Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
II
Table of Content
Title Page
Content of table ........................................................................................................... V
Content of Figure ...................................................................................................... VI
Exclusive Summary ............................................................................................... VIII
Table of Content
Title Page
Chapter 3: Market Feasibility Study ....................................................................... 32
3.1 Market Analysis .............................................................................................. 32
3.1.1 General Environment Analysis ................................................................ 32
3.1.2 Competition Analysis ............................................................................... 36
3.2 STP Analysis ................................................................................................... 40
3.2.1 Market segmentation ................................................................................ 40
3.2.2 Target Market ........................................................................................... 42
3.2.3 Product Position ....................................................................................... 43
3.3 Marketing Mix Strategy ................................................................................. 44
3.3.1 Product ..................................................................................................... 44
3.3.2 Price.......................................................................................................... 45
3.3.3 Place ......................................................................................................... 45
3.3.4 Promotion ................................................................................................. 46
3.4 Sale Forecast/Profit Estimation ..................................................................... 47
3.5 Marketing Expense (Sales Incentive) ............................................................ 56
3.5 Market Feasibility Conclusion ...................................................................... 61
Table of Content
Title Page
4.2 Cost of Investment ........................................................................................ 125
4.2.1 Pre – Operating Cost .............................................................................. 125
4.3 Investment Cost ............................................................................................ 131
4.3.1 Building Decoration ............................................................................... 131
4.3.2 Tools and Equipments ............................................................................ 133
4.4 Management Analysis .................................................................................. 147
4.4.1 Organization Management ..................................................................... 147
4.5 Technical Feasibility Conclusion................................................................. 165
Content of table
Title Page
Chapter 2
Chapter 3
Table 3.1: The total number of industries in capital of Chiang Rai 2009……………32
Table 3.2: The Size of business according to the value of fixed asset in
business in Thailand……………………………………………………...39
Chapter 4
Table 4.1: The Standard US Corrugated Flutes……………………………………...70
Table 4.2: The Printing Inks………………………………………………………….76
Table 4.3: The Electricity Peak ….…………………………………………………155
Table 4.4: The Rate of water price…………………………………….....................156
VI
Content of Figure
Title Page
Chapter 2
Figure 2.1: The proportion of packaging consumption in each region………………..8
Figure 2.2: The proportion of packaging in each type…………………………….......8
Figure 2.3: Number of packaging business classify
by juristic person category………………………………………………13
Figure 2.4: Number of packaging business classify
by regions of Thailand………...................................................................13
Figure 2.5: Number of packaging business classify
by registered capital…………...................................................................14
Figure 2.6: Number of the remaining packaging business
between 1 999-2009……………………………………………………...15
Figure 2.7: The value of foreign investment…………………………………………15
Figure 2.8: Average main income per company……………………………………..16
Figure 2.9: Financial Ration of Total Business………………………………………17
Figure 2.10: Financial Ratio of Small Business……………………………………...18
Figure 2.11: Corrugated fiberboard box……………………………………………...19
Figure 2.12: Cardboard paper box……………………………………………………21
Figure 2.13: Kraft paper bag…………………………………………………………22
Figure 2.14: Cardboard paper bag……………………………………………………23
Figure 2.15: The other design of packaging………………………………………….24
Figure 2.16: Common Customer Service Complaints……………………………….28
Chapter 3
Figure 3.1: Graph show the total number of industries in capital of
Chiang Rai 2009……………………………………………………........33
Figure 3.2: The King Carton Company........................................................................35
Figure 3.3: The King Carton Company........................................................................35
Figure 3.4: Logo of IDEA Plus+.................................................................................42
Figure 3.5: Website Company: www.ideaplus.com.....................................................44
VII
Content of Figure
Title Page
Chapter 4
Figure 4.1: Example of Corrugated fiberboard packaging...........................................61
Figure 4.2 Example of Cardboard paper packaging.....................................................62
Figure 4.3 Example of Cardboard bag packaging........................................................64
Figure 4.4: Example of Kraft paper bag packaging.....................................................66
Figure 4.5: The Premium Kraft-top liner - golden yellow...........................................67
Figure 4.6: The Kraft Top Liner...................................................................................68
Figure 4.7: The Kraft-top liner - bright brown.............................................................68
Figure 4.8: The Kraft-top liner – brown......................................................................68
Figure 4.9: The Corrugated fiberboard........................................................................69
Figure 4.10: The Single Face Corrugated paper...........................................................71
Figure 4.11: The Single Wall Corrugated paper..........................................................72
Figure 4.12: The Corrugated paper Double Wall.........................................................72
Figure 4.13: The Triple Wall Corrugated paper...........................................................72
Figure 4.14: Production and service process................................................................73
Figure 4.15: The production of a corrugated box can follow
many different paths through a corrugating plant’s
various machines...............................................................................75
Figure 4.16: The Location of Idea Plus building..........................................................78
Figure 4.17: The Facility Layout..................................................................................79
Figure 4.18: The Logistics of packaging industry......................................................115
Figure 4.19: The Component of a Customer Order Cycle.........................................116
Figure 4.20: Company’s name signboard / billboard.................................................123
Figure 4.21: TOA Shild-1, Tender Green ES158.......................................................129
Figure 4.22: Cream Nano tile in wooden color..........................................................129
Figure 4.23: Company’s Polo-Shirt: Front.................................................................146
Figure 4.24: Company’s Polo-Shirt: Back.................................................................146
Figure 4.25: Organization Chart................................................................................147
VIII
Exclusive Summary
The packaging of our company are produced from papers include Kraft paper,
Cardboard, and Corrugated fiberboard because the paper packaging is unique and
features is more than other types of packaging. It’s low cost, light weight, suitable to
print the text and change the design to be appropriate with the products, can be
recycled and use less time to self-degradation in nature when compared to other
materials. So, it’s the packages that cause less environmental pollution. Moreover, the
new technology evolution can up grade the quality and property of paper packages to
be more durable and protect the goods inside.
Market analysis, we use political environment analysis, economic environment
analysis, social and environment analysis, and technological analysis to analysis
external factor that can effect to our company. The businesses about packaging in
Chiang Rai are quite few that we have only one famous competitor who allocate the
business around Muang district, King Carton Company, who provide quite similar
business, but we employ the King Carton as our production division or we can call
them as supplier instead of competitor. We emphasized on customers in Chiang Rai
who running the industry, and wholesaler& retailer because there are quite more
amount of customers in these businesses. We want to serve the quality products which
meet the customers’ need because we position our products on promoting, adding
value, and environmental friendly for the customers especially the medium and small
businesses by providing product differentiation, and using the friendly materials.
The competitive for this business is quite not too competing strongly although
we have only one supplier, because we plan to employ other suppliers to supply and
running the production for us such as CK Carton in Lumphun. We want to serve the
quality products which meet the customers’ need because we position our products on
promoting, adding value, and environmental friendly for the customers especially the
medium and small businesses by providing product differentiation, and using the
friendly materials. Moreover, we offer our customers with reasonable price which is
depended on the cost of papers, allocate our company at the place where easy and
flexible for customers, distribute our products through Nimseeseng Transportation
Company to our customers directly, and do more aggressive advertising, and promote
our products through the media and sale representatives, which those are our
strategies for marketing that help us to gain more profit by reaching the customers’
mind.
X
For customer analysis, we offer our customers with reasonable price which is
depended on the cost of papers, allocate our company at the place where easy and
flexible for customers, distribute our products through Nimseeseng Transportation
Company to our customers directly, and do more aggressive advertising, and promote
our products through the media and sale representatives, which those are our
strategies for marketing that help us to gain more profit by reaching the customers’
mind. Furthermore, the calculating show that if we get just only 1% of wholesale and
retail sector and industry sector, income will be 3.92 million baht per month which
packaging is more required because there are more trading for both wholesale and
retail including arising of sales for industry.
Idea Plus Company has corrugated fiberboard packaging, Cardboard paper
packaging, bag-cardboard paper. Kraft paper can be utilized for many different
purposes. One of the most common uses of the plain brown Kraft paper is in the
manufacture of paper bags for use in grocery stores. The solid construction of Kraft
paper makes the bags ideal for use with all sorts of grocery items. Kraft paper is also
utilized in other industries as well. In the publishing industry, Kraft paper is often
used as the lining for the inside cover spine of hardback books. In the world of
electronics, Kraft paper is often used as an insulating agent on electrical components,
providing a sturdy yet inexpensive means of protecting the material. Cardboard is a
generic term for heavy-duty paper-based products sometimes made by pasting
together two or more layers of paper. It is used to make playing cards, signs, boxes,
and other things. Synonyms include paperboard and pasteboard. In industry, the term
cardboard is seldom used because it does not denote a specific material. Corrugated
fiberboard can be specified by the construction (single face, single wall, double wall,
etc), flute size, burst strength, edge crush strength, flat crush, basis weights of
components (pounds per thousand square feet, grams per square meter, etc), surface
treatments and coatings, etc. The choice of corrugated medium, flute size, combining
adhesive, and linerboards can be varied to engineer a corrugated board with specific
properties to match a wide variety of potential uses. Double and triple-wall corrugated
board is also produced for high stacking strength and puncture resistance. Box
production process is about the manufacturing sequence can follow many different
paths depending on the nature of a box design and how it is decorated. Board leaving
the corrugating machine might be natural Kraft or any one of the several white
XI
surfaced or solid white Krafts. The top linerboard may be unprinted, or the linerboard
may have been preprinted. For a regular RSC, a flat sheet, cut to the box’s overall
dimensions and with the flap scores in place, is sent through a single machine that
prints, panel-scores and slots, folds, and glues the box in one operation. Die-cut boxes
leave the corrugating machine as flat unscored sheets. They can be decorated by direct
printing or by applying preprinted lithographed labels (litho labeling). After the
appropriate decorating, the blank is sent for die-cutting, folding and gluing. Litho-
laminating is a less common process. It laminates a lithographically printed label
paper (not kraft) to a single faced board, usually using a specialized, small corrugating
machine. The process is most often done with E- or smaller flutes.
Idea Plus Company use logistic for process of planning, implementing, and
controlling the efficient, effective flow and storage of goods, services, and related
information from point of origin to point of consumption for the purpose of
conforming to customer requirements. Logistics’ Idea Plus Company start form
customer order, company has a correct information that customer need such as
number of product, style of product, right time and place for shipment product to
customer. Transportation product, Idea Plus Company use logistic service from Nim
See Seng Transport for shipping our product through customer because Nim See Seng
Transport has a good professional about logistic service. So, Idea Plus Company
outsource the logistics management by contract with Nim See Seng Transport. Thus,
outsourcing for Nim See Seng Transport will make the company pay less expense in
shipping the products to customers.
For Company’s name signboard would be ordered from Klin See Advertising
shop because they provide installation service. Klin See Advertising shop is located at
Moo.4 Phahon Yothin Road, Wieng Sub-District, Muang District, Chiang Rai.
Contact Mr. Somnuek Srisansai, telephone number: 08-1672-1802, email:
sa_bse@hotmail.com. The signboard would be light box with white background and
letter would be in green. The letters and picture is made by special sticker which use
for outdoor signboard, long lasting for 5-7 years according to the sun light and the
rain. The total size including background is about 1.5 maters high and 4 maters for
wide (not include picture). The front is settled for 1 mater high. For the picture is
settled for 2 meters wide. Total company’s name signboard is 6 matters wide. The
XII
price for company’s name signboards is 180 baht per square feet, for total is 18,955
baht include installation service.
Company promoters are responsible for registering the company with the
Ministry of Commerce (MOC) and required at least 3 persons singing together. The
promoters must be individuals (not juristic persons) who are 20 years of age or older,
and they must be available to sign documentation during the registration process
which for Idea Plus, the promoter are included five partners for the resolution of the
group, the partners discuss to promote Miss Suratt Sukpueng to be the board of
director which needs to precede the procedures for establishing a company as the
Limited company at Office of Commercial Affairs Chiang Rai Office.
For financial, the company pay back period is with in one year, the
company pay interest15% for investor and pay all initial within tree years. NPV of the
project is 56,943,442.95, IRR is 402.30% and ARR or ROI is 635.57% which mean
this project can be accepted.
Idea Plus Company use risk management analysis that is very helpful in
examining the risks and following a well planned process to hedge the risk. Risk
management analysis is very important for proper application of the risk management
policies. This analysis is necessary because the demand of the market and the trends
are changing constantly and only proper analysis of risks can help the businesses to
achieve the set targets. The strategies to manage risk include transferring the risk to
XIII
another party, avoiding the risk, reducing the negative effect of the risk, and accepting
some or all of the consequences of a particular risk.
1
Chapter 1
Introduction
it’s the packages that cause less environmental pollution. Moreover, the new technology
evolution can up grade the quality and property of paper packages to be more durable
and protect the goods inside.
Week 1
Week 2
Week 3
Week 4
Week 1
Week 2
Week 3
Week 4
Week 1
Week 2
Week 3
Week 4
Week 1
Week 2
Week 3
Week 4
Activities
1. Topic submission
2. Introduction
submission
- Introduction to
project feasibility
study
3. Study the industry
profile
- Product
Characteristics
4. Analyze the market
feasibility
- Market Analysis
5. Topic presentation
6. Study technical
Feasibility
- Production and
Operations
- Process of
Management
7. Analyze the financial
of our business
- Financial
Statements
Generating
- Financial Statement
Analysis
8. Study and manage
the risk of our business
- Risk Analysis and
Other Analysis
9. Project Advertising
- VCD/DVD Ads.
10. Writing and
analyze the report
11. Presentation
12. Conclusion the
feasibility of business
4
Chapter 2
Industry Profile
such as video recorders and computers. In 1920, the invention of transparent cellophane
marked the beginning of the era of plastic. Polyethylene, the first plastic used for
packaging, was discovered in 1933 by mistake Aluminum foil, which came later, made
it possible to effectively seal medications and other sensitive products. From then on, a
large number of technical innovations led to the continued improvement of packaging
and, consequently, to increased choice of food, thus improving our everyday standard of
living. In the 1940s, packaging was developed for frozen food. In 1952 the aerosol came
onto the market. Cans, available from the 1960s, heralded the explosion of the soft
drinks market. Aseptic cartons, invented in 1961, have been used for preserving long-
life milk ever since. This continuous quest by mankind to find new methods of
conserving food and transporting products has allowed us to substantially limit the loss
of our resources over the course of time. It has allowed us to move from a society living
from one day to the next, dependent on available food sources, to a world which
manages its resources in the long term. Efficient packaging, which can be adapted to all
kinds of goods, has made this possible. Modern packaging is what allows us to reheat a
frozen meal, as well as to ensure that the Mona Lisa can be sent to the other side of the
world and arrive in one piece. (Source: The European Organization for Packaging and
the Environment)
1) Paper packaging
2) Plastic packaging
3) Metal packaging
• Steel
Disadvantages are rust that high costs and find a way to make not rust. It may
use Tin and Chromium for enamel the can. The advantage is stability for high thermal.
