra Ceramic Company does not have own manufactory for producing the
products because it is high investment that we have focus to make the order to the
manufactory for hiring them produce the products following the designs of Best Ce Ra design
and stamp under the brand of Best Ce Ra Ceramic company.
Best Ce Ra focus on the product production process by customer orders and design
the product for customers if any.
Factory Company that we order for the product
At first the business has only 25 employees and produces decorative items which are
useful such as; Vase, Flower Pot Piggy Bank, Ashtray, Teapot, Mug and different kinds of
souvenlrs.
In the year 1986 the factory has been expanded and Increased investment of
800,000 Baht .To meet customers demand which is increasing rapidly. They have added 90
employees Production became 50,000 pieces per month. Customers are from other countries
and local market.
The year 1989 there was again an expansion of another building with an investment of
2 million and production had increased
65,000 pieces per month. In the early
year of 1989 K.K company has been
selected as a member of Department, of
Export and Promotion Ministry of
Commerce Royal Thai Government
which help them a lot.
To gain more customers and export directly until 1991 the factory became a company
and name: K.K. Ceramics Co., Ltd. had increased the investment for the third time to 7
million and employees to 120 persons.
The original machine can produce to 100,000 pieces per months. Presently employees
are approximately 125 skillful persons. Export increase to 80% and local market about 20%
Production capacity reach 120,000 pieces per month. Thereafter K.K Company expanded
our export to U.S.A., German, Switzerland, England, Holland, Sweden, Belgium, Australia,
Hungary and Italy in Asia, Japan, Malaysia and Singapore.
Until presently we received an approval of Exclusive Exporters under Thailand’s Brand
in the year 1999 which has the right to export product with highest standard quality.
Quality and Trophy
Company Address:
Company Map:
The product order process:
The productions process from the manufactory that hiring by Best Ce Ra Company
for producing the order.
There are five steps in the production process for the manufactory:
1. Raw materials: For example sand, feldspars, ball clay (China clay), kaolin and water.
2. Ball mill: To mix and mill all raw Materials until becomes small particle size.
3. Agitator: To agitate small particle size and water before sieving and magneting
- Slip casting: Besides slip casting stations. The companies have solid casting
stations which are productive and good quality.
4. Filter press: The clay body and water will be filtered and separated by pressing
becomes “filter cakes”
5. Pug mil: The companies have de-airing pug mills which are able to separate air and
extrude clay body for a formation.
- Rampress: A rampress is a quite productive to produce free form and detail
ceramics with high quality.
- Roller head: Roller heads are useful for high quality. It is controllable and easy
used.
6. Bisque firing: Bisque firing temperature range 800-850 centigrade and use natural gas
or fuel.
7. Underglaze: Underglaze colors are numerous.
8. Glazing: Glaze is qualitative and controllable. Most are transparent glazes.
9. Glaze firing: Glaze firing temperature is 1180C. That’s why the products are qualified
to be used in dishwasher and microwave.
10. Quality control: The Company needs to have QC every production line. For this QC
must carefully check and separate only very good products to ship to customer.
11. Packaging: To wrapped and boxed the product to sales.
12. Shipping: To ship products to customers always on time and with good packing.
Green
100 90 80 70 50
design
Love
95 85 75 65 45
design
Animal
115 105 95 85 65
design
Rate of producing ceramic product increase 5%
Less than
251-500 501-750 751-1000 More than 1000
250 pieces
Product pieces (Baht pieces (Baht pieces (Baht pieces (Baht
(Baht per
per piece) per piece) per piece) per piece)
piece)
Green
105 94.5 84 73.5 52.5
design
Love
100 89 79 68 47
design
Animal
120.75 110 99.75 89 68
design
Less than
251-500 501-750 751-1000 More than 1000
250 pieces
Product pieces (Baht pieces (Baht pieces (Baht pieces (Baht
(Baht per
per piece) per piece) per piece) per piece)
piece)
Green
110 99 88 77 55
design
Love
105 94 83 72 50
design
Animal
126.5 115.5 104.5 94 72
design
Our Packaging
We choose Asia Paper Bag Company to produce the bag and boxed for our company.
Asia Paper Bag Company is one of the leading manufacturers and exporters of paper
bags and boxes in South East Asia. Established in 1968, Asia Paper Bag Company produces
over 5 million bags per month. In addition to supplying all over Thailand, Asia Paper Bag
Company exports more than 30 countries around the world.
Asia Paper Bag Company care about the Environment therefore they use recycled
materials for high quality products. With their modern offset printing technology they are
capable of printing up to 5 colors / 2 sides.
Folding is by to machine or hand allowing them to produce bags of any size or style.
Handle styles include paper twisted, cotton and nylon rope.
They are the selected list of Department of Export Promotion, Ministry of commerce.
So we will choose Asia Paper Bag Company to produces quality bags and boxes of all kinds
at competitive prices.
Company Address:
Company map:
Best Ce Ra Bag
Color available Black, Light Brown, Dark Blue, Burgundy, Orange, Light Green, Red, Cream
We choose crocodile skin-design bag of Asia Paper Bag Company. The bag size that
we choose is 44x15x38 cm. We choose light brown color, 4 colors printing, and uncoated
texture with PP rope handle and screen our logo on every bag to show unique of our company
to our customers. The prices of bag follow the table below:
Box
We choose 3 size of box that is 15x10x15 cm, 25x25x20 cm and 40x35x40 cm. All of
boxes are white duplex board 350 grams, 2 colors printing, glossy lamination and screen our
logo on every box to show unique of our company to our customers. The prices of box follow
the table below:
\
Year 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
No. of Bag 28,400 - - 21,900 - - 16,400 - - 22,000 - - 88,700
Baht per piece 10.00 - - 10.00 - - 10.00 - - 10.00 - -
Cost of Bag 284,000.00 - - 219,000.00 - - 164,000.00 - - 220,000.00 - - 887,000.00
The location is important for Best Ce Ra Ceramic Company; it is the place that able to
let the company gains maximum profit. We point to establish the company at the one location
in Lampang province the place is famous and there are many school around this area. It is
near the most famous market Aut Swin and hotel in Lampang. According to the number of
population in Lampang there are 817,390 people that we focus on our main target is the
group of teenagers there are 674,682 people. At the company area the Wiang la kon road
there is one commercial building that we buy 3 rows our company office. At the area that
there are not any ceramic companies or any stores that will be our competitors because there
are many clothes shops. With the ceramic products that the most of teenagers are favor and
like to walk around the area after school every day, so this location is the golden place for
establish the company, gain the profit and catch the market.
Commercial building
Facility Layout
Store
Living area
8M
Product
Showing
Cashier
12 M
Second floor
Marketing
room
Living room
8M
Purchases
room
12 M
Last floor
Finance
Sale
Acc
Office
Chair man
Meeting
Office
room
Company equipments
NSB officer
Counter
Adviser desk
Casher
Telephone
Computer
Security camera
- FUJIKO DVR RJ series Better resolution and Saving data storage FK-RJ2608-
08SET image together with sound with Pocket Pc and mobile (IE Browser/CMS)
including taxes
- Price 47,000 baht
Printer
- BROTHER FAX-817
- Price 3,790 baht
9.6K bps modem, approximately 15 sec*
512KB Memory
Up to 4 numbers of one-touch dials
Up to 60 speed dials - Up to 4 group dials
Up to 64 broadcasting locations
Memory Security
Caller ID - Up to 20 pages* of memory transmission
Up to 25 pages* of out-of-paper reception
Up to 30-Sheet Paper Capacity
Up to 10-page Automatic Feeder
Air Condition
Logistics Management
Our company concern more about logistics management because this is the one
process that able to let the company reduces cost, increase in sale, and gain profit rapidly.
Order management
We focus on the beginning of the order process that we try to make the right order
information from customers and make the order system available and the company design the
best product and make the order to manufactory for producing the products.
Packaging
We try to design Best Ce Ra own package and make the order to manufactory that for
make the value of the products and make the point of different from others.
Transportations
Communication system
We make the order for producing product and package on two methods, one is on the
internet and one is on phone.
Transportation system
Customers order to us to buying in whole that they come to get the product by
themselves because we have other promotion in reduce price for them, so no need to ship the
product to them.
The most of Best Ce Ra Ceramic products are made buy customer orders and sell in
unit that there are not more inventories in Best Ce Ra store because after the products was
finish from manufactory that we will deliver to customer rapidly that for reducing the damage
in inventory. As some products that we have kept in the store are for showing in the gallery
and sell in the company for some customers like teenagers
walk into the shop and sell the product as the single unit.
We provide the good company environmental for all people in the organization health
and safety like Building Cleanliness system and Waste Removal system.
