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2

DécorPottery

Present To

Aj. Chaiyawat Thongintr

By

1.Worazana Horprayoon 5031207114 2.Angkana Nantachai 5031207132 3.Akepailin Wainum 5031207136 4.Thanyalak Ruamtham 5031207142 5.Nitra Nilsawit 5031207144 6. Preyanee Kityanurak 5031207147

7. Suphachet Simma 4931207109

Hospitality industry management

Section 01

Project feasibility and study evaluation

Semester 1/ 2552

Mae Fah Luang University

3

Preface

This report has objective for study about project feasibility and to practice for

planning marketing, financial, to survey, and study before do a business. This report has

content about detail of company’s name and history and information analysis, This report

will explain with exhaustively, for the reader see and consider before do a business and

for us, to know hoe to do business. And the last we have to saying Thank you for

Aj.Chaiyawat Thongintr for his good advice that makes this report succeeds. We hope

this report is useful for reader more or less and if there has anything not completely, we

are apologizing for that therein.

Manipulator

4

Content

Introduction

- Background and Significance of the Project 1

- Project Objective

- Benefits of Project

-Activities/Time Frame

Industry Profile 10

-Nature of Industry

-Situation of Industry

-Product/Service (in General)

-Vision

-Mission

-Strategy

Market Feasibility Study 16

- Market Analysis

- General Environment Analysis

- Competition Analysis (3C Analysis)

- Competitor Analysis

- Customer Analysis

- Competitive Analysis

-STP Analysis

-Marketing Mix Strategy

-Sales Forecast/Profit Estimation

-Marketing Expenses

-Conclusion

Technical Feasibility Study 28

- Production and Operations Analysis

- Product Characteristics

- Production/Services Process

- Location

- Facility Layout

- Machine/Tools/ Equipments

- Logistics Management

- Facility Management

- Machine/Tools/ Equipments

5

- Cost of Investment

Pre-Operating Cost

- Investment Cost

Land

Buildings

Equipments

Tools

Depreciation

- Operating Cost

Raw material Cost

Direct Labor Cost

Overhead

- Management Analysis

Administration Cost

-Conclusion

Financial Analysis 60

- Profit/ Loss Statement

- Cash Flow

- Balance Sheet

- All financial Statements are in monthly base.

-

Risk Management 64

Risk management

External risk

Internal risk

Five force Analysis

Risk analysis

The way to reduce risk

Summary 71

Appendix 75

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Decor Pottery

Introduction

Background

DécorPottery produce the ceramics plant pot. Would not deny that current affairs

of the home furnishings store a type of ceramics is a business that is becoming popular.

Who are interest to open a large business, but how the shop successfully and have a

unique selling point with their own ideas and design. A combination of materials and

devices with unique home furnishings. We produce plant pot as home decorative because

its style is very modern and suitable for new generation people.

From the financial information Export of ceramics in Thailand five main

categories. 2551 (January – November) found that the value of 15,018.08 million baht,

down from the previous year. 2550 during the same period 3.69 percent when combined

with other products, ceramics and found that the year 2551 (January-November) the total

value.29.604.35 million bath, an increase over the same period in 2550 percent. When

considering each type found in 2551 (January.-November.) Consumer dinnerware (dishes

made of ceramic) is the most export value compared with other products. Exports

accounted for 17 percent of all export ceramic, followed by the bathroom, tile floor.

Motions wear twist off the wall and c, gift and jewelry, with the power and Loktgwi

14,13,3 and 3 per cent. Respectively other ceramic products accounted for 50 per cent

(the chart 1) the export market of Thai ceramics in 2551 (January.-November) found that

Japanese market. Thailand exports the most is 13,182.6 million baht. Industry

manufacturing the type of the decorative in Thailand, most labor is the main policy,

particularly skilled workers because of production. This category requires the ability to

manufacture products, design patterns. Most entrepreneurs look to small and medium-

sized factories. Indicated ceramics decorative is popular in the present. And it was the

interest business, so décor pottery create new product design to customer for up the

ceramics market in Thai have ability to compete as much as possible.

We decide to do learn about this product because we interested in the decorative.

Nowadays there are many places that need to décor; however the hotel, coffee shop,

restaurant and others, plant pot are the popular equipment that they consider. Company

that produce the pot are quite a bit, some of them are the export company especially pot,

not including others Ceramics Company that have pot in their product. Indicated that

there are many competitive markets, to be the new competitor is difficult, so we create

the idea that different from others and interesting, high class and valuable but doesn’t

expansive, because we make it by ceramics. There are many companies that produce

plant pot, and there is little company to produce the look strange product. That is the

initiative of inspiration to create idea to learn about the feasibility of this product.

DécorPottery not create the ordinal product, doesn’t ordinal plant pot, not in the garden,

not only show and plant, but we have more function in the modern style. Generally we

plant in the pot and take water to them, so we think that” How great if plant pot watering

themselves” and “How great if plant pot not only for plant”.

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Objective

- To learn about intendance to growing and possibility of pottery ceramics business.

- To learn about customers behavior and interest of customers about ceramics pottery.

- To learn about financial information of ceramics business.

Project benefit

- Know about the growing and possibility of pottery ceramics.

- Know about customer’s behavior and interest of customers about pottery ceramics.

- Know about financial information of ceramics business.

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Procedure

1. Meeting and making Decisions about business project and background, objective

and result.

2. Project planning. Set vision, Mission and position that we will be and set the

strategy.

3. Market analysis and Budgeting cost, thing about Environment, political,

Economy, Social and Technology

4. Think about product characteristic and prepare material, machine, equipment, etc,

to make the product and contact the supplier. After that produce product.

5. Controlling process

6. Financial statement analyzing

7. Promoting and distribute the product.

Time Frame

2-18

Gantt Chart

A

B

C

D

E

F

G

Current week

Completed

Incompleted

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A: Meeting and making Decisions about business objective

B: Project planning

C: Market analysis

D: Technical feasibility study

E: Financial analysis

F: Risk management

G: Summary

Organizer

1. Ms.Worazana Horprayoon

2. Ms.Angkana Nantachai

3. Ms.Akepailin Wainum

4. Ms.Tanyalak Ruamtham

5. Ms.Nitra Nilsawit

6. Ms.Preeyanee Kityanurak

7. Mr.Suppachet Simma

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Industry Profile

History of product

Since Rattanakosin period 1 reign times begins to restore but be ordering from

China by give the Thai artist to draw Thai painting and send Thai technician go to control

design writing also. The pottery that order the most are a dish, bowl, earthen jar, a

spittoon and a cup, design that write to is the Thai painting and write a color on cup white

ground, write name of Thai porcelain with designs in five colors example write a color on

cup ground such as draw garuda, Leo, and the figure of deva appear that have the skillful

more Ayudhya time.

2 reign times the Thai artist have thrives in skillful more and more the pottery that

order from China as a result think to adjust shape, design and have new design such as

rose design, china design such as china flower design , Leo design, then bring to adjust to

suit with favor of Thai by use gold color to writing .Cup of Thailand that very favor is the

cup that order from 2 reign which call of Som-dej-phra-sri-soo-ri-yen because she was

order by own.

3 reign times have the ordering goods from the foreign countries as much as

necessary but His Majesty care to restore the pottery in the country that is to say he care

to do the glazed tile roof, which is the decorations by used the kiln like Tu-Rieng.

4 reign times because of Thai envoy which went to China at B.E.2395 was rob by

criminal then have no sending Thai envoy goes to the China again and have no sending

technician Thai go to look around doing pottery also. The pottery from China was

ordering by Thai merchant then the design of pottery is porcelain then the pottery from

China are porcelain design and mostly drawing design from China.

5 reign times which in the time of very progress. The education about academic

matter of then expand extensively the pottery that order to come in trade in Thailand,

there is both of Chinese, Japan and the Europe. In this period admire to use and design of

Europe but the order to do are the Thai shape as for from Japan mostly were the crockery

and decoration in order that because Japan begins to copy of Chinese and in that time in

Thailand has doing especial design writing on the pottery only.

