Taste it, Love it

Herbal Ice Cream

By

Hi Company

Preface

Nowadays most people are weaker than before because they eat unhealthy food

so, we produced herbal ice-cream such as ginger, chili, lemongrass, and so on. Those

are made by Thai herb. They are easy to find in Thailand. Although herbal ice-cream is

a new business in Patong Beach, Phuket but our company thinks herbal ice-cream is

interest for tourists people especially more internal tourism who now, they love to

travel in Phuket and interest in healthy increasingly. We think herbal ice-cream is more

well-known and make profit for my company certainly.

Hi Company

Table of Contents

Chapter 1: Introduction

- Background and Significance of the Project 1

- Project objectives 5

- Benefits of project 5

- Overview of Hi Company 6

Chapter 2: Industry Profile

- Nature and Situation of Industry (Product in General) 7

- Vision and Mission 9

- Strategy of Hi Company 10

Chapter 3: Market Feasibility Study

- Market Analysis 11

- Marketing Mix Strategy 18

- Sale Forecast / Profit Estimation 23

- Conclusion 26

Chapter 4: Technical Feasibility Study

- Production and Operations Analysis 27

- Management Analysis 54

Chapter 5: Financial Analysis

- Profit/Loss Statement 70

- Balance Sheet 75

- Cash Flow 80

Chapter 6: Risk Management 85

Chapter 7: Summary 89

Hi Company Member 91

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Herbal Ice Cream

Chapter 1

Introduction

Background and Significance of the Project Nowadays most Thai people are weaker than before because they eat unhealthy

food including any junk food such as Hamburger, Donut which full of fat and Thai government are interested in the healthy food and promoted it as advertising on television or notice board but it is not interesting for them. They still addict these unhealthy foods and make them are unhealthy previously. My company thinks to solve this problem so we think to produce a product which everybody likes to test it and love it. We produce the product which is herbal ice-cream as ginger, galingale, lemongrass, mint etc. Those are made by Thai herbs. They are easy to find in Thailand.

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When Charles I of England visited France in the 1600s, he was served frozen milk. He loved it so much, he asked the French chef who served it to him to sell him the

The story of ice cream begins a long, long time ago in a most beautiful place. The story of ice cream begins over 3,000 years ago in China. Lots of cool things were invented in China. Umbrellas, glasses and fireworks were all invented in China but the tastiest and coldest Chinese invention is snow ice cream. The Emperors of China were the first people, we know about who were lucky enough to get to eat snow ice cream. Their cooks mixed snow and ice from the mountains with fruit, wine and honey to make a tasty treat for their rulers to enjoy when they wanted to relax.

How the Romans came up with the idea of making snow ice cream we do not know. But what we do know is that in 62 A.D. the Roman Emperor Nero wanted to eat snow ice cream so badly he sent slaves up to the mountains to bring back snow and ice so his cooks could make it for him. Nero's cooks mixed the ice and snow the slaves brought back with nectar, fruit and honey and then Nero ate it.

In 1295, Marco Polo, a great adventurer, returned from China to Italy with a new recipe for making snow ice cream. His recipe called for mixing yak milk into snow in order to make it creamy. The idea of mixing a mammal's milk into snow ice cream caught on and soon the rich people of Italy were enjoying frozen milk.

In 1533, Catherine de Medici of Florence, Italy became the Queen of France when she married the French king, Henry II. One of the things she took with her when she moved from her home in Italy to her castle in France was her recipe for making frozen milk. Soon many of the cooks in France were making the delicious treat. One French chef opened a shop to sell the tasty treat. He was the first cook to add flavors like chocolate and strawberry to the frozen milk.

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http://webinstituteforteachers.org/~cbmallare/History1.htm

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recipe. Charles I took the recipe back to England with him and the rich people of England began to eat the delicious cold dessert.

In 1700, Governor Bladen of Maryland, who was from England, served ice cream to his guests. Seventy-six years later, the first ice cream parlor in America opened in New York City.

Dolly Madison, the president's wife loved ice cream so much, she served it to her White House guests in 1812. In 1843, an American woman named Nancy Johnston invented the hand-cranked ice cream freezer, which made making ice cream easier. In 1851 Jacob Fussel opened the first ice cream factory in the United States of America in Baltimore, Maryland. He sold his ice cream from a wagon. In 1899, August Gaulin, who lived in France, invented the homogeniser. This invention helped give ice cream a really smooth texture. In 1902, August Gaulin invented a new kind of ice cream freezer that helped make ice cream freeze faster.

In 1903, Italo Marchiony, a man who sold ice cream from a pushcart he pushed through the streets of New York City, invented the ice cream cone and patented his idea. He invented the waffle cup because he was tired of people walking off with or breaking the glasses he used to serve ice cream from his pushcart.

A year later in 1904, E.A. Hamwi introduced the waffle cone at the St. Louis World Fair. People say he began making the waffle cones when an ice cream vendor at the fair ran out of bowls.

The closing of bars that sold wine and beer in 1919 led to the opening of many ice cream parlors in the United States. The more Americans ate ice cream the more they wanted to eat ice cream. This demand for ice cream led to the invention of the first chocolate covered ice cream bar. The first chocolate ice cream bar was called the I-Scream Bar but later its name was changed to the Eskimo Pie. You can buy an Eskimo pie at the grocery store if you want to find out what it tastes like. You can also buy a Good Humor Bar which was invented in 1920 and was the first ice cream sold on a stick. But if you're like me, you'll head to Baskin-Robbins, which first opened in 1946 in California, and buy a scoop of Cookies 'N Cream which is made with real Oreo cookies. This ice cream flavor was invented in 1983. Others like Chocolate Chip Cookie Dough have been invented since 1983 but Cookies 'N Cream will always be my favorite. Of course, vanilla ice cream with honey on top is also very good. I'm so glad someone in China decided to mix snow and ice with honey and that now even poor people like me can afford to eat tasty frozen treats each and every day of the week, just like Mr. Baskin and Mr. Robbins intended.

2Ice cream can be mass-produced and thus is widely available in developed parts of the world. Ice cream can be purchased in large cartons (vats and squrounds) from supermarkets and grocery stores, in smaller quantities from ice cream shops, convenience stores, and milk bars, and in individual servings from small carts or vans at public events. In Turkey and Australia, ice cream is sometimes sold to beach- 2

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

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goers from small powerboats equipped with chest freezers. Some ice cream distributors sell ice cream products from traveling refrigerated vans or carts (commonly referred to in the US as "ice cream trucks"), sometimes equipped with speakers playing children's music. Traditionally, ice cream vans in the United Kingdom make a music box noise rather than actual music.

Mrs Marshall's Cookery Book, published in 1888, endorsed serving ice cream in cones, 3but the idea definitely predated that. Agnes Marshall was a celebrated cookery writer of her day and helped to popularise ice cream. She patented and manufactured an ice cream maker and was the first person to suggest using liquefied gases to freeze ice cream after seeing a demonstration at the Royal Institution.

Reliable evidence proves that ice cream cones were served in the 19th century, and their popularity increased greatly during the St. Louis World's Fair in 1904. According to legend, at the World's Fair an ice cream seller had run out of the cardboard dishes used to put ice cream scoops in, so they could not sell any more produce. Next door to the ice cream booth was a Syrian waffle booth, unsuccessful due to intense heat; the waffle maker offered to make cones by rolling up his waffles and the new product sold well, and was widely copied by other vendors.

Moreover, 4 Phuket is the biggest island in Thailand, located in the Andaman

Sea of southern Thailand. The island is mostly mountainous with a mountain range in the west of the island from the north to the south. The mountains of Phuket form the southern end of the Phuket mountain range, which ranges for 440 km from the Kra Isthmus. The highest elevation of the island is Mai Thao Sip Song (Twelve Canes), at 529 m above sea level.

One of the most popular tourist areas on Phuket is Patong Beach on the central western coast, perhaps owing to the easy access to its wide and long beach. Most of Phuket's nightlife and its cheap shopping is located in Patong, and the area has become increasingly developed. Patong means "the forest filled with banana leaves" in Thai. Other popular beaches are located south of Patong. In a counterclockwise direction these include Karon Beach, Kata Beach, Kata Noi Beach, and around the southern tip of the island, Nai Harn Beach and Rawai. To the north of Patong are Kamala Beach, Surin Beach and Bang Tao Beach. These areas are generally much less developed than Patong, and sought out by individuals, families and other groups with a preference for more relaxed and less crowded environs than Patong. There are many islands to the southeast, including Bon Island, just a short boat trip away. There are several coral islands to the south of Phuket, the Similan Islands lie to the north west, and Phi Phi Islands to the south east. Islanders engage in a lively tourist trade, catering to snorkellers and scuba divers.

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"The Ice House - ice trade and ice cream". http://www.canalmuseum.org.uk/ice/marshall.htm. Retrieved 17 November 2009. 4

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

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According to Thai herb, 5

Ice cream is frozen dessert especially it is a popular dessert in summer because it is cold and sweet in order to makes many people feel fresh when they eat it.

many herbs and spices used in Thai cuisine have beneficial medicinal properties such as Chili, an erect, branched, shrub-like herb with fruits used as garnishing and flavouring in Thai dishes. There are many different species. All contain capsaicin, a biologically active ingredient beneficial to the respiratory system, blood pressure and heart. Other therapeutic uses include being a carminative and anti flatulence agent, and digestant. Ginger, is an erect plant with thickened, fleshy and aromatic rhizomes. Used in different forms as a food, flavouring and spice. Ginger's rhizomes contain a 1-2% volatile oil. Ginger's therapeutic uses are as a carminative, antinauseant and antiflatulence agent and so on. We also select raw material which are believable and no chemical.

6From research of ice-cream consumption shows 70% of people who eat frozen dessert around the world so, it can adapt and apply into each nationality miraculously in order to make ice cream becomes special dessert of many people in the world. The strength of this business is ice-cream has well known for a long time especially foreigners. Moreover it has been strong network since younger to older people so, it makes this product can increase market easily including make a lot of profit. About in Thailand, hot zone located, is good location where can sell ice-cream all the year. You can see illustration below. The table shows the grow of ice-cream market in Thailand.

Table of Ice-cream Market in Thailand Table 1. 1 Ice cream Market in Thailand

Value Year 2005 Year 2006 Year 2007 Year 2008 Premium Market

1,000 1,200 1,600 1,800

Mass Market 8,000 8,200 8,265 8,456 Lower Market 850 900 950 1,100 Total 9,800 10,300 10,815 11,356

Reference: Researching Department of Krung Thai Bank

By the way, consider ice-cream market researching. Thailand is high and appropriate market for ice cream business. In fact, ice cream market has increase 15-20% per year. From many researching you can see that ice-cream which is a homemade style is still popular as

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http://www.northernthailand.com/cm/recipes/thai-recipes/herb.htm 6

http://www.uniserv.buu.ac.th/forum2/topic.asp?TOPIC_ID=2513

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7In 1997 Kasikorn researching shows 14% of people who are in Bangkok, Thailand like ice cream which is made from ice cream homemade because it is delicious, not expensive and easy to buy. From these reasons, it makes Ice-cream Home-made is not famous but it is delicious and can enter into market easily. 8Ice-cream premium market is more expand market and makes many people eat ice cream increasingly. About Thai customer behavior, they like to sit for eating ice cream at the shop more than walking to eat. Many investors suppose ice-cream hand-made will increase 40% per year or 10 % of ice cream premium market. 9

Because of these reasons, shows that ice-cream market can grow

From AC Nissan in Thailand shows 3-4% of the grow of ice-cream from last year or 4,500 million baht and now in 2010 suppose ice-cream market is going to grow more than last year because Thailand Economic will be good than before.

continuously so, it is a good business for investing. 10

- Thailand located in hot zone so, makes people can eat ice-cream all the year

Although there are many factors which are instable but it can not impact to Thai economics by following:

- Thai Ice-cream industry has standard quality in the world and Thailand has advantage about geography which makes it becomes center of Asian an export to any country.

Project Objectives

1. To study how to gain profits of business 2. To study customer behavior of Herbal Ice cream 3. To study about environment of the location 4. To study market of Herbal Ice cream 5. To study how to use the strategies in each situations

Benefits of Project

1. After 5 years, we will gain profit 10% 2. The customers are well known Herbal Ice cream and word of mouth 3. Establish the first Herbal Ice cream shop in Patong beach (popular place) 4. Well known about the information of competitors 5. Use the strategies to appropriately

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http://www.nstrubi.com/webboard/view.php?No=21 8 http://www.manager.co.th/business/ViewNews.aspx?NewsID=9470000066552 9

http://www.posttoday.com/business.php?id=84158 10

http://www.cb.ktb.co.th/prod/brnew.nsf/0/89ab1e5e66a1e9e247256fd400307411?OpenDocument

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Definition Project

Analyzing Risk

Production Stakeholders

Future Plan

No problems

Amending Problems

Financial

Overview of Hi Company

Introduction

Strategic (4 P’s)

Planning

Resources Managing

Verifying

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Chapter 2 Industry Profile

Nature and Situation of Industry (Product in General) The four requisites is important necessary for daily life. Food, an important thing for psychology, makes them are strong but if you eat unhealthy food, you will be weak and unhappy. Nowadays there are many disease which come from customer behavior especially eating behavior such as obesity, diabetes, heart disease etc. 11From research of Public Health Department in 2007 show the average of people who work in office in Bangkok are paunchy is 69.7% and it divide into male and female is 50.9% and 72.5% respectively. Thailand was voted one of the World’s Top 10 high obesity countries. From researching shows Thai people especially people who live in town is fat or the average is 15% because they eat less vegetable and more junk food. The illustration shows customer behavior and type of food about people who are over 6 years in 2005. From the graph below shows Thai people like to eat high fat food, meal, soft drink or beverage that is sweet are the average is 83.3%, 97.4% and 71.7% respectively. It shows numeral is high and impact to healthy directly.