Power Systems
We provide two power systems for our company that one is Normal power system
and other one is Emergency power systems.
Building Systems
We focus to make the company building have the best one security system that for
protection and security.
Life/Safety Systems
For providing Life and Safety Systems we have set the Sprinkler systems, Smoke/fire
detection systems, Fire Extinguishers, Signage, and Evacuation Plans for emergency use.
Rate of water Tariffs will calculate amount of using water of each person, that record
by water meter multiply current water rate the result won’t less than Water tariffs minimum
rate in each type. The invoice will compose using water, general service, value add taxes, rate
depend on government specify.
Price of water Tariffs = [amount of using water + service fee] + value add taxes
Type of user
Energy charge
2.2 (Time of Use Rate : TOU) (Baht/Unit) Service fee
(Baht/Month)
Peak Off Peak
Calculate Electricity
X = Energy charge + Energy charge Adjustment charge +VAT
Estimate for use electricity 22-33 K.W. pressure
Energy charge = 1,500 units × 2.4649 = 3,697
Energy charge adjustment charge = 1,500 × 0.6452 = 967.8
VAT 7% = (3,697 + 967.8) × 7/100 = 326.536
Total 3,697 + 967.8 + 326.536 = 4,991.336 Baht
Employee Salary
Chairman 30,000
Secretary 7,000
HR Manager 10,000
Security 4,500
Financial 7,000
Cashier 6,500
Internet
True Internet: Hi-Speed 8 Mbps. + Wifi 2 Mbps. 1,199 baht/month
Telephone price
TOT: free 500 baht long 3 month. Estimate for use telephone and about 3,000 baht
Cost of Investment
10,934,499
Investment cost
Security 47,000 783 783 783 783 783 783 783 783 783 783 783 783 9,396 9,396
Air Condition 346,800 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 69,360 69,360
Computer 235,000 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 78,336 78,336
Telephone 10,680 297 297 297 297 297 297 297 297 297 297 297 297 3,564 3,564
Printer 7,480 208 208 208 208 208 208 208 208 208 208 208 208 2,496 2,496
Furniture 129,628 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 43,212 43,212
Fax Machine 7,580 211 211 211 211 211 211 211 211 211 211 211 211 2,532 2,532
Cashier equipment set 23,300 647 647 647 647 647 647 647 647 647 647 647 647 7,764 7,764
Vinyl front lit
7,200 200 200 200 200 200 200 200 200 200 200 200 200 2,400 2,400
Total 5,746,668 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 465,660 465,660
Depreciation Year 2
Total
Investment Amount 1 2 3 4 5 6 7 8 9 10 11 12 Total amount
Commercial building and 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550
land 4,932,000 20,550 246,600 493,200
Security 47,000 783 783 783 783 783 783 783 783 783 783 783 783 9,396 18,792
Air Condition 346,800 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 69,360 138,720
Computer 235,000 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 78,336 156,672
Telephone 10,680 297 297 297 297 297 297 297 297 297 297 297 297 3,564 7,128
Printer 7,480 208 208 208 208 208 208 208 208 208 208 208 208 2,496 4,992
Furniture 129,628 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 43,212 86,424
Fax Machine 7,580 211 211 211 211 211 211 211 211 211 211 211 211 2,532 5,064
Cashier equipment set 23,300 647 647 647 647 647 647 647 647 647 647 647 647 7,764 15,528
Vinyl front lit
7,200 200 200 200 200 200 200 200 200 200 200 200 200 2,400 4,800
Total 5,746,668 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 465,660 931,320
Depreciation Year 3
Total
Investment Amount 1 2 3 4 5 6 7 8 9 10 11 12 Total amount
Commercial building 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550
and land 4,932,000 20,550 246,600 739,800
Security 47,000 783 783 783 783 783 783 783 783 783 783 783 783 9,396 28,188
Air Condition 346,800 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 69,360 208,080
Computer 235,000 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 6,528 78,336 235,008
Telephone 10,680 297 297 297 297 297 297 297 297 297 297 297 297 3,564 10,692
Printer 7,480 208 208 208 208 208 208 208 208 208 208 208 208 2,496 7,488
Furniture 129,628 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 3,601 43,212 129,636
Fax Machine 7,580 211 211 211 211 211 211 211 211 211 211 211 211 2,532 7,596
Cashier equipment set 23,300 647 647 647 647 647 647 647 647 647 647 647 647 7,764 23,292
Vinyl front lit
7,200 200 200 200 200 200 200 200 200 200 200 200 200 2,400 7,200
Total 5,746,668 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 465,660 1,396,980
Depreciation Year 4
Total
Investment Amount 1 2 3 4 5 6 7 8 9 10 11 12 Total amount
Commercial building 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550 20,550
and land 4,932,000 20,550 246,600 986,400
Security 47,000 783 783 783 783 783 783 783 783 783 783 783 783 9,396 37,584
Air Condition 346,800 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 69,360 277,440
Telephone 10,680 - 0 0 0 0 0 0 0 0 0 0 0 0 0
Printer 7,480 - 0 0 0 0 0 0 0 0 0 0 0 0 0
Furniture 129,628 - 0 0 0 0 0 0 0 0 0 0 0 0 0
Security 47,000 783 783 783 783 783 783 783 783 783 783 783 783 9,396 46,980
Air Condition 346,800 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 5,780 69,360 346,800
Computer 235,000 - 0 0 0 0 0 0 0 0 0 0 0 0 0
Telephone 10,680 - 0 0 0 0 0 0 0 0 0 0 0 0 0
Printer 7,480 - 0 0 0 0 0 0 0 0 0 0 0 0 0
Furniture 129,628 - 0 0 0 0 0 0 0 0 0 0 0 0 0
Description 1 2 3 4 5 6 7 8 9 10 11 12 Total
Salary 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 1,806,000
Internet cost 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 14,388
Stationary 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 19,800
Water price 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 11,454
Electronic price 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 59,896
Total 452,645 162,295 162,295 475,135 162,295 162,295 455,855 162,295 162,295 550,035 162,295 162,295 3,232,028
Organization expense year 2
Description 1 2 3 4 5 6 7 8 9 10 11 12 Total
Salary 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 1,806,000
Telephone
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
and Fax cost
Internet cost 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 14,388
Stationary 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 19,800
Water price 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 11,454
Electronic
4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 59,896
price
Box and
Paper bag 527,960 - - 440,650 - - 358,240 - - 459,600 - - 1,786,450
cost
Total 690,255 162,295 162,295 602,945 162,295 162,295 520,535 162,295 162,295 621,895 162,295 162,295 3,733,988
Organization expense year 3
Description 1 2 3 4 5 6 7 8 9 10 11 12 Total
Salary 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 1,806,000
Telephone
and Fax cost 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Internet cost 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 14,388
Stationary 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 19,800
Water price 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 11,454
Electronic
price 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 59,896
Box and
Paper bag
cost 689,520 - - 524,410 - - 435,100 - - 561,050 - - 2,210,080
Total 851,815 162,295 162,295 686,705 162,295 162,295 597,395 162,295 162,295 723,345 162,295 162,295 4,157,618
Organization expense year 4
Description 1 2 3 4 5 6 7 8 9 10 11 12 Total
Salary 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 1,806,000
Internet cost 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 14,388
Stationary 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 19,800
Water price 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 11,454
Electronic price 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 59,896
Total 907,065 162,295 162,295 734,685 162,295 162,295 677,545 162,295 162,295 785,515 162,295 162,295 4,403,168
Organization expense year 5
Description 1 2 3 4 5 6 7 8 9 10 11 12 Total
Salary 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 150,500 1,806,000
Telephone and
Fax cost 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Internet cost 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 14,388
Stationary 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 19,800
Water price 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 954.48 11,454
Electronic price 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 4,991.34 59,896
Total 993,255 162,295 162,295 803,195 162,295 162,295 709,605 162,295 162,295 814,245 162,295 162,295 4,618,658
Conclusion
The products of Best Ce Ra Ceramic are concerned about the design first because we
try to make the point of different from many competitors in market and present a new design
of ceramic into the market under the brand of Best Ce Ra Ceramic Company limited. Best Ce
Ra focus on three styles of design concept, there are green design, love design, and animal
concept design. The entire product designs that we try to fix on the products shapes and
follow the modern trend in nowadays customer favors. Best Ce Ra creates these designs for
two main of products are decorations and gifts. Besides, there is a point that different from
others it is fragrance, all of the products that we have inserts fragrance that like fresh nature
into the products.
We choose K.K. Ceramics Company to produce for our product and Asia Paper Bag
Company to produce the bag and boxed. From study about production and operation of Best
Ce Ra business we foresee to build this business because of we have ready staff that right job,
right time and right people.
