Project Feasibility Pottery Design PDF

I
Preface
The Project Feasibility Study and Evaluation Course are talking about the way to
create the new project business that can use in the real world. In this project is studying the
feasibility of pottery business in the north of Thailand, which is include nine chapters there
are the introduction of business, nature of industry, marketing feasibility, the investment cost
of business, the operating cost, the administration cost, the financial feasibility, the risk man-
agement of business and the conclusion. This project encourages investors who interested to
get knowledge and information about pottery business before makes decision to investment,
including the way to manage pottery business, it effects for investors to get the benefit.
Moreover, we have present technical about strategy management to make up this project by
use varieties of pottery. We expect this project to be usefulness for investors and their can use
this project is the first choice of decision when investors want to invest in pottery business.
Group Members
Miss Nang May Thu Aung ID.5131205222
Miss Pornpavee Worasubhakorn ID.5231203091
Miss Rattanapon Kongsong ID.5231203102
Miss Warisara Manosamoot ID.5231203108
Mr. Wichakorn Kunapoe ID.5231203111
Miss Suparat Thanathip ID.5231203121
Miss Sawitra Phonphairin ID.5231203123
Miss Yiwei Gao ID.5231203186
II
Table of Content
Preface I1
Table of Content III
Executive Summary VI
Chapter 1 Introduction 1
1.1. Background and Significance of the project 2
1.2. Project objective 2
1.3. Benefits of Project 3
1.4. Operating methods 3-4
1.5. Time frame of study 5
Chapter 2 Industry Profile 6
2.1. Nature of industry 7-8
2.2. Situation industry 9-10
2.3. Product and Service 10-12
2.4. Vision 12
2.5. Mission 12
2.6. Strategy 12
2.6.1. Corporate Level 12
2.6.2. Business Level 13
2.6.3. Functional Level 14-15
Chapter 3 Market Feasibility Study 16
3.1. Market Analysis 17
3.1.1. General Environment Analysis 17-20
3.1.2. Competition Analysis (3C Analysis) 21-29

3.2. STP Analysis 29
3.2.1. Market Segmentation 29
3.2.2. Target Market 29
3.2.3. Positioning Analysis 30
3.3. Marketing Mix Strategy 31
3.3.1. Product Strategy 31-32
3.3.2. Price Strategy 32-33
3.3.3. Place Strategy 33
III
3.3.4. Promotion Strategy 33-34
3.4. Sales Forecast 34-45
3.5. Marketing Expense 46-49
3.6. Conclusion 50
Chapter 4 Investment Cost 51
4.1. Location 52-57
4.2. Pre-Operating Cost 58-80
4.3. Investment Cost 81-84
4.4. Depreciation 85-94

4.5. Conclusion 95
Chapter 5 Production and Operation Cost 96
5.1. Product Characteristics 97-108
5.2. Service Process 109
5.3. Logistic Management 110
5.4. Packaging 111-118
5.5. Raw Materials Cost 119-123
5.6. Direct Labor 123-129
5.7. Manufacturing Overhead 130-133
5.8. Operating Cost 134-137
5.9. Conclusion 138
Chapter 6 Administration Cost 139
6.1. The Organization Chart 140
6.2. Administration Expense 141
6.2.1. The Employee Salary 141-147
6.2.2. Rental Fee 148
6.2.3. The Cost of Facility 148-151
6.2.4. Training & Development of Employee 152
6.2.5. Total Administration Cost 153-155
6.3 Conclusion 156
Chapter 7 Financial Analysis 157
7.1. Income statement 158-162
7.2. Statement of Cash flow 163-166
7.3. Balance sheet 167-171
IV
7.4. Conclusion 172
Chapter 8 Risk Management 173
8.1. External Risk 174
8.1.1. Competitor Risk 174
8.1.2. Customer Demand Risk 175
8.1.3. Political Risk 175
8.1.4. Economic Risk 176
8.1.5. Social Risk 176-177
8.1.6. Technology Risk 177
8.1.7. Environment Risk 178
8.2 Internal risk 178
8.2.1. Human resources risk 178-179
8.2.2. Marketing risk 179
8.2.3. Information risk 180
8.2.4. Operation risk 180
8.2.5. Risk of cost 180-181
8.2.6. Fire Risk 181
8.2.7. Punctuality Risk 181
8.2.8. Budget risk 181
8.2.9. Financial risk 182-242
8.3 Conclusion 243
Chapter 9 Summary 244
Summary of project feasibility study 245-251
References
Appendix
V
Executive Summary
Nowadays, pottery industry is the popular business in Thailand and other countries
(The Thai ceramic society). For Thailand, almost the factories are located in the northern.
Because the value of pottery production is more than 300 million Baht per year, so the num-
ber of pottery business increase all the time. Pottery Design focuses on serving commercial
premium products to consumer and staying on professionalism. We will follow the vision
through serving differentiate products with superior quality. Consumer can perceive the value
from those products. We concern in Growth strategy which is suitable for newly company as
Pottery Design. We serve modern style with natural resources which are safety to the health
of consumer. We target the consumer by tourists who are Thai and foreigner in Chiang Rai
and hotels& spas in Chiang Mai. From this issue, the number of tourist increases to 11.96%
from 2.98% in year 2010-2011. This causes the increasing of hotels& spa and the demand for
their decorative items will increase. Therefore, we have an opportunity to get more sales. We
also serve the premium service to consumers which may exceed their expectations. Although
consumers have to pay for our pottery in expensive, they can perceive value from product by
quality and its price. We place the products in our store at Mae-jan district, Chiang Rai where
is located with premium clay and the consumers can follow the products through company’s
website and the campaign of company at central plaza Chiang Rai on January and July of
each year. In term of financial analysis, Pottery Design has to provide the information of fi-
nancial statement analysis for the investor to make decision. We prepare financial analysis for
evaluating formulating plans and policies for the future. Therefore, we always need to eva-
luate our performance and effectiveness to realize the company's goal in the past for investor
to know us. We are a newly company which is well in financial term. Therefore, we are a
consistent to make profit and can deal with any financial risk that will occur with the compa-
ny. In conclusion, pottery design as a newly company in pottery industry. We have competi-
tive advantages that superior from others. In addition, we plan to expand our products to the
new market in other countries especially ASEAN countries because of encouragement in
government policy. This figures that we can increase total sale when getting more markets.
VI
Chapter 1
Introduction
1
1.1 Background and significance of the project
“Popular Handmade Design” Pottery is very popular in Thailand. The pottery shows
art and beautiful design to decorative. Pottery includes both decorative and home ware such
as bowl, vases, dishes, and lamps. All of pottery was made by professional potter. Pottery is
part of a larger product group called ceramics that encompasses bricks, cement, sewer pipes,
and other industrial products. Four steps are needed to make a pottery product: preparing the
clay mixture, shaping the clay, decorating and glazing the item, and firing (baking). The fir-
ing temperature gives pottery its finished appearance and its strength.
Nowadays, not only hotel like to use pottery to decorate but also home and spa. Each
piece of our pottery has been carefully crafted to sure you the maximum enjoyment. Each is
unique in it and may vary in color and size from others of its type. Pottery goes through more
than 15 painstaking steps to produce the finished design. Pieces are fired to 2380°F.
We have own shop in Chiang Rai and also serve our products to hotels and spas in
Chiang Mai. Each hotel and spas decorate by pottery such vases, lamps. According to the
trend of people which are able to buy the products for using in their places (house and busi-
ness), we want to serve the things that we expect to them as a new alternative. Also we are
confident in our design and quality of the products; therefore we want the consumers to
perceive those products that we have. In addition, pottery will lead our company to success in
doing business because we design product which are different from competitors.
1.2 Project objective

1. To summary of the feasibility of pottery business
2. To study the situation of pottery business
3. To analyze market in the business and financial risk feasibility
4. To study pottery makers and clay industry workers of Chiang Rai
5. To study locate and identify the place from operating potteries.
6. Establish an ongoing support structure for the operating potteries
2
1.3 Benefits of project
1. To learn about the situation of pottery business
2. To learn about the market and financial risk in project feasibility
3. To learn about the technical and management process in pottery business
4. To know pottery makers and clay industry workers of Chiang Rai
5. To know academic study the clay industry
6. To know the feasibility of pottery business in Chiang Rai
1.4 Operating methods
 To study management in pottery business as follows:
• Background of pottery
• Define our product and service
• Support vision and mission statement of pottery
• Explain its benefits and strengths of the company
• Describe in detail the information generated from our programs and how it affects our
operation.
• Determine whether our product will be produced in-house or if it will be outsourced.
Then describe how our product will be packaged, the shipping fees and procedures,
and channels of distribution. Also include the turnaround time of our product from or-
der to delivery.
 To study competition analysis and marketing feasibility as follows:

• Any unique selling features and how the product or service compares to the competi-
tion
• Analysis facilities about describing our location include the amount of square footage,
our reason for choosing a particular location. Whether our have ample parking.
• General internal and external environment
 To study the technical process in pottery business as follows:

• List our principal and alternate suppliers and their location, types of goods supplied
and how materials are ordered.
• Discuss quality control procedures and all equipment or machinery used and how it
will be maintained.
3
• Explain the type of computer system and software programs used to collect and
process data about our product. Also include how our system is tested and maintained.
• Operations and management analysis.
 To study the financial feasibility of pottery business as follows:

• Include ideas for product service expansion or enhancement. Discuss additional
equipment, staffing and resources needed to accommodate the changes and how our
anticipate improvements to affect our overall profits
• Our operating plan can also include product charts, Floor plans and a capital equip-
ment list. Product charts break down the features, benefits, pricing, promotion and
distribution of our product or service as compared to our top competitors. This infor-
mation helps potential investors evaluate the strengths and weaknesses of our product
or service.
• Floor plans display the work and storage space used by employees, and the capital
equipment list indexes our fixed assets: machinery, furniture, computers and other
equipment used in the production of our product or service. This list becomes very
important if looking to secure financing. It lets bankers know that our have the re-
sources to get the job done.
• Investment and Operation cost of pottery business
 To study and analysis risk of pottery business in Chiang Rai
 To Summary the feasibility of pottery business in Chiang Rai
4
1.5 Time frame of study
November December January February

week week week week
Operations Methods 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
To study the general of pottery business in

Chiang Rai
To study management in pottery business
To study competition analysis and marketing

feasibility
To study the technical process in pottery
business
To study the financial feasibility of pottery
business
To study and analysis risk of pottery business
in Chiang Rai
To summary the feasibility of pottery busi-
ness in Chiang Rai
5
Chapter 2
Industry Profile
6
2.1 Nature of Industry
In the past the pottery was looked its oldest and look like ancient. The earliest evi-
dence of pottery that has been found was made in the Middle East during the Neolithic Revo-
lution, about 10,000 years ago, when humans started learning to domesticate plants and ani-
mals. However, our knowledge of the past is not complete. For example, scientists discovered
a 25,000 year-old fired figurine of a woman made of clay and bone ash, called "Venus," at
Dolni Vestonice in the Czech Republic. 1 The next major innovation, the pottery wheel,
emerged around 3000 B.C. in Mesopotamia. While no one knows who invented the pottery
wheel or if it was developed over time, it allowed potters to make perfectly round pottery for
the first time. The ancient Greeks made incredible pottery during the 6th and 5th centuries
B.C. We can enjoy examples of the early black and the later, more realistic red vases deco-
rated with mythological themes in museums today. By the 6th century B.C., the potters, and
sometimes the painters, signed their pieces. 2 From the history the pottery that oldest of the
world was found at China according to the news China gave the world porcelain. And now it
appears that the country also gave us our first pottery. A team of Israeli, Chinese, and Ameri-
can scholars says it has found ceramic remains in a cave in China's Hunan province that are
from 15,400 to 18,300 years old. That's at least 1000 years earlier than other pottery frag-
ments from the same region, which were previously thought to be the oldest in the world. 3
Figure2.1: oldest pottery of the world Figure2.2: Nowadays

Piecing pottery's past. A vessel similar to this one, now in Hunan Provincial Museum, may be
the oldest pottery yet found. Credit: Hunan Provincial Museum, * 2006 4
Nowadays, the pottery industry is the popular business. Almost the factories located
in north of Thailand. Lampang province has lots of pottery and ceramics factories. There are
250 companies and 100 of Small and Medium Enterprises (SMEs). The value of production is
more than 300 million baht per year. The pottery business must careful in design. The prod-
1
http://www.life123.com/hobbies/antiques-collectibles/pottery/history-of-pottery.shtml
2
http://www.historyworld.net/wrldhis/PlainTextHistories.asp?historyid=ab98
3
http://news.bbc.co.uk/2/hi/science/nature/8077168.stm
4
http://news.sciencemag.org/sciencenow/2009/06/02-01.html
7
ucts should have different design to satisfy need of customers. The company has dedicated to
the improvement of quality product and services prompt delivery and continuous develop-
ment. However the important things of pottery business are the experience, creation in design
and high-skill of each potter. The pottery business is happened to serve the customers who
like to decorate the home. But, nowadays the pottery business can serve the other target
group such as hotel, spa, and Thai massage business. These groups are the important custom-
ers of our business because these groups use the pottery products to decorate their place in
much style for beautiful and interested places. Our factory and the head office located in Mae
Jan, Chaing Rai province. Because of in that places has the primary material and other im-
portant resources, it’s easy to find in the area. Pottery Design Company provides the pottery
in the different styles from our competitor. Our company concern about the high quality of
product, prices is customer can own and the different design. And our company is also pro-
ducing pottery following the satisfied design of each customer. The Doy Din Dang pottery is
the prime direct competitor of our business. The owner name is Aj. Somluck Pantiboon. He
graduated from Rajamangala University of Technology Lanna Chiangmai. He spends time to
study 4 and half years. He is a famous potter and get many reward for example he get the
third at The 19th Fletcher Challenge award Exhibition, Auckland, New Zealand. 5 And the first
indirect competitor, this is the ceramic company in Lampang province. Pottery Design Com-
pany uses the color in each product from nature. It did not affected to the health when the
customer touch and bear to the sunlight if the use to decorate in the garden. Moreover, the
Pottery Design Company provides the service to our customers. Such as we have free interior
designer go to visit hotel or area that customer want to use our product. The interior designer
will plan and set the model that the pottery to suit with customer’s style or style’s in those
areas. There are the things that our company different from competitor. We have the individ-
ual shop and office to contact for production. The customers can come to see and choose the
product by themselves in our shop.
5
http://www.tourismchiangrai.com/cr/49Artists_Lanna/Somluck.html
8
2.2. Situation of Industry
Figure2.3:The graph of export and import of ceramic product

The statistics in the graph show that the pottery and the ceramic is the popular in
Thailand and other country. The Pottery Design Company uses this statistic because the pot-
tery was classified in the group of ceramic. In December 1st – 12th, 2010 the Lampang prov-
ince has the Ceramic fair 23rd, from this festival the ceramic can get the sale is 15million baht
but they has goal just only 10 million baht. 7 Pottery is the art products that use a lot of
process for production. All most step to produce the pottery by hand and from the profession-
al potter. Chiang Rai is the good location to do this business because the raw material to pro-
duce is easy to find ,this province have company that do the pottery and this company not do
the marketing, target market and design the pottery follow the customer satisfied. This com-
pany do the pottery in art design because the owner of this company is artist, he do the prod-
uct depend on feeling and art motion ,he did not care the need of customer or he sell his
product to customer is really like in his performance. And our company have a lot of indirect
competitor is the product that produce from ceramic. It is cheaper than pottery. That all our
company mentioned before is identified the way to our company will successfully. Our com-
pany has the high quality product, use the natural raw material, exotic and have feature that
difference from the other. Our potteries have two product lines. First the products decorate
such as vases, lamps and spa set. Second the product about home ware for example dishes,
bowls, spoons and teapot. Nowadays the pottery is popular to decorate the home, hotel and
spa. Our company makes the marketing strategy to fight with the competitor. Our company
has the representatives go to see the real area and present the product to customer. In addition
our company has a catalog to show many style of product. Our product not only to decorate
but also it is present, gift in importance day or any celebration. And the company has own
6
http://www.thaiceramicsociety.or.th/statistic.php
7
http://www.krobkruakao.com/
9
shop and factory to produce the pottery. In each pottery were design by good artist, good de-
signer, made by professional potter and controller in each process. Moreover our company
has the professional architecture to choose position to put the pottery and decorate for the
rooms of hotel, spa and house both inside and outside. From the characteristic of our pottery
is the main thing can attract the general people who have power to purchase that like to col-
lect the performance of art and purchases the pottery for decorate their home.
2.3 Product and Service

2.3.1 Product
We divide pottery into 2 types; the first is home ware products such as table ware,
tea/coffee set, bath and spa, and lamp. The second is decorative pieces such as gift item and
decorative item.
Home ware
Plate
Bowl
Spoon and Fork
10
Cup
Teapot
Decorative
Vase
Lamp
Spa set
11
2.3.2 Service
- Guarantee product in which transport products on time when we have contract with
customers and guarantee design of order that maybe demaged within 7 days
- We have decorator to design products to serve demand of consumer.
2.4 Vision
Our vision is a leading manufacturer and distributor of pottery with a focus on
commercial premium of products, and professionalism.
• Offer quality products for customer
• Satisfy distributors’ needs by offering professional product
• Trust, empower, and reward our staff to make them accountable
• Contribute to the society
2.5 Mission
Our company commits to develop and manufacture pottery with raw materials of su-
perior quality to ensure the very best and most effective product, and also we will become the
leading production of the best pottery products in Chiang Rai.
• To inspire moments of optimism by artistic.
• To get high profit when produce more products and the cost will be lower.
• To create value and make a difference.
2.6 Strategy
2.6.1 Corporate Level
“Pottery Design” is built as a new business in a field of handicraft. According to we are new-
ly in the pottery market, we concern in Growth Strategy which is necessary for business that
is developing itself to become a known company. This strategy will forward force the growth
to company. We control the processes of operating and then serve to the consumers. This is
known as vertical integration. We serve our products directly to consumers by do not need to
do with intermediate. From this way, we use forward integration for developing our business.
The purposes of using growth strategy are increasing the number of sales and market share.
Moreover, we want to minimize the cost per unit of the products and want to be survived in a
case of having many competitors in the market. We think that growth strategy will lead our
business to gain higher gross margin at the end of working period.
12
2.6.2 Business Strategy
Creating differentiation is an aim of Pottery Design to serve our products to consumers. We
believe that when we are different from competitors, consumer will accept our product in
their mind and have strong loyalty .We differentiate from many competitors as follow:
Style
• We have own style of products which are every pieces of products have to be modern.
Moreover, there are many patterns and colors for consumer to choose in their own prefe-
rence. Our style is a one choice for people who love to get the things that are different
and exotic from others.
Quality
• Natural resources such as clay, ashes, etc. are acceptable in our process to produce the
products. We concern in the security of using products as when consumer has a meal, the
chemical’s equipment such as plate, spoon or cup have to disappear of combination of its
residue as danger into food or water.
Packaging
• We provide the protected box for breaking of product when consumer purchases any
kind of products that we have. Also we have a special box for consumer who purchases
our product as a gift for their special one in a special occasion.
Service
• We have decorators for design the product that consumer want such as the hotel want
us to design their decorative instruments to be suitable with their hotel, we can do for
them. In other hand, the consumers who only purchase our product for using in their own
are welcomed to design the product for them too. Our employees are trained in a field of
service, thus they will be polite and kind to consumers. We also prepare a company’s
track to transfer the products to the place of consumer i.e. hotel and spa.
Price
• Although we price the product at high price, consumer will absolutely perceive the
value of product. They will not disappoint in the products when purchasing.
Place
• We place the store and factory close to the street. It is an easy way to find our store.
Method
• We use traditional method (make by hand) to establish each price of product. Thus,
the pattern or shape of pottery will be different from others.
13
2.6.3 Functional Strategy
Marketing strategy
Product
• To serve the right feature of products to the right consumers
• Concentration in quality of process to make the product
• To create the logo of company for consumer to remember us
• Differentiation style of products from competitors
• There are many products to choose for consumer in many product lines
Price
• We price of our products by skimming pricing. Due to we produce by
unique style of product, our product will be interested in the market. Also we want the
consumer perceive the quality of the product through the price. Therefore, the consumers
will absolutely purchase our products at any given price.
Place
• We serve the product that we produce directly to consumer. We don’t have agent for
selling our products. Preparing enough inventories to serve consumer at the right time.
There is front store of the company in Chiang Rai and to trade via company’s website.
• We also sell products to Hotels and spas where are in Chiang Mai.
Promotion
• Public Relation of the products by creation show in department store in Chiang Rai.
• Advertising the company website on social network such as trading website, face-
book, twitter etc.
• Providing company’s billboards along the streets in Chiang Rai.
• Providing the special campaign for special events such as Ceramic Expo etc.
Financial strategy
• Developing the structure of ratio for convenient of doing business in short and long
term investment
• To analysis the structure of investment and doing business due to growth strategy
• To plan the management of taxation that will related to the method of business
• To manage the system of acquire capital for convenient in operating business
• To plan the expenditure of investment and controls cash flows of money
14
Human resource management
• Divide the responsibilities of employees into each zone of job (put the right man to
the right job) for increasing the quality of appraisal performance
• Training is provided to employees to let them do the same standard
• To provide the good quality of equipments and be enough quantity for usage
• To prepare the appropriate and secure place for employees to do their works
15
Chapter 3
Marketing Feasibility
Study
16
3.1 Marketing Analysis
3.1.1 General Environment Analysis
Political analysis
Nowadays political situation of Thailand is still normal. We have election on 3 July
2011. Its leader Yingluck Shinawatra became the prime minister of Thailand. Thailand is
now faced with fast-changing economic and social conditions, ideas and frameworks about
administration of state affairs cannot remain unchanged. It has some political problem that
affects from previous situation such as red shirt, yellow shirt, unrest in southern Thailand and
civil war. The political is not affecting the tourism industry, according to the statistic from
department of tourism. The number of tourist is increasing upward to 11.96 percent from –
2.98 percent in year 2010 to year 2011. 8 The tourists come to travel in Thailand because the
political is stronger than last year. From this situation, our business will get the gain. The
number of tourists will be affects directly to the pottery business because our target is the
tourists and tourism business such as hotel, resort, spa and the restaurant in Chaing Mai prov-
ince. The demand of pottery will increase. However, the pottery company can sell the pottery
to customers who want the pottery t to decorate the home. The entrepreneur of pottery prod-
uct can get more revenue. Then, the pottery company should careful in each step when run
the business. Our company will focus on the quality of production and also focus on the mar-
keting part. We will produce product to match with the need of customers and to keep the
customers satisfaction of product.
Figure: 3.1 the amount and the rate change of a tourist year 2005-2011
8
Information from Department of Tourism
http://123.242.133.66/tourism/th/home/download_list.php?gid=4
17
Economic analysis
In the third quarter of year 2011, Thai economy grew by 3.1 percent. However, the
severe flood disaster striking Thailand since the end of the third quarter through the fourth
quarter has affected production in many sectors, especially those in industrial estates resided
in Ayutthaya and Pathumthani province, which are the main production base and suppliers of
raw material and parts for automobile, electronics, textile, shoes, food and beverages, and
rubber and plastic products. Thus, the flooding in these two provinces has interrupted the
supply chain of major industries in other provinces and in other countries. Moreover, the ef-
fect of the disaster has spread to tourism sector as many countries have issued travel warning
against entering Thailand. As a result, an expected inbound tourist is reduced to 18.8 million
persons, from the previous forecast of 19.5 million persons. NESDB adjusts the previous
2011 GDP forecasts of 3.5 - 4.0 percent, announced on August 22, 2011, to 1.5 percent, with
9
inflation rate of 3.8 percent. The movement of these economic in Thailand has affect in
many businesses that located in flooded area. There factory was flooded. The machines sys-
tem was destroyed and cannot find the raw material to support the production process. How-
ever, our business is not affected by the economic crisis with other businesses. We sell prod-
uct to tourism industries in north of Thailand. The production of our company can run
smoothly. The raw material can find in local area. So, the pottery business will grow up in the
market.
Figure: 3.2 Thai economies in Q3/2011
9
Information from Office of the National Economic and Social Development Board Information (NESDB)
http://www.nesdb.go.th/Default.aspx?tabid=433
18
Social analysis
Thai society is the individualism society. In the part Thai people live in the big family
include with grandfather, grandmother, father, mother and the children. But In present people
will build the new house that separate from the old family. The government would like to
support the new family. The Cabinet on May 3, 2011, approved a mortgage incentive plan for
first-time homebuyers as proposed by the Ministry of Finance. In this plan, homebuyers can
apply for loans to purchase or build homes. Borrowers will be exempted from interest in the
first two years on mortgages for up to 30 years. Property eligible for the plan will be residen-
tial units costing up to THB3 million. According to KResearch the new mortgage incentive
will quicken buying decisions on new homes, we have raised our projection on housing loans
for 2011 to THB2,025,350-2,042,715 million, rising nicely at 8.0-9.0 percent, though still
10
lower than the 9.8 percent growth achieved in 2010 over 2009. From this situation, it has
the good effect from our business. The number of new homebuyer increasing, the demand of
pottery to decorate the home will be increase also. It is not only new buyer housing of Thail-
and but the people that have the house and love to decorate their home, restaurant and hotel.
So, the pottery business can make the good profit in Thai social.
Figure: 3.3 Demand type of new housing year 2003-2011
10
Information from KResearch, K-Econ Analysis
http://www.kasikornresearch.com/
19
Technology analysis
The advancement of technology nowadays has changed the way of people communi-
cating one to another. As the business years ago, the company may only rely on the phone
line and mails to keep in contact with others, but now they can make it easier and efficiently
by using those mobile phones and text messaging features for communications. They can
now sending and receiving information to others at anytime and anywhere they want
(http://www.ictbestpractices.net). Technology is the important things of production process.
It can help company to reduce the cost and can make the profit. The pottery business would
high technology to improve the product.
Technology equipments that we using in Pottery design business include telephone, it
can easy and faster to communication between our companies with our consumers. In addi-
tion, the internet is the great technology that can help people contact in easy way. Our com-
pany also use internet to contact with other. We can find the information about our supplier,
wholesaler and competitor. Our customer can order on the website. We have the Facebook
page to build to closer relationship with our consumers. It’s very convenient and so fast. It
means that save time for customer. We use truck and container to send our product to the cus-
tomer to protect our product and to make sure we can send to them on time. Our customer
can also order through the phone. They just look at in the catalogue and they can order it. It
makes them to save time and money. They don’t need to come along to our factory and
check. Therefore, to make customer satisfy, we absolutely focus on high technology in our
business.
Internet Telephone Facebook fan page
Figure: 3.4 Technology Equipment
20
3.1.2. Competitor Analysis (3 C Analysis)
Direct Competitor analysis
1) Doy Din Dang Pottery

49 Moo 6, Tambon Nanglae, Amphoe Mueang, Chiang Rai 57100
Figure 3.5 Doy Din Dang Pottery
Located in the verdant hills 12 km north of Chiang Rai, Doy Din Dang Pottery is surrounded
by a tranquil landscape which provides both the inspiration and the natural materials for the
work. The wares reflect both the simple and complex beauty found in nature. Since the estab-
lishment of the studio in 1991, Doy Din Dang has been producing original pieces that are
both functional and decorative and adapt themselves to a contemporary lifestyle. The weak-
ness of Doy Din Dang is about difficulty to find their store. 11
Figure 3.5.1 Home ware Figure 3.5.2 Decorative
11
http://www.dddpottery.com/
21
2) Wieng Kalong Pottery
639 Moo 1, Mae Chedi, Wiang Pa Pao, Chiang Rai 57260, Thailand
Figure 3.6 Wieng kalong Pottery
Both Thai and foreign people accept the product of Wieng Kalong
Pottery in which they have specific style of pattern. There are good
qualities of soil provided around their area. This means that they
have enough resource for their usage. Almost of consumer buy
product as a gift. Mainly they concern in original pattern of design.
Although they have special design, people can use in diary life such
as plates, bowls. Jars and cups. Wieng kalong Pottery is located in
Wieng Pa Pao, Chiang Rai, thus it is far from the center of Chiang
Rai around 2 hour. 12
12
http://www.wiang-kalong.com/
22
3) Baan Celadon Ltd.
7 Moo 3 San Klang, Sankamphaeng, Chiang Mai 50130
Figure 3.7 Baan Celadon Ltd.
Celadon is a kind of handmade by a traditional process. It is a man-made and doing as a natu-

ral beautiful products.]As celadon is a man-made product which depends upon the skills and
experience of craftsmen, it is valuable. Because of its attractiveness and solidity, celadon is
used both for home decoration and everyday use. Celadon dinner set is extremely appreciated
not only for its beauty, but also for the health safety. No chemical is used for the production.
They provide table ware, dinner set, coffee mug, celadon vase, celadon classical vase, candle
stick, ashtray, gift item, celadon Lanna Thai, showcase and so on. They mainly provide their
product to Chiang Mai local people. 13
4) Banpatan Terra cotta pottery

175 Moo 4 San Phak Wan, Hang-Dong district , Chiang Mai 50230
Figure 3.8 Banpatan Terra cotta pottery
13
http://www.baanceladon.com/
23
Terra Cotta makes the products which show the traditional northern art. All goods are
hand-made for molding pottery. They have typical style of animals, dolls, vase, etc.
which focus on decoration in the garden or in the house. All products relate to the au-
thentic shape and indicate the Thai Traditional Lanna Style. In addition, they also re-
ceive orders of any kinds of products in line with terra-cotta. 14
Indirect Competitors analysis

S.C. Ceramic store
At Baan Pang Ka, Amphoe Jaehom, Lampang province.
The S.C. Ceramic store has many products line, design and product line to serve the
customer. The product that same the pottery or can substitute in some product of pot-
tery but they made from ceramic example vases, dishes and the thing that decorative
home. The price is cheaper than the pottery including with the weight of product. This
company is very famous in local area, other province and export to other countries. 15
Analyze & Summary the competitor.

Name of competitor Detail Competitor
1. Doy Din Dang - The positioning of product is expensive
and middle modern. The pottery from Doy
Din Dang are from the professional potter
(Aj.Somluck) he is the famous potter and
people well-know because beginning the
business in 19 years ago. The design of
14
http://www.banpatan.com/eng/index.htm
15
http://siamc34.tripod.com/
24
product has the own feature. He uses the
natural raw-material to produce the product.
2. Wieng Kalong Pottery -From the positioning the potter of Wieng

Kalong is luxury and more expansive. The
pottery from Wieng Kalong was accepted
by the foreign and Thai people that use the
high quality soil. All most product can use
in daily life such as dishes, bowls, spoons,
forks and etc.
3. Baan Celadon Ltd., -The pottery style from Baan Celadon is
very luxury and expensive because the own
technique to produce all of the pottery in
green color. No competitor can imitates or
can copy the product from this factory. But
nowadays the special technique it affect to
sale of factory because the competitor have
more choice to offer the customers. They
offer the product that the competitor cannot
imitate and use only green color in the
every product. Celadon is a kind of hand-
made by a traditional process.
4. Banpatan Terra Kotta Pottery -The position of this factory the product not
expensive and durable. The customer can
own it. The product is suitable to decorate
general place such as restaurant. They offer
the product show the traditional northern art
and Lanna styles. The receive order was
designed by customers.
25
5. S.C. ceramic store -It is the indirect competitor. They offer the
product from ceramic and some product can
substitute the pottery and cheaper. They can
produce a lot of quantities and not spend
long time to produce.
Customer Analysis
Pottery Design Company divides the customer into 2 groups. First group is the con-
sumers who are local consumer and tourist (Thai& foreigner) who have own style, having
high power to purchase, high status and love to decorative their place in modern style(70%).
Second; consumer who buy pottery to use in their business as hotel and Spa (30%). Our
Company will serve the products to customers satisfied.
30%
Tourist
70% Hotel & spa
Figure 3.9 Target market
From the statistic of tourism and tourist came to travel at Chiang Rai in year 2007 have the
Thai people 1,135,659 persons and foreigner 300,776 persons per year, it show that product
can sale in whole year and especially the high season. In addition, some customers are from
the owner of business in Hotel and spa in Chiang Mai because of from the statistic show that
in Chiang Mai has the hotel approximately 170-200 hotels and spas. In 70% of hotel and spa
was decorated by the pottery. They put it in the room, show in the front, counter including the
garden.
26
Competitive Analysis
Ceramic industry is an important industry for Thailand economy. Local people can
get the job from this way. This is the source that supports Thailand economy16. In 2010, sell-
ing pottery and its production tend to a little increase due to recovering of economy within
country. In addition, it is the period of stronger in budget policy of Thai government. Budget
policy tends to more practical. The economic flow within country is more increasing and let
people have higher power to purchase product that they want. From this way, there are many
pottery companies build up themselves because of stronger policy of government and demand
of consumer. Almost of them are located in northern of Thailand especially in Lampang
where is abundantly in good quality of clay, rock and material 17.
Market share
We want to get market share at 18% of ceramic industry in Thailand that evaluate by
popularity of consumer according to a length of time of company’s establishment. According
to Lampang, where is the popular area that produces ceramic because of more quality re-
sources. Moreover, the policy of government is stronger, this increases ceramic industry
within Lampang due to they already have abundantly clay which is good quality, so that
Lampang is the famous and well known in ceramic market. Also Lampang began to produce
ceramic long time ago; this is a good point that makes people know ceramic Lampang by
evolution of its time. Almost Lampang people do ceramic as their business. This means ce-
ramic in Lampang have a high chance to get more market share in ceramic industry within
Thailand. For our company, we just start doing business in this field, so we cannot count as
popularity same as Lampang. We may be counted in the one of others part from market share
that mention about 30% but we plan to achieve the goal at 18% from 30%. Because we have
own style which is modern, consumer can perceive value from unique style of us. Also we
concentrate in good quality of raw material in production. We plan to develop our strategies
to be better all the time because we hope that consumers will accept new company as Pottery
Design into their mind and stand in loyalty.
16
http://www.tisccm.moc.go.th
17
http://tisc.feu.ac.th/content.aspx?file_upload_id=2053&page_num=1
27
Figure of market share in Ceramic industry within Thailand
Others Lampang
30% Ceramic
28%
Celadon Ban Chiang

18% 24%
Figure 3.10 Market share
Lampang Ceramic 28% There are increasing ceramic business in Lampang all the time.
At the present, there are 249 ceramic companies that register as formally in Lampang. 18 This
is the opportunity for getting more consumers who interest in ceramic around Lampang. This
is the land of ceramic. Also the price is not high, all level of people can buy ceramic from this
place. 19
Ban Chiang 24% Ban Chiang is the famous ceramic which the pattern is the oldest in the
world. Their features are hard to copy by others because they have unique Thai pattern. It is
20
located at Udonthani province . Consumer both Thai and foreigner who love in Thai style
will choose Ban Chiang as their first choice.
Celadon 18% located in Chiang Mai with many shards and styles (dark gray, honey
yellow, green, oliven green, blue- green and brown). They have unique production and excu-
sive resources. Its production looks strong and beautiful and brings the owner good luck and
success. 21 They provide decorative items and table ware. The weak point is they cannot pro-
duce more potteries at each time because they use manmade system. 22 This cannot response
demand of consumer in case they want large amount of product at that time.
18
http://ceramiccenter.dip.go.th/LinkClick.aspx?fileticket=ibiEXdbbpP8%3D&tabid=36
19
http://ceramiclampangonline.blogspot.com/
20
http://www.roigoo.com/board/index.php?topic=10207.0
21
http://www.baanceladon.com/production_of_celadon.html
22
http://www.tisccm.moc.go.th/tisc/report/gb_upload/show_upload.aspx?out_type=205001
28
Others 30% there are newly and existed companies that may not be enough famous and
just started doing business. Pottery Design is the one of them that focuses on 18% of market.
We will develop our strategies to response demand of consumers, we will stand on modern
style which consumers can perceive value from the product’ quality. We will be going for-
ward to consumer’s mind. We hope that in the future, consumer will be better knows Pottery
Design as well known company.
3.2 STP Analysis