7
Food packaging is use high heat and disinfection. Metal is better because it will not easy
to melt.
• Aluminum
The benefits are not rust but expensive. The feature is block to the gas and
moisture better and resistant to oil.
4) Glass
According to the global warming trend and EXIM Banks business research, the
consumers pay more attention on green products or environmental friendly products,
either production process, product components or packaging. The packaging need to be
environmental friendly and can be decomposed or reused including give significant to
the symbols of environment standard such as ISO 14000, Carbon Footprint, Eco-
labeling and product packaging also. Paper packaging has unique and features more
than other types of packages such as can be printed the designs, brands, messages on the
box well and can be seen clearly. Also, its lightweight, easy to transport and
inexpensive. So, demand in paper packages is more than other types of packaging. And
also the product is easy to degradation and can be recycled, more environmental
friendly than other type of packages. This can enhance the image of the customers’
products and response to customers psychological need also. These make paper
packaging is more popular.
8
Americas
35%
Paper packaging is the most used, in the year 2007 the consumption around the
world to package paper products is 130.1 million tons which representing 51.3 percent
of the total market value, while plastic packages are ranked in 3 after metals which
representing 14.6 percent of total market value.
Plastic
15%
Paper
51%
Matal
20%
In the global market, packaging is important materials for consumer goods, and
food and beverage industry. The restrictions on the environment about waste from
packages, the manufacturers and buyers have turned to use the packaging made from
raw materials which can be reused or recycle, the people use more in substitute
packages such as use more paper packaging to be an alternative packaging instead of
plastic packaging in food industry. World packaging market is quite spread, although
there are the major manufacturers in the market. The leader in market has only 2.1 per
cent in market share.
Division of packaging industry has a total capacity of 4.9 million tons per year;
the company is a third largest in U.S for manufacturer of paper packaging. Once of third
outcome are specialty packaging products and 70 percent of production will be
corrugated paper box and other types of packaging with 65 packaging plants in the
United States. The company manufactures paper from the used paper in France. There
are 22 packaging manufacturing plants in France, Ireland, Italy, Spain and Turkey also
Morocco. Moreover the company also has facilities in Chile, Turkey and China, the
company has 8 of the packaging plant in China and 1 in Thailand. This department has
capacity Kraft paper and 405,000 tons per year.
3) Owens-Illinois. Inc
Owens-Illinois is a packaging and glass containers manufacturer with operations
in North America, Europe, Asia Pacific and South America. And in addition is
manufacture packaging for personal care products including plastic containers for drug
control, medical devices and maintaining various systems. The company has 83
factories in 22 countries and has 18 packaging manufacturing plants which 13 plants are
located in the United States.
The company divided its business into 2 main business units: glass containers
and plastic containers. The company's main products are crystal, which consists of glass
containers for beer, drinking alcohol, wine, food, water, tea, fruits and vegetables juice
and medicine. Company also manufactures glass containers for other no alcohol
beverages. Plastic packaging manufacturing facility located in 5 countries, which the
main product is the packaging for health products and various kinds of medicine.
Central (Bkk is
excluded)
37%
Bangkok
West 51%
1%
East-North
1%
North East South
2% 7% 1%
100-499.9 2.98%
50-99.9 2.65%
10-49.9 10.19%
5-9.9 10.27%
1-4.9 54.68%
<1 18.64%
NOTE:
1) In 1999-2008, the number of establishment, close down and still remaining
company as at December 31.
15
1200
1100
1000
900
800
700
600
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*
From the figure we can see that since 1999 to 2008, number of packaging
company that still remaining is increase continuously, but not to fast because during
those 9 years the number of company increase not so much. However during 2008 –
2009, the number of remaining company decreased because of economic crisis.
16
8%
6% Germa ny
9% Japan
5,558 China
million baht 55% Singapore
=100%
22% Others
3) Performance
Million Baht
86
85
84 84
82 82 82
80
78
76
74
72
70 70
2003 2004 2005 2006 2007
From the figure, we can see that since 2003, the average income per company of
packaging business increase continuously, thus it still to be a good opportunity in this
industry.
Percentage
16.00
14.00
12.00 Gross Profit
0.00
2003 2004 2005 2006 2007
Percentage
18.00
16.00 Gross Profit
14.00 Return on Asset
12.00 Cappital turnover
10.00 Receivable Turnover
8.00
Debt/Equity Ratio
6.00
Debt Ratio
4.00
2.00
0.00
2003 2004 2005 2006 2007
From the financial ratio, we can see that even the financial performance of entire
packaging business is decline in gross profit, but when we consider the small packaging
business , even entire business gross profit decrease, but in small business still increase
continuously and return on asset increase in both section of business.
20
2) Bag
• Kraft paper bag
1) Vision
“To become a leading provider of paper packaging for our valued clients in
Chiang Rai”
2) Mission
We will provide fully quality products at affordable prices which achieve our
customer’s expectations with professional team and high technology. We take care of
our employees with ethical standards which make them to give us with standard product
and service in return that will keep our profit grows up continuously, and serve the best-
in-class both product and service to our customer that also help us to advantage in
competition. Moreover, we concern to provide the environmental products to the market
which help to save our world.
2.5 Strategy
2.5.1 Corporate Level
There are 4 main strategies in cooperate level
1) Integration Strategies:
- Forward Integration: is increased control over retailers or customer. This will
be use when it is limited and expensive or unreliable in current distributors, they have
high profit margin and the firm has both capital and human resource to manage new
business of distribution.
- Backward Integration: seeking ownership of supplier. This integration will be
used when current suppliers are expensive or unreliable and they have high profit
margin, high growth in that industry sector and the firm has both capital and human
resource to manage new business.
27
2) Intensive Strategies:
- Market Penetration: seeking increased market share for present product
through marketing efforts.
- Market Development: introducing present products into new market.
- Product Development: improving present product or developing new ones.
3) Diversification Strategies:
- Concentric (Related): adding new but related products.
- Conglomerate (Unrelated): adding new but not related products.
4) Defensive Strategies:
- Retrenchment: regroup through cost and asset reduction.
- Divestiture: selling a division or part of an organization.
- Liquidation: selling all of a company’s assets.
According to EXIM Banks business research, it found that even the consumers
give significant on products worth and benefit but we cannot reject that the first thing
which attract the consumers decide to buy products are physical appearance and
packaging. It make the consumers pay less attention on the price and quality but pay
more attention on the thing that can response to their psychological needs.
For our business, we provide the paper packaging. There is quite less providers
in the Chiang Rai market while there are a lot of products which need the packaging to
transportation and adding the value of its. Thus, the strategies that we choose for
corporate level are Intensive Strategies:Product Development: improving present
product or developing new ones. We will develop and create new structure design and
function in various shade of packaging color continuously to add the value to our
customers products, be more attractive, and for more convenience of end users such as
provide the various designs and appearance to response customers psychological needs
especially OTOP products which still have to develop the packaging.
28
This type will use for greater product flexibility, convenience and compatibility,
lower costs, improved service, and more features.
- Type4&5: Focused Strategies:
It is segment of sufficient size for good growth potential and not crucial to
success of major competitors.
In our business, in functional level the strategy that we choose is differentiation
strategies. Because of we use the product development strategy which in this case we
will link with product differentiation strategies, because we develop the product to
create the differentiation. The customers will interest in our product because of its
graphic design, value added and benefits. The design will increase and add the value to
our customers products, so we also have a plan to change packaging appearance; we
need to change the design of our packaging product to be rather than the box in cubic
shape or size. That’s for more attractive, feature, and convenience.
Moreover, we will design the package in a fancy, colorful, and classic style for more
choices and also attract the customers too such as to change the square appearance to
the triangle appearance.
29
Late deliverly
44%
Product or
quality
mistakes
31%
2) Finance
The finance function consists of the people, technology, processes, and policies
that dictate tasks and decisions related to financial resources of a company which we
consider the legal investment which protects our business from the illegal policies and
contract. We need to select the projects based on risk and expected return that are the
best use of a company's resources, and to maintain optimum risk-return trade-off that
maximizes shareholder value. We also manage the company cash flow and balancing
the ratio of debt and equity financing to maximize company value, and contract the
financial institutions efficiently.
3) Accounting
Chapter 3
Graph shows the total number of industries in capital of Chiang Rai 2009
Table 3.1: The total number of industries in capital of Chiang Rai 2009
2008 2009
All of
Data Unit Oct. year Q1 Q2 Jul. Aug. Sept. Q3 Oct.
Total no.
Authorized
capital of Million 7,556.8 75,412.2 7,514.2 75,412. 7,514.2 7,915.0 7,927.2 7,927.2 8,049.7
industry Baht 0 0 0 20 0 0 0 0 0
Growth Rate (y-
o-y) percentage 4.2 2.2 2 -0.8 -0.9 4.9 4.9 4.9 6.6
34
Figure 3.1: Graph show the total number of industries in capital of Chiang Rai 2009
4) Technological Analysis
The advances of technology are making development to invention and
comfortable for life. Technology provides the quality and standard to produce goods
and services customer needs. The production system produce many products the can be
cheaper. Technology is easy to communication and connections between the world's
population contact information at time together. My business has benefit from several
areas of technology such as:
- Computer Technology is design product to high quality and fewer errors. It has
a samples and work on reality to lower costs of production. The price is reduction of
packaging and increasing to product quality. There are more customer needs which my
company can production on demand.
- Internet Technology is easily to communication with customers that faster and
more complete information. The customer is not order your own which can be receive
and send e-mail directly to company. The Customers feel friendlier that create to
customer royalty.
- Website is the customer easily to view the products and change and improve
the product to available format and can design own products as appropriate. The
company received orders to customer that not only in Chiang Rai but market expansion
has resulted in comprehensive group with more goals.
- Logistic Technology is increase channel of transportation and registration
document number. The checking all the transportation and sent across Thailand. The
easy of transportation and quickly that confidence to the product of lost.
36
For the King Carton’s products, they provide the packaging and graphic
designing from paper such as corrugated and cardboard box, set up and die cut box,
paper bag, paper products etc. Even they produce those products but they do not
produce the paper by themselves, they buy it from Chiang Mai. And they also do not
have their product as they want to sell;
they only produce for their customers’
order. Second the price, they set the
price quite reasonable which depend
on the volumes of the order that the
more volumes give the below price
than the less or few volumes.
Next the place, their shop allocate around the left hand side of King Meng Rai
Monument at Robviang district which quite easy to find out. The customers are easy to
understand and aware the address of their shop. They can contract them easily through
their shop, telephone numbers, and website which providing the information of their
business, products, services, and the knowledge about the paper and packaging such as
the important of packaging, etc. Finally the promotion, they provide the advertising on
the brochure with a half page of information about their logo, slogan, address of their
shop and website, telephone numbers, e-mail, and services, etc.
But, in our production division, we use outsourcing; we employ the King Carton
as our production division or we can call them as supplier. The King Carton is received
our orders then produce them. King Carton will supply the papers and other equipments
for us. We don’t need to build the factory and buy the machines, but we need to design,
distribute, and sell the products to our customers. Thus, the King Carton will be our
supply instead of competitor.
2) Customer Analysis
We emphasized on is the customers in Chiang Rai who running the family
business as the mainly customers which one or more members of one or more families
have a significant ownership interest and significant commitments toward the business’
overall well-being. The family businesses in Chiang Rai are such as bakery, handicrafts,
weaving, basketwork, carved wood, etc. which are the vice occupation of customers to
gain more money for their family. The customers usually use the packaging not only for
contain the products, but also help to adding value to their products by the design and
functions of packaging because the important roles of packaging to distribution of
product are increase of the volumes of sale and value added of design product to strong,
beauty and the customers need. Ability to attract customers is attention and trial product
will result in repeat purchases, and also the loyalty of the product which impact to the
increasing sales. (Source: http://www.oknation.net/blog/packaging/2009/10/17/entry-1,
Articles: value-added packaging, 17-10-2009).
38
The most popular products are Oolong tea which commonly consumed and
given as presents. It strengthens health, gets rid of mouth odor, prevents tooth decay,
helps with digesting fat, decreases cholesterol, nourishes the skin, and delays ageing.
Second, cotton’s cloth which is unique, and requires patience meanwhile, it creates
income for community residents. Next, dried vegetables and fruits which attempt to
develop products from raw materials in Chiang Rai and nearby provinces. It aims to
make quality and tasty products that are safe for consumers and easy to eat. And, the
ceramic products which a household production, and has a lot of demands of customers,
but also the carved wood which form of working wood by means of a cutting tool held
in the hand, and resulting in a wooden figure or figurine or in the sculptural
ornamentation of a wooden object. Finally, the food processing which develops the
traditional food, and able to be stored for a long time without stench such as the Fried
Pork Rind which has developed the traditional fried pork rind, and remains crispy for a
long time without stench.. Therefore, we decide to serve both main and vice group of
customers with our packaging which help them to create more value to their products,
and to satisfy their need directly.
3) Competitive Analysis
There are about 1,000 entrepreneurs who provide the paper packaging
businesses in Thailand which mostly are the SMEs, but there are about 597 industries
which have registered to the Department of Industry, and had 14,965 million Baht for
investment and 19,366 people for employment. The industries mostly produce the
corrugated fiberboard boxes for transportation for 600 industries, and others produce the
paperboard boxes for the primary packaging of products, and produce multiwall paper
sacks for contain the cement, animal feed, Chemicals, and plastic, and also produce
shopping bag. Nowadays, the paper packaging of Thailand is ready for material
especially Kraft and paperboard which provide 2.40 and 0.30 million ton of Kraft and
paperboard’s capacity which increasing from year 2003 for 9.7 percent by 95 percent is
the market in country, and 5 percent for exporting.