Chapter 5
Financial Analysis
Income Statement
For income statement, we consider from previous data of market average to use as
basic information to estimate income and expense that we will receive in each year. We are
estimate about 5 years by we use financial assumption and other financial policy and we can
see the net income of our company increasing in every year in the chart especially in year 3-4
we get net income from 8,501,179 baht or 65% from cost of investment.
In the graph, we can sell a lot of ceramics product in January, February, November
and December because these months have special day. For example, In December and
January have New Year day, in February has Valentine day. It makes net profits of in
January, February, November and December are higher than other months. In April, July and
October has less income because these months are low season and we have more expense. It
will make net profit in April, July and October are less than others months.
Best Cera Ceramic Company Limited
Income Statement
First Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
Sales 1,143,300 1,238,300 955,600 1,127,400 857,400 1,048,000 1,112,800 1,440,800 1,285,900 1,134,500 1,386,200 1,948,900 14,679,100
Net sales 1,143,300 1,238,300 955,600 1,127,400 857,400 1,048,000 1,112,800 1,440,800 1,285,900 1,134,500 1,386,200 1,948,900 14,679,100
Cost of Goods Sold 322,500 344,000 270,500 321,500 259,500 294,500 299,500 383,000 347,500 306,500 377,000 527,500 4,053,500
Gross Profit 820,800 894,300 685,100 805,900 597,900 753,500 813,300 1,057,800 938,400 828,000 1,009,200 1,421,400 10,625,600
Expenses
Organization Expense 452,645 162,295 162,295 475,135 162,295 162,295 455,855 162,295 162,295 550,035 162,295 162,295 3,232,028
Depreciation 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 465,660
Marketing expenses 6,150 7,050 6,150 6,150 7,050 6,150 6,150 7,050 6,150 6,150 6,150 7,050 77,400
Total Operating Expenses 497,600 208,150 207,250 520,090 208,150 207,250 500,810 208,150 207,250 594,990 207,250 208,150 3,775,088
Operating Income 323,200 686,150 477,850 285,810 389,750 546,250 312,490 849,650 731,150 233,010 801,950 1,213,250 6,850,512
(Less interest expense) 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 1,560,000
Income Before Taxes 193,200 556,150 347,850 155,810 259,750 416,250 182,490 719,650 601,150 103,010 671,950 1,083,250 5,290,512
(Less income tax expense) 28,980 83,423 52,178 23,372 38,963 62,438 27,374 107,948 90,173 15,452 100,793 162,488 793,577
Net Income 164,220 472,728 295,673 132,439 220,788 353,813 155,117 611,703 510,978 87,559 571,158 920,763 4,496,935
Retained earnings 164,220 636,948 932,620 1,065,059 1,285,846 1,639,659 1,794,775 2,406,478 2,917,455 3,005,014 3,576,171 4,496,934
Best Cera Ceramic Company Limited
Income Statement
Second Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
Sales 2,064,300 1,919,800 1,382,200 1,577,000 1,382,200 1,191,900 982,800 1,098,200 1,021,700 964,000 1,344,600 1,858,900 16,787,600
Net sales 2,064,300 1,919,800 1,382,200 1,577,000 1,382,200 1,191,900 982,800 1,098,200 1,021,700 964,000 1,344,600 1,858,900 16,787,600
Cost of Goods Sold 559,500 515,500 374,500 429,500 374,500 322,500 265,500 297,500 276,500 260,500 364,500 505,000 4,545,500
Gross Profit 1,504,800 1,404,300 1,007,700 1,147,500 1,007,700 869,400 717,300 800,700 745,200 703,500 980,100 1,353,900 12,242,100
Expenses
Organization Expense 690,255 162,295 162,295 602,945 162,295 162,295 520,535 162,295 162,295 621,895 162,295 162,295 3,733,988
Depreciation 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 465,660
Marketing expenses 6,150 7,050 6,150 6,150 7,050 6,150 6,150 7,050 6,150 6,150 6,150 7,050 77,400
Total Operating Expenses 735,210 208,150 207,250 647,900 208,150 207,250 565,490 208,150 207,250 666,850 207,250 208,150 4,277,048
Operating Income 769,590 1,196,150 800,450 499,600 799,550 662,150 151,810 592,550 537,950 36,650 772,850 1,145,750 7,965,052
(Less interest expense) 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 1,560,000
Income Before Taxes 639,590 1,066,150 670,450 369,600 669,550 532,150 21,810 462,550 407,950 - 93,350 642,850 1,015,750 6,405,052
(Less income tax expense) 95,939 159,923 100,568 55,440 100,433 79,823 3,272 69,383 61,193 14,003 96,428 152,363 960,758
Net Income 543,652 906,228 569,883 314,160 569,118 452,328 18,539 393,168 346,758 - 107,353 546,423 863,388 5,444,294
Retained earnings beginning of the months 3,576,171 4,119,823 5,026,050 5,595,933 5,910,093 6,479,210 6,931,538 6,950,076 7,343,244 7,690,001 7,582,648 8,129,071
Retained earnings 4,119,823 5,026,050 5,595,933 5,910,093 6,479,210 6,931,538 6,950,076 7,343,244 7,690,001 7,582,648 8,129,071 8,992,458
Best Cera Ceramic Company Limited
Income Statement
Third Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
Sales 2,275,000 2,112,500 1,518,000 1,675,200 1,439,400 1,229,500 1,075,200 1,340,700 1,168,400 1,035,000 1,413,500 2,170,500 18,452,900
Net sales 2,275,000 2,112,500 1,518,000 1,675,200 1,439,400 1,229,500 1,075,200 1,340,700 1,168,400 1,035,000 1,413,500 2,170,500 18,452,900
Cost of Goods Sold 617,500 569,000 412,500 457,500 390,000 332,500 289,500 361,500 314,000 277,500 380,000 585,000 4,986,500
Gross Profit 1,657,500 1,543,500 1,105,500 1,217,700 1,049,400 897,000 785,700 979,200 854,400 757,500 1,033,500 1,585,500 13,466,400
Expenses
Organization Expense 851,815 162,295 162,295 686,705 162,295 162,295 597,395 162,295 162,295 723,345 162,295 162,295 4,157,620
Depreciation 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 465,660
Marketing expenses 6,150 7,050 6,150 6,150 7,050 6,150 6,150 7,050 6,150 6,150 6,150 7,050 77,400
Total Operating Expenses 896,770 208,150 207,250 731,660 208,150 207,250 642,350 208,150 207,250 768,300 207,250 208,150 4,700,680
Operating Income 760,730 1,335,350 898,250 486,040 841,250 689,750 143,350 771,050 647,150 - 10,800 826,250 1,377,350 8,765,720
(Less interest expense) 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 1,560,000
Income Before Taxes 630,730 1,205,350 768,250 356,040 711,250 559,750 13,350 641,050 517,150 - 140,800 696,250 1,247,350 7,205,720
(Less income tax expense) 94,610 180,803 115,238 53,406 106,688 83,963 2,003 96,158 77,573 21,120 104,438 187,103 1,080,858
Net Income 536,121 1,024,548 653,013 302,634 604,563 475,788 11,348 544,893 439,578 - 161,920 591,813 1,060,248 6,124,862
Retained earnings beginning of the months 8,992,458 9,528,579 10,553,126 11,206,139 11,508,773 12,113,335 12,589,123 12,600,470 13,145,363 13,584,940 13,423,020 14,014,833
Retained earnings 9,528,579 10,553,126 11,206,139 11,508,773 12,113,335 12,589,123 12,600,470 13,145,363 13,584,940 13,423,020 14,014,833 15,075,080
Best Cera Ceramic Company Limited
Income Statement
Fourth Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
Sales 2,459,000 2,202,500 1,706,200 1,821,600 1,613,800 1,480,400 1,329,800 1,559,800 1,390,400 1,296,700 1,615,400 2,444,400 20,920,000
Net sales 2,459,000 2,202,500 1,706,200 1,821,600 1,613,800 1,480,400 1,329,800 1,559,800 1,390,400 1,296,700 1,615,400 2,444,400 20,920,000
Cost of Goods Sold 665,000 591,500 463,000 495,000 439,000 402,500 362,000 425,500 380,000 355,000 440,000 663,000 5,681,500
Gross Profit 1,794,000 1,611,000 1,243,200 1,326,600 1,174,800 1,077,900 967,800 1,134,300 1,010,400 941,700 1,175,400 1,781,400 15,238,500
Expenses
Organization Expense 907,065 162,295 162,295 734,685 162,295 162,295 677,545 162,295 162,295 785,515 162,295 162,295 4,403,168
Depreciation 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 325,356
Marketing expenses 6,150 7,050 6,150 6,150 7,050 6,150 6,150 7,050 6,150 6,150 6,150 7,050 77,400
Total Operating Expenses 940,328 196,458 195,558 767,948 196,458 195,558 710,808 196,458 195,558 818,778 195,558 196,458 4,805,924
Operating Income 853,672 1,414,542 1,047,642 558,652 978,342 882,342 256,992 937,842 814,842 122,922 979,842 1,584,942 10,432,576