6 reign times Thailand begins to have a factory to produces a kind of pottery

which are complexion rough , such as , pot , big jar , a basin and an earthen jar , which ,

there is both of a kind coats and don't coat.

7 reign times B.E.2475 after has administration change, the government will try to

resuscitate National economy, by permit industry entrepreneur more and more.

the pottery is the one industry , that have encourage , and have person take an interest

pretend the industry in a family , in the North , northeast , and center part , the products

that can produce at that time is , big jar , basin , and an earthen jar , good complexion

products that can produce are use the raw material from the foreign countries.

8 reign times and 9 reign times ( At present ) engaging in business pottery

industry or , the ceramic industry , if , will give effective good must live the theory and

the Technology attend , assemble with the quality of the raw material that use.

development the ceramic industry in the part of the academic and the Technology in

Thailand , Department of Science Service , science ministry , the Technology and the

energy , contribute to greatly in year B.E. is 2478 Department of Science Service , get

begin operate about the pottery , later in year , B.E.2479 have started personnel

development s about the pottery by sending staffs goes to take the training in the foreign

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countries already comes back to develop the personnel of government academic

department and the Technology and get do the education researches the raw material by

research ,analyses and test and get do the education researches the raw material , by the

patrol , analyze , and test , the raw material is in country , such as , marl and kind stone

that use do pottery products from the research and the analysis research , Thailand has

raw kind good a large amount material , can use do kind of good pottery , cause have the

investment builds pottery factory goes up

At B.E 2503 Board of Investment, (BOI) get the notice to support and encourage

the investment in ceramic industry business, thus, in year B.E. 2508 2503 then have

ceramic factory happen 8 places which receive a card encourages the investment. The

products that produce to have the tile, the tile covers the wall, mosaic tile, and the

sanitary ware at this B.C. 2508. A council develops the economy and National Prime

Minister's office social get support by give the project develops products pottery industry

stay in the plan develops the economy and National social. since , 1 map end until 4 maps

now the ceramic industry progresses and develop to go to at most , there is a ceramic

factory large-sized about 10 a factory , be in Bangkok , and a province is near to , small-

sized factory scattered to nationwide. especially in the Lampang about 50 a factory , these

factory produces a cup , bowl , sanitary ware , mosaic , the tile , the tile decorates ,

electric insulator wall is electricity , and a brick builds , production enough quantity

builds [ wasp ] using i country and still export to sell to the foreign countries in year B.E.

2528 about 500 million baht.

in His Majesty the King Bhumipol Aduldej of Thailand time, present reign,

science ministry, the Technology and the energy, there are 2 affiliated with institutes

which do the research and develop the ceramic industry are the center research and

industry pottery development, Department of Science Service and a branch researches

metal industry and ceramic industry, Thailand Institute of Scientific and Technological

Research.

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Natural of product

Type of pottery can separate from the kind of material and way to make such as

1. baked clay pottery is the pottery that us used long ago can seek easy and the price is

inexpensive the character of the pottery has hole which help ventilate and ventilate the

moistness well then its cause to plant root receives enough oxygen and have to grow up

well and the temperature of gold not tall too much especially

2. in the summer the pottery can to destroy and eradicate the pest easy by the go to a

sauna or smoke with chemicals by don't be contorted but have defective is high weigh

and nowadays expensive when compare with plastic pottery , easy broken when use go to

for a long time and will have the moss goes up round the pottery ( because the

moistness )to see dirty and difficult to wash clean more plastic pottery.

3. baked clay pot coats , blue patterns pot , and ceramic pot , will better the

earthenware which use get long ago by have no a problem easy to wash clean and not

have the moss goes up round the pot , the color doesn't change but the price will

expensive more than other pot.

4. Cement pot very endure and modern shape more than other can do various colors

but have defective such as high weigh very.

5. Plastic pot have price cheap , the weight is light ,easy to clean , have no problem

about moss keep moistness well more than baked clay pot , grow slow dry , not water

extremely often but have fault because of the character of dark pot has no hole air to

ventilates not convenient if more water will make the water be stagnant may cause to

plant root decays can die and the temperature of grow very high in the summer

especially plastic black pot , plastic not durable pot be usable for a moment will broken

must change new pot.

6. The pot from nature material such as the coir include other utensils for example,

wood pot, the pot aforementioned have the character differently the purpose is for to

stand or hang decorate area all place.

7. The pot decorates the place especially the pot decorates that don't use to grow the

tree directly but is the pot that design specially beautifully for use put the tree shows suit

the place and the utensils that can use to support or take the pot grows the tree adds down

go to for see beautiful increasingly but depend on the decoration which we must take the

wood in earth pot comes to add overlap such as such as , wicker basket , bamboo basket

weaves , rattan , aluminum , glazed tile kind this pot emphasizes the beauty is a principle

, like to apply have interior decoration a building , home , hotel , office or the other place

and mostly have high price and must maintain by avoid water especially kind of wooden

bamboo pot weaves or rattan as a result , make can be usable long time.

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Size and the figure of the pottery

Generally size of the pot will use since 6 inch (diameter) 8 inch 10 inch until 12

inc if is baked clay size pot will should not exceed 12 inch because too much to fix strong

enough and easy to broken if have to use big size this more should choose kind of pot

coat will better and we can separate the pot follow tree that will grow also such as

1. Big tree such as banyan tree, Ta-go tree, Janpha tree and Mok tree.

2. Garden tree is small-sized and high not exceed 1 meter.

3. Water wood has 2 kind are

- Water skin such as lotus, short pot and width.

- Stem over the water such as reed.

4. The tree for collect must take care closely and specially because have high

price such as Bonsai.

5. The wood hangs or climber some kind also use ordinary wood pot ,grow down

the earth some kind hold with material to grow such as the coir .

The pottery separate follow procedure

1. The ordinary stand pottery is the pot stands ordinary is standard pot which the pot

that have the width , narrow buttocks by has the wideness of the diameter equals to the

height or the depth of the pot such as 6 inch will have the diameter of 6 inch and has

the height or depths 6 inch also this kind of pot uses to grow the tree in generally such as

the wood is short-lived or garden old tree long such as rose all right because there is the

material or grow enough for root system will can grow up. The depth of the pot will help

to give can support bush well but often have trouble about wet earth if a hole lets off

blocked water cause the root system can get into trouble.

2. The short pot (Azalea Pots) the character resembles pot standard but will have

the a little depth more than because the depth of the pot equals to the area of the diameter

of pot width it convenient for the flowering plant has bush and close crowded but short

tree such as such as Gloxinia and African Violet because of this kind of pot has short

character , pot wide buttocks more than the pot standard then the tree easy to die have the

strengthen and see beautiful and not waste the material for grow.

3. Tray pot (Pans) is the pot buttocks shallow like frying pan, the depth or height

of the pot will equal to the half of the diameter of pot width such as 8 inch width but

will deep just 4 inch etc. Tray pot or potn buttocks shallow it convenients for to

grow like stem and garden some kind tree that have short bush and expand such

as the Christmas tree besides the pot still use to the utensils to the seed for

cultivate well as well because of there is shallow buttocks makes the earth cultivates

not wet seed not consumed the earth cultivates light weight dislocates convenient and

like to use grow the tree collects such as the Bonsai.

4. The pot hangs if is ordinarily as a result will have the pot hangs wire there is knit

and use other material can modify such as glass bottle, bottle pet of beverage recycle or

other.

5. Baked clay pot likes to have hole use grow especial type tree the pot likes this can

make easy to evaporate and dry fast more plastic pot , glass or metal

Vision

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“We create fashionable design of flowerpot”

Mission 1. We search for new style and design for customer wants.

2. Distribute the product to customer.

3. Export product to global market.

4. Make quality product and make sure to customer.

5. Make and distribute to community.

Décor Potteries Strategy

1. Corporate level If we use many strategies we will take a lot of money then our company will

have many strategies to set the limits and way to get the high profit.