According to our business, we supply the paper packaging which is the product
that we try to push it to customers and pull customer to us. In Chiang Rai, Paper
packaging industry is not competing strongly. In Muang, Chiang Rai, there is only one
39
famous carton shop: King Carton. But, we employ the King Carton as the supplier who
produces our products to us. Moreover the part of the new entry for packaging business,
it is not easy to invest in this business as the individual business because it is quite high
investment which use too much money for the machines and printers which very
expensive. The potential companies will supply the high and advance technology of
both machines and printers such as CK Carton in Lumphun which is very big and very
advance in production machine and various high printing technique, the customer have
to order in a big lot such as 10,000 or 15,000 unit a time because if just a small unit in
production, it does not break even, they will loss and the customer have to pay at last 50
percent of total cost which is much money. So, those big companies are not point of our
competitor because our customers for our packaging production service is those small
business or family business who cannot order with the big manufacturers, but the
medium and small manufacture of paper packaging is our point, which in Muang
District, Chiang Rai has only one company. Thus, there is a good opportunity to provide
the paper packaging in Chiang Rai which provides more options for customers to select
and order what they really need and want. We will serve the less volumes than the
competitor while serve the large volumes than competitor as well.
40
Table 3.2: The Size of business according to the value of fixed asset in business in
Thailand
Medium
Type of business Small Business Large Business
business
More than 50
1. Production Sector Not more than 50 mill. 50- 200 mill.
mill.
2. Trading Sector
Not more than 50 mill. 50- 200 mill. More than 50mill.
(Service)
3. Trading Sector
- Wholesale Not more than 50 mill. 50- 100 mill. More than 50mill.
- Retail Not more than 30 mill. 50- 60 mill. More than 30 mill.
41
(Source: www.rd.go.th/publish/fileadmin/user_upload/.../SMEs.pdf)
42
3.3.2 Price
Our company decides to set the reasonable price which is depended on the cost
of raw materials especially the cost of papers such as Kraft paper, cardboard, and
corrugated fiberboard and also printing. The price of our products is various which
customers can choose the types of paper as they need and want through the company’s
catalog. The catalog will provide the design and style of papers such as graphic,
cartoon, silky cloth, and natural which depended on the products and customers’ needs.
3.3.3 Place
Idea Plus Company is located on Phahon Yothin Road, Wiang sub-district,
Muang Chiang Rai district, Chiang Rai. The nearby shops are Porncharoern Mirror shop
on the left hand side, RN Paint and Taweeheng shop is on the right hand side and
opposite to Dunlop Center which quite easy to access and flexible for our customers.
The inventory will be stocked in the 3rd floor in the office. The customers can receive
their products by themselves if they prefer, if not we also provide transportation service
for our customers by Nimseeseng Transportation Company. We distribute our products
through Nimseeseng Transportation Company which distribute the products directly to
the customers as door to door service. Nimseeseng Transportation Company had been
establish for several years which is famous professional company in the Northern part
of Thailand and others part because they have many branches around the country, and
provide door-to-door service with the expert skill of transportation. Thus, we use the
Nimseeseng Transportation Company for distribute and transport our products to
customers.
46
3.3.4 Promotion
Ideas Plus Company is emphasis on advertising which for increasing in revenue
and to make the customers know more about our business. We will do more aggressive
advertising, and promote our products through the billboard, brochure, online marketing
as a website, and local radio. Moreover, we provide the sale representatives for
promoting our products with the catalog by door-to-door which help us to gain more
customers directly and closely.
For online marketing, we register our website with HostingLotus that contain
with 10 GB unlimited data transfer, 50 email accounts, and domain. Our website helps
us to distribute our product via the website of our company (www.ideaplus.com) which
customers can contact us at anywhere that they want and convenient. It helps us to reach
more customers and facilitate our customers. Next, we promote our company by Chiang
Rai Radio of Thailand (FM95.75 MHz) for every Saturday and Sunday which quite
popular among our customers.
GPP = ΣVAij
VA = GO - IC
When: GPP = Gross Provincial Products
VA = Value Added*
GO = Gross output**
IC = Intermediate cost***
i = Product 1, 2, 3.....n in production sector j
j = Production sector 1, 2, 3.....16
Then, packaging cost which represents the sales of whole packaging industry for
overall wholesale and retail sector and industry sector would be:
For Idea Plus sales, at first we expect to get only 1% of overall market of these
two sectors. From calculating, the sales would be:
From calculating, we can found that, if we get just only 1% of those two sectors,
income will be 3.92 million baht per month in average and estimate the number from
calculating to be the highest sales of the year which the sales will increase in period of
New Year cerebrate and winter. In this period is high season of Chiang Rai. There are
many travelers and many cerebrate and festival in those periods. Economic of Chiang
Rai expand in this period of the year, there are more trading for both wholesale and
retail including arising of sales for industry, then packaging is also more required.. Thus
Idea Plus estimated the sales as follows:
Estimate sales
Year 1 100%
Year 2 110%
Year 3 120%
Year 4 125%
Year 5 130%
51
Sales Year 3 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Wholesale and
3,123,513 2,890,889 2,712,360 2,464,214 2,515,354 2,575,016 2,717,809 2,608,246 2,771,255 3,089,857 3,217,853 3,234,110 33,920,477
retail sector
Industry sector 1,420,287 1,314,511 1,233,332 1,120,498 1,143,752 1,170,880 1,235,809 1,185,990 1,260,112 1,404,983 1,463,184 1,470,576 15,423,912
Total 4,543,800 4,205,400 3,945,691 3,584,712 3,659,106 3,745,896 3,953,618 3,794,237 4,031,366 4,494,840 4,681,037 4,704,686 49,344,389
54
For Idea Plus, we will not sales on credit in first five years because it’s risky to the company for bad debt, so we will not have account
receivable in these five years.
56
Year 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Marketing expense
Selling expense
Sale commission 83,303 77,099 72,338 65,720 67,084 68,675 72,483 69,561 73,908 82,405 85,819 86,253 904,647
Other selling expense 0
Total selling Expense 83,303 77,099 72,338 65,720 67,084 68,675 72,483 69,561 73,908 82,405 85,819 86,253 904,647
Advertising expense
Radio local 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
Brochure 1,100 0 0 1,100 0 0 1,100 0 0 1,650 0 0 4,950
Plate/Poster/Vinyl 0 0 0 0 9,900 0 0 0 0 16,500 0 16,500 42,900
Souvenir 0 0 0 0 0 0 0 0 0 0 0 11,000 11,000
Public relation 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 13,200
Website 0 0 0 0 0 0 0 0 0 0 0 0 0
Total advertising expense 5,200 4,100 4,100 5,200 14,000 4,100 5,200 4,100 4,100 22,250 4,100 31,600 108,050
Total marketing expense 88,503 81,199 76,438 70,920 81,084 72,775 77,683 73,661 78,008 104,655 89,919 117,853 1,012,697
58
Year 3 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Marketing expense
Selling expense
Sale commission 90,876 84,108 78,914 71,694 73,182 74,918 79,072 75,885 80,627 89,897 93,621 94,094 986,888
Other selling expense 0
Total selling Expense 90,876 84,108 78,914 71,694 73,182 74,918 79,072 75,885 80,627 89,897 93,621 94,094 986,888
Advertising expense
Radio local 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Brochure 1,150 0 0 1,150 0 0 1,150 0 0 1,725 0 0 5,175
Plate/Poster/Vinyl 0 0 0 0 10,350 0 0 0 0 17,250 0 17,250 44,850
Souvenir 0 0 0 0 0 0 0 0 0 0 0 11,500 11,500
Public relation 1,150 1,150 1,150 1,150 1,150 1,150 1,150 1,150 1,150 1,150 1,150 1,150 13,800
Website 1,000 0 0 0 0 0 0 0 0 0 0 0 1,000
Total advertising expense 6,300 4,150 4,150 5,300 14,500 4,150 5,300 4,150 4,150 23,125 4,150 32,900 112,325
Total marketing expense 97,176 88,258 83,064 76,994 87,682 79,068 84,372 80,035 84,777 113,022 97,771 126,994 1,099,213
59
Year 4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Marketing expense
Selling expense
Sale commission 94,663 87,613 82,202 74,682 76,231 78,040 82,367 79,047 83,987 93,643 97,522 98,014 1,028,008
Other selling expense 0
Total selling Expense 94,663 87,613 82,202 74,682 76,231 78,040 82,367 79,047 83,987 93,643 97,522 98,014 1,028,008
Advertising expense
Radio local 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Brochure 1,200 0 0 1,200 0 0 1,200 0 0 1,800 0 0 5,400
Plate/Poster/Vinyl 0 0 0 0 10,800 0 0 0 0 18,000 0 18,000 46,800
Souvenir 0 0 0 0 0 0 0 0 0 0 0 12,000 12,000
Public relation 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400
Website 0 0 0 0 0 0 0 0 0 0 0 0 0
Total advertising expense 5,400 4,200 4,200 5,400 15,000 4,200 5,400 4,200 4,200 24,000 4,200 34,200 114,600
Total marketing expense 100,063 91,813 86,402 80,082 91,231 82,240 87,767 83,247 88,187 117,643 101,722 132,214 1,142,608
60
Year 5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Marketing expense
Selling expense
Sale commission 98,449 91,117 85,490 77,669 79,281 81,161 85,662 82,208 87,346 97,388 101,422 101,935 1,069,128
Other selling expense 0
Total selling Expense 98,449 91,117 85,490 77,669 79,281 81,161 85,662 82,208 87,346 97,388 101,422 101,935 1,069,128
Advertising expense
Radio local 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Brochure 1,250 0 0 1,250 0 0 1,250 0 0 1,875 0 0 5,625
Plate/Poster/Vinyl 0 0 0 0 11,250 0 0 0 0 18,750 0 18,750 48,750
Souvenir 0 0 0 0 0 0 0 0 0 0 0 12,500 12,500
Public relation 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000
Website 500 0 0 0 0 0 0 0 0 0 0 0 500
Total advertising expense 6,000 4,250 4,250 5,500 15,500 4,250 5,500 4,250 4,250 24,875 4,250 35,500 118,375
Total marketing expense 104,449 95,367 89,740 83,169 94,781 85,411 91,162 86,458 91,596 122,263 105,672 137,435 1,187,503
61
Chapter 4
• Box
16 x 24 x 9 cm 3.80 Baht
20.5 x 25 x 9cm 4.50 Baht
17 x 25 x 9 cm 4.20 Baht
13 x 28 x 10 cm 3.50 Baht
- Cardboard paper 12 x 12 x 15 cm 3.50 Baht
10 x 5 x 16 cm 3.50 Baht
10 x 8 x 12 cm 3.50 Baht
30 x 42 x 30cm or
bigger 5 Baht
Note** The price may be changed, depends on size, design, raw material and order size
63
12/15 x 5 x 14 cm 4 Baht
16/20 x 6 x 20 cm 4.50 Baht
24/30 x 9 x 35 cm 5 Baht
9.5 x 5 x 15 cm 5.75 Baht
14 x 5 x 19.5 cm 6.75 Baht
18 x 6 x 30 cm or
bigger 7.50 Baht
Note** The price may be changed, depends on size, design, raw material and order size
Kraft paper can be utilized for many different purposes. One of the most
common uses of the plain brown Kraft paper is in the manufacture of paper bags for use
in grocery stores. The solid construction of Kraft paper makes the bags ideal for use
with all sorts of grocery items. While many grocers have switched to the use of plastic
bags, many supermarket chains continue to offer customers the option of receiving their
purchases in bags made from Kraft paper. Butcher shops often make use of the bleached
Kraft paper as a wrap from fresh cuts of meat. For many years, consumers would place
meats sealed in Kraft paper in the freezer, if the intent was to prepare the meat over the
next few days. While many meat counters at supermarkets now use plastic trays and
plastic seal wrap with their meats, many independent grocers and butcher shops still use
the familiar Kraft paper.
69
Kraft paper is sometimes used for home crafts as well. A section of craft paper is
an ideal medium for the creation of homemade costumes for Halloween or a costume
party. Children can draw on bleached or unbleached Kraft paper without a lot of worry
about markers leaking through to tabletops. People who want to be more natural and
creative with their gift wrap may choose to use inexpensive Kraft paper for wrapping
gifts, often embellishing with other natural elements or using markers or stencils to
create a unique design. Kraft paper is also utilized in other industries as well. In the
publishing industry, Kraft paper is often used as the lining for the inside cover spine of
hardback books. In the world of electronics, Kraft paper is often used as an insulating
agent on electrical components, providing a sturdy yet inexpensive means of protecting
the material. Envelopes for both mailing and use as interoffice communications are
often made with Kraft paper, owing to the relative thickness and sturdy nature of the
paper.
• KA – Confident
Premium Kraft-top liner - golden yellow - Special shade indicating highest
strength class, enduring impact and stacking load very well. Strictly controlled for
consistent color shade and humidity resistance. The first grade officially certified
Thailand Green Label. Ideal for packaging of high-
value or heavy products that require strong packaging
and maximum confidence.
• KS – Supreme
Kraft Top Liner - White bleached virgin pulp top ply provides both very clean
surface and very strong sheet, enduring impact and stacking load as well as resistance
against humidity. Best for packaging of high-value products requiring clean image e.g.
food, frozen food, medical apparatus, exported goods
showing premium image and colorful print graphic.
• KI – Image
Kraft-top liner - bright brown. The clean bright natural brown look is
achieved by virgin pulp top ply with no use of any dye !
The sheet is also strong, bearing impact & stacking load
very well. Perfect alternative for packaging with colorful
print graphic, due to light and bright shade substrate.
• KP-Pan Pacific
Kraft-top liner - brown. With unbleached long fiber pulp top ply, it looks
similar to papers in USA or packaging of products exported
there. It also has high strength, withstanding impact and
stacking very well. Suitable for heavy goods for export.
2) Cardboard Paper
Cardboard is a generic term for heavy-duty paper-based products sometimes
made by pasting together two or more layers of paper. It is used to make playing cards,
signs, boxes, and other things. Synonyms include paperboard and pasteboard. In
industry, the term cardboard is seldom used because it does not denote a specific
material.
Paperboard is a paper-based material, usually less than about ten mils (0.010-
inches (0.25-mm)) in thickness. It is often used for folding cartons, set-up boxes, carded
packaging, etc. Cardboard boxes are industrially prefabricated boxes, primarily used for
packaging goods and materials.