Reference: Office of the National Statistics in 2005 Because of many disease come from customer behavior and many people have any problems about health more than before. 12

Herbal ice-cream is a choice for people who pay attention about their health. Its taste is good and healthy. In addition about raw material comes from

From research of taking care health and daily life of customer behavior of WPP Group in 2009 shows many people around the world pay attention about their health increasingly before they are sick including taking care their mind. The average of Thai people is 77% of paying attention about health. They exercise and eat health food such as fruit and vegetable increasingly.

13Thailand where is alive with herb. About geography is appropriate for many herbs which can make medicine or other product efficiently and no accidental. About raw material, we can find easily within country so, it can make a lot of profit for our business which is interest for investment. Because this business uses low cost but it can up selling including there are fewer competitors which don’t stress seriously.

Location, an important thing for business, should be a place where close customer: customer can buy your product easily, good transportation: to carry product quickly, good utility: a place should have electricity, water supply and

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http://www.thaihealth.or.th/node/4897 12 http://www.bangkokbiznews.com/home/detail/business/research/20090828/72828 13

http://www.ajingdi.com/index.php?type=content&c_id=2957&ct_id=53650

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telecommunications and so on. So, we choose Patong Beach, 14Phuket where is Thailand’s a largest is lands (550 square kilometers/212 square miles). Phuket is a civilization province. The major source of income come from 5 categories which are tourism - More than ten year, that this industry has become the biggest earner for Phuket, and continues to grow. There are the visitors from Asia and the wider western world more than 3 million that come to Phuket and growing up every year, mining, agriculture (rubber tree) and fishery. The table below shows you about internal tourism in Puhket in 2006-2007.

Internal tourism in Phuket

Table 2.1 Internal Tourism in Phuket

Type of Data January - December 2007 2006 ∆ (%)

Visitor 5,005,653 4,499,324 +11.25 Thai 1,722,243 1,616,545 +6.54 Foreigners 3,283,410 2,882,779 +13.90 Tourist 4,726,693 4,317,312 +9.48 Thai 1,566,344 1,489,460 +5.16 Foreigners 3,160,349 2,827,852 +11.76 Excursionist 278,960 182,012 +53.26 Thai 155,899 127,085 +22.67 Foreigners 123,061 54,927 +124.04 Average Length of Stay (Day) 4.71 4.52 - Thai 2.96 3.07 - Foreigners 5.57 5.29 - Average Expenditure (Baht/Person/Day) Visitor 4,186.70 3,937.98 +6.32 Thai 2,835.45 2,645.91 +7.16 Foreigners 4,551.50 4,343.09 +4.80 Tourist 4,210.25 3,954.18 +6.48 Thai 2,858.54 2,663.44 +7.33 Foreigners 4,565.74 4,349.38 +4.97 Excursionist 2,311.05 2,199.63 +5.07 Thai 2,150.43 2,014.17 +6.77 Foreigners 2,514.52 2,628.75 -4.35 Revenue (Million Baht) Visitor 94,239.52 77,595.88 +21.45 Thai 13,567.65 12,444.87 +9.02 Foreigners 80,671.87 65,151.01 +23.82

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http://phuketindex.com/travel/phuket-in-brief/general-information.htm

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Table 2.2 Accommodation establishments

Type of Data January - December 2007 2006 ∆ (%)

ACCOMMODATION ESTABLISHMENTS Establishments 628 570 +10.18 Rooms 37,543 34,297 +9.46 Occupancy Rate (%) 65.82 60.69 +5.13 Average Length of Stay (Day) 3.70 3.64 +0.06 Number of Guest Arrivals 4,005,090 3,794,367 +5.55 Thai 1,072,586 1,065,290 +0.68 Foreigners 2,932,504 2,729,077 +7.45

Reference:

Form table of internal tourism in Phuket, you can see that each year there are traveler increasingly especially foreigner who almost people want to go Patong Beach when they visit to Phuket because

http//www.tat.or.th/.../20/January-December%202007%20Phuket.xls

Recommend: In 2007, the average of expenditure by researching of traveler who come to travel in Phuket but not include travelling expenses and some expenses as accommodation expenses, food and beverage, these 2 expenses depend on customer index. Travelling expenses may depend on gasoline cost and so on. ** Foreigner travel mainly by Singapore Yacht on holiday.

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15 http://www.thaitambon.com/Tambon/ttrvlist.asp?ID=830202

Patong Beach is a famous travel place in Phuket and here are comfortable with facility such as accommodation, guide tour, supermarket, restaurant etc. Hi Company Vision

We will pay back to our Account Payable within 5 years and gain profit to maximum. Hi Company Mission 1. To choose the best quality equipment and product. 2. To keep standard recipe. 3. To check and maintain equipment to ready to use. 4. To train employees seriously to ready to serve 5. To make atmosphere as your home 6. To support promotion or discounts on holiday

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Strategy of Hi Company By the way, we choose to invest in Thailand where there are many foreigner

travelers to visit here. Our business is herbal ice-cream including herbal juice and herbal bakery. (Horizontal Integration) Why do we choose this business? Because we think herbal ice-cream is new product for Thai people and we hope our customer are happy with our ice-cream including atmosphere around our shop where are decors with Modern style smoothly so it makes customers feel comfortable like their home. It located in Patong Beach, Phuket. From researching of table of internal tourism in Phuket, you can see that people who visit to Phuket are mainly foreigners who like to eat ice-cream or average of quantity of frozen dessert is 70%. In addition location is appropriate for selling herbal ice-cream which is different from competitors and we are the fist investor who sells the kind of product at here (Market Development). Moreover if we have some problems, we will solve the problems by regroup through cost and asset reduction (Retrenchment).

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Figure 3.1 HACCP System

Chapter 3 Market Feasibility Study

Market Analysis General Environment Analysis Political & Government During the recover of current business situation, the government in every country try to support their own business same of Thailand government, they try to support SME business, OTOP product and processing agriculture product. 16The government attempt to promote tourism together with product that can attract many tourists to buy product and its help to create the new market distribution at the same time for profitable for SME business that while opening. Furthermore, doing business have to emphasize on trade law too such as the certification of hygiene and quality of food, the certification of hygiene checking must allow from inspection agency recognized and Committee Food and Drug Administration only. But now, 17the way of checking is easier by checking pass the department of Medical Sciences (Division of Food and Science Center of the 12) was also a Research Institute of Science and Technology of Thailand food that provides the checking service.

The analysis of ice-cream market,

This certification can enhance the level of product, guarantee safety including protects the consumer. Economic

Market value and growth prospects are higher every year. 18More than that market value is high to move more than 10,000 million baht in the last 2-3 years. Main reason of profit makes ice-cream more interest in the perspective of investor both Thai and foreign. From Kasikornthai research center, they analyze ice-cream market. That every summer ‘

16 http://

Ice Cream' is one of those products hit a circulation high in this period. Expected value of the ice cream market will grow continuously. Also, if anyone looking for overseas markets, exporting ice-cream business is to interest. In the period 2-3 years ago. Comparing with the past, the expected exporting of ice cream is the continued growth also matters. Ice-cream business is very interesting because of Thailand has boosted the number to become a

www.kobsak.com 17

http://www.ismed.or.th 18

http://www.thailandrestaurantnews.com, starting ice-cream Home made business Book

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hub to export ice cream in this region. And for people who interested in this market. 'Home Made Ice Cream' is probably the best alternative way which giving the factors in both products, Process. Channel, branding, investment budget and market share. Because of the analysis ‘Home Made Ice Cream’ is popular and is expected to provide premium ice cream market growing up to 1,200 million baht from the total market value of all the ice cream in a total 10,000 million Baht.

Social & Culture The attitude of customer when they willing to buy product of food. Delicious, proper price and value added are the factors of customer buying behavior. The consumer will choose the product that they think its good and the value of product is proper to spend their money to buy. More importance is branding, almost people they believe that the product which have brand is quality product.

19In ice-cream business consumption rate in Thailand has continued growth and equal to 0.694 liters per person per year. The rate of ice cream consumption increased on average 5.0 percent per year. Contain of Thailand is a hot climate nearly year-round that make the ice-cream consumption rate is stable and it mean that the potential of ice-cream market is growth wildly. Thai Herb consumed in Thai people life for long time, herb is both garnish and herbs as medicine

Internet is the one technology

so now a day ‘Herb’ is still important. Herb had processed and develops to new product continually. Talking about herb ice-cream is new trend of ice-cream business to provide both Thai and foreign customers. For Thai customer, surely that they will interest in this product including foreign who want to try new taste of ice-cream. Herb ice-cream is value added product and it easy to create branding reorganization, words of mouth and create the motive to customer to buying product again. Technology Technology is very importance factor no matter human life or business. Certainly when technology change, human life have to change following its.

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http://

nowadays, there are widely in communication so many of business try to use internet to promote their product no matter big or small business. Herb ice-cream must use internet to use foe marketing too. Using internet is low cost ads and international, the manager can promote product through website such as facebook, hi5, twister, etc. About the term of technology of production, the manager should develop the production following new technology. New technology can decrease time of production, increase quantity, increase quality and also decrease cost too. Thus

www.thailandrestaurantnews.com 20

http://jb_koreatrend.tarad.com

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the manager always following the trend of technology to understand customer need and want including process to develop product through technology.

Technology of machine is the importance factor that makes business run well. Product quality has to emphasize on production process that will relate to innovation of machine. Ice-cream maker machine is easy to find. In the past ice-cream maker is expensive and limit quantity in each making process comparing with nowadays, there are new innovation that can generate more quantity as well as the machine had beautiful design. 21Price of ice-cream maker machine in medium size is about 50,000-150,000 bath (14Batch Freezer, capacity 7 liters), 270,000 baths (Batch Freezer, capacity 15 liters). The advantage of the two versions is faster production process, ice cream with silky texture, proper ice-cream temperature and convenient using. Competition Analysis (3C Analysis)

Nowadays, ice cream market will grow quickly. We

Competitor Analysis

observe from many Kind of ice cream as Super premium ice cream, Premium ice cream, home-made ice cream and Low to medium class ice cream. Variety brand are compete intensely involve the local ice cream which have nature ingredient.

The style of packages is important to make customer satisfy so, many company will design noticeable package as dip, readymade style, Take home style. Premium ice cream (Take home style) has much size for example

- Small cup 100 Gram

- Pine size 250-290 Gram

- Quart size 500-600 Gram

- Big size 750-1,000 Gram

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http:// www.cn-automachine.com

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Figure 3.3 Competitor

(Direct Competitor)

1. (Swensens ice cream)

By Swensen (Thai) Co Ltd. The market share is about 70-80%. They have variety channel to sale a product as kios supermarket, pizza restaurant including Delivery service too. They produce more products and many place to sale so, they can save about (Economy of Scale) more than competitors. They have own factory o produce raw milk and cream. From the advantages make Swensens to be leader continuously

2. Dairy queen

Dairy queen is the most important worldwide ice –cream and snacks. The Dairy queen system has more than 5700locations operating throughout the United States, Canada and 22 other. They offer a lot of variety presentations of delicious soft serve, like classic

and dipped cones, snakes, sundaes, royal treats, moolatte, blizzard and DQ cakes.

Advantages of Dairy queen ice cream are they are international business. Many customers know them and they have verities menu serve to customers. The rate price of ice cream is not expensive. Selling point is creamy DQ® soft serve.

3. KFC ice cream

Main point of KFC restaurant is about fried chicken and burger but now, they also add the ice cream menu too. KFC ice cream attract the teen ages who like a desert. The advantages of ice cream are very low price and the customer can have ice cream instant when they have meal finish. The customer will get food and ice cream in the same place so, it very comfortable to them.

Figure 3.4 Competitor

Figure 3.5 Competitor

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4. Low to medium class ice cream.

They are popular ice cream because can buy it easily. Competition is intense. Now, The leader of ice cream brand that have 3 businesses as:

4.1 (Wall"s ice cream) By Unilever Thai Holdings Limited. They emphasized not

high cost product and have verities to customers. The market share more than 70-80%

4.2 (Nestle ice cream)

By Nestle ice cream company. Now, the company has a little market share.

4.3 (Magnolia united ice cream)

By united food company limited . Beginning to local group of ice cream and after they affiliate with international. The company has a little market share.