Integration strategies

– Forward integration, the company set up to subsidiaries that distribute

or market products to customers or use the products themselves.

– Backward integration, the company set up the factory and have the raw

material of themselves and can buy the material for produce the

pottery to other also.

– Horizontal integration, find more monopolistic and produce all

component of pottery raw materials by own.

Intensive strategies

- Market penetration, for penetrate the market our company have

promotion to sell the product is when buy 1 will get 1 and discount

10% for the customers who buy over 2 piece.

- Market development; increase the number of branches to other place

such as at department store etc.

- Product development, think the new design for respond the require of

customer and improve the old pottery to more up-to date.

Diversification strategies

- Concentric ( related ), contact or sell the product to the pergola

Shop or florist shop.

Defensive strategies

- Retrenchment, reduce the employees

- Divestiture cut some shop which not has profit.

- Liquidation, find the reserve capital.

2. Business level

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Use the strategy by the company is the cost leadership for sell the product

in low price and emphasizes in the different of product and can establish the value

added for product to respond need and want of customers and focus the customer

personal and develop then can increase cost of product.

3. Functional level

- Plan the organization in the company about business strategies and HR

to develop the employees then employees develop the product.

- Find the new market and research requirement of customers to design

new product for them and develop new product to have innovation

more and more.

- Shop of our company establish at center of market and the customer

easy to find and manage the income ,balance sheet and cash flow by

accountant then can know the profit or loss of company.

Set the gold of amount of capital in company then prepare the advance an investment

from other

Market Feasibility Study

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Market Analysis

To do a business, we have to consider about marketing. Pottery businesses are

popular in the north of Thailand, so we have to do market analysis for study customers

behavior, competitor’s advantages or every thing that important for business. Décor

Pottery is SMEs business, we specify customers who interesting in fashionable idea

product such student and workers which style, function of product that become the new

alternative for customers.

Political To do a business we have to consider about political policy such as Free trade

Area policy, environment protect law, and pollution, community healthy, Business Zone,

Economy Economic status of Thailand is the important thing for us to consider, occupation,

population revenue; these are the factors that influence to purchasing power. To buy the

material we have to consider that this economic status, sometimes material is high price

it’s may be result to the cost of our product.

Social and environment Social and environment is the one of important think that we have to consider. As

we know to build the company we must have responsibility to social, should not be

damage the social and environment. We employ people from this local area to work in

our company that the way to distribute revenue to local area and is the way to up social

level too.

Technology Technology, this factors is important too because machine and many equipment

we have to use technology. Because of this business is concentrate about technology, so

we have to think about it. Machine is very important think that we should think about, if

any machine is broken and make product broken indicated we are lost many profit, and

the more important is broken machine will dangerous to employee and factory too. This

is the reason that why we have to understand about technology. Besides, technology may

be help us in the others way such as to calculate with computer, to prepare the income

statement with computer program, and save report too, if we haven’t know about

computer, we will can’t use program.

Competition Analysis [3C Analysis]

17

- Competitor analysis

Our competitor has just only few, there has a big owner in Thailand not

over 10 and has much freedom’s owner in Thailand. Most of them produce ordinary style

of pottery and some of them are the exporter. So we create difference product for up

ability to compete. We have to know the customer of us, and learn their advantage for

develop our

- Customers analysis

Target Group of Décor Pottery Customers are the person who interesting

in modern style product and customers who have limited area such as student and

working person. We create the products to suitable for this group of customers.

- Company Analysis DécorPotery is difference from others for attract customers, we have

identity, however, Style, function and price that doesn’t too expensive, so we are the new

alternative for customers.

STP Analysis Segmentation We learn about customer’s behavior and we know that each group of

customers has different demand. To learn about it make us clearly know and know how

to make product to attract each group of customers. There are many people that have

difference purchasing behavior, even child, teen, or adult. And each of regions, each

occupation there has difference purchasing behavior too. So we learn what the real

customers by observe from their purchasing.

Target We make product suitable for every one but focus on group of working

people and student age of 20-30 and 30-40 from the observation, this group of people

prefer to buy the product such DécorPottery. We produce product in the several price

means that every people can buy its. We don’t have only pot but we have many produce

of pottery such as pot, pan for children, pottery dolls for décor home and garden.

Position We make product to different from others with fashionable idea we will

build image of product and service to difference with competitors. We hope our company

will be entering in the top 20 of Pottery Company in Thailand.

Marketing Mix Strategy

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Product Décor Pottery have product style and function that differ from other

pottery, so make sure that Décor pottery will be the best alternative of customers. Our

product is in the furniture category; even it is making from ceramics.

Price

Set up price of product is the important things for choose of product and relate

with psycho. The generally number of price that end with number 9 always attract the

customer and is the strategy that use spread in the present , by the way set up the price

must consider cost also for not loss. Generally sale of product the customers have right to

bargain so we must set up the high price for keep in reserve then not loss income and the

important the price must not too high and appropriate with the product or not, the most

attractive of the customers is the relate of product and price, so we will set up price over

the net cost about 15 % and can change if the price of raw materials change. The set up

price is the risk then we must take a chance If we set the high price must sure that our

product have good quality ensure post selling service too, in the others hand if we set the

law price we must think about how to get the profit too,it is the difficult but the advantage

is we can sell more and sure. Our price not high too much but not low to be poor it is

suitability.

Place

We choose appropriate location to find material and not too far from resource and

the place must safe which do not destroy the environment around and wide enough to

produce and not too deep for the convenient in transportation of supplier and the location

to produce must be locate for easy to see and remember which may be good for

customers for come to buy the product and we choose the place for produce the product

not far from our main retail shop for comfortable to transportation of Ayutthaya which is

the place near main resource material it is clay and the characteristic of the Ayutthaya

place is it wide and a lot of area and far from city and not close other place which will

have problem. We have show room in the front of factory for is way to sell also.

I the part of our retail shop will be locate at Jatujak garden market the reason that

we choose that because it is the place that a lot of people go to shopping all times and

will be the good way to sell if the product not too expensive. Generally Jatujak garden

market will have a lot of people come per day too much and give the exchange of money

for country too much. The product in the type of decorate home and ceramics certainly is

the people in the city always thinking Jatujak so Jatujak is the most interesting place that

will give the income for our company.

Promotion We have promotion for every festival

- Valentine

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- Christmas

- Halloween

- New Year

- Father and Mother’s day

For each fest we will create product style to suitable for the fest and have a

discount for customers who buy for 10 times.

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inves

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Déc

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Pott

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f th

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arket

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we

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pet

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and o

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arket

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busi

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s in

Thai

land a

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ver

y b

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s ar

e co

nce

rn a

bout

this

fac

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too,

even

the

com

pet

itor

of

us,

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know

and a

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awak

e to

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rn a

bout

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ket

ing f

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able

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us

for

along.

We

esti

mat

e th

at w

e co

nti

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y g

et

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pro

fit.

28

Technical Feasibility Study

Production and Operation Analysis Production Characteristic

Characteristic of our products are appearing different plant pot. The Super Potty has

difference from normal Plant pot products. We combine both modernism and stylish on

our products for choices of interior decoration both indoor and outdoor decoration. And

then our products have appropriate size of plant pot for useful space in your home. And

Our products have Multi-function in one for new interior decorator generation. Such as

Ash tray Plant Pot [Item No. P12805]

This unique design combines an ashtray with a plant pot. The pot sits on top of the

ashtray, concealing it both visually and aromatically.

29

We have 2 Size that are : Small , Large

And we have 5 color that are :Chic black, Pure white, Vanilla milk, Cupid Pink , Blue

sky

Price: Bath.

30

Umbrella Plant Pot [Item No. P12708]

This creative pot design allows rainwater from your umbrella to drain into the plant pot.

We have 2 Sizes that are: Small , Large

31

And We have 4 color that are: Rough Black, Cocoa, White , Cream

Price: Bath.