(Less interest expense) 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 1,560,000
Income Before Taxes 723,672 1,284,542 917,642 428,652 848,342 752,342 126,992 807,842 684,842 - 7,078 849,842 1,454,942 8,872,576
(Less income tax expense) 108,551 192,681 137,646 64,298 127,251 112,851 19,049 121,176 102,726 1,062 127,476 218,241 1,330,886
Net Income 615,121 1,091,861 779,996 364,354 721,091 639,491 107,943 686,666 582,116 - 8,140 722,366 1,236,701 7,541,690
Retained earnings beginning of the months 1,060,248 1,675,369 2,767,229 3,547,225 3,911,579 4,632,670 5,272,161 5,380,104 6,066,770 6,648,885 6,640,745 7,363,111
Retained earnings 1,675,369 2,767,229 3,547,225 3,911,579 4,632,670 5,272,161 5,380,104 6,066,770 6,648,885 6,640,745 7,363,111 8,599,812
est Cera Ceramic Company Limited
Income Statement
Fifth Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
Sales 2,655,900 2,549,000 1,921,600 2,037,000 1,822,100 1,649,800 1,461,600 1,595,800 1,480,400 1,350,700 1,687,400 2,563,500 22,774,800
Net sales 2,655,900 2,549,000 1,921,600 2,037,000 1,822,100 1,649,800 1,461,600 1,595,800 1,480,400 1,350,700 1,687,400 2,563,500 22,774,800
Cost of Goods Sold 721,500 687,500 524,500 556,500 495,500 448,000 397,500 434,500 402,500 368,500 458,000 697,500 6,192,000
Gross Profit 1,934,400 1,861,500 1,397,100 1,480,500 1,326,600 1,201,800 1,064,100 1,161,300 1,077,900 982,200 1,229,400 1,866,000 16,582,800
Expenses
Organization Expense 993,255 162,295 162,295 803,195 162,295 162,295 709,605 162,295 162,295 814,245 162,295 162,295 4,618,660
Depreciation 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 27,113 325,356
Marketing expenses 6,150 7,050 6,150 6,150 7,050 6,150 6,150 7,050 6,150 6,150 6,150 7,050 77,400
Total Operating Expenses 1,026,518 196,458 195,558 836,458 196,458 195,558 742,868 196,458 195,558 847,508 195,558 196,458 5,021,416
Operating Income 907,882 1,665,042 1,201,542 644,042 1,130,142 1,006,242 321,232 964,842 882,342 134,692 1,033,842 1,669,542 11,561,384
(Less interest expense) 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 1,560,000
Income Before Taxes 777,882 1,535,042 1,071,542 514,042 1,000,142 876,242 191,232 834,842 752,342 4,692 903,842 1,539,542 10,001,384
(Less income tax expense) 116,682 230,256 160,731 77,106 150,021 131,436 28,685 125,226 112,851 704 135,576 230,931 1,500,208
Net Income 661,200 1,304,786 910,811 436,936 850,121 744,806 162,547 709,616 639,491 3,988 768,266 1,308,611 8,501,176
Retained earnings beginning of the months 1,236,701 1,897,900 3,202,686 4,113,497 4,550,433 5,400,553 6,145,359 6,307,906 7,017,522 7,657,013 7,661,001 8,429,266
Retained earnings 1,897,900 3,202,686 4,113,497 4,550,433 5,400,553 6,145,359 6,307,906 7,017,522 7,657,013 7,661,001 8,429,266 9,737,877
Balance Sheet
In balance sheet part include the data of asset, debt share and owner in period year
end that how much it is. The balance sheet takes the data cash flow income statement to
calculation. In the line of balance sheet this graph shows the value of equity that will increase
in every year and liabilities of our company will steadily which in five year.
Best Cera Ceramic Company Limited
Balance Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets
Current assets
Cash 995,063 1,337,250 1,503,282 1,193,240 1,283,487 1,507,659 1,239,575 1,720,737 2,102,074 1,672,252 2,113,769 2,903,991
Other current assets 613,190 1,106,681 1,028,021 1,278,462 1,512,942 1,799,083 1,988,523 2,656,224 2,667,364 2,686,605 3,385,185 3,927,026
Total current assets 1,608,253 2,443,931 2,531,303 2,471,702 2,796,429 3,306,742 3,228,098 4,376,961 4,769,438 4,358,857 5,498,954 6,831,017
Fix assets
Equipment 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668
Building and land 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499
Total Fix asset 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167
Total assets 13,357,420 14,193,098 14,280,470 14,220,869 14,545,596 15,055,909 14,977,265 16,126,128 16,518,605 16,108,024 17,248,121 18,580,184
Liabilities
Current liabilities
Taxes payable 193,200 556,150 347,850 155,810 259,750 416,250 182,490 719,650 601,150 103,010 671,950 1,083,250
Total current liabilities 193,200 556,150 347,850 155,810 259,750 416,250 182,490 719,650 601,150 103,010 671,950 1,083,250
Long term debt 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000
Total non current liabilities 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000
Total liabilities 13,193,200 13,556,150 13,347,850 13,155,810 13,259,750 13,416,250 13,182,490 13,719,650 13,601,150 13,103,010 13,671,950 14,083,250
Equity
Retained earnings 164,220 636,948 932,620 1,065,059 1,285,846 1,639,659 1,794,775 2,406,478 2,917,455 3,005,014 3,576,171 4,496,934
Total equity 164,220 636,948 932,620 1,065,059 1,285,846 1,639,659 1,794,775 2,406,478 2,917,455 3,005,014 3,576,171 4,496,934
Total liabilities and equity 13,357,420 14,193,098 14,280,470 14,220,869 14,545,596 15,055,909 14,977,265 16,126,128 16,518,605 16,108,024 17,248,121 18,580,184
Best Cera Ceramic Company Limited
Balance Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets
Curent assets
Cash 2,790,042 3,565,729 4,005,971 3,749,841 4,188,418 4,511,105 4,041,763 4,304,390 4,521,507 3,824,914 4,241,696 4,974,543
Other Curent assets 2,676,553 2,871,077 2,941,363 3,466,525 3,642,058 3,751,089 4,162,418 4,359,070 4,480,520 5,022,570 5,262,641 5,449,117
Total current assets 5,466,595 6,436,806 6,947,334 7,216,366 7,830,476 8,262,194 8,204,181 8,663,460 9,002,027 8,847,484 9,504,337 10,423,660
Fix assets
Equipment 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668
Building and land 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499
Total Fix asset 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167
Total assets 17,215,762 18,185,973 18,696,501 18,965,533 19,579,643 20,011,361 19,953,348 20,412,627 20,751,194 20,596,651 21,253,504 22,172,827
Liabilities
Current liabilities
Taxes payable 95,939 159,923 100,568 55,440 100,433 79,823 3,272 69,383 61,193 -14,003 96,428 152,363
Total current liabilities 95,939 159,923 100,568 55,440 100,433 79,823 3,272 69,383 61,193 -14,003 96,428 152,363
Total liabilities 13,095,939 13,159,923 13,100,568 13,055,440 13,100,433 13,079,823 13,003,272 13,069,383 13,061,193 12,985,997 13,096,428 13,152,363
Equity
Retained earnings 4,119,823 5,026,050 5,595,933 5,910,093 6,479,210 6,931,538 6,950,076 7,343,244 7,690,001 7,610,654 8,157,076 9,020,464
Total equity 4,119,823 5,026,050 5,595,933 5,910,093 6,479,210 6,931,538 6,950,076 7,343,244 7,690,001 7,610,654 8,157,076 9,020,464
Balance Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets
Curent assets
Cash 1,787,512 2,681,519 3,204,891 2,853,475 3,327,497 3,673,644 3,120,251 3,534,603 3,844,540 2,991,930 3,454,102 4,383,809
Other Curent assets 9,114,515 9,331,249 9,395,324 9,987,542 10,171,365 10,278,280 10,761,061 10,985,756 11,096,812 11,773,289 11,986,247 12,199,453
Total current assets 10,902,027 12,012,768 12,600,215 12,841,017 13,498,862 13,951,924 13,881,312 14,520,359 14,941,352 14,765,219 15,440,349 16,583,262
Fix assets
Equipment 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668
Building and land 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499
Total Fix asset 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167
Total assets 22,651,194 23,761,935 24,349,382 24,590,184 25,248,029 25,701,091 25,630,479 26,269,526 26,690,519 26,514,386 27,189,516 28,332,429
Liabilities
Current liabilities
Taxes payable 94,610 180,803 115,238 53,406 106,688 83,963 2,003 96,158 77,573 21,120 104,438 187,103
Total current liabilities 94,610 180,803 115,238 53,406 106,688 83,963 2,003 96,158 77,573 21,120 104,438 187,103
Long term debt 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000
Total liabilities 13,094,610 13,180,803 13,115,238 13,053,406 13,106,688 13,083,963 13,002,003 13,096,158 13,077,573 13,021,120 13,104,438 13,187,103
Equity