3.2.1 Market Segmentation
There are many newly hotels and spas grow up in Chiang Mai every year. 23 Each ho-
tel has its own style some of them are luxury and another are Butik hotel. From this way, an
owner, designer and decorator want to find new items for using and decoration in their start-
ing business. This is possible for us to response their want. Consumer who has more income
can be easy to buy our products because we produce differentiate products so, the price quite
high. Also Chiang Rai is the place where many Thai and foreign tourists come to visit all the
year because there are many attractive places to travel. When they go back in their place, they
want to buy something from Chiang Rai as a gift, usage, decoration or buying for accumula-
tion. They may be the person who have own style and love to buy items which are different
style from other people. They can pay their money for products that are unique style at any
price even very high price.
3.2.2 Target Analysis
Pottery Design Company provides 2 target groups. First, newly hotel and spa in
Chiang Mai where chooses pottery as their home ware and decorative items. Second, we sell
our products to the tourists (Thai& foreigner) who come to visit Chiang Rai. They have own
style, having high power to purchase and love to decorate their place by unique item. Modern
style is the one thing that they prefer to purchase our products. They perceive the value of
product through the price which is high. Consumers who are these characters may be a deco-
rator, architect, artist, designer or collector.
23
http://www.cmcity.go.th/aboutus/economic.php
29
3.2.3 Position Analysis
The position of Pottery Design is to create image of modern products which can entry the
mind of our targets that are tourist in Chiang Rai (Thai and foreigner) and hotels &spas in
Chiang Mai. They can perceive the modern style of pottery by price that is high. We have
own style that is different from competitors. This means our company is recognized by con-
sumer and they can remember us. When consumer buys pottery from us, they will hold a spe-
cific style pottery that anyone hard to hold. We use raw material from nature as color on pot-
tery which is not dangerous to people and this looks more modern. This can attract the cus-
tomers and also we have a packing that make pottery get more modern and more value. Final-
ly we may receive the opportunity of getting more consumers by using word of mouth from
our consumers.
30
3.3 Marketing Mix Strategy
Marketing Mix
Product Price Place Promotion
3.3.1 Product strategy
Quality
According to the customer requirement, we focus more about the quality of product
that durable and guarantee product depended on type of product and condition if the product
has damaged, Pottery design will serve the guarantee to that product, and consumer can order
product in special design. The products of Pottery Design divide by 2 types which are decora-
tive product and home ware product.
Branding
For branding of our products, branding represents the strength of products that we
show in the modern designed. It can be created the answer instead of asking about the prod-
uct from consumers. They can investigate the basic mission, vision, values, strategic intent,
core competencies and culture of company. Then the trick is to build relevant differentiation
into the brand based on the target market’s needs and the brand’s unique strengths. In this
way, our branding is shown as the product of Pottery Design.
31
Style
We design products which are unique and different from others. Consumers can pur-
chase special product with special design from us. They can purchase from front store of our
company. Our products are the product that high differentiation and less available in the mar-
ket. They can perceive high value from our products.
Service
For transportation, we deliver products to consumer by company’s truck. Consumer
can wait for product within 30 days from the day that order products in case ordering of ho-
tels and spas. We emphasize on delivery on time because this show the responsibility and
trust of our company. We don’t have freight and ship for sending products to customer. We
also provide bank information for consumer to pay for order.
Kasikorn Bank
Mueang Chiang Rai Branch, Chiang Rai, Thailand
A/C Name: Pottery Design Co. Ltd
A/C No.: 341-2-30509-3
Saving Account
Packaging
We provide the protected box for breaking of product when consumer purchases any
kind of products that we have. Also we have a special box for consumer who purchases our
product as a gift for their special one in a special occasion. And we can make product follow-
ing order of customer.
3.3.2 Price Strategy
Price Skimming
We set products at high price because we have a substantial competitive advantage.
Due to we produce unique style of product, our product will be interested in the market. Also
we want the consumer perceive the quality of the product through the price. Therefore, the
consumers will absolutely purchase our products at any given price.
32
Discount
Our Company has an inherent understanding of discounting and promotional strate-
gies. Customers feel thankful when they get product or service at a decreased price, yet they
still see great value in the brand and would indeed pay more for the product or service in the
future. Then our company discount to customer such as hotel and spa which buy our products
more than 200,000 baht for 5% discount.
3.3.3 Place Strategy
Direct selling
We serve the products that we produce directly to consumer. We prepare enough in-
ventories to serve consumer at the right time. There is front store of the company in Chiang
Rai. Hotels and spas where are in Chiang Mai are the places that our company duel business
with.
Internet
The Internet has a geographically disperse market. The main benefit of the Internet is
that niche products reach a wider audience. There are few barriers to entry and costs are low.
We use e-commerce technology by company’s website.
Shop
We have own shop for customer to buy our products in Mae Jan, Chiang Rai. Our
shop also located in the same area with factory where produce products.
3.3.4 Promotion Strategy
Advertising
For advertising, our company uses own website to present our products and company
to customer by directly. Our company also uses billboard along the main street to advertise to
consumers before the date of company’s event.
Catalogue
When the customers interest in our products, we willing to send catalogue to them for
seeing more detail of product and we will always send catalogue every time that we develop
new style of product to consumer who are register as our member.
33
3.4 Sales Forecast/Profit Estimation
The consumers who are tourist (Thai& foreigner)
120000
112,094
100000 98,376
90,224
80000
69,382 71,595
60000 63,172 61,757
59,143
49,118 49,840 51,640
40000 39,727
20000
Figure: 3.11Tourism statistics in Chaing Rai per month 24
According to the number of Thai and foreigner tourist it shows that the amounts of
people come to travel every month especially in 2005. This case shows that the Chiang Rai
province where the popular people want to travel and there are many interest places that can
convince the people in other province come to Chiang Rai. It is the chance for our company
to get the benefit. For Pottery Design, first we forecast our sale base on amount of tourists
(Thai and foreigner) who come to Chiang Rai and amount of their buying souvenirs. We also
forecast amount of selling pottery base on seasonal factor. The sales will be high at the end of
the year until the beginning of next year according to the amount of monthly tourists who
come in Chiang Rai table that we mention above. On November to March; there is winter in
Chiang Rai, this attracts the tourists come to travel because there are many interested places.
Also our sale will higher when we do the campaigns twice a year which are on January and
July. Thus, our sale will higher after a month of doing campaigns.
24
http://www2.tat.or.th/tat_branch/web/branch_download_list.php?BR=2&CadID=61
34
Table 3.12The sale forecast of tourist in Chiang Rai per month
From table 3.12, we can forecast our sales by amount of tourist who come to Chiang Rai
in each month multiply by our market share (18%), then we divide the answer by amount of
well known pottery companies within Chiang Rai which include tree companies (Doy Din
Dan, Wieng Kalong and Pottery Design). Because we want to know the possibilities that in
each company how many tourists buy their pottery. At last, we found from table 3.13 that
each tourist spend money for souvenir is 601.95 Baht. Thus, we multiply this amount of
money with the last answer that we get before. As a result, we will know the total sale in each
month by previous calculating.
Formula
Tourist× Market share ÷ Competitor× Tourist spend = Total of sale
25
Table 3.13 Average Expenditure of Chiang Rai
25
35
We assume that the percentage of total of sale will increase 15% every year
Year 1 = 29,473,938 baht
Year 2 = 29,473,938 + (29,473,938 *15%)
= 33,895,029 baht
Year 3 = 33,895,029 + (33,895,029 *15%)
= 38,979,283 baht
Year 4 =38,979,283 + (38,979,283 *15%)
=44,826,175 baht
Year 5 =44,826,175 + (44,826,175 *15%)
=51,550,101 baht
36
The consumers: hotel and Spa in Chiang Mai province.
According to the number of hotels in Chiang Mai it show that the amounts of hotels
increase in every year especially in 2007. The average in year 2005 the amount is different
from year 2007. Chiang Mai province is the province that scenery town which popular for
people in Thailand, so hotels in Chiang Mai it has been established more and more. This case
show that the hotels in Chiang Mai province that create new hotels which they want pottery to
decorate in their hotels. It is the chance for our company to get the benefit.
Table 3.14Operating Expense of hotel and guest house in 2002 26
26
http://service.nso.go.th/nso/report/report03.html
37
450
440
430
420
410
447
400 410
390
Year 2009 Year 2010
Resource : Ministry of Tourism & Sports 27
Table 3.15 the number of hotels in the year 2009-2010
From the table that show the number of hotels in Chiang Mai in year 2010 equals 447
hotels, it mean that the hotels equals 38 (447/12) per month. In Chiang Mai there are two
competitors, so in one month the customers come to Pottery Design equals 19 hotels (38/2) but
we have 18% market share of total market. Therefore, our target hotels about 4 hotels
(17*18%); so the money that hotels spend for decoration equals 1,185,387.2 bath
(4*196,346.8) per month and equals 9,424,646.4 bath (785,387.2*12) per year.
We assume that the percentage of total of sale will increase 15% every year
Year 1 = 9,424,646 baht
Year 2 = 9,424,646 + (9,424,646*15%)
= 10,838,343 baht
Year 3 = 10,838,343 + (10,838,343 *15%)
= 12,464,094 baht
Year 4 =12,464,094 + (12,464,094 *15%)
=14,333,708 baht
Year 5 =14,333,708 + (14,333,708 *15%)
=16,483,764 baht
27
38
The customers: tourist (Thai& foreigner)
Year 1 = 29,473,938 baht
Year 2 = 33,895,029 baht
Year 3 = 38,979,283 baht
Year 4 = 44,826,175 baht
Year 5 =51,550,101 baht
The consumers: hotel and Spa in Chiang Mai province.
Year 1 = 9,424,646 baht
Year 2 = 10,838,343 baht
Year 3 = 12,464,094 baht
Year 4 =14,333,708 baht
Year 5 =16,483,764 baht
So, the total revenue per year equals the tourist (Thai& foreigner) + the
customers: hotel and spa in Chiang Mai. According to:
Year 1 = 29,473,938 + 9,424,646
= 38,898,584 baht
Year 2 = 33,895,029 + 10,838,343
= 44,733,372 baht
Year 3 = 38,979,283 + 12,464,094
= 51,443,377 baht
Year 4 =44,826,175 +14,333,708
= 59,159,883 baht
Year 5 =51,550,101 + 16,483,764
=68,033,865 baht
39
Table 3.16 Sale Forecast Year 2012
40
41
42
43
44
45
3.5 Marketing Expenses (Sale Incentive)
Advertising
Our company advertises products on website and newspaper to present our product
and company to customer by directly. Our company also used billboard advertisement before
events in November and May, except the first year. We have total cost of advertising 36,000
Baht in every year.
Included: Blog of markets website zone 2,500 Baht per month
Blog advertising in newspaper 500 Baht per month
User domain name of website 490 Baht per year
Billboard on street 65,000 Baht per month
(That is included vat)
Catalogue
For the customers interested in our products, we have to send catalogue to our cus-
tomers for see more the product categorized in November and May by prepare with adver-
tisement. And also brochure serves with catalogue that are twice a year. The cost of catalogue
and brochure are 31,700 Baht per time. And the cost of brochure pays with catalogue in fixed
cost.
Included: Brochure expense 17,000 Baht per printed
(Print 10,000 sheets for each 1.7 Baht)
Catalogue expense 14,700 Baht per printed (2,000 books)
(Size A5 (14.5*21.0 cm.) (115 gram) 16 pages for each 7.35 Baht)
Promotion
Public Relation the products by creation show in department store in Chiang Rai . Al-
so to organize the campaign to promote the new product collection twice a year, our company
has events on January and July a year. The cost of promoted the new product in the campaign
by organizer cost 460,000 Baht per year.
Included: Organizer total cost 230,000 Baht per time
46
Marketing Expenses of Year 2012
Expenses
Jan. Feb. Mar. April May June July Aug. Sep. Oct. Nov. Dec. Total
Month
User domain
name 490 - - - - - - - - - - - 490
Catalogue - - - - 14,700 - - - - - 14,700 - 29,400
Advertisement 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Brochure - - - - 17,000 - - - - - 17,000 - 34,000
Total 3,490 3,000 3,000 3,000 34,700 3,000 3,000 3,000 3,000 3,000 34,700 3,000 99,890

Expenses
Month
User domain
name 490 - - - - - - - - - - - 490
Catalogue - - - - 14,700 - - - - - 14,700 - 29,400
Advertisement 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Brochure - - - - 17,000 - - - - - 17,000 - 34,000
Campaign 230,000 - - - - - 230,000 - - - - - 460,000
Billboard - - - - 65,000 - - - - - 65,000 - 130,000
Total 233,490 3,000 3,000 3,000 99,700 3,000 233,000 3,000 3,000 3,000 99,700 3,000 689,890
47
Expenses
Month
User domain
name 490 - - - - - - - - - - - 490
Catalogue - - - - 14,700 - - - - - 14,700 - 29,400
Advertisement 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Brochure - - - - 17,000 - - - - - 17,000 - 34,000
Campaign 230,000 - - - - - 230,000 - - - - - 460,000
Billboard - - - - 65,000 - - - - - 65,000 - 130,000
Total 233,490 3,000 3,000 3,000 99,700 3,000 233,000 3,000 3,000 3,000 99,700 3,000 689,890

Expenses
Month
User domain
name 490 - - - - - - - - - - - 490
Catalogue - - - - 14,700 - - - - - 14,700 - 29,400
Advertisement 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Brochure - - - - 17,000 - - - - - 17,000 - 34,000
Campaign 230,000 - - - - - 230,000 - - - - - 460,000
Billboard - - - - 65,000 - - - - - 65,000 - 130,000
Total 233,490 3,000 3,000 3,000 99,700 3,000 233,000 3,000 3,000 3,000 99,700 3,000 689,890
48
Expenses
Month
User domain
name 490 - - - - - - - - - - - 490
Catalogue - - - - 14,700 - - - - - 14,700 - 29,400
Advertisement 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Brochure - - - - 17,000 - - - - - 17,000 - 34,000
Campaign 230,000 - - - - - 230,000 - - - - - 460,000
Billboard - - - - 65,000 - - - - - 65,000 - 130,000
Total 233,490 3,000 3,000 3,000 99,700 3,000 233,000 3,000 3,000 3,000 99,700 3,000 689,890
Table 3.26-3.30 Marketing Expense Year 2012-201
49
3.6 Conclusion
From market analysis, we have to analysis the general environment of our

business including political, economy, social and technology. These four factors are the
things that we have to know in doing business; therefore, we will know how to manage the
changing of environment that affect to our company. In addition we have to analysis the
competition which is competitor, consumer and competitive analysis. There are both direct
and indirect competitors where are located in Chiang Rai and Chiang Mai. The main direct
competitors in Chiang Rai are Doy Din Dang pottery and Wiang Kalong pottery. Ban Cela-
don Ltd. is a direct competitor in Chiang Mai and indirect competitor is S.C. ceramic store
which is selling ceramic. From sale forecast table of pottery design in each year, it can show
the influence total sale of our business. On November to March; there is winter in Chiang
Rai, this attracts the tourists who have own style, having high power to purchase and love in
modern style. They come to travel in Chiang Rai because there are many interested places.
Also our sale will higher when we do the campaigns twice a year which are on January and
July. Thus, our sale will higher after a month of doing campaigns. Moreover, our company
has own shop that serves our pottery to the consumer who are tourists. In addition, hotels and
spas in Chiang Mai are our consumer. The marketing mix of our company is to concern in
product, price, place and promotion. Finally, we realize that we have to concentrate every-
thing about analysis marketing which forces our business to be successful.
50
Chapter 4
Investment Cost
51
4.1 Location
In Chiang Rai province there are many business areas. The pottery design company is
locating middle between the ways Chiang Rai - Maesai and Chiang Rai - Chiang Sean. Our
company chooses this area because it nears the raw material. It helps our company to save
cost of transport raw material. Locate at 456 Moo 1 Phahonyothin, Maejan, Maejan District,
Chiang Rai 57110.
52
Figure 4.1: The in front of company with billboard
Figure 4.2: The whole picture of company
53
Figure 4.3: The store of company
54
Figure 4.4: The office and the inventory
55
Figure 4.5: The rest room
56
Figure 4.6: Plant decoration
57
4.2. Pre-Operating Cost
Land
We will buy the land in Phaholyothin Rd., Mae Jan, Mae Jun district, Chiang Rai,
57110. This area is closed to main road (Phaholyothin Road). We buy 3 Rai of the land, each
Rai(farm) prices at 200,000 Baht. Therefore, we have to pay 600,000 Baht for 3Rai of the
land.
Figure4.7: Land
Conveyance of land
Mr. Somsak Manawut is owner of this land, so we have to transfer the ownership of
land to be us. We will transfer the land at Department of lands (Mae Jan branch). It is located
at: Hiran Nakorn Rd., Mae Jan, Mae Jan District, Chiang Rai 57110 Tel. 0-5377-1706 Tel.
Fax 0-5377-1722. The fee rate is 2% of 100 Baht from the price of land (600,000Baht).
Thus, we pay 12,000 Baht to transfer the ownership.
Figure4.8: Map of Department of lands (Mae Jan branch)
58
Filling land and site preparation
Chiang Rai Development Company fills land and site preparation for us. Its location
is 89/16, Moo.18, Robwiang, Mueang, Chiang Rai, 57000 Tel. 0-5374-4674
They calculate the price for those activities as 1 Metre/ Rai about 200,000 Baht .We have3
Rai of land so, we have to pay for this cost 600,000 Baht
Drawing and construction
59
We let SC- House Construction to draw pattern of business both store and factory.
The price is 35000 Baht for drawing store and 20000 Baht for factory. For the construction
cost of store and factory, we accept standard series meterials. It takes cost about 2,500,000
Baht and 900,000 Baht resectively. SC- House Construction locates in 10/6 Moo. 14,
SanKungLuang Rd., Robwiang, Mueang, Chiang Rai, 57000, Tel. 053-757115. Contract with
Aj. Chairot Dachchanasakuln, Email: schouse1994@Gmail.com
Plants and Service

We employ Terrace by Design to decorate available area of
company by plants. It takes cost about 50,000 Bath which include the
cost of plants, materials and payment of service. Chinorot Khamja-
roen 129/128 M.2 Chiang Mai Villa 1, T.Padad, A. Muang, Chiang
Mai, 50100, Thailand Tel: 081-950-2072, 087-188-7700 http://www.
terracebydesign.com/index.php
Decoration cost
• Tile
We accept many types and sizes of tile for using in different past of company. Therefore,
the price is also different. We order from The Threetouch Asia Pacific Co.,Ltd. 56/23 Seri
Thai Rd., Kannayao, Kannayao, Bangkok 10230 Thailand Tel. +662-3799065-67 Fax.+662-
3799070. Service is included.
60
We use white tile in our sale room. The size is 60 × 60 centimeter.
Price is 420 Baht/ box (4 pieces= 1.44 square metre). We use
100boxes, so we pay 42,000 Baht.
Dark brown color in factory (60 × 60 centimeter), the price is 275

Baht/ box (4 pieces= 1.44 square metre). We use 200 boxes, so we
pay 55,000 Baht.
Black& White color in rest room (30 × 30 centimeter), the price is

450 Baht/ box (11 pieces= 0.96 square metre). We use 30 boxes, so
we pay 13,500 Baht.
Pink color in kitchen room (60 × 60 centimeter), the price is220 Baht/
box (4 pieces= 1.44 square metre). We use 30 boxes, so we pay 6,600
Baht.
Light brown color in kitchen room (60 × 60 centimeter), the price is

250 Baht/ box (4 pieces= 1.44 square metre). We use 45 boxes, so we
pay 11,250 Baht.
Blue color in Office of empoyees (40 × 40 centimeter), the price is

430 Baht/ box (7 pieces= 1.12 square metre). We use 25 boxes, so we
pay 10,750 Baht.
Total tile cost 42,000 +55,000 +13,500 +6,600 +11,250 +10,750 = 139,100 Baht
61
• Wallpaper
Blue color & flower wallpaper is used in office of em-

ployees, a price of wallpaper are 6,300 Baht (900 Baht/per
roll). We order from Blinds Chiang Rai 29/8 Moo 1, Thasud,
Muang, Chiang Rai 57100 Tel. 053706322.
• Paint for building

Each room has difference color of painting because we want our company is colorful and
make workers are happy in their place of work. We order from Homemart Chiang Rai at 141
Moo.25, Robwieng, Muang, Chiang Rai. Tel 665-371-1523, 665-371-2027 or 665-371-3187.
The price of paints includes the paintand service is 95,000 Baht
Figure 4.9: Light brown in factory Figure 4.10: Black color in rest room
Figure 4.11: Light pink Figure 4.12: Dark brown (outside)
62
Table: Cost of Decoration
No. Descript Price (Baht)

1 Tile 139,100
2 Wallpaper 6,300
3 Paint for building 95,000
Total 240,400
Billboard of Company
The billboard of our company has two styles. Our company hire the shop of
Mr.Kietisak Sinanta to contribute the structure all of billboard. There are three billboards at
our company.
The first billboard (Figure 4.14) is called “Nameplates “the front on top of the door.
The text of billboard make from plastic. And has the light inside. The size is width .50 m. X
length 2 m. The price is 16,000 baht. The second billboard (Figure 4.15) the price is 27,000
bath is same symbolic and desire but change the size and instrument to construct. This bill-
board was set high 4 m. This billboard make from box of light “width 1.5 m. Length 3m.”The
text of billboard is sticker.
The last billboard (Figure 4.16) builds from brick it’s behind the text that make from
Aluminum. The size is “width 1.5 m. Length 6 m. The price is 32,000 Bath.
Figure 4.13, Figure 4.14
Figure 4.15
63
Billboard tax
All billboard of The Pottery Design Company make by English front and pays the fee tax
for set company billboard. This billboard uses in the commercial for earn the revenue. The
tax is in each billboard equal:
Figure 4.13: The size of billboard equal width about width .50 meters X length 2 me-
ters, width multiple height equal to 1 square meter. Calculate be square centimeter equal
10,000 square centimeters. Calculate the billboard tax. The billboard has all English front
rates 40 Baht/500 square centimeter.
: (10,000 / 500) x 40 = 800 Baht
Figure 4.14: The size of billboard equal width about width 1.5 meters X length 3 me-
ters, width multiple height equal to 4.5 square meters. Calculate be square centimeter equal
: (45,000 / 500) x 40 = 3,600 Baht
Figure 4.15: The size of billboard equal width about width 1.5 meters X length 6 me-
ters, width multiple height equal to 9 square meters. Calculate be square centimeter equal
: (90,000 / 500) x 40 =7,200 Baht
Hence; the billboard tax total 11,600 bath
Place of Payment: Robwieng Sub-district Administration Organization and located
at 336Moo.5, Robwieng District, Muang, Chiang Rai 57100. Telephone no. 665-374-2663
Gate
We use tree as a gate around company and a front side is t by steel painting with black
color which high 1.25m. and length 1.5m. Tree gate takes cost about 20,000 Baht around
company and steel gate is 7,500 Baht. Total gate cost is 27,500 Baht
Figure 4.16: Tree gate Figure 4.17: Steel gate
64
Car parking
Eight cars of both employees and consumers can be in our car parking. We will use
Tropical Tanroof of CPAC Monier, and using steel towers and cement also painting in light
brown color .The standard size for 1car parking is (W) 3m and (H) 3.5 m.
Cost of steel towers = 12,000 baht
Cost of Tropical Tanroof = 30,000 baht
Labor cost =55,000 baht
Total cost of car parking =97,000 Baht Tropi- cal tanroof
Figure 4.18: Car parking
High-speed internet setting

A high-speed internet service by ADSL technology (Asymmetric Digital Subscriber
Line) via an existing phone line por. Maximum 6 Mbps download speed and 512 Kbps max-
imum uploading speed in always-on connection, unlimited internet access , with the transmis-
sion speed varying upon the distance and the quality of the lines.
- Provide fully protected and dedicated connectivity for transmitting all kinds of data services
such as audio, image and Internet by using TOT’s on-net and off-net from our regional and
global partners’ networks.
- Offer excellent service quality on a par with Service Level Agreement (SLA)
- Suit large businesses, such as financial institutions, manufacturers, import-export
businesses, which require privacy, speediness, accuracy and high security in data transmis-
sion.
65
Instruction for use
The telephone can be used while surfing the net.
- An always-on connection enables unlimited use of the internet.
- Supports various applications in transmission of massive data and high bandwidth
especially multimedia technology and videoconferences.
Bandwidth Speeds
- Ranging from 128 Kbps. to 2.5 Gbps.
Charges
- Depending upon the circuit size and the destination
(A high-speed internet setting cost is 590 Baht/months)
*Service of installation is included with package that we buy at the first time.
Electrical installations
We tested often enough that there is little chance of deterioration leading to danger.
Any part of an installation that has become obviously defective between tests should be de-
energized until the fault can be fixed.
(Electricity sitting cost is applicable to business as well as related areas, the average
power demand in 15 minutes, maximum 30 kW but less than 1,000 kW and average power
consumption of less than 250,000 kWh per month for 3 months.
Figure 4.19: Transformer

3.1 The normal rate.
3.1.1 Voltage of 69 kV and above 175.70 1.6660.
3.1.2 Pressure 22-33 1.7034 196.26 kV.
3.1.3 Low voltage than 22 kV 221.50 1.7314.
66
For the time of use (Time of Use Rate: TOU).
- Voltage of 69 kV and above 74.14 2.6136 1.1726 228.17.
- Pressure 22-33 132.93 2.6950 1.1914 228.17 kV.
- Low voltage than 22 kV 210.00 2.8408 1.2246 228.17.
Stransformer Model: 800kVA 3 Phase 22 KV
Cost 450,000 Baht
Meter less than 69 kV high voltage systems.
The value of 30 Amp is 20, 000 Baht.
Total of electrical installation 450,000 + 20,000 = 450,000 Baht
Cost of setting security cameras

We use security cameras from D-Pro Communication Chiangrai CO., Ltd. The cost of
setting include with the price of all cameras that we buy. They will provide service for us. D-
Pro Communication Chiangrai CO.,Ltd. locate in 139/5 Moo 12, Robwiang, Mueang
,Chiangrai, 57000 Tel. (053) 712144, 088-2587858, 088-2587859 Email
: dprocctv@hotmail.co.th , dprocctv@gmail.com and Website : http://www.dprocctv.com
Figure 4.20 : The location of D-Pro Communication Chiangrai CO., Ltd.
67
Telephone Processing
Telephone wires are easy to work with and very safe due to the low voltages
involved. The most complex part of installing telephone wires is complying with the
defined standards.
When installing additional telephone wires into an existing facility, it is usually

best to determine which telephone wiring standard is currently in use and conform to that
standard. When installing telephone wiring into a new facility, EIA/TIA T586A is the
standard to utilize.
(Telephone sitting cost is free because it’s the promotion.)
Air-conditioner setting
A split system air conditioners maximum efficiency and long term reliability are di-
rectly linked with the quality of the installation. Some of our installation examples, the in-
stallation of a split system air conditioner can be a large job and getting a licensed installer is
important. A split system is a long term investment, not only to company but comfort as well,
get it done right. (Air conditioner setting cost is free)
68
Water Installations
Water demands can vary greatly from site to site and therefore we specialize in de-
signing and installing a bespoke system. Filtration and treatment if required, is available to
meet most requirements including pH adjustment, softeners, iron and manganese reduction,
bacteria treatment etc. A detailed water analysis will be obtained prior to installation to en-
sure the best result. All installation works are carried out by ourselves and we frequently
work in conjunction with other professionals such as electrical contractors, heat pump engi-
neers and domestic plumbers should their services be required. Our installation works are
guaranteed, the installation of plumbing, water meters and a diameter of 6 inches.
Monthly cost of installing new plumbing VAT 150,000 Baht Water deposit 20,000 Baht
Pay rates are above cost. The pipe separate water meters to 20 meters in length pipe and
turn the meter is longer than 20 meters. Install the faucet, a point is 500 Baht. We use 4 points
in our company, therefore; we pay about 2,000 Baht.
Total of water installation 150,000+ 20,000+2,000 = 172,000 Baht
Business registration
We pay 3,000,000 Baht for business registration
For commercial registration of we conduct the commercial businesses located in Chiang Rai
provinces Business Development.
Period of Time for Commercial Registration

- The registration of new commercial businesses must be within 30 days from the
starting date of business
- The change of registered transactions according to (1) must be within 30 days from
the changing date
69
- The liquidation of businesses must be within 30 days from the liquidation date
- The loss of commercial registration certificate must submit the request for re-
placement within 30 days from the date of loss.
Duties of Persons who Conduct the Businesses

(1) Must submit the request for registration within the specified period, depending
on the case
(2) Must demonstrate the commercial registration certificate or the replacement at the
office in any public place
(3) Must provide the sign of the business’s name in front of the head office and
branches in public place within 30 days from the commercial registration date / The
sign must be in Thai letters and can be easy to read and may have foreign letters in the
sign, and must be in compliance with the registered name. If it is the branch, must
have the word “branch” in the name.
(4) Must offer the fact regarding the registration transaction according to the re-
gistrar’s order
**Must facilitate the registrar and officers for auditing the office of the person who
conducts the businesses.
Commercial Registration Fee

The request for performing according to the Commercial Registration Act shall pay the fee
according to the type as follows:
(1) New commercial registration of 50 Baht
(2) Registration for the change of registered transaction for 20 Baht per time
(3) Registration of the business liquidation of 20 Baht
(4) Request for issuance of replacing license of 30 Baht per copy
(5) Request for verifying the documents of person who conducts commercial businesses
for 20 Baht per time
(6) Request for the officer to copy and certify the copy of document for 30 Baht per copy
70
Machine and equipment
1. Gas Furnaces Ceramic
Product Details
• Operating Temperature : 1200°C ~ 1550°C
• Temperature Control : Firing cycles including cooling are programmable with a
thermo PLC
• Thermocouple : Type S (PtRh-Pt) with dual element
• Over temperature Protection : Standard
• Thermal Insulation : Light refractory bricks and/or Ceramic fiber
• Source of Heat : Low emission high velocity burners with silicon carbide com-
bustion tubes, spark ignition and continuous flame monitoring system
• Kiln Pressure : Controlled (optional)
• Kiln Atmosphere : Oxidizing/Neutral (standard) - Reducing (optional)
• Truck Movement : Manual by man power (Motor driven truck movement is op-
tional)
• Body Construction : Welded steel structure
• Coating : Thermoset powder coat
• Standard Color: Beige (RAL 7032 W) + Orange (RAL 2004 W) - Other colors
on request.
Price: 438,650 Baht
71
2. Pacifica Potter's Wheel
Product Details
The GT-400 develops up to 1/2 hp and is ca-

pable of centering up to 80 lbs. of clay. Price in-
cludes Splash Pan.
Shipping Weight: 92.00 lbs
Shipping Dimensions: 31 x 27 x 20
Price: 24,955 Baht
Features of Pacifica Potter's Wheels:
• State-of-the-art electronics provide extra torque and consistent RPM at even the slow-
est speeds great for delicate trimming
• Cast aluminum Magic Pedal is renowned for its fluid, comfortable operation that puts
the potter in total control
• Modular construction of electronic components makes repairs a snap-often reducing
down time to hours versus days or weeks
• Heavy-duty, steel frame with 3 widely spaced legs is stable and virtually indestructi-
ble
• Spacious, molded tabletop provides large work area and cleans easily
• 13" cast aluminum throwing head
• Splash pan is easily removed for cleaning
• Convenient, 3-position, reversing switch
• Ships UPS in days versus many other wheels that have to be shipped by truck
• Total Satisfaction Guarantee
• Compatible with Axner Power Arm and Accessories (pictured right)
3. The Seat for Pacifica Wheels
The Seat for Pacifica Wheels: Comfortable, supportive

and adjustable.
Price: 3,720 Baht
72
4. Computer
With a piano-black and chrome finish, the PCs in this se-
ries command attention in any room. Features include:
• An integrated design with single power
cord and easy setup
• Genuine Windows 7 Home Premium
• An AMD E450 dual-core processor
• A new easel design with metallic pedestal that elegantly lifts the display Fast,
easy, trusted Web browsing with Windows Internet Explorer
• A 20" diagonal Full HD§ widescreen with 1080p (1920 x 1080) resolution
• A sophisticated nonglare display with LED backlighting plus platinum metal
trim and rounded corners
• Internal antennas for 802.11 Wi-Fi1
• An integrated 6-in-1 digital media card reader
• A built-in webcam 2 and mic.
Price: 24,190 Baht
5. Printer and Fax

• Super G3 Fax with 33.6 kbps Modem
• Caller ID Compatible
• 10-CPM Laser Copier
• Top loading paper tray holds up to 250 pages for
high-volume fax reception
• Junk Fax Prohibition Feature
Price: 32,780 Baht
6. Phone
• Corded speakerphone system provides reliable connection
even during power outages
• Speakerphone built into base
• Headset jack for hands-free operation with optional headset
• 10-station speed dial
• Built-in data port for connection to computer modem or fax machine
• Model: KX-TS105B Weight: 2.05 pounds Price: 540 Baht
73
7. Boss desk
• Center drawer with metal runners and

safety stops
• Two outside drawers with metal runners
and safety stops; lower drawer holds letter-size
hanging files
• Grommet hole for cord management
• Organizer hutch with full shelf and cub-
byhole storage
• Quick and easy assembly with patented T-lock drawer system
• Product Dimensions: 23.5 x 53.1 x 36.2 inches ; 121.2 pounds
• Shipping Weight: 122 pounds (View shipping rates and policies)
• ASIN: B003QX2XU8
Price: 7,900 Baht
8. Office desk
• Computer desk with sliding tray
• Manufactured from CARB compliant com- po-
site wood carrying the Forest Stewardship
Council (FSC) certification; laminated pure
black finish
• Assembly required by two adults; Tools not
provided; To clean, use a soft dry cloth;
• Measures 42 inches wide by 20 inches deep
36.75 inches high; 5-year warranty
• Product Dimensions: 42 x 20 x 36.8 inches Price: 4,700 Baht
74
9. Chair
• Comfortable, soft PU leather upholstery with ample
padding, oil and water resistance.
• Comfortable arm rests
• 360 degree swivel for the chair
• Adjustable height from 19" to 23"
• ASIN: B004MONQ2O
• Item model number: O13
Price: 1,050 Baht
10. Sofa set
• Spacious 3-piece sectional sofa with L/R-reversible chaise, 3-person sofa, and over-
sized 38-by-26-inch ottoman; includes 2 accent pillows
• Hardwood frames covered in dark brown faux leather; cushions upholstered in stain-
resistant microfiber
• With pocket inner spring coils for supportive seats; quality poly fiber fill in seat and
back cushions
• Home assembly required; cushions, parts, hardware, and tools packed under fabric
flap in base frames
• Assembled 84" x 34" chaise and 78" x 34" sofa stand 35" high; spot clean
• Product Dimensions: 85 x 35 x 17 inches ; 258 pounds
Price: 7,000 Baht
75
11. Electronic Fan
• 3-speed control.
• This three speed desk fan will help cool off any room.
Great for the office or work desk. Fan pivots up and down to
place air where you need it. Black finish.
Price: 1,950 Baht
12. Air condition Panasonic
• 2.6kW Cooling Capacity

• 3.6kW Heating Capacity
• Inverter Technology
• Patrol Sensor
• EcoNavi
• AutoComfort
• Advanced+Plus e-ion Air Purifying System
• Mild Dry Cooling
• Demand Control
• 24 Hour Dual ON/OFF Real Setting Timer
• Blue Fin Condenser
• Large Remote Controller
• Wired Remote Controller (Optional)
• -15 Degree Heating Operation Lower Limit
• 46 Degree Cooling Operation Higher Limit
• Quiet Mode - (Indoor Cooling) & (Outdoor Cooling)
Price: 13,900 Baht
76
13. Document file
• Brand Name: Pendaflex

• Model number: 752 1/3
• 1/2 Cut Tabs. Manila.
• Lifetime Guarantee
Price: 3,390 Baht
14. Cash register