32

Light pot [Item No. P22604]

Modern pot for growing plants and herbs indoors. It uses LED lighting and can be

placed anywhere in the house.

We have 3 sizes that are: Large, Medium, Small

And we have 4 colors that are: Black , Brown, White, Blue

Price: Bath.

Self-Watering Plant Pot [Item No. P22813]

This self-watering plant pot’s main feature is a medical drip feed. This unique

characteristic

allows the plant to be nourished with water when needed.

33

We have 3 size that are: Large, Medium, Small

And we have 7 colors that are: Black, White, Green, Pink, Blue, and Violet.

Price: Bath.

34

Puzzle plant pot [Item No. P32114] When you feel tedious. You can play the Puzzle plant pot on your free time. This

product design for who has serious life.

This is the set of plant pot. You can separate buying. For each piece has different shape

and size. But all of Puzzle Plant Pot has a same height.

We have 5 colors that are: Blue, yellow Green, Pink, Orange

Price: Bath.

35

Roly -Poly Pot [Item No. P42208]

When plant need water Roly-Poly Pot is

slant to the right side. It can warn the

owner to pour water on the plant.

We have only one size and one color of

this type of Plant pot.

Price: Bath.

36

Dish Drip Plant Pot [Item No. P11312]

Great design that lets the water from your drying dishes drip into the plant pot and

water your flowers.

Price: Bath.

Production process Ceramics Particulate Processing

- Traditional ceramics are made from minerals occurring in nature : Products

include pottery, porcelain, bricks, and cement.

- New ceramics are made from synthetically produced raw materials : Products

include cutting tools, artificial bones, nuclear fuels, and substrates for electronic

circuits.

- The starting material for all of these items is powder.

37

Usual steps in traditional ceramics processing: (1) preparation of raw

materials, (2) shaping, (3) drying, and (4) firing. Part (a) shows the workpart during the

sequence, while (b) shows the condition of the powders

Preparation of the Raw Material for Traditional Ceramics - Shaping processes for traditional ceramics require the starting material to

be a plastic paste : This paste is comprised of fine ceramic powders

mixed with water.

- The raw ceramic material usually occurs in nature as rocky lumps, and

reduction to powder is the purpose of the preparation step in ceramics

processing.

Comminution Reducing particle size in ceramics processing by use of mechanical energy in

various forms such as impact, compression, and attrition. Comminution techniques are

most effective on brittle materials such as cement, metallic ores, and brittle metals. Two

general types of comminution operations:

1. Crushing

2. Grinding

1.1 Crushing Reduction of large lumps from the mine to smaller sizes for subsequent

further reduction

- Several stages may be required (e.g., primary crushing, secondary

crushing), the reduction ratio in each stage being in the range 3 to 6.

- Crushing of minerals is accomplished by compression against rigid

surfaces or by impact against surfaces in a rigid constrained motion.

Jaw Crusher : Large jaw toggles back and forth to crush lumps against a

hard, rigid surface.

38

Roll Crusher : Ceramic lumps are squeezed between rotating rolls.

1.2 Grinding , In the context of comminution, grinding refers to the operation of

reducing the small pieces after crushing to a fine powder.

- Accomplished by abrasion, impact, and compaction by hard media such

as balls or rolls.

- Examples of grinding include:

� Ball mill

� Roller mill

� Impact grinding

Ball Mill : Hard spheres mixed with stock are rotated inside a large cylindrical

container; the mixture is carried up the container wall as it rotates, and then

pulled back down by gravity for grinding action.

39

Roller Mill : Stock is compressed against a flat horizontal grinding table by

rollers riding over the table surface.

Ingredients of Ceramic Paste for Shaping � Clay (hydrous aluminum silicates) - usually the main ingredient

because of ideal forming characteristics when mixed with water.

� Water – creates clay-water mixture with suitable plasticity for

shaping.

� Non�plastic raw materials, such as alumina and silica - reduce

shrinkage in drying and firing but also reduce plasticity of the

mixture during forming.

� Other ingredients, such as fluxes that melt (vitrify) during firing

and promote sintering, and wetting agents to improve mixing of

ingredients.

Shaping Processes

� Slip casting : The clay-water mixture is a slurry.

� Plastic forming methods : The clay is plastic.

� Semi-dry pressing : The clay is moist but has low plasticity.

� Dry pressing : The clay is basically dry (less than 5% water) and has no

plasticity.

Slip Casting : A suspension of ceramic powders in water, called a slip, is

poured into a porous plaster of paris mold so that water from the mix is absorbed

into the plaster to form a firm layer of clay at the mold surface.

The slip composition is 25% to 40% water.

Two principal variations:

1.Drain casting - the mold is inverted to drain excess slip after a semi�

solid layer has been formed, thus producing a hollow product.

2.Solid casting - to produce solid products, adequate time is allowed

for entire body to become firm.

40

Sequence of steps in drain casting, a form of slip casting: (1) slip is poured

into mold cavity, (2) water is absorbed into plaster mold to form a firm layer, (3)

excess slip is poured out, and (4) part is removed from mold and trimmed.

Plastic Forming

� The starting mixture must have a plastic consistency, with 15% to 25% water.

� Variety of manual and mechanized methods.

1. Manual methods use clay with more water because it is more easily

formed

- More water means greater shrinkage in drying.

2. Mechanized methods generally use a mixture with less water so starting

clay is stiffer.

Plastic Forming Methods

1. Hand modeling (manual method)

2. Jiggering (mechanized method)

3. Plastic pressing (mechanized method)

4. Extrusion (mechanized method)

1.1 Hand Modeling : Creation of the ceramic product by manipulating

the mass of plastic clay into the desired geometry.

� Hand molding - similar only a mold or form is used to

define portions of the part geometry.

� Hand throwing on a potter's wheel is another refinement

of handcraft methods.

-Potter's wheel = a round table that rotates on a vertical

spindle, powered either by motor or foot�operated treadle.

41

-Products of circular cross�section can be formed by

throwing and shaping the clay, sometimes using a mold to

provide the internal shape.

1.2 Jiggering : Similar to potter's wheel methods, but hand throwing is

replaced by mechanized techniques.

Sequence in jiggering: (1) wet clay slug is placed on a convex

mold; (2) batting; and (3) a jigger tool imparts the final product

shape.

1.3 Plastic Pressing : Forming process in which a plastic clay slug is

pressed between upper and lower molds contained in metal rings.

� Molds are made of porous material such as gypsum, so when

a vacuum is drawn on the backs of the mold halves, moisture

is removed from the clay.

� The mold sections are then opened, using positive air

pressure to prevent sticking of the part in the mold.

� Advantages: higher production rate than jiggering and not

limited to radially symmetric parts.

1.4 Extrusion : Compression of clay through a die orifice to produce

long sections of uniform cross-section, which are then cut to required

piece length.

� Equipment utilizes a screw-type action to assist in mixing the

clay and pushing it through die opening.

� Products: hollow bricks, shaped tiles, drain pipes, tubes, and

insulators.

� Also used to make the starting clay slugs for other ceramics

processing methods such as jiggering and plastic pressing.

42

Semi-dry Pressing : Uses high pressure to overcome the clay’s low plasticity

and force it into a die cavity.

Semi-dry pressing: (1) depositing moist powder into die cavity, (2)

pressing, and (3) opening the die sections and ejection.

Dry Pressing : Process sequence is similar to semi-dry pressing - the main

distinction is that the water content of the starting mix is typically below 5%

� Dies must be made of hardened tool steel or cemented carbide to

reduce wear since dry clay is very abrasive.

� No drying shrinkage occurs, so drying time is eliminated and good

dimensional accuracy is achieved in the final product.

� Typical products: bathroom tile, electrical insulators, refractory

brick, and other simple geometries.

Clay Volume and Water Content � Water plays an important role in most of the traditional ceramics shaping

processes.

� Thereafter, it has no purpose and must be removed from the clay piece

before firing.

� Shrinkage is a problem during drying because water contributes volume

to the piece, and the volume is reduced when it is removed.