Retained earnings 9,556,584 10,581,132 11,234,144 11,536,778 12,141,341 12,617,128 12,628,476 13,173,368 13,612,946 13,493,266 14,085,078 15,145,326
Total equity 9,556,584 10,581,132 11,234,144 11,536,778 12,141,341 12,617,128 12,628,476 13,173,368 13,612,946 13,493,266 14,085,078 15,145,326
Balance Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets
Curent assets
Cash 2,053,968 3,015,289 3,665,645 3,327,969 3,918,520 4,428,371 3,891,424 4,447,550 4,900,026 4,139,026 4,731,752 5,837,913
Other Curent assets 980,785 1,195,454 1,270,059 1,898,741 2,092,234 2,207,474 2,758,562 2,991,229 3,102,418 3,755,738 4,011,792 4,233,096
Total current assets 3,034,753 4,210,743 4,935,704 5,226,710 6,010,754 6,635,845 6,649,986 7,438,779 8,002,444 7,894,764 8,743,544 10,071,009
Fix assets
Equipment 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668
Building and land 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499
Total Fix asset 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167
Total assets 14,783,920 15,959,910 16,684,871 16,975,877 17,759,921 18,385,012 18,399,153 19,187,946 19,751,611 19,643,931 20,492,711 21,820,176
Liabilities
Current liabilities
Taxes payable 108,551 192,681 137,646 64,298 127,251 112,851 19,049 121,176 102,726 1,062 127,476 218,241
Total current liabilities 108,551 192,681 137,646 64,298 127,251 112,851 19,049 121,176 102,726 1,062 127,476 218,241
Non current liabilities
Long term debt 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000
Total liabilities 13,108,551 13,192,681 13,137,646 13,064,298 13,127,251 13,112,851 13,019,049 13,121,176 13,102,726 13,001,062 13,127,476 13,218,241
Equity
Retained earnings 1,675,369 2,767,229 3,547,225 3,911,579 4,632,670 5,272,161 5,380,104 6,066,770 6,648,885 6,642,869 7,365,235 8,601,935
Total equity 1,675,369 2,767,229 3,547,225 3,911,579 4,632,670 5,272,161 5,380,104 6,066,770 6,648,885 6,642,869 7,365,235 8,601,935
Balance Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets
Curent assets
Cash 3,225,256 4,399,502 5,180,673 4,847,069 5,566,650 6,181,816 5,667,413 6,246,489 6,756,340 5,978,738 6,617,364 7,795,435
Other Curent assets 40,159 284,273 344,388 1,031,303 1,234,757 1,345,812 1,920,011 2,147,092 2,264,357 2,933,800 3,198,311 3,424,206
Total current assets 3,265,415 4,683,775 5,525,061 5,878,372 6,801,407 7,527,628 7,587,424 8,393,581 9,020,697 8,912,538 9,815,675 11,219,641
Fix assets
Equipment 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668 814,668
Building and land 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499 10,934,499
Total Fix asset 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167 11,749,167
Total assets 15,014,582 16,432,942 17,274,228 17,627,539 18,550,574 19,276,795 19,336,591 20,142,748 20,769,864 20,661,705 21,564,842 22,968,808
Liabilities
Current liabilities
Taxes payable 116,682 230,256 160,731 77,106 150,021 131,436 28,685 125,226 112,851 704 135,576 230,931
Total current liabilities 116,682 230,256 160,731 77,106 150,021 131,436 28,685 125,226 112,851 704 135,576 230,931
Non current liabilities
Long term debt 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000
Total liabilities 13,116,682 13,230,256 13,160,731 13,077,106 13,150,021 13,131,436 13,028,685 13,125,226 13,112,851 13,000,704 13,135,576 13,230,931
Equity
Retained earnings 1,897,900 3,202,686 4,113,497 4,550,433 5,400,553 6,145,359 6,307,906 7,017,522 7,657,013 7,661,001 8,429,266 9,737,877
Total equity 1,897,900 3,202,686 4,113,497 4,550,433 5,400,553 6,145,359 6,307,906 7,017,522 7,657,013 7,661,001 8,429,266 9,737,877
In cash flow part, the estimate actual income in the year that how much company
receives and expense by using financial hypothesis and financial policy abovementioned and
we can see the current assets increasing in every year and that is show the liquidity of cash
flow have high because we have cash more the current liability in each year. Then we can
spend a lot of money to purchase ceramics product by not have a problem.
Best Cera Ceramic Company Limited
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Operating activities
Cash inflow
Cash sales 1,143,300 1,238,300 955,600 1,127,400 857,400 1,048,000 1,112,800 1,440,800 1,285,900 1,134,500 1,386,200 1,948,900 14,679,100
Depreciation 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 465,660
Cash inflow from operating activity 1,182,105 1,277,105 994,405 1,166,205 896,205 1,086,805 1,151,605 1,479,605 1,324,705 1,173,305 1,425,005 1,987,705 15,144,760
Cash outflow
Purchasing product 322,500 344,000 270,500 321,500 259,500 294,500 299,500 383,000 347,500 306,500 377,000 527,500 4,053,500
Operating expense 497,600 208,150 207,250 520,090 208,150 207,250 500,810 208,150 207,250 594,990 207,250 208,150 3,775,090
Income tax 28,980 83,423 52,178 23,372 38,963 62,438 27,374 107,948 90,173 15,452 100,793 162,488 793,582
Net cash flow form Operating activity 333,025 641,532 464,477 301,243 389,592 522,617 323,921 780,507 679,782 256,363 739,962 1,089,567 6,522,588
Selling & administrative activities
Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
Marketing expenses 6,150 7,050 6,150 6,150 7,050 6,150 6,150 7,050 6,150 6,150 6,150 7,050 77,400
Organization expenses 452,645 162,295 162,295 475,135 162,295 162,295 455,855 162,295 162,295 550,035 162,295 162,295 3,232,028
Investing activities
Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
Financing activities
Cash inflow
Cash outflow
Interest rate 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 1,560,000
Net Financing activities 12,870,000 -130,000 -130,000 -130,000 -130,000 -130,000 -130,000 -130,000 -130,000 -130,000 -130,000 -130,000 11,440,000
Net cash increase or decrease 995,063 342,187 166,032 -310,042 90,247 224,172 -268,084 481,162 381,337 -429,822 441,517 790,222 2,903,991
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Operating activities
Cash inflow
Cash sales 2,064,300 1,919,800 1,382,200 1,577,000 1,382,200 1,191,900 982,800 1,098,200 1,021,700 964,000 1,344,600 1,858,900 16,787,600
Depreciation 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 465,660
Cash inflow from operating activity 2,103,105 1,958,605 1,421,005 1,615,805 1,421,005 1,230,705 1,021,605 1,137,005 1,060,505 1,002,805 1,383,405 1,897,705 17,253,260
Cash outflow
Purchasing product 559,500 515,500 374,500 429,500 374,500 322,500 265,500 297,500 276,500 260,500 364,500 505,000 4,545,500
Operating expense 735,210 208,150 207,250 647,900 208,150 207,250 565,490 208,150 207,250 666,850 207,250 208,150 4,277,050
Income tax 95,939 159,923 100,568 55,440 100,433 79,823 3,272 69,383 61,193 14,003 96,428 152,363 988,768
Cash out flow from operating activity 1,390,649 883,573 682,318 1,132,840 683,083 609,573 834,262 575,033 544,943 941,353 668,178 865,513 9,811,318
Net cash flow form Operating activity 712,456 1,075,032 738,687 482,965 737,922 621,132 187,343 561,972 515,562 61,452 715,227 1,032,192 7,441,942
Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
Marketing expenses 6,150 7,050 6,150 6,150 7,050 6,150 6,150 7,050 6,150 6,150 6,150 7,050 77,400
Organization expenses 690,255 162,295 162,295 602,945 162,295 162,295 520,535 162,295 162,295 621,895 162,295 162,295 3,733,990
Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
Install telephone 0 0 0 0 0 0 0 0 0 0 0 0 0
Equipment 0 0 0 0 0 0 0 0 0 0 0 0 0
Financing activities
Cash inflow
Borrowing 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
Interest rate 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 1,560,000
Net Financing activities -130,000 -130,000 -130,000 -130,000 -130,000 -130,000 -130,000 -130,000 -130,000 -130,000 -130,000 -130,000 -1,560,000
Net cash increase or decrease -113,949 775,687 440,242 -256,130 438,577 322,687 -469,342 262,627 217,117 -696,593 416,782 732,847 2,070,552
Beginning cash 2,903,991 2,790,042 3,565,729 4,005,971 3,749,841 4,188,418 4,511,105 4,041,763 4,304,390 4,521,507 3,824,914 4,241,696
Ending cash 2,790,042 3,565,729 4,005,971 3,749,841 4,188,418 4,511,105 4,041,763 4,304,390 4,521,507 3,824,914 4,241,696 4,974,543 2,070,552