3) Corrugated fiberboard
Common flute sizes are "A", "B", "C", "E" and "F" or micro flute. The letter
designation relates to the order that the flutes were invented, not the relative sizes. Flute
size refers to the number of flutes per lineal foot, although the actual flute dimensions
72
for different corrugators manufacturers may vary slightly. Measuring the number of
flutes per lineal foot is a more reliable method of identifying flute size than measuring
board thickness, which can vary due to manufacturing conditions. The most common
flute size in corrugated boxes is "C" flute.
A flute – can be overlapped for many items and can protect the goods inside. A
flute is the original and largest flute. When combined the flute with both inside and
outside cover, it will be the most thickness of corrugated with about 36 flutes a foot.
When take the A flute to produce a corrugated paper box, will be able to receive the
shock and can be most layer overlapped. It’s ideal for packing fragile products because
a flute has high level of strength. So, a flute has been applied for a variety of customer
needs.
components in the box. More B flute is suitable for packing the canned food and also
for produce complicate Die-Cut box and beverage tray.
C flute – can be overlaid and protect the goods well, the most popular used,
suitable for packaging furniture and glassware. C flute was later discovered to include
the difference between flute A and B together. A flute has 42 flutes per foot. Less
thickness than A flute but more than flute B. That makes flute C has feature in receive
the shock and overlapping force. Printing quality is mix seamlessly. So flute C is the
most popular used in the present. When compared with other corrugated flute,
approximately 80% of corrugated paper packaging today are produced from flute C
corrugated paper.
• Officers will offer the catalog of company’s products to customers and let them
to see show room to make them have the choice for make decision, if they want some
more advice about their packaging design or ask to design their packaging, the designer/
special graphic officer will advise to you
• Customers can choose the materials, design, and details from catalog and some
more features depend on their want and order.
• After, the orders are placed, the spec of product will be recheck and confirm by
the customer for those kind of product they order
76
• After customer place order, even come to see us at the company, or via sales
person, or other way, Idea Plus will transmit customer order to the suppliers to produce
• After the finish order, it will be serve to customers or will be stock at the
company and customers come to get it by themselves, depend on the contact.
• The company will not response for the mistake that checked and confirm by
customers be for production.
The manufacturing sequence can follow many different paths depending on the
nature of a box design and how it is decorated. Board leaving the corrugating machine
might be natural Kraft or any one of the several white surfaced or solid white Krafts.
The top linerboard may be unprinted, or the linerboard may have been preprinted. For a
regular RSC, a flat sheet, cut to the box’s overall dimensions and with the flap scores in
place, is sent through a single machine that prints, panel-scores and slots, folds, and
glues the box in one operation. An RSC that has a preprinted liner already in place as it
leaves the corrugating machine needs to be panel scored and slotted, folded, and glued.
Preprinted blanks intended for complex box designs other than RSC styles are sent for
rotary or flat-bed die-cutting and then folding and gluing. Die-cut boxes leave the
corrugating machine as flat unscored sheets. They can be decorated by direct printing or
by applying preprinted lithographed labels (litho labeling). After the appropriate
decorating, the blank is sent for die-cutting, folding and gluing. Litho-laminating is a
less common process. It laminates a lithographically printed label paper (not kraft) to a
single faced board, usually using a specialized, small corrugating machine. The process
is most often done with E- or smaller flutes.
77
2.1) Dimensioning
A box’s length is always the greater of the flap opening dimension. Depth is the
inside dimension between the top and bottom inner flaps. The order in which dimension
are reported records where the opening will be. Top-loading boxes present the largest
opening for ease of loading, but they use the greatest board area to enclose a given
volume. End-opening boxes use the least board for the same volume, but they have the
smallest opening. Side openers are intermediate. An end-opening box is, thus, the most
economical if it can be used in a system.
When laying out a box, allowance must be made for the material that will form
the scores.
Natural/bleached
Reverse scored Printer/slotter/folder/gluer
RSC
Preprinted
Reverse scored slotter/folder/gluer
Natural/bleached Printer
Sheet stock Die cut box
Litho-labeling
Preprinted
Sheet stock Flat-bed/rotary die-cutter Folder/gluer
Figure 4.15: The production of a corrugated box can follow many different
paths through a corrugating plant’s various machines.
78
Corrugated board folds by collapsing in on its, and the lines drawn on a flat
sheet will not be equal to the finished box dimensions. Scoring allowances (K) are
added, based on the box design, flute, material, and on the type of scoring wheels used.
When discussing box sizes with a supplier, it always sends the product or a sample box.
In the event that you must size a box accurately, follow these directions:
1. Tear or cut the box open at the manufacturer’s joint and lay it face down.
2. Determine box style, board and flute.
3. Accurately mark the exact center line of the panel and flap scores.
4. Accurately measure between the centers marks of the second and third panels.
Do not measure the first or fourth panels.
5. Subtract scoring allowances as dictated by step 2. The result is the box length
and width.
6. Repeat steps4 and5, measuring between the end scores. The result is the box
depth.
4.1.4 Location
For location, Idea Plus building is the green two blogs with tree floors building
which is located on Phahon Yothin Road, Wiang sub-district, Muang Chiang Rai
district, Chiang Rai. The nearby shops are Porncharoern Mirror shop on the left hand
side, RN Paint and Taweeheng shop is on the right hand side and opposite to Dunlop
Center.
Mae Sai N
Chiang Rai
King Meng Rai
Monument
Idea Plus
RN Paint
Taweeheng
• Layout inside
First floor
Dry Chemical Fire Extinguisher
83
84
Second floor
85
2. Meeting Room
86
3. Common Room
4. Office zone
87
5. Toilet zone
Third floor
For third floor is warehouse which used for store inventoty that waiting for
receive by customers (not stock inventory for sale)
Plastic Pallet
Dry Chemical Fire
Extinguisher
88
Receptionist zone
- Electronic hold on
First Price per Total
Item Picture Detail Units
Floor unit (Baht) (Baht)
- 16-digit, adjustable tilt, large
display
Calculator 16 - MU, TAX+,TAX- keys
Digit - IT-Touch (Like a keyboard) 1 450 450
- GT key, delete key
- Dual power: solar and battery
First
- Dimensions:15.0x19.8x3.8 cm
floor
- Cork surface
- Quality wooden frame
Cork Board - Bulletin board 1 630 630
W1" x 15mm. thick wooden frame
- Dimensions: 60x90 cm.
90
Show Room
- Color: Cream
Shop window II 3 3,000 9,000
- Size: 140 x 200 x 45 cm
92
- Shelf SP-220
First - Color Cream
Shelf 18 600 10,8000
floor - Size 92.4x85.1x14mm.
-Sub-shelf Size 89.9x40.3x29 mm
- Warrantee 5 Years
- Description: Common materials
such as paper, wood or most other
First combustibles.
floor Dry Chemical - Fire Rating: 2A 2B , 4A 5B and
Fire 6A 20B 1 1,490 1,490
Additiona Extinguisher - Size 10 Lbs.
l -Chemical weight 4.50 kg.
-Device weight 3.10 kg.
- Total weight 7.60 kg.
- High 20.00 inch
93
First
Air conditioner Already provided in the building - - -
floor
Toilet ** Toilet is already provided in the building don’t need to build a new one**
First
floor Mirror Already provided in the building - - -
** Toilet is already provided in the building don’t need to build a new one**
94
Office zone
- Partition Series 1
Office Partition - 156 cm. Height * (40, 60, 75, 80, 20 1,400 28,000
90, 100, 120 cm. Width)
96
Meeting Room
- LG Microwave
Microwave MS-2127CW 1 2,190 2,190
- size 21 liters
Air
Already provided in the building - - -
conditioner
Toilet ** Toilet is already provided in the building don’t need to build a new one**
Second
floor Mirror Already provided in the building - - -
Warehousing
- Warrantee 5 Years
- Description: Common materials such
as paper, wood or most other
combustibles.
Third Dry
- Fire Rating: 2A 2B , 4A 5B and 6A
floor Chemical
20B 1 1,490 1,490
Fire
- Size 10 Lbs. High 20.00 inch
Additional Extinguisher
-Chemical weight 4.50 kg.
-Device weight 3.10 kg.
- Total weight 7.60 kg.
- Pressure 400 Lbs./inch2
106
Equipments
Price per Total
Floor Zone No. Item Units
unit (Baht) (Baht)
1 Reception Counter 1 35,000 35,000
2 Desktop PC I 1 11,499 11,499
3 Telephone 1 499 499
Receptionist
4 Calculator 16 Digit 1 450 450
zone
5 Cork Board 1 630 630
First 6 Cold water - Hot water 1 5500 5,500
floor 7 Sofa Set 1 2,400 2,400
8 Shop window I 5 2,000 10,000
Show Room 9 Shop window II 3 3,000 9,000
10 Shelf 18 600 10,800
Dry Chemical Fire
Additional 11 1 1,490 1,490
Extinguisher
12 Office Desk Set 4 4,700 18,800
13 Desktop PC I 4 11,499 45,996
14 Telephone 4 499 1,996
15 Calculator 16 Digit 3 450 1,350
16 Office Partition 20 1,400 28,000
Office zone
17 Cork Board 2 631 1,262
18 Drawing Table 1 3,500 3,500
19 File cabinet 7 6,580 46,060
20 Multi-function Laser 1 6,990 6,990
21 Shop window I 2 2,000 4,000
Board of 31 Manager Chair 2 4,100 8,200
Director and 32 File cabinet 2 6,580 13,160
Second
General 33 Telephone 2 499 998
floor
Manger Room 34 Desktop PC I 2 11,499 22,998
22 Office Meeting Set 1 14,090 14,090
23 Computer Desk 1 950 950
Meeting Room
24 Blinds 1 3,390 3,390
25 Desktop PC I 1 11,499 11,499
26 Cold water - Hot water 1 5500 5,500
27 Microwave 1 2190 2,190
Common
28 Kitchen cabinet 1 2800 2,800
Room
29 Refrigerator 1 5,490 5,490
30 Dining Table 2 3,500 7,000
Dry Chemical Fire
Additional 35 1 1,490 1,490
Extinguisher
107
Office Supplies
Price per
No. Item Picture Detail Units
unit (Baht)
- 0.5 mm.
1 Lancer Spiral box 225
- Ribbed barrel for skip-free writing
- Color: blue, red, and black
- 22 ml. bottle
- Extra fine point correction tip for extra
2 Correction Pen precision box 270
Price per
No. Item Picture Detail Units
unit (Baht)
Time Card
5 - Standard Time Card
pack 118
100/pk
- 2-5 mm.
- Ideal for plain paper or fax paper
Highlighter
6 - Large ink supply for longer writing over box 204
450m.
Color: blue, green, yellow, pink, orange
110
Price per
No. Item Picture Detail Units
unit (Baht)
Price per
No. Item Picture Detail Units
unit (Baht)
- A4 (210x297 mm.) , 80 gsm.
- Smooth surface
11 A4 Paper case 407
- 5000 sheets/ream,
- 5 reams/case
- Self-inking stamp
- Clear impression
Quick Rubber - Refillable All-day cap less without
13 item 99
Stamp drying
- Various stamps’ types
- ก
กก
112
Price per
No. Item Picture Detail Units
unit (Baht)
- Corrosion-resistant
- stainless-steel construction with ABS
17 Cutter item 29
reinforced body
- Blade pocket
113
Price per
No. Item Picture Detail Units
unit (Baht)
Price per
No. Item Picture Detail Units
unit (Baht)
Customer order
transmittal
Suppliers) factory
Customer Retail
Outlet
Order
Delivery
Customers
Idea Plus Company use logistic for process of planning, implementing, and
controlling the efficient, effective flow and storage of goods, services, and related
information from point of origin to point of consumption for the purpose of conforming
to customer requirements. Logistics’ Idea Plus Company start form customer order,
company has a correct information that customer need such as number of product, style
119
of product, right time and place for shipment product to customer. Transportation
product, Idea Plus Company use logistic service from Nim See Seng Transport for
shipping our product through customer because Nim See Seng Transport has a good
professional about logistic service. So, Idea Plus Company outsource the logistics
management by contract with Nim See Seng Transport. Then, Idea Plus don’t have to
hold the cost of the vehicle which means we don’t have to buy many cars or truck and
drivers to transport to the customers and don’t need to take the risk or some expense
like fuel cost, maintenance cost, registration and car insurance cost, depreciation and
other more in each year. Thus, outsourcing for Nim See Seng Transport will make the
company pay less expense in shipping the products to customers.
Furthermore, we consider about our suppliers which are not only King Carton
Company, but also CK Carton which allocate around Au-Mong district, Lamphun
province. They produce paper and paper boxes by them which quite famous and large
company among the Northern part. And Lampang Packaging Company Limited who
produce and provide paper boxes which allocate around Munag district, Lampang
province. They produce the corrugated paper, and cardboard paper products which
registration in year 1988. Next, The Box Company Limited who also produce and
provide paper boxes. They allocate around Munag district, Lampang province too, etc.
We consider to seek more suppliers because we want to have the quality products and
protect the over demand to delivery our products in the right place at the right time.
120
Shop window I
Shop window II
Shelf
Reception
Counter
Sofa Set
Cold water -
Hot water
Tree/ flowerpot
Door
121
Receptionist zone
Show Room
First floor
Shop window - Size 200 x185 x 50 cm.
5 2,000 10,000
I - 4 pieces of glass
- Shelf SP-220
- Color Cream
First floor Shelf 18 600 10,8000
- Size 92.4x85.1x14mm.
-Sub-shelf Size 89.9x40.3x29 mm
- Warrantee 5 Years
- Description: Common materials
such as paper, wood or most other
combustibles.
- Fire Rating: 2A 2B , 4A 5B and
First floor Dry Chemical
6A 20B
Fire 1 1,490 1,490
- Size 10 Lbs.
Additional Extinguisher
-Chemical weight 4.50 kg.
-Device weight 3.10 kg.
- Total weight 7.60 kg.
- High 20.00 inch
- Pressure 400 Lbs./inch2
125
For Company’s name signboard would be ordered from Klin See Advertising
shop because they provide installation service. Klin See Advertising shop is located at
Moo.4 Phahon Yothin Road, Wieng Sub-District, Muang District, Chiang Rai. Contact
Mr. Somnuek Srisansai, telephone number: 08-1672-1802, email: sa_bse@hotmail.com.
The signboard would be light box with white background and letter would be in green.