43

Volume of clay as a function of water content Relationship shown here

is typical; it varies for different clay compositions.

Drying : The drying process occurs in two stages:

� Stage 1 - drying rate is rapid and constant as water evaporates from the surface

into the surrounding air and water from the interior migrates by capillary action

to the surface to replace it : This is when shrinkage occurs, with the risk of

warping and cracking.

� Stage 2 - the moisture content has been reduced to where the ceramic grains are

in contact : Little or no further shrinkage occurs.

Typical drying rate curve and associated volume reduction (drying shrinkage)

for a ceramic body in drying .Drying rate in the second stage of drying is

depicted here as a straight line; the function is sometimes concave or convex.

Firing of Traditional Ceramics Heat treatment process that sinters the ceramic material

� Performed in a furnace called a kiln.

� Bonds are developed between the ceramic grains, and this is accompanied

by densification and reduction of porosity.

� Therefore, additional shrinkage occurs in the polycrystalline material in

addition to that which has already occurred in drying.

� In the firing of traditional ceramics, a glassy phase forms among the crystals

which acts as a binder.

Glazing : Application of a ceramic surface coating to make the piece more impervious

to water and enhance its appearance.

� The usual processing sequence with glazed ware is:

1. Fire the piece once before glazing to harden the body of the piece.

2. Apply the glaze.

3. Fire the piece a second time to harden the glaze.

44

Logistics Management

Ceramic Logistics ware offers a fully integrated logistics service. We

have a full team of logistics professionals dedicated to transporting our

products from factory to shop and to customers and made in information

technology, new systems and software can significantly help to improve

customer service and communications there are have a industry sites to

easy for customers take the order and to ensure that all our products reach

their destination in perfect condition and in a cost effective manner and the

truck that have a safe while transport products for maintain security of

goods and service and have timely notification of orders and shipping

requirements is fundamental.

45

Facility Management

Disposal of waste management

1. Then through the combustion products commonly used method is than

implanted in the area of filling or hire someone to be left outside, which will

pay the cost very reasonable which in fact can be used for back by new mix

and used machine in the sub-ground such as Jaw crusher, Hammer mill, Cone

crusher.

2. Dust from different process - dust from the grind process almost is often

very detail so we must to have effective dust trap system is dust corrector

system because dust is the pollution is very harmful to respiratory system.

Water treatment management

Ceramic factory that should be water treatment system because ceramic

industry that to used water in many production and sometime before let water out of

factory that will be passed in the factory such as cleaning the floor, cleaning the

machine because sometime they don’t have treatment system water that ware left out of

the factory will harm the environment.

46

Machine / Tools / Equipments

Multi-tank ball mill

The machine is used to mill glaze materials of several types and lab colorants.

Screening machine

Roller screening machines are mostly used in steel,metallurgical and chemical

industries.

Ceramic gold plating machine

The gold membrane coated ceramic or silver membrane Bright delicate, coating

speed, simple operation, equipment stability, and the production of high-end decorative

ceramic an indispensable prerequisite equipment.

47

Semi auto Jiggering Ceramic machine

Machine for Dinnerware producing forming machine jiggering type.

Grinding equipment, QGM grinding

The light pot mill mainly used for laboratory and small quantity manufacture.

The mill has function such as electromagnetism timing, timing grinding, flexible axes,

the axes sleeve can regulate.

Ceramic Cutting machine is suitable for decoration. It can be used for

cutting ceramics, grooving and beveling. The machine has many advantages,

such as small size,light weight, high efficiency, stable precision and low price. It

is easy to operate and move.It is an excellent machine for decoration and

construction corporations.

48

Ceramic brick making machine

1. Automatic ceramic brick making machine.

2. 40% lower electricity used.

3. Efficient, high output.

Ceramic metallization coating machine are applied to hardware, plastic,

ceramics, resin, glass and crystal.

Filter press system

Filter press with washing system without fear of often changing filter cloth or

slurry adhesion to cloth high effiency. A filter press is a liquid-solid separation

device used to reduce the volume and weight of a slurry waste or process stream by

separating liquid filtrate and solid filter cake.

49

Clay cutter

Clay mixing

Agitator : High – speed

50

Agitator : Low – speed

Hydraulic pump

Vacuum pump

51

Glaze spraying booth

Wet pan mill

Porosity test

52

Factory Location

Chaeng Wattana Bang Talat Pakkret Nonthaburi 11120

The factory will be located in this area because Nonthaburi is nearly Bangkok.

About transportation of raw material, we use a big truck. It’s easier than in Bangkok

that have a traffic jam for save cost of gasoline and time for transportation.

For second reason, from the map we can see that this location nearly Chatuchak the

biggest market. It is easy for present our product in this market for middleman or

transport a good to retailer.

53

Factory

54

Warehouse

Showroom Showroom in front of factory or side of factory

We use a modern layout and modern style to set the showroom for present our product

in front of factory because our product is suitable with a modern style decoration.

Middleman or retailer can see our product and easy to contact us in this place.

55

Retail shop

We plan to rent 2 blocks in zone decoration or ceramic and pottery at Chatuchak

Market. It’s for present and sale our directly to any customer. It is opportunity if there

are foreigner customers or big case of middleman interested in our product because

there are many kinds of customer at Chatuchak Market.

Red line zone is the zone that we want to rent but only 1-2 blocks because it’s zone

for decoration or ceramic and pottery.

56

Cost of investment

Building -Land 300,000.

-Factory 1,205,000.

-Shop 2,430,000.

Total 3,935,000.

Tools and Equipment -Oven 500,000.

-Hand Pottery 30,000.

-Decoration equipment 10,000

-Others 10,000

-Total 550.000.

Machine -Estruder 250,000.

Facilities -Furniture decoration 50,000.

-Product display 25,000.

Total 4,810,000

Investment Amount Depreciation Annual

Depreciation

Monthly

Depreciation

Building 1,205,000. 7/year 172,143. 14,345.25.

Oven 500,000. 4/year 125,000. 10,417.

Hand pottery 30,000. 4/year 75,000. 625.

Decoration 10,000. 4/year 2,500. 208.

Extruder 250,000. 5/year 50,000. 4,167.

Furniture 75,000. 5/year 15,000. 1,250.

Computer 25,000. 6/year 5,000. 417.

Total 2,095,000 377,143 31,429.25

58

Operating Cost

Raw material Cost Kaolin 300,000 baht/year

Color 110,000 baht/year

Stain 180,000 baht/year

Direct Labor Cost

Employees in the factory

Technician in manufacturing 2 persons

Modeller 2 persons

Painter 2 persons

General Staff 3 persons

delivery man 3 persons

Employees in the office and shop 3 persons

Total 15 persons

Expense

Wage for accountant 70,000 /year

Interest O/D 40,000 /year

Other expenses 60,000 /year

Overhead

Cost of utilities 285,000 /year

Transportation 35,000 /year

Administration Cost

Gas for kiln 350,000 /year

Telephone 18,400 /year

Manager’s salary 1,260,000/year

Total 2,708,400

59

Conclusion

From Technical analysis make the business clearly about cost of product. We

know competitors cost and know how to save cost but give quality product and get

some profit it can make us to know technical that uses in the project to the long term

run and prevent to lost profit. Technical analyses make us to know what we should use

to do the business and know the important of each of equipment.