Figure 3.6 Competitor

Figure 3.7 Competitor

Figure 3.8 Competitor

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(Indirect Competitor)

Many alternatives can attract customer as dessert, varieties beverage, slow train, or local ice cream shop outside Big C so, the profit may decrease because we have many indirect competitor too.

Customer Analysis Who is customer: Defined the potential customers. We focus on Thai and foreigner people.

1. Education needs of the target group follow by:

2. Economic and social status

3. Purchasing power.

Value pricing and services.

What does customer want: We know customer behavior that they pay attention about their health including four requisites so; the food is necessary needs for them. In addition, customers will select the food which without sugar and fat. However, it is possible, they will be still eating snack or others so, Herbal Ice-cream is a good choice for them.

Chart 3.1 Indirect Competitors Chart

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Why does customer have to buy our product: We choose the raw materials which are clean, fresh and safe. In addition we also select the product which comes from nature such as Thai her that is low fat and good health. So, customers who pay attention about their health should buy product. When

According to the

does customer purchase: Thailand located in hot zone so, it is appropriate for selling products which is fresh and cold as Herbal Ice-cream. About Phuket, a famous place in the world, there are a lot of people who are both Thai and foreigner people come to visit there especially in summer.

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1. Sweden, 95,482 people.

number of visitors to Phuket Top are 10 countries during January to June, 2009 Australia 135,437 people.

2. UK 69,297 people. 3. Germany, 64,331 people. 4. Russia, 64,116 people. 5. Finland, 53,449 people 6. Danish 41,274 people. 7. France, 36,741 people. 8. Japan, 36,479 people. 9. United States 31,767 people. You can see that in the first half, 23

there were 306,783 people in 2009. About in high season only tourists from Australia, the Sweden and UK are likely to be visit the island in this time of year. Moreover, occupancy rates in the high season are expected to be up 20%, We calculate the percent of trends target group is buying the most foreigners about 70 % more than Thai people buying about 30%.because the most of foreigners come from Europe side and they like ice cream. In Low season our product selling to Thai tourist because this period they have more holiday and come to support in our shop because the ours price of ice cream not higher price and them like to test new style of ice cream. So, in low season we have promotional offers to target tourists back to take ice cream and organized games for attractive tourist to consume. However we get profit from foreigner about 60% but Thai tourist 40 % in low season.

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http://news.phuketindex.com/travel/top-10-178134.html 23

http://news.phuketindex.com/travel/top-10-178134.html

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Company Analysis Our company had separated the segment and target market as followings; Nowadays, society has more concern their life in term of healthy going together

with using herbal to treat their health that help to happen the opportunities in the market.

From the trends that our company presented, company had seen the herbal ice-cream would to concern to become health foods. Which from the observation from questionnaires, our company found the most factors that customers thinks and use to make the decision to buy the products are good taste and variety choice to select the taste and our company use the experiment tasting and found customers has good feedback in good taste more than the original ice-cream. So we use the slogan under the Herbal Ice-cream is

“Taste it, love it” For customers who love your health. So the major target market is customers

who have interested in your own health and the second target market is like the variety of product and good taste. Marketing Mix Strategy

Herb ice cream provides good quality, fresh and low fat material. All herbals come from Doi Kham project. We sell ice cream in a scoop and cone. Cone is made of herbs so it will be different from competitors. Product

Herbal ice-cream is made Thai herb which is fresh, new and safe. There are many vitamin and properties of a medicine for healthy. Its taste is good, and different from competitors. Consumers will love our ice-cream, if they taste it which produced by Hi company. Company believes that you have not tasted it from anywhere, yet. Herbal ice-cream shop is a modern style. We mixed ice-cream which made by Thai herb and Thai culture to serve ice-cream by herb cone and paper glass. It is a strategy to be attractive consumer and it is different form other companies.

Consumers feel relax when they come in. All employees have to training form expert before they work at our shop so, consumers are confident that you are served to be good form our employees. Company uses recycle paper to product package and we use a ware which made by natural material for reducing the global warming.

Price

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Our company provide product which is herbal ice-cream. We think it is a dominant feature makes our company differ from competitors. There are scoop, cone and set for consumers who are different habit and income level choose them. We sell 29 baht per scoop, 59 baht per cone, Kissy set 89 baht and Ohla Ohla set 159 baht. Herbal ice cream appropriate customers want to have healthy.

Price: 59 / Cone

Kissy Price: 89 / Cup

Ohla Ohla Price: 159 / Cup

Topping

Figure 3.2 Cones

Figure 3.3 Kissy Set

Figure 3.4 Ohla Ohla Set

Figure 3.5 Topping

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Place The shop located near the Holiday resort, Patong merlin and close to soi kebsab

on Rath u-thid 200 pee road, Patong Beach (far from city of Phuket 15 kilometers) because the around area have many hotel and resort, Thai tourist, foreigner tourist, work man that stay around the area, close to the road and not far from Patong Beach therefore the tourist easy to fine, come and recognize our shop. The area of shop, it fit and area worthy, enough to support the customer, air condition, sylvan, can make the small party, equipment of decoration so cheap but modern, interior and exterior decoration Thai modern style can match appropriate. The inside have the tables, chairs, bar, counter cashier, ice cream cabinet, Thai wallpaper, smell of aroma, toilet separate female and male, production room, small exhibition of herbal for suggest the herbal which come from and properties of herbal for make sure that herbal is high quality and can explain background of herbal if customer need to know. The outside is close to the road has three and 10 groups of tables for support the customer who want to touch the fresh air, decorate unambitiously style with modern.

Figure 3.6 Herbal Ice Cream Shop

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Figure 3.7 Herbal Ice Cream Shop Map

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Promotion - If consumers buy ice-cream for 60

baht, they will receive one stamp form our company and if they receive 10 stamps, they will reduce 10 percent for discount (For Ohla Ohla and Kissy sets only.)

- During opening company in first month, consumers can taste herb ice-cream for free. This method can help consumers who taste it word of mouth to another people who don’t taste it. In future, may be consumers know our company and want to taste it increasingly.

- Distribute bookmarks for give knowledge about herbals to customers.

Lemongrass

This erect annual plant resembles a coarse grey-green grass.

Fresh leaves and grass are used as flavoring. Lemongrass contains a

0.2-0.4 volatile oil. Therapeutic

properties are as a diuretic,

emmanagogue, ant flatulence, ant flu and antimicrobial agent.

Taste it Love it

Roselle

Roselle is associated with traditional medicine and is

reported to be used as treatment for several diseases

such as hypertension and

urinary tract infections.

At Patong Beach, Phuket

Front Back

Figure 3.8 Stamp Promotion

Figure 3.9 Bookmark

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- -

In vacation, you can photograph with boyfriend, girlfriend and so on for free.

- Consumers can order a birth day ice-cream and they can design as you like it.

- There are promotions for each season.

Sale Forecast / Profit Estimation

To serve ice-cream with herbal drinks.

Our company located at Patong Beach in Phuket. From research of 24internal tourism in Phuket shows high season is between November to March and low season is between April to October. Our company opens market in January, 2010 which is a High season but our product, Herbal ice-cream, is a new product for customers. It makes customers may not accept our product so, we suppose that our total sale may loss profit for first month. Although we have to use a lot of money for investment such as building rental, equipment, raw material, salaries, tools, interior decoration cost etc. but we think that we can make profit later when our product enter market for 2 -3 months. In addition it may depend on any factors such as holiday, weather and so on. During in April-October (rainy season), there are less travelers because it is a low season. About profit in this period is stable. In 2011 (During November-January), we think our product will be well known and make more profit after our product has entered market for 1 year. We think advertisement, word of mouth and originality make our product are popular in a short period so, in 2012 (During November-March) we suppose that our products are accepted by both Thai and Foreigner already and it will be famous in Patong. Then during April-October may receive a few profits because it is a low season. In 2013 (During November-January), we will seldom promote our product because customers are happy with our products. When they are satisfied, they will world of mouth to other people. It makes our company receive profit increasingly. In 2014 (During November-January) we suppose that our company can repay to bank. Although this period is a low season but customers who are used to taste and like a new product will buy our product continuously. We believe that. Moreover customers who are a local people will buy product because we are brand loyalty of our product.

24

http//www.tat.or.th/.../20/January-December%202007%20Phuket.xls

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Chart 3.10 Sale Forecast 2010

Chart 3.11 Sale Forecast 2011

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Chart 3.12 Sale Forecast 2012

Chart 3.13 Sale Forecast 2013

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Conclusion Hi Company emphasizes and gives precedence to external factor to run the Company for eliminate the problems that will happen in the future such as political/legal, economic, socio-cultural, demographic, and technological. We analyze about the competition of our company that have more one. Those are 3C Analysis (Competitor, Customer, and Competitive). We must know about their opportunities and weak for adapt and apply in our company. Hi Company thinks to create marketing mix strategy (4 P’s) to make different from other competitor and customers unknown before. The market forecast is an important thing that every company must forecast the feasibility to sell product or service in that market. Furthermore, sale forecast/ profit estimation is thing that hard to forecast because we must assume to get sale and profit which will happen or not happen. We hope the customers come and taste our product will be impression.

Chart 3.14 Sale Forecast 2014

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Chapter 4 Technical Feasibility Study

Production and Operation Analysis Production Characteristic

Herbal ice-cream is made from Thai herb which is fresh, new and safe. There are many vitamin and properties of a medicine for healthy. Its taste is good, different and low fat. Customers will meet special herbal ice-cream and not ever test it before. We believe that they will love our ice-cream, if they taste it which produced by Hi company.

According to properties of a medicine. We separate Herbal Ice-cream into 12 categories which are Aloe Vera, Chili, Garlic, Ginger, Lemongrass, Lemon, Pomegranate, Roselle, Sesame, Tomato, Turmeric and Tamarind. Each Thai herb has different advantage for health. It can find easily in Thailand and helps save cost and time. In order to customers can buy herbal ice-cream that is not more expensive.

Aloe vera: An article published in the British Journal of General Practice suggests that Aloe vera is effective at treating athlete’s foot. Aloe vera may help some people with inflammatory bowel disease, ulceritis colitis. The natural gel-like flesh of the aloe vera plant can be applied on herpes infections for instant symptomatic

relief. Several sources report anti fungal, anti bacterial, and anti viral properties of the aloe Vera plant. Pure Aloe Vera Products are gel, sirup and actually tablets. These are heral medecinal derivates and are not considered as drugs.

Chili

is an erect, branched, shrub-like herb with fruits used as garnishing and flavouring in Thai dishes. There are many different species. All contain capsaicin, a biologically active ingredient beneficial to the respiratory system, blood pressure and heart. Other therapeutic uses include being a stomachic, carminative and antiflatulence agent, and digestant.

Garlic is an annual herbaceous plant with underground bulbs comprising several cloves. Dried mature bulbs are used as a flavoring and condiment in Thai cuisine. The bulbs contain a 0.1-0.36% garlic oil and organic sulfur compounds. Therapeutic uses are as an antimicrobial, diaphoretic, diuretic, expectorant, ant flatulence and cholesterol lowering agents.

Ginger is an erect plant with thickened, fleshy and aromatic rhizomes. Used in different forms as a food, flavoring and spice. Ginger's rhizomes contain a 1-2% volatile oil. Ginger's therapeutic uses are as a

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carminative, antinauseant and ant flatulence agent. The leaves, peel and juice of the Kaffir Lime

are used as flavouring in Thai cuisine. The leaves and peel contain a volatile oil. The major therapeutic benefit of the juice is as an appetizer.

Lemongrass

, This erect annual plant resembles a coarse grey-green grass. Fresh leaves and grass are used as flavoring. Lemongrass contains a 0.2-0.4 volatile oil. Therapeutic properties are as a diuretic, emmanagogue, antflatulence, antiflu and antimicrobial agent.

Lemon

is used principally as a garnish for fish and meat dishes. The fruit contains Hesperidin and Naringin, scientifically proven anti-inflammatory flavonoids. Lime juice is used as an appetiser, and has antitussive, antiflu, stomachic and antiscorbutic properties.

Pomegranate has been regarded as a food medicine of great importance. All parts of the tree, the roots, the reddish brown bark, leaves, flowers, rind and seeds, have featured in medicine for thousands of years. The medical authorities of ancient India have described it as a light food and a tonic for the heart

Roselle is associated with traditional medicine and is reported to be used as treatment for several diseases such as hypertension and urinary tract infections.