Best Cera Ceramic Company Limited
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Operating activities
Cash inflow
Cash sales 2,275,000 2,112,500 1,518,000 1,675,200 1,439,400 1,229,500 1,075,200 1,340,700 1,168,400 1,035,000 1,413,500 2,170,500 18,452,900
Depreciation 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 465,660
Cash inflow from operating activity 2,313,805 2,151,305 1,556,805 1,714,005 1,478,205 1,268,305 1,114,005 1,379,505 1,207,205 1,073,805 1,452,305 2,209,305 18,918,560
Cash outflow
Purchasing product 617,500 569,000 412,500 457,500 390,000 332,500 289,500 361,500 314,000 277,500 380,000 585,000 4,986,500
Operating expense 896,770 208,150 207,250 731,660 208,150 207,250 642,350 208,150 207,250 768,300 207,250 208,150 4,700,680
Income tax 94,610 180,803 115,238 53,406 106,688 83,963 2,003 96,158 77,573 21,120 104,438 187,103 1,123,103
Cash out flow from operating activity 1,608,880 957,953 734,988 1,242,566 704,838 623,713 933,853 665,808 598,823 1,066,920 691,688 980,253 10,810,283
Net cash flow form Operating activity 704,925 1,193,352 821,817 471,439 773,367 644,592 180,152 713,697 608,382 6,885 760,617 1,229,052 8,108,277
Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
Marketing expenses 6,150 7,050 6,150 6,150 7,050 6,150 6,150 7,050 6,150 6,150 6,150 7,050 77,400
Organization expenses 851,815 162,295 162,295 686,705 162,295 162,295 597,395 162,295 162,295 723,345 162,295 162,295 4,157,620
Investing activities
Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
Install telephone 0 0 0 0 0 0 0 0 0 0 0 0 0
Equipment 0 0 0 0 0 0 0 0 0 0 0 0 0
Financing activities
Cash inflow
Borrowing 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
Interest rate 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 1,560,000
- - - - - - - - - - - -
Net Financing activities 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 -1,560,000
- - - -
Net cash increase or decrease 283,040 894,007 523,372 351,416 474,022 346,147 553,393 414,352 309,937 852,610 462,172 929,707 2,313,257
Beginning cash 2,070,552 1,787,512 2,681,519 3,204,891 2,853,475 3,327,497 3,673,644 3,120,251 3,534,603 3,844,540 2,991,930 3,454,102
Ending cash 1,787,512 2,681,519 3,204,891 2,853,475 3,327,497 3,673,644 3,120,251 3,534,603 3,844,540 2,991,930 3,454,102 4,383,809 2,313,257
Best Cera Ceramic Company Limited
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Operating activities
Cash inflow
Cash sales 2,459,000 2,202,500 1,706,200 1,821,600 1,613,800 1,480,400 1,329,800 1,559,800 1,390,400 1,296,700 1,615,400 2,444,400 20,920,000
Depreciation 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 465,660
Cash inflow from operating activity 2,497,805 2,241,305 1,745,005 1,860,405 1,652,605 1,519,205 1,368,605 1,598,605 1,429,205 1,335,505 1,654,205 2,483,205 21,385,660
Cash outflow
Purchasing product 665,000 591,500 463,000 495,000 439,000 402,500 362,000 425,500 380,000 355,000 440,000 663,000 5,681,500
Operating expense 940,328 196,458 195,558 767,948 196,458 195,558 710,808 196,458 195,558 818,778 195,558 196,458 4,805,926
Income tax 108,551 192,681 137,646 64,298 127,251 112,851 19,049 121,176 102,726 1,062 127,476 218,241 1,333,008
Cash out flow from operating activity 1,713,879 980,639 796,204 1,327,246 762,709 710,909 1,091,857 743,134 678,284 1,174,840 763,034 1,077,699 11,820,434
Net cash flow form Operating activity 783,926 1,260,666 948,801 533,159 889,896 808,296 276,748 855,471 750,921 160,665 891,171 1,405,506 9,565,226
Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
Marketing expenses 6,150 7,050 6,150 6,150 7,050 6,150 6,150 7,050 6,150 6,150 6,150 7,050 77,400
Organization expenses 907,065 162,295 162,295 734,685 162,295 162,295 677,545 162,295 162,295 785,515 162,295 162,295 4,403,170
Cash outflow sell & administrative
activity 913,215 169,345 168,445 740,835 169,345 168,445 683,695 169,345 168,445 791,665 168,445 169,345 4,480,570
- - - - - - - - - - -
Net cash flow sell & administrative activity 913,215 169,345 168,445 740,835 169,345 168,445 683,695 169,345 168,445 791,665 168,445 -169,345 -4,480,570
Investing activities
Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
Install telephone 0 0 0 0 0 0 0 0 0 0 0 0 0
Equipment 0 0 0 0 0 0 0 0 0 0 0 0 0
Financing activities
Cash inflow
Borrowing 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
Interest rate 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 1,560,000
- - - - - - - - - - -
Net Financing activities 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 -130,000 -1,560,000
- - - - 1,106,16
Net cash increase or decrease 259,289 961,321 650,356 337,676 590,551 509,851 536,947 556,126 452,476 761,000 592,726 1 3,524,656
Beginning cash 2,313,257 2,053,968 3,015,289 3,665,645 3,327,969 3,918,520 4,428,371 3,891,424 4,447,550 4,900,026 4,139,026 4,731,752
Ending cash 2,053,968 3,015,289 3,665,645 3,327,969 3,918,520 4,428,371 3,891,424 4,447,550 4,900,026 4,139,026 4,731,752 5,837,913 3,524,656
Best Cera Ceramic Company Limited
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Operating activities
Cash inflow
Cash sales 2,655,900 2,549,000 1,921,600 2,037,000 1,822,100 1,649,800 1,461,600 1,595,800 1,480,400 1,350,700 1,687,400 2,563,500 22,774,800
Depreciation 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 38,805 465,660
Cash inflow from operating activity 2,694,705 2,587,805 1,960,405 2,075,805 1,860,905 1,688,605 1,500,405 1,634,605 1,519,205 1,389,505 1,726,205 2,602,305 23,240,460
Cash outflow
Purchasing product 721,500 687,500 524,500 556,500 495,500 448,000 397,500 434,500 402,500 368,500 458,000 697,500 6,192,000
Operating expense 1,026,518 196,458 195,558 836,458 196,458 195,558 742,868 196,458 195,558 847,508 195,558 196,458 5,021,416
Income tax 116,682 230,256 160,731 77,106 150,021 131,436 28,685 125,226 112,851 704 135,576 230,931 1,500,205
Cash out flow from operating activity 1,864,700 1,114,214 880,789 1,470,064 841,979 774,994 1,169,053 756,184 710,909 1,216,712 789,134 1,124,889 12,713,621
Net cash flow form Operating activity 830,005 1,473,591 1,079,616 605,741 1,018,926 913,611 331,352 878,421 808,296 172,793 937,071 1,477,416 10,526,839
Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
Marketing expenses 6,150 7,050 6,150 6,150 7,050 6,150 6,150 7,050 6,150 6,150 6,150 7,050 77,400
Organization expenses 993,255 162,295 162,295 803,195 162,295 162,295 709,605 162,295 162,295 814,245 162,295 162,295 4,618,660
Investing activities
Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
Install telephone 0 0 0 0 0 0 0 0 0 0 0 0 0
Equipment 0 0 0 0 0 0 0 0 0 0 0 0 0
Financing activities
Cash inflow
Borrowing 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash outflow
Interest rate 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 1,560,000
- - - - - - - - - - - -
Net Financing activities 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 -1,560,000
- - - -
Net cash increase or decrease 299,400 1,174,246 781,171 333,604 719,581 615,166 514,403 579,076 509,851 777,602 638,626 1,178,071 4,270,779
Beginning cash 3,524,656 3,225,256 4,399,502 5,180,673 4,847,069 5,566,650 6,181,816 5,667,413 6,246,489 6,756,340 5,978,738 6,617,364
Ending cash 3,225,256 4,399,502 5,180,673 4,847,069 5,566,650 6,181,816 5,667,413 6,246,489 6,756,340 5,978,738 6,617,364 7,795,435 4,270,779
Net Present Value and Internal Rate of Return
Investment 13,000,000
Remainder 9,277,780.45
IRR= 34.77%
Net Present Value
The detail of Net Present Value (NPV) comes from the table. We have calculated Net Present Value by using 12 % of interest rate at the
present with dividend rate for 5 year. So, Net Present Value equal to 22,277,780.45 baht and when we compare with the investment at the
beginning 13,000,000 baht , we can see that value of return from the investment higher than the investment at the beginning about 9,277,780.45
baht . Thus, the decisions making to invest have the worthwhile value.