Item Position Person Salary Total

1 Manager 7 15,000 105,000

2 Employees 5 10,000 50,000

3 Technician 7 6,500 45,500

4 Decorators 5 5,000 25,000

5 Delivery

Man

3 4,500 1,3500

Total 27 360,500

60

Financial Analysis

Income statement

Décor pottery Year 1 2 3 4 5

Income statement

(baht)

Beginning 2005 2006 2007 2008 2009

Sales 10,572,282 14,057,857 17,891,491 20,817,216 23,380,444

Computer industry 11,620,909 15,397,705 19,585,880 22,837,136 25,674,478

-Trade Discounts 1,162,091 1,539,770 1,958,588 2,283,714 2,567,448

Machine industry 141,830 249,904 330,248 329,742 341,768

-Trade discount (20%) 28,366 49,981 66,050 65,948 68,354

Product cost 5,626,459 7,494,013 9,540,159 11,089,052 12,448,592

-Computer industry 5,537,219 7,336,948 9,332,598 10,881,809 12,223,792

-Machine industry 89,140 157,064 207,561 207,242 214,801

Gross profit 4,945,823 6,563,845 8,351,332 9,728,165 10,931,852

Sales and service expense -Commission for customer -235,255 -117,627 -156,476 -199,161 -231,669

(1st year 2% next 1%)

-Commission for 1st purchase 3% 0 -116,546 -128,056 -97,522 -85,481

-Marketing -771,000 -1,025,638 -1,305,422 -1,518,495 -1,705,260

-Recreation -120,000 -159,632 -203,178 -236,342 -265,410

-Transportation -844,800 -1,267,200 -1,267,200 -1,689,600 -1,689,600

-Telephone -24,000 -31,926 -40,636 -47,268 -53,082

-Oil -36,000 -47,890 -60,954 -70,903 -79,623

-Trains -50,000 -50,000 -50,000 -50,000 -50,000

-Establishment company -150,000 0 0 0 0

-salary employees -1,632,000 -1,713,600 -1,799,280 -1,889,244 -1,983,706

-Machine depreciation -165,000 -165,000 -165,000 -165,000 -237,000

-Tool office depreciation -100,000 -100,000 -100,000 -100,000 -100,000

-Rent building -240,000 -240,000 -240,000 -240,000 -240,000

-Other -50,000 0 0 0 -2,000

Profit before the interest and the tax 572,768 1,528,786 2,835,131 3,424,629 4,209,021

-Interest expense 0 0 0 0 0

Interest before deduct tax 572,768 1,528,786 2,835,131 3,424,629 4,209,021

-Tax -171,830 -458,636 -850,539 -1,027,389 1,262,706

Net profit 400,938 1,070,150 1,984,592 2,397,240 2,946,315

-Dividend (40%) -160,975 - 428,060 - 793,837 - 958,896 - 1,178,526

-Earned surplus 240,536 642,090 1,190,755 1,438,344 1,767,789

Financial ratio

61

Year 1 2 3 4 5

Income 100% 100% 100% 100% 100%

Capital 53% 53% 53% 53% 53%

Gross earnings 47% 47% 47% 47% 47%

Earnings 4% 3% 11% 12% 13%

62

Décor pottery company

Balance sheet

Décor pottery Year 1 2 3 4 5

Income statement

(baht)

Beginning 2005 2006 2007 2008 2009

Asset Current Asset 4,000,000 2,996,265 4,345,789 6,363,960 8,373,228 10,034,630

-Cash and cash at bank4,000,000 1,758,775 2,700,363 4,269,829 5,936,607 7,297,963

-Account receivable 881,024 1,171,488 1,490,958 1,734,768 1,948,370

-Goods Remain 356,466 473,939 603,173 701,853 788,297

Fixed asset 1,885,000 1,620,000 1,355,000 1,090,000 1,545,000

-Machine depreciation 1,485,000 1,320,000 1,155,000 990,000 1,545,000

-Tools depreciation 400,000 300,000 200,000 100,000 0

Total Asset 4,000,000 4,881,265 5,965,789 7,728,960 9,463,228 11,573,630

Debtor and stockholder

Debt

Current liability 640,702 1,083,137 1,645,553 1,951,476 2,300,089 -Account payable 468,872 624,501 795,013 924,088 1,037,383

-���������� 171,830 458,636 850,539 1,027,389 1,262,706

Long-term debt 0 0 0 0 0

Total Debt 640,702 1,083,137 1,645,553 1,951,476 2,300,089

Stockholder Authorized capital stock 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000

Earnings surplus 240,563 882,653 2,073,408 3,511,752 5,279,541

Total of stockholder 4,000,000 4,240,563 4,882,653 6,073,408 7,511,752 9,279,541

Total of stockholder

and debtor 4,000,000 4,881,265 5,965,789 7,718,960 9,463,228 11,579,630

Financial ratio

Year 1 2 3 4 5

Current Ratio 4.68 4.01 3.87 4.29 4.36

Quick Ratio 4.12 3.57 3.50 3.93 4.02

Debt Ratio 0.13 0.18 0.21 0.21 0.20

D/E Ratio 0.15 0.22 0.27 0.26 0.25

ROA 8.21% 17.94% 25.71% 25.33% 25.44%

ROE 9.45% 21.92% 32.68% 31.91% 31.75%

63

Décor pottery company

Cash flow

Décor pottery Year 1 2 3 4 5

Income statement

(baht)

Beginning 2005 2006 2007 2008 2009

Cash Flows From operating activities

Earnings 400,938 1,070,150 1,984,592 2,397,240 2,946,315

Depreciation-machine 165,000 165,000 165,000 165,000 165,000 Depreciation-office tools 100,000 100,000 100,000 100,000 100,000

Adjust account receivable -881,024 -290,465 -319,469 -243,810 -213,602

Adjust goods remain -356,466 -117,472 -129,235 -98,680 -86,443

Adjust Account payable 468,872 155,629 170,512 129,074 113,295

Adjust expenditure remain 171,830 286,805 391,904 176,849 235,318

Net cash from operating activities 69,150 1,369,648 2,363,303 2,625,674 3,331,882

Cash Flows From investing activities

Invest Fixed asset -2,150,000 -792,000

Net cash from financing activities -2,150,000 -792,000

Cash Flows From financing activities

Dividends -160,375 -428,060 -793,837 -958,896 -1,178,526

Net cash from Financing activities -160,375 -428,060 -793,837 -958,896 -1,178,526

Net increase in cash and cash equivalents - 2,241,225 941,588 1,569,467 1,666,778 1,361,356

Cash and cash equivalents at beginning of the period 4,000,000 1,758,775 2,700,363 4,269,829 5,936,607

Cash and cash equivalent at end of the period 1,758,775 2,700,363 4,269,829 5,936,607 7,297,963

Décor pottery company 1 2 3 4 5 6

Balance Sheet(Baht) beginning 2005 2006 2007 2008 2009

EBIT 572,768 1,528,786 2,835,131 3,424,629 4,209,021

TAX(30%) - 171,830 - 458,636 - 850,539 - 1,027,389 -1,262,706

EBIT*(1-T) 400,938 1,070,150 1,984,592 2,397,240 2,946,315

Adjusting item not affecting Cash

Depreciation and amortization 265,000 265,000 265,000 265,000 337,000

+ (-) in working capital 1,644,437 - 907,090 - 1,455,755 - 1,703,344 - 1,312,789

Free cash flow - 4,000,000 2,310,375 428,060 793,837 958,896 1,970,526

Terminal Value 5,833,552

Free cash flow ( incl Terminal Value) - 4,000,000 2,310,375 428,060 793,837 958,896 7,804,078

NPV (wacc=20%) 1,900,573

IRR 38%

64

Risk analysis for business

Risk management

Identify

External risk

- The entrepreneur in the ceramic industry of Thailand still confronts with

competition problem all international especially the competition with China.

- Financial crisis of the United States of America that happens then financial

liquidity of worldwide affect to reduce the purchasing power of a consumer.

- World economy reduce most in round 20 year, from 3.9 -> 2.5% rates are left to

-0.45%.

- GDP of Thailand might increase 1-2.0 depend on the recovery of United

States of America, Europe and Japan.

- GDP of industry be down continually at year 2550= 6.2%, 2551=6.6% and

2552 =2-3.0%.

- Market of the ceramic is the market of the buyer then the buyer is influential

in bargain price of product because of in the market have more ceramic

producer.

- The ceramic industry is the one of market industry that is the cause of

problem about pollution both heat, dust, noise, polluted water, dregs

from the procedure of produce, mould plaster that expire, ceramic roller etc.

- The change of target group of customer.