• Quick Guide
• Vista, and Windows 7 support
• Up to 2GB SD compatible
• 2000 Price Look Ups (PLU's)
• Microban - antimicrobial product protection
• Quick Guide
• Vista, and Windows 7 support
• Up to 2GB SD compatible
• 2000 Price Look Ups (PLU's)
• Microban - antimicrobial product protection
Price: 25,000 Baht
15. Set of counter
• Quick Guide
• Greet all your customers in style with
this modern design reception
• Product Dimensions: 20 x 59 x 45 inches
Price: 15,000 Baht
77
16. Panasonic plasma TV
• 1080p Full-HD Resolution
• VIERA Image Viewer (Photo and
Video)
• Energy Star
• Fast Switching Phosphor
• Easy IPTV with DLNA
• Brand Name: Panasonic
• Model: TC-P50S30
• Display Technology: led-lit
• Display Size: 42 inches
• Image Aspect Ratio: 16:9
• Product Dimensions: 47.4 x 12.8 x 30.7
Price: 29,990 Baht
17. Truck product HINO 6 wheel
• Truck product HINO 6 wheel

• Dutro Light Duty Long wheel base Truck Chassis
• GVW – 6.5 Ton
• Wheelbase – 3870 mm
• Maximum Output – 105 PS at 3200 r/min
• Maximum Torque - 26.8 kgf.m at 2000 r/min
• Cabin A/C – Factory Fitted
Price: 900,000 Baht
78
18. HINO 6 Wheel
• Wheelbase – 3870 mm
• small (4*6)
• GVM :6,800 – 7,000 kg
• Max power output: 136 ps/ 2,500 rpm
Price: 700,000 Baht
19. TOYOTA HILUX-VIGO
• GVM :6,800 – 7,000 kg

• Toyota HILUX VIGO 3.0G SM/C 4WD M/T
Price: 425,000 Baht
79
Table 4.2 Total pre-operating cost
No Descript Cost/Baht
1 Land 600,000
2 Conveyance of land 12,000
3 Filling land and site preparation 600,000
4 Drawing and construction 3,455,000
5 Plants and Service 50,000
6 Decoration cost 240,400
7 Billboard of Company 75,000
8 Billboard tax 11,600
9 Gate 27,500
10 Car parking 97,000
11 Electrical installations 450,000
12 Water Installations 172,000
13 Business registration 1,000,000
Total 6,790,500
80
4.3 Investment cost
1. Building
Table 4.3 Total building cost
Per
No Core Building Quantity Total
Once
1 18
Pilling 0.50 X 21.00 m. m.*m. 24,690 444,420
2 760
Concrete surface floor Cm2 1,560 1,185,600
3 180
Concrete parking lot Cm2 1,910 343,800
Concrete makes for Gypsums Smooth
4 2,800
plaster M2 230 644,000
5 2,800
Color for ceiling makes for smooth M2 100 280,000
6 1,500
Masonry wall plaster m.*m. 450 675,000
7 1
Electronic door 4 x 2.05 m. set 55,000 55,000
8 2
Toilet s system unit 9,500 19,000
13 2,800
Carved roofing 0.5 x 1.20 m. M2 52 145,600
14 2,800
Floor title 12” x 12” M2 400 1,120,000
15 15
Window set unit 1,800 27,000
16 200
Electrical work unit 550 110,000
17 4,800
Color work m.*m. 80 384,000
Total
5,433,420
81
2. Equipment and machine
2.1 Equipment & Tools
Table 4.4 Total of office element
No.
No Descript Product Price/unit Total
1 Computer 6 24,190 145,140

Printer and Fax Pana-
2 sonic 1 32,780 32,780
3 Phone 2 540 1,080
4 Boss desk 1 7,900 7,900
5 Office desk 4 4,700 18,800
6 Chair 12 1,050 12,600
7 Sofa set 1 7,000 7,000
8 Air condition 1 13,900 13,900
9 Electronic Fan 6 1,950 11,700
10 Document file 1 3,390 3,390
11 File cabinet 1 2,100 2,100
12 Bin 7 270 1,890
13 carpet 3 330 990
14 Set of Fujiko CCTV 2 13,500 27,000
Total 286,270
82
Table 4.5 Total of shop equipment
No.
1 Cash register 1 25,000 25,000
2 Set of counter 1 15,000 15,000
3 Chair 6 1,050 6,300
4 Pottery shelf 14 2,800 39,200
5 Air condition 2 13,500 27,000
6 Set of FujikoCCTV 1 13,500 13,500
7 Bin 2 270 540

Panasonic plasma
8 TV 1 29,990 29,990
9 Phone 1 540 540
Total 157,070
Table 4.6 Total of kitchen equipment
No.
1 Kitchen set 1 24,500 24,500
2 Microwave 1 1,800 1,800
3 Panasonic Refrigerator 1 5,590 5,590
4 Table set 2 7,300 14,600

Insolated container of
5 hot water 1 1,640 1,640
6 Kitchen sink cabinet 1 5,800 5,800
Total 53,930
83
Table 4.7 Total of restroom equipment
No. Prod-
No Descript uct Price/unit Total
1 Restroom door 6 600 3,600
2 flush toilet 6 4,500 58,500
3 Urinal 3 1,700 5,100
4 Mirror 9 1,900 17,100
5 Wash basin 6 2,690 18,830
Total 103,130
Table 4.8 Total of operating equipment & machine
No. Prod-
No Descript uct Price/unit Total
1 Gas Furnaces Ceramic 2 438,650 877,300
2 Pacifica Potter's Wheel 12 24,955 299,460
3 The Seat for Pacifica Wheels 12 3,720 44,640
4 Phone 2 540 1,080
5 Table 18 900 16,200
6 Pottery Shelf 35 1,550 54,250
7 Bin 10 270 2,700
8 Electronic Fan 6 1,150 6,900
9 Truck product HINO 6 wheel 1 900,000 900,000
10 HINO 6 wheel 1 700,000 700,000
11 TOYOTA,HILUX-VIGO 1 425,000 425,000
Total 1,302,530
84
4.4 Depreciation
Table 4.9 Total Depreciation Year 2012
85
86
87
88
89
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4.5. Conclusion
Pottery Design is located at 456 Moo 1 Phahonyothin, Maejan, Maejan District,

Chiang Rai 57110. It is middle between Chiang Rai- Maesai and Chiang Rai-Chiang Sean.
Our company chooses this area because it nears the raw materials. At the first time, we buy 3
Rai of land which closed to Phaholyothin Rd. Next, we need to transfer the land to be us. The
cost of conveyance of land, filling land, site preparation, drawing, construction and decorate
plants including service are our pre operating cost. In addition, the cost of decorative is also
the pre operating cost which includes tile, wallpaper and paint for building. We have a bill-
board of company that has to pay for its tax. The amount of money that we pay depends on
the size of billboard. We decide to build car parking and company’s gate. Our company needs
to use social network to duel our works with other parties, so we need to set high-speed inter-
net. The installation of electricity, water installation and telephone processing are the main
facility for our business so, we have to install them. Moreover, we need some security camera
in our company; we have to purchase these cameras from D-Pro Communication Company.
Setting of air-conditioner is also needed. When we have a plan to do business, the business
registration is required. We are the business that produce and sell the product to consumer
directly, so we need to buy many types of equipment such as gas furnaces ceramic, potter's
wheel, computer, printer and fax, air condition, truck etc. For investment cost, it consists of
the cost of building, equipment and machine. Building cost is about Toilet s system, window
set, concrete surface floor, etc. The cost of equipment and tools are divided by the using of
each room such as rest room, office, shop, etc.
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Chapter 5
Production and Operation Cost
96
5.1 Product Characteristics
We divide pottery into 2 types; the first is home ware products such as table ware,
tea/coffee set, bath and spa, and lamp. The second is decorative pieces such as gift item and
decorative item.
Home ware
Plate
Pottery plate with hummingbird by Vicky Calabaza (Santo Domin-
go) Vicky Tenorio Calabaza was born in 1959 and has been making pot-
tery since 1983. She is the grand-daughter of Lupe Tenorio who was also
her teacher. She sometimes collaborates with her husband Andrew Cala-
baza. Vickie signs her work with 6 dots in the form of a triangle. This
plate measures 9 inches in diameter.
Pottery Bowl with horses by Robert Tenorio (Santo Domingo)

Robert Tenorio was born in 1950 and has been making pottery since
the 1960's. He studied art at the Institute of American Indian Arts
(IAIA) in Santa Fe, New Mexico but began working earlier in clay
with his grandmother Andrea Ortiz and his great- aunt Lupe Tenorio.
He continued formal training in clay at IAIA under OtellieLoloma. He is the recipient of
many awards including, 17 awards alone from the Santa Fe Indian Market dating back to
1967. In 2000 he won the Governor's Award at Indian Market- Santa Fe, New Mexico. His
work can be found in the collections of the Peabody Museum at Harvard University, Cam-
bridge, MA; Nagoya Museum, Japan; and the Royal Family of Great Britain. This bowl
measures 3 3/4 inches tall by 8 1/4 inches in diameter.
Eye Dazzler pottery plate by Rebecca Lucario (Acoma)

Rebecca Lucario was born in 1951 and is a member of the Yellow
Corn Clan. She has been active making pottery since 1965 and was
taught by her grandmother Dolores S. Sanchez. She specializes in
Mimbres Revival style with animal designs and eye dazzlers.
This plate measures 7 1/2 inches in diameter.
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Blue Italian Italy Flower Plate With Struck Through "Z" Signature
Marking. I have a blue Italian flower plate that I am trying to iden-
tify. Please see photographs. Any information you could provide as
to the plate and /or mark would be greatly appreciated.
This decorative, rectangular platter has an elegant, Victorian lace pat-

tern imprinted in the clay (You can feel the texture). Color: Varie-
gated tan (beige) to brown. Dimensions: 11 x 6". Food-safe, micro-
wave & dishwasher safe. It can be used as a serving tray, and would
make a great gift. It is made of fine white stoneware clay, and high fire glazes.
Bowl
Red on buffware deeply incised pottery bowl by Margaret Ta-
foya (Santa Clara) Margaret Tafoya (1904- 2001) learned the art
of pottery making from her mother Sara FinaTafoya (1863- 1949),
who was considered the leading Santa Clara potter of her day.
Margaret is considered one of the leading Santa Clara potters of the
latter half of the 20th C and in 1984 she was awarded a National
Heritage Fellowship from the National Endowment for the Arts for her accomplishments.
This bowl measures 5 1/4 inches tall by 28 1/4 inches in circumference. This bowl is in very
good condition.
Fine line geometric pottery bowl by Rebecca Lucario (Acoma)

Rebecca Lucario was born in 1951 and is a member of the Yellow
Corn Clan. She has been active making pottery since 1965 and was
taught by her grandmother Dolores S. Sanchez. She specializes in
Mimbres Revival style with animal designs and eye dazzlers. Re-
becca fires her pieces twice, first in an electric kiln to cone 04, then
outside in the traditional manner, which she says gets much hotter than the electric firing. She
may spend up to 12 hours spread out over several days just on the black design work for her
larger pots. She says she does not measure or plot out her designs with instruments but rather
spaces the design out by eye. This bowl measures 5 1/4 inches tall by 21 inches in circumfe-
rence.
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Pottery bowl with rabbit by Gloria Mahle (Hopi)
Gloria Mahle is a member of the Rabbit/ Tobacco Clan and has
been making pottery since 1980. She first learned by watching her
mother Marilyn Mahle and credits Rainy Naha and Fawn Navasie
with helping her develop her skills. She in turn taught her nephew
Garrett Maho, who has also become a noted Hopi potter. This bowl measures 3 1/4 inches tall
by approximately 4 inches in diameter.
Extra Large Poppy Bowl - Made to Order - Copper Red Black

Silver Ceramic Pottery. This custom, made to order HUGE poppy
bowl can be made and shipped to you in 3 short weeks! My pieces
are hand thrown, glazed and fired by me in my home studio. This
one of a kind bowl is glazed with my NEW Copper Red and Silver
Black combination, beautiful for serving food or standing up on a display stand. Dimensions:
14"diameter x 3.5" deep.
Scalloped pottery bowl. Here is a great sized bowl that would be

nice for a soup cereal bowl or a good helping of ice cream, it
would be a perfect for a cat or dog dish too. It has gentle scallops
with dots and dents that add extra interest to the deep swirl and
grooves that have pooled the glaze nicely. Wonderful coloring of
sage green and toffee brown all on top of a deep dark black is so
earthy and bold. Measures about 5 x 2 1/2 inches tall and will hold almost 2 cups.
Spoon and Fork

Harker Pottery Salad or Serving Fork & Spoon Harker Pottery China
and Gold Inlay Serving or Salad Fork and Spoon. This 1940's serving set,
we believe to be made by Harker Pottery, is cream china color at holding
end, with gold inlay filigree leaves motif at the other end. Spoon measures
8-1/2” long by 2-1/2” wide at the bowl of the spoon. Fork is three prongs
and measures 8-3/4” long by 2-1/2” wide at the bowl of the fork. Both have a hole at one end
for hanging. Fork and Spoon are in excellent condition with no chips or nicks.
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All products, thanks to careful choice of white-backing clays and high
baking temperature, are thermo-resistance and are perfect for casserole
use in traditional and microwave ovens. Sub-glaze decoration made with
the use of paint free of lead and other radioactive elements. All utensil
can be exploited for all kind of food storage and they can be cleaned in
any types of mechanical dish-washers as well.
Circa 1937 - 1944. Fiesta Kitchen Kraft Original Salad Fork

in original radioactive red. The Fiesta Kitchen Kraft utensils
were designed by Frederick Rhead at Homer Laughlin Pottery
Company to go along with the popular Fiesta line. Originally
intended to go with the 11 3/4" Salad bowl. They will never
be marked, but rather would have been sold with a paper label. This salad fork in the early
red glaze is in excellent condition without damage or wear, please note one small glaze skip
on the edge of one of the tongs (shown in picture two at about 3 o'clock). Lovely piece with-
out damage to the tongs which is hard to find condition. Enjoy a complete set in one color, or
mix and match.
Beaba Soft Spoon & Fork Set

The perfect first utensils for babies, these French-designed utensils
help them make a happy transition to solid foods. The BPA-free
spoons and forks are made of colorful polypropylene and elasto-
meric to ensure a gentle touch on sensitive gums. Fun colors entice
children to practice eating on their own. Utensils are proportioned
for little mouths, and handles are sized for all types of food containers, ultra-gentle on gums,
and more comfortable than cold metal utensils, lightweight and durable. Assorted green,
orange, pink and blue, set of 10 includes six spoons and four forks.
Handmade earthy like spoons, these three spoons are all about 6 inches long,
glazed with a non toxic lead free glaze. Blues, browns, blacks, and a egg plant
for the colors, they work well with your sugar, honey, and coffee, just about
everything you use a spoon for. I mainly use mine for adding honey to my tea.
100
Cup
Natural Elements Pottery-- Winter Colors Flower Pattern Mug.
This beautiful, eye-catching clock will leave you smiling with
every glance at the time. All of Jane King's Clocks are handmade
including the numbering and design patterns on the face of the
clock. Jane King's Clocks all come pre-assembled, and include a
hanging device firmly attached to the back of each clock. The Di-
mensions are approximately 11" Height by 11" Width.
Reno Pottery - Cup Rooster Design. This pottery piece is a beauti-

fully designed Wine Cooler, made exclusively by Reno Pot-
tery. This creative handmade Bamboo designed Wine Coo-
ler features many different vibrant Blue and White colors and a very
stunning Bamboo handle.
Art Nouveau Green Pottery Cup Vase. Really beautiful piece of

green pottery with an elegant vine detail wrapping around the base
of the cup. I think using it as a vase would be really pretty. I do not
know much about it, there aren’t any makers’ marks, but it is in
pristine condition with no defects. Real pretty piece. Stands 4
inches tall and is 4 inches across the opening.
Warm Pottery Coffee Mug in Dark Olive Green Rose Carved

This one is a keeper. Wheel thrown, hand carved mug. Once you
hold it, you'll fall in love--the texture of the carving against your
hand feels quite exquisite, and the large handle lets you’re really get
a hold on it. Complete with a cute yet comfy thumb rest. I hand through these with white
stoneware, and then carved the rose pattern into each. This is one of my favorite glazes--it's a
layered glaze, teal green, which you'll see on the inside of the mug, and then I used my earthy
brown glaze over top. It creates a real rich dark olive green that shows off the carvings so well.
This mug measures 3.25" wide x 3.75" high.
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Pottery Coffee Mug - Scalloped Dark Blue Ceramic Mug Hand
Carved. Wheel thrown, hand carved mug. You'll fall in love quickly
with this guy--the texture of the carving against your hand feels quite
exquisite, and the large handle lets you’re really get a hold on it. Com-
plete with a cute yet comfy thumb rest. I hand through this piece with
white stoneware, and then carved the intricate scalloped pattern into it. This is a new glaze I just
started using and am totally in love with---a real rich deep navy blue. It really shows off the carv-
ings, and looks great. This mug measures 3.25" wide x 4.25" high.
Teapot
Wood Fired Teapot Set w Cane Handle / Handmade Pottery
Wheel Thrown Stoneware Clay. I was so fortunate to be included
in an anagrams kiln firing last month, which is a wood fired
kiln. This teapot set was fired for 3 days in a wood fired kiln to
Cone 10, 2400 F. A smooth glaze on the inside, the outside left bare to interact with the flame
and ash. This work is surely one of a kind. 100% food safe. A sure way to enhance your eve-
ryday life and reconnect with a 100% handmade piece of ceramic pottery. This sweet 20 Oz
teapot fits the hand and pours like a dream. Teapot and spout was wheel thrown and then the
lid and the handle lugs were formed and attached. After I got it home, I decided it was too
special for a store bought bamboo handle, so I took a class on cane weaving just to make this
handmade cane handle. This teapot has a built in strainer and a lid that will not fall off. Pours
without dripping, a sign of a good teapot. Comes with two matching teacups.7 1/2" X 8"
stoneware teapot with spout and handle, holds 20 Oz.3" x 3" teacups, each holds 8 Oz.
Olive Green Pottery Teapot Set. This Teapot Set was made on the
potter's wheel and waxed for the flower design before glazing.
Tray is not included. This set is including a teapot and two teacups.
This set has beautiful shape and handful structure, and the teapot
and teacups are so light for your convenience. Teapot is pretty big
enough for two people. Enjoy your teatime. Food, beverage, and dishwasher safe. Teapot
Size: 6" Diameter, 8.5 Length from handle to spout, 4" Height. Teacup Size: 3" Diameter,
1.5" Height
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Sunbeam Designed Teapot Set. This Sunbeam Designed Teapot
Set is wheel thrown and applied red clay into the outside of whole
body to make a sunbeam design. This set is including teapot itself,
two teacups and a small bowl with spout to let water cool. This set
has beautiful design, handful structure, and right size for two
people. Enjoy your teatime. Food, beverage, and dishwasher safe. Teapot Size: 4 1/2" Diame-
ter, 7" Length to Spout, 5 1/2" height to handle
Beautiful Vintage Takahashi Pottery San Francisco Spring Dai-

sy Teapot. This listing is for 1 Takahashi Pottery San Francisco
teapot from the Spring Daisy collection. The measurements are as
follows; the belly of the pot is approximately 7 inches wide, the
length from handle to end of spout is 11 inches and the height is 6
inches tall. The teapot is in near mint condition, I say “near” mint
because there is one minor area of damage on the end of the spout which I have shown to the
best of my ability in the last picture. In the 1840s Ashley A Vatrine started a provision and
supply business in San Francisco, many different styles of pottery were produced over the
years some marked some unmarked but the most identifiable were marked Takahashi San
Francisco with a Japan export stamp, they may also read Takahashi Shokai meaning the Ta-
kahashi Company. This particular exporter is still in business to this day (this item is from the
80s) but the older pieces and number seasonal pieces have become the most sought after col-
lectibles. I am selling two other matching listings to this one so if you are interesting in buy-
ing the entire set please feel free to convo I will be happy to combine the shipping for you.
Fish Goddess Teapot Matt Blue

The porcelain teapot is thrown and altered on the wheel in parts. The fish is
hands shaped and act as lid. The surface was created by shellac resist. Then it
was fired to 2300 degrees F with gas and wood. 10"x 5"x 3".
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Decorative
Vase
Red Honey Vase Pottery. Red Honey Glaze Flower Vase.6" tall.
This ceramic vase has a rich honey/butterscotch glaze. Each piece
of Darshan Pottery is hand thrown on my potter's wheel, glazed in
lead-free glazes, and fired in my kiln. It is here where the kiln spi-
rits transform the final product, giving each piece its unique cha-
racter.
Vintage Stangl Vase Pottery Art in Antique Gold and Aqua Re-
tro Stangl vase with a lovely hand painted antique gold finish over
an aqua glaze. This piece in excellent condition and has no chips or
cracks. There is one small indent in the ceramic at the mouth of the
vase that was part of manufacturing and is original to the piece,
which isn't a flaw just added character. It would make a great gift.
Measures approx. 9.25 inches tall and 5 inches wide.
Vintage midcentury blue pottery vase. This small pottery weed

vase is not marked. It may have been made in the 1960s or 1970s
by Otagiri of Japan. It is handcrafted, but does not have the rough-
ness of a wheel thrown studio piece. The blue semi-matte glaze
has a beautiful figural appearance. Specks of brown iron oxide
peek through the mottled blue texture and the blue glaze is thicker and pools and runs down
the sides in some areas. The condition is very good and there are no chips, cracks, or repairs.
The size is about 5 1/2" high by 4 1/2" in diameter. This is a lovely piece for your mid cen-
tury or modern home.
104
Unfurling Vase. Ceramic, high-fired, glazed with black and red
iron under glaze washes and spodumene (cream-colored high-fire
glaze with iron flecks). Dimensions: 18" tall x 9" wide x 9.5"
wide. Weight: 20 lbs. The idea behind this is the shedding of skin
to reveal the raw, natural state that lies within the boundaries and
expectations of the traditional vase form.
Vintage Pottery Vase with Pink Roses - Shabby Chic Cottage

I love a vase that looks pretty even without fresh flowers. This
vintage creamy white pottery two handled vase is embossed with
an allover diamond pattern and decorated with applied soft pink
roses. The mark on the bottom is illegible, but looks very much
like a made in Japan mark. There is overall crazing in the glaze. Condition is very good with
no chips or cracks.Measurements:4-1/2" in overall diameter by 7-7/8" tall.
Lamp
Raku Pottery Lamp. This is a wheel thrown Raku Fired Stoneware
Lamp created by Robert Graydon. This is a picture of the actual Lamp
to be shipped. It is signed and dated. It has been taken Red Hot from
the kiln and placed into straw, leaves and pine needles. This Lamp
Does come with a black paper shade and a 3 way type Light fixture. It
measures 6 1/2" Wide at the base x 16 1/2" to the Top of the pottery
and a Total High of 29" to the Top of the Shade.
Vintage Speckled Pottery Crock Lamp

Vintage Speckled Pottery Crock Lamp. Mid 80's.Works and in
very nice shape. Lamp shade is fraying in a few places. Measures
19 1/2" tall and 7" at the base. Weighs a little over 4 lbs.
105
READY TO SHIP Cobalt Blue Electric Lamp Wheat Design
Handmade Pottery. I made the base for this stoneware lamp on
the potter's wheel in my studio. I hand-incised a wheat design on it.
The lamp base is glazed in a cobalt blue glaze and fired in reduc-
tion to cone 10. The socket is solid brass with an antique finish.
The lamp has a brown 8 ft. cord and has felt pads on its base to
prevent it from scratching the surface you put it on. This electric lamp would enhance any
room. Beautiful and functional. Unique Valentine's Day gift. The lamp base measures 11.75
inches (29.8 cm) tall including the antique brass socket and 4.5 inches (11.4 cm) in diameter
at its widest point. The 7 inch (17.8 cm) rice paper shade is not included in this listing.
• Bungalow 5 Athena Dark Brown Pottery. Tapered Contemporary

Ceramic Mounted on White Base. Dark Chocolate Brown Decorated
with Raised White Patterned Dots. 16" bottom fabric shade. 27" high
from bottom of base to top of shade. 3 way socket -- 150 watt max.
The entire surface of this lamp's dark chocolate brown ceramic is
covered with tiny raised dots of white and the effect is mesmerizing.
Signed Vintage 1960s Aladdin Electric Table Lamp Abstract

Ceramic Pottery. Here for sale is a very unique find, an abstract
table lamp by Aladdin, the base is signed. It is made of ceramic
pottery and has a heavy glaze over it. The lamp is of a unique form
resembling a rock or drift wood. It was reclaimed from an old
ocean side motel in Maine. It stands 9" tall and 8" wide at the base.
Overall including the shade it is 20" tall.
106
Spa set
Rooted In Clay Votive/Tea light Holder
This uniquely creative and handcrafted Textured Votive or Tea
light Holder made by Rooted in Clay Pottery, features many dif-
ferent white, brown, and honey glazed colors. On the inside of the
bowl features a contrasting green glaze, this is an earth-toned,
beautiful pottery piece. All of Rooted in Clay Pottery pieces are
made using nature and natured-inspired designs. This pottery
piece is the perfect decoration for any home. Needless to say, all
of rooted in Clay's Pottery pieces are very unique and highlighted with natural bark and leaf
textures that are sure to impress anyone!
Vintage Blue Mountain Pottery Candle Holders Cobalt Blue

Look at the beautiful cobalt blue glaze on this set of three vintage
Blue Mountain Pottery candle holders. The largest candle holder
has a large loop-shaped handle and stands approximately 7 1/2
inches tall. The set of two smaller candle holders stand approx-
imately 2 1/2 inches tall. These candle holders are unmarked. The red clay used by BMP is
evident on the bottom of the candle holders. They are in excellent vintage condition with no
chips, cracks, or crazing.
Great Bay Pottery Creamer Our handmade pottery creamers and

sugars are the perfect way to store and serve coffee and tea. Func-
tional and decorative, our stoneware pottery sugars, creamers, and
sets are the perfect addition to your dinner and coffee table. Crea-
mer - 4.25"h x 3.5"w 10oz.Sugar Bowl - 3.75"h x 3.75V
107
Mud works Pottery Toothpick Holder by JoAnne Stra-
takos.MudWorks Pottery introduces the Toothpick Hold-
er handmade by JoAnne Stratakos. Product Dimensions
are approximately 3.5" Height by 2" Width.
Blue Mountain Pottery Vintage Candle Holders

Blue Mountain Pottery vintage candle holders. Beautiful
display pieces. Excellent condition. Made in the '60's or
'70's. No chips, cracks, or repairs on this piece. BMP
Canada on the bottom as shown. Blue Mountain Pottery has officially ended production of
items as of the fall of 2004. Unable to compete with low quality mass produced pottery ware
items from China.
108
5.2. Service Process
Product / Service process
The Pottery Design Company is the industries that provide the very high quality,
modern and the produce attractive the customer. The Pottery design company have own ma-
nufactory for producing the product because it will forward force the growth to company. We
control the processes of operating and then serve directly to the consumers. This is known as
vertical integration. We serve our products directly to consumers by do not need to due with
intermediate. From this way, we use forward integration for developing our business. The
purposes of using growth strategy are increasing the number of sales and market share.
Service process; The Pottery Design Company was divide the service in 2 services.
1. The Pottery Design shop is opened (9 am- 9 pm.) daily. We offer the product in the
store the customer can choose and can touch the product that they want to buy by
themselves.
2. The Pottery will delivery to the Hotel& Spa in Chiang Mai. We show the process
from model picture
Store atmospherics
Lighting: This store is use the light the show the feeling in artist. In the zone of show
product use the orange light. Zone counter of cashier use white electric light decorate on the
ceiling. In front of the store we use white electric light also. The pottery must use full-
spectrum light, but you must have good lighting in your work space. The best lighting will be
ambient rather than spotlights. It makes the store attractive when people pass this way, they
will visit in our store.
Color: Our store use cool color to paint. The wall was paint in white color because it
helps the customer can see the pottery obviously. The floor of store is light brown because in
the store will build the art emotion for customer. It makes the customer want to own the pot-
tery.
Music: The Pottery Design Company serves the chill and classic music. It makes the
customer feel relaxation and live in the shop for a long time. It can help to sale more products
from our company.
Scent: We will use the fresh or natural scent in the store because it helps the customer
want to live in long time and effect to buying behavior of customer.
109
5.3 Logistic Management
Merchandizing: According to the pottery design has own shop for the customer,
so it make the customer easy to purchase the product and can touch real product.
Deliver to Hotel & Spa: The customer see the catalog and order through the repre-
sentative of pottery design. Our Company will ship the product to the customer at Chiang
Mai. After that the customer’s order the product, the staff will packaging and delivered prod-
uct within 5 hour (190 km.).Next in each deliver product we will guarantee the product and
check product before customer receive.
Trading: It include the order process, account receivable, inventory control,
check quality, and the insurance for staff and security system its effective management as
well as accurate finance and accounting(8,660 baht)
The Pottery wills delivery to the Hotel& Spa in Chiang Mai. We show the
process from model picture
Customer (Hotel&Spa) Agree to order
Present Catalog, Decorators Delivery
Pottery Design Company Check products
Payment Customer receives
Figure 5.1: Logistics process
110
5.4 Our Packaging
Our company chooses Asia Paper Bag Company to produce the bag and boxed for our
company.
Asia Paper Bag Company Limited
ASIA PAPER BAG CO., LTD is one of the leading manufacturers and exporters of pa-
per bags and boxes in South East Asia. Established in 1968, we now produce over 5 million
bags per month. In addition to supplying all over Thailand, we export to more than 30 coun-
tries around the world.
We care about the Environment therefore we use recycled materials for our quality
products. With our modern offset printing technology we are capable of printing up to 5 col-
ors / 2 sides.
Folding is by to machine or hand allowing us to produce bags of any size or style. Han-
dle styles include paper twisted, cotton and nylon rope.
We are the selected list of Department of Export Promotion, Ministry of commerce.
For quality bags and boxes of all kinds at competitive prices contact ASIA PAPER BAG
CO., LTD.
General company information:
Contact: Steven Surya
Address: 499-499/1 Samwa Rd., Bangchan, Ket Klong Samwa, Bangkok, Thailand
Country: Thailand
International phone number: 66-2-90621505
International Fax: 66-2-90621578
Website: www.asiapaperbag.com
Business Type: Manufacturing
111
The Pottery design company bag:
Figure 5.2: The bag of pottery design
Code No. K-R2765

Character Paper Carrier Kraft Bags
Material Naturally degradable or can be recycled. Available with flat tape
handle or twisted paper
Size availa- Size no. I01 I02 I03 I04
ble
size(cm.) 15x8x17 20x9x8 26x10x23 33x12x27
We choose Paper Carrier Kraft Bags of Asia Paper Bag Company. The bag size that we
choose is 44x15x38 cm. We choose light brown color, recycled brown craft paper made. Na-
turally degradable or can be recycled. Available with flat tape handle or twisted paper. Tex-
ture with PP rope handle and screen our logo on every bag to show unique of our company to
our customers. The prices of bag follow the table below:
Number of bag Baht per piece

less than 500 pieces 20 Baht
501-1,000 pieces 17 Baht
1,001-3,000 pieces 15 Baht
More than 5,000 pieces 10 Baht
112
The Pottery Design company box:
Figure 5.3: The box of pottery design
Box
Code No. Size
BPDC 001 15x10x15 cm
BPDC 002 25x25x20 cm
BPDC 003 60x45x50
We choose 3 size of box that is 15x10x15 cm, 25x25x20 cm and 40x35x40 cm. All of
boxes are brown board 350 grams, colors printing, and glossy lamination and screen our logo
on every box to show unique of our company to our customers. The prices of box follow the
table below:
15x10x15cm 25x25x20 cm 60x45x50 cm
Number of box
(Baht/pc.) (Baht/pc.) (Baht/pc.)
Less than 500 pieces 10 Baht 20 Baht 40Baht
501-1,000 pieces 9 Baht 19 Baht 39 Baht
1,001-3,000 pieces 7 Baht 16 Baht 37 Baht
3,001-5,000 pieces 6 Baht 14 Baht 34 Baht
More than 5,000 pieces 5 Baht 12 Baht 30 Baht
113
The cost of bag and box per year:
The amount of bags and boxes evaluate from the unit in sale forecast in each year. The cost of packaging is high cost in November- March.
The month (July) the company has events in each year. The details of cost in each year show on the schedule:
Table 5.1 Total the cost of bag and box year 2012
Year 1 Jan. Feb. March April May June July Aug. Sep. Oct. Nov. Dec. Total
No.of bag 144 95 89 25 20 54 20 45 99 28 256 50 925
Baht per piece 10 10 10 10 10 10 10 10 10 10 10 10 120
Cost of Bag 1,440 950 890 250 200 540 200 450 990 280 2,560 500 9,250
No.of Middle
box 123 133 195 55 50 67 123 55 36 34 102 150 1123
Baht per piece 12 12 12 12 12 12 12 12 12 12 12 12 144
Cost of Box 1476 1596 2340 660 600 804 1476 660 432 408 1224 1800 13476
No.of large 255 167 245 88 79 30 140 70 56 70 158 190 1,548
Baht per piece 34 34 34 34 34 34 34 34 34 34 34 34 408
Cost of box 8670 5678 8330 2992 2686 1020 4760 2380 1904 2380 5372 6460 52632
Total of cost 11,586 8,224 11,560 3,902 3,486 2,364 6,436 3,490 3,326 3,068 9,156 8,760 75,358
114
No. of bag 135 50 89 20 30 54 57 45 123 28 256 70 957
Baht per piece 10 10 10 10 10 10 10 10 10 10 10 10 120
Cost of Bag 1,350 500 890 200 300 540 570 450 1,230 280 2,560 700 9,570
No.of Middle box 100 133 195 55 55 67 123 55 36 34 112 205 1170
Baht per piece 12 12 12 12 12 12 12 12 12 12 12 12 144
Cost of Box 1200 1596 2340 660 660 804 1476 660 432 408 1344 2460 14040
No.of large 280 210 245 112 88 50 140 78 67 75 158 220 1,723
Baht per piece 34 34 34 34 34 34 34 34 34 34 34 34 408
Cost of box 9520 7140 8330 3808 2992 1700 4760 2652 2278 2550 5372 7480 58582
Total of cost 12,070 9,236 11,560 4,668 3,952 3,044 6,806 3,762 3,940 3,238 9,276 10,640 82,192
115
No. of bag 156 95 90 35 44 49 70 45 95 28 256 50 1,013
Baht per piece 10 10 10 10 10 10 10 10 10 10 10 10 120
Cost of Bag 1,560 950 900 350 440 490 700 450 950 280 2,560 500 10,130
No. of Middle box 140 133 205 30 30 67 100 60 45 50 132 178 1170
Baht per piece 12 12 12 12 12 12 12 12 12 12 12 12 144
Cost of Box 1680 1596 2460 360 360 804 1200 720 540 600 1584 2136 14040
No.of large 205 167 245 88 85 90 270 70 88 70 158 199 1,735
Baht per piece 34 34 34 34 34 34 34 34 34 34 34 34 408
Cost of box 6970 5678 8330 2992 2890 3060 9180 2380 2992 2380 5372 6766 58990
Total of cost 10,210 8,224 11,690 3,702 3,690 4,354 11,080 3,550 4,482 3,260 9,516 9,402 83,160
116
No. of bag 175 101 129 33 34 54 70 29 90 34 120 56 925
Baht per piece 10 10 10 10 10 10 10 10 10 10 10 10 120
Cost of Bag 1,750 1,010 1,290 330 340 540 700 290 900 340 1,200 560 9,250
No.of Middle box 190 140 205 67 50 67 123 90 36 56 224 150 1398
Baht per piece 12 12 12 12 12 12 12 12 12 12 12 12 144
Cost of Box 2280 1680 2460 804 600 804 1476 1080 432 672 2688 1800 16776
No.of large 220 167 245 93 79 45 277 90 70 89 305 277 1,957
Baht per piece 34 34 34 34 34 34 34 34 34 34 34 34 408
Cost of box 7480 5678 8330 3162 2686 1530 9418 3060 2380 3026 10370 9418 66538
Total of cost 11,510 8,368 12,080 4,296 3,626 2,874 11,594 4,430 3,712 4,038 14,258 11,778 92,564
117
No. of bag 89 77 92 15 40 22 101 36 57 28 76 73 706
Baht per piece 10 10 10 10 10 10 10 10 10 10 10 10 120
Cost of Bag 890 770 920 150 400 220 1,010 360 570 280 760 730 7,060
No.of Middle box 255 133 195 97 34 89 170 45 36 34 223 150 1461
Baht per piece 12 12 12 12 12 12 12 12 12 12 12 12 144
Cost of Box 3060 1596 2340 1164 408 1068 2040 540 432 408 2676 1800 17532
No.of large 255 230 254 70 99 90 198 100 78 65 205 278 1,922
Baht per piece 34 34 34 34 34 34 34 34 34 34 34 34 408
Cost of box 8670 7820 8636 2380 3366 3060 6732 3400 2652 2210 6970 9452 65348
Total of cost 12,620 10,186 11,896 3,694 4,174 4,348 9,782 4,300 3,654 2,898 10,406 11,982 89,940
118
5.5 Raw Materials Cost
Raw Materials
1. Clay
Clay selection is necessary to consider especially for producer. They need to under-
stand and know the qualification of clay because there are many types of clay with different
qualifications. Producer has to know the chemical composition, plasticity, shrinkages and fire
color which are the basic needs for apply to the right objectives of producer. Clay divides into
2 types
• Primary or residual Clay
Primary clay is found in the same place as the rock from which it is derived—it has 28
not been transported by water or glacier and thus has not mixed with other forms of sediment.
Primary clay is heavy, dense, and pure. It includes kaolin that often used in ceramic and re-
fractory clays can withstand high temperatures. It contains less sand and fewer fragments.
Primary clays, when they have been cleared of rock fragments, tend to be relatively pure and
free from contamination with nonclay minerals. Potter value primary clays for their purity,
their whiteness, and their freedom from objectionable mineral or organic contamination.
Most kaolins are primary clays.
• Secondary or sedimentary Clay
Secondary or sedimentary clay is formed of lighter sediment that is carried farther in
water and deposited. This secondary clay, a mixture of sediment, is finer and lighter than
primary clay. It is clay that has been transported from the site of the original parent rock. Al-
though water is the most common agent of transportation, wind and glaciers may also carry
clay. Transported clays are more common than primary clays. They are ordinarily composed
of material from a variety of sources. They are apt to contain iron, quartz, mica, and other
impurities. It varies widely in composition. Including ball clays are highly plastic secondary
clays with little iron content. The great majority of secondary clays contain enough iron to
make them fire to a buff, brown, or red color, and the maturing temperature is usually quite
low. Varying additives give the clay different characteristics. Clay comes to a production pot-
ter in one of two forms—as a powder to which water must be added, or with water already
added.
28
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119
Thus, we select secondary clay which is ball clay
from Pa Tueng, Mae jan, Chiang Rai because there
are clay which have suit characteristics for our pro-
duction and easy for us to carry clay to our manufac-
ture due to located around our area. Clay that we use
involve with composed of material from a variety of
sources. They contain iron, quartz, mica, and other
impurities. This reduces steps in production. We
don’t need to mix other materials for molding because
ball clay already has in itself and we can save the
production cost. The potter is easy to mold pottery
because ball clay is highly plastic. Moreover, the
great majority of it contain enough iron
to make them fire to a buff, brown, or red color, and
the maturing temperature is usually quite low.
We hire a Backhole to carry clay from source to company’ 5 cubic truck then deliver to our
manufacture. We dig out clay at depth 2 meter, width 4 meter× length 6 meter per time. The
cost of clay is 350 Baht per time (full in 5 cubic trucks). Because clay that we use is around
our company, we can get a cheap price. We plan to order 2 times per month so; we pay for
clay 700 Baht a month. We will order clay at the same amount in each month because we
have a method of clay preparation before molding. It take long time for waiting ready clay
that suit to mold pottery so, we need to keep large amount of clay in our stock.
Figure 5.4: The source of raw materials
120
2. Water
We need to use water as a mixture of some dried clay. This makes an easy way for
potter to mold pottery more smooth. We cannot identify how much water we need to mix
with clay. It depends on condition of clay at that time. Sometimes there are no need water but
sometimes, water is required.
3. Wood ash glazes
Wood ash is an alkaline containing widely variable amount of Ash from many plants.
We also use local plants as ingredient in wood ash such as longan and lichee plants. We can
find those plants around our area so, we don’t need to pay for this. We can save the cost of
raw materials. The ingredients that we mix as wood ash glaze as follow:
Terminalia Alata Combretaceae
Longan tree Lychee
121
4. Ferric oxide(color stain)
We use color power in painting with high performance