The Internal Rate of Return (IRR) from the table. We have calculated IRR by using Excel. We found Internal Rate of Return is 34.77%.
It means our business get return 34.77% every year. Thus, when we compare IRR with other business, we have high return more than other
business.
Chapter 6
Risk Management
A business risk is a circumstance or factor that may have a negative impact on the
operation or profitability of a given company. Sometimes referred to as company risk, a
business risk can be the result of internal conditions, as well as some external factors that
may be evident in the wider business community. Nowadays, many businesses around the
world have been faced economy problem. Because of price of gasoline increase, then each
company is increased the outcome. Profit and income are grown down. Each a business must
solve the problem. There is the competition and try to build the prominent point to the
business of oneself, both of in the promotion and building strategy.
The Company has stressed the importance of risk management whereby the Chairman
has assigned the Finance Committee to specify the extent and policy in risk management. The
Company has also teamed up with the chairman and manager to arrange the meeting every
six months to decide and appraise risks which may arise both from internal and external
factors of the business.
In June and December, the Company has prepared reports on the outcome of the risk
assessment of each division of the Company in order to work out preventive measures and
risk management as well as the guidelines in managing and administering the risks to
acceptable level. The Company has identified the risk which may affect operations such as
the sales and production risk, human resource risk, financial risk, planning and information
risk, the risk from market liberalization.
Political
Government is a key leadership role in creating prosperity to occur. Across all regions
of the country and create a quality of life of Thai people have always been and also has
incentives to accelerate the tax support. Developing export tourism industry is affect the
economy, Country’s growth and people have a job with more income and poverty. Most of
the Thai people exhausted. Local government must take measures and rights, benefits tax. To
support, modifying growth business investment of private sector in Lampang, Rights and
benefits of tax Lampang Municipality will use the tool. Promote the changes in the ceramic
business. In a separate principle, 2 way is to tax and tax breaks that are in jurisdictions.
Operators interested in investing or expanding investment. The financial cost is lower by the
tax exemption or modification to specific types of activities will support the development of
business and tourist streets of Lampang achieve goals.
Public policy is committee for provid business development roads and tourism. To
create guidelines and patterns of land and building drive tourism to occur on the road.
Support of the Association of pottery Lampang and operators of ceramics, ceramic shops
(outlet) provided on this street the most. The grant and the tax benefits of Lampang
Municipality,Intensive support to the investment guidelines and measures, if all communities
in Lampang to help the results in practice. Lampang City will no longer have a long road of
one business and tourism in the North. Which will help the growth of investment;
employment and development strategies in Lampang Province and Travel to the city will
achieve the objectives.
Economical
Selling ceramic affected continued problems and other political and economic burden
of adjustment costs increase and affect the confidence of consumers. It makes real estate in
distress and make hard decisions in purchasing power of consumers has also reduced severe
competition from goods produced in both countries, together own and imported products,
especially from China. Make available ceramic used as construction materials. Bush and
flagstone walls and a bathroom down is sales personnel flagstone wall in 2009 is 147.16
million square meters of volume. Sanitary and sales volume down from 3.89 million units last
year 2.43 percent and 12.74 respectively, which is subject to market conditions of flagstone.
Bush sided with the market based on the old home while repairs to sanitary ware based on the
new home market. Which currently are in distress, making the hard sell sanitary ware with
rates lower than Bush flagstone wall?
Make available personnel flagstone walls and a bathroom down. For ceramic
production and distribution in 2010 are likely to grow up a little. The economic situation in
the country in the recovery stage and Operations in 2010 with a budget to stimulate the
economy, the Thai government's program will be strong. From the practical results which
will cause more flow in the economy. And people are buying more in the export of ceramic
products in 2009 was affected by the financial crisis that occurred in the United States and
progression to the European Union. Cause the world economic slowdown. Resulting in
export products, ceramic products decreased in all major markets including the United States
Union America, Europe and Japan for export products, ceramic flat trend in 2010, Because of
exports to key markets including the United States, European Union and Japan also can not
grow much.
Technology
Internet
We used to communicate information within and outside agencies to reduce the steps
at work cause convenience correct operation of the organization. Working with the Internet is
part of the organization will be successful in operating high. It can be used to contact
customers directly but on the other hand is the cost higher. If you want a quality system cost
will upward with.
Transportation
Used in moving and transporting goods from factory to customer. The implementation
of computer and technology help to convenient and Speed of the transport. Affect the
transportation is efficient. The company has won the trust and confidence of customers.
When the move, Transportation and good and on schedule.
Infrastructure
Information Technology
IT has been used in the management applied to cause the operation. Effective and
making decisions in operations management are corporate survival.
Social
The company is located within the source business reputation and area where the
government has supported Chambers. There are also other companies located nearby and
neighboring provinces also. Factors include the cultural aspects that are the same culture and
they have good health consciousness, population has growth rate, career attitudes and
emphasis on safety. Trends in social factors affect the demand for a company's products are
high and company can operates as well. Furthermore, companies may change various
management strategies to adapt to these social trends.
Risk factors that affect the industry The hamburger crisis in the United States has
taken a heavy toll on the world‘s financial institutions and the real business sectors, leading to
a significant fall in consumer purchasing power not only in the United States but also in
Europe and Asia.
Thailand which relies heavily on revenue from ceramic shipments about 270 billion
baht is no exception. The global financial crisis brings about intensifying price competition
from the players in the ceramic industry both domestic and international markets particularly
from China. As a consequence, the industry‘s profitability has significantly dropped.
In addition, the price of raw material in ceramic production also saw a surge of up to
25%. The raw material prices experienced a price swing throughout the year. The price
swings as a result have prompted the potential buyers to delay their ceramic purchase orders
for the entire year.
Given such risk factors, the Company have focused on a single market to help our
business has a certain position and can develop our market.
Thanks to its own brand manufacturing base development, the Company has
maintained profitability in the long run with increased efficiency of production cost
management.
From the problem of economic slow down and the power producer entrepreneur in
countries increase more than consume needs. It was resulted in ceramic tile of the market
competition more intense so increase for capacity in competition management department
concern to the process of research and development for decrease production capital. In last
year get adjust the machine for lead heat energy comes back can use again therefore the cost
of energy economize very much. In year 2550 this a company will develop the products has
colors beautiful, new desire format and decrease the capital then concern to customer
requirement. Consist in the company have high produce production then minimum of
production per unit lower. The company has own channel distributions to sell the product and
continue to branch company very year. Therefore the company can accept risk management
competition in the price of sell. In addition, export markets, the company have not sold
because it seriously needs in the country before, if the remaining capacity of the company to
expand its exports to increase again.
Risk Factors on Sales and Production
The world‘s economic crisis has triggered a significant delay of purchasing orders in
the ceramic sector, price competition and rapidly changing design. It also prompts customer’s
world wide to cut their inventories to retain their liquidity. This trend means manufacturers
worldwide have to produce their products in a shorter period while maintain quality and
controlling production costs. Moreover, customers are increasingly demanding credit lines in
a longer term to offset shrinking liquidity or the liquidity constraint in the financial
institutions.
The Company has pursued a policy to reduce risks from selling and production as
follows:
• The Company has diversified price to various for easy to customer’s decision.
• The Company has its own product design and development center to
accommodate changing design demand on the punctual basis.
• Boosted by a strong financial base, the Company has greater financial flexibility
to provide credit lines to each customer with an appropriate term.
Skilled personnel in design, production and innovations in the ceramic industry are by
nature relatively limited. Also the new personnel development until they are fully capable of
producing affordable quality products with competitive prices in the market will generally
take time.
In addition the number of skilled and experienced managers in the ceramic industry is
still limited compared to the export values of the country’s ceramic which account for one of
the Kingdom’s largest export sectors.