. The ancient medical writers of Arabia regarded it as - a fruit, which is good for the inflammation of the stomach and pain of the heart. The sweet varieties of the fruit are considered a good laxative, while those, which are intermediate between; sweet and sour are regarded as valuable in the stomach inflammations and heart pain. The juice from the fresh fruit is an excellent cooling beverage for alleviating thirst in cases of fevers and sickness. It acts on the liver, heart and kidneys and tones up their functions. It supplies the required minerals and helps the liver to preserve vitamin A from the food. It increases the body's resistance against infections, particularly tuberculosis

Sesame is an ancient spice, one of the first recorded plants used for its seeds. It has been used for thousands of years and is still an oil seed of worldwide significance. Early Assyrians believed their gods drank sesame wine as a prelude to creating the world. A drawing on an Egyptian tomb of 4,000 years ago depicts a baker adding sesame seeds to dough. Around the same time, the

Chinese were burning sesame oil to make a soot for ink. Ancient Greek soldiers carried sesame seeds as energy boosting emergency rations and the Romans made a kind of hummus from sesame and cumin. Sesame has been considered a symbol of good luck

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and signifies immortality to Brahmins. Sesame oil is non-drying oil, highly stable rarely turning rancid in hot climates. It is very rich in protein, a polyunsaturated fat used in margarine production and cooking oils. Non-culinary uses include its use as an ingredient in soap, cosmetics, lubricants and medicines. In southern India it is used to anoint the body and hair. The “Open Sesame” of Arabian Nights fame, probably derives from the sound the ripe seeds make when they burst from their pods, a popping noise that sounds like a lock spring opening.

Tomato is a rich source of vitamins. The vitamin A, B & C contents in tomato are more than that of orange & grapes and also more useful than those fruits. Taking four ripe tomatoes daily is sufficient to fulfil the entire requirement of vitamin a for human body. Hakeem Hashmi points out that vitamin in tomatoes is not destroyed even when heated or cooked tomato also rich in iron, which is twice, more than eggs.

Tomato is digestive, carminative, diuretic, invigorating, germicidal, appetizer, stimulated blood circulation and enriches red corpuscles in the blood. It gives energy and strength to the muscles of heart and bones. It clears constipation, activates liver. In Europe & America tomato is very popular & special festivals are celebrated in favour of

tomatoes and it is lovingly called as love apple.

Turmeric

Tamarind has cathartic, astringent, febrifuge, antiseptic, refrigerant properties. It is effective in treating sore throats and aids sensory restoration in paralysis cases. Tamarind improves gingivitis, digestion and flatulence. It aids against allergy and memory loss.

is a member of the ginger family, and provides yellow colorings for Thai food. The rhizomes contain a 3-4% volatile oil with unique aromatic characteristics. Turmeric's therapeutic properties manifest as a carminative, antiflatulence and stomachic

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Raw Materials

12/Kilogram

8/Kilogram

36/Kilogram

9/Kilogram

15/Kilogram

35/Kilogram

53/Kilogram

Reference: http://trade.dit.go.th/pricestat/index.asp http://www.srimuangagro.com/index.php?option=com_content&task=blogcategory&id=34&Itemid=45

Price (Baht)

24.35/Kilogram

25.01/Kilogram

0.91/ Piece

12.55/Kilogram

52.38/Kilogram

112.79/Kilogram

28.40/Kilogram

76-19/Kilogram

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In addition we also pay attention about ice-cream cone which is made into 3 categories that are Pumpkin, Pandanus Leaf and Taro. These cones are different colors which are yellow form Pumpkin, green form Pandanus Leaf and purple form Taro. Each fruit also has different nutrient. About Pumpkin, the main nutrients are lutein and both alpha and beta carotene, the latter of which generates vitamin A in the body. Pandanus Leaf, the medicinal uses for this tree are as follows: The entire plant is used as a diuretic, the roots have anti-diabetic properties, and the leaves are used for treating diseases of the skin. In cooking, the leaf is used in making grass green Pandan cake which is similar to the American sponge cake. The Pandan leaf has also been used in rice and making different type of curries. Strips of the leaves are used in making woven baskets, which are used to serve rice or other food items. Mid-eastern Indians use the flower of this plant in making perfume as well as desserts and sweets. For festive holidays and ceremonies, Pandan is used with the essences of rose to flavor spicy rice dishes such as biryani. Last one is Taro, Taro leaves and tubers are poisonous if eaten raw; the acrid calcium oxalate they contain must first be destroyed by heating.

Moreover we provide cup for serving ice-cream which there are 3 sizes that small cup, middle cup and large cup. We also pay attention about nature with global warming so, we select raw material which is made from nature that can recycle and it is

biodegradable. Customers who choose a cup also can choose two topping. In addition we also pay attention about ice-cream cone which

the diameter is 5 inches. We provide ice-cream cone into 3 categories that are Pumpkin, Pandanus Leaf and Taro. These cones are different colors which are yellow form Pumpkin, green form Pandanus Leaf and purple form Taro. Each fruit also has different nutrient. About Pumpkin, the main nutrients are lutein and both alpha and beta carotene, the latter of which generates vitamin A in the body. Pandanus Leaf, the medicinal uses for this tree are as follows: The entire plant is used as a diuretic, the roots have anti-diabetic properties, and the leaves are used for treating diseases of the skin. In cooking, the leaf is used in making grass green Pandan cake which is similar to the American sponge cake. The Pandan leaf has also been used in rice and making different type of curries. Strips of the leaves are used in making woven baskets, which are used to serve rice or other food items. Mid-eastern Indians use the flower of this plant in making perfume as well as desserts and sweets. For festive holidays and ceremonies, Pandan is used with the essences of rose to flavor spicy rice dishes such as biryani. Last one is Taro, Taro leaves and tubers are poisonous if eaten raw; the acrid calcium oxalate they contain must first be destroyed by heating.

Figure 4.1 Ice cream cone

Figure 4.2 Kissy Set

Figure 4.3 Ohla Ohla Set

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Moreover we provide cup for serving ice-cream which there are 3 sizes that small cup (4 oz), middle cup (8 oz.) and large cup (16 oz.) for 1, 2 and 4 scoops subsequently

that can recycle and it is

. Logo is on the middle cup. We also pay attention about nature with global warming so, we select raw material which is made from nature

biodegradable

. In addition, we provide Kissy and Ohla Ohla which both of these are set menu and customer also can select two topping for both of these such as cherry, chocolate M&m etc.

AAllooee vveerraa CChhiillii GGaarrlliicc

GGiinnggeerr

SSeessaammee RRoosseellll

PPoommeeggrraannaattee

LLeemmoonn LLeemmoonn ggrraassss

TToommaattoo TTaammaarriinndd TTuurrmmeerrii

Figure 4.4 Topping

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Production Process Quality Control We have supply relationship that is Doi Kham project. The most of people well known that Doi Kham project is a popular project. We know from the 25

We have the HACCP system to guarantee product quality and have auditor to check product quality every years. The HACCP is the system to control and prevent microbial and other hazards in food production. The staff of Hi Company will conduct follow 7 rules of

marketing strategy of Doi Kham to make high quality in product. In site of price, Doi Kham project have normal price to general market. Doi Kham have slogan to guarantee is fresh clean safety. Doi Kham realize about product from growing to harvest and transport to customers. It makes Hi Company believe to choose Doi Kham project to be our supply. So, the customers will consume good ice cream with good material surely. All of above reasons, we will reduce cost to purchase the material. We will purchase raw material for one time in that month because our raw material can not keep in long time. In addition, we will reduce cost by decrease cost of electricity, telephone, water supply or utility cost.

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1. Conduct a Hazard Analysis: Plants determine the food safety hazards identify the preventive measures the plant can apply to control these hazards.

HACCP system that are:

2. Determine the Critical Control Point; CCP: A critical control point (CCP) is a point, step, or procedure in a food process at which control can be applied and, as a result, a food safety hazard can be prevented, eliminated, or reduced to an acceptable level. A food safety hazard is any biological, chemical, or physical property that may cause a food to be unsafe for human consumption.

3. Establish Critical Limits: A critical limit is the maximum or minimum value to which a physical, biological, or chemical hazard must be controlled at a critical control point to prevent, eliminate, or reduce to an acceptable level.

4. Establish a System to Monitor Control of the CCP: Monitoring activities are necessary to ensure that the process is under control at each critical control point. FSIS is requiring that each monitoring procedure and its frequency be listed in the HACCP plan.

5. Establish the Corrective Action: These are actions to be taken when monitoring indicates a deviation from an established critical limit. The final rule requires a plant's HACCP plan to identify the corrective actions to be taken if a critical limit is not met. Corrective actions are intended to ensure that no product injurious to health or otherwise adulterated as a result of the deviation enters commerce.

25 http://www.royalprojectthailand.com/general/project-plan/marketing/index-marketing.htm 26 http://www.fsis.usda.gov/OA/background/keyhaccp.htm

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6. Establish Procedures for Verification: The HACCP regulation requires that all plants maintain certain documents, including its hazard analysis and written HACCP plan, and records documenting the monitoring of critical control points, critical limits, verification activities, and the handling of processing deviations

7. Establish Documentation and Record Keeping: Verification ensures the HACCP plan is adequate, that is, working as intended. Verification procedures may include such activities as review of HACCP plans, CCP records, critical limits and microbial sampling and analysis. FSIS is requiring that the HACCP plan include verification tasks to be performed by plant personnel. Verification tasks would also be performed by FSIS inspectors. Both FSIS and industry will undertake microbial testing as one of several verification activities. The occurrence of the identified food safety hazard.

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The basic steps in the manufacturing of ice cream are generally as follows:

• blending of the mix ingredients • homogenization • aging the mix • freezing • packaging • hardening

Select the raw material Receive from Doi Kham project Clean& Dry the herbs

Prepare ingredient

Blending

Homogenization Cooling

Continuous Homogenization/Cooling

Ageing

Continuous Freezing

Batch Freezing/Whipping

Packaging

Hardening Storage/Distribution

Taste & Check quality of product

Sale to customers

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Blending: First the

Process flow diagram for ice cream manufacture: the red section represents the operations involving raw, unpasteurized mix, the pale blue section represents the operations involving pasteurized mix, and the dark blue section represents the operations involving frozen ice cream.

ingredients are selected based on the desired formulation and the calculation of the recipe from the formulation and the ingredients chosen, then the ingredients are weighed and blended together to produce what is known as the "ice cream mix". Blending requires rapid agitation to incorporate powders, and often high speed blenders are used. Homogenization: The mix is also homogenized which forms the fat emulsion by breaking down or reducing the size of the fat globules found in milk or cream to less than 1 µ m. Two stage homogenization is usually preferred for ice cream mix. Clumping or clustering of the fat is reduced thereby producing a thinner, more rapidly whipped mix. Melt-down is also improved. Homogenization provides the following functions in ice cream manufacture:

- Reduces size of fat globules - Increases surface area - Forms membrane - Makes possible the use of butter, frozen cream, etc.

By helping to form the fat structure, it also has the following indirect effects: - makes a smoother ice cream - gives a greater apparent richness and palatability - better air stability - increases resistance to melting

Homogenization of the mix should take place at the pasteurizing temperature. The high temperature produces more efficient breaking up of the fat globules at any given pressure and also reduces fat clumping and the tendency to thick, heavy bodied mixes. No one pressure can be recommended that will give satisfactory results under all conditions. The higher the fat and total solids in the mix, the lower the pressure should be. If a two stage homogenizer is used, a pressure of 2000 - 2500 psi on the first stage and 500 - 1000 psi on the second stage should be satisfactory under most conditions. Two stage homogenization is usually preferred for ice cream mix. Clumping or clustering of the fat is reduced thereby producing a thinner, more rapidly whipped mix. Melt-down is also improved. Ageing: The mix is then aged for at least four hours and usually overnight. This allows time for the fat to cool down and crystallize, and for the proteins and polysaccharides to fully hydrate. Aging provides the following functions:

27 http://www.recipetips.com/kitchen-tips/t--1384/how-to-make-homemade-ice-cream-without-an-ice-cream-maker.asp

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- Improves whipping qualities of mix and body and texture of ice cream.

It does so by: - providing time for fat crystallization, so the fat can partially coalesce; - Allowing time for full protein and stabilizer hydration and a resulting slight

viscosity increase; - Allowing time for membrane rearrangement and protein/emulsifier interaction,

as emulsifiers displace proteins from the fat globule surface, which allows for a reduction in stabilization of the fat globules and enhanced partial coalescence.

Aging is performed in insulated or refrigerated storage tanks, silos, etc. Mix temperature should be maintained as low as possible without freezing, at or below 5 C. An aging time of overnight is likely to give best results under average plant conditions. A "green" or unaged mix is usually quickly detected at the freezer. Freezing and Hardening: Following mix processing, the mix is drawn into a flavor tank where any liquid flavors, fruit purees, or colors are added. The mix then enters the dynamic freezing process which both freezes a portion of the water and whips air into the frozen mix. The "barrel" freezer is a scraped-surface, tubular heat exchanger, which is jacketed with a boiling refrigerant such as ammonia or Freon. Mix is pumped through this freezer and is drawn off the other end in a matter of 30 seconds, (or 10 to 15 minutes in the case of batch freezers) with about 50% of its water frozen. There are rotating blades inside the barrel that keep the ice scraped off the surface of the freezer and also dashers inside the machine which help to whip the mix and incorporate air. Ice cream contains a considerable quantity of air, up to half of its volume. This gives the product its characteristic lightness. Without air, ice cream would be similar to a frozen ice cube. The air content is termed its overrun, which can be calculated mathematically. As the ice cream is drawn with about half of its water frozen, particulate matter such as fruits, nuts, candy, cookies, or whatever you like, is added to the semi-frozen slurry which has a consistency similar to soft-serve ice cream. In fact, almost the only thing which differentiates hard frozen ice cream from soft-serve, is the fact that soft serve is drawn into cones at this point in the process rather than into packages for subsequent hardening. Hardening: After the particulates have been added, the ice cream is packaged and is placed into a blast freezer at -30° to -40° C where most of the remainder of the water is frozen. Below about -25° C, ice cream is stable for indefinite periods without danger of ice crystal growth; however, above this temperature, ice crystal growth is possible and the rate of crystal growth is dependant upon the temperature of storage. This limits the shelf life of the ice cream.