The letters and picture is made by special sticker which use for outdoor signboard, long
lasting for 5-7 years according to the sun light and the rain. The total size including
background is about 1.5 maters high and 4 maters for wide (not include picture). The
front is settled for 1 mater high. For the picture is settled for 2 meters wide. Total
company’s name signboard is 6 matters wide. The price for company’s name signboards
is 180 baht per square feet, for total is 18,955 baht include installation service.
Signboard is means board to show the name, the brand name or trademark used
in commercial operations and advertising or activities to earn money and other
revenue. Whether it is ads to show on the material or any picture or mark with letters
written inscription carved or made visible by other means.
Idea plus company name’s signboard is made in Thai and English language
including picture, thus we are according to second kind of signboard which is including
126
the Thai letter mix with foreign language or mix with other pictures or signs, tax rate
would be 20 bath per 500 square centimeters. For Idea Plus’s signboard size is 90,000
(from 600 cm2 * 150 cm2) square centimeters. Then, signboard tax would be 3,600 baht.
For this matter, the tax will be paid at Department of revenue development,
Bureau of financial, Chiang Rai Sub-district Administration Organization. Telephone
no. 0-5374-2663
For new installation signboard, the documents for tax payer are as follow:
4) Rubber stamp
5) Registration
Limited company is which shareholders enjoy limited liability, i.e. limited to the
remaining unpaid amount, if any, of the par value of their shares. The liability of the
directors, however, may be unlimited if stipulated. Limited company is managed by a
board of directors in accordance with the company's charter and by-laws.
The company’s name is: Idea Plus+, located on Phahon Yothin Road, Wiang
sub-district, Muang Chiang Rai district, Chiang Rai.
Promoters
Company promoters are responsible for registering the company with the
Ministry of Commerce (MOC) and required at least 3 persons singing together. The
promoters must be individuals (not juristic persons) who are 20 years of age or older,
and they must be available to sign documentation during the registration process which
for Idea Plus, the promoter are included five partners as followed:
For the resolution of the group, the partners discuss to promote Miss Suratt
Sukpueng to be the board of director which needs to precede the procedures for
establishing a company as the Limited company at Office of Commercial Affairs
Chiang Rai Office.
128
1. Suratt Sukpueng
2. Pajaree Zongsri
3. Pattarairi Peathong
4. Surarat Ruankaew
5. Ajcharapun Paewkasem
For register for company limited’s establishment fee is 500 baht per 100,000
baht of registered capital. The minimum fee is 500 baht and the maximum fee is 25,000.
For Idea Plus, total fee for memorandum and company limited registration is
1,750 baht. (The fee rate for registering company limited is in appendix)
6) Benefit Divided
For stakeholders and investors in Idea Plus will benefit from this investment.
These people will get benefit return from investment which will come from income of
company. Idea Plus divides income in to 3 parts which the first is for principle and 15%
interest investors. After pay interest for investor the money will be allocated 55% for
promoters or shareholders equally and another 45% is for company to maintain liquidity
in invest in next year in company.
129
7) Telephone installation
For telephone, we contact with TT & T Center in Sri sai moon, Chiang Rai for
installation. The TT&T office is located at 110/3 Moo11 Nongbua Road, Robciang Sub-
District, Muang Distric, Chiang rai Telephone number at the office is 0-5374-7003-4.
The documents for telephone installation for justice person are as follow:
1) A copy of a certificate of justice person, not exceeding 90 days
2) A copy of identification card of authorized representative signing entity.
3) If you need to authorize to representative of the company, the copy of ID card
of authorized person is required
4.) Company seal and signed copy of a valid certificate.
Note** to install the phone calls, the distance must be distributed no more than
300 meters. If the distance is more than 300 meters, it will be cost 350 baht for each 50
meters. (The last distance, if less than 25 meters will not be charged).
But the distance is no more than 300 meters because we have the near electric
line such as Taweeheng, Porncharoen mirror and St. Peter hospital, then Idea Plus does
not need to pay more for charge in addition.
130
8) Internet installation
For internet, use the service and installed the internet by TT & T which serve
Maxnet Broadband Internet at center service in Sri sai moon, Chiang Rai for
installation. The TT&T office is located at 110/3 Moo11 Nongbua Road, Robciang Sub-
District, Muang Distric, Chiang rai Telephone number at the office is 0-5374-7003-4,
similar to installation of the phone call.
The internet package that we choose is 3BB Indy- Indy 4 Mb. Speed is 4096/512
kbps and the price is 590 baht per month (not include VAT). For this package, there are
no fees for register; installation; arrester tools and installation internal electric line, all of
these are free but need for 1 month prepaid.
* No installation fee but need 1 month prepaid which is 590 baht per month plus
VAT 7%, thus equal to 631.30 baht.
131
• Tile
The Aluminum mirror will be installed for frontal of the building. The
thickness of the mirror is 5 mm for approximately 24 square meters and 2 meters wide
for the swing door. Another installation is for interior of building and window which are
approximately 20 square meters. The cost for installation of mirror is 5,000 per square
meter including UPVC and service. Thus, total cost is 230,000 baht. The aluminuim
mirror will be provided by HEVTA Engineering Team which located at 35/183 moo.2,
Ekachai--Bangbon Rd., Bangkok. Contact at HEVTA Call Center: 085-0707990 (-1)
and email is info@hevta.com
Decoration Cost
Color cost 8,330
Wage for painting 12,860
Tile 42,750
Wage for tiling 11,250
Aluminum mirror
installation
230,000
Total 305,190
133
• Office Supplies
• Depreciation
Depreciation Year1
Total Cost
Zone No. Item Units Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
(Baht)
1 Reception Counter 1 35,000 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 583.33 7,000.00
2 Desktop PC I 1 11,499 319.42 319.42 319.42 319.42 319.42 319.42 319.42 319.42 319.42 319.42 319.42 319.42 3,833.00
3 Telephone 1 499 8.32 8.32 8.32 8.32 8.32 8.32 8.32 8.32 8.32 8.32 8.32 8.32 99.80
Receptionist 4 Calculator 16 Digit 1 450 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 90.00
zone 5 Cork Board 1 630 10.50 10.50 10.50 10.50 10.50 10.50 10.50 10.50 10.50 10.50 10.50 10.50 126.00
Cold water - Hot
6 1 5,500 91.67 91.67 91.67 91.67 91.67 91.67 91.67 91.67 91.67 91.67 91.67 91.67 1,100.00
water
7 Sofa Set 1 2,400 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 480.00
8 Shop window I 5 10,000 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 2,000.00
Show Room 9 Shop window II 3 9,000 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 1,800.00
10 Shelf 18 10,800 180.00 180.00 180.00 180.00 180.00 180.00 180.00 180.00 180.00 180.00 180.00 180.00 2,160.00
Dry Chemical Fire
Additional 11 1 1,490 24.83 24.83 24.83 24.83 24.83 24.83 24.83 24.83 24.83 24.83 24.83 24.83 298.00
Extinguisher
12 Office Desk Set 4 18,800 313.33 313.33 313.33 313.33 313.33 313.33 313.33 313.33 313.33 313.33 313.33 313.33 3,760.00
13 Desktop PC I 4 45,996 1,277.67 1,277.67 1,277.67 1,277.67 1,277.67 1,277.67 1,277.67 1,277.67 1,277.67 1,277.67 1,277.67 1,277.67 15,332.00
14 Telephone 4 1,996 33.27 33.27 33.27 33.27 33.27 33.27 33.27 33.27 33.27 33.27 33.27 33.27 399.20
15 Calculator 16 Digit 3 1,350 22.50 22.50 22.50 22.50 22.50 22.50 22.50 22.50 22.50 22.50 22.50 22.50 270.00
16 Office Partition 20 28,000 466.67 466.67 466.67 466.67 466.67 466.67 466.67 466.67 466.67 466.67 466.67 466.67 5,600.00
Office zone 17 Cork Board 2 1,262 21.03 21.03 21.03 21.03 21.03 21.03 21.03 21.03 21.03 21.03 21.03 21.03 252.40
18 Drawing Table 1 3,500 58.33 58.33 58.33 58.33 58.33 58.33 58.33 58.33 58.33 58.33 58.33 58.33 700.00
19 File cabinet 7 22,330 372.17 372.17 372.17 372.17 372.17 372.17 372.17 372.17 372.17 372.17 372.17 372.17 4,466.00
Multi-function
20 1 6,990 116.50 116.50 116.50 116.50 116.50 116.50 116.50 116.50 116.50 116.50 116.50 116.50 1,398.00
Laser Printer
21 Shop window I 2 4,000 66.67 66.67 66.67 66.67 66.67 66.67 66.67 66.67 66.67 66.67 66.67 66.67 800.00
Board of 31 Manager Chair 2 8,200 136.67 136.67 136.67 136.67 136.67 136.67 136.67 136.67 136.67 136.67 136.67 136.67 1,640.00
Director and 32 File cabinet 2 6,380 106.33 106.33 106.33 106.33 106.33 106.33 106.33 106.33 106.33 106.33 106.33 106.33 1,276.00
General 33 Telephone 2 998 16.63 16.63 16.63 16.63 16.63 16.63 16.63 16.63 16.63 16.63 16.63 16.63 199.60
Manger Room 34 Desktop PC I 2 22,998 638.83 638.83 638.83 638.83 638.83 638.83 638.83 638.83 638.83 638.83 638.83 638.83 7,666.00
22 Office Meeting Set 1 14,090 234.83 234.83 234.83 234.83 234.83 234.83 234.83 234.83 234.83 234.83 234.83 234.83 2,818.00
23 Computer Desk 1 950 15.83 15.83 15.83 15.83 15.83 15.83 15.83 15.83 15.83 15.83 15.83 15.83 190.00
Meeting Room
24 Blinds 1 3,390 56.50 56.50 56.50 56.50 56.50 56.50 56.50 56.50 56.50 56.50 56.50 56.50 678.00
25 Desktop PC I 1 11,499 319.42 319.42 319.42 319.42 319.42 319.42 319.42 319.42 319.42 319.42 319.42 319.42 3,833.00
Cold water - Hot
26 1 5,500 91.67 91.67 91.67 91.67 91.67 91.67 91.67 91.67 91.67 91.67 91.67 91.67 1,100.00
water
Common 27 Microwave 1 2,190 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 438.00
Room 28 Kitchen cabinet 1 2,800 46.67 46.67 46.67 46.67 46.67 46.67 46.67 46.67 46.67 46.67 46.67 46.67 560.00
29 Refrigerator 1 5,490 91.50 91.50 91.50 91.50 91.50 91.50 91.50 91.50 91.50 91.50 91.50 91.50 1,098.00
30 Dining Table 2 7,000 116.67 116.67 116.67 116.67 116.67 116.67 116.67 116.67 116.67 116.67 116.67 116.67 1,400.00
Dry Chemical Fire
Additional 35 1 1,490 24.83 24.83 24.83 24.83 24.83 24.83 24.83 24.83 24.83 24.83 24.83 24.83 298.00
Extinguisher
Warehousing 36 Plastic Pallet 10 4,000 66.67 66.67 66.67 66.67 66.67 66.67 66.67 66.67 66.67 66.67 66.67 66.67 800.00
Dry Chemical Fire
Additional 37 1 1,490 24.83 24.83 24.83 24.83 24.83 24.83 24.83 24.83 24.83 24.83 24.83 24.83 298.00
Extinguisher
Total 319,957 6,354.75 6,354.75 6,354.75 6,354.75 6,354.75 6,354.75 6,354.75 6,354.75 6,354.75 6,354.75 6,354.75 6,354.75 76,257.00
139
Depreciation Year2
Total Cost Depre Accu Savage
Zone No. Item Unit
(Baht) (Annually) Depre value
1 Reception Counter 1 35,000 7,000 14,000 21,000
2 Desktop PC I 1 11,499 3,833 7,666 3,833
3 Telephone 1 499 100 200 299
Receptionist
4 Calculator 16 Digit 1 450 90 180 270
zone
5 Cork Board 1 630 126 252 378
6 Cold water - Hot water 1 5,500 1,100 2,200 3,300
7 Sofa Set 1 2,400 480 960 1,440
8 Shop window I 5 10,000 2,000 4,000 6,000
Show Room 9 Shop window II 3 9,000 1,800 3,600 5,400
10 Shelf 18 10,800 2,160 4,320 6,480
Dry Chemical Fire
Additional 11 1 1,490 298 596 894
Extinguisher
12 Office Desk Set 4 18,800 3,760 7,520 11,280
13 Desktop PC I 4 45,996 15,332 30,664 15,332
14 Telephone 4 1,996 399 798 1,198
15 Calculator 16 Digit 3 1,350 270 540 810
16 Office Partition 20 28,000 5,600 11,200 16,800
Office zone
17 Cork Board 2 1,262 252 505 757
18 Drawing Table 1 3,500 700 1,400 2,100
19 File cabinet 7 22,330 4,466 8,932 13,398
20 Multi-function Laser 1 6,990 1,398 2,796 4,194
21 Shop window I 2 4,000 800 1,600 2,400
Board of 31 Manager Chair 2 8,200 1,640 3,280 4,920
Director and 32 File cabinet 2 6,380 1,276 2,552 3,828
General 33 Telephone 2 998 200 399 599
Manger 34 Desktop PC I 2 22,998 7,666 15,332 7,666
Room
140
Depreciation Year3
Total Cost Depre Accu Savage
Zone No. Item Units
(Baht) (Annually) Depre value
1 Reception Counter 1 35,000 7,000 21,000 14,000
2 Desktop PC I 1 11,499 3,833 11,499 -
3 Telephone 1 499 100 299 200
Receptionist
4 Calculator 16 Digit 1 450 90 270 180
zone
5 Cork Board 1 630 126 378 252
6 Cold water - Hot water 1 5,500 1,100 3,300 2,200
7 Sofa Set 1 2,400 480 1,440 960
8 Shop window I 5 10,000 2,000 6,000 4,000
Show Room 9 Shop window II 3 9,000 1,800 5,400 3,600
10 Shelf 18 10,800 2,160 6,480 4,320
Dry Chemical Fire
Additional 11 1 1,490 298 894 596
Extinguisher
12 Office Desk Set 4 18,800 3,760 11,280 7,520
13 Desktop PC I 4 45,996 15,332 45,996 -
14 Telephone 4 1,996 399 1,198 798
15 Calculator 16 Digit 3 1,350 270 810 540
16 Office Partition 20 28,000 5,600 16,800 11,200
Office zone
17 Cork Board 2 1,262 252 757 505
18 Drawing Table 1 3,500 700 2,100 1,400
19 File cabinet 7 22,330 4,466 13,398 8,932
20 Multi-function Laser 1 6,990 1,398 4,194 2,796
21 Shop window I 2 4,000 800 2,400 1,600
Board of 22 Manager Chair 2 8,200 1,640 4,920 3,280
Director and 23 File cabinet 2 6,380 1,276 3,828 2,552
General 24 Telephone 2 998 200 599 399
Manger 25 Desktop PC I 2 22,998 7,666 22,998 -
Room
142
Depreciation Year4
Total Cost Depre Accu Savage
Zone No. Item Unit
(Baht) (Annually) Depre value
1 Reception Counter 1 35,000 7,000 28,000 7,000
2 Desktop PC I 1 11,499 0 0 -
3 Telephone 1 499 100 399 100
Receptionist
4 Calculator 16 Digit 1 450 90 360 90
zone
5 Cork Board 1 630 126 504 126
6 Cold water - Hot water 1 5,500 1,100 4,400 1,100
7 Sofa Set 1 2,400 480 1,920 480
8 Shop window I 5 10,000 2,000 8,000 2,000
Show Room 9 Shop window II 3 9,000 1,800 7,200 1,800
10 Shelf 18 10,800 2,160 8,640 2,160
Dry Chemical Fire
Additional 11 1 1,490 298 1,192 298
Extinguisher