- The disorder of political of Thailand which affect to requirement of

customer.

Internal risk

- Work inefficiency of employees.

- Attendance and nonattendance of employees which work by daily.

- The productions that break down approximately 5-10% of product those

produce in each time.

- Doing the marketing still as expected ineffectively.

- Employees sometimes they strike, died, or have accident etc.

- Dishonesty of employees.

- Distribution of product have problem on the way then the product have low

quality when the customer receive after that the company will get complain

and damage fame.

- High wage rate of employees both factory and shop.

65

The Five-Forces model of competition

Rivalry Among competing firms

-From the research in the Jatujak plaza find a lot of the pottery shop

but our pottery is locate at zone of decorate a house and a garden then not have

more affect for sale because in the Jatujak plaza have arrange the zone for each

types of product and normally a customer who want to come in shopping they often

go straight to seek a place that they want.

Potential entry of new competitors - This business is the interest of customer because it is the product to use

for decorate home or gift friend and low prices then may difficult to reserve the

new competitors.

Potential of development of substitute products -The pottery of our company is the new design then have more benefit

both decorate and souvenir which the benefits of these have other goods that can

use replace such as , house ornament , a souvenir that make from resin , plaster,

crystal etc.

Bargaining power of suppliers -The most of ceramic often have source of raw material at same place

then Suppliers have influential to bargain more than then the producers pottery must

gather into group for bargain the price of raw materials and this group can are the big

customer of supplies then the power for bargain price will easy.

Bargaining power of consumers -the gather into group of merchant pottery not only get benefits from

purchase low price of raw material but still make bargain price of customer reduce

because the group of merchant will set up middle price of product then every shop will

have same price. if the customer want to buy the beautiful product they can choose the

product from our company.

66

Risk Analysis

Risk Type Probability

-Financial crisis of the United States of America

that happens then financial liquidity of

worldwide affect to reduce the purchasing power

of a consumer.

Economic factors 15%

- -The entrepreneur in the ceramic industry of

Thailand still confronts with competition

problem all international especially the

competition with China.

Economic factors 15%

-World economy reduce most in round 20 year,

from 3.9 -> 2.5% rates are left to -0.45%.

Economic factors 10%

-GDP of Thailand might increase 1-2.0 depend

on the recovery of United States of America,

Europe and Japan.

Economic factors 10%

-GDP of industry be down continually at year

2550= 6.2%, 2551=6.6% and 2552 =2-3.0%.

Economic factors 5%

-Market of the ceramic is the market of the buyer

then the buyer is influential in bargain price of

product because of in the market have more

ceramic producer.

Social factors 5%

-The disorder of political of Thailand which

affect to requirement of customer.

Political factors 5%

- The change of target group of customer Social factors 5%

- Doing the marketing still as expected

ineffectively. Internal risk 5%

-The productions that break down approximately

5-10% of product those produce in each time. Internal risk 5%

-High wage rate of employees both factory and

shop.

Internal risk 5%

-Work inefficiency of employees.

Internal risk 5%

-Employees sometimes they strike, died, or have

accident etc.

Internal risk 5%

-Dishonesty of employees.

Internal risk 5%

67

-Distribution of product have problem on the

way then the product have low quality when the

customer receive after that the company will get

complain and damage fame.

Internal risk

5%

-Attendance and nonattendance of employees

which work by daily Internal risk 5%

-The ceramic industry is the one of market

industry that is the cause of problem about

pollution both heat, dust, noise, polluted water,

dregs

from the procedure of produce, mould plaster

that expire, ceramic roller etc.

Social factors 5%

How to reduce risk

Identify way to reduce the risk - Encourage the market in the country may be have the activity of the

marketing.

- Research and development new product or design to more beautiful and

luxuries to the customer in high level for avoid to competitive with the

product from China.

- Control the standard of product and reduce cost of capitals by emphasize

using energy compensate in the process of produce the product.

- Reuse, recycle the waste of factory then reduce costs of capital and save the

world also.

- Find the way to produce the high tech of ceramic.

- Train the employees for increase the knowledge in skill to work

- Have the insurance in organization for support the problem that will be

occur with employees.

- Planning and development about marketing to appropriate with economy.

68

Prioritize risk reduction

Risk Strategy

-Financial crisis of the United States of America

that happens then financial liquidity of

worldwide affect to reduce the purchasing power

of a consumer.

- Encourage the

market in the

country may be

have the activity of

the marketing.

- -The entrepreneur in the ceramic industry of

Thailand still confronts with competition

problem all international especially the

competition with China.

- Research and

development new

product or design to

more beautiful and

luxuries to the

customer in high

level for avoid to

competitive with

the product from

China.

-World economy reduce most in round 20 year,

from 3.9 -> 2.5% rates are left to -0.45%.

-Control the

standard of product

and reduce cost of

capitals by

emphasize using

energy compensate

in the process of

produce the

product.

-GDP of Thailand might increase 1-2.0 depend

on the recovery of United States of America,

Europe and Japan.

-GDP of industry be down continually at year

2550= 6.2%, 2551=6.6% and 2552 =2-3.0%.

-Market of the ceramic is the market of the buyer

then the buyer is influential in bargain price of

product because of in the market have more

ceramic producer.

-Find the way to

produce the high

tech of ceramic.

-The disorder of political of Thailand which

affect to requirement of customer.

-Encourage the

market in the

country may be

have the activity of

the marketing.

- The change of target group of customer - Research and

development new

product or design to

more beautiful and

luxuries to the

69

customer in high

level for avoid to

competitive with

the product from

China.

- Doing the marketing still as expected

ineffectively.

- -planning and development

about marketing to

appropriate with economy.

-

-The productions that break down approximately

5-10% of product those produce in each time.

-High wage rate of employees both factory and

shop.

-Work inefficiency of employees.

-Train the

employees for

increase the

knowledge in skill

to work

-Employees sometimes they strike, died, or have

accident etc.

-Have the insurance

in organization for

support the problem

that will be occur

with employees.

-Dishonesty of employees.

-Distribution of product have problem on the

way then the product have low quality when the

customer receive after that the company will get

complain and damage fame.

-planning and development

about marketing to

appropriate with economy

-Attendance and nonattendance of employees

which work by daily

-Have the insurance

in organization for

support the problem

that will be occur

with employees.

-The ceramic industry is the one of market

industry that is the cause of problem about

pollution both heat, dust, noise, polluted water,

dregs

from the procedure of produce, mould plaster

that expire, ceramic roller etc.

-Reuse, recycle the

waste of factory

then reduce costs of

capital and save the

world also.

70

Actions

Continuous monitoring of risk containment tasks

- Have to arrange the schedule for check the risk in every week which will

know that how much we have the % of increase or reduce of risk.

This is the example that our company use to continuous monitoring risk

Risk #

Risk Items

Last Week

Rank #

Probability

[0-1]

Loss

[1-10]

Risk Exposure

Rank Plan #

Mitigation

Status

1

2

3

71

Summary

DécorPottery decide to do learn about this product because we interested in the

decorative. Nowadays there are many places that need to décor; however the hotel,

coffee shop, restaurant and others, plant pot are the popular equipment that they

consider. Company that produce the pot are quite a bit, some of them are the export

company especially pot, not including others Ceramics Company that have pot in their

product. Indicated that there are many competitive markets, to be the new competitor is

difficult, so we create the idea that different from others and interesting, high class and

valuable but doesn’t expansive, because we make it by ceramics. There are many

companies that produce plant pot, and there is little company to produce the look

strange product. That is the initiative of inspiration to create idea to learn about the

feasibility of this product. DécorPottery not create the ordinal product, doesn’t ordinal

plant pot, not in the garden, not only show and plant, but we have more function in the

modern style. Generally we plant in the pot and take water to them, so we think” How

great if plant pot watering themselves” and “How great if plant pot not only for plant”.