quality ceramic color stains, superfine particle size ready
to use. It is suitable for decorating by decal, colored glazes
and underglaze colors on earthenware, stoneware and por-
celain. This color stain is suitable for firing range 1000-
1400° c. The retention is to keep the color into dry place
and before using in each time, should blend in its color for
more smooth when painting.
We use 30 colors stain for our painting pottery. The size of each color is about 5 kg. (1kg. =
300 Baht). Thus, we need to pay for color stain 45,000 Baht at the first time that we start
doing business [(5kg × 300 Baht) × 30 colors]. We order color stain from Cowin Color Co.,
Ltd. where is located in 86 Moo 7, Thakham Road Samaedam, Bangkhunthian, Bangkok
10150 Tel: 02 453 1788 , Website: http://www.cowincolor.com/
SF-6140 Black/Co-Free SF-6149 Black SF-6168 Stone Grey SF-6250 Royal Blue
SF-6256 Cobalt Blue SF-6258 Deep Blue SF-6262 Teal Blue SF-6280 Turquoise
SF-6300 Chocolate SF-6301 Dark Brown SF-6336 Red Brown SF-6339 Salmon Brown
SF-6412 Chrome Green SF-6449 Dark Green SF-6450 Peacock SF-6646 Bright Green
SF-6500 Scarlet SF-6502 Bright Red SF-6521 Red Orange SF-6527 Coral
SF-6530 Pink SF-6533 Alumina Pink SF-6535 Rose SF-6540 Maroon
SF-6550 Violet SF-6575 Lilac SF-6601 Mandarin SF-6623 Praseodymium
122
Table 5.6 Total cost of Raw Materials
No. Descript Total

1 Clay 8,400
2 Ferric oxide(color stain) 90,000
Total 98,400
5.6 . Direct Labor
1. Factory Manager : 1 position

Salary/ month 15,000 baht
Responsibilities:
 To manage the overall the operations of manufacturing, resale, delivery and customer
services process, Day-to-day working relationship with operations team, technical
team and commercial team. Manage the overall operations outputs to ensure optimum
service levels, productivity, cost efficiency and quality.
Supply Chain
 Ensure that on-time delivery is achieved and Customers’ expectations on standards
and requested delivery lead time are met
 Manage supply chain for re-sales items to optimize both service and inventory days
 Oversee the procurement of the equipment and raw materials to ensure that they meet
with IFF quality and delivery lead time.
 Manage the storage of the raw materials to ensure that quality is maintained and first-
in-first-out procedures are followed.
 Manage warehouse and distribution to ensure cost efficiency and effectiveness
 Optimize inventory days – minimum inventory for maximum service levels
 Minimize SMOG and Aging inventory
Production
 Continuously improve production and production supply process to increase capacity
 Measure utilization, anticipate capacity issues and resolve on time
 Oversee and manage the safety and hygiene of the manufacturing plant to provide a
safe and clean working environment and to meet the GMP and IFF safety standards
(SERA).
123
 Oversee proper Preventive Maintenance and other maintenance activities
Quality
 Oversee the QC process to ensure the consistency of the quality in both raw materials
and products.
 Implement quality behavior in people
 Oversee the whole FL production and warehouse process to ensure optimum quality
and meet GMP, AIB and HACCP standards.
 Ensure full traceability for all Raw Materials and Finished Goods
 Manage Customer Complaints, root cause analysis and implement preventive actions
Manufacturing Expense
 Manage the expenses of the operations unit to ensure that they meet the budget set
(LIP)
 Continuously seek cost optimization, balancing throughput, inventory and
 manufacturing expense
Operations Planning and execution
 Set PMP goals for the staff of operations unit aligned with operational targets and
plans
 Identify training and development needs to improve the skills, performance and occu-
pational health and safety of the employees.
 Develop the Site Master plan (5 year outlook) for required capacity and budget re-
quirements; annually prepare the Operations Capital Budget; prepare Capital requests
and manage capital projects
 Develop the Operations Plan based on Operational targets and capital Budget
Requirements:
 Bachelor degree in Food Science or related field.
 More than 5 years experiences in managing a manufacturing plant and logistics.
 Strong communication skills and leadership skills
 Strong knowledge and implementation experience in GMP/HACCP
 Customer-oriented and quality oriented
2. Technician : 1 positions
Salary / month 8,500 baht
124
3. Potter : 10 positions
Responsibilities:
 More than 5 years experienced with technical knowledge of pottery manufacturing.
 Having numerical skills by calculating cost of materials used in his design
 Working with accurate information and details
 Can work in Computer using Illustrator or anymore
Requirements:
 Experience over : 5 years
 Age begin 30 years or above
 Gender : Male/Female
4. Product Designer : 1 position

Responsibilities:
 Multi-tasking: graphic designers often work on more than one design brief at a time.
 Using a wide range of media, including photography and computer aided design.
 Developing design briefs by gathering information and data to clarify design issues.
 Thinking creatively to produce new ideas.
 Contributing ideas and design at work to the overall brief.
 Producing accurate and high quality work.
 Using innovation to redefine a design brief and meet the constraints of cost, time and
client.
 Interpreting the business needs.
 Keeping abreast of developments in IT, particularly design programs.
Requirements:
 Male/Female aged not over 28
 Bachelor’s Degree in Arts, design or related field.
 Good command in Photoshop, Illustrator etc.
 Fresh graduated preferable.
 Self-motivated, Innovative and team player.
 Highly responsibility and able to work under pressure
 Good command in English both spoken and written.
125
 Driving License holder and military exemption.
5. Quality Controller : 1 position

Responsibilities:
 To plan, implement and supervise QA function for EOC, Tablets and Outsourcer’s’
process including sampling, rejection and evaluation of raw materials and ensure that
production processes are in accordance with Good Manufacturing Practice (GMP),
Hazard Analysis Critical Control Point (HACCP), Good Laboratory Practice (GLP)
and Standard Production Instruction (SPI)
Requirements:
 Bachelor Degree in Food Science / Food Technology / Biotechnology / Product de-
velopment / Food engineering or higher degree in related field.
 Master Degree in Business Administration is advantage.
 At least 6 years experience in food industry for a graduate of Bachelor Degree in
Science and 5 years for MBA
 Strong initiative and follow-through
 Good interpersonal Skill and communication skill
 Strong leadership
 Fluent English communication and computer literacy
6. Stock Controller : 1 position

Responsibilities:
 Report to Production Director
 Subordinate is 4 Section Manager, and 110 operator in production department
 To be the window to connect between Director and Staff
 Develop the operations team, including supervisors, leads, and associates, into the co-
hesive staff to properly maintain a “Zero defects” philosophy
 Create scheduling tools to assist in controlling department work load uniformly across
a specific time horizon, Planning the production and material, man
 Ensure that operators in each department accomplish their task as per established rules
and procedures
126
 Ensure that the material is dispatched to the various sectors and that the flow of ma-
terial meets the plans
 Supplies adequate and timely reports to upper management
Requirements:
 Age 33 years old up
 Bachelor Degree in Industrial engineering, or related field
 5 years experience in Production Management, Manufacturing Environment, produc-
tion planning
 2-3 years experience in Supervisor or Leader Level
 Have a knowledge about Statistics process control (SPC), Six Sigma, TQM is a plus
 Good in English for speaking, listening, reading & writing
 Have a leadership skill
 Ability to solve problem
 Have a good human relationship
7. Baking Person : 1 position

Responsibilities:
 Responsible for conceptual design, detailed design, equipment specification, identify
Measurement & Verification System (M&V), construction and commissioning super-
vision, inspection, training, and installation of M&V system, monitor its efficiency
and verify the saving according to the M&V system.
 Design and supervise construction of Advance Large Scale Energy Efficiency Project,
Productivity Improvement, Environment and Quality project such as Cogeneration
Plant - Biomass/ NG/ Solid Fuel, Absorption Chiller, Heat Recovery, etc., for our
clients (Industrial, Commercial Building or other business).
 To collaborate with the project manager, contractor or client during project phases re-
lated to electrical engineering issues.
 Coordinating and visiting contractors on site and advising on electrical engineering is-
sues
Requirements:
 Male Thai Nationality
 Bachelor’s degree or higher in Electrical Engineering.
 Minimum 2-3 years experience in Electrical design and project management.
127
 Engineering License: Associate Engineer or higher level from Council of Engineers.
 Hands-on experiences with Power Generation System, HV/MV Substation, Refrigera-
tion, Air Conditioning System, Renewable Energy and other Energy Efficiency Tech-
nologies are preferable.
 Experience with Energy Efficiency Project, Construction of power plant, work with
Consulting Company in energy field, would be an advantage.
 Ability to influence and motivate the project team through interpersonal skills
 Ability to learn and self improvement
8. Packaging : 1 position
Responsibilities:
 Multi-tasking: graphic designers often work on more than one design brief at a time.
 Developing design briefs by gathering information and data to clarify design issues.
 Thinking creatively to produce new ideas.
 Contributing ideas and design at work to the overall brief.
 Producing accurate and high quality work.
 Interpreting the business needs.
Requirements:
 Male/Female aged not over 28
 Bachelor’s Degree in Arts, design or related field.
 Fresh graduated preferable.
 Self-motivated, Innovative and team player.
 Driving License holder and military exemption.
9. Delivering Person : 1 position

Responsibilities:
 To driving a car to serve products to customer
 To buying raw materials and equipment
128
Requirements:
 Male Thai Nationality
 Ability to solve problem
 Have a good human relationship
Table 5.7 Total direct labor cost per month
No. Position Quantity Salary Total

1 Factory Manager 1 15,000 15,000
2 Technician 1 8,500 8,500
3 Potter 10 6,000 60,000
4 Product Design 1 9,500 9,500
5 Quality Controller 1 8,000 8,000
6 Stock Controller 1 7,000 7,000
7 Baking person 1 5,000 5,000
8 Packaging 1 6,000 6,000
9 Delivering person 1 6,000 6,000
Total 125,000
129
5.7 Manufacturing Overhead
1. Factory utilities
1.1 Water Expense / month

Water is the important factor in the process of produce the pottery. From the informa-
tion if the Cray one ton, we will use water 300 liters. For Pottery Design, the operation will
depend on the sale forecast per month because our sale base on amount of tourists (Thai and
foreigner) who come to Chiang Rai and amount of new hotel and spa in Chiang Mai. We also
forecast amount of selling pottery base on seasonal factor. Thus, water expenses per month
will not the same.
Table 5.8 Water tariffs 29
29
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130
Table 5.9 Total water expense per month
Water vo- Water ex- General ser-

No. Month VAT 7% Total
lume/cu.m. pense vice
132 2,019
1 Jan 80 1,337 550
132 2,019
2 Feb 80 1,337 550
132 2,019
3 Mar 80 1,337 550
126 1,923
4 Apr 75 1,247 550
126 1,923
5 May 75 1,247 550
126 1,923
6 Jun 75 1,247 550
107 1,634
7 Jul 60 977 550
107 1,634
8 Aug 60 977 550
138 2,116
9 Sep 85 1,428 550
138 2,116
10 Oct 85 1,428 550
132 2,019
11 Nov 80 1,337 550
132 2,019
12 Dec 80 1,337 550
Total 23,366
131
1.2 Electricity Expense / month
Electricity is very important factor in our company because the method of dried will
use the electricity and almost process in production will use it also. We estimate for use elec-
tricity 22-33 K.W pressure and use in peak time. So, the electricity bill calculates from:
22-23 meter pressure in Time of use rate (TOU)
Estimate use of electricity 850 units* 2.6950 =2,290.75 Baht
Add. (+) Service expense = 228.17 Baht
Add. (+) VAT 7 % =176.32 Baht
Total Electricity expense per month =2695.25 Baht
Energy Charge
(Baht/Unit) Service fee
Time of Use Rate (TOU)
(Baht/Month)
Peak Off Peak
Pressure 22-23 Kilovolts 2.6950 1.1914 288.17
Pressure 22 Kilovolts 2.8408 1.2246 288.17
Table 5.10 The Time Of Use Rate (TOU) 30
*Peak Mon-Fri: 9a.m. - 8 p.m.

Off Peak Mon-Fri: 8p.m. - 9 a.m. & Holiday
30
http://www.pea.co.th/th/rates/rates_separateTOU3_2to6_2.htm
132
Factory insurance
1. Car insurance
Figure 5.5: Logo Ayudhya Allianz C.P.
Pottery design has to purchase the car insurance via www. Todayinsure.com. It is Al-
lianz cp insurance, which is Allianz cp 2 plus car insurance. The insurance plan provides
more cover to the damage to the vehicle insured from land transport. The limited protection
that we will get is 1,000,000 Baht. So, the Allianz cp 2 plus insurance plus taxation per year
is 7,740 Baht per year and plus enactment car free is 920, so total of insurance car plus
enactment car free is 8,660 Baht per year. It is a fix cost that we have to pay in the beginning
of the year.
2. Fire insurance
Figure5.6: Logo Muang Thai Insurance
Pottery design does fire Insurance with Muang Thai Insurance with limits protection
is 2,000,000 Baht and insurance rate is 2,579 Baht per years, it is a fix cost. Muang Thai In-
surance are protect everything in the shop and protection for year
133
5.8 Operating Cost
Table 5.11 Total operating cost
Operating Cost
No. Descript 2012 2013 2014 2015 2016
1 Raw materials 98,400 98,400 98,400 98,400 98,400
2 Direct labor cost 125,000 125,000 125,000 125,000 125,000
3 Water Expense 23,366 23,366 23,366 23,366 23,366
4 Electicity Expense 32,340 32,340 32,340 32,340 32,340
5 Factory insurance 11,239 11,239 11,239 11,239 11,239

The cost of bag and
6 box 75,358 82,192 83,160 92,564 89,940
Total 365,703 372,537 373,505 382,909 380,285
134
Table 5.12 Total operating cost Year 2012
135
136
137
5.9. Conclusion
We serve 2 types of modern pottery to consumers which are home ware (plate, bowl.
Spoon and fork and teapot) and decorative items (vase, lamp and spa set). We produce pot-
tery by natural resources which can easy to find near our area. The raw materials include with
ball clay that compose a variety of sources. The potter is easy to mold pottery because ball
clay is highly plastic. Water is also required. And the wood ash glazes use local plants as in-
gredient such as longan and lichee plants. We use color stain which is secure for general
usage. Using local material can reduce the production cost. Our pottery is unique style which
consumer can perceive value from them. The health of consumer will be safety when they use
our pottery because we use natural resources. For service process, we have two processes
that serve to the consumer who come to our shop. We open at 9 am- 9 pm. daily so, they can
choose and can touch in real. We concern in the atmospherics of store especially on color,
scent, lighting and music. And another process is we serve to hotel& Spa in Chiang Mai.
We will give the catalog and order through the representative of company. We will deliver
the product to them at Chiang Mai. We provide the protected box for breaking of product and
having a company paper bag for consumer. We also have a special box for consumer who
purchases our product as a gift for special occasion. In operation process, we require the qua-
lifications employees work with our company. We need 9 positions for operation method
which are factory manager, technician, potter, product designer, quality controller, stock con-
troller, baking person, packaging and delivering person. For manufacturing overhead, we
need to pay for factory utilities which consist of water expense and electricity expense.
Moreover, we have to pay for the insurances of company’s car and the fire of company.
138
Chapter 6
Administration Cost
139
CEO
Top Manager
Human Resource Marketing Financial

Factory Manager
Manager Manager Manager
Research & Production

Technician Quality Control Recruitment Advertising Accountant
Development Control
Produce &
Design Product Stock Control Training Selling
Baking
Packaging
Delivering
6.1 The Organization Chart of Pottery Design
140
6.2. Administration Expense
6.2.1. The Employee Salary of Pottery Design Department 31
1. Managing and controlling all department position
• Top manager department 1 person 17,000 baht

Total payment of salary 17,000 Baht
2. Employee in the Financing department
• Financing Manager 1 persons 15,000 baht
• Accountant 1 persons 13,000 baht

3. Employee in the Marketing department
• Marketing Manager 1 person 11,000 baht
• Sales person 1 persons 7,500 baht
• Advertising Assistant 1 persons 6,000 baht
** Sale person commission 0.1% for sale over-times
4. Employee in the Human Resource department
• Human Resource Manager 1 person 10,500 baht
• Recruitment 1 person 7,500 baht
• Training & Developing 1 person 7,500 baht
5. Employee in the other work department

• Housekeeper 1 person 4,500 baht
• Security Guard 1 person 4,500 baht

Total salary expense/month 104,000 Baht
**Overtime must be paid at time and one-half the regular rate of pay. The “regular rate” is an
hourly rate that will change for a salaried employee based upon the number of hours worked
31
http://www.adecco.co.th/Uploads/Knowledge-Center-Thought-Leadership/Thailand-Salary-Guide/Adecco-Thailand-
Salary-Guide-2011.pdf
141
in a week. Since salary constitutes wages at straight time for all hours worked, the employer
owes an additional half-time for the hours in excess of 40 in a week.
Explanation of Employees 32
Some things that the employee should consider in their own development include
seeking a variety of assignments, tackling tough problems and asking for feedback. Coaching
is another helpful activity, both in looking for opportunities to coach others and finding good
coaches for him or her. It can help to ask for feedback when working with a variety of people
and in a variety of situations. Employees should be looking for developmental relationships
that can provide a variety of learning. They can also identify goals for new skills and abilities
and then look for ways to meet those goals. It can also be helpful to attend classes and work-
shops to fill in conceptual needs.
The qualification of employees
• Top manager department
Specific Accountabilities:
 Controlling and monitoring daily operations and continuing improvement service lev-
el included staff’s performance together with subordinates.
 Set up the reasonable control system to avoid error and omission operations
 Controlling and monitoring DSO, billing and collection incl. aging accrual cost and
income in monthly.
 Controlling and monitoring revenue, cost of service, GP and operating expenses to
achieve company’s expectation.
 To control and monitor Branch performance according to ISO procedure.
 Work closely with Product Management and sales to set up financial and volume tar-
gets and support Key Account business development.
 Work closely with Product Management to ensure operational excellence and process
optimization.
 Other responsibilities are per Managing Director assignment
32
http://dwd.wisconsin.gov/er/labor_standards_bureau/publication_erd_13109_p.htm
142
Skills Required:
 Highly leadership skills

 Proficient in English and the other language is advantage.
 Human Relationship Management skills
 Office Management skills
 Business Management skills
 Communication and Negotiation skills
 Human Resources skills
• Financing Manager
Responsibilities:
 Responsible for formulating business budgets/planes
 Improving the accounting function
 Ensuring the statutory financial statements and annual accounting reports are prepared
in a timely manner
 Control the operating expenses and capital expenditure program and ensuring that
taxation and Regulatory affairs of the business.
 Optimize the effective use of personnel, technological resources and other business
assets
Requirements:
 Thai nationality only
 Bachelor degree in Finance & Accounting or any related fields
 At least 5 years professional experience in a similar post is required
 Clear understanding of accounting principles
 Good communication of both spoken and written English
 Proficient in Microsoft Office program especially Excel (advance level)
 Accuracy, analytical thinking with strong business sense
 Ability to plan, organize and generate expected result under pressure
 Good knowledge in taxation and legal issues
 Communicate with tenants on various payment
143
• Accountant
Responsibilities:
 Check and coding Daily Collection report and properly posting to G/L and ensure that
all documents are properly attached (Daily Collection Vouchers, Pay-in slip, Invoices,
Tax Invoices, and Withholding Tax Certificate).
 Prepare output VAT report and reconcile to G/L.
 Maintain all copy of Maintenance Service contracts
 Maintain & update Inventory system (APPX). Also prepare the reconciliation be-
tween Inventory System (APPX), G/L, and Inventory System maintained by Sigma.
 Match T order number between T billing and T cost, and prepare monthly analysis for
T billing in advance and T cost in process.
 Prepare monthly disbursement withholding tax (deducted from vendors) return to
government, and reconcile to G/L.
 Prepare monthly analysis and reconciliation reports as concerned
 Prepare bank guarantee requisition to banks and maintain control files for follow up.
Also prepare the monthly reconciliation between company record and bank record.
 Prepare a purchase tax report for submission to government on monthly basis.
 Prepare purchase tax reconciliation with G/L.
 Prepare monthly VAT return (ภพ. 30) and submit to government.
 Prepare Pay-in slip for all checks/cash received from customers to be deposited to
bank the next day.
 Coding and preparing vouchers for MER of employees and key in to APPX.
Requirements:
 University graduate BA in Finance, Accounting or equivalent.
 Good computer skills especially MS Excel
 Good communication and interpersonal skills are required
• Marketing Manager
Responsibilities:
 Assist Brand Manager in brand equity management, market & competitor’s analysis,
and development of CP-branded product range innovation in overseas markets;
144
 Work closely with Brand Manager in strategic implementation of below-the-line and
above-the-line activities as well as collaborate with related parties on packaging de-
velopment and management;
Requirements:
 Male/Female, aged between 21-25 years;
 Holder of a Bachelor’s degree in Business Administration with Marketing major, or
other related disciplines with business-related major;
 Possess 1-3 year hands-on experience in Marketing, preferably in Food and Beverage,
or FMCG; new graduates with high caliber for challenging assignments and opportu-
nity are welcome to apply for the position;
 Good command of English language and proficient with Microsoft Office programs,
the Internet, and e-mail application;
• Sales person
Responsibilities:
 Able to work independently to achieve company target
 Handle order process from design to finish products
 Dealing with merchandise quality and cost control
 Handle merchandise assortment to achieve target
 Flexible sourcing ability to selective target
Requirements:
 Thai nationality, male or female, age 25 years old up
 Bachelor or Master Degree's in Fashion Design or any related fields.
 Minimum 1 years experience about Merchandiser of Apparel.
 Good communication skill, strategic thinking, creativity, result details oriented and
problem solving skill as well as multi tasks skill.
 Positive thinking, Active, Coordinative Creative, Initiative & Effective
 Willing to work hard in fast moving & love challenge.
• Advertising Assistant
Responsibilities:
 Prepare or edit organizational publications for internal and external audiences
145
 Establish and maintain cooperative relationships with representatives of communi-
ty, employee and public interest groups.
 Arrange public appearances, lectures, or exhibits for clients to increase product and
service awareness and to promote goodwill
 Writing and editing in-house, articles and annual reports.
Requirements:
 Bachelor or Master degree in Public Relations, Business administration, or related
fields
 Minimum 4 years experience in area of news writer and public relations
 Self-motivated, analytical skill and systematic thinking
 Excellent communication, presentation and negotiation skills
 Excellent command of both spoken and written English
• Human Resource Manager
Responsibilities:
 Support Trainers/ Account executive or team member for admin works
 Delivering high quality services to participants on site for Training, Workshops, or
other projects.
Requirements:
 Male or Female, not over 27 years of age
 New Graduates are welcome, or with 1-2 years of work experience in the service in-
dustry or related field.
 At least a bachelor’s degree in any field.
 Possess professionalism and a customer service orientation.
 Strong communication, interpersonal and organizational skills.
• Recruitment
Responsibilities:
 Assist Recruitment Specialists on operation and administration of recruitment & se-
lection process, recruitment activities, and projects
 Search and Screen resumes of the candidate and make an appointment to interview
 Conduct in depth and face to face interview with the prospect candidates for final se-
lection process before submitting short listed candidates to the customer.
146
 Provide support to recruitment team for any recruitment activities, such as walk-in in-
terview, open house, universities visit, etc.
Requirements:
 Female only
 Bachelor's Degree in IT or related fields.
 Good interpersonal skill, has service mind, can work under pressure, self motivated,
good attitude
• Training & Developing
Responsibilities:
 Provide a first class career development service to the business in line with Group’s
strategy of attract.
 Develop and motivate our executive officers.
 Ensure that executive officers are identified and development interventions are
created and launched, linking effectively to succession planning process.
Requirements:
 Bachelor’s Degree or higher in HRM, Political Sciences or related field
 Fluent in both written and spoken English
 Microsoft Word, Excel and PowerPoint skill
 Strong planning, implementation and influencing skills are required
• Housekeeper
Responsibilities:
 To cleaning office and manufacture
 Access in shelf of pottery
• Security Guard
Responsibilities:
 To rescuer office and manufacture
 Access in shelf of pottery
147
6.2.2. Rental Fee
The building official of our company was buying in part of operating cost.
Therefore we don’t have rental free in administration cost.
6.2.3. The Cost of Facility Bill Payment

Telephone Expense33
The KX-TES824BX Advanced Hybrid Systems are phone systems which can
support your business and personal needs. The KX-TES824BX Up to 8 CO lines and 24 Ex-
tensions. Direct Inward System Access (DISA) with message. Uniform Call Distribution
(UCD) with message. Caller ID Display on SLT
Prepaid Promotion
Table 6.1 Calling Rate
Calling Rate
1st time Destination: Mobile Expired
Package Deposite
Destination: and 3BB Phone (day)
(baht) International
Fixed line
number
50 1.50 baht/min.
Samll 0.35 baht/min.
100
Medium 300 0.30 baht/min. 1.50 baht/min. Special rate 60 365
countries.
Large 500 0.25 baht/min. 1.25 baht/min.
(Estimate monthly phone bill is 1,790 Baht/per month.)
Internet Expense 34
A high-speed internet service by ADSL technology (Asymmetric Digital Subscriber
Line) via an existing phone line por. Maximum 6 Mbps download speed and 512 Kbps max-
imum uploading speed in always-on connection, unlimited internet access , with the transmis-
sion speed varying upon the distance and the quality of the lines.
33
http://www.totnetcall.com/VoIP/rate.aspx
34
http://www.toteservice.com/thai/adsl/
148
Promotion details of TOT’s company
• Require one-month advance payment

• Pay 100 baht equipment deposit fee (Deposit fee will be refunded when the con-
tract is terminated and router is returned in fine condition.)
• The company will gradually increase speed to 6 Mb.
• The package is 590 per month. Monthly fee (Exclusive of VAT 7%)
(Estimate monthly internet bill is 631.3 Baht/per month.)
Water Expense 35
We can get the water from Provincial Regional office. Rate of water calculate by
each person who use water by meter which recorded multiply current water rate the result
won’t less than water tariffs minimum rate in each type.
Formula to calculate
Price of Water Tariffs = [amount of using water + service fee] + value add taxes. The price of
water is calculated by the user who use much or less in business. Its citizen begs for water
supply from government to invent and build water supply system. The government takes
some part of taxes revenues to water supply system to community with appraise water Tariffs
rate to user. The water supply is created and send but no use is wasteful for water.
Table 6.2 The water expense by Type of user
Type of user
Period of using water Hose hold and Government service State Enterprises
(liter/month) etc.(sting/liter) and small busi- industry and large
Water tariffs min- ness(sting/liter) business(sting/liter)
imum rate Water tariffs mini- Water tariffs mini-
mum rate mum rate
0 - 1,000 0.755 0.900 1.00
10,001-20,000 0.850 1.175 1.300
20,001- 30,000 1.075 1.300 1.600
30,001-50,000 1.275 1.400 1.900
50,001- 80,000 1.400 1.440 2.100
100,001- 300,000 1.460 1.460** 2.150
35
http://www.business-in-asia.com/investment_costs2.html
149
300,001 - 1,000,000 1.470 1.470 2.175
1,000,001 – 2,000,000 1.480 1.480 2.150
2,000,001 – 3,000,000 1.490 1.490 2.125

3,000,001 more than 1.500 1.500 2.100
*** The company used rate 100,001- 300,000 = 1.460 Baht.
Price of water Tariffs
Estimate used (65,000 liter*1.440)/100 = 936 Baht VAT 7% = 65.52 Baht

Service Fee = 30 Baht = 1,001.52 Baht
(Total 1,001.52 + 30 = 1,001.52 Baht/month)
We estimate for use electricity 22-33K.W pressure.
Electricity Expense / month 36
Electricity is very important factor in our company because the method of dried will
use the electricity and almost process in production will use it also. We estimate for use elec-
tricity 22-33 K.W pressure and use in peak time. So, the electricity bill calculates from:
Formula to calculate
22-23 meter pressure in Time of use rate (TOU)
Estimate use of electricity 350 units* 2.6950 = 943.25 Baht
Add. (+) Service expense = 228.17 Baht
Add. (+) VAT 7 % = 81.99 Baht
Total Electricity expense per month = 1,253.42 Baht
Time of Use Rate (TOU) Energy Charge Service fee

(Baht/Unit) (Baht/Month)
Peak Off Peak
Pressure 22-23 Kilovolts 2.6950 1.1914 288.17
Pressure 22 Kilovolts 2.8408 1.2246 288.17
Table 6.3 The Time Of Use Rate (TOU) 37
36
150
*Peak Mon-Fri: 9a.m. - 8 p.m.
Off Peak Mon-Fri: 8p.m. - 9 a.m. & Holiday
6.2.4. Training & Development of Employee
Employee development is a joint, on-going effort on the part of an employee and the
organization for which he or she works to upgrade the employee's knowledge, skills, and ab-
ilities. Successful employee development requires a balance between an individual's career
needs and goals and the organization's need to get work done. Employee development pro-
grams make positive contributions to organizational performance. A more highly-skilled
workforce can accomplish more and a supervisor's group can accomplish more as employees
gain in experience and knowledge, and also supported the commonly held belief that em-
ployee development programs make positive contributions to organizational performance. A
more highly skilled workforce can accomplish more as the individuals gain in experience and
knowledge. In addition, retaining an employee saves the organization a great deal of money.
One method of retention is to provide opportunities to develop new skills. In research con-
ducted to assess what retained employees, development was one of the top three retention
items.
The Role of the Manager in Employee Development
The manager has several roles to play, but providing information and support to facilitate the em-
ployee's development is what is most important. There are a few basic roles for a supervisor in devel-
oping employees. They include:
 Coaching employees to help them determine what they need for development
 Providing both positive and corrective feedback
 Offering organizational insight, information, and advice
 Guiding the planning through goal setting and checking back over time
 Allotting time and money for development experiences
 Ensuring opportunities for applications of new learning
It is very helpful for an employee to get an honest assessment of their work, as well as access to others
who may be able to provide information or coach the employee. The successful supervisor will also
respect every employee's learning curve. It takes time for anyone to learn new skills and be able to
151
apply them well; this does not happen overnight. Building this development time into the application
of a new skill set will make the employee more successful.
(The cost of Training & Development of Employee is 20,000 Baht/Year)
152
6.2.5 Total Administration Cost Year 2012 - 2016
Table 6.4 Total Administration Cost Year 2012 – 2016
153
Table 6.5 The administration expense Year 2012
154
155
6.4. Conclusion
The expenses that an organization incurs not directly tied to a specific function such
as manufacturing/production or sales. These expenses are related to the company, and also
referred to as “administrative cost.” Our company has administration expense in official
parts. From the administration expense, The Pottery Design consist the cost of water, electric-
ity, telephone, internet, salary of employees(except salary of employees in factory overhead),
internet, cost of official equipment, and also including cost of training and development of
employees. The amount of money that we can separate in two parts, there are fixed cost and
variable cost. For the fixed cost are including the pay roll method of salary payment, cost of
internet, cost of training and development. For the variable cost, there are including the cost
of water, electricity, telephone, and other official equipment depend on used. In the other
part, the rental free no has in this part because we have purchasing the land in the part of in-
vesting and also building of factory. In administration official, we require the qualifications
employees work with our company. We need 11 positions for working in official which are
top manager department, financing manager, accountant, marketing manager, salesman, ad-
vertising assistant, human resource manager, recruitment, training & developing, housekee-
per, and security guard. Therefore, the cost that occurs within official will included in admin-
istration expense.
156
Chapter 7
Financial Analysis
157
Financial situation of company
Our company borrows money from investor. We borrow 10,000,000 Baht and the interest rate is 20 % per year. We will pay back the
principle and interest to investor every month.
7.1 Income statement
Table 7.1 Income statement Year 2012
Pottery Design company