12 Office Desk Set 4 18,800 3,760 15,040 3,760
13 Desktop PC I 4 45,996 0 0 -
14 Telephone 4 1,996 399 1,597 399
15 Calculator 16 Digit 3 1,350 270 1,080 270
16 Office Partition 20 28,000 5,600 22,400 5,600
Office zone 17 Cork Board 2 1,262 252 1,010 252
18 Drawing Table 1 3,500 700 2,800 700
19 File cabinet 7 22,330 4,466 17,864 4,466
Multi-function Laser
20 1 6,990 1,398 5,592 1,398
Printer
21 Shop window I 2 4,000 800 3,200 800
Board of 22 Manager Chair 2 8,200 1,640 6,560 1,640
Director and 23 File cabinet 2 6,380 1,276 5,104 1,276
General 24 Telephone 2 998 200 798 200
Manger 25 Desktop PC I 2 22,998 0 0 -
Room
144
Depreciation Year5
Total Cost Depre Accu Savage
Zone No. Item Unit
(Baht) (Annually) Depre value
1 Reception Counter 1 35,000 7,000 35,000 -
2 Desktop PC I 1 11,499 0 0 -
3 Telephone 1 499 100 499 -
Receptionist
4 Calculator 16 Digit 1 450 90 450 -
zone
5 Cork Board 1 630 126 630 -
6 Cold water - Hot water 1 5,500 1,100 5,500 -
7 Sofa Set 1 2,400 480 2,400 -
8 Shop window I 5 10,000 2,000 10,000 -
Show Room 9 Shop window II 3 9,000 1,800 9,000 -
10 Shelf 18 10,800 2,160 10,800 -
Dry Chemical Fire
Additional 11 1 1,490 298 1,490 -
Extinguisher
12 Office Desk Set 4 18,800 3,760 18,800 -
13 Desktop PC I 4 45,996 0 0 -
14 Telephone 4 1,996 399 1,996 -
15 Calculator 16 Digit 3 1,350 270 1,350 -
16 Office Partition 20 28,000 5,600 28,000 -
Office zone 17 Cork Board 2 1,262 252 1,262 -
18 Drawing Table 1 3,500 700 3,500 -
19 File cabinet 7 22,330 4,466 22,330 -
Multi-function Laser
20 1 6,990 1,398 6,990 -
Printer
21 Shop window I 2 4,000 800 4,000 -
Board of 22 Manager Chair 2 8,200 1,640 8,200 -
Director and 23 File cabinet 2 6,380 1,276 6,380 -
General 24 Telephone 2 998 200 998 -
Manger 25 Desktop PC I 2 22,998 0 0 -
Room
146
• Company’s Polo-Shirt
The shirt will be blue with company logo in the front and company mane and
slogan on the back
Company Logo
•
Idea Plus+
Package Design by Idea
•
•
•
•
•
•
•
•
• Organization Chart
Idea Plus company management team will contain with the departments
are as following:
• Team Management
Job description:
Qualifications:
Job description:
Qualifications:
Job description:
Qualifications:
- Male/Female
- Age over 24 years old
- Bachelor’s Degree in Marketing or related field
- 2 years working experience
- Exhibition organizer is a plus
- Good interpersonal and communication skill
- Good command in English and computer literacy
Job description:
- To serve as the main point of contract for customers request and need
- Responsible for answering calls in order
- Willing to build a long-term relationship with the customers
- Checking stock that waiting for receiving by customers
- Give information to customers
152
Qualifications:
- Male
- Age 25 years or older
- Bachelor’s Degree in Marketing, Statistic or related field
- Good command of English and computer literacy
- Strong in inter-personality and supervisory
- Good characteristic and fast learning and service mind
Job description:
Qualifications:
- Male/Female
- Bachelor's Degree in Arts Graphic or related field.
- Fresh graduated are welcome
- Good knowledge in IT and designing and computer programs such as
Adobe illustrator, Photoshop, Nedgraphic, etc.
- Good command in English
153
Job description:
Qualifications:
7) House keeper
Job description:
Qualifications:
- Female
- Good relationship and responsibility
• Employees Salary
Salary
No. Position Rank
(baht)
1 General Manager 1 position 15,000
2 Accounting and Financial 1 position 8,500
3 Marketing 1 position 8,500
4 Customer Service 1 position 7,500
5 Graphic & Package Design 1 position 8,500
6 Receptionist & Administration 1 position 7,500
7 Housekeeper 1 position 5,000
Total 60,500
155
Idea Plus will separate the office supplies expense according to each
quarter of the year. For the first quarter of every year, the office supplies list and
expense is as below:
Price Total
No. Item Units
per unit (Baht)
1 Lancer Spiral 1 boxes 225 225
2 Correction Pen 1 box 270 270
3 Post-it Note 1 pack 109 109
4 Folder 8 packs 329 2,632
5 Time Card 1 pack 118 118
6 Highlighter 1 box 204 204
7 Eraser 1 box 73 73
8 HB Pencil 1 box 30 30
9 Paper Clip 2 packs 80 160
10 Binder clips 1 box 110 110
11 A4 Paper 2 cases 407 814
12 Stapler 4 39 156
13 Quick Rubber Stamp 12 99 1,188
14 Staple 1 pack 95 95
15 Paper Punch 2 148 296
16 Scissors 3 30 90
17 Cutter 2 29 58
18 Cutter Blade 2 packs 30 60
19 Cutting Matt 2 270 540
20 Bill Rack 3 20 60
21 Stainless Ruler 3 32 96
22 Fingertip Moistener 2 30 60
23 Organizer Tray 2 130 260
24 Document Tray 2 190 380
Total 8,084
156
For the second, third and fourth quarter of every year, the office supplies
expense will be as following:
Price Total
No. Item Units
per unit (Baht)
1 Lancer Spiral 1 boxes 225 225
2 Correction Pen 1 box 270 270
3 Post-it Note 1 pack 109 109
4 Time Card 1 pack 118 118
5 Highlighter 1 box 204 204
6 Eraser 1 box 73 73
7 HB Pencil 1 box 30 30
8 Paper Clip 2 packs 80 160
9 Binder clips 1 box 110 110
10 A4 Paper 2 cases 407 814
11 Staple 1 pack 95 95
12 Cutter 2 29 58
13 Cutter Blade 2 packs 30 60
14 Fingertip Moistener 2 30 60
Total 2,386
Total office supplies cost in each year 15,242
• Rental Free
The Idea Plus building is 3 floors with 2 boxes building. The area is about 8
meters x 10 meters each floor. The rental for each month is 25,000 baht per month, and
the rental contact is for at least 5 years rent. Moreover, the company has to make a
prepaid payment for 6 months. Then the total rental fee per year is 25,000 x 12=
300,000 baht per year
For following administrative expense, the company estimate as following and would
be increase 10% per year
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Electricity price
Service charge
(baht/unit)
(baht/month)
Peak Off Peak
Pressure 22-33 Kilovolt 3.6246 1.1914 228.17
Pressure less than22 Kilovolt 4.3093 1.2246 57.95
Peak : Monday - Friday 09.00 - 22.00
Off Peak : Monday - Friday 22.00 - 09.00
Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
General manager salary 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 180,000
Marketing officer salary 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 102,000
Accounting officer salary 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 102,000
Reception and administration
7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 84,000
officer salary
Graphic and package designer
8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 102,000
salary
Customer service officer salary 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 90,000
Housekeeper salary 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Social security insurance (per
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
month)
Office supplies 8,084 0 0 2,386 0 0 2,386 0 0 2,386 0 0 15,242
Utility expense 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 102,000
Reatal building (6 month prepaid) 150,000 0 0 0 0 0 25,000 25,000 25,000 25,000 25,000 25,000 300,000
Fire insurance 2,579 0 0 0 0 0 0 0 0 0 0 0 2,579
Administrative Depreciation 6,355 6,355 6,355 6,355 6,355 6,355 6,355 6,355 6,355 6,355 6,355 6,355 76,257
Total adminstrative expense 238,517 77,855 77,855 80,241 77,855 77,855 105,241 102,855 102,855 105,241 102,855 102,855 1,252,078
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Year 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
General manager salary 16,500 16,500 16,500 16,500 16,500 16,500 16,500 16,500 16,500 16,500 16,500 16,500 198,000
Marketing officer salary 9,350 9,350 9,350 9,350 9,350 9,350 9,350 9,350 9,350 9,350 9,350 9,350 112,200
Accounting officer salary 9,350 9,350 9,350 9,350 9,350 9,350 9,350 9,350 9,350 9,350 9,350 9,350 112,200
Reception and administration
7,700 7,700 7,700 7,700 7,700 7,700 7,700 7,700 7,700 7,700 7,700 7,700 92,400
officer salary
Graphic and package designer
9,350 9,350 9,350 9,350 9,350 9,350 9,350 9,350 9,350 9,350 9,350 9,350 112,200
salary
Customer service officer salary 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250 8,250 99,000
Housekeeper salary 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 66,000
Social security insurance (per
3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 39,600
month)
Office supplies 8,892 0 0 2,625 0 0 2,625 0 0 2,625 0 0 16,766
Utility expense 9,350 9,350 9,350 9,350 9,350 9,350 9,350 9,350 9,350 9,350 9,350 9,350 112,200
Rental building 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000
Fire insurance 2,579 0 0 0 0 0 0 0 0 0 0 0 2,579
Administrative Depreciation 6,355 6,355 6,355 6,355 6,355 6,355 6,355 6,355 6,355 6,355 6,355 6,355 76,257
Total adminstrative expense 121,476 110,005 110,005 112,629 110,005 110,005 112,629 110,005 110,005 112,629 110,005 110,005 1,339,402
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Year 3 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
General manager salary 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 216,000
Marketing officer salary 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 122,400
Accounting officer salary 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 122,400
Reception and administration
8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 100,800
officer salary
Graphic and package designer
10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 122,400
salary
Customer service officer salary 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 108,000
Housekeeper salary 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 72,000
Social security insurance (per
3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43,200
month)
Office supplies 9,701 0 0 2,863 0 0 2,863 0 0 2,863 0 0 18,290
Utility expense 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 122,400
Rental building 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000
Fire insurance 2,579 0 0 0 0 0 0 0 0 0 0 0 2,579
Administrative Depreciation 6,355 6,355 6,355 6,355 6,355 6,355 6,355 6,355 6,355 6,355 6,355 6,355 76,257
Total adminstrative expense 129,434 117,155 117,155 120,018 117,155 117,155 120,018 117,155 117,155 120,018 117,155 117,155 1,426,726
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For transportation, we can sure for serve many customers in the same time,
because we provide the effective transportation company that is Nim See Seng which is
a company that gain a big market in the North of Thailand and they know almost of
Chiang Rai and nearby province and they have many truck and car to provide service to
the customers. This will make the company save the cost than by own vehicles to
transport the goods to customers in the same times.
About the management, Idea Plus is register as the company limited with Office
of commercial Affiars Chiangrai, in company there are 7 officers (Board of Director is
exclude) that the company recruit by the qualification and define the job responsibility
to work with Idea Plus company. In company, we have performance evaluation to
motivate the officer to work effectively.
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Chapter 5
Financial Analysis
Start up
Total investment and expense 899,253
Cash requirement to maintain 500,000
liquidity
Total cash requirement 1,399,253
Loan 2,000,000
Interest (per year) 15%
Interest (per month) 1.25%
Income tax 30%
Total principle and interest 2,300,000
Repayment (years) 3
Repayment (Month) 36
Total principle and interest per 63,889
month
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Interest and principle loan expense 63,889 63,889 63,889 63,889 63,889 63,889 63,889 63,889 63,889 63,889 63,889 63,889 766,667
Afetr interest income 767,420 708,645 653,890 574,059 583,568 611,766 651,836 621,958 671,953 748,894 808,925 786,411 8,189,324
Income Tax (30%) 230,226 212,593 196,167 172,218 175,070 183,530 195,551 186,587 201,586 224,668 242,677 235,923 2,456,797
Net income 537,194 496,051 457,723 401,841 408,498 428,236 456,285 435,371 470,367 524,226 566,247 550,488 5,732,526
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Interest and principle loan expense 63,889 63,889 63,889 63,889 63,889 63,889 63,889 63,889 63,889 63,889 63,889 63,889 766,667
Afetr interest income 845,451 782,048 722,315 635,277 646,051 676,362 720,125 687,481 742,021 826,781 891,445 868,134 9,043,492
Income Tax (30%) 253,635 234,615 216,695 190,583 193,815 202,909 216,038 206,244 222,606 248,034 267,433 260,440 2,713,048
Net income 591,816 547,434 505,621 444,694 452,236 473,454 504,088 481,237 519,414 578,747 624,011 607,694 6,330,444
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Afetr interest income 948,381 881,594 819,372 728,586 739,911 771,505 816,970 783,086 839,899 928,038 995,549 971,215 10,224,107
Income Tax (30%) 284,514 264,478 245,812 218,576 221,973 231,451 245,091 234,926 251,970 278,411 298,665 291,364 3,067,232
Net income 663,867 617,116 573,561 510,010 517,938 540,053 571,879 548,161 587,929 649,626 696,884 679,850 7,156,875
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• NPV = 56,943,442.95
• Payback period = within one year
• IRR= 402.30%
• ARR or ROI = 635.57%
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Chapter 6
Risk Management
1. Supplier risk
Idea Plus Company has a monopoly of
supplier, it effects to a supplier risk because our
company designs packaging by customer order and
then will send packaging outline to King
Carton Company in Chiang Rai. They are a
paper packaging business that they can
produce paper packaging. It result to our
company reduce overall costs and expand quickly into new markets. Therefore, Idea Plus
Company is highly dependent on suppliers to achieve business and our company has also
exposed to the risk of supplier’s suddenly going bankrupt, closing operations or being
acquired.