A primer on the theoretical aspects of freezing will help you to fully understand the freezing and recrystallization process.

Hardening involves static (still, quiescent) freezing of the packaged products in blast freezers. Freezing rate must still be rapid, so freezing techniques involve low

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temperature (-40oC) with either enhanced convection (freezing tunnels with forced air fans) or enhanced conduction (plate freezers).

The rate of heat transfer in a freezing process is affected by the temperature difference, the surface area exposed and the heat transfer coefficient (Q=U A dT). Thus, the factors affecting hardening are those affecting this rate of heat transfer:

- Temperature of blast freezer - the colder the temperature, the faster the hardening, the smoother the product.

- Rapid circulation of air - increases convective heat transfer. - Temperature of ice cream when placed in the hardening freezer - the colder the

ice cream at draw, the faster the hardening; - must get through packaging operations fast.

- Size of container - exposure of maximum surface area to cold air, especially important to consider shrink wrapped bundles - they become a much larger mass to freeze. Bundling should be done after hardening.

- Composition of ice cream - related to freezing point depression and the temperature required to ensure a significantly high ice phase volume.

- Method of stacking containers or bundles to allow air circulation. Circulation should not be impeded - there should be no 'dead air' spaces (e.g., round vs. square packages).

- Care of evaporator - freedom from frost - acts as insulator. - Package type, should not impede heat transfer - e.g., Styrofoam liner or

corrugated cardboard may protect against heat shock after hardening, but reduces heat transfer during freezing so not feasible.

Ice cream from the dynamic freezing process (continuous freezer) can also be transformed into an array of novelty/impulse products through a variety of filling and forming machines, which have been identified on a separate page.

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• Ingredients:

Preparing

• 1 cup milk • 1 cup Sucralose (low sugar) • 1/4 teaspoon salt • 1 cup half and half • 2 cups chilled whipping cream • 2 cups tomatoes pieces

1. Preparing herbs

Place the pieces of herb in a bowl or measuring cup and set aside until needed.

2. Scalding Milk

Pour the milk into a heavy saucepan. Over medium heat bring the milk to a gentle simmer (approximately 175°F) or until it begins to bubble around the edges. Remove from the heat.

3. Add Sucralose (low sugar) and Salt

After removing from the heat, add the sugar and salt to the scalded milk.

4. Stir the scalded milk until and Sucralose (low sugar) alt are completely dissolved.

5. Cooling Ice Cream Mixture Pour into a bowl and allow mixture to cool to room temperature.

6. Freezing with an Electric Ice Cream Maker with a Freezing Unit

28 http://www.recipetips.com/kitchen-tips/t--1384/how-to-make-homemade-ice-cream-without-an-ice-cream-maker.asp

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The instructions below are for using an electric ice cream maker that uses a freezing unit that contains a cooling liquid between double insulated walls. The unit is placed in the freezer for the cooling liquid to freeze; and once frozen, it does the work of the ice and salt in the unit above. This is just one type of model. Realize that there are many different types of ice cream makers and unless you have this same model, it is best to read the user's manual for your model before beginning the freezing process. This type of freezing process is also a "stir freezing" method because the ice cream is being stirred throughout the freezing process.

7. Freezer Unit Prep

The freezing unit of the ice maker must be completely frozen before the ice cream freezing process begins. Place the freezing unit in a freezer and allow the cooling liquid in the double walls of the unit to freeze completely. This could take from 6 to 24 hours, depending on the temperature of the freezer, how full the freezer is, and how often the freezer door is opened. To check if it is frozen, shake the unit; if you can hear it moving around in the walls of the unit, it is not completely frozen yet and should be returned to the freezer.

8. Churning

After the freezing unit is completely frozen, set it in the base of the ice cream maker. Place the cover and mixing arm on the unit.

Once the cover and mixing arm are secured, turn the unit on to start the ice cream maker churning. The freezing unit turns and the mixing arm is stationery.

Pour the ice cream mixture into the frozen unit through the opening on the top of the cover. Fill it no more than 1/2 inch from the top. If you are going to be adding flavoring ingredients at the end of the process be sure to leave room in the freezing unit.

9. When Ice Cream is Done

The unit should run for 25 to 40 minutes before the ice cream has thickened enough. Start checking the ice cream after 25 minutes. Depending on the amount of ice cream in the unit it may take additional time. The ice cream should be thick but too soft to scoop. This consistency is good for adding in flavorings.

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When the ice cream is ready, add the tomatoes sauce and churn until evenly mixed into the ice cream.

Remove the cover and pull out the mixing arm. Use a spatula to remove the ice cream.

If flavorings do not seem to be completely mixed, quickly stir by hand to distribute evenly.

10. Hardening the Ice Cream Pack the ice cream down in the can and replace the cover (plug

hole in cover with the cork) or scrape the ice cream into another container with an airtight cover. Be sure to leave at least 1/2 inch head space for expansion. Place the ice cream in the freezer for several hours to harden.

After the ice cream has hardened sufficiently, take the ice cream container out of the freezer, remove the cover and scoop ice cream into bowls or cones. Serve and enjoy!

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Location Our shop and production factory are the same place where is near target group (tourist) and distribution centre that is Patong beach at Phuket. The customers can find and easy to reach our shop because the shop is located near many hotels in Patong beach and near civilization place.

Figure 4.5 Herbal Ice cream Shop Map

43

Facility Layout

In front of our shop is wide 8 meters and high 10 meters. In right hand side, we use mirrors to decorate this shop. Ice cream Glass cabinet we designed to slide opens on top of cabinet. There are 2 parts inside and out side. Inside separate to 2 rooms, one room is for production and other room is for sale (there are mini bar and one set of table). Out side have 4 set of modern tables and 6 of wood tables set to provide the customers come to our shop. We design to make for involving the restaurant and ice-cream delightfully up to cheerful and up-to-date style. The walls are decorated as various refreshing pictures of herbs that are absolutely cool.

Cashier counter is next to the ice-cream glass cabinet. Behind the shop we have a room for store and kept raw materials and use to washing ware or glasses but we separated into each part for convenience, comfortable for pick up raw materials and look like clean.

This shop designed by using colorful theme. We mixed the styles of Thai herbs and the atmospheres which appropriately. Whishing bring Thai herbs to apply with ice- creams and we ensure that customers who come in into our shop for tasting its ,you can get many benefits that we offers to you and we ensure that you should to impress our shop in the first time when you see our shop as we confirm.

Figure 4.6 Facility Layout

44

Machine Tools Equipment Batch Freezer

Our new batch freezers are now the best in the world. They have a patented freezing chamber (drum or barrel) capable of -45ºC w all temperatures, almost twice as cold as any others. The extreme cold reduces ice crystal size, improves texture and density with no freezing of the product on the chamber walls. The new model has an industrial quality frequency control device and an improved electronic module. Frequency control makes the machine extremely quiet, improves temperature control and will add years to the operating life of the dasher motor. The easy-to-read electronic module shows the progress of the batch and has a fault finding mode. Frankly, these improvements represent the first real improvement in batch freezer design in 60 years. I think we now have the best batch freezers on the market, better than any thing made anywhere. Best of all, you get the new model for the same price as the old. • FOOD GRADE STAINLESS DRUM, DOOR & DASHER • SAFE OPERATION: System will not operate w hen door is open. Safety cannot be by-passed • EMERGENCY STOP: Emergency Stop any time • PROTECTIVE DOOR GRATE: Finger protection bar at the extruding hole to protect operator. • DOUBLE SPEED FREEZING: Low speed freezing for gelato, high speed for making ice cream. • INDUSTRIAL QUALITY FREQUENCY CONTROL MECHANISM adds years to the life of the motors • BUILT-IN RINSING WATER SPIGOT • DIGITAL ELECTRONIC MODULE: Programmable, accurate freezing time. The machine will diagnose the problem by itself and display • POWER SUPPLY: 220v; 3-PHASE; 50 OR 60 Hz. • COOLING: Air or water • REFRIGERANT: R404 • EXTERIOR: All stainless Steel • SPARE PARTS PACK: Extensive spare parts pack available for each machine

Figure 4.7 Batch Freezer

45

Display Freezer The display freezer is made by an

Italian company entirely from Italian components and assembled in their factory in Thailand. It is a static freezer, no blowers and freezes to -22ºC. Because it is static it is very efficient. We have used many of them and they are highly reliable. Slim has a rear storage reserve bay capable of holding 16 tubs of ice cream. Ventilation is on the left side and left rear so you must leave at least 30 cm of space on that side for air flow. Slim is just 72 cm deep, about half the depth of our other cases, making it ideal for narrow areas. It is light, rolls easily and is highly portable for use at events. The front does not open but is easily accessible from the rear for cleaning. Front panel is glass and rear door is made of acrylic.

Gravity feed design with a replaceable FDA approved rubber diaphragm to accommodate a variety of cone sizes. The 705-DS can be mounted to the side of a freezer or any vertical surface from 30 degrees to a vertical position. Rear loading unit with 2 doors which can be closed when not in use. Quality stainless steel construction guarantees years of trouble-free performance.

Dispense-Rite Stainless Steel Ice Cream Cone Dispenser

Scoop

- One Piece Design The Original Zeroll

- Defroster in handle for quick load, fast release. - Use Right Hand or Left Hand. - No springs to corrode or break. - Rolls ice cream with minimal compression, 20% more profit per gallon. Glasses

Two stylish pieces to offer serving options for ice cream fruits, puddings, sauces, sundaes, or even shrimp cocktail. Melamine, priced and packed per dozen.

Figure 4.8 Display Freezer

Figure 4.9 Cone Dispenser

Figure 4.10 Scoop

46

SHARP XE-A203 Cash Register

Among its advanced features, the Sharp XE-A203 offers the advantage of thermal printing at around 12 lines per second. Not only is this much faster than drum printing, it's also much quieter Free ON-SITE warranty at no extra cost.6 lines of text for receipt message: Print your name, address and vat number for each customer.25 operators can sign in, giving you a operator report at end of day.USB connection to your PC for easy programming. Dimensions: Width 355 x Depth 430 x Height 312 (mm)

Price of Machine, Tools, and Equipment 29

Price: 12500

Cone Making: This machine is used for making scoop. It can control temperature and set the time. It’s made form good material so, the scoop which is made by this machine won’t be caught in a spring trap.

30

Price: 233,000

Batch Fresher: Gelato Pro 10k is a large machine for making ice-cream and it is 6 liter. It has safety system which when you open the cover, a fan, using for stir ice-cream, will stop immediately. This machine use only 15 minute for stiring.

29 http://www.weloveshopping.com/template/a07/showproduct.php?pid=14376428&shopid=188558 30 http://www.weloveshopping.com/template/a07/showproduct.php?pid=14177261&shopid=188558

Figure 4.11 Cash Register

Figure 4.12 Cone Making

Figure 4.13 Batch Fresher

47

31

Price: 109,900

Display fresher: A freezer, to use for keeping ice-cream Gelato style, import from Italy. It is made from stainless steel. It has a controlling temperature system with digital style. The advantage of this system is to control temperature of each ice-cream automatically including anti-icer.

32

Price: 340/100 cubs Paper Glass

33

Price: 90/Dozen Ice- cream spoon

34

Price: 250 Ice- cream spoon

31 http://www.weloveshopping.com/template/a07/showproduct.php?pid=14379180&shopid=188558 32 http://www.weloveshopping.com/template/a07/showproduct.php?pid=14428318&shopid=188558 33 http://www.kitchenwaremarket.com/oscommerce/catalog/product_info.php? 34 http://www.icecreamfanclub.com/index.php?name=Forums&file=viewtopic&t=2326

Figure 4.14 Display Fresher

Figure 4.15 Paper Glass

Figure 4.16 Ice cream spoon

Figure 4.17 Ice cream spoon

48

35

Price: 120 Baht

Stabilizer and Emulsifier or SE is a chemical which makes ice-cream smoothly and keep ice-cream for a long time. It is used with ice-cream that has fat 0-5% such as low fat ice-cream. A pack has 100 grams. We use 1 to 3 grams per ice-cream 1 kg. (Recommendation normally use SE 2 grams per ice-cream 1 kg.)

36Classic cup: The picture shows ice-cream cup which is the

best seller in Asia. It is compact, plain, transparent and not expensive. Outside body is streak. It is appropriate for a scoop of ice-cream with topping. The diameter of cup is 10 cm., 4 cm. of deep. Price: 611/dozen

37

Price: 712/dozen

Banana cup: The picture shows another cup which is longer and shorter. It is transparent, not expensive and appropriate for three scoop of ice-cream as Banana Split. It is width 10 cm. , length 14 cm. and deep 4 cm.