Income Statement
For Year Ended December 31,2012
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
Sales 4,734,170 4,480,540 3,367,130 2,750,380 2,344,485 1,633,475 1,919,355 2,688,095 3,171,000 3,309,965 3,973,765 4,521,150 38,893,510
Cost of goods sold 2,635,160 2,493,960 1,874,310 1,530,920 1,305,060 909,240 1,068,410 1,496,200 1,765,160 1,842,450 2,211,790 2,516,660 21,649,320
Gross profit 2,099,010 1,986,580 1,492,820 1,219,460 1,039,425 724,235 850,945 1,191,895 1,405,840 1,467,515 1,761,975 2,004,490 17,244,190
Expense
Operating expenses 205,939 146,338 149,674 141,920 141,504 140,382 189,165 141,219 141,537 141,279 147,270 146,874 1,833,101
Administration expenses 109,134 109,134 109,134 109,134 109,134 129,134 109,134 109,134 109,134 109,134 109,134 109,134 1,329,608
Marketing expense 3,490 3,000 3,000 3,000 34,700 3,000 3,000 3,000 3,000 3,000 34,700 3,000 99,890
Pre-investment expense 6,790,500 6,790,500
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 7,169,117 318,526 321,862 314,108 345,392 332,570 361,353 313,407 313,725 313,467 351,158 319,062 10,773,747
Income before interate and taxes - 5,070,107 1,668,054 1,170,958 905,352 694,033 391,665 489,592 878,488 1,092,115 1,154,048 1,410,817 1,685,428 6,470,443
Interest expense 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 2,000,004
Income before income taxes - 5,236,774 1,501,387 1,004,291 738,685 527,366 224,998 322,925 711,821 925,448 987,381 1,244,150 1,518,761 8,470,447
Income taxes expenses 1,541,032 450,416 301,287 221,605 158,210 67,499 96,877 213,546 277,634 296,214 373,245 455,628 2,541,134
Net Income(Loss) - 6,777,806 1,050,971 703,004 517,079 369,156 157,499 226,047 498,275 647,814 691,167 870,905 1,063,133 17,243
158

Income Statement
Revenue
Sales 6,072,535 5,560,605 3,348,200 2,757,675 2,515,515 1,982,140 1,795,340 2,558,850 2,973,455 3,617,875 5,631,385 5,959,780 44,773,355
Cost of goods sold 3,380,130 3,095,210 1,863,930 1,534,910 1,400,210 1,103,290 999,330 1,424,360 1,655,090 2,014,070 3,134,760 3,317,370 24,922,660
Gross profit 2,692,405 2,465,395 1,484,270 1,222,765 1,115,305 878,850 796,010 1,134,490 1,318,365 1,603,805 2,496,625 2,642,410 19,850,695
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 609,101 319,538 321,862 314,874 410,858 333,250 591,723 313,679 314,339 313,637 416,278 320,942 4,580,081
Income before interate and taxes 2,083,304 2,145,857 1,162,408 907,891 704,447 545,600 204,287 820,811 1,004,026 1,290,168 2,080,347 2,321,468 15,270,614
Income before income taxes 1,955,289 2,017,842 1,034,393 779,876 576,432 417,585 76,272 692,796 876,011 1,162,153 1,952,332 2,193,453 13,734,434
Income taxes expenses 586,587 605,353 310,318 233,963 172,930 125,275 22,882 207,839 262,803 348,646 585,700 658,036 4,120,330
Net Income 1,368,702 1,412,489 724,075 545,913 403,502 292,309 53,390 484,957 613,208 813,507 1,366,632 1,535,417 9,614,104
159

Income Statement
Revenue
Sales 7,234,360 6,779,915 3,692,265 2,942,425 2,942,090 2,371,265 2,155,730 3,091,210 2,938,240 3,515,450 6,543,145 7,239,300 51,445,395
Cost of goods sold 4,027,010 3,773,790 2,055,060 1,638,170 1,637,780 1,320,310 1,200,320 1,720,630 1,635,880 1,957,020 3,642,670 4,030,090 28,638,730
Gross profit 3,207,350 3,006,125 1,637,205 1,304,255 1,304,310 1,050,955 955,410 1,370,580 1,302,360 1,558,430 2,900,475 3,209,210 22,806,665
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 607,241 318,526 321,992 313,908 410,596 334,560 595,997 313,467 314,881 313,659 416,518 319,704 4,581,049
Income before interate and taxes 2,600,109 2,687,599 1,315,213 990,347 893,714 716,395 359,413 1,057,113 987,479 1,244,771 2,483,957 2,889,506 18,225,616
Net Income 1,751,247 1,812,490 851,819 624,413 556,770 432,647 182,759 671,149 622,406 802,510 1,669,940 1,953,825 11,931,976
160

Income Statement
Revenue
Sales 8,118,870 7,699,740 5,501,185 4,072,650 2,993,005 2,055,930 1,920,725 2,839,470 3,815,095 4,928,990 7,458,555 7,755,660 59,159,875
Gross profit 3,599,590 3,413,670 2,439,325 1,805,710 1,326,995 911,650 851,605 1,258,840 1,691,345 2,185,600 3,306,745 3,438,260 26,229,335
Expense
Depreciation 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 661,012
Total expenses 603,571 313,700 317,412 309,532 405,562 328,110 591,541 309,377 309,141 309,467 416,290 317,110 4,530,817
Income before interate and taxes 2,996,019 3,099,970 2,121,913 1,496,178 921,433 583,540 260,064 949,463 1,382,204 1,876,133 2,890,455 3,121,150 21,698,518
Interest expense 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 75,525 906,300
Income before income taxes 2,920,494 3,024,445 2,046,388 1,420,653 845,908 508,015 184,539 873,938 1,306,679 1,800,608 2,814,930 3,045,625 20,792,218
Net Income 2,044,346 2,117,111 1,432,471 994,457 592,135 355,610 129,177 611,756 914,675 1,260,425 1,970,451 2,131,937 14,554,553
161

Income Statement
Revenue
Sales 9,999,090 9,477,535 5,128,395 4,139,630 3,371,960 2,101,045 2,151,405 3,678,015 4,571,505 5,678,590 8,287,580 9,449,070 68,033,820
Gross profit 4,433,180 4,202,285 2,273,235 1,835,020 1,495,020 931,465 954,075 1,630,325 2,026,795 2,517,910 3,674,400 4,189,620 30,163,330
Expense
Depreciation 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 661,012
Total expenses 604,681 315,518 317,228 308,930 406,110 329,584 589,729 309,247 309,083 308,327 412,438 317,314 4,528,193
Income before interate and taxes 3,828,499 3,886,767 1,956,007 1,526,090 1,088,910 601,881 364,346 1,321,078 1,717,712 2,209,583 3,261,962 3,872,306 25,635,137
Income before income taxes 3,770,489 3,828,757 1,897,997 1,468,080 1,030,900 543,871 306,336 1,263,068 1,659,702 2,151,573 3,203,952 3,814,296 24,939,017
Income taxes expenses 1,131,147 1,148,627 569,399 440,424 309,270 163,161 91,901 378,920 497,911 645,472 961,186 1,144,289 7,481,705
Net Income 2,639,342 2,680,130 1,328,598 1,027,656 721,630 380,709 214,435 884,147 1,161,791 1,506,101 2,242,766 2,670,007 17,457,312
162
7.2 Statement of Cash flow
Table 7.7 Statement of Cash flow Year 2012

Statement of Cash flow
Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total
Cash flows from operating activity:
Cash inflow
Net income (Loss) 4,734,170 4,480,540 3,367,130 2,750,380 2,344,485 1,633,475 1,919,355 2,688,095 3,171,000 3,309,965 3,973,765 4,521,150 38,893,510
Depreciation expenses 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Cash inflow from operating activity 4,794,224 4,540,594 3,427,184 2,810,434 2,404,539 1,693,529 1,979,409 2,748,149 3,231,054 3,370,019 4,033,819 4,581,204 39,614,158
Cash outflow
Cash paid for Cost of Good Sold 2,635,160 2,493,960 1,874,310 1,530,920 1,305,060 909,240 1,068,410 1,496,200 1,765,160 1,842,450 2,211,790 2,516,660 21,649,320
Cash paid for operating expense 205,939 146,338 149,674 141,920 141,504 140,382 189,165 141,219 141,537 141,279 147,270 146,874 1,833,101
Cash paid for marketing expense 3,490 3,000 3,000 3,000 34,700 3,000 3,000 3,000 3,000 3,000 34,700 3,000 99,890
Cash paid for administrative expense 109,134 109,134 109,134 109,134 109,134 129,134 109,134 109,134 109,134 109,134 109,134 109,134 1,329,608
Cash paid for interest 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 2,000,004
Cash paid for taxes 1,541,032 450,416 301,287 221,605 158,210 67,499 96,877 213,546 277,634 296,214 373,245 455,628 4,453,196
Cash outflow from operating activity 4,661,422 3,369,515 2,604,072 2,173,246 1,915,275 1,415,922 1,633,253 2,129,766 2,463,132 2,558,744 3,042,806 3,397,963 31,365,119
Net cash flows from operating activity 132,802 1,171,079 823,112 637,188 489,264 277,607 346,156 618,383 767,922 811,275 991,013 1,183,241 8,249,039
Cash inflow from investing activity:
Cash inflow
Cash received from sold equipment - - - - - - - - - - - - -
Cash outflow
Cash paid for building 5,433,420 - - - - - - - - - - - 5,433,420
Cash paid for purchase of land 600,000 - - - - - - - - - - - 600,000
Cash outflow from investing activity 6,033,420 - - - - - - - - - - - 6,033,420
Net cash flows from investing activity - 6,033,420 - - - - - - - - - - - - 6,033,420
Cash flows fom financing activity:
Cash inflow
Cash Loan 10,000,000 - - - - - - - - - - - 10,000,000
Cash inflow from financing activity 10,000,000 - - - - - - - - - - - 10,000,000
Cash outflow
Cash paid for long-tern note payable 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256
Cash outflow from financing activities 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256
Net cash flows from financing activity 9,806,744 - 193,256 - 193,256 - 193,256 - 193,256 - 193,256 - 193,256 - 193,256 - 193,256 - 193,256 - 193,256 - 193,256 9,806,744
Net cash increase or decrease 3,906,126 977,823 629,856 443,932 296,008 84,351 152,900 425,127 574,666 618,019 797,757 989,985 12,022,363
Beginning cash - 4,022,578 5,000,401 5,630,257 6,074,188 6,370,196 6,454,547 6,607,447 7,032,573 7,607,239 8,225,258 9,023,015 -
Ending cash 4,022,578 5,000,401 5,630,257 6,074,188 6,370,196 6,454,547 6,607,447 7,032,573 7,607,239 8,225,258 9,023,015 10,013,000 12,022,363
163
Cash inflow
Net income (Loss) 6,072,535 5,560,605 3,348,200 2,757,675 2,515,515 1,982,140 1,795,340 2,558,850 2,973,455 3,617,875 5,631,385 5,959,780 44,773,355
Cash outflow
Cash paid for Cost of Good Sold 3,380,130 3,095,210 1,863,930 1,534,910 1,400,210 1,103,290 999,330 1,424,360 1,655,090 2,014,070 3,134,760 3,317,370 24,922,660
Cash paid for taxes 586,587 605,353 310,318 233,963 172,930 125,275 22,882 207,839 262,803 348,646 585,700 658,036 4,120,330
Net cash flows from operating activity 1,488,810 1,532,597 844,183 666,021 523,610 412,418 173,498 605,065 733,316 933,615 1,486,740 1,655,525 11,055,400
Cash inflow
Cash outflow
Cash paid for building - - - - - - - - - - - - -
Cash paid for purchase of land - - - - - - - - - - - - -
Cash outflow from investing activity - - - - - - - - - - - - -
Net cash flows from investing activity - - - - - - - - - - - - -
Cash inflow
Cash Loan - - - - - - - - - - - - -
Cash inflow from financing activity - - - - - - - - - - - - -
Cash outflow
Cash paid for long-term note payable 148,438 148,438 148,438 148,438 148,438 148,438 148,438 148,438 148,438 148,438 148,438 148,438 1,781,256
Cash outflow from financing activities 148,438 148,438 148,438 148,438 148,438 148,438 148,438 148,438 148,438 148,438 148,438 148,438 1,781,256
Net cash flows from financing activity - 148,438 - 148,438 - 148,438 - 148,438 - 148,438 - 148,438 - 148,438 - 148,438 - 148,438 - 148,438 - 148,438 - 148,438 - 1,781,256
Net cash increase or decrease 1,340,372 1,384,159 695,745 517,583 375,172 263,980 25,060 456,627 584,878 785,177 1,338,302 1,507,087 9,274,144
Beginning cash 10,013,000 11,353,372 12,737,531 13,433,276 13,950,860 14,326,032 14,590,012 14,615,072 15,071,699 15,656,577 16,441,754 17,780,057 10,013,000
Ending cash 11,353,372 12,737,531 13,433,276 13,950,860 14,326,032 14,590,012 14,615,072 15,071,699 15,656,577 16,441,754 17,780,057 19,287,144 - 738,855
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Cash inflow
Net income (Loss) 7,234,360 6,779,915 3,692,265 2,942,425 2,942,090 2,371,265 2,155,730 3,091,210 2,938,240 3,515,450 6,543,145 7,239,300 51,445,395
Cash outflow
Cash paid for Cost of Good Sold 4,027,010 3,773,790 2,055,060 1,638,170 1,637,780 1,320,310 1,200,320 1,720,630 1,635,880 1,957,020 3,642,670 4,030,090 28,638,730
Cash paid for taxes 750,534 776,781 365,065 267,606 238,616 185,420 78,325 287,635 266,745 343,933 715,689 837,353 5,113,704
Net cash flows from operating activity 1,871,355 1,932,598 971,928 744,521 676,878 552,755 302,868 791,258 742,514 922,618 1,790,048 2,073,933 13,373,272
Cash inflow
Cash outflow
Cash inflow
Cash Loan - - - - - - - - - - - - -
Cash outflow
Cash paid for long-term note payable 114,015 114,015 114,015 114,015 114,015 114,015 114,015 114,015 114,015 114,015 114,015 114,015 1,368,180
Cash outflow from financing activities 114,015 114,015 114,015 114,015 114,015 114,015 114,015 114,015 114,015 114,015 114,015 114,015 1,368,180
Net cash flows from financing activity - 114,015 - 114,015 - 114,015 - 114,015 - 114,015 - 114,015 - 114,015 - 114,015 - 114,015 - 114,015 - 114,015 - 114,015 - 1,368,180
Net cash increase or decrease 1,757,340 1,818,583 857,913 630,506 562,863 438,740 188,853 677,243 628,499 808,603 1,676,033 1,959,918 12,005,092
Beginning cash 19,287,144 21,044,484 22,863,066 23,720,979 24,351,485 24,914,348 25,353,088 25,541,941 26,219,183 26,847,682 27,656,285 29,332,319 19,287,144
Ending cash 21,044,484 22,863,066 23,720,979 24,351,485 24,914,348 25,353,088 25,541,941 26,219,183 26,847,682 27,656,285 29,332,319 31,292,236 - 7,282,051
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Cash inflow
Net income (Loss) 9,999,090 9,477,535 5,128,395 4,139,630 3,371,960 2,101,045 2,151,405 3,678,015 4,571,505 5,678,590 8,287,580 9,449,070 68,033,820
Cash outflow
Cash paid for Cost of Good Sold 206,973 148,300 150,010 141,712 142,192 142,366 192,511 142,029 141,865 141,109 148,520 150,096 1,847,683
Cash paid for interest 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 58,010 696,120
Cash paid for taxes 1,131,147 1,148,627 569,399 440,424 309,270 163,161 91,901 378,920 497,911 645,472 961,186 1,144,289 7,481,705
Cash outflow from operating activity 1,945,727 1,615,371 1,039,563 893,992 860,498 638,037 877,067 833,122 951,785 1,097,834 1,525,070 1,614,625 13,892,689
Net cash flows from operating activity 8,108,448 7,917,248 4,143,916 3,300,722 2,566,546 1,518,092 1,329,423 2,899,977 3,674,805 4,635,840 6,817,595 7,889,530 54,802,142
Cash inflow
Cash outflow
Cash inflow
Cash Loan - - - - - - - - - - - - -
Cash outflow
Cash paid for long-term note payable 67,265 67,265 67,265 67,265 67,265 67,265 67,265 67,265 67,265 67,265 67,265 67,265 807,180
Cash outflow from financing activities 67,265 67,265 67,265 67,265 67,265 67,265 67,265 67,265 67,265 67,265 67,265 67,265 807,180
Net cash flows from financing activity - 67,265 - 67,265 - 67,265 - 67,265 - 67,265 - 67,265 - 67,265 - 67,265 - 67,265 - 67,265 - 67,265 - 67,265 - 807,180
Net cash increase or decrease 8,041,183 7,849,983 4,076,651 3,233,457 2,499,281 1,450,827 1,262,158 2,832,712 3,607,540 4,568,575 6,750,330 7,822,265 53,994,962
Beginning cash 46,117,936 54,159,119 62,009,102 66,085,754 69,319,211 71,818,492 73,269,319 74,531,477 77,364,189 80,971,729 85,540,304 92,290,634 46,117,936
Ending cash 54,159,119 62,009,102 66,085,754 69,319,211 71,818,492 73,269,319 74,531,477 77,364,189 80,971,729 85,540,304 92,290,634 100,112,899 7,877,026
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7.3 Balance sheet
Table 7.11 Balance sheet Year 2012

Balance Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets
Current assets
Cash 4,022,578 4,480,540 3,367,130 2,750,380 2,344,485 1,633,475 1,919,355 2,688,095 3,171,000 3,309,965 3,973,765 4,521,150
Prepaid insurance 937 937 937 937 937 937 937 937 937 937 937 937
Total current assets 4,023,515 4,481,477 3,368,067 2,751,317 2,345,422 1,634,412 1,920,292 2,689,032 3,171,937 3,310,902 3,974,702 4,522,087
Plant assets
Office equipment 600,400 - - - - - - - - - - -
Operating equipment 1,302,530 - - - - - - - - - - -
Land 600,000 - - - - - - - - - - -
Building 5,433,420 - - - - - - - - - - -
Total plant assets 7,936,350 - - - - - - - - - - -
Total Assets 11,959,865 4,481,477 3,368,067 2,751,317 2,345,422 1,634,412 1,920,292 2,689,032 3,171,937 3,310,902 3,974,702 4,522,087
Liability and Equity

Current Liability
Wage payable 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000
Interest payable 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667 166,667
Income tax payable 1,541,032 462,916 313,787 234,106 170,710 79,999 109,378 226,046 290,134 308,714 385,745 468,128
Total current liabilities 1,936,699 858,583 709,454 629,773 566,377 475,666 505,045 621,713 685,801 704,381 781,412 863,795
Long-term liabilities
Long-term note payable 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000
Principle payable 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256 193,256
Total long-term liabilities 9,806,744 9,806,744 9,806,744 9,806,744 9,806,744 9,806,744 9,806,744 9,806,744 9,806,744 9,806,744 9,806,744 9,806,744
Total liabilities 11,743,443 10,665,327 10,516,198 10,436,517 10,373,121 10,282,410 10,311,789 10,428,457 10,492,545 10,511,125 10,588,156 10,670,539
Stockholders'equity
Retain earning 216,422 - 6,183,850 - 7,148,131 - 7,685,200 - 8,027,699 - 8,647,998 - 8,391,497 - 7,739,425 - 7,320,608 - 7,200,223 - 6,613,454 - 6,148,452
Total stockholders'equity 216,422 - 6,183,850 - 7,148,131 - 7,685,200 - 8,027,699 - 8,647,998 - 8,391,497 - 7,739,425 - 7,320,608 - 7,200,223 - 6,613,454 - 6,148,452
Total liabilities and equity 11,959,865 4,481,477 3,368,067 2,751,317 2,345,422 1,634,412 1,920,292 2,689,032 3,171,937 3,310,902 3,974,702 4,522,087
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Balance Sheet
Assets
Current assets
Cash 11,353,372 12,737,531 13,433,276 13,950,860 14,326,032 14,590,012 14,615,072 15,071,699 15,656,577 16,441,754 17,780,057 19,287,144
Plant assets
Office equipment - - - - - - - - - - - -
Operating equipment - - - - - - - - - - - -
Land - - - - - - - - - - - -
Building - - - - - - - - - - - -
Total plant assets - - - - - - - - - - - -
Total Assets 11,354,309 12,738,468 13,434,213 13,951,797 14,326,969 14,590,949 14,616,009 15,072,636 15,657,514 16,442,691 17,780,994 19,288,081

Current Liability
Wage payable 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000
Income tax payable 586,587 605,353 310,318 233,963 172,930 125,275 22,882 207,839 262,803 348,646 585,700 658,036
Total current liabilities 943,602 962,368 667,333 590,978 529,945 482,290 379,897 564,854 619,818 705,661 942,715 1,015,051
Stockholders'equity
Retain earning 2,878,213 4,243,607 5,234,387 5,828,325 6,264,531 6,576,164 6,703,619 6,975,289 7,505,202 8,204,536 9,305,785 10,740,536
Total stockholders'equity 2,878,213 4,262,373 4,958,118 5,475,701 5,850,873 6,114,853 6,139,913 6,596,541 7,181,418 7,966,596 9,304,898 10,811,985
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Balance Sheet
Assets
Current assets
Cash 21,044,484 22,863,066 23,720,979 24,351,485 24,914,348 25,353,088 25,541,941 26,219,183 26,847,682 27,656,285 29,332,319 31,292,236
Plant assets
Land - - - - - - - - - - - -
Building - - - - - - - - - - - -
Total Assets 21,045,421 22,864,003 23,721,916 24,352,422 24,915,285 25,354,025 25,542,878 26,220,120 26,848,619 27,657,222 29,333,256 31,293,173

Current Liability
Wage payable 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000
Total current liabilities 1,077,862 1,104,109 692,393 594,934 565,944 512,748 405,653 614,963 594,073 671,261 1,043,017 1,164,681
Stockholders'equity
Retain earning 14,181,933 15,974,269 17,243,897 17,971,863 18,563,717 19,055,652 19,351,599 19,819,532 20,468,921 21,200,336 22,504,614 24,342,867
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Balance Sheet
Assets
Current assets
Cash 33,359,177 35,498,884 36,953,951 37,971,004 38,585,735 38,963,941 39,115,713 39,750,065 40,687,336 41,970,357 43,963,403 46,117,936
Plant assets
Land - - - - - - - - - - - -
Building - - - - - - - - - - - -
Total Assets 33,360,114 35,499,821 36,954,888 37,971,941 38,586,672 38,964,878 39,116,650 39,751,002 40,688,273 41,971,294 43,964,340 46,118,873

Current Liability
Wage payable 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000
Stockholders'equity
Retain earning 27,735,518 29,844,040 31,592,524 32,797,297 33,584,452 34,064,025 34,312,841 34,740,373 35,547,821 36,682,664 38,371,414 40,456,738
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Balance Sheet
Assets
Current assets
Cash 54,159,119 62,009,102 66,085,754 69,319,211 71,818,492 73,269,319 74,531,477 77,364,189 80,971,729 85,540,304 92,290,634 100,112,899
Plant assets
Land - - - - - - - - - - - -
Building - - - - - - - - - - - -
Total Assets 54,160,056 62,010,039 66,086,691 69,320,148 71,819,429 73,270,256 74,532,414 77,365,126 80,972,666 85,541,241 92,291,571 100,113,836

Current Liability
Wage payable 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000 229,000
Income tax payable 1,131,147 1,148,627 569,399 440,424 309,270 163,161 91,901 378,920 497,911 645,472 961,186 1,144,289
Stockholders'equity
Retain earning 49,328,544 57,161,047 61,816,927 65,179,359 67,809,794 69,406,730 70,740,148 73,285,841 76,774,390 81,195,405 87,630,021 95,269,182
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7.4 Conclusion
In term of financial analysis, Pottery Design has to provide the information of finan-
cial statement analysis for the investor to make decision. We prepare financial analysis for
to know us. The investor will seek the capability, stability, profitability, solvency, and liquidi-
ty of company in financial statement financial statement consists of income statement, cash
flow and balance sheet. For income statement, it shows the company profit or loss that comes
from the revenue deduct by expense of operating, administration, marketing, pre-investment
and the cost of depreciation. We do income statement for report a company's earnings to in-
vestors over a specific period of time. Investors will make decisions based on the reported
earnings from the income statement. It provides important insights into how effectively man-
agement is company can control their expenses, the amount of interest income and expense,
and the taxes paid. From Pottery Design income statement shows that we only get the loss on
first month of beginning year because it takes cost too much about expense. For other months
we can get net income. Cash flow let investors to understand how a company's operations are
running, where its money is coming from, and how it spends. It is determined into three areas
which are operating activities, investing activities and financial activities. The investor can
see the return over rate of company from cash flow. Almost of liquidation in Pottery Design
is positive, this shows that we quite have cash on hand. For balance sheet, it is a snapshot of
the company’s accounts or assets, liabilities and shareholders’ equity. The investor can get
the idea of the company’s financial position along what the company owns and owes. Total
asset and total liability & equity of Pottery Design are equal. This means our company has
enough liquidation. We are a newly company which is well in financial term. Therefore, we
are a consistent to make profit and can deal with any financial risk that will occur with the
company.
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Chapter 8
Risk Management
173
Risk Management
Risk management is a process for identifying, assessing, and prioritizing risks of dif-
ferent kinds. It will create eliminate the impact of negative events and we have to plan to re-
duce the negative impacts of our company. 38 It may also effect to our income. Our company
“Pottery Design’ may also have a lot of risk in near future. Many people love to decorate
their home, shop, company, hotel and many kinds of businesses in these days. That is a good
point to run for our business though we will have a lot of general problems to solve and we
have to have solution before we start our business, especially for risk manager to create and
solve for it in a company. However, there are many types of risk can occur in our company.
We have two types of will mainly effect on our business. They are external risk and internal
risk because risks will not come not only from external but also from internal. Therefore, we
need to prepare for it.
8.1 External risks
External risk management is about the probability of loss. Strictly, it is about the de-
gree of affordability of the worst possible loss. A careful external risk management plan en-
sures that each individual bet and each collection of correlated bets risks less than half of our
available bankroll. The external risk management process should be the same for all bets. The
primary question you should always be asking yourself is how much you can lose and how
much you can afford to lose. The external risks that we may face are as follow:
8.1.1. Competitor Risk

More and more competitors are come to market to challenge with other competitors.
Year by year many entrepreneurs are competed with other company. Chiang Rai is a province
that a lot of natural resources that we can produce pottery easily than other province not like
in Bangkok. Therefore, many people who have rich money or wealth want to come to Chiang
Rai and build pottery business as a second business. Some new entrepreneurs do pottery
business as an art. People love to decorate with art and design in their home in these days.
One more thing is pottery or art decorations are valuable and high seller in 2012. Though, we
have a lot of competitors in market we have to prepare for it for example to make customer
trust, to make customer believe and do what we said in menu and make customer happy by
using our things and products.
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8.1.2. Customer Demand Risk
Customer behavior is uncontrollable things which always happened to the company.

Customer keeps changing behavior of them. There is nobody can control their mind chang-
ing. The solution of us is to need to know what they want. We need to keep in touch with cus-
tomer. We need to make our product with more fashionable than our competitors. We will do
what we said and what the customer order. We show our responsibility and wiliness.
8.1.3. Political Risk
The election of prime minister of Thailand is keep choosing in the time is come.
People keep busy with it and political unstable is effect to the country. It is not only to the
people but also to the country income, economic and social effect. The encouragement of in-
ternational relations is higher than before. Thailand’s foreign policy with ASEAN is prepared
strongly to be one of the best successful countries within ASEAN in 2015. After ASEAN
ECONOMIC COMMUNITY (AEC) is open not only Thailand but also other countries can
get more opportunities in job. Thailand has the strong relationship with United States. That is
a good point of view from political risk such as the income of Thailand workers are lower
than before so we need to be more effective to get job, to get foreign visitors, to get more for-
eign money. More and more people are jobless if we compare with 2001. There are a lot of
close work with Europe however currently hold of full diplomatic relations with the EU.
High rate of employee can effect to the people. Thailand in these days effect to the workers
and employee and also to the company by because of the incontrollable things for example
flooded in Bangkok. This factor is not only effect to Chiang Rai but indirectly effect to the
Chiang Rai employment. These are also the solutions to solve the problem in a country.
Thailand people effect because of all of the reasons with income, economy and so on. Even
though, this kind of problem is happen in Thailand, we cannot control by ourselves, we will
set our product with low price and to make more beautiful, to make more attractions and to
make more promote in marketing are the reasons that we can solve the external problem or
unexpected problems to the company. Even the political risk is not really directly effect to the
company but indirectly effect to us.
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8.1.4. Economic Risk 39
The cost of fuel is high. The cost of rice is high. Everything of the cost of living in
Thailand is high if we compare with 2006. Economic of the people is not really good. People
are rare to buy and make decorate for their building with pottery unless they have to do or
their decoration is still good as before. Customer will think they can decorate with other
things such as painting by not using pottery to decorate in their building, business, shop and
hotel. It may be the economics of people, can also be the reason of the price of pottery is high
than other decorating things. So, what we have to do is we need to be more effective and sell
with low price as much as we can. The cost of ceramic is also high that affect and problems.
The cost of ceramic increase may affect the confidence of consumers.
Despite disruptions to the supply of goods and services as a result of the floods, con-
sumer prices fell by 0.5% month on month in December. On a year by year basis, the rate of
inflation slowed from 4.2% in November to 3.5%. The Economist Intelligence Unit expects
the rate of inflation to slow to 2.5% on average this year, from 3.8% in 2011. [From market
research report of REPORT BUYER] After lowering its main interest rate, the one-day re-
purchase rate, for the first time in more than two years, the Bank of Thailand will lower the
cost of borrowing again in early 2012 to support the flood-hit economy. As we know that the
economics of Thailand is lowering. The annually sale of our company will also low. The
problem of economic effect is directly effect to the every business. We cannot do anything
about this. What we can do is we need to be prepared well about every uncontrollable effect.
Anyhow, we do not need to afraid too much for it now is 2012 and 2015 is going to reach
soon. We will have opportunities to do economic with other ASEAN countries. At that time,
we can express our marketing, we can send to other neighbor countries such as China,
Myanmar, Lao, Cambodia and other neighbor countries with no tax and we can get more
profit.
8.1.5. Social Risk
As we are doing business in here Chiang Rai, the government supports the local
people a lot such as hill tribe people, A Khar people and any other nationality around here.
Social risk is not really cause to us because our company is pottery but we should to involve
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with the CSR (corporate social responsibility) community. It is to make people to get high
living standard and to get good image of our company within these area.
8.1.6. Technology Risk
Technology is one of the most important to use in an organization. The workers are
using machine to produce the products, office staff are using technology to make more attrac-
tive design and office work with high technology. To produce the good one or perfect one we
need to use high technology things and upgrade our machine. The office staffs have to have
guideline to set and new knowledge to let worker know how to use after upgrade our machine
or technology things.
• Internet
Now a days, everybody use internet not only a little child or but also the gray people.
We use internet to promote our products by using website, facebook, twitter, etc. By using
internet is a part of successful to promote new thing or old thing. However, internet connec-
tion is not really good in sometime even we pay money monthly. The connection is bad
which depend on the company. Sometime we pay monthly but we cannot use as we want.
The demand of connection is high than supply usually. So, if we want to get a good connec-
tion we have to pay more and to get a better one. That is the only way to solve the problem.
• Machine
The new technology of the pottery machine is more and more come out to the market.
We need to upgrade it as much as we can. Sometime the old machines are unsafe for the
workers. It can give danger to our workers. We need to prepare for it. If worker working un-
der the situation of unsafe, if the accident happened worker can complain and the police will
charge us as we are not a good company, working in our company is unsafe or etc. Computer
and other office things also is the machine that is related with technology.
• Information Technology
Management information technology is import in our business. We have to use it as
we are in this era but MIT( management information technology) effective cause during op-
eration. So, we need to make decision in operations management and we need to corporate
with survival. This is the way that we can solve our main problem in information technology.
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8.1.7. Environment Risk
• Flood 40
For our business are doing business in Mea Jan, Chiang Rai which located
on the fault. Flooding is a natural process and can happen at any time in a wide variety of lo-
cations. It constitutes a temporary covering of land by water and presents a risk only when
people, their property and/or environmental assets are present in the area which floods. Un-
derstanding flood risk is a key step in managing the impacts of flooding. Flood risk is a com-
bination of the likelihood of flooding and the potential consequences arising. These Guide-
lines recommend a staged approach to flood risk assessment that covers both the likelihood of
flooding and the potential consequences. Therefore, our company also learning basics of
knowledge for protect our company from lose of factory and office when we meet flood, we
must observe continuously and how we can avoid effectively applied to lessening the adverse
effects of the flood on our company.
• Earthquake 41
Hundreds of active earthquake faults have been identified over the past few decades
that could generate earthquakes affecting major population centers in the city. The event
started almost a hundred years of research and development towards building safer communi-
ties. Today, earthquake safety is considered in all aspects of planning, building, operating
business, and in developing a safe and sustainable living environment. So, our company also
learning the basics of knowledge management and how we can avoid effectively applied to
lessening the adverse effects of the earthquake on our company.
8.2 Internal risk
Internal risk is a kind of risk which happens in a company. It can happen many condi-
tions for example employee risk which accidents during working or may be employee unsta-
ble. Most of internal risks can control however some risk cannot control as we think. Follow-
ing are the internal risk which can happen to our company:
8.2.1. Human resources risk
The consumer may have some mistakes during their works. For example, they are lost
of effect efficiency, expert and knowledge due to getting a few training from company. In
other hand, for recruitment, the company cannot know the real behavior or performance in
who is good or bad in working. This is the hard work for HR staff to duel with this issue. If
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we have problem with driver such as driver did not come to work or driver is drunk. This rea-
son affect to late delivery. This also change company’s image to be bad way. More problems
are release of personal information, reputation in the community, and abuse. Abuse can be
either one-time or ongoing such as physical, emotional, psychosocial, and sexual and finan-
cial. In addition, employee may often take leaves. It makes ability in working of company
force slower. From previous problems, we consider to train our employees at the first time of
their coming for making higher performance and going to the same standard together. More-
over, we have to protect our company by law. We have to have specific law for the employee
it have to let them know during they come to work at the first time. The legal of the company
which is the employee can do or cannot do.
Employee Health risk

• Pottery glazes to be used with foodstuffs causing harm to health of staff and visitors.
The ingestion of toxic will be harmful substances. Solutions: Do not use lead based
glazes. Ensure glazes or color do not release metallic compounds when they come
into contact with acids contained in food stuffs. Ensure glazes are used in accordance
with the manufacturer’s instructions.
• One more thing is employee manual handling which is muscular skeletal injuries. If
workers work long time, they may have problems with skeletal and also during
working time because of materials.
Solutions: Staff carefully supervised and correct procedures for loading and un-
loading strictly observed. Worker should have appropriate footwear worn and mechanical
lifting aids available such as trolleys. Heavy items stored at waist level.
8.2.2. Marketing risk