We learn about to produce and learn about product History. The pottery has

begun to develop since 1 reign times by ordering and most design are the Thai painting

and later have modifying to suit the requirement of a Thai comes to continually and

begin import the pottery from the foreign such as Japan, Chinese and Europe after that

Thai has permitted to promote industries of pottery both of sale to export and the

development employees of production then have more industry and the exporting grow

up also. Type of pottery can separate from the kind of material. Generally size of the

pot will use since 6 inch (diameter) 8 inch 10 inch until 12 inc if is baked clay size pot

will should not exceed 12 inch. The pottery separate follow procedure

1. The ordinary stand pottery is standard pot which the pot that have the width,

narrow buttocks by has the wideness of the diameter equals to the height or

the depth of the pot uses to grow the tree in generally.

2. The short pot (Azalea Pots) the character resembles pot standard but will

have the a little depth.

3. Tray pot (Pans) is the pot buttocks shallow like frying pan have light weight

dislocates convenient and like to use grow the tree collects such as the

Bonsai.

4. The pot hangs can use other material to do such as glass bottle, bottle pet of

beverage recycle or other.

5. Baked clay pot which easy to evaporate and dry fast more plastic pot, glass

or metal.

To do a business, we have to consider about marketing. Pottery businesses are

popular in the north of Thailand, so we have to do market analysis for study customers

behavior, competitor’s advantages or every thing that important for business. Décor

Pottery is SMEs business, we specify customers who interesting in fashionable idea

product such student and workers which style, function of product that become the new

alternative for customers. To do a business we have to consider about political policy

such as Free trade Area policy, environment protect law, and pollution, community

healthy, Business Zone, Economic status of Thailand is the important thing for us to

consider, occupation, population revenue; these are the factors that influence to

purchasing power. To buy the material we have to consider that this economic status,

sometimes material is high price it’s may be result to the cost of our product. Social and

environment is the one of important think that we have to consider. As we know to

72

build the company we must have responsibility to social, should not be damage the

social and environment. Technology, this factors is important too because machine and

many equipment we have to use technology. Because of this business is concentrate

about technology. And the important we have to do sale estimated to ensure our product

income and make sure we will have profitability.

The Super Potty has difference from normal Plant pot products. We combine

both modernism and stylish on our products for choices of interior decoration both

indoor and outdoor decoration. And then our products have appropriate size of plant pot

for useful space in your home.

Ceramics Particulate Processing

Traditional ceramics are made from minerals occurring in nature and new ceramics are

made from synthetically produced raw materials

Logistics Management

We have a full team of logistics professionals dedicated to transporting our products

from factory to shop and to customers and made in information technology, new

systems and software can significantly help to improve customer service and

communications there are have a industry sites to easy for customers take the order and

to ensure that all our products reach their destination.

Facility Management

1. Disposal of waste management

2.Water treatment management is ceramic industry that to used water in many

productions and sometime before let water out of factory that will be passed in

the factory.

We plan that we will have the income continuously through period of five years

we have to research the data of price machine and even true price of area and we bring

data of financial to do the financial statement for analyze and can manage with the

situation both Balance sheet, income statement and cash flow and we got summarize

that in each year we can sell average 17,343,850 baht/year then the net profit average

7,214,203.4 baht/year.

For Risk of Company

External – the ceramic industry in Thailand still confront with the competitions problem

and economy about GDP.

Internal – Employees problem and accident of product during produce and sell.

The Five-Forces model of competition

- Rivalry Among competing firms = although have more shop at Jatujak but it

arrange the zone then the customer easy to find our shop.

- Potential entry of new competitors = this business is the interest now because

customer use to decorate home and gift friend.

- Potential of development of substitute products = others goods that can use

replace such as the product that make from resin, plastic, crystal etc.

- Bargaining power of suppliers = Create the group of producers potter for

bargain the suppliers.

- Bargaining power of consumers = set up standard price among group of

producers pottery.

Risk Analysis

- Economics is the highest risk of our company next is social, internal and

political respectively.

The way to reduce risk

73

Do the adaptation from internal company, develop labor or employees for

maintain production standard and give insurance for employees and use the strategy,

reduce reuse recycle, for decrease production capital, research new market and develop

the product for follow the requirement of customers after that have to arrange the

schedule for check the risk in every week which will know that how much we have the

to increase or reduce of risk.

Decor pottery is the new generation company we created new design and new

life to people related to our concept that “Fashionable design, fashionable life by décor

pottery”.

74

Bibliography.

http://www.ntc.ac.th/vic/trade1.html (Date 22/11/2009)

http://app.eng.ubu.ac.th/~edocs/f20060804Suriya29.ppt(Date 22/11/2009)

http://www.imerys-ceramics.com/TextsMarket.asp?I1 ID=2&I2 ID=2&I3 ID=13&I4

ID=8 (Date 02/01/2010)

http://www.thaiceramicsociety.com/ts_waste.php (Date 18/01/2010)

http://www.duudee.com/component/option,com_fireboard/Itemid,33/func,view/id,825

4/catid, 524/ (Date 22/01/ 2010)

http://www.jiraphantrading.com/?name=knowledge&file=readknowledge&id=3

(Date 23/01/ 2010)

http://www.perfect-pottery.co.th/ (Date 29/01/ 2010)

http://www.pscmceramic.com/product.htm (Date 04/01/ 2010)

http://www.jiraphantrading.com/index.php?name=view&category=32

(Date 04/01/ 2010)

http://www.alibaba.com/showroom/ceramic-machine-showroom.html

(Date 06/01/ 2010)

http://school.obec.go.th/mclschool/std/6.2/bee1/16.html (Date 01/02/ 2010)

http://advisor.anamai.moph.go.th/conference/TQM/market.ppt (Date 07/02/ 2010)

75

APPENDIX

1.

76

Name: MissWorazana Horprayoon

Age: 21 years

Marital Status: Single

Nationality: Thai

Religion: Buddhism

Permanent Address: 333 Moo 1, Tumbon TaSood,

Ampour Muang, Chiang Rai 57100

Telephone Number: 083-1950814

E-mail address : Whokkrin@hotmail.com

2.

Name: Angkana Nantachai

Age: 21 years

Marital Status: Single

Nationality: Thai

Religion: Buddhism

Permanent Address: 333 Moo 1, Tumbon TaSood,

Ampour Muang, Chiang Rai 57100

Telephone Number: 085-8638403

E-mail address : ang_ninew@@hotmail.com

3.

Name: Akepailin Wainum

77

Age: 21 years

Marital Status: Single

Nationality: Thai

Religion: Buddhism

Permanent Address: 333 Moo 1, Tumbon TaSood,

Ampour Muang, Chiang Rai 57100

Telephone Number: 081-0795953

E-mail address : i_moo_am@hotmail.com

4.

Name: Tanyalak Ruamtham

Age: 21 years

Marital Status: Single

Nationality: Thai

Religion: Buddhism

Permanent Address: 333 Moo 1, Tumbon TaSood,

Ampour Muang, Chiang Rai 57100

Telephone Number: 089-4341034

E-mail address : di-nam@hotmail.com

5.

Name: Nitra Nilsawit

Age: 22 years

Marital Status: Single

Nationality: Thai

Religion: Buddhism

Permanent Address: 333 Moo 1, Tumbon TaSood,

Ampour Muang, Chiang Rai 57100

Telephone Number: 084-0419721

E-mail address : Too_tid_ti@hotmail.com 5031207144

6.

Name: Preeyanee Kityanurak

78

Age: 21 years

Marital Status: Single

Nationality: Thai

Religion: Buddhism

Permanent Address: 333 Moo 1, Tumbon TaSood,

Ampour Muang, Chiang Rai 57100

Telephone Number: 085-0382213

E-mail address : Niic_@msn.com

7.

Name: Suppachet Simma

Age: 22 years

Marital Status: Single

Nationality: Thai

Religion: Buddhism

Permanent Address: 333 Moo 1, Tumbon TaSood,

Ampour Muang, Chiang Rai 57100

Telephone Number: 084-1770620

E-mail address : jack_kajeey@hotmail.com