38

Price: 60 Baht (500 pieces)

Small ice-cream spoon

35 http://www.weloveshopping.com/template/a07/showproduct.php?pid=14429657&shopid=188558 36 http://www.kitchenwaremarket.com/oscommerce/catalog/product_info.php?

37 http://www.kitchenwaremarket.com/oscommerce/catalog/product_info.php?

38 http://www.icecreamfanclub.com/index.php?name=Forums&file=viewtopic&t=1654

Figure 4.18 SE

Figure 4.19 Classic cup

Figure 4.20 Banana cup

Figure 4.21 Small ice cream spoons

49

Modern Table: Table is circle which is made from mirror. The diameter of table is 75 cm. with bronze iron. Chair is covered by PVC which you can select any colors. Price: 5,057.50 Baht

Wood Table: The picture shows another table which is made from wood. It is 70 x 70 cm. with four chairs. Price: 2000 Baht

Northern Umbrella is made by greige which protect sunlight from the sun already. Body is made by bamboo which is bake with chemical for protecting any insect especially Price : 450 Baht

Cashier register: used for calculating or check the bill for customer easily. Price: 9500

Figure 4.22 Modern Table

Figure 4.23 Wood Table

Figure 4.24 Umbrella

Figure 4.25 Cashier register

50

Samsung AS12ELN: Air condition is a important machine which makes customers are happy while they are

eating ice-cream at our shop so, we choose Samsung AS12ELN which is a new innovation technology by Samsung for serving customers. This air condition consist of many interest functions which we believe that it makes us work smoothly.

Logistic Management Supplier

- Order to Doi Kham - Used the Hazard Analysis and Critical Control Point [HACCP] for inspect

the raw material from Doi Kham - Used first in first out [FIFO] - If raw material out of order, can send back to supplier immediately

Manufacturing

- Check raw material again follow the recipe - Made follow rule of hygiene and clean - Separate catering to proportion - Always clean the catering when finish

Customer

- Delicious - Fair price to customer - Goods fresh - Social responsibility - Service mind to customer

Figure 4.25 Air condition

51

Supplier

Manufacturing

Customer

52

Facility Management We focus on customer first because good service should to

think a demand of customer “What they want?” So, we provide technology service that importance to

customer and décor our shop for attractive customer too. The shop of ice-cream we are provided the internet to respond them i.e. high-speed wireless. For make more service efficiency to customer.

The equipment (ice-cream machine) we calculate one machine can use how many years. How does of depreciate price.

Cost of utilities The significance of our shop is we reallocate in cost of telephone and internet we divide to pay at TOT, and we arrange high-wireless to customer so, make good communication to them and make brand royalty to our product.

Electricity bill: Pay at Provincial Electricity Authority (ePayment). We necessary to use the location at Patong beach therefore the electricity of us have to normal cost. For maintain public benefit and revenue of our shop, to make convenience for customer and good service to them.

Water supply: We pay at Provincial Waterworks Authority and assign water per unique to conform with the produce cost for have efficiently to make process style business.

Infrastructure: The basic systems and structures that our shop or other company needs in order to work properly, for example transport, communications.

Figure 4.26 TOT

Figure 4.27 Electricity

Figure 4.28 Water supply

53

Investment Cost Depreciation

Investment Amount Depreciation Annual

Dep. Monthly Dep.

Batch Freezer 233000 20 years 11650 971 Display Freezer 109900 10 years 10990 916 Cone making 12500 5 years 2500 208 Cashier register 9500 5 years 1900 159 Modern Table 4 sets 25280 5 years 5056 421 Wood Table 6 sets 12000 5 years 2400 260 Air condition 14000 10 years 1400 117

54

Hi company will loan cash from bank 70% and owner capital is 30%. Hi company establish in company limited. We will pay for corporate income tax 30% of total income for once time in that year. We lease the building for shop that has value to pay the rental about 60000 baht per month

Marketing Activity

Income

2010

Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalScoop 580 725 812 696 725 783 754 812 870 928 1015 1247 9947Cone 525 1180 1357 1121 1298 1298 1239 1357 1180 1180 1475 1888 15098Kissy Set 1890 979 1068 890 1068 1157 1424 1602 1780 2136 2492 3115 19601Ohla Ohla Set 890 1590 1908 1272 1590 1908 1908 1908 2067 2226 2544 3180 22991Total 3885 4474 5145 3979 4681 5146 5325 5679 5897 6470 7526 9430 67637

2011

Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalScoop 1305 1334 1363 1247 1334 1160 1102 1131 1160 1218 1218 1450 15022Cone 1947 2006 2006 2124 2183 1888 1770 2006 2124 2124 2065 2360 24603Kissy Set 3204 3382 3471 3115 3115 2670 2492 2581 2581 2670 2848 4005 36134Ohla Ohla Set 2180 3339 3339 3180 3180 2385 2067 2067 2226 2226 2862 3975 33026Total 8636 10061 10179 9666 9812 8103 7431 7785 8091 8238 8993 11790 108785

55

2012

Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalScoop 1566 1392 1363 1305 1334 1189 1131 1102 1073 1131 1218 1595 15399Cone 2714 2301 2360 2360 2478 2124 2301 2065 2124 2124 2242 2419 27612Kissy Set 4272 3560 3827 3560 3738 3382 3382 2848 2670 2759 2937 3916 40851Ohla Ohla Set 4452 3657 3816 3498 3339 2862 2862 2385 2226 2226 3498 4134 38955Total 13004 10910 11366 10723 10889 9557 9676 8400 8093 8240 9895 12064 122817

2013

Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalScoop 1653 1440 1508 1537 1450 1392 1421 1363 1305 1508 1595 1740 17912Cone 2655 2478 2596 2714 2242 2183 2301 2360 2360 2537 2714 2655 29795Kissy Set 4272 3738 3738 3738 3382 3382 3382 3115 3204 3471 4005 8900 48327Ohla Ohla Set 4452 3816 3816 3816 3180 3180 3339 3339 3180 3498 4134 4770 44520Total 13032 11472 11658 11805 10254 10137 10443 10177 10049 11014 12448 18065 140554

2014

Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalScoop 1885 1624 1537 1566 1450 1305 1218 1247 1305 1508 1653 1827 18125Cone 2655 2655 2773 2773 2655 2360 2478 2655 2655 2832 2773 2714 31978Kissy Set 4895 4450 4005 4094 3738 3293 3382 3471 3382 3560 4272 4895 47437Ohla Ohla Set 4770 4293 4134 4134 3498 3021 3021 3021 3180 3498 4293 5247 46110Total 14205 13022 12449 12567 11341 9979 10099 10394 10522 11398 12991 14683 143650

56

Expense

2010

Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalAdvertising cos 3000 3500 3500 3300 3350 3350 3300 3370 3400 3400 3500 3500 40470

2011

Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalAdvertising cos 3550 3300 3300 3200 3300 3400 3400 3300 3200 3200 3100 3000 39250

2012

Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalAdvertising cos 3000 2900 2800 2800 2900 2900 2900 2800 2800 2800 2700 2600 33900

2013

Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalAdvertising cos 2700 2770 2800 2800 2900 2900 3000 3100 3000 2900 2800 2900 34570

2014

Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalAdvertising cos 3200 3300 3000 3100 3300 3400 3500 3500 3400 3300 3100 3000 39100

57

Technical Activity

Production and Operation Mangement

Asset

2010Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalMachine 355400 355400 355400 355400 355400 355400 355400 355400 355400 355400 355400 355400 4264800Depreciation 2095 2095 2095 2095 2095 2095 2095 2095 2095 2095 2095 2095 25140Total 357495 357495 357495 357495 357495 357495 357495 357495 357495 357495 357495 357495 4289940

2011Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalMachine 355400 355400 355400 355400 355400 355400 355400 355400 355400 355400 355400 355400 4264800Depreciation 2095 2095 2095 2095 2095 2095 2095 2095 2095 2095 2095 2095 25140Total 357495 357495 357495 357495 357495 357495 357495 357495 357495 357495 357495 357495 4289940

2012Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalMachine 355400 355400 355400 355400 355400 355400 355400 355400 355400 355400 355400 355400 4264800Depreciation 2095 2095 2095 2095 2095 2095 2095 2095 2095 2095 2095 2095 25140Total 357495 357495 357495 357495 357495 357495 357495 357495 357495 357495 357495 357495 4289940

2013Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalMachine 355400 355400 355400 355400 355400 355400 355400 355400 355400 355400 355400 355400 4264800Depreciation 2095 2095 2095 2095 2095 2095 2095 2095 2095 2095 2095 2095 25140Total 357495 357495 357495 357495 357495 357495 357495 357495 357495 357495 357495 357495 4289940

58

2014Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalMachine 355400 355400 355400 355400 355400 355400 355400 355400 355400 355400 355400 355400 4264800Depreciation 2095 2095 2095 2095 2095 2095 2095 2095 2095 2095 2095 2095 25140Total 357495 357495 357495 357495 357495 357495 357495 357495 357495 357495 357495 357495 4289940

Cost

2010Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalRaw material 2550 2601 2692 2746 2773 2815 2843 2871 2957 3001 3091 3400 34340Labor 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 156000Overhead 32395 32441 32524 32574 32600 32638 32610 32595 32615 32695 32895 33045 391627Total 47945 48042 48216 48320 48373 48453 48453 48466 48572 48696 48986 49445 581967

2011Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalRaw material 3740 4001 4261 4431 4325 4061 3815 3872 3949 4009 4166 4583 49213Labor 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 156000Overhead 33340 33568 33794 33863 33901 33755 33445 33485 33541 33611 33625 33975 403903Total 50080 50569 51055 51294 51226 50816 50260 50357 50490 50620 50791 51558 609116

59

2012Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalRaw material 4812 4374 4440 4291 4353 4089 4130 3911 3872 3922 4314 4745 51253Labor 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 156000Overhead 34145 33925 33985 33875 33895 33515 33527 33453 33409 33611 33444 33495 404279Total 51957 51299 51425 51166 51248 50604 50657 50364 50281 50533 50758 51240 611532

2013Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalRaw material 4816 4527 4618 4641 4249 4233 4318 4196 4180 4404 4734 5065 53981Labor 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 156000Overhead 33987 33899 33919 33927 33425 33417 33439 33425 33417 33718 33964 34279 404816Total 51803 51426 51537 51568 50674 50650 50757 50621 50597 51122 51698 52344 614797

2014Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalRaw material 5141 4829 4664 4689 4440 4315 4388 4397 4419 4448 4750 5166 55646Labor 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 156000Overhead 34449 33974 33929 33931 33900 33865 33875 33881 33909 34002 34021 34495 408231Total 52590 51803 51593 51620 51340 51180 51263 51278 51328 51450 51771 52661 619877

60

Organization Management

Asset2010

Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalEquipment 68799 68799 68799 68799 68799 68799 68799 68799 68799 68799 68799 68799 825588Depreciation 897 897 897 897 897 897 897 897 897 897 897 897 10764Total 69696 69696 69696 69696 69696 69696 69696 69696 69696 69696 69696 69696 836352

2011

Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalEquipment 71710 71710 71710 71710 71710 71710 71710 71710 71710 71710 71710 71710 860520Depreciation 897 897 897 897 897 897 897 897 897 897 897 897 10764Total 72607 72607 72607 72607 72607 72607 72607 72607 72607 72607 72607 72607 871284

2012

Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalEquipment 66944 66944 66944 66944 66944 66944 66944 66944 66944 66944 66944 66944 803328Depreciation 897 897 897 897 897 897 897 897 897 897 897 897 10764Total 67841 67841 67841 67841 67841 67841 67841 67841 67841 67841 67841 67841 814092

61

2013

Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalEquipment 68457.6 68458 68458 68458 68458 68458 68458 68458 68458 68458 68458 68458 821491Depreciation 897 897 897 897 897 897 897 897 897 897 897 897 10764Total 69354.6 69355 69355 69355 69355 69355 69355 69355 69355 69355 69355 69355 832255

2014

Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalEquipment 68971.2 68971 68971 68971 68971 68971 68971 68971 68971 68971 68971 68971 827654Depreciation 897 897 897 897 897 897 897 897 897 897 897 897 10764Total 69868.2 69868 69868 69868 69868 69868 69868 69868 69868 69868 69868 69868 838418

Expense

2010Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalRental Fee 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 720000Electricity 2000 2040 2112 2155 2177 2210 2190 2175 2200 2250 2400 2500 26409Salary 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 336000Total 90000 90040 90112 90155 90177 90210 90190 90175 90200 90250 90400 90500 1082409

62

2011Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalRental Fee 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 720000Electricity 2750 2943 3134 3200 3232 3100 2840 2870 2920 2990 3000 3300 36279Salary 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 336000Total 90750 90943 91134 91200 91232 91100 90840 90870 90920 90990 91000 91300 1092279