Marketing department or staff in office is one of the departments that have to commu-
nicate with all of our customers. They have to know what are customer needs and wants, ask-
ing customers such as questionnaires, promoting our products with many ways and any kind
of way to do with marketing to get our sale target. The majority of managers understand how
risk management applies to their business. They understand what a disaster is and its poten-
tial for causing loss of revenue as well as public trust. The major challenge to marketing risk
management is the feeling that a disaster. Marketing Risk management professionals need to
keep the horror, so to speak, present.
179
8.2.3. Information risk
The information of pottery industry is quite hard to find especially for statistics. Ac-
tually, there are many organizations that supports the information of pottery business, but al-
most of them offer the information that we don’t want. It shows only general information but
not specific information such as amount of market share within industry. Therefore, we need
to find the information from many sources to analyze by ourselves. This can be wrong for our
understanding. We will know in the different way from the fact. Moreover, we are newly
company, so we have a little experience and information about market, consumer or other
factors that relate to us. To lose of needed information means losing a tool to support compa-
ny to run business for the success. Finally, we realize that we can solve these problems by
doing research, questionnaire, observation, etc in the market. We think that doing this way
can support and make us get more and clearly information.
8.2.4. Operation risk
We take long time to produce pottery because it is handmade process with a few ex-
pert potters. Hence, the amount of pottery that produces in each time quit small. In case, con-
sumer hurries us to deriver pottery with large amount for them, it take long time to deriver
them because of long time operation. For the helpers of the potter; they are not expert, so they
cannot mange the most effective for materials. They don’t know how much material will be
suitable to use. This makes longer in operation because the expert potter have to reproduce
the pottery from the mistake of helper. However, we have to face with operation risk, we
need to develop our system and strategies clearly and announce to all workers. So, they will
follow the company’s system and better know how to perform their tasks in suitable way.
8.2.5. Risk of cost
The cost always change fluctuate all the time. Sometimes, we cannot follow imme-
diately. As the wage of employee, they request to give more wage when company face with
good situation in the market. In other hand, if we are in bad economy, it is hard for us to de-
crease their wage due to we increase the wage at the first time when having good situation.
For material and equipment cost; it also depends on economic situation, according to we
don’t have enough information about some equipment, we may buy the wrong equipments
and waste much money from our miss understanding. Also the cost problem is the reason
from the mistake of accountants. They have some mistake in calculating so; it damages the
180
system of company’s cost. Company will pay the wrong amount of money to supplier and get
decreased profit. In consequence, we have to concern about the situation that relate to the
company’s cost all the time. We need to check the price of raw material and more knowing
about what we purchase. This will prevent us from any cost mistakes.
8.2.6. Fire Risk
Working area should be non-smoking area and property damage. If fire all of the staff
danger and our own stuff will be gone so please make sure to check staff. The solution is to
check fire conducted and reviewed annually. Rubbish not allowed accumulating located in
separate room and area. Flammable materials are not to be stored in the room or working
place.
8.2.7. Punctuality Risk
Sometime we can have problems with our machine, car and employee. If we have
problem with our machine such as machine is broke or accident during working. If we have
problem with our cars such as car is broken, car accident or cannot arrived to the customer
punctuality.. Therefore, we need to be careful for machine, accidents, punishment to driver if
he did something wrong or legally attack to drivers and employee.
8.2.8. Budget risk
There are a few capital of company while we want to start doing business. Thus,
company needs the help from financial institutions but we concern in which these institutions
will give their supports for us or not. If they don’t help us, our plans are difficult to do. Be-
cause we need to use much money to do business at the first, we are not sure about this. Also
they may not confident us that can we pay back the large money for them or not. Therefore,
we have to present the clear information to get the confidence from them and they will give
their supports for us to run business.
181
8.2.9. Financial risk
Financial risk causes the problem to our company. Therefore, we need to manage with the
unexpected situation as follow:
1 Decreasing sale
• If total sale of company decrease5%, so our sale revenue will decrease as fol-
low:
Year 2012 Sale revenue is 38,893,584 Baht
• If sale revenue decreases 5%, it will affect net income of company as follow:
Year 2012 Net income is 17,243 Baht
Year 2013 Net income is 7,187,350.55 Baht
182
Table 8.1 Total sale of company decrease 5% Year 2012
Sales Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Product Price Units Sales Units Sales Units Sales Units Sales Units Sales Units Sales Units Sales Units Sales Units Sales Units Sales Units Sales Units Sales
Plate 450 450 202,500 423 190,350 340 153,000 267 120,150 230 103,500 165 74,250 199 89,550 256 115,200 305 137,250 312 140,400 384 172,800 445 200,250 1,699,200
Bowl 650 450 292,500 431 280,150 329 213,850 261 169,650 229 148,850 156 101,400 187 121,550 251 163,150 317 206,050 324 210,600 370 240,500 441 286,650 2,434,900
Spoon/Fork 125 468 58,500 428 53,500 335 41,875 272 34,000 238 29,750 163 20,375 196 24,500 262 32,750 308 38,500 315 39,375 387 48,375 436 54,500 476,000
Cup 360 469 168,840 439 158,040 327 117,720 263 94,680 227 81,720 153 55,080 185 66,600 253 91,080 311 111,960 326 117,360 390 140,400 428 154,080 1,357,560
Tea pot 1,040 475 494,000 425 442,000 338 351,520 274 284,960 236 245,440 164 170,560 194 201,760 264 274,560 305 317,200 317 329,680 387 402,480 449 466,960 3,981,120
Vase 4,680 463 2,166,840 440 2,059,200 325 1,521,000 265 1,240,200 225 1,053,000 155 725,400 183 856,440 267 1,249,560 314 1,469,520 328 1,535,040 394 1,843,920 443 2,073,240 17,793,360
Lamp 2,520 462 1,164,240 443 1,116,360 331 834,120 276 695,520 234 589,680 167 420,840 192 483,840 258 650,160 302 761,040 319 803,880 381 960,120 436 1,098,720 9,578,520
Spa set 415 450 186,750 436 180,940 323 134,045 268 111,220 223 92,545 158 65,570 181 75,115 269 111,635 312 129,480 322 133,630 398 165,170 450 186,750 1,572,850
Total 4,734,170 4,480,540 3,367,130 2,750,380 2,344,485 1,633,475 1,919,355 2,688,095 3,171,000 3,309,965 3,973,765 4,521,150 38,893,510
Plate 450 505 227,250 370 166,500 260 117,000 239 107,550 210 94,500 185 83,250 224 100,800 190 85,500 245 110,250 268 120,600 370 166,500 520 234,000 1,613,700
Bowl 650 505 328,250 370 240,500 260 169,000 239 155,350 210 136,500 190 123,500 229 148,850 192 124,800 245 159,250 264 171,600 370 240,500 520 338,000 2,336,100
Spoon/Fork 125 500 62,500 375 46,875 262 32,750 241 30,125 211 26,375 188 23,500 227 28,375 195 24,375 247 30,875 261 32,625 368 46,000 523 65,375 449,750
Cup 360 506 182,160 374 134,640 261 93,960 238 85,680 211 75,960 184 66,240 222 79,920 192 69,120 248 89,280 260 93,600 367 132,120 524 188,640 1,291,320
Tea pot 1,040 512 532,480 376 391,040 259 269,360 232 241,280 218 226,720 186 193,440 226 235,040 191 198,640 240 249,600 265 275,600 365 379,600 529 550,160 3,742,960
Vase 4,680 504 2,358,720 372 1,740,960 262 1,226,160 240 1,123,200 215 1,006,200 200 936,000 225 1,053,000 192 898,560 244 1,141,920 266 1,244,880 370 1,731,600 525 2,457,000 16,918,200
Lamp 2,520 501 1,262,520 375 945,000 265 667,800 236 594,720 219 551,880 195 491,400 229 577,080 192 483,840 243 612,360 264 665,280 371 934,920 521 1,312,920 9,099,720
Spa set 415 510 211,650 373 154,795 263 109,145 242 100,430 216 89,640 190 78,850 228 94,620 189 78,435 241 100,015 267 110,805 374 155,210 526 218,290 1,501,885
Total 5,165,530 3,820,310 2,685,175 2,438,335 2,207,775 1,996,180 2,317,685 1,963,270 2,493,550 2,714,990 3,786,450 5,364,385 36,953,635
183
Plate 450 450 202,500 370 166,500 247 111,150 210 94,500 190 85,500 183 82,350 247 111,150 198 89,100 235 105,750 260 117,000 370 166,500 475 213,750 1,545,750
Bowl 650 450 292,500 370 240,500 250 162,500 210 136,500 190 123,500 183 118,950 247 160,550 188 122,200 235 152,750 260 169,000 370 240,500 477 310,050 2,229,500
Spoon/Fork 125 442 55,250 372 46,500 245 30,625 213 26,625 196 24,500 185 23,125 250 31,250 190 23,750 231 28,875 254 31,750 374 46,750 480 60,000 429,000
Cup 360 447 160,920 369 132,840 243 87,480 215 77,400 195 70,200 188 67,680 246 88,560 195 70,200 230 82,800 258 92,880 374 134,640 481 173,160 1,238,760
Tea pot 1,040 440 457,600 365 379,600 241 250,640 216 224,640 197 204,880 184 191,360 250 260,000 187 194,480 231 240,240 260 270,400 370 384,800 479 498,160 3,556,800
Vase 4,680 444 2,077,920 368 1,722,240 244 1,141,920 214 1,001,520 199 931,320 182 851,760 255 1,193,400 186 870,480 235 1,099,800 260 1,216,800 368 1,722,240 470 2,199,600 16,029,000
Lamp 2,520 441 1,111,320 371 934,920 248 624,960 212 534,240 198 498,960 180 453,600 254 640,080 187 471,240 233 587,160 259 652,680 378 952,560 472 1,189,440 8,651,160
Spa set 415 446 185,090 369 153,135 248 102,920 213 88,395 194 80,510 180 74,700 244 101,260 192 79,680 239 99,185 256 106,240 375 155,625 480 199,200 1,425,940
Total 4,543,100 3,776,235 2,512,195 2,183,820 2,019,370 1,863,525 2,586,250 1,921,130 2,396,560 2,656,750 3,803,615 4,843,360 35,105,910
Plate 450 502 225,900 380 171,000 205 92,250 186 83,700 165 74,250 152 68,400 205 92,250 170 76,500 191 85,950 215 96,750 370 166,500 499 224,550 1,458,000
Bowl 650 505 328,250 380 247,000 205 133,250 186 120,900 165 107,250 152 98,800 200 130,000 177 115,050 191 124,150 215 139,750 370 240,500 498 323,700 2,108,600
Spoon/Fork 125 503 62,875 377 47,125 208 26,000 190 23,750 167 20,875 155 19,375 208 26,000 169 21,125 190 23,750 219 27,375 371 46,375 499 62,375 407,000
Cup 360 504 181,440 375 135,000 211 75,960 191 68,760 170 61,200 155 55,800 203 73,080 176 63,360 194 69,840 214 77,040 375 135,000 497 178,920 1,175,400
Tea pot 1,040 501 521,040 384 399,360 206 214,240 192 199,680 169 175,760 154 160,160 202 210,080 173 179,920 189 196,560 217 225,680 374 388,960 498 517,920 3,389,360
Vase 4,680 500 2,340,000 382 1,787,760 212 992,160 189 884,520 168 786,240 153 716,040 207 968,760 170 795,600 190 889,200 213 996,840 374 1,750,320 495 2,316,600 15,224,040
Lamp 2,520 506 1,275,120 385 970,200 207 521,640 193 486,360 172 433,440 150 378,000 200 504,000 175 441,000 192 483,840 215 541,800 376 947,520 496 1,249,920 8,232,840
Spa set 415 504 209,160 383 158,945 209 86,735 194 80,510 171 70,965 152 63,080 204 84,660 172 71,380 190 78,850 214 88,810 373 154,795 500 207,500 1,355,390
Total 5,143,785 3,916,390 2,142,235 1,948,180 1,729,980 1,559,655 2,088,830 1,763,935 1,952,140 2,194,045 3,829,970 5,081,485 33,350,630
184
Plate 450 502 225,900 345 155,250 202 90,900 189 85,050 160 72,000 140 63,000 195 87,750 154 69,300 172 77,400 198 89,100 335 150,750 490 220,500 1,386,900
Bowl 650 500 325,000 345 224,250 200 130,000 188 122,200 165 107,250 140 91,000 195 126,750 150 97,500 172 111,800 200 130,000 335 217,750 490 318,500 2,002,000
Spoon/Fork 125 504 63,000 349 43,625 205 25,625 180 22,500 166 20,750 141 17,625 192 24,000 149 18,625 170 21,250 197 24,625 337 42,125 495 61,875 385,625
Cup 360 505 181,800 348 125,280 207 74,520 179 64,440 158 56,880 143 51,480 193 69,480 150 54,000 175 63,000 199 71,640 339 122,040 493 177,480 1,112,040
Tea pot 1,040 505 525,200 349 362,960 206 214,240 186 193,440 157 163,280 144 149,760 191 198,640 151 157,040 173 179,920 200 208,000 341 354,640 492 511,680 3,218,800
Vase 4,680 503 2,354,040 349 1,633,320 204 954,720 184 861,120 160 748,800 141 659,880 197 921,960 153 716,040 171 800,280 201 940,680 337 1,577,160 497 2,325,960 14,493,960
Lamp 2,520 503 1,267,560 347 874,440 203 511,560 183 461,160 160 403,200 140 352,800 196 493,920 154 388,080 176 443,520 201 506,520 337 849,240 496 1,249,920 7,801,920
Spa set 415 501 207,915 349 144,835 200 83,000 182 75,530 156 64,740 145 60,175 194 80,510 152 63,080 179 74,285 198 82,170 335 139,025 498 206,670 1,281,935
Total 5,150,415 3,563,960 2,084,565 1,885,440 1,636,900 1,445,720 2,003,010 1,563,665 1,771,455 2,052,735 3,452,730 5,072,585 31,683,180
185
Table 8.6 Income statement of Sale decrease 5% Year 2012

Income Statement
Revenue
Sales 4,734,170 4,480,540 3,367,130 2,750,380 2,344,485 1,633,475 1,919,355 2,688,095 3,171,000 3,309,965 3,973,765 4,521,150 38,893,510
Gross profit 2,099,010 1,986,580 1,492,820 1,219,460 1,039,425 724,235 850,945 1,191,895 1,405,840 1,467,515 1,761,975 2,004,490 17,244,190
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 7,169,117 318,526 321,862 314,108 345,392 332,570 361,353 313,407 313,725 313,467 351,158 319,062 10,773,747
Net Income(Loss) - 6,777,806 1,050,971 703,004 517,079 369,156 157,499 226,047 498,275 647,814 691,167 870,905 1,063,133 17,243
186

Income Statement
Revenue
Sales 5,165,530.00 3,820,310.00 2,685,175.00 2,438,335.00 2,207,775.00 1,996,180.00 2,317,685.00 1,963,270.00 2,493,550.00 2,714,990.00 3,786,450.00 5,364,385.00 36,953,635.00
Cost of goods sold 2,875,360.00 2,126,520.00 1,494,650.00 1,357,270.00 1,228,890.00 1,111,090.00 1,290,140.00 1,092,840.00 1,388,020.00 1,511,260.00 2,107,680.00 2,986,010.00 20,569,730.00
Gross profit 2,290,170.00 1,693,790.00 1,190,525.00 1,081,065.00 978,885.00 885,090.00 1,027,545.00 870,430.00 1,105,530.00 1,203,730.00 1,678,770.00 2,378,375.00 16,383,905.00
Expense
Operating expenses 206,423.00 147,350.00 149,674.00 142,686.00 141,970.00 141,062.00 189,535.00 141,491.00 142,151.00 141,449.00 147,390.00 148,754.00 1,839,935.00
Administration expenses 109,134.00 109,134.00 109,134.00 109,134.00 109,134.00 129,134.00 109,134.00 109,134.00 109,134.00 109,134.00 109,134.00 109,134.00 1,329,608.00
Marketing expense 233,490.00 3,000.00 3,000.00 3,000.00 99,700.00 3,000.00 233,000.00 3,000.00 3,000.00 3,000.00 99,700.00 3,000.00 689,890.00
Depreciation 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 720,648.36
Total expenses 609,101.03 319,538.03 321,862.03 314,874.03 410,858.03 333,250.03 591,723.03 313,679.03 314,339.03 313,637.03 416,278.03 320,942.03 4,580,081.36
Income before interate and taxes 1,681,068.97 1,374,251.97 868,662.97 766,190.97 568,026.97 551,839.97 435,821.97 556,750.97 791,190.97 890,092.97 1,262,491.97 2,057,432.97 11,803,823.64
Interest expense 128,015.00 128,015.00 128,015.00 128,015.00 128,015.00 128,015.00 128,015.00 128,015.00 128,015.00 128,015.00 128,015.00 128,015.00 1,536,180.00
Income before income taxes 1,553,053.97 1,246,236.97 740,647.97 638,175.97 440,011.97 423,824.97 307,806.97 428,735.97 663,175.97 762,077.97 1,134,476.97 1,929,417.97 10,267,643.64
Income taxes expenses 465,916.19 373,871.09 222,194.39 191,452.79 132,003.59 127,147.49 92,342.09 128,620.79 198,952.79 228,623.39 340,343.09 578,825.39 3,080,293.09
Net Income 1,087,137.78 872,365.88 518,453.58 446,723.18 308,008.38 296,677.48 215,464.88 300,115.18 464,223.18 533,454.58 794,133.88 1,350,592.58 7,187,350.55
187

Income Statement
Revenue
Sales 4,543,100.00 3,776,235.00 2,512,195.00 2,183,820.00 2,019,370.00 1,863,525.00 2,586,250.00 1,921,130.00 2,396,560.00 2,656,750.00 3,803,615.00 4,843,360.00 35,105,910.00
Cost of goods sold 2,528,920.00 2,102,010.00 1,398,420.00 1,215,580.00 1,124,000.00 1,037,330.00 1,439,560.00 1,069,380.00 1,334,020.00 1,478,860.00 2,117,230.00 2,696,060.00 19,541,370.00
Gross profit 2,014,180.00 1,674,225.00 1,113,775.00 968,240.00 895,370.00 826,195.00 1,146,690.00 851,750.00 1,062,540.00 1,177,890.00 1,686,385.00 2,147,300.00 15,564,540.00
Expense
Depreciation 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 60,054.03 720,648.36
Total expenses 607,241.03 318,526.03 321,992.03 313,908.03 410,596.03 334,560.03 595,997.03 313,467.03 314,881.03 313,659.03 416,518.03 319,704.03 4,581,049.36
Interest expense 98,328.00 98,328.00 98,328.00 98,328.00 98,328.00 98,328.00 98,328.00 98,328.00 98,328.00 98,328.00 98,328.00 98,328.00 1,179,936.00
Net Income 916,027.68 880,159.68 485,418.48 389,202.78 270,512.18 275,314.88 316,655.48 307,968.48 454,531.68 536,132.08 820,077.28 1,210,487.58 6,862,488.25
188

Income Statement
Revenue
Sales 5,143,785.00 3,916,390.00 2,142,235.00 1,948,180.00 1,729,980.00 1,559,655.00 2,088,830.00 1,763,935.00 1,952,140.00 2,194,045.00 3,829,970.00 5,081,485.00 33,350,630.00
Cost of goods sold 2,863,260.00 2,180,000.00 1,192,410.00 1,084,400.00 962,940.00 868,170.00 1,162,690.00 981,920.00 1,086,640.00 1,221,310.00 2,131,880.00 2,828,580.00 18,564,200.00
Gross profit 2,280,525.00 1,736,390.00 949,825.00 863,780.00 767,040.00 691,485.00 926,140.00 782,015.00 865,500.00 972,735.00 1,698,090.00 2,252,905.00 14,786,430.00
Expense
Depreciation 55,084.30 55,084.30 55,084.30 55,084.30 55,084.30 55,084.30 55,084.30 55,084.30 55,084.30 55,084.30 55,084.30 55,084.30 661,011.60
Total expenses 603,571.30 313,700.30 317,412.30 309,532.30 405,562.30 328,110.30 591,541.30 309,377.30 309,141.30 309,467.30 416,290.30 317,110.30 4,530,816.60
Interest expense 75,525.00 75,525.00 75,525.00 75,525.00 75,525.00 75,525.00 75,525.00 75,525.00 75,525.00 75,525.00 75,525.00 75,525.00 906,300.00
Net Income 1,121,000.09 943,015.29 389,821.39 335,105.89 200,166.89 201,494.79 181,351.59 277,978.89 336,583.59 411,419.89 844,392.29 1,302,188.79 6,544,519.38
189

Income Statement
Revenue
Sales 5,150,415.00 3,563,960.00 2,084,565.00 1,885,440.00 1,636,900.00 1,445,720.00 2,003,010.00 1,563,665.00 1,771,455.00 2,052,735.00 3,452,730.00 5,072,585.00 31,683,180.00
Cost of goods sold 2,866,910.00 1,983,820.00 1,160,330.00 1,049,550.00 911,210.00 804,740.00 1,114,940.00 870,370.00 986,050.00 1,142,630.00 1,921,920.00 2,823,550.00 17,636,020.00
Gross profit 2,283,505.00 1,580,140.00 924,235.00 835,890.00 725,690.00 640,980.00 888,070.00 693,295.00 785,405.00 910,105.00 1,530,810.00 2,249,035.00 14,047,160.00
Expense
Depreciation 55,084.30 55,084.30 55,084.30 55,084.30 55,084.30 55,084.30 55,084.30 55,084.30 55,084.30 55,084.30 55,084.30 55,084.30 661,011.60
Total expenses 604,681.30 315,518.30 317,228.30 308,930.30 406,110.30 329,584.30 589,729.30 309,247.30 309,083.30 308,327.30 412,438.30 317,314.30 4,528,192.60
Interest expense 58,010.00 58,010.00 58,010.00 58,010.00 58,010.00 58,010.00 58,010.00 58,010.00 58,010.00 58,010.00 58,010.00 58,010.00 696,120.00
Net Income 1,134,569.59 844,628.19 384,297.69 328,264.79 183,098.79 177,369.99 168,231.49 228,226.39 292,818.19 380,637.39 742,253.19 1,311,597.49 6,175,993.18
190
• If total sale of company decrease 10%, so our sale revenue will decrease as follow:

• If sale revenue decreases10%, it will affect net income of company as follow:

Year 2013 Net income is 6,583,702 Baht
191
Plate 450 450 202,500 423 190,350 340 153,000 267 120,150 230 103,500 165 74,250 199 89,550 256 115,200 305 137,250 312 140,400 384 172,800 446 200,700 1,699,650
Bowl 650 450 292,500 431 280,150 329 213,850 261 169,650 229 148,850 156 101,400 187 121,550 251 163,150 317 206,050 324 210,600 370 240,500 441 286,650 2,434,900
Spoon/Fork 125 468 58,500 428 53,500 335 41,875 272 34,000 238 29,750 163 20,375 196 24,500 262 32,750 308 38,500 315 39,375 386 48,250 436 54,500 475,875
Cup 360 469 168,840 439 158,040 327 117,720 263 94,680 227 81,720 153 55,080 185 66,600 253 91,080 311 111,960 326 117,360 390 140,400 427 153,720 1,357,200
Tea pot 1,040 475 494,000 425 442,000 338 351,520 274 284,960 236 245,440 164 170,560 194 201,760 264 274,560 305 317,200 317 329,680 387 402,480 449 466,960 3,981,120
Vase 4,680 463 2,166,840 440 2,059,200 325 1,521,000 265 1,240,200 225 1,053,000 155 725,400 183 856,440 267 1,249,560 314 1,469,520 328 1,535,040 394 1,843,920 444 2,077,920 17,798,040
Lamp 2,520 462 1,164,240 443 1,116,360 331 834,120 276 695,520 234 589,680 167 420,840 192 483,840 258 650,160 302 761,040 319 803,880 381 960,120 436 1,098,720 9,578,520
Spa set 415 450 186,750 436 180,940 323 134,045 268 111,220 223 92,545 158 65,570 181 75,115 269 111,635 312 129,480 322 133,630 398 165,170 451 187,165 1,573,265
Total 4,734,170 4,480,540 3,367,130 2,750,380 2,344,485 1,633,475 1,919,355 2,688,095 3,171,000 3,309,965 3,973,640 4,526,335 38,898,570
Plate 450 425 191,250 370 166,500 260 117,000 239 107,550 210 94,500 185 83,250 224 100,800 190 85,500 245 110,250 268 120,600 363 163,350 420 189,000 1,529,550
Bowl 650 425 276,250 370 240,500 260 169,000 239 155,350 210 136,500 190 123,500 229 148,850 192 124,800 245 159,250 264 171,600 365 237,250 420 273,000 2,215,850
Spoon/Fork 125 420 52,500 375 46,875 262 32,750 241 30,125 211 26,375 188 23,500 227 28,375 195 24,375 247 30,875 262 32,750 361 45,125 423 52,875 426,500
Cup 360 426 153,360 374 134,640 261 93,960 238 85,680 211 75,960 184 66,240 222 79,920 192 69,120 248 89,280 260 93,600 362 130,320 424 152,640 1,224,720
Tea pot 1,040 433 450,320 376 391,040 259 269,360 232 241,280 218 226,720 186 193,440 226 235,040 191 198,640 240 249,600 265 275,600 359 373,360 429 446,160 3,550,560
Vase 4,680 424 1,984,320 372 1,740,960 262 1,226,160 240 1,123,200 215 1,006,200 200 936,000 225 1,053,000 192 898,560 244 1,141,920 266 1,244,880 360 1,684,800 423 1,979,640 16,019,640
Lamp 2,520 423 1,065,960 375 945,000 265 667,800 236 594,720 219 551,880 195 491,400 229 577,080 192 483,840 243 612,360 264 665,280 360 907,200 421 1,060,920 8,623,440
Spa set 415 420 174,300 373 154,795 263 109,145 242 100,430 216 89,640 190 78,850 228 94,620 189 78,435 241 100,015 267 110,805 364 151,060 425 176,375 1,418,470
Total 4,348,260 3,820,310 2,685,175 2,438,335 2,207,775 1,996,180 2,317,685 1,963,270 2,493,550 2,715,115 3,692,465 4,330,610 35,008,730
192
Plate 450 350 157,500 288 129,600 247 111,150 210 94,500 190 85,500 183 82,350 247 111,150 198 89,100 235 105,750 260 117,000 285 128,250 385 173,250 1,385,100
Bowl 650 350 227,500 280 182,000 250 162,500 210 136,500 190 123,500 183 118,950 247 160,550 188 122,200 235 152,750 260 169,000 285 185,250 387 251,550 1,992,250
Spoon/Fork 125 342 42,750 282 35,250 245 30,625 213 26,625 196 24,500 185 23,125 250 31,250 190 23,750 231 28,875 254 31,750 288 36,000 395 49,375 383,875
Cup 360 347 124,920 285 102,600 243 87,480 215 77,400 195 70,200 188 67,680 246 88,560 195 70,200 230 82,800 258 92,880 280 100,800 392 141,120 1,106,640
Tea pot 1,040 340 353,600 281 292,240 241 250,640 216 224,640 197 204,880 184 191,360 250 260,000 187 194,480 231 240,240 260 270,400 282 293,280 388 403,520 3,179,280
Vase 4,680 344 1,609,920 284 1,329,120 244 1,141,920 214 1,001,520 199 931,320 182 851,760 255 1,193,400 186 870,480 235 1,099,800 260 1,216,800 284 1,329,120 396 1,853,280 14,428,440
Lamp 2,520 341 859,320 287 723,240 248 624,960 212 534,240 198 498,960 180 453,600 254 640,080 187 471,240 233 587,160 259 652,680 286 720,720 392 987,840 7,754,040
Spa set 415 345 143,175 286 118,690 248 102,920 213 88,395 194 80,510 180 74,700 244 101,260 192 79,680 239 99,185 256 106,240 287 119,105 396 164,340 1,278,200
Total 3,518,685 2,912,740 2,512,195 2,183,820 2,019,370 1,863,525 2,586,250 1,921,130 2,396,560 2,656,750 2,912,525 4,024,275 31,507,825
Plate 450 335 150,750 285 128,250 210 94,500 191 85,950 175 78,750 157 70,650 215 96,750 170 76,500 190 85,500 215 96,750 275 123,750 336 151,200 1,239,300
Bowl 650 335 217,750 285 185,250 210 136,500 191 124,150 175 113,750 157 102,050 210 136,500 177 115,050 190 123,500 215 139,750 275 178,750 336 218,400 1,791,400
Spoon/Fork 125 330 41,250 282 35,250 213 26,625 197 24,625 177 22,125 160 20,000 218 27,250 169 21,125 191 23,875 218 27,250 276 34,500 335 41,875 345,750
Cup 360 332 119,520 280 100,800 216 77,760 195 70,200 180 64,800 160 57,600 213 76,680 176 63,360 195 70,200 215 77,400 280 100,800 334 120,240 999,360
Tea pot 1,040 331 344,240 289 300,560 211 219,440 196 203,840 179 186,160 159 165,360 212 220,480 173 179,920 193 200,720 217 225,680 279 290,160 338 351,520 2,888,080
Vase 4,680 333 1,558,440 287 1,343,160 217 1,015,560 194 907,920 178 833,040 158 739,440 217 1,015,560 170 795,600 192 898,560 213 996,840 280 1,310,400 332 1,553,760 12,968,280
Lamp 2,520 334 841,680 291 733,320 212 534,240 198 498,960 172 433,440 155 390,600 210 529,200 175 441,000 194 488,880 215 541,800 281 708,120 331 834,120 6,975,360
Spa set 415 336 139,440 288 119,520 214 88,810 199 82,585 170 70,550 157 65,155 214 88,810 172 71,380 196 81,340 214 88,810 277 114,955 333 138,195 1,149,550
Total 3,413,070 2,946,110 2,193,435 1,998,230 1,802,615 1,610,855 2,191,230 1,763,935 1,972,575 2,194,280 2,861,435 3,409,310 28,357,080
193
Sales Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Plate 450 302 135,900 245 110,250 202 90,900 189 85,050 160 72,000 140 63,000 195 87,750 154 69,300 172 77,400 198 89,100 230 103,500 290 130,500 1,114,650
Bowl 650 300 195,000 245 159,250 200 130,000 188 122,200 165 107,250 140 91,000 195 126,750 150 97,500 172 111,800 200 130,000 230 149,500 290 188,500 1,608,750
Spoon/Fork 125 304 38,000 250 31,250 204 25,500 180 22,500 166 20,750 142 17,750 192 24,000 149 18,625 170 21,250 197 24,625 234 29,250 295 36,875 310,375
Cup 360 305 109,800 248 89,280 207 74,520 180 64,800 158 56,880 143 51,480 193 69,480 150 54,000 175 63,000 199 71,640 239 86,040 293 105,480 896,400
Tea pot 1,040 305 317,200 249 258,960 206 214,240 186 193,440 157 163,280 144 149,760 191 198,640 151 157,040 173 179,920 200 208,000 237 246,480 292 303,680 2,590,640
Vase 4,680 303 1,418,040 250 1,170,000 204 954,720 184 861,120 160 748,800 141 659,880 197 921,960 153 716,040 171 800,280 201 940,680 238 1,113,840 297 1,389,960 11,695,320
Lamp 2,520 302 761,040 247 622,440 203 511,560 183 461,160 160 403,200 140 352,800 196 493,920 154 388,080 176 443,520 201 506,520 232 584,640 296 745,920 6,274,800
Spa set 415 301 124,915 249 103,335 200 83,000 182 75,530 155 64,325 145 60,175 194 80,510 152 63,080 179 74,285 198 82,170 230 95,450 298 123,670 1,030,445
Total 3,099,895 2,544,765 2,084,440 1,885,800 1,636,485 1,445,845 2,003,010 1,563,665 1,771,455 2,052,735 2,408,700 3,024,585 25,521,380
194

Income Statement
Revenue
Sales 4,734,170 4,480,540 3,367,130 2,750,380 2,344,485 1,633,475 1,919,355 2,688,095 3,171,000 3,309,965 3,973,765 4,521,150 38,893,510
Gross profit 2,099,010 1,986,580 1,492,820 1,219,460 1,039,425 724,235 850,945 1,191,895 1,405,840 1,467,515 1,761,975 2,004,490 17,244,190
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 7,169,117 318,526 321,862 314,108 345,392 332,570 361,353 313,407 313,725 313,467 351,158 319,062 10,773,747
Net Income(Loss) - 6,777,806 1,050,971 703,004 517,079 369,156 157,499 226,047 498,275 647,814 691,167 870,905 1,063,133 17,243
195

Income Statement
Revenue
Sales 4,348,260 3,820,310 2,685,175 2,438,335 2,207,775 1,996,180 2,317,685 1,963,270 2,493,550 2,715,115 3,692,465 4,330,610 35,008,730
Gross profit 1,927,820 1,693,790 1,190,525 1,081,065 978,885 885,090 1,027,545 870,430 1,105,530 1,203,785 1,637,055 1,920,030 15,521,550
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 609,101 319,538 321,862 314,874 410,858 333,250 591,723 313,679 314,339 313,637 416,278 320,942 4,580,081
Income before interate and taxes 1,318,719 1,374,252 868,663 766,191 568,027 551,840 435,822 556,751 791,191 890,148 1,220,777 1,599,088 10,941,469
Income before income taxes 1,190,704 1,246,237 740,648 638,176 440,012 423,825 307,807 428,736 663,176 762,133 1,092,762 1,471,073 9,405,289
Net Income 833,493 872,366 518,454 446,723 308,008 296,677 215,465 300,115 464,223 533,493 764,933 1,029,751 6,583,702
196

Income Statement
Revenue
Sales 3,518,685 2,912,740 2,512,195 2,183,820 2,019,370 1,863,525 2,586,250 1,921,130 2,396,560 2,656,750 2,912,525 4,024,275 31,507,825
Gross profit 1,559,995 1,291,440 1,113,775 968,240 895,370 826,195 1,146,690 851,750 1,062,540 1,177,890 1,291,295 1,784,265 13,969,445
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 607,241 318,526 321,992 313,908 410,596 334,560 595,997 313,467 314,881 313,659 416,518 319,704 4,581,049
Income before interate and taxes 952,754 972,914 791,783 654,332 484,774 491,635 550,693 538,283 747,659 864,231 874,777 1,464,561 9,388,396
Income before income taxes 854,426 874,586 693,455 556,004 386,446 393,307 452,365 439,955 649,331 765,903 776,449 1,366,233 8,208,460
Net Income 598,098 612,210 485,418 389,203 270,512 275,315 316,655 307,968 454,532 536,132 543,514 956,363 5,745,922
197

Income Statement
Revenue
Sales 3,413,070 2,946,110 2,193,435 1,998,230 1,802,615 1,610,855 2,191,230 1,763,935 1,972,575 2,194,280 2,861,435 3,409,310 28,357,080
Cost of goods sold 1,899,860 1,639,900 1,220,910 1,112,260 1,003,410 896,670 1,219,690 981,920 1,097,990 1,221,440 1,592,750 1,897,800 15,784,600
Gross profit 1,513,210 1,306,210 972,525 885,970 799,205 714,185 971,540 782,015 874,585 972,840 1,268,685 1,511,510 12,572,480
Expense
Depreciation 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 661,012
Total expenses 603,571 313,700 317,412 309,532 405,562 328,110 591,541 309,377 309,141 309,467 416,290 317,110 4,530,817
Net Income 583,880 641,889 405,711 350,639 222,682 217,385 213,132 277,979 342,943 411,493 543,809 783,212 4,994,754
198

Income Statement
Revenue
Sales 3,099,895 2,544,765 2,084,440 1,885,800 1,636,485 1,445,845 2,003,010 1,563,665 1,771,455 2,052,735 2,408,700 3,024,585 25,521,380
Cost of goods sold 1,725,510 1,416,490 1,160,260 1,049,750 910,980 804,810 1,114,940 870,370 986,050 1,142,630 1,340,740 1,683,550 14,206,080
Gross profit 1,374,385 1,128,275 924,180 836,050 725,505 641,035 888,070 693,295 785,405 910,105 1,067,960 1,341,035 11,315,300
Expense
Depreciation 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 661,012
Total expenses 604,681 315,518 317,228 308,930 406,110 329,584 589,729 309,247 309,083 308,327 412,438 317,314 4,528,193
Income before income taxes 711,694 754,747 548,942 469,110 261,385 253,441 240,331 326,038 418,312 543,768 597,512 965,711 6,090,987
Net Income 498,186 528,323 384,259 328,377 182,969 177,408 168,231 228,226 292,818 380,637 418,258 675,997 4,263,691
199
• If total sale of company decrease 15%, so our sale revenue will decrease as follow:
• If sale revenue decreases 15%, it will affect net income of company as follow:

200
Plate 450 450 202,500 423 190,350 340 153,000 267 120,150 230 103,500 165 74,250 199 89,550 256 115,200 305 137,250 312 140,400 384 172,800 446 200,700 1,699,650
Bowl 650 450 292,500 431 280,150 329 213,850 261 169,650 229 148,850 156 101,400 187 121,550 251 163,150 317 206,050 324 210,600 370 240,500 441 286,650 2,434,900
Spoon/Fork 125 468 58,500 428 53,500 335 41,875 272 34,000 238 29,750 163 20,375 196 24,500 262 32,750 308 38,500 315 39,375 386 48,250 436 54,500 475,875
Cup 360 469 168,840 439 158,040 327 117,720 263 94,680 227 81,720 153 55,080 185 66,600 253 91,080 311 111,960 326 117,360 390 140,400 427 153,720 1,357,200
Tea pot 1,040 475 494,000 425 442,000 338 351,520 274 284,960 236 245,440 164 170,560 194 201,760 264 274,560 305 317,200 317 329,680 387 402,480 449 466,960 3,981,120
Vase 4,680 463 2,166,840 440 2,059,200 325 1,521,000 265 1,240,200 225 1,053,000 155 725,400 183 856,440 267 1,249,560 314 1,469,520 328 1,535,040 394 1,843,920 444 2,077,920 17,798,040
Lamp 2,520 462 1,164,240 443 1,116,360 331 834,120 276 695,520 234 589,680 167 420,840 192 483,840 258 650,160 302 761,040 319 803,880 381 960,120 436 1,098,720 9,578,520
Spa set 415 450 186,750 436 180,940 323 134,045 268 111,220 223 92,545 158 65,570 181 75,115 269 111,635 312 129,480 322 133,630 398 165,170 451 187,165 1,573,265
Total 4,734,170 4,480,540 3,367,130 2,750,380 2,344,485 1,633,475 1,919,355 2,688,095 3,171,000 3,309,965 3,973,640 4,526,335 38,898,570
Plate 450 405 182,250 350 157,500 240 108,000 229 103,050 210 94,500 186 83,700 204 91,800 170 76,500 225 101,250 248 111,600 343 154,350 400 180,000 1,444,500
Bowl 650 405 263,250 350 227,500 240 156,000 229 148,850 210 136,500 190 123,500 209 135,850 172 111,800 225 146,250 244 158,600 345 224,250 400 260,000 2,092,350
Spoon/Fork 125 400 50,000 356 44,500 242 30,250 230 28,750 213 26,625 187 23,375 207 25,875 175 21,875 227 28,375 242 30,250 341 42,625 403 50,375 402,875
Cup 360 406 146,160 354 127,440 241 86,760 228 82,080 212 76,320 182 65,520 202 72,720 172 61,920 228 82,080 240 86,400 342 123,120 404 145,440 1,155,960
Tea pot 1,040 412 428,480 351 365,040 239 248,560 230 239,200 219 227,760 186 193,440 206 214,240 171 177,840 220 228,800 245 254,800 339 352,560 409 425,360 3,356,080
Vase 4,680 404 1,890,720 352 1,647,360 242 1,132,560 231 1,081,080 215 1,006,200 200 936,000 205 959,400 175 819,000 224 1,048,320 246 1,151,280 340 1,591,200 403 1,886,040 15,149,160
Lamp 2,520 401 1,010,520 355 894,600 245 617,400 221 556,920 219 551,880 195 491,400 208 524,160 174 438,480 223 561,960 242 609,840 340 856,800 401 1,010,520 8,124,480
Spa set 415 400 166,000 353 146,495 243 100,845 225 93,375 216 89,640 190 78,850 203 84,245 178 73,870 221 91,715 247 102,505 344 142,760 405 168,075 1,338,375
Total 4,137,380 3,610,435 2,480,375 2,333,305 2,209,425 1,995,785 2,108,290 1,781,285 2,288,750 2,505,275 3,487,665 4,125,810 33,063,780
201
Plate 450 300 135,000 268 120,600 237 106,650 200 90,000 180 81,000 165 74,250 212 95,400 183 82,350 215 96,750 230 103,500 255 114,750 319 143,550 1,243,800
Bowl 650 300 195,000 260 169,000 240 156,000 200 130,000 180 117,000 165 107,250 212 137,800 178 115,700 215 139,750 230 149,500 255 165,750 312 202,800 1,785,550
Spoon/Fork 125 299 37,375 262 32,750 235 29,375 203 25,375 186 23,250 163 20,375 208 26,000 180 22,500 211 26,375 224 28,000 257 32,125 314 39,250 342,750
Cup 360 297 106,920 265 95,400 233 83,880 205 73,800 185 66,600 168 60,480 211 75,960 185 66,600 210 75,600 228 82,080 250 90,000 311 111,960 989,280
Tea pot 1,040 290 301,600 261 271,440 231 240,240 206 214,240 187 194,480 164 170,560 205 213,200 177 184,080 212 220,480 230 239,200 252 262,080 317 329,680 2,841,280
Vase 4,680 296 1,385,280 259 1,212,120 234 1,095,120 204 954,720 189 884,520 162 758,160 200 936,000 176 823,680 214 1,001,520 230 1,076,400 254 1,188,720 316 1,478,880 12,795,120
Lamp 2,520 298 750,960 267 672,840 238 599,760 202 509,040 188 473,760 160 403,200 216 544,320 179 451,080 213 536,760 229 577,080 256 645,120 316 796,320 6,960,240
Spa set 415 295 122,425 266 110,390 239 99,185 207 85,905 184 76,360 167 69,305 210 87,150 180 74,700 216 89,640 226 93,790 257 106,655 315 130,725 1,146,230
Total 3,034,560 2,684,540 2,410,210 2,083,080 1,916,970 1,663,580 2,115,830 1,820,690 2,186,875 2,349,550 2,605,200 3,233,165 28,104,250
Plate 450 238 107,100 215 96,750 200 90,000 181 81,450 165 74,250 147 66,150 205 92,250 150 67,500 170 76,500 200 90,000 213 95,850 241 108,450 1,046,250
Bowl 650 238 154,700 215 139,750 200 130,000 181 117,650 165 107,250 147 95,550 200 130,000 157 102,050 170 110,500 200 130,000 213 138,450 241 156,650 1,512,550
Spoon/Fork 125 236 29,500 212 26,500 203 25,375 187 23,375 167 20,875 150 18,750 208 26,000 149 18,625 171 21,375 198 24,750 216 27,000 247 30,875 293,000
Cup 360 235 84,600 210 75,600 206 74,160 185 66,600 170 61,200 150 54,000 203 73,080 156 56,160 175 63,000 199 71,640 220 79,200 235 84,600 843,840
Tea pot 1,040 231 240,240 218 226,720 202 210,080 186 193,440 169 175,760 149 154,960 202 210,080 153 159,120 173 179,920 197 204,880 219 227,760 238 247,520 2,430,480
Vase 4,680 233 1,090,440 215 1,006,200 207 968,760 182 851,760 168 786,240 148 692,640 207 968,760 150 702,000 175 819,000 198 926,640 217 1,015,560 240 1,123,200 10,951,200
Lamp 2,520 234 589,680 212 534,240 202 509,040 183 461,160 162 408,240 145 365,400 200 504,000 155 390,600 174 438,480 193 486,360 221 556,920 238 599,760 5,843,880
Spa set 415 236 97,940 217 90,055 204 84,660 189 78,435 160 66,400 147 61,005 204 84,660 152 63,080 176 73,040 194 80,510 216 89,640 236 97,940 967,365
Total 2,394,200 2,195,815 2,092,075 1,873,870 1,700,215 1,508,455 2,088,830 1,559,135 1,781,815 2,014,780 2,230,380 2,448,995 23,888,565
202
Plate 450 242 108,900 205 92,250 162 72,900 148 66,600 120 54,000 100 45,000 145 65,250 114 51,300 132 59,400 168 75,600 201 90,450 240 108,000 889,650
Bowl 650 240 156,000 205 133,250 160 104,000 148 96,200 125 81,250 100 65,000 145 94,250 110 71,500 132 85,800 170 110,500 200 130,000 240 156,000 1,283,750
Spoon/Fork 125 244 30,500 199 24,875 164 20,500 140 17,500 126 15,750 102 12,750 142 17,750 109 13,625 130 16,250 167 20,875 202 25,250 245 30,625 246,250
Cup 360 245 88,200 198 71,280 167 60,120 140 50,400 128 46,080 103 37,080 143 51,480 110 39,600 135 48,600 164 59,040 209 75,240 243 87,480 714,600
Tea pot 1,040 245 254,800 200 208,000 166 172,640 146 151,840 127 132,080 104 108,160 141 146,640 111 115,440 133 138,320 169 175,760 206 214,240 242 251,680 2,069,600
Vase 4,680 243 1,137,240 200 936,000 165 772,200 144 673,920 120 561,600 101 472,680 147 687,960 113 528,840 131 613,080 165 772,200 208 973,440 247 1,155,960 9,285,120
Lamp 2,520 241 607,320 197 496,440 162 408,240 145 365,400 120 302,400 103 259,560 146 367,920 114 287,280 136 342,720 170 428,400 202 509,040 246 619,920 4,994,640
Spa set 415 246 102,090 196 81,340 163 67,645 142 58,930 119 49,385 106 43,990 144 59,760 112 46,480 137 56,855 168 69,720 199 82,585 248 102,920 821,700
Total 2,485,050 2,043,435 1,678,245 1,480,790 1,242,545 1,044,220 1,491,010 1,154,065 1,361,025 1,712,095 2,100,245 2,512,585 20,305,310
203

Income Statement
Revenue
Sales 4,734,170 4,480,540 3,367,130 2,750,380 2,344,485 1,633,475 1,919,355 2,688,095 3,171,000 3,309,965 3,973,765 4,521,150 38,893,510
Gross profit 2,099,010 1,986,580 1,492,820 1,219,460 1,039,425 724,235 850,945 1,191,895 1,405,840 1,467,515 1,761,975 2,004,490 17,244,190
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 7,169,117 318,526 321,862 314,108 345,392 332,570 361,353 313,407 313,725 313,467 351,158 319,062 10,773,747
Net Income(Loss) - 6,777,806 1,050,971 703,004 517,079 369,156 157,499 226,047 498,275 647,814 691,167 870,905 1,063,133 17,243
204

Income Statement
Revenue
Sales 4,137,380 3,610,435 2,480,375 2,333,305 2,209,425 1,995,785 2,108,290 1,781,285 2,288,750 2,505,275 3,487,665 4,125,810 33,063,780
Cost of goods sold 2,303,060 2,009,690 1,380,650 1,298,830 1,229,810 1,110,870 1,173,590 991,510 1,274,020 1,394,530 1,941,410 2,296,580 18,404,550
Gross profit 1,834,320 1,600,745 1,099,725 1,034,475 979,615 884,915 934,700 789,775 1,014,730 1,110,745 1,546,255 1,829,230 14,659,230
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 609,101 319,538 321,862 314,874 410,858 333,250 591,723 313,679 314,339 313,637 416,278 320,942 4,580,081
Income before interate and taxes 1,225,219 1,281,207 777,863 719,601 568,757 551,665 342,977 476,096 700,391 797,108 1,129,977 1,508,288 10,079,149
Income before income taxes 1,097,204 1,153,192 649,848 591,586 440,742 423,650 214,962 348,081 572,376 669,093 1,001,962 1,380,273 8,542,969
Net Income 768,043 807,234 454,894 414,110 308,519 296,555 150,473 243,657 400,663 468,365 701,373 966,191 5,980,078
205

Income Statement
Revenue
Sales 3,034,560 2,684,540 2,410,210 2,083,080 1,916,970 1,663,580 2,115,830 1,820,690 2,186,875 2,349,550 2,605,200 3,233,165 28,104,250
Gross profit 1,345,380 1,190,240 1,068,560 923,580 849,970 737,540 938,030 807,220 969,565 1,041,690 1,155,040 1,433,485 12,460,300
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 607,241 318,526 321,992 313,908 410,596 334,560 595,997 313,467 314,881 313,659 416,518 319,704 4,581,049
Net Income 447,868 541,370 453,768 357,941 238,732 213,256 170,593 276,797 389,449 440,792 448,136 710,817 4,689,520
206

Income Statement
Revenue
Sales 2,394,200 2,195,815 2,092,075 1,873,870 1,700,215 1,508,455 2,088,830 1,559,135 1,781,815 2,014,780 2,230,380 2,448,995 23,888,565
Cost of goods sold 1,332,740 1,222,290 1,164,490 1,043,060 946,410 839,670 1,162,690 867,920 991,790 1,121,540 1,241,480 1,363,230 13,297,310
Gross profit 1,061,460 973,525 927,585 830,810 753,805 668,785 926,140 691,215 790,025 893,240 988,900 1,085,765 10,591,255
Expense
Depreciation 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 661,012
Total expenses 603,571 313,700 317,412 309,532 405,562 328,110 591,541 309,377 309,141 309,467 416,290 317,110 4,530,817
Income before interate and taxes 457,889 659,825 610,173 521,278 348,243 340,675 334,599 381,838 480,884 583,773 572,610 768,655 6,060,438
Net Income 267,655 409,010 374,253 312,027 190,902 185,605 181,352 214,419 283,751 355,773 347,959 485,191 3,607,897
207

Income Statement
Revenue
Sales 2,485,050 2,043,435 1,678,245 1,480,790 1,242,545 1,044,220 1,491,010 1,154,065 1,361,025 1,712,095 2,100,245 2,512,585 20,305,310
Cost of goods sold 1,383,260 1,137,510 934,150 824,300 691,700 581,240 829,940 642,370 757,590 953,050 1,169,040 1,398,550 11,302,700
Gross profit 1,101,790 905,925 744,095 656,490 550,845 462,980 661,070 511,695 603,435 759,045 931,205 1,114,035 9,002,610
Expense
Depreciation 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 661,012
Total expenses 604,681 315,518 317,228 308,930 406,110 329,584 589,729 309,247 309,083 308,327 412,438 317,314 4,528,193
Income before interate and taxes 497,109 590,407 426,867 347,560 144,735 133,396 71,341 202,448 294,352 450,718 518,767 796,721 4,474,417
Net Income 307,369 372,678 258,200 202,685 60,707 52,770 9,331 101,106 165,439 274,895 322,530 517,097 2,644,808
208
2 Increasing interest rate
Interest rate increase 5% So, interest rate equal 25%

209
Table 8.31 Income statement of interest rate increase 5% Year 2012

Income Statement
Revenue
Sales 4,734,170 4,480,540 3,367,130 2,750,380 2,344,485 1,633,475 1,919,355 2,688,095 3,171,000 3,309,965 3,973,765 4,521,150 38,893,510
Gross profit 2,099,010 1,986,580 1,492,820 1,219,460 1,039,425 724,235 850,945 1,191,895 1,405,840 1,467,515 1,761,975 2,004,490 17,244,190
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 7,169,117 318,526 321,862 314,108 345,392 332,570 361,353 313,407 313,725 313,467 351,158 319,062 10,773,747
Income before income taxes - 5,278,440 1,459,721 962,625 697,019 485,700 183,332 281,259 670,155 883,782 945,715 1,202,484 1,477,095 8,970,439
Net Income(Loss) - 6,819,472 1,021,805 673,837 487,913 339,990 128,332 196,881 469,108 618,647 662,000 841,739 1,033,966 - 345,252
210

Income Statement
Revenue
Sales 6,072,535 5,560,605 3,348,200 2,757,675 2,515,515 1,982,140 1,795,340 2,558,850 2,973,455 3,617,875 5,631,385 5,959,780 44,773,355
Gross profit 2,692,405 2,465,395 1,484,270 1,222,765 1,115,305 878,850 796,010 1,134,490 1,318,365 1,603,805 2,496,625 2,642,410 19,850,695
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 609,101 319,538 321,862 314,874 410,858 333,250 591,723 313,679 314,339 313,637 416,278 320,942 4,580,081
Net Income 1,352,291 1,396,078 707,664 529,502 387,091 275,898 36,979 468,546 596,796 797,096 1,350,221 1,519,006 9,417,166
211

Income Statement
Revenue
Sales 7,234,360 6,779,915 3,692,265 2,942,425 2,942,090 2,371,265 2,155,730 3,091,210 2,938,240 3,515,450 6,543,145 7,239,300 51,445,395
Gross profit 3,207,350 3,006,125 1,637,205 1,304,255 1,304,310 1,050,955 955,410 1,370,580 1,302,360 1,558,430 2,900,475 3,209,210 22,806,665
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 607,241 318,526 321,992 313,908 410,596 334,560 595,997 313,467 314,881 313,659 416,518 319,704 4,581,049
Net Income 1,742,997 1,804,240 843,570 616,164 548,521 424,397 174,510 662,900 614,156 794,261 1,661,691 1,945,575 11,832,982
212

Income Statement
Revenue
Sales 8,118,870 7,699,740 5,501,185 4,072,650 2,993,005 2,055,930 1,920,725 2,839,470 3,815,095 4,928,990 7,458,555 7,755,660 59,159,875
Gross profit 3,599,590 3,413,670 2,439,325 1,805,710 1,326,995 911,650 851,605 1,258,840 1,691,345 2,185,600 3,306,745 3,438,260 26,229,335
Expense
Depreciation 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 661,012
Total expenses 603,571 313,700 317,412 309,532 405,562 328,110 591,541 309,377 309,141 309,467 416,290 317,110 4,530,817
Net Income 2,041,176 2,113,942 1,429,302 991,287 588,966 352,441 126,007 608,587 911,505 1,257,256 1,967,281 2,128,768 14,516,518
213

Income Statement
Revenue
Sales 9,999,090 9,477,535 5,128,395 4,139,630 3,371,960 2,101,045 2,151,405 3,678,015 4,571,505 5,678,590 8,287,580 9,449,070 68,033,820
Gross profit 4,433,180 4,202,285 2,273,235 1,835,020 1,495,020 931,465 954,075 1,630,325 2,026,795 2,517,910 3,674,400 4,189,620 30,163,330
Expense
Depreciation 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 661,012
Total expenses 604,681 315,518 317,228 308,930 406,110 329,584 589,729 309,247 309,083 308,327 412,438 317,314 4,528,193
Net Income 2,639,210 2,679,997 1,328,465 1,027,523 721,497 380,577 214,303 884,015 1,161,659 1,505,969 2,242,634 2,669,875 17,455,725
214

Income Statement
Revenue
Sales 4,734,170 4,480,540 3,367,130 2,750,380 2,344,485 1,633,475 1,919,355 2,688,095 3,171,000 3,309,965 3,973,765 4,521,150 38,893,510
Gross profit 2,099,010 1,986,580 1,492,820 1,219,460 1,039,425 724,235 850,945 1,191,895 1,405,840 1,467,515 1,761,975 2,004,490 17,244,190
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 7,169,117 318,526 321,862 314,108 345,392 332,570 361,353 313,407 313,725 313,467 351,158 319,062 10,773,747
Net Income(Loss) - 6,861,139 992,638 644,671 458,746 310,823 99,165 167,714 439,942 589,480 632,834 812,572 1,004,800 - 707,754
215

Income Statement
Revenue
Sales 6,072,535 5,560,605 3,348,200 2,757,675 2,515,515 1,982,140 1,795,340 2,558,850 2,973,455 3,617,875 5,631,385 5,959,780 44,773,355
Gross profit 2,692,405 2,465,395 1,484,270 1,222,765 1,115,305 878,850 796,010 1,134,490 1,318,365 1,603,805 2,496,625 2,642,410 19,850,695
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 609,101 319,538 321,862 314,874 410,858 333,250 591,723 313,679 314,339 313,637 416,278 320,942 4,580,081
Income before income taxes 1,912,389 1,974,942 991,493 736,976 533,532 374,685 33,372 649,896 833,111 1,119,253 1,909,432 2,150,553 13,219,634
Net Income 1,338,672 1,382,459 694,045 515,883 373,472 262,279 23,360 454,927 583,178 783,477 1,336,602 1,505,387 9,253,744
216

Income Statement
Revenue
Sales 7,234,360 6,779,915 3,692,265 2,942,425 2,942,090 2,371,265 2,155,730 3,091,210 2,938,240 3,515,450 6,543,145 7,239,300 51,445,395
Gross profit 3,207,350 3,006,125 1,637,205 1,304,255 1,304,310 1,050,955 955,410 1,370,580 1,302,360 1,558,430 2,900,475 3,209,210 22,806,665
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 607,241 318,526 321,992 313,908 410,596 334,560 595,997 313,467 314,881 313,659 416,518 319,704 4,581,049
Net Income 1,738,283 1,799,526 838,856 611,450 543,807 419,684 169,796 658,186 609,442 789,547 1,656,977 1,940,861 11,776,416
217

Income Statement
Revenue
Sales 8,118,870 7,699,740 5,501,185 4,072,650 2,993,005 2,055,930 1,920,725 2,839,470 3,815,095 4,928,990 7,458,555 7,755,660 59,159,875
Gross profit 3,599,590 3,413,670 2,439,325 1,805,710 1,326,995 911,650 851,605 1,258,840 1,691,345 2,185,600 3,306,745 3,438,260 26,229,335
Expense
Depreciation 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 661,012
Total expenses 603,571 313,700 317,412 309,532 405,562 328,110 591,541 309,377 309,141 309,467 416,290 317,110 4,530,817
Net Income 2,041,294 2,114,060 1,429,420 991,406 589,084 352,559 126,126 608,705 911,624 1,257,374 1,967,399 2,128,886 14,517,937
218

Income Statement
Revenue
Sales 9,999,090 9,477,535 5,128,395 4,139,630 3,371,960 2,101,045 2,151,405 3,678,015 4,571,505 5,678,590 8,287,580 9,449,070 68,033,820
Gross profit 4,433,180 4,202,285 2,273,235 1,835,020 1,495,020 931,465 954,075 1,630,325 2,026,795 2,517,910 3,674,400 4,189,620 30,163,330
Expense
Depreciation 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 661,012
Total expenses 604,681 315,518 317,228 308,930 406,110 329,584 589,729 309,247 309,083 308,327 412,438 317,314 4,528,193
Net Income 2,641,720 2,682,508 1,330,976 1,030,034 724,008 383,087 216,813 886,525 1,164,169 1,508,479 2,245,144 2,672,385 17,485,847
219

Income Statement
Revenue
Sales 4,734,170 4,480,540 3,367,130 2,750,380 2,344,485 1,633,475 1,919,355 2,688,095 3,171,000 3,309,965 3,973,765 4,521,150 38,893,510
Gross profit 2,099,010 1,986,580 1,492,820 1,219,460 1,039,425 724,235 850,945 1,191,895 1,405,840 1,467,515 1,761,975 2,004,490 17,244,190
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 7,169,117 318,526 321,862 314,108 345,392 332,570 361,353 313,407 313,725 313,467 351,158 319,062 10,773,747
Net Income(Loss) - 6,902,806 963,471 615,504 429,579 281,656 69,999 138,547 410,775 560,314 603,667 783,405 975,633 - 1,070,257
220

Income Statement
Revenue
Sales 6,072,535 5,560,605 3,348,200 2,757,675 2,515,515 1,982,140 1,795,340 2,558,850 2,973,455 3,617,875 5,631,385 5,959,780 44,773,355
Gross profit 2,692,405 2,465,395 1,484,270 1,222,765 1,115,305 878,850 796,010 1,134,490 1,318,365 1,603,805 2,496,625 2,642,410 19,850,695
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 609,101 319,538 321,862 314,874 410,858 333,250 591,723 313,679 314,339 313,637 416,278 320,942 4,580,081
Income before income taxes 1,897,068 1,959,621 976,172 721,655 518,211 359,364 18,051 634,575 817,790 1,103,932 1,894,111 2,135,232 13,035,782
Net Income 1,327,948 1,371,735 683,320 505,158 362,748 251,555 12,636 444,202 572,453 772,752 1,325,878 1,494,662 9,125,047
221

Income Statement
Revenue
Sales 7,234,360 6,779,915 3,692,265 2,942,425 2,942,090 2,371,265 2,155,730 3,091,210 2,938,240 3,515,450 6,543,145 7,239,300 51,445,395
Gross profit 3,207,350 3,006,125 1,637,205 1,304,255 1,304,310 1,050,955 955,410 1,370,580 1,302,360 1,558,430 2,900,475 3,209,210 22,806,665
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 607,241 318,526 321,992 313,908 410,596 334,560 595,997 313,467 314,881 313,659 416,518 319,704 4,581,049
Net Income 1,736,835 1,798,078 837,408 610,002 542,359 418,235 168,348 656,738 607,994 788,098 1,655,529 1,939,413 11,759,037
222

Income Statement
Revenue
Sales 8,118,870 7,699,740 5,501,185 4,072,650 2,993,005 2,055,930 1,920,725 2,839,470 3,815,095 4,928,990 7,458,555 7,755,660 59,159,875
Gross profit 3,599,590 3,413,670 2,439,325 1,805,710 1,326,995 911,650 851,605 1,258,840 1,691,345 2,185,600 3,306,745 3,438,260 26,229,335
Expense
Depreciation 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 661,012
Total expenses 603,571 313,700 317,412 309,532 405,562 328,110 591,541 309,377 309,141 309,467 416,290 317,110 4,530,817
Net Income 2,044,061 2,116,827 1,432,187 994,173 591,851 355,326 128,893 611,472 914,391 1,260,141 1,970,167 2,131,653 14,551,142
223

Income Statement
Revenue
Sales 9,999,090 9,477,535 5,128,395 4,139,630 3,371,960 2,101,045 2,151,405 3,678,015 4,571,505 5,678,590 8,287,580 9,449,070 68,033,820
Gross profit 4,433,180 4,202,285 2,273,235 1,835,020 1,495,020 931,465 954,075 1,630,325 2,026,795 2,517,910 3,674,400 4,189,620 30,163,330
Expense
Depreciation 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 661,012
Total expenses 604,681 315,518 317,228 308,930 406,110 329,584 589,729 309,247 309,083 308,327 412,438 317,314 4,528,193
Net Income 2,646,012 2,686,799 1,335,267 1,034,325 728,299 387,379 221,105 890,817 1,168,461 1,512,770 2,249,436 2,676,677 17,537,347
224
3 Increasing cost/ expense
• If cost/ expense increase 5%, net income will be affected as follow:

Year 2012 Net income is -98,603 Baht
225
Table 8.46 Income statement of cost increase 5% Year 2012

Income Statement
Revenue
Sales 4,734,170 4,480,540 3,367,130 2,750,380 2,344,485 1,633,475 1,919,355 2,688,095 3,171,000 3,309,965 3,973,765 4,521,150 38,893,510
Gross profit 2,099,010 1,986,580 1,492,820 1,219,460 1,039,425 724,235 850,945 1,191,895 1,405,840 1,467,515 1,761,975 2,004,490 17,244,190
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 7,184,871 331,300 334,802 326,661 357,924 346,046 376,354 326,011 326,370 326,099 364,084 331,968 10,932,490
Net Income(Loss) - 6,793,560 1,042,029 693,945 508,293 360,384 148,066 215,547 489,452 638,962 682,324 861,857 1,054,098 - 98,603
226

Income Statement
Revenue
Sales 6,072,535 5,560,605 3,348,200 2,757,675 2,515,515 1,982,140 1,795,340 2,558,850 2,973,455 3,617,875 5,631,385 5,959,780 44,773,355
Gross profit 2,692,405 2,465,395 1,484,270 1,222,765 1,115,305 878,850 796,010 1,134,490 1,318,365 1,603,805 2,496,625 2,642,410 19,850,695
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 624,879 332,362 334,802 327,465 423,413 346,760 606,743 326,296 327,015 326,277 429,210 333,942 4,739,165
Income before interate and taxes 2,067,526 2,133,033 1,149,468 895,300 691,892 532,090 189,267 808,194 991,350 1,277,528 2,067,415 2,308,468 15,111,530
Net Income 1,357,658 1,403,512 715,017 537,099 394,714 282,853 42,877 476,125 604,335 804,659 1,357,580 1,526,317 9,502,745
227

Income Statement
Revenue
Sales 7,234,360 6,779,915 3,692,265 2,942,425 2,942,090 2,371,265 2,155,730 3,091,210 2,938,240 3,515,450 6,543,145 7,239,300 51,445,395
Gross profit 3,207,350 3,006,125 1,637,205 1,304,255 1,304,310 1,050,955 955,410 1,370,580 1,302,360 1,558,430 2,900,475 3,209,210 22,806,665
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 622,926 331,300 334,939 326,451 423,138 348,135 611,230 326,074 327,584 326,301 429,462 332,643 4,740,182
Net Income 1,740,267 1,803,548 842,757 615,633 547,991 423,144 172,096 662,325 613,514 793,661 1,660,879 1,944,768 11,820,583
228

Income Statement
Revenue
Sales 8,118,870 7,699,740 5,501,185 4,072,650 2,993,005 2,055,930 1,920,725 2,839,470 3,815,095 4,928,990 7,458,555 7,755,660 59,159,875
Gross profit 3,599,590 3,413,670 2,439,325 1,805,710 1,326,995 911,650 851,605 1,258,840 1,691,345 2,185,600 3,306,745 3,438,260 26,229,335
Expense
Depreciation 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 661,012
Total expenses 619,321 326,481 330,379 322,105 418,101 341,612 606,800 322,028 321,805 322,148 429,472 330,168 4,690,419
Net Income 2,033,321 2,108,165 1,423,395 985,656 583,358 346,159 118,496 602,901 905,810 1,251,549 1,961,224 2,122,797 14,442,831
229

Income Statement
Revenue
Sales 9,999,090 9,477,535 5,128,395 4,139,630 3,371,960 2,101,045 2,151,405 3,678,015 4,571,505 5,678,590 8,287,580 9,449,070 68,033,820
Gross profit 4,433,180 4,202,285 2,273,235 1,835,020 1,495,020 931,465 954,075 1,630,325 2,026,795 2,517,910 3,674,400 4,189,620 30,163,330
Expense
Depreciation 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 661,012
Total expenses 620,487 328,390 330,186 321,473 418,677 343,159 604,898 321,892 321,745 320,951 425,427 330,382 4,687,664
Net Income 2,628,278 2,671,120 1,319,528 1,018,876 712,833 371,207 203,817 875,296 1,152,928 1,497,264 2,233,674 2,660,860 17,345,682
230
• If cost/ expense increase 10%, net income will be affected as follow:
231

Income Statement
Revenue
Sales 4,734,170 4,480,540 3,367,130 2,750,380 2,344,485 1,633,475 1,919,355 2,688,095 3,171,000 3,309,965 3,973,765 4,521,150 38,893,510
Gross profit 2,099,010 1,986,580 1,492,820 1,219,460 1,039,425 724,235 850,945 1,191,895 1,405,840 1,467,515 1,761,975 2,004,490 17,244,190
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 7,200,846 344,295 347,965 339,213 370,456 359,522 391,183 338,442 338,792 338,508 377,021 344,885 11,091,129
Net Income(Loss) - 6,809,536 1,032,932 684,732 499,506 351,612 138,632 205,167 480,750 630,267 673,638 852,801 1,045,057 - 214,443
232

Income Statement
Revenue
Sales 6,072,535 5,560,605 3,348,200 2,757,675 2,515,515 1,982,140 1,795,340 2,558,850 2,973,455 3,617,875 5,631,385 5,959,780 44,773,355
Gross profit 2,692,405 2,465,395 1,484,270 1,222,765 1,115,305 878,850 796,010 1,134,490 1,318,365 1,603,805 2,496,625 2,642,410 19,850,695
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 640,879 345,409 347,965 340,056 435,968 360,270 621,590 338,742 339,468 338,695 442,153 346,953 4,898,146
Net Income 1,346,458 1,394,380 705,803 528,286 385,925 273,396 32,484 467,413 595,618 795,966 1,348,520 1,517,209 9,391,458
233

Income Statement
Revenue
Sales 7,234,360 6,779,915 3,692,265 2,942,425 2,942,090 2,371,265 2,155,730 3,091,210 2,938,240 3,515,450 6,543,145 7,239,300 51,445,395
Gross profit 3,207,350 3,006,125 1,637,205 1,304,255 1,304,310 1,050,955 955,410 1,370,580 1,302,360 1,558,430 2,900,475 3,209,210 22,806,665
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 638,736 344,295 348,108 338,993 435,680 361,711 626,291 338,508 340,064 338,720 442,417 345,591 4,899,114
Net Income 1,729,200 1,794,451 833,538 606,853 539,211 413,641 161,553 653,621 604,778 784,968 1,651,811 1,935,704 11,709,331
234

Income Statement
Revenue
Sales 8,118,870 7,699,740 5,501,185 4,072,650 2,993,005 2,055,930 1,920,725 2,839,470 3,815,095 4,928,990 7,458,555 7,755,660 59,159,875
Gross profit 3,599,590 3,413,670 2,439,325 1,805,710 1,326,995 911,650 851,605 1,258,840 1,691,345 2,185,600 3,306,745 3,438,260 26,229,335
Expense
Depreciation 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 661,012
Total expenses 635,293 339,484 343,567 334,677 430,640 355,113 621,887 334,507 334,247 334,606 442,663 343,235 4,849,919
Net Income 2,022,140 2,099,063 1,414,163 976,856 574,581 336,708 107,935 594,166 897,101 1,242,829 1,951,990 2,113,650 14,331,182
235

Income Statement
Revenue
Sales 9,999,090 9,477,535 5,128,395 4,139,630 3,371,960 2,101,045 2,151,405 3,678,015 4,571,505 5,678,590 8,287,580 9,449,070 68,033,820
Gross profit 4,433,180 4,202,285 2,273,235 1,835,020 1,495,020 931,465 954,075 1,630,325 2,026,795 2,517,910 3,674,400 4,189,620 30,163,330
Expense
Depreciation 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 661,012
Total expenses 636,514 341,484 343,365 334,015 431,243 356,734 619,894 334,364 334,183 333,352 438,426 343,459 4,847,032
Net Income 2,617,059 2,661,954 1,310,302 1,010,097 704,037 361,704 193,320 866,566 1,144,221 1,488,584 2,224,575 2,651,705 17,234,124
236
• If cost/ expense increase15%, net income will be affected as follow:
237

Income Statement
Revenue
Sales 4,734,170 4,480,540 3,367,130 2,750,380 2,344,485 1,633,475 1,919,355 2,688,095 3,171,000 3,309,965 3,973,765 4,521,150 38,893,510
Gross profit 2,099,010 1,986,580 1,492,820 1,219,460 1,039,425 724,235 850,945 1,191,895 1,405,840 1,467,515 1,761,975 2,004,490 17,244,190
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 7,216,378 340,477 344,313 335,396 366,618 356,627 389,728 334,590 334,956 334,659 373,249 341,093 11,068,083
Net Income(Loss) - 6,825,067 1,035,605 687,288 502,178 354,298 140,658 206,185 483,447 632,952 676,332 855,442 1,047,711 - 202,970
238

Income Statement
Revenue
Sales 6,072,535 5,560,605 3,348,200 2,757,675 2,515,515 1,982,140 1,795,340 2,558,850 2,973,455 3,617,875 5,631,385 5,959,780 44,773,355
Gross profit 2,692,405 2,465,395 1,484,270 1,222,765 1,115,305 878,850 796,010 1,134,490 1,318,365 1,603,805 2,496,625 2,642,410 19,850,695
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 656,435 341,641 344,313 336,277 432,154 357,409 620,153 334,903 335,662 334,854 438,387 343,255 4,875,442
Net Income 1,335,569 1,397,018 708,359 530,931 388,596 275,398 33,489 470,101 598,282 798,655 1,351,156 1,519,798 9,407,351
239