Our company will plan the choices to reduce risk in the future by:
• Establish and use benchmarks for measuring supplier performance.
• Creating a system for collaboration and supplier development.
• Creating system suppler networks in the future.
• Give insight to manufacturers to create defensive and offensive strategies that turn
risk into a competitive advantage.
• Improve competitive position in the market
• Position manufactures to better address customer needs by addressing supplier
vulnerabilities before they shut down.
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2. Outsourcing Risk
4. Competitive Risk
Idea Plus Company use competitor analysis strategy to analysis provides both
offensive and defensive strategic through identify opportunities and threats. Competitor
sources of competitor analysis into one framework in the support of efficient and effective
strategy formulation, implementation, monitoring and adjustment. For the paper packaging
business, it established at the Chiang Rai province. Although a few of competitor in Chiang
Rai, it can risk for Idea Plus company because other packaging business by copy product,
boxes design, promotion can motivate customers than Idea Plus company, and new
businesses can entry in this marker can reduce market share in this packaging businesses
also. So, Idea Plus Company should create new strategies for difference from competitors,
give more qualities for our packaging, monitor about technology for improve our product for
customer, increase channels the ways to contract with customers, find new customers and
increase strategies for respond to more group of customer, and create new styles of
packaging for attraction to customer and difference from competitors and Idea Plus
Company can get more market share in this packaging business.
5. Technology Risk
Technology can be most broadly defined as the
entities, both material and immaterial, created by the
application of mental and physical effort in order to
achieve some value. In this usage, technology refers to tools
and machines that may be used to solve real-world
problems. For The Technology Machine, other
companies challenge readers to understand the spirit and core
drivers of growth: technology, knowledge, and individual
excellence. By combining rigorous research with their
extensive experience with technology advances that have changed industry, Moody and
Morley are able to supply simple guidelines for future growth and detail their keen vision of
future systems, leaders, and workers. It effect to technology are rapidly changing. Then,
technology has effected to the packaging business because technology has helped develop
more improve packaging business. Technology can create new ideas and technology
increase market share and more demand to customer needs our product. So, new technology
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can increase market share to the company that is the best opportunity for the first one
company use a new technology. Today, technology has a dramatically to change in machine
or software package. Therefore, Idea Plus Company have to monitor the new technology and
collect information what is a trend for customer need.
6. Political Risk
Politics is a process by which groups of people make collective decisions. The term
is generally applied to behavior within civil governments, but politics has been observed in
other group interactions, including corporate, academic and religious institutions. It consists
of "social relations involving authority or power" and refers to the regulation of a political
unit, and to the methods and tactics used to formulate and apply policy.
Political risk in Thailand, for a business, the implication for political risk is that there
is a measure of likelihood that political events may complicate its pursuit of earnings
through direct impacts (such as taxes or fees) or indirect impacts (such as opportunity cost
forgone). As a result, political risk is similar to an expected value such that the likelihood of
a political event occurring may reduce the desirability of that investment by reducing its
anticipated returns. For the packaging businesses, they are affected form government by
Free Trade Area (FTA). Free Trade Area is the economic integration with 10 countries in
Asian to reduce tariff between with each other and tax rate is higher than the outside the
FTA, which will include a liberalization of trade and service and the investment. The FTA
with Thailand results to packaging business in Thailand compete with other countries such
as New Zealand and Australia. So, the packaging business in Thailand should to increase
potentials to improve packaging business for competitive with other countries by use
technologies to reduce cost, use new innovation to improve business, make products are
several types, and products have standard quality to produce.
7. Economic Risk
Economic is a process that uses resources to create a commodity that is suitable for
exchange. This can include manufacturing, warehousing, shipping, and packaging. Some
economists define production broadly as all economic activity other than consumption. They
see every commercial activity other than the final purchase as some form of production.
Production is a process, and as such it occurs through time and space. Because it is a flow
concept, production is measured as a "rate of output per period of time". Economic can help
us to forecast the opportunity cost expresses the idea that for every choice, the true
economic cost is the next best opportunity. Choices must be made between desirable yet
mutually exclusive actions. It has been described as expressing "the basic relationship
between scarcity and choice." For the economic risk, Economic risks can be manifested in
lower incomes or higher expenditures than expected. The causes can be many, for instance,
the hike in the price for raw materials, the lapsing of deadlines for construction of a new
operating facility, disruptions in a production process, emergence of a serious competitor on
the market, the loss of key personnel, the change of a political regime, or natural disasters.
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For the paper packaging in Chiang Rai will effect form the oil production are rise
against a background of high oil price and inflation will be the degree to which Mauritania’s
monetary authorities are able to manage the excess liquidity caused by surging oil revenue
that Idea Plus Company expect to spend the cost increase spending and customer reduce for
demand paper packaging from inflation situation also. Idea Plus Company will plan to
increase number of sale by use marketing, customer service and customer relationship to
make customer royalty and attract customer order paper packaging at Idea Plus Company.
Moreover, Idea Plus Company is especially to monitor the technology and trend change for
improve and develop our company is better than competitor.
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1. Communication Risk
Communication is a process of
transferring information from one entity to
another. Communication processes are sign-
mediated interactions between at least two
agents which share a repertoire of signs and
semiotic rules. Communication can be
perceived better as a two-way process in
which there is an exchange and
progression of thoughts, feelings or ideas (energy) towards a mutually accepted goal or
direction (information). Communication is a process whereby information is enclosed in a
package and is channeled and imparted by a sender to a receiver via some medium. The
receiver then decodes the message and gives the sender a feedback. All forms of
communication require a sender, a message, and a receiver. Communication requires that all
parties have an area of communicative commonality. There are auditory means, such as
speech, song, and tone of voice, and there are nonverbal means, such as body language, sign
language, paralanguage, touch, eye contact, and writing. The communication risk may be
field of communication by distinct into three types there are human communication, mass
communications, and communication disorders. Other factors it may be come from noise of
communication. Noise is anything that interferes with the decoding of messages sent over
the channel by an encoder. There are many kinds of noise for example environment noise,
physiological-impairment noise, semantic noise, organizational noise, cultural noise, and
psychological noise. Therefore, the problem from communication can make the mistake
between person and effect to quality of organization and difficult to improve organization.
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When an issue has problem, the firm need to show the issue was discussed with the owner.
So, manager should document meeting with owner document or employee in organization to
make sure for understand. Moreover, manager can give activities between employees and
managers in organization by company has party with employee and managers has project to
take employees our company go to other organizations to learn how about their organization
which way to the unity in organization.
2. Employees Risk
the cost inputs and build a business case for improvements that improve employee
productivity and company profitability.
• Compensation Solutions (WCS) provides a comprehensive approach to workers’
compensation, focusing on continuous improvement to meet specific client needs. Key
services offered include premium and claims reviews, consolidation of national programs,
premium monitoring and premium allocation models, a range of outsourced options, and
program design and review. We can exceed client expectations in minimizing this key
business expense.
Moreover, Idea Plus Company is also must maintain competent employees because
other organizations are also striving our employees. The company can maintain their
employees by give system to provide employees with adequate and equitable rewards for
their contribution to meeting organization goals. Compensation has two kinds. There are
direct financial compensation and indirect compensation. Direct financial compensation pay
to a person receives in the form of wages and salaries. Indirect financial compensation is a
financial rewards that paid by vacations, sick leave, holidays and medical insurance. Then,
Idea Plus Company will safe environment and enjoy good health are more likely to be
productive and yield long-term benefits to the organization that can help company to
increase capacity and retain employees in organization.
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3. Financial Risk
Finance includes saving money and often includes lending money. The field of
finance deals with the concepts of time, money and risk and how they are interrelated. It also
deals with how money is spent and budgeted. Financial assets, known as investments, are
financially managed with careful attention to financial risk management to control financial
risk. Financial risk is normally any risk associated with any form of financing. Risk is
probability of unfavorable condition; in financial sector it is the probability of actual return
being less than expected return. There will be uncertainty in every business. Financial risk is
the additional risk a shareholder bears when a company uses debt in addition to equity
financing. Companies that issue more debt instruments would have higher financial risk than
companies financed mostly or entirely by equity. Idea Plus Company will reduce financial
risk in the future by:
• The company maintains a conservative capital structure. It has also worked hard to
diversify its business in recent years, in part to reduce its dependence on residential
contractors where it traditionally experiences higher rates of bad debt.
• Currently, the firm is anticipating an economic slowdown. As a result, it's reducing
the time it allows some customers to pay invoices and has been modernizing its
manufacturing equipment.
• Working capital requirements of a business should be monitored at all times to
ensure that there are sufficient funds available to meet short-term expenses.
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4. Leadership Risk
1. The mood of individual group members. Group members with leaders in a positive
mood experience more positive mood than do group members with leaders in a negative
mood. The leaders transmit their moods to other group members through the mechanism of
emotional contagion .Mood contagion may be one of the psychological mechanisms by
which charismatic leaders influence followers.
2. The affective tone of the group. Group affective tone represents the consistent or
homogeneous affective reactions within a group. Group affective tone is an aggregate of the
moods of the individual members of the group and refers to mood at the group level of
analysis. Groups with leaders in a positive mood have a more positive affective tone than do
groups with leaders in a negative mood.
3. Group processes like coordination, effort expenditure, and task strategy. Public
expressions of mood impact how group members think and act. When people experience
and express mood, they send signals to others. Leaders signal their goals, intentions, and
attitudes through their expressions of moods. For example, expressions of positive moods by
leaders signal that leaders deem progress toward goals to be good. The group members
respond to those signals cognitively and behaviorally in ways that are reflected in the group
processes.
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Therefore, Idea Plus Company expects that expressions of positive mood by the
leader improve the performance of the group, although in other sectors there were other
findings. Leaders are recognized by their capacity for caring for others, clear
communication, and a commitment to persist. An individual who is appointed to a
managerial position has the right to command and enforce obedience by virtue of the
authority of his position. However, only authority of position has the backing of formal
sanctions. It follows that whoever wields personal influence and power can legitimize this
only by gaining a formal position in the hierarchy, with commensurate authority. Leadership
can be defined as one's ability to get others to willingly follow.
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Chapter 7
Summary
Nowadays, the package is very important for a coordinated system of preparing
goods for transport, distribution, storage, retailing and use. It is a complex, dynamic,
scientific, artistic and controversial business function. First, it protects a product from
damage or contamination by micro-organisms and air, moisture and toxins. The product
must be protected against being dropped, crushed, and the vibration it suffers during
transport. Delicate products such as fruits need to be protected by a rigid package such as a
laminated container. The product most also be protected against the climate including high
temperatures, humidity, light and gases in the air. It must also be protected against micro-
organisms, chemicals, soil and insects. Second, it keeps the product together, to contain it
because some shapes cannot be easily packaged, for example, certain vegetables. However,
there are methods of getting around this problem. Suppliers of canned vegetables such as
carrots have developed a particular type of plant that yields carrots that are straight and
smaller than the normal variety. These fit into cans. Some products such as fruit juices and
sausages need to be contained in packages that hold them together and are sealed to prevent
spillage and loss. Next, it identifies the product. Packaging is the main way products are
advertised and identified. To the manufacturer the package clearly identifies the product
inside and it is usually the package that the customer recognizes when shopping. Advertising
is very important when a manufacturer launches a new or existing product. The package,
through its color scheme or logo, is what is normally identified by the customer. The
package will also contain important information including ingredients and ‘sell by date’. It
also helps to protection during transport and ease of transport. A package should be designed
to make it easy to transport, move and lift. A regular shaped package can be stacked without
too much space between each package being wasted. This means that more packages can be
transported in a container of a lorry. Unusually shaped packages can lead to space being
wasted and this can be costly if thousands of the same package are been transported. Finally,
in supermarkets and shops it must be possible to stack packages so that space is not wasted
on the shelves. Lost space on shelves is looked up on a lost opportunity to sell to a customer.
Also, the package must be designed in such a way that all the important information can be
seen by a potential buyer, especially the product name. The next time you visit the
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supermarket look carefully at the shape of the packages. They are usually the same
rectangular / cuboids shape. It is the selection of colours and shades that determine whether
the product inside is regarded as a quality, sophisticated or cheap item. Often packages are
stacked on top and alongside each other to reduce wasted space. The shape and form of the
package determines how efficiently they can be stacked or stored. Thus, the package is so
important and provides the good reasonable for opportunity to us to do this business.
The packaging as we know it today is the result of a long development process. The
earliest forms of packaging were made from animal skins, large leaves and vegetables, and
then it has developed continuously though technologies and evaluations. Therefore, the
packaging in nowadays contain major manufacturers on total market value in global market
for consumer goods, and food and beverage industry. However in Thailand, there are about
1,000 paper packaging manufacturers around the country and most of them are SMEs with
total investment is about 14965 million baht, and employment is approximately 19,366
employees. It mostly contains for animal feed, cement, chemicals, shopping bag for pack the
document and bags for the shopping mall, and transportation. Production of packaging paper
is available materials in Thailand. Especially, raw material as Kraft paper and cardboard
paper which our capacity is up to 2.40 million tons and 0.30 million tons per year which
sufficient to supply for the paper packaging industry but production costs direct variation to
raw materials cost, but the average income per company of packaging business and return on
asset increase continuously. Thus, our company provides paper boxes such as corrugated
fiberboard box, cardboard paper box, and paper bags such as Kraft paper bag and cardboard
paper bag which we hope those products will give us to become a leading provider of paper
packaging for our valued clients in Chiang Rai. We decide to develop and create new
structure design and function in various shade of packaging color continuously to add the
value to our customers products, be more attractive, and for more convenience of end users
such as provide the various designs and appearance to response customers psychological
needs especially OTOP products which still have to develop the packaging to create the
differentiation. The customers will interest in our product because of its graphic design,
value added and benefits. The design will increase and add the value to our customers
products, so we also have a plan to change packaging appearance; we need to change the
design of our packaging product to be rather than the box in cubic shape or size. Moreover,
we will add other related service such as provide the packaging for transportation such as
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corrugated board box, and handbill printing, label printing are included which those can be
success through various activities and policies of marketing, financing, accounting, and
human resource functions. Furthermore, we get quite good opportunity from general
environment for our business in political, economic, social and environment, and technology
environment which those are support our business in reasonable. For the political, they
support and too emphasize on the OTOP products in the importance of quality and standard
as a tool for developing which there are related to our target beside of SMEs businesses. As
they more in quality and standard of OTOP products, it the more concern in paper
packaging. And they also try to issue the law about pollution control, have campaign about
save world life, and let the people use paper packaging instead of plastic which those are
more concern in paper packaging and make it awareness for our customers as well as in the
economic factor which the industries register of paper that increase from 7,556.1 t0 8,049.7
million bath. It increases 6.6%. It is good opportunity for the paper industries in Chiang Rai
because Chiang Rai has 13 paper industries. That is mean to idea plus has a few of paper
industry competitors and more chance to get more market share. Those are consistent with
current in trend of environment conservation among the social and world wide in contrast
with the technology which is developed to serve the customers’ need. Technology provides
the quality and standard to produce goods which can be cheaper in term cost of production.