2012Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalRental Fee 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 720000Electricity 3450 3300 3350 3280 3288 2940 2946 2884 2850 2856 3872 3340 38356Salary 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 336000Total 91450 91300 91350 91280 91288 90940 90946 90884 90850 90856 91872 91340 1094356

2013Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalRental Fee 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 720000Electricity 3362 3296 3310 3314 2854 2850 2863 2860 2854 3122 3347 3600 37632Salary 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 336000Total 91362 91296 91310 91314 90854 90850 90863 90860 90854 91122 91347 91600 1093632

63

2014Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalRental Fee 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 720000Electricity 3758 3350 3316 3318 3295 3268 3276 3282 3300 3397 3402 3800 40762Salary 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 336000Total 91758 91350 91316 91318 91295 91268 91276 91282 91300 91397 91402 91800 1096762

Interest and Tax2010

Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalInterest 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 234000Tax 0 0 0 0 0 0 0 0 0 0 0 0 0Total 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 234000

2011Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalInterest 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 234000Tax 112060 0 0 0 0 0 0 0 0 0 0 0 112060Total 131560 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 346060

64

2012Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalInterest 14600 14600 14600 14600 14600 14600 14600 14600 14600 14600 14600 14600 175200Tax 560957 0 0 0 0 0 0 0 0 0 0 0 560957Total 575557 14600 14600 14600 14600 14600 14600 14600 14600 14600 14600 14600 736157

2013Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalInterest 9800 9800 9800 9800 9800 9800 9800 9800 9800 9800 9800 9800 117600Tax 1008847 0 0 0 0 0 0 0 0 0 0 0 1008847Total 1018647 9800 9800 9800 9800 9800 9800 9800 9800 9800 9800 9800 1126447

2014Description 1 2 3 4 5 6 7 8 9 10 11 12 TotalInterest 4900 4900 4900 4900 4900 4900 4900 4900 4900 4900 4900 4900 58800Tax 1497206 0 0 0 0 0 0 0 0 0 0 0 1497206Total 1502106 4900 4900 4900 4900 4900 4900 4900 4900 4900 4900 4900 1556006

64

Herbal Ice cream ProductSchedule of Cost of Goods Sold

Year 2010

1 2 3 4 5 6 7 8 9 10 11 12Direct materials

Beginning raw materials inventory 0 8960 6479 3937 1981 2448 903 1835 264 186 1755 1453Add: Purchases of raw materials 11510 120 150 790 3240 1270 3775 1300 2879 4570 2789 2305Raw materials available for use 11510 9080 6629 4727 5221 3718 4678 3135 3143 4756 4544 3758Deduct: Ending raw materials inventory 8960 6479 3937 1981 2448 903 1835 264 186 1755 1453 358Raw materials used in production 2550 2601 2692 2746 2773 2815 2843 2871 2957 3001 3091 3400

Direct labor 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000Manufacturing overhead 32395 32441 32524 32574 32600 32638 32610 32595 32615 32695 32895 33045Total manufacturing cost 47945 48042 48216 48320 48373 48453 48453 48466 48572 48696 48986 49445Cost of goods manufactured 47945 48042 48216 48320 48373 48453 48453 48466 48572 48696 48986 49445Cost of goods sold

Beginning finished goods 0 3488 5895 4823 7088 7524 2800 4104 2373 4500 1520 759For sale 47945 51530 54111 53143 55461 55977 51253 52570 50945 53196 50506 50204

Ending finished goods 3488 5895 4823 7088 7524 2800 4104 2373 4500 1520 759 203Total Cost of goods sold 44457 45635 49288 46055 47937 53177 47149 50197 46445 51676 49747 50001

65

Herbal Ice cream ProductSchedule of Cost of Goods Sold

Year 2011

1 2 3 4 5 6 7 8 9 10 11 12Direct materials

Beginning raw materials inventory 358 2429 1038 487 1507 1128 1091 1132 777 815 1465 1992Add: Purchases of raw materials 5811 2610 3710 5451 3946 4024 3856 3517 3987 4659 4693 4523Raw materials available for use 6169 5039 4748 5938 5453 5152 4947 4649 4764 5474 6158 6515Deduct: Ending raw materials inventory 2429 1038 487 1507 1128 1091 1132 777 815 1465 1992 1932Raw materials used in production 3740 4001 4261 4431 4325 4061 3815 3872 3949 4009 4166 4583

Direct labor 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000Manufacturing overhead 33340 33568 33794 33863 33901 33755 33445 33485 33541 33611 33625 33975Total manufacturing cost 50080 50569 51055 51294 51226 50816 50260 50357 50490 50620 50791 51558Cost of goods manufactured 50080 50569 51055 51294 51226 50816 50260 50357 50490 50620 50791 51558Cost of goods sold

Beginning finished goods 203 2850 1386 1900 3000 2424 4176 5187 4080 3172 2832 1338For sale 50283 53419 52441 53194 54226 53240 54436 55544 54570 53792 53623 52896

Ending finished goods 2850 1386 1900 3000 2424 4176 5187 4080 3172 2832 1338 344Total Cost of goods sold 47433 52033 50541 50194 51802 49064 49249 51464 51398 50960 52285 52552

66

Herbal Ice cream ProductSchedule of Cost of Goods Sold

Year 2012

1 2 3 4 5 6 7 8 9 10 11 12Direct materials

Beginning raw materials inventory 1932 1870 1545 793 1026 1267 642 1262 793 1191 799 1396Add: Purchases of raw materials 4750 4049 3688 4524 4594 3464 4750 3442 4270 3530 4911 4382Raw materials available for use 6682 5919 5233 5317 5620 4731 5392 4704 5063 4721 5710 5778Deduct: Ending raw materials inventory 1870 1545 793 1026 1267 642 1262 793 1191 799 1396 1033Raw materials used in production 4812 4374 4440 4291 4353 4089 4130 3911 3872 3922 4314 4745

Direct labor 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000Manufacturing overhead 34145 33925 33985 33875 33895 33515 33527 33453 33409 33611 33444 33495Total manufacturing cost 51957 51299 51425 51166 51248 50604 50657 50364 50281 50533 50758 51240Cost of goods manufactured 51957 51299 51425 51166 51248 50604 50657 50364 50281 50533 50758 51240Cost of goods sold

Beginning finished goods 344 310 895 704 1629 1456 3528 3264 4928 5664 4998 2110For sale 52301 51609 52320 51870 52877 52060 54185 53628 55209 56197 55756 53350

Ending finished goods 310 895 704 1629 1456 3528 3264 4928 5664 4998 2110 672Total Cost of goods sold 51991 50714 51616 50241 51421 48532 50921 48700 49545 51199 53646 52678

67

Herbal Ice cream ProductSchedule of Cost of Goods Sold

Year 2013

1 2 3 4 5 6 7 8 9 10 11 12Direct materials

Beginning raw materials inventory 1033 449 653 168 1189 928 233 673 635 346 977 45Add: Purchases of raw materials 4232 4731 4133 5662 3988 3538 4758 4158 3891 5035 3802 5757Raw materials available for use 5265 5180 4786 5830 5177 4466 4991 4831 4526 5381 4779 5802Deduct: Ending raw materials inventory 449 653 168 1189 928 233 673 635 346 977 45 737Raw materials used in production 4816 4527 4618 4641 4249 4233 4318 4196 4180 4404 4734 5065

Direct labor 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000Manufacturing overhead 33987 33899 33919 33927 33425 33417 33439 33425 33417 33718 33964 34279Total manufacturing cost 51803 51426 51537 51568 50674 50650 50757 50621 50597 51122 51698 52344Cost of goods manufactured 51803 51426 51537 51568 50674 50650 50757 50621 50597 51122 51698 52344Cost of goods sold

Beginning finished goods 672 308 1020 516 507 4350 4393 3420 3800 4246 2405 1148For sale 52475 51734 52557 52084 51181 55000 55150 54041 54397 55368 54103 53492

Ending finished goods 308 1020 516 507 4350 4393 3420 3800 4246 2405 1148 151Total Cost of goods sold 52167 50714 52041 51577 46831 50607 51730 50241 50151 52963 52955 53341

68

Herbal Ice cream ProductSchedule of Cost of Goods Sold

Year 2014

1 2 3 4 5 6 7 8 9 10 11 12Direct materials

Beginning raw materials inventory 737 933 43 267 494 371 113 67 81 151 1416 159Add: Purchases of raw materials 5337 3939 4888 4916 4317 4057 4342 4411 4489 5713 3493 5698Raw materials available for use 6074 4872 4931 5183 4811 4428 4455 4478 4570 5864 4909 5857Deduct: Ending raw materials inventory 933 43 267 494 371 113 67 81 151 1416 159 691Raw materials used in production 5141 4829 4664 4689 4440 4315 4388 4397 4419 4448 4750 5166

Direct labor 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000Manufacturing overhead 34449 33974 33929 33931 33900 33865 33875 33881 33909 34002 34021 34495Total manufacturing cost 52590 51803 51593 51620 51340 51180 51263 51278 51328 51450 51771 52661Cost of goods manufactured 52590 51803 51593 51620 51340 51180 51263 51278 51328 51450 51771 52661Cost of goods sold

Beginning finished goods 151 282 608 1630 1968 2752 4914 3980 3298 2865 1780 652For sale 52741 52085 52201 53250 53308 53932 56177 55258 54626 54315 53551 53313

Ending finished goods 282 608 1630 1968 2752 4914 3980 3298 2865 1780 652 417Total Cost of goods sold 52459 51477 50571 51282 50556 49018 52197 51960 51761 52535 52899 52896

69

Chapter 5

Financial Analysis

70

Hi CompanyProfit/Loss Statement

Year 2010

1 2 3 4 5 6 7 8 9 10 11 12Revenue

Sales 107550 134220 154350 119370 140430 154380 159750 170370 176910 194100 225780 282900Total Revenue 107550 134220 154350 119370 140430 154380 159750 170370 176910 194100 225780 282900

Cost of Good SoldMaterials 2550 2601 2692 2746 2773 2815 2843 2871 2957 3001 3091 3400Labor 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000Overhead 32395 32441 32524 32574 32600 32638 32610 32595 32615 32695 32895 33045Increase/Decrease in inventories -3488 -2407 1072 -2265 -436 4724 329 1731 -2127 2980 761 556

Total Cost of Goods Sold 44457 45635 49288 46055 47937 53177 48782 50197 46445 51676 49747 50001

Gross Profit 63093 88585 105062 73315 92493 101203 110968 120173 130465 142424 176033 232899

Operating ExpensesElectricity 2000 2040 2112 2155 2177 2210 2190 2175 2200 2250 2400 2500Telephone cost 2000 2200 2250 2300 2320 2320 2300 2270 2350 2350 2400 2400Water supply 300 306 317 324 328 333 325 325 320 350 400 450Advertising cost 3000 3500 3500 3300 3350 3350 3300 3370 3400 3400 3500 3500Depreciation 897 897 897 897 897 897 897 897 897 897 897 897Rent expense 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000

Total Operating Expenses 68197 68943 69076 68976 69072 69110 69012 69037 69167 69247 69597 69747

Net income before Operations -5104 19642 35986 4339 23421 32093 41956 51136 61298 73177 106436 163152

Operation Income (Loss)Interest expense 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500Total Operating Income 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500

Income (Loss) Before Income Taxes -24604 142 16486 -15161 3921 12593 22456 31636 41798 53677 86936 143652Net Income (Loss) for the month -24604 142 16486 -15161 3921 12593 22456 31636 41798 53677 86936 143652

Retained Earning beginning of month 0 -24604 -24462 -7976 -23137 -19216 -6623 15833 47469 89267 142944 229880Retained Earning -24604 -24462 -7976 -23137 -19216 -6623 15833 47469 89267 142944 229880 373532

71

Hi CompanyProfit/Loss Statement

Year 2011

1 2 3 4 5 6 7 8 9 10 11 12Revenue

Sales 289080 301830 305370 289980 294360 243090 222930 233550 242730 247140 269790 353700Total Revenue 289080 301830 305370 289980 294360 243090 222930 233550 242730 247140 269790 353700

Cost of Good SoldMaterials 3740 4001 4261 4431 4325 4061 3815 3872 3949 4009 4166 4583Labor 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000Overhead 33340 33568 33794 33863 33901 33755 33445 33485 33541 33611 33625 33975Increase/Decrease in inventories -2647 1464 -514 -1100 576 -1752 -1011 1107 908 340 1494 994

Total Cost of Goods Sold 47433 52033 50541 50194 51802 49064 49249 51464 51398 50960 52285 52552

Gross Profit 241647 249797 254829 239786 242558 194026 173681 182086 191332 196180 217505 301148

Operating ExpensesElectricity 2750 2943 3134 3200 3232 3100 2840 2870 2920 2990 3000 3300Telephone cost 2450 2510 2575 2440 2330 2225 2234 2476 2413 2557 2604 2598Water supply 495 530 565 568 574 560 510 520 526 526 530 580Advertising cost 3550 3300 3300 3200 3300 3400 3400 3300 3200 3200 3100 3000Depreciation 897 897 897 897 897 897 897 897 897 897 897 897Rent expense 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000