Income Statement
Revenue
Sales 7,234,360 6,779,915 3,692,265 2,942,425 2,942,090 2,371,265 2,155,730 3,091,210 2,938,240 3,515,450 6,543,145 7,239,300 51,445,395
Gross profit 3,207,350 3,006,125 1,637,205 1,304,255 1,304,310 1,050,955 955,410 1,370,580 1,302,360 1,558,430 2,900,475 3,209,210 22,806,665
Expense
Depreciation 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 60,054 720,648
Total expenses 654,296 340,477 344,463 335,166 431,852 358,916 625,068 334,659 336,285 334,880 438,663 341,831 4,876,555
Net Income 1,718,308 1,797,124 836,090 609,533 541,891 415,598 162,410 656,315 607,423 787,656 1,654,439 1,938,335 11,725,122
240

Income Statement
Revenue
Sales 8,118,870 7,699,740 5,501,185 4,072,650 2,993,005 2,055,930 1,920,725 2,839,470 3,815,095 4,928,990 7,458,555 7,755,660 59,159,875
Gross profit 3,599,590 3,413,670 2,439,325 1,805,710 1,326,995 911,650 851,605 1,258,840 1,691,345 2,185,600 3,306,745 3,438,260 26,229,335
Expense
Depreciation 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 661,012
Total expenses 650,821 335,673 339,941 330,879 426,809 352,244 620,690 330,701 330,430 330,805 439,146 339,594 4,827,733
Net Income 2,011,271 2,101,731 1,416,701 979,514 577,263 338,717 108,773 596,830 899,773 1,245,489 1,954,452 2,116,199 14,346,712
241

Income Statement
Revenue
Sales 9,999,090 9,477,535 5,128,395 4,139,630 3,371,960 2,101,045 2,151,405 3,678,015 4,571,505 5,678,590 8,287,580 9,449,070 68,033,820
Gross profit 4,433,180 4,202,285 2,273,235 1,835,020 1,495,020 931,465 954,075 1,630,325 2,026,795 2,517,910 3,674,400 4,189,620 30,163,330
Expense
Depreciation 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 55,084 661,012
Total expenses 652,097 337,763 339,730 330,187 427,439 353,939 618,606 330,552 330,363 329,494 434,716 339,829 4,824,715
Net Income 2,606,151 2,664,558 1,312,847 1,012,776 706,700 363,661 194,221 869,234 1,146,895 1,491,284 2,227,172 2,654,247 17,249,746
242
8.3 Conclusion
Risk Management is designed to do more than just identify the risk. It must also quan-
tify the risk and predict the impact on the project. We do risk management by the purposes of
identify possible risk, allocate those risks and provide a basis for better decision making. We
divide our risks into 2 groups first, internal risk is mainly effect from the company especially
from the human resource department and other are the related of human resource department.
The company needs to be good at human resources if they want to be avoiding internal risk
managements. Some risky activities are central to the mission of an organization and an or-
ganization will choose to accept the risks. Policies and procedures are an important part of
this risk management strategy because they communicate expectations and define boundaries.
To be successful we need to learn more about writing policies and procedures in a company.
Second, external risks are uncontrollable. We cannot control them but we can do prepare
from our organizations. We need to make sure that we had prepared for it and we are in-
volved with it to do the better situation. The government and other outstanding company will
help each other and we can success with the business even we are in danger because it is ex-
ternal risks no one can control it.
243
Chapter 9
Summary
244
Summary of project feasibility study
In the past, pottery is looked its oldest and look like ancient when human started lean-
ing to domesticate plants and animals about 10,000 years ago. But nowadays, pottery industry
is the popular business in Thailand and other countries (The Thaiceramic society). For Thail-
and, almost the factories are located in the northern especially in Lampang province. Because
the value of pottery production is more than 300 million Baht per year, so the number of pot-
tery business increase all the time. Pottery includes both decorative and home ware such as
bowl, vase, dish, lamp, etc. It is a part of large product group called ceramic that encom-
passes bricks, cement, sewer pipes, and other industrial product. For Chiang Rai province,
there is a good location to do business in pottery field because there are abundantly good
qualities of raw material which are easy to find and the cost of material quite cheap. This is a
main point that some entrepreneurs choose Chiang Rai as their business location. The com-
pany that decides to do pottery business need to improve the quality of their products and
service that prompt delivery and continuously development. The experiences, creation in de-
sign and high skill of potter are the necessary conditions that every company has to concern
because pottery is the art products that use a lot of production processes. Nowadays, not only
individual consumer interest in pottery for their usage and decoration but also hotels and spas
prefer pottery as their table ware and decorative items. The entrepreneur needs to learn more
about the situation of pottery business at first before doing in real.
After Pottery Design learns about the necessary conditions for beginning pottery
business, we focus on serving commercial premium products to consumer and staying on pro-
fessionalism. We will follow the vision through serving differentiate products with superior
quality. Consumer can perceive the value from those products. We concern in Growth strate-
gy which is suitable for newly company as Pottery Design. We produce pottery and serve to
consumer directly which knows as vertical integration. We focus on differentiation as our
business strategy. We serve modern style with natural resources which are safety to the health
of consumer. We target the consumer by tourists who are Thai and foreigner in Chiang Rai
and hotels& spas in Chiang Mai. According to Chiang Rai, there are many interested places
to travel all of the year especially in the winter. For hotels & spas in Chiang Mai, the number
of hotels increases every year from year a2009-2010, increasing by 37 hotels within one year.
This means we absolutely can do business with this group of consumer. So, we realize that
creating the company’s brand is very important. It forces the mind of consumers more recog-
245
nize in a company’s position. Moreover, branding shows the unique characteristics of each
company. We also serve the premium service to consumers which may exceed their expecta-
tions. When consumers want us to design their own order, the decorator of company will help
them design with a polite service at their place. Although they have to pay for our pottery in
expensive, they can perceive value from product by quality and its price. This shows that the
price is not the main factor for consumer to decide whether they will buy pottery or not. We
place the products in our store at Mae-jan district, Chiang Rai where is located with premium
clay and the consumers can follow the products through company’s website and the cam-
paign of company at central plaza Chiang Rai on January and July of each year. We will pro-
vide the pottery information and the transaction process for consumer to purchase our prod-
uct. We serve 2 types of pottery first, decorative items which include vase, lamp, and spa set.
Second, a type of home ware which are plate, bowl, spoon and fork, cup, and teapot. We
don’t only focus on corporate and business strategy but also functional, financial and human
resource strategy because all of these strategies are the important elements that new business
needs to consider.
Marketing analysis is also necessary before starting business. Political analysis is the
one factor that we concentrate with. However, Thailand changes the prime minister; the new
policy of tourism industry doesn’t much change. The number of tourist still increase to
11.96% from 2.98% in year 2010-2011. Thus, pottery business is not affected. This causes
the increasing of hotels& spa and the demand for their decorative items will increase. For
economy analysis, although there is flood disaster in the center of Thailand, the economy in
that area is bad. In other hand, economy of the northern of Thailand still good. It doesn’t af-
fect our company. According to government support the new family, people can apply the
loan to purchase or build their house. The demand for purchasing new home ware and decor-
ative items are increased. Therefore, we have an opportunity to get more sales. We also need
to concern about technology which is helpful to production process. It can reduce the cost and
making an easy way to contract with other parties. Pottery Design faces with many competi-
tors such as Doy Din Dang, Wieng Kalong, Baan Celadon, and indirect competitor as S.D.
company where sell ceramics. It looks a big deal for us to do business. In this case, we are
confident that we can serve the unique potteries which are direct to the preference of our tar-
gets. Because we have own style that others cannot be like us. However, we are newly com-
pany, but we plan to develop our strategies to be better all the time. We need more time to
grow up as well known company.
246
For our sale forecast, we use statistic of tourists (Thai and foreigner) who come to tra-
vel in Chiang Rai in year 2005. The statistic shows that on January- March, the number of
tourists is quite high because there is winter in Chiang Rai. We can forecast the total sale by
using the statistic of tourist and their payment for souvenir. Each tourist pay for souvenir
about 601.95 Baht, we can see from the table of average expenditure of Chiang Rai tourist. In
addition, we need to know the number of hotel& spa in Chiang Mai because there is also our
target. The figure from Ministry of Tourism and Sports of Thailand show that in year 2009-
2010, there are increasing the number of hotel in Chiang Mai from 410 to 447 hotels. The
information of operating expense of hotels industry in Chiang Mai is also required. We need
to forecast our sale because we would like to estimate the amount of producing pottery in the
right amount with the right time for managing the cost in an effective way.
We choose to buy the land which near the main road (Phahonyothin road). We think
that we can make the opportunity to get more consumers when the store is easy to find. We
need to hire constructed company to build our buildings and decorative area around company.
Gate and car parking are also required for making. We divide our company into three parts
which are manufacture, store that includes with rest rooms and office. For setting new busi-
ness, we need to pay for taxes of billboard’s company. We require some facilities that force
us to be easy in working such as the need of high speed internet, electronic& telephone& wa-
ter installation, secure camera setting and air condition setting. For the needed equipments for
using in operating and administration process, we need the standard equipments especially in
operating. We have to buy equipments that are essential for our manufacture such as Gas
Furnaces Ceramic, Pacifica Potter's Wheel and Seat for Pacifica Wheels. We choose each of
them by concern in quality. Although it is costly for our company, it lets us to produce quali-
ty of pottery for consumers. The vehicles that are car and trucks are necessary for our operat-
ing. For the machines and equipments that we use in administration process which includes in
office, shop, kitchen and restroom, we require some machines that use in office such as com-
puters, printer, phone, boss desk, chair, air conditions, sofa set, etc. For in the shop, we re-
quire cash register, pottery shelf, set of counter, etc. We also need some machine for using in
the kitchen such as microwave, insolated container of hot water, kitchen sink cabinet, etc. We
plan the service process by directly delivery products to hotels& spa in Chiang Mai by our
truck’s company. In other hand, consumer can buy our pottery though the store at Mae Jan,
Chiang Rai. There are many parts that are elements in the cost of operating process which are
raw material cost, direct labor cost and manufacturing overhead cost. We hire employees by
247
required qualifications so we can select the best person who direct to our requirement. We
will get the right worker with the right job. We need nine positions in operation process
which are factory manager, technician, potter, product designer, quality controller, stock con-
troller, baking person, packaging and delivering person. For administration position, we need
eleven positions which are top manager, financing manager, accountant, marketing manager,
sales person, advertising assistant, human resource manager, training and development staff,
housekeeping and security guard. On the cost of factory utilities in operating process consists
of water expense and electricity expense. The cost of car and fire insurance is also includes in
operation cost. For water and electricity expense, the cost will vary from the number of pro-
duction. In other hand, the cost of facilities in administration works include with telephone
expense, internet expense, water expense, electronic expense and training of employee. We
divide the responsibilities of each employee according to their work. Our company has CEO
as the top and there is a top manager to assign work to each department. We have four de-
partments within company consist of the part of factory, human resource, marketing and fi-
nancing. From this way, we clearly to manage the tasks to each worker, so the workers will
know what the tasks they have to do and to perform in the right ways.
In term of financial analysis, Pottery Design has to provide the information of finan-
cial statement analysis for the investor to make decision. We prepare financial analysis for
to know us. The investor will seek the capability, stability, profitability, solvency, and liquidi-
ty of company in financial statement financial statement consists of income statement, cash
flow and balance sheet. For income statement, it shows the company profit or loss that comes
from the revenue deduct by expense of operating, administration, marketing, pre-investment
and the cost of depreciation. We do income statement for report a company's earnings to in-
vestors over a specific period of time. Investors will make decisions based on the reported
earnings from the income statement. It provides important insights into how effectively man-
agement is company can control their expenses, the amount of interest income and expense,
and the taxes paid. From Pottery Design income statement shows that we only get the loss on
first month of beginning year because it takes cost too much about expense. For other months
we can get net income. Cash flow let investors to understand how a company's operations are
running, where its money is coming from, and how it spends. It is determined into three areas
which are operating activities, investing activities and financial activities. The investor can
248
see the return over rate of company from cash flow. Almost of liquidation in Pottery Design
is positive, this shows that we quite have cash on hand. For balance sheet, it is a snapshot of
the company’s accounts or assets, liabilities and shareholders’ equity. The investor can get
the idea of the company’s financial position along what the company owns and owes. Total
asset and total liability & equity of Pottery Design are equal. This means our company has
enough liquidation. We are a newly company which is well in financial term. Therefore, we
are a consistent to make profit and can deal with any financial risk that will occur with the
company.
There are external and internal risks that Pottery Design faces when doing business.
This is a good way for us to forecast the risks that will occur before beginning business be-
cause we can earlier prepare the solutions to prevent the risks that will nearly come. For ex-
ternal risks, it is a risk that we cannot predict or control. Political risk is a risk that may cause
from changing the prim minister so; some new patterns of policy may change and lead the
pattern of our business change as well. The risk of economic is required for us to concern be-
cause from year 2006, the cost of living in Thailand quite high. People are rare to buy and
make decorative items for their building. At a present, we concern about this also because it
ever happened before. In other hand, we may get the good news that we are coming to get
opportunities to do economic with ASEAN countries. At that time, we can express our mar-
keting; we can send our pottery to those countries. In the risk of social, although our company
does not affect too much about other nationality people around Chiang Rai, we plan to serve
CSR to community. This can reduce the social risk of company. Moreover, technology
changes all the time so, we need to upgrade our machines for more safety to the workers. We
need to prepare for it. For environmental risk such as flood, earthquake, etc., these situations
can happen every time. Therefore, we need to know the basics of knowledge management
and how we can avoid effectively applied to lessening the adverse effects on our company.
Also competitor risk, we have to handle with it because there are many competitors in pottery
field so, we prepare for this by staying in own way and make consumer more trust in our
company because consumer who love the different style will loyalty in unique products. In
contrast, the mind of consumers always changes in style of product all the time. We need to
keep in touch with them. We will show our responsibility and wiliness instate of changing the
way we design because our design is unique.
Internal risk affect directly with many parts of company. It can happen in many con-
ditions. This is a kind of risk that we can control when we predict the situation and plan the
249
way to solve it. Especially human resource risk, we always face with them. Some employees
lost of efficiency and knowledge because sometimes we cannot know who is good or bad in
working such as driver is drunk during their work time. This affects to late delivery product
to consumer. Thus, we need to train employee at the first time and protect our company by
law and let them know which one can do or cannot do. For the health of employee, when they
work for long time, It causes employee has a problem with muscular skeletal injuries. Staff
should carefully supervised and correct procedures for loading and unloading strictly ob-
served. We also have marketing risk which the staffs have to communicate with all of our
customers. They have to know what are customer needs and wants, asking customers such as
questionnaires, promoting our products with many ways. We will understand what a disaster
is and its potential for causing loss of revenue as well as public trust. We will mange the
marketing team as professionals that keep the horror, so to speak, present. We have a problem
with the information which we are hard to find the specific statistics, but it shows just general
information. Therefore, we can be wrong in understanding. Also we have a little experience
and information about the market. It is easy for us to have the mistake. We realize that we can
solve this issue by doing research, questionnaire, observation, etc in the market. We think that
doing in this way can support and make us get more and clearly information. The operation
risk that we have is about taking long time to produce pottery because it is handmade process.
In case consumer harries us to deriver pottery with large amount for them it take long time to
deriver because of long time operation. However, we need to develop our system so; they
will follow the company’s system and better know how to perform their tasks in suitable way.
Moreover, the risk of cost always happens to our company. The cost of material and wage
fluctuate all the time. It depends on economic situation. We have to concern the situation that
relate to the company’s cost all the time and always check the price of raw material and more
knowing about what we purchase. This will prevent us from any cost mistakes. For prevent-
ing fire risk, we will check fire conducted and reviewed annually. We plan to solve punctuali-
ty risk in machine and equipment by more careful and check before using. Pottery Design
lists the risks both external and internal that will occur in doing business in order to prepare
the active solutions to prevent any risks away from company. We will create the best solu-
tions to lead the less effect of risks for company.
In conclusion, pottery design as a newly company in pottery industry at Chiang Rai
that serve the unique style pottery. We have competitive advantages that superior from others
such as style of the product, greater quality, service; deriver product to consumer in other
250
areas, providing verity channels to communicate, etc. In addition, we plan to expand our
products to the new market in other countries especially ASEAN countries because of encou-
ragement in government policy. This figures that we can increase total sale when getting
more markets. We give the interest rate at 20% to investor. This rate is quite high and we will
pay amount of interest to investor in each year not the same because we need to pay for inter-
est in earlier year higher than the next. The amount that we pay will decrease eventually. We
have the rate of IRR=10% and NPV= - 4,187,981 Baht (In this case, there are many interest
rates that we can choose if we choose the rate at 3%, 5%, 9%, our NPV will be 24,093,578,
10,397,719 and 876,623 Baht respectively, but the real we choose to give 20% interest rate
so, the real NPV of us is about - 4,187,981 Baht). Moreover, we will pay back all money to
the investor within 1 year and 15 days. Our amount of time to pay back is quite short time.
251
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253
Appendix
Fire Insurance and car Insurance
254
กลุ่มอลิอนั ซ์
บริ ษทั อลิอนั ซ์ เป็ นหนึ่งในบริ ษทั ฯประกันภัยที่ใหญ่ที่สุดในยุโรป ก่อตั้งเมื่อปี 1890 ในประเทศเยอรมนี มีประสบการณ์ใน
การรับประกันภัยมากกว่า 100 ปี ให้บริ การรับประกันภัยแก่ลูกค้ามากกว่า 60 ล้านคน ด้วยเครื อข่ายสาขามากกว่า 70
ประเทศทัว่ โลก อลิอนั ซ์ ได้รับการจัดอันดับสถานะทางการเงินในระดับแข็งแกร่ งมาก ( AA-) โดยสถาบันจัดอันดับ แสตน
ดาร์ด แอนด์ พัวร์
เครือเจริญโภคภัณฑ์ ( ซี. พี.)

เป็ นกลุ่มธุรกิจเกษตรอุตสาหกรรมที่ใหญ่ที่สุดในประเทศไทย ก่อตั้งมานานกว่า 80 ปี มีพนักงานในเครื อรวมกันกว่า
120,000 คนทัว่ โลก (ประกอบด้วยธุรกิจอาหารสัตว์ ฟาร์มกุง้ ฟาร์มเป็ ดไก่ ฟาร์มสุกร โรงงานแปรรู ปผลิตภัณฑ์เนื้อสัตว์
และ ร้านอาหาร ) ต่อมาได้ขยายสู่ธุรกิจโทรคมนาคมและการสื่ อสาร ธุรกิจค้าส่งและค้าปลีก ธุรกิจปิ โตรเคมี ธุรกิจประกัน
ชีวตี และ ธุรกิจประกันภัยเครื อเจริ ญโภคภัณฑ์ ได้รับการจัดอันดับเป็ นอันดับ 1 ของบริ ษทั ทั้งหมดในประเทศไทยติดต่อกัน
เป็ นปี ที่ 5 จาก " นิตยสารฟาร์อีสเทิร์น อีโคโนมิค รี ววิ " ว่าเป็ นธุรกิจที่มีความแข็งแกร่ งของสถานะทางการเงิน ผูบ้ ริ หารมี
วิสยั ทัศน์ สามารถตอบสนองให้ลูกค้าพึงพอใจ และมีความสามารถแข่งขันเชิงธุรกิจสูง
ประกันรถยนต์ allianz CP 2 Plus
รายละเอียด/เงือ่ นไขการรับประกันภัย
- คุม้ ครองทรัพย์สินและรถของคู่กรณี สูงสุด 1,000,000 บาท(ต่อครั้ง)

- มีเงินชดเชยคู่กรณี สูงสุด 500,000 บาท/คน และไม่เกิน 10,000,000 บาท(ต่อครั้ง)
- คุ้มครองตัวรถของท่ านจากอุบัตเิ หตุสูงสุ ด 100,000 บาท(ต่ อครั้ง)
- คุ้มครองรถหาย-ไฟไหม้ วงเงิน 100,000 บาท
- คุม้ ครองบุคคลภายในรถไม่เกิน 3 คน มีเงินชดเชย 100,000 บาท/คน และค่ารักษาพยาบาล 100,000 บาท/คน
ข้ อกําหนดของบริษัทประกันภัย
- ไม่คุม้ ครองการเสี ยหาย เนื่องจากไฟไหม้

- จํากัดอายุรถไม่เกิน 15 ปี
- ทุนประกันไม่ต่าํ กว่า 80% ของราคารถยนต์ (พิจารณาโดยบริ ษทั ประกัน)
- รับประกันรถยนต์ส่วนบุคคล ไม่ใช่รับจ้างหรื อให้เช่า
- รับประกันอู่ในเครื อ
- รับส่วนลดปี ต่ออายุ 600 บาท (ไม่มีการเรี ยกร้องค่าสิ นไหมทั้งฝ่ ายผิดและฝ่ ายถูก)
- บริ การรถฉุกเฉิ น 24 ชัว่ โมง
- ตรวจสภาพรถก่อนรับประกัน
255
ความคุ้มครองประกันภัยรถยนต์ Plan 1 Plan 2
ซ่อมรถคุณ ต่อครั้ง ** 100,000 200,000
รถหาย ไฟไหม้ 100,000 200,000
บาดเจ็บเสี ยชีวติ บุคคลภายนอก 500,000 / คน
บาดเจ็บเสี ยชีวติ บุคคลภายนอก 10,000,000 / ครั้ง
ทรัพย์สินบุคคลภายนอก/ซ่อมรถคู่กรณี 1,000,000 / ครั้ง
ประกันอุบตั ิเหตุ 100,000 / คน *
ค่ารักษาพยาบาล 100,000 / คน *
ประกันตัวผูข้ บั ขี่ 200,000 / ครั้ง
ค่าเสี ยหายส่วนแรก กรณี เป็ นฝ่ ายผิด 2,000
เบี้ยประกันราคาปกติ 8,600 11,000
เบี้ยประกันราคาพิเศษ 7,440 10,200
Click ดูรายชื่ออู่ซ่อม
* คุม้ ครอง 5 คน
**รับประกันเฉพาะกรณี ชนกับยานพาหนะทางบกเท่านั้น
***กรณี ถูกชนแล้วหนี ได้รับความคุม้ ครองเมื่อ เมื่อสามารถแจ้งให้บริ ษทั ทราบได้ถึงรายละเอียดของรถที่มาชน โดยทําการ
แจ้งความกับเจ้าหน้าที่ตาํ รวจ และนําบันทึกประจําวันมาแสดง
256
ใบสั่งซื้อประกันภัย
Source: http://www.todayinsure.com/index.php?ui=sales&pid=3562
257
พรบ. ค่ าเบีย้ ประกันภัย และความคุ้มครอง
พ.ร.บ.รถเก๋ ง พ.ร.บ.รถกระบะ พ.ร.บ.รถตู ้
ราคา : 645 บาท ราคา : 967 บาท ราคา : 1,182 บาท
ความคุ้มครองตามพระราชบัญญัตคิ ้ มุ ครองผู้ประสบภัยจากรถ พ.ศ.2535
1. ค่ าเสียหายเบือ้ งต้ นสําหรับผู้ขับขี่ ความคุม้ ครอง
1.1 กรณี บาดเจ็บ ในวงเงินไม่เกิน 15,000 บาท/คน
1.2 กรณี บาดเจ็บ/เสี ยชีวติ ในวงเงินไม่เกิน 35,000 บาท/คน
2. ค่ าเสียหายเบือ้ งต้ นสําหรับผู้ประสบภัย ความคุม้ ครอง
2.1 กรณี บาดเจ็บ ในวงเงินไม่เกิน 50,000 บาท/คน
2.2 กรณี บาดเจ็บ/เสี ยชีวติ ในวงเงินไม่เกิน 100,000 บาท/คน
ประเภทรถ ค่าเบี้ยประกันภัยพรบ จ่ายเงินสด
รถเก๋ ง 645.00 บาท 610 บาท
รถกระบะ 967.00 บาท 920 บาท
รถตู้ 1,182 บาท 1,125 บาท
Source: http://www.irminsure.com/index.php?lay=show&ac=article&Id=452728&Ntype=1
258
ทุนประกันภัย
1. สิ่ งปลูกสร้าง คํานวนทุนประกันภัยจาก พื้นที่ใช้สอยรวมเป็ นตารางเมตร คูณด้วยราคาประเมินค่าก่อสร้าง
ต่อตารางเมตร โดยมีสูตรการคํานวณดังนี้
ทุนประกันภัย = (กว้าง x ยาว x จํานวนชิ้น x จํานวนคูหา)
คูณด้วยราคาประเมินต่อตารางเมตรและให้ราคาประเมิน
สิ่งปลูกสร้ างชั้น 1 (ผนังคอนกรี ตล้วน) = 8,000 บาท/ตรม.
สิ่งปลูกสร้ างชั้น 2 (ผนังครึ่ งตึกไม้) = 6,000 บาท/ตรม.
2. เฟอร์นิเจอร์ เครื่ องตกแต่ง และของใช้อื่น ให้ประเมินตามความเป็ นจริ ง
3. สต็อกสิ นค้า ให้ประเมินตามความเป็ นจริ ง
หากผูเ้ อาประกันภัยต้องการให้คุม้ ครองสิ่ งปลูกสร้างด้วยทุนประกันแบบชดใช้ตามมูลค่าทรัพย์สิน
ที่เป็ นของใหม่ (New Replacement Value Cost) ผูเ้ อาประกันภัยจะต้องแจ้งราคา
สิ่ งปลูกสร้างตามมูลค่าการก่อสร้างในปั จจุบนั พร้อมทั้งปรับทุนประกันภัยสิ่ งปลูกสร้างตามดัชนีราคา
ก่อสร้างที่เปลี่ยนแปลงในแต่ละปี
ถ้าทุนประกันตํ่ากว่ามูลค่าที่แท้จริ ง เมื่อเกิดความเสี ยหาย ผูเ้ อาประกันภัยต้องร่ วมเฉลี่ยค่าเสี ยหาย
การประกันอัคคีภัย สําหรับร้านค้าย่อย/สํานักงาน
เฉพาะสิ่งปลูกสร้ าง ชั้น 1 - ผนังคอนกรี ตล้วน สิ่งปลูกสร้ างชั้น 2 – ผนังครึ่ งตึกครึ่ งไม้
ที่ต้ งั อยูใ่ นเขตกรุ งเทพมหานคร และอําเภอเมืองทัว่ ประเทศ
ตารางเบีย้ ประกันอัคคีภัย สําหรับบ้านอยูอ่ าศัยในกรุ งเทพมหานคร และอําเภอเมืองทัว่ ประเทศ
259
ร้ านค้ าย่ อย สํานักงาน
สิ่งปลูกสร้ างชั้น 1 สิ่งปลูกสร้ างชั้น 2 สิ่งปลูกสร้ างชั้น 1 สิ่งปลูกสร้ างชั้น 2
ทุน เบีย้ ประกัน ทุนประกันภัย เบีย้ ประกัน ทุนประกันภัย เบีย้ ประกัน ทุนประกันภัย เบีย้ ประกัน
ประกันภัย
300,000 757.56 300,000 1,772.99 300,000 645.21 300,000 919.31
400,000 1,010.08 400,000 2,363.63 400,000 645.21 400,000 1,225.15
500,000 1,262.26 500,000 2,954.27 500,000 645.21 500,000 1,531.17
600,000 1,515.12 600,000 3,545.98 600,000 773.61 600,000 1,837.19
700,000 1,767.64 700,000 4,136.62 700,000 903.08 700,000 2,143.21
800,000 2,020.16 800,000 4,727.26 800,000 1,031.48 800,000 2,450.30
900,000 2,272.68 900,000 5,317.90 900,000 1,160.95 900,000 2,756.32
1,000,000 2,525.20 1,000,000 5,908.54 1,000,000 1,289.35 1,000,000 3,062.34
2,000,000 5,049.33 2,000,000 11,817.08 2,000,000 2,578.70 2,000,000 6,123.61
3,000,000 7,574.53 3,000,000 17,725.62 3,000,000 3,868.05 3,000,000 9,185.96
4,000,000 10,098.66 4,000,000 23,634.16 4,000,000 5,157.40 4,000,000 12,247.22
5,000,000 12,622.79 5,000,000 29,542.70 5,000,000 6,445.68 5,000,000 15,308.49
6,000,000 15,147.99 6,000,000 35,451.24 6,000,000 7,735.03 6,000,000 18,370.83
7,000,000 17,672.12 7,000,000 41,359.78 7,000,000 9,024.38 7,000,000 21,143.21
8,000,000 20,197.32 8,000,000 47,268.32 8,000,000 10,313.73 8,000,000 24,494.44
9,000,000 22,721.45 9,000,000 53,176.86 9,000,000 11,603.08 9,000,000 27,555.71
10,000,000 25,245.58 10,000,000 59,085.40 10,000,000 12,891.36 10,000,000 30,616.98
260
หมายเหตุ เบี้ยประกันภัยตามตาราข้างต้น รวมภาษีมูลค่าเพิ่ม 7% และอากรแสตมป์ แล้ว
จํานวน 645.21 บาท เป็ นเบี้ยประกันภัยขั้นตํ่า ตามพิกดั อัตราเบี้ยประกันภัยปี 2544
สถานทีต่ ้งั ทรัพย์ สินเอาประกันภัย
สถานที่เอาประกันภัย ที่ประกอบธุรกิจเป็ นร้านค้าย่อย หรื อสํานักงาน โดยจะพิจารณาเฉพาะที่เป็ น
สิ่งปลูกสร้ างชั้น 1 (ผนังคอนกรี ตล้วน) และสิ่งปลูกสร้ างชั้น 2 (ผนังครึ่ งตึกครึ่ งไม้) ที่ต้ งั อยูใ่ น
เขตกรุ งเทพมหานคร และอําเภอเมืองทัว่ ประเทศ เท่านั้น
ทรัพย์สินที่รับประกันภัย
1. สิ่ งปลูกสร้าง หรื อตัวอาคาร (ไม่รวมรากฐานและราคาที่ดิน) รวมส่วนต่อเติมอาคาร

2. เฟอร์นิเจอร์ เครื่ องตกแต่งติดตั้งตรึ งตรา เครื่ องใช้ไฟฟ้ าและอุปกรณ์ไฟฟ้ า
และเครื่ องใช้ต่างๆ
3. สต็อกสิ นค้า
ภัยที่ให้ความคุม้ ครอง
1. ไฟไหม้
2. ฟ้ าผ่า
3. การระเบิดของแก็สหุงต้มที่ใช้เพื่อการอยูอ่ าศัยในครัวเรื อน
วิธีการชําระเบี้ยประกันภัย
1. ศูนย์การบริ การลูกค้า บริ ษทั เมืองไทยประกันภัย จํากัด (มหาชน) สํานักงานใหญ่

2. เช็ค ขีดคร่ อม “A/C PAYEE” สัง่ จ่ายในนาม
“บริ ษทั เมืองไทยประกันภัย จํากัด (มหาชน)”
3. ดร๊ าฟท์ ขีดคร่ อม “A/C PAYEE” สัง่ จ่ายในนาม
“บริ ษทั เมืองไทยประกันภัย จํากัด (มหาชน)”
4. ธนาณัติ สัง่ จ่ายในนาม “บริ ษทั เมืองไทยประกันภัย จํากัด (มหาชน)”
ส่งมาที่ ปณฝ.เมืองไทย-ภัทร คอมเพล็กซ์
5. ชําระด้วยบัตร ATM: ธนาคารกสิ กรไทย, ธนาคารกรุ งไทย และ ธนาคารกรุ งเทพ
6. ชําระทางโทรศัพท์ที่ บมจ. ธนาคารกสิ กรไทย โทร. 0 2888 8888
261
7. ชําระผ่าน Internet Banking โดยสมัครเป็ นสมาชิก
ที่เว็บไซต์ www.kasikornbank.com
8. ชําระเงิน ณ จุดบริ การ Jay Mart Shop: สาขาที่มีสญ ั ลักษณ์ Jay Mart
(เฉพาะเงินสด)
9. ชําระเงิน ณ จุดบริ การ Pay station AIS/เทเลวิซทัว่ ประเทศ
(เฉพาะเงินสดไม่เกิน 50,000 บาท)
หมายเหตุ การชําระเบี้ยประกันภัย ผูเ้ อาประกันภัยจะต้องอ้างอิงเลขที่กรมธรรม์ประกันภัยในการชําระเบี้ยประกันภัยด้วย
Source: http://www.muangthaiinsurance.com/products_small_business.htm
262
Project Feasibility and Evaluation
Group Member Seat 7
Team name : Power Ants
Pottery Design
MISS NANG MAY THU AUNG 5131205222 Hospitality Industry Management
meeyauo@gmail.com 087-3622820
MISS PORNPAVEE WORASUBHAKORN 5231203091 Business Administration

p_worasubhakorn@hotmail.com 088-4030803
MISS RATTANAPON KONGSONG 5231203102 Business Administration

nukoy_rattanapon@hotmail.com 085-0638628
MISS WARISSARA MANOSAMOOT 5231203108 Business Administration

marine_luiiz@windowslive.com 081-9988248
MR. WICHAKORN KUNAPOE 5231203111 Business Administration

gu-pump@hotmail.com 087-7878773
MISS SUPARAT THANATHIP 5231203121 Business Administration

nemo_nu_ann@hotmail.com 084-6085237
MISS SAWITRA PHONPHAIRIN 5231203123 Business Administration

dex32_am@hotmail.com 083-8736597
MISS YIWEI GAO 5231203186 Business Administration

olina1989@live.cn 083-7624253
School of Management
Mae Fah Luang University
263

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I

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

4.3. Investment Cost 81-84

4.4. Depreciation 85-94

1.2 Project objective

1.4 Operating methods

 To study management in pottery business as follows:

 To study competition analysis and marketing feasibility as follows:

 To study the technical process in pottery business as follows:

 To study the financial feasibility of pottery business as follows:

 To study and analysis risk of pottery business in Chiang Rai

 To Summary the feasibility of pottery business in Chiang Rai

November December January February

To study the general of pottery business in

To study competition analysis and marketing

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

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

2.3 Product and Service

Spoon and Fork

Figure: 3.2 Thai economies in Q3/2011

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

Internet Telephone Facebook fan page

Figure: 3.4 Technology Equipment

Direct Competitor analysis

1) Doy Din Dang Pottery

Figure 3.5 Doy Din Dang Pottery

Figure 3.5.1 Home ware Figure 3.5.2 Decorative

Figure 3.6 Wieng kalong Pottery

Figure 3.7 Baan Celadon Ltd.

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

4) Banpatan Terra cotta pottery

Figure 3.8 Banpatan Terra cotta pottery

Indirect Competitors analysis

Analyze & Summary the competitor.

2. Wieng Kalong Pottery -From the positioning the potter of Wieng

Figure 3.9 Target market

Celadon Ban Chiang

Figure 3.10 Market share

3.2 STP Analysis

Product Price Place Promotion

3.3.1 Product strategy

3.3.2 Price Strategy

3.3.3 Place Strategy

3.3.4 Promotion Strategy

Figure: 3.11Tourism statistics in Chaing Rai per month 24

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

Resource : Ministry of Tourism & Sports 27

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

Table 3.17 Sale Forecast Year 2013

Table 3.19 Sale Forecast Year 2015

Table 3.22 Sale Forecast Year 2013

Table 3.24 Sale Forecast Year 2015

Catalogue - - - - 14,700 - - - - - 14,700 - 29,400

Brochure - - - - 17,000 - - - - - 17,000 - 34,000

Marketing Expenses of Year 2013

Catalogue - - - - 14,700 - - - - - 14,700 - 29,400

Brochure - - - - 17,000 - - - - - 17,000 - 34,000

Campaign 230,000 - - - - - 230,000 - - - - - 460,000

Billboard - - - - 65,000 - - - - - 65,000 - 130,000

Catalogue - - - - 14,700 - - - - - 14,700 - 29,400

Brochure - - - - 17,000 - - - - - 17,000 - 34,000

Campaign 230,000 - - - - - 230,000 - - - - - 460,000

Billboard - - - - 65,000 - - - - - 65,000 - 130,000