Our business has benefit from several areas of technology such as computer, internet,
website, and logistic technology. Moreover, there are few competitors in Chiang Rai which
only one famous competitor around Muang district names King Carton. King Carton
provides the packaging and graphic designing from paper such as corrugated and cardboard
box, set up and die cut box, paper bag, and other paper products from the customers’
ordering. King Carton set the price depend on the volumes of the, and allocate their
company where is easy for customers with the various channels such as telephone, and
website which providing the information of their business, products, services, and the
knowledge about the paper and packaging, and through the advertising on the brochure with
a half page of information about their logo, slogan, address of their shop and website,
telephone numbers, e-mail, and services, etc. However, we employ the King Carton as our
production division or we can call them as supplier instead of competitor which King Carton
will supply the papers and other equipments for us. We don’t need to build the factory and
buy the machines, but we need to design, distribute, and sell the products to our customers
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who can be divided into family business as the mainly customers and who provide the
OTOP products which help them to create more value to their products, and to satisfy their
need directly. Those customers can be segmented into 3 groups that are Production Sector
(Agricultural Processing, Manufacturing), Trading Sector (Wholesale, Retail), and Service
Sector which are from three groups in the market. It has small business, medium business,
and large business. But, we totally emphasis on the medium and small businesses as our
target markets because both production sector and trading sector as wholesale, retail and
service in Chiang Rai such as small businesses, new businesses, OTOP projects, agriculture
industries, and other business that are small businesses and medium industries are good
opportunity and more market share form packaging paper business which attract the
potential customer's attention and to have a positive impact upon the purchasing decision.
Thus according to there is one competitor around Muang district and some others few, it
quite not competing strongly because beside of King Carton case, the part of the new entry
for packaging business, it is not easy to invest in this business as the individual business
because it is quite high investment which use too much money for the machines and printers
which very expensive. Therefore, there is a good opportunity to provide the paper packaging
in Chiang Rai which provides more options for customers to select and order what they
really need and want. We will serve the less volumes than the competitor while serve the
large volumes than competitor as well.
Our business tries to create an image or an identity our products, brand or company in
our targeted market’s mind that when the customers want to promoting, adding value, and
take care of environment, they recognize our products in their mind for optioning through
designing by our team according for customers’ need with the product differentiation
especially in design, pattern, style, and function which help to create more value to the
products and to promote the brand, and quality of customers’ products along with the
friendly with the environment because we concern with suitable for customer’s products and
concern more in the environment problem. And we decide to set the reasonable price which
is depended on the cost of raw materials especially the cost of papers, and located on Phahon
Yothin Road, Wiang sub-district, Muang Chiang Rai district, Chiang Rai which the
customers can receive their products by themselves if they prefer, if not we also provide
transportation service for our customers by Nimseeseng Transportation Company which
sending the products directly that make us to save costs. Moreover, we emphasis on
203
advertising which for increasing in revenue and to make the customers know more about our
business through the billboard, brochure, online marketing as a website, and door-to-door
service by our sale representatives. For management, Idea Plus is register as the company
limited with Office of commercial Affiars Chiangrai, in company there are 7 officers (Board
of Director is exclude) that the company recruit by the qualification and define the job
responsibility to work with Idea Plus company. In company, we have performance
evaluation to motivate the officer to work effectively, and divide income in to 3 parts which
the first is for principle and 15% interest investors. After pay interest for investor the money
will be allocated for promoters or shareholders equally and another part is for company to
maintain liquidity in invest in next year in company.
204
Appendix
Type of Business Organization
Company Limited
Is that kind of company which is formed with a capital divided into equal shares, the
liability of the shareholders being limited to the amount unpaid on the shares respectively
held by them.
Must have at least 3 persons signing together in order to prepare Memorandum and then
register. Upon receiving the amount of shares, the director must register as the company
within 3 months from the date of company’s meeting to establish the company.
(4) Registered capital must be divided into each share with the same value (share’s value
must be at least 5 Baht)
(5) Name, address, age, occupation and number of shares that person who start up the
company reserve to buy the shares)
When the Memorandum has been registered, shall perform the following:
(1). All promoters manage to reserve and buy all the shares
(2). When all the shares are reserved, the promoters must with out delay hold a
general meeting of subscribers which shall be called the statutory meeting.
Meeting agenda:
(2) The ratification of any contracts entered into and any expenses incurred by the
promoters in promoting the company.
(4) The fixing of the number of preference shares, if any, to be issued, and the nature
and extent of the preferential rights accruing to them.
(5) The fixing of the number of ordinary shares or preference shares to be allotted as
fully or partly paid-up otherwise than in money, if any, and the amount up to which they
shall be considered as paid-up. The description of the services or property in return for
which such ordinary shares or preference shares shall be allotted as paid-up shall be
expressly laid down before the meeting
(6) The appointment of the first directors and auditors and the fixing of their
respective powers.
The directors shall the reupon because the promoters and subscribers to pay forth
with upon each share payable in money such amount, not less than twenty-five percent of
the share's value. When the collection of share’s price is complete, the authorized director
shall prepare the request for the registration of company’s establishment and submit to the
registrar. Regarding the submission for registration, the authorized director shall sign the
name on the request and must submit to register within 3 months from the date of company
statutory meeting. If not registered within the specified period, the company statutory
meeting shall be void and if would like to register to establish the company, shall arrange the
meeting for persons who reserve to buy the shares again. Regarding the company
establishment, if can perform every step as follows within the same day that the promoters
prepare the Memorandum, and the director can request to register the Memorandum and
register the company within the same day.
(1) Shall have the persons reserve to buy all the shares that the company can be
registered.
(2) Arrange the meeting to establish the company to consider various affairs
according to the Civil and Commercial Code, section 1108, and all the persons who start up
the company and all the persons who reserve to buy the shares shall attend the meeting, and
all of them shall agree in the affairs in the meeting.
(3) Persons who start up the company assign all the affairs to the director.
(4) The director call the person who reserves to buy the shares to pay the shares
according to the Civil and Commercial Code, section 1110, section 2 and such share’s price
has already been paid.
208
Registration
Our Company limited’s registration shall be divided into 2 steps as follows:
In case that the company limited agrees to modify or change any registered
transactions or the shareholders would like to liquidate the business, shall request for the
registration of the modification / change of such transactions or registration of the
company’s liquidation at the company and partnership registration office that the head office
of the company is located on.
2. Extraordinary resolution to
3. Company’s merger
5. Capital increase
6. Capital decrease
7. Regulations’ modification
8. Director
Registration Procedure
(2) Purchase the request and form from the Department of Business
Development or any of 7 business development office or provincial business
development office or download from internet from www.dbd.go.th.
(3) Prepare the request for registration and other attachments to the
registrar for consideration.
2. Steps for registering partnership and company via internet (see the steps
in partnership)
211
(1) The signature in the request and the attachments, the person shall sign
by him / herself.
(2) The signature in the request, the person shall sign in front of the
registrar and demonstrate the ID card to the registrar for verification. In case
that the person cannot sign the name in front of the registrar, the person who
request shall sign the name in front of the following person:
(1) Administration Officer or Senior Police in the area of the person who
requests.
(2) Person who can completely certify according to the law of that
country and
(3) 2 Reliable persons who can certify in front of the registrar that the
signature is such person’s signature.
Duties of Company
(1) The company limited must prepare the financial statement once a
month in every 12 months and at least one auditor shall audit to propose to the
ordinary shareholder’s meeting to approve the financial statement within 4
months from the closing date, and submit the financial statement to the
business information service office, department of business development, or
any provincial business development office within 1 month from the date of
financial statement’s approval although such businesses have not yet been
started or have not ceased temporarily; otherwise, they shall have the fine
penalty of no more than 50,000 Baht.
(2) The director shall prepare the copy of list of all shareholders’ names
that are holding the share at the time of the annual shareholders’ meeting and
the list of persons who are not the shareholders from the date of the last
shareholders’ meeting and submit to the department of business development
or any provincial business development office within 14 days from the date of
the meeting; otherwise, they shall have the fine penalty of no more than 10,000
Baht
(3) Must arrange the annual shareholders’ meeting within 6 months from
the juristic person’s registration date, and arrange the next meeting of at least
213
one time for every 12 months; otherwise, they shall have the fine penalty of no
more than 20,000 Baht.
The invitation for the shareholders’ meeting shall be advertised on the
local newspaper for at least one time of at least 7 days before the meeting date,
and shall send via reply mail to every shareholder named in the company’s
registration for at least 7 days before the meeting date, except the invitation for
the shareholders’ meeting to vote for the extraordinary resolution shall be sent
for at least 14 days before the meeting date.
(6) Any companies that relocate the location of head office must request
for the registration to the registrar; otherwise, they shall have the fine penalty
of no more than 20,000 Baht.
In case that the juristic person does not submit the yearly financial
statement as specified by the law, such juristic person has offense, and the
managing director or authorized director on behalf of the juristic person shall
also have the offense too.
per
4.6 Registering for new directors 400.-
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Documents to be attached together with the filing of the Application for the
Registration of Employer Form
In the case of registration of the juristic person (must use the annexes for every
defined clause.)
In the case of one single owner: (Must use annexes for every defined clause)
1. A copy or photocopy of the Citizenship Identity Card (For a foreign national, use the
passport or the Alien Identity Card).
2. A copy or a photocopy of the House Registration.
3. A copy or a photocopy of the Commercial Registration or a license to operate a
business, which is issued under other law in which the name and address are clearly
specified.
4. A copy of the Taxpayer Identification Card or a copy or a photocopy of the License
to Operate a Factory Business (Ror Ngor. 4) or a copy or a photocopy of the Value Added
Tax Registration (Phor. Por. 20) or a copy or a photocopy of Specific Business Registration
(Phor.Thor. 20).
5. A sketch map of the place of business.
The Power of Attorney (particularly the granting of authority to others to act on
one’s behalf which requires the duty stamp to be affixed pursuant to the Revenue Code.)
224
To create assurance and security in making a living for the people by sharing mutual
benefits; by being jointly responsible for society by means of savings and sacrifice for the
common good according to the main principle of encouraging the people to help one another
and help themselves and family in time of lack of income; decline in income or an increase
in expense without creating a burden to others and society. The social security is one of the
measures to build up security in life.
Income Statement
Cost decrease 5%
Cost increase 5%
Sale decrease 5%
Sale increase 5%
Cash Flow
Cost decrease 5%
Cost decrease 5%
Cost increase 5%
Sales decrease 5%
cash inflow 0 0 0 0 0
Cash Loan 2,000,000 0 0 0 0
Other 0 0 0 0 0
Cash inflow from
financing activity 2,000,000 0 0 0 0
cash outflow 0 0 0 0 0
Repayment for interest and
principle loan 766,667 766,667 766,667 0 0
Cash outflow from
financing activity 766,667 766,667 766,667 0 0
Net cash flows from
financing activity 1,233,333 -766,667 -766,667 0 0
Net cash increase or
decrease 6,577,586 5,146,746 5,744,664 6,540,431 6,807,680
Beginning cash 0 6,577,586 11,724,332 17,468,996 24,009,427
Ending cash 6,577,586 11,724,332 17,468,996 24,009,427 30,817,106
258
cash inflow 0 0 0 0 0
Cash Loan 2,000,000 0 0 0 0
Other 0 0 0 0 0
Cash inflow from
financing activity 2,000,000 0 0 0 0
cash outflow 0 0 0 0 0
Repayment for interest
and principle loan 766,667 766,667 766,667 0 0
Cash outflow from
financing activity 766,667 766,667 766,667 0 0
Net cash flows from
financing activity 1,233,333 -766,667 -766,667 0 0
Net cash increase or
decrease 6,577,586 4,815,728 5,413,645 6,209,412 6,476,661
Beginning cash 0 6,577,586 11,393,313 16,806,959 23,016,371
Ending cash 6,577,586 11,393,313 16,806,959 23,016,371 29,493,032
260
Sales increase 5%
cash inflow 0 0 0 0 0
Cash Loan 2,000,000 0 0 0 0
Other 0 0 0 0 0
Cash inflow from
financing activity 2,000,000 0 0 0 0
cash outflow 0 0 0 0 0
Repayment for interest and
principle loan 766,667 766,667 766,667 0 0
Cash outflow from
financing activity 766,667 766,667 766,667 0 0
Net cash flows from
financing activity 1,233,333 -766,667 -766,667 0 0
Net cash increase or
decrease 6,577,586 6,139,802 6,737,720 7,533,487 7,800,736
Beginning cash 0 6,577,586 12,717,388 19,455,108 26,988,594
Ending cash 6,577,586 12,717,388 19,455,108 26,988,594 34,789,330
262
Cost decrease 5%
Sales decrease 5%
Sales decrease 5%
Reference
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http://www.paperboardpackaging.org/about_paperboard/index.html
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http://www.thaisme.info/2009/07/what-is-packaging-design.html#more
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- h6=Eก0=.J:N/0<ZNea0WB=SM=480=1h<M0<ก0=1/0@U;0UDEQN< DZBW08ก==A@6=TPDE.Jก=กG
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