The Company has pursued a policy to curb the risks potentially arising from human
resources as follows:
Financial Risk
The business is a new business, Should have the knowledge and have experience to
start business. Risk avoidance, the business should deny the behavior or abandon the
activities that have high risk. Have policy as; product policy, the products of the business that
will go out to the market, at least must have acceptance products evidence from target
customer and have must to are the products that have done market test already. Financial
policy, in the growth of the business must have the stability by consider the growth from the
profit of the business, and if the business has the necessity must build a debt, must consider
the ability in the settlement is first.
Risk Factors on Information
The Company has pursued policy to curb the potential risks from information
technology as follows:
Credit risk
The company has credit risk associated with trade receivables by the company has a
policy of credit as a precaution and a variety of customers. The number may have lost most of
the credit will equal the value of the account receivable in the balance sheet.
Risks associated with interest rates due to interest rate changes. That causes damage
to the Company and its subsidiaries in the current period and next period.
The Company and its subsidiaries expect the impact of interest rate changes will be higher
that no substance to interest expense because the company used loan in the country. And a
short-term borrowing, which have interest rates lower than long-term loans at an interest rate
based on the financial markets.
The company expects no impact from exchange rate material because the company
does not borrow from abroad. But the company and its subsidiaries are subject to risks from
foreign currency exchange rates because the company and its subsidiaries are creditors and
trade creditors of foreign in U.S. and Euros currency. However, the company plans to reduce
this risk. The surveys find new domestic sources of raw material and nearby neighbors. And
contract pricing by trading in fixed period of time. In addition, research and development
about renewable raw materials is cheaper than to be used in the production process.
In the past time, some agent and retailer of tile floor and bush walls product ordered
direct ceramic floor tiles from China, which is cheaper to sell in the shop that result to orders
for goods from domestic producers decreased. In this issue has not affected much because
goods imported as flagstone surface species on sale in market high market is not group
companies. If the imported goods the same type of production to sales can not compete with
production costs of the company. Because when combined shipping cost will go higher than
that produced in the country In addition to stock a variety of patterns.
However, due to its internal control system to track results to differ from the plan or
stated objectives that allow management to manage risks that may occur with time. It also has
an administrative committee meeting regularly to review and adjust the standard plan to
reduce risk of business and to comply with the situation in each period.
Chapter 7
In now days, the ceramic products are more important in markets around the world.
Most people in the world took it to their daily lives and cannot live it out. In Thailand there
are many ceramic industries and workshops. It is one of tops ceramic exporting in the world
especially northern of Thailand, at Lampang province. There are many ceramic industries,
and it is the most famous area. This kind of business is more interested and it is large in
market demand supporting in many local markets and global markets, and the trend of growth
is likely increasing. So it is the main reason that let us choose to invest in this business.
Ceramics have been fired in Thailand since prehistoric times, with old ceramic finds
covering much of northern and eastern Thailand. Thai Ceramics actually begins with the
Khmer Empire of the last millennium in what is modern-day Cambodia and eastern Thailand.
When China experienced an internal crisis in the 15th century, it opened the door for Thai
ceramics to take over the Asian market.
Lampang is one of the most important ceramic producers in the north of Thailand.
Ceramics in Lampang was originated when a villager from the Jae-Hom district found a
whetstone which was made from Kaolinite (white clay). In 1967-1969, there was a change in
economics and demand structure. The Department of Science began to pay more attention to
ceramics from Lampang. They held several events such as ceramic competitions, more
support for small scale factories, and seminars on ceramics to motivate the owner to go
abroad to gain more experience. Today, the ceramic factories in Lampang range from small
to large scale. There are about 30 factories for medium to large scale numbering from 100-
600 in labor force per factory. There are about 120 factories for small scale with 10-80 in
labor force per factory. This generates a cash flow into the province of at least 2,000 million
baht per year.
In the company area there is no one any direct competitor, but we found only one that
is our indirect competitor and able to let many teenager buying their products. It is JaiKo gift
shop store, a new gift shop store in Lampang province. The store was established at in front
of Boonyawat school that near our company about 2 kilometers. They have use pink ribbon
for their store symbol. And there are some ceramic factories that we focus on and try to make
the plan for protect like K.K. Ceramics, Indra Ceramic, Saengchai Ceramics, Dhanabadee Art
Ceramic, B.P.C Ceramics, and Kasalong Ceramics.
The teenager (age between 13-25 years old) in many schools around the area at
Mueang, Lampang we found that there are around ten schools and the number of customer is
around 33,115, and total Lampang teenager size is 676,214. For teenagers they favor the
ceramic product too, but less design in supporting, they need the ceramic product designs that
different from the market and run forward with trended of modern. The design that they
interested in is beautiful looking and the style that likely famous in teenage concept.
The different point of products design, we focus to produce the product according to
our own designs that there are three concept designs to our gift and decoration for teenager
group of customers. We try to study about many companies products and create Best Ce Ra
own design, we add the fragrant into the product that is the main point of our products that
100% are not same with any ceramic companies in Lampang province.
The products of Best Ce Ra Ceramic are concerned about the design first because we
try to make the point of different from many competitors in market and present a new design
of ceramic into the market under the brand of Best Ce Ra Ceramic Company limited. Best Ce
Ra focus on three styles of design concept, there are green design, love design, and animal
concept design. The entire product designs that we try to fix on the products shapes and
follow the modern trend in nowadays customer favors. Best Ce Ra creates these designs for
two main of products are decorations and gifts. Besides, there is a point that different from
others it is fragrance, all of the products that we have inserts fragrance that like fresh nature
into the products.
We choose K.K. Ceramics Company to produce for our product and Asia Paper Bag
Company to produce the bag and boxed. From study about production and operation of Best
Ce Ra business we foresee to build this business because of we have ready staff that right job,
right time and right people.
Income statement
For income statement, we consider from previous data of market average to use as
basic information to estimate income and expense that we will receive in each year. We are
estimate about 5 years by we use financial assumption and other financial policy and we can
see the net income of our company increasing in every year in the chart especially in year 3-4
we get net income from 8,501,179 baht or 65% from cost of investment.
In the graph, we can sell a lot of ceramics product in January, February, November
and December because these months have special day. For example, In December and
January have New Year day, in February has Valentine day. It makes net profits of in
January, February, November and December are higher than other months. In April, July and
October has less income because these months are low season and we have more expense. It
will make net profit in April, July and October are less than others months.
Cash Flow
In cash flow part, the estimate actual income in the year that how much company
receives and expense by using financial hypothesis and financial policy abovementioned and
we can see the current assets increasing in every year and that is show the liquidity of cash
flow have high because we have cash more the current liability in each year. Then we can
spend a lot of money to purchase ceramics product by not have a problem.Balance Sheet
In balance sheet part include the data of asset, debt share and owner in period year
end that how much it is. The balance sheet takes the data cash flow income statement to
calculation. In the line of balance sheet this graph shows the value of equity that will increase
in every year and liabilities of our company will steadily which in five year.
The detail of Net Present Value (NPV) comes from the table. We have calculated Net
Present Value by using 12 % of interest rate at the present with dividend rate for 5 year. So,
Net Present Value equal to 22,277,780.45 baht and when we compare with the investment at
the beginning 13,000,000 baht , we can see that value of return from the investment higher
than the investment at the beginning about 9,277,780.45 baht . Thus, the decisions making to
invest have the worthwhile value.
The Internal Rate of Return (IRR) from the table. We have calculated IRR by using
Excel. We found Internal Rate of Return is 34.77%. It means our business get return 34.77%
every year. Thus, when we compare IRR with other business, we have high return more than
other business.
Risk analysis is tool for manager and accessory in project, because of it can help
specify that barrier to project incomplete. Both of side schedule error, expenses, and project
end. Risk analysis are causes initial seeking and assess a problem, improve practice follows
the plan operates appropriately, and following up the risk management. Risk analysis and
administration project are the procedure can analysis, and manage the risk that related to with
project, thus operate is appropriately help project to completely both of expenses side, time
and practice succeed to follow the objective, Risk analysis and management project are the
procedure that design to decrease the risk that menace success of the project is efficiently.
Ceramic business have the risk in all side, financial, management, the risk from
external environment, risk that the business cannot control, or new entry to competition. In
part financial, if the business is increase expenses, an advertisement for encourage the sale, or
freight, affect to the profit of the business is down. Part of administration, should always give
knowledge to an officer, for decrease error in operating. Every problem are happen that can
affect to operating of business, thus the business is supposed to learn all, for prepare solve the
problem that happens, and decrease the risk which relation operating and can happen to every
kind business.
Risk management helps business to achieve, while decrease barrier that may be
happen both of the profit and operation. Protect damage to resource of the business and create
the confidence in management.
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