Total Operating Expenses 70142 70180 70471 70305 70333 70182 69881 70063 69956 70170 70131 70375

Net income before Operations 171505 179617 184358 169481 172225 123844 103800 112023 121376 126010 147374 230773

Operation Income (Loss)Interest expense 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500Total Operating Income 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500

Income (Loss) Before Income Taxes 152005 160117 164858 149981 152725 104344 84300 92523 101876 106510 127874 211273Provision (benefit) for income Taxes 112060 - - - - - - - - - - -

Net Income (Loss) for the month 39945.4 160117 164858 149981 152725 104344 84300 92523 101876 106510 127874 211273Retained Earning beginning of month 373532 413477 573594 738452 888433 1041158 1145502 1229802 1322325 1424201 1530711 1658585

Retained Earning 413477 573594 738452 888433 1041158 1145502 1229802 1322325 1424201 1530711 1658585 1869858

72

Hi CompanyProfit/Loss Statement

Year 2012

1 2 3 4 5 6 7 8 9 10 11 12Revenue

Sales 390120 327300 340980 321690 326670 286710 290280 252000 242770 247200 296850 361920Total Revenue 390120 327300 340980 321690 326670 286710 290280 252000 242770 247200 296850 361920

Cost of Good SoldMaterials 4812 4374 4440 4291 4353 4089 4130 3911 3872 3922 4314 4745Labor 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000Overhead 34145 33925 33985 33875 33895 33515 33527 33453 33409 33611 33444 33495Increase/Decrease in inventories 34 -585 191 -925 173 -2072 264 -1664 -736 666 2888 1438

Total Cost of Goods Sold 51991 50714 51616 50241 51421 48532 50921 48700 49545 51199 53646 52678

Gross Profit 338129 276586 289364 271449 275249 238178 239359 203300 193225 196001 243204 309242

Operating ExpensesElectricity 3450 3300 3350 3280 3288 2940 2946 2884 2850 2856 3872 3340Telephone cost 3000 3088 3060 2990 2972 2975 2846 2705 2790 2820 2859 2992Water supply 600 530 540 500 512 480 486 470 464 468 477 520Advertising cost 3000 2900 2800 2800 2900 2900 2900 2800 2800 2800 2700 2600Depreciation 897 897 897 897 897 897 897 897 897 897 897 897Rent expense 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000

Total Operating Expenses 70947 70715 70647 70467 70569 70192 70075 69756 69801 69841 70805 70349

Net income before Operations 267182 205871 218717 200982 204680 167986 169284 133544 123424 126160 172399 238893

Operation Income (Loss)Interest expense 14600 14600 14600 14600 14600 14600 14600 14600 14600 14600 14600 14600Total Operating Income 14600 14600 14600 14600 14600 14600 14600 14600 14600 14600 14600 14600

Income (Loss) Before Income Taxes 252582 191271 204117 186382 190080 153386 154684 118944 108824 111560 157799 224293Provision (benefit) for income Taxes 560957 - - - - - - - - - - -

Net Income (Loss) for the month -308375 191271 204117 186382 190080 153386 154684 118944 108824 111560 157799 224293Retained Earning beginning of month 1869858 1561483 1752754 1956871 2143253 2333333 2486719 2641403 2760347 2869171 2980731 3138530

Retained Earning 1561483 1752754 1956871 2143253 2333333 2486719 2641403 2760347 2869171 2980731 3138530 3362823

73

Hi CompanyProfit/Loss Statement

Year 2013

1 2 3 4 5 6 7 8 9 10 11 12Revenue

Sales 390960 344460 349740 354150 307620 304110 313290 305310 301470 330420 373440 541950Total Revenue 390960 344460 349740 354150 307620 304110 313290 305310 301470 330420 373440 541950

Cost of Good SoldMaterials 4816 4527 4618 4641 4249 4233 4318 4196 4180 4404 4734 5065Labor 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000Overhead 33987 33899 33919 33927 33425 33417 33439 33425 33417 33718 33964 34279Increase/Decrease in inventories 364 -712 504 9 -3843 -43 973 -380 -446 1841 1257 997

Total Cost of Goods Sold 52167 50714 52041 51577 46831 50607 51730 50241 50151 52963 52955 53341

Gross Profit 338793 293746 297699 302573 260789 253503 261560 255069 251319 277457 320485 488609

Operating ExpensesElectricity 3362 3296 3310 3314 2854 2850 2863 2860 2854 3122 3347 3600Telephone cost 3000 3112 3226 3104 3157 3172 3186 3207 3248 3284 3290 3300Water supply 530 508 514 518 476 472 481 470 468 501 522 580Advertising cost 2700 2770 2800 2800 2900 2900 3000 3100 3000 2900 2800 2900Depreciation 897 897 897 897 897 897 897 897 897 897 897 897Rent expense 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000

Total Operating Expenses 70489 70583 70747 70633 70284 70291 70427 70534 70467 70704 70856 71277

Net income before Operations 268304 223163 226952 231940 190505 183212 191133 184535 180852 206753 249629 417332

Operation Income (Loss)Interest expense 9800 9800 9800 9800 9800 9800 9800 9800 9800 9800 9800 9800Total Operating Income 9800 9800 9800 9800 9800 9800 9800 9800 9800 9800 9800 9800

Income (Loss) Before Income Taxes 258504 213363 217152 222140 180705 173412 181333 174735 171052 196953 239829 407532Provision (benefit) for income Taxes 1008847 - - - - - - - - - - -

Net Income (Loss) for the month -750343 213363 217152 222140 180705 173412 181333 174735 171052 196953 239829 407532Retained Earning beginning of month 3362823 2612480 2825843 3042995 3265135 3445840 3619252 3800585 3975320 4146372 4343325 4583154

Retained Earning 2612480 2825843 3042995 3265135 3445840 3619252 3800585 3975320 4146372 4343325 4583154 4990686

74

Hi CompanyProfit/Loss Statement

Year 2014

1 2 3 4 5 6 7 8 9 10 11 12Revenue

Sales 426150 390660 373470 377010 340230 299370 302970 311820 315660 341940 389730 440490Total Revenue 426150 390660 373470 377010 340230 299370 302970 311820 315660 341940 389730 440490

Cost of Good SoldMaterials 5141 4829 4664 4689 4440 4315 4388 4397 4419 4448 4750 5166Labor 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000Overhead 34449 33974 33929 33931 33900 33865 33875 33881 33909 34002 34021 34495Increase/Decrease in inventories -131 -326 -1021 -338 -784 -2162 934 682 433 1085 1128 235

Total Cost of Goods Sold 52459 51477 50572 51282 50556 49018 52197 51960 51761 52535 52899 52896

Gross Profit 373691 339183 322898 325728 289674 250352 250773 259860 263899 289405 336831 387594

Operating ExpensesElectricity 3758 3350 3316 3318 3295 3268 3276 3282 3300 3397 3402 3800Telephone cost 3100 3330 3240 3384 3474 3500 3420 3380 3356 3407 3430 3500Water supply 596 529 518 518 510 502 504 504 514 510 524 600Advertising cost 3200 3300 3000 3100 3300 3400 3500 3500 3400 3300 3100 3000Depreciation 897 897 897 897 897 897 897 897 897 897 897 897Rent expense 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000

Total Operating Expenses 71551 71406 70971 71217 71476 71567 71597 71563 71467 71511 71353 71797

Net income before Operations 302140 267777 251927 254511 218198 178785 179176 188297 192432 217894 265478 315797

Operation Income (Loss)Interest expense 4900 4900 4900 4900 4900 4900 4900 4900 4900 4900 4900 4900Total Operating Income 4900 4900 4900 4900 4900 4900 4900 4900 4900 4900 4900 4900

Income (Loss) Before Income Taxes 297240 262877 247027 249611 213298 173885 174276 183397 187532 212994 260578 310897Provision (benefit) for income Taxes 1497206 - - - - - - - - - - -

Net Income (Loss) for the month 297240 262877 247027 249611 213298 173885 174276 183397 187532 212994 260578 310897Retained Earning beginning of month 4990686 5287926 5550803 5797830 6047441 6260739 6434624 6608900 6792297 6979829 7192823 7453401

Retained Earning 5287926 5550803 5797830 6047441 6260739 6434624 6608900 6792297 6979829 7192823 7453401 7764298

75

1 2 3 4 5 6 7 8 9 10 11 12Assets

Cash 547641 545376 562934 545508 548993 566310 587462 620829 660500 717157 804854 949062Inventory 3488 5895 4823 7088 7524 2800 4104 2373 4500 1520 759 203Supplies 11079 11079 11079 11079 11079 11079 11079 11079 11079 11079 11079 11079Equipments 416180 416180 416180 416180 416180 416180 416180 416180 416180 416180 416180 416180Less accumulate -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992

Total Assets 975396 975538 992024 976863 980784 993377 1015833 1047469 1089267 1142944 1229880 1373532

LiabilityAccount Payable 1000000 1000000 1000000 1000000 1000000 1000000 1000000 1000000 1000000 1000000 1000000 1000000

Total Liability 1000000 1000000 1000000 1000000 1000000 1000000 1000000 1000000 1000000 1000000 1000000 1000000

EquityRetained Earning -24604 -24462 -7976 -23137 -19216 -6623 15833 47469 89267 142944 229880 373532

Total Equity -24604 -24462 -7976 -23137 -19216 -6623 15833 47469 89267 142944 229880 373532

Total Liability and Equity 975396 975538 992024 976863 980784 993377 1015833 1047469 1089267 1142944 1229880 1373532

Hi CompanyBalance SheetAt Year 2010

76

1 2 3 4 5 6 7 8 9 10 11 12Assets

Cash 736587.4 898168 1062512 1211393 1364694 1467286 1550575 1644205 1746989 1853839 1983207 2195474Inventory 2850 1386 1900 3000 2424 4176 5187 4080 3172 2832 1338 344Supplies 10852 10852 10852 10852 10852 10852 10852 10852 10852 10852 10852 10852Equipments 416180 416180 416180 416180 416180 416180 416180 416180 416180 416180 416180 416180Less accumulate -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992

Total Assets 1163477 1323594 1488452 1638433 1791158 1895502 1979802 2072325 2174201 2280711 2408585 2619858

LiabilityAccount Payable 750000 750000 750000 750000 750000 750000 750000 750000 750000 750000 750000 750000

Total Liability 750000 750000 750000 750000 750000 750000 750000 750000 750000 750000 750000 750000

EquityRetained Earning 413477.4 573594 738452 888433 1041158 1145502 1229802 1322325 1424201 1530711 1658585 1869858

Total Equity 413477.4 573594 738452 888433 1041158 1145502 1229802 1322325 1424201 1530711 1658585 1869858

Total Liability and Equity 1163477 1323594 1488452 1638433 1791158 1895502 1979802 2072325 2174201 2280711 2408585 2619858

Hi CompanyBalance SheetAt Year 2011

77

1 2 3 4 5 6 7 8 9 10 11 12Assets

Cash 1641821 1832507 2036815 2222272 2412525 2563839 2718787 2836067 2944155 3056381 3217068 3442799Inventory 310 895 704 1629 1456 3528 3264 4928 5664 4998 2110 672Supplies 6164 6164 6164 6164 6164 6164 6164 6164 6164 6164 6164 6164Equipments 416180 416180 416180 416180 416180 416180 416180 416180 416180 416180 416180 416180Less accumulate -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992

Total Assets 2061483 2252754 2456871 2643253 2833333 2986719 3141403 3260347 3369171 3480731 3638530 3862823

LiabilityAccount Payable 500000 500000 500000 500000 500000 500000 500000 500000 500000 500000 500000 500000

Total Liability 500000 500000 500000 500000 500000 500000 500000 500000 500000 500000 500000 500000

EquityRetained Earning 1561483 1752754 1956871 2143253 2333333 2486719 2641403 2760347 2869171 2980731 3138530 3362823

Total Equity 1561483 1752754 1956871 2143253 2333333 2486719 2641403 2760347 2869171 2980731 3138530 3362823

Total Liability and Equity 2061483 2252754 2456871 2643253 2833333 2986719 3141403 3260347 3369171 3480731 3638530 3862823

Hi CompanyBalance SheetAt Year 2012

78

1 2 3 4 5 6 7 8 9 10 11 12Assets

Cash 2441307 2653957 2871613 3093762 3270624 3443993 3626299 3800654 3971260 4170054 4411140 4819669Inventory 308 1020 516 507 4350 4393 3420 3800 4246 2405 1148 151Supplies 7677.6 7677.6 7677.6 7677.6 7677.6 7677.6 7677.6 7677.6 7677.6 7677.6 7677.6 7677.6Equipments 416180 416180 416180 416180 416180 416180 416180 416180 416180 416180 416180 416180Less accumulate -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992

Total Assets 2862480 3075843 3292995 3515135 3695840 3869252 4050585 4225320 4396372 4593325 4833154 5240686

LiabilityAccount Payable 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000

Total Liability 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000

EquityRetained Earning 2612480 2825843 3042995 3265135 3445840 3619252 3800585 3975320 4146372 4343325 4583154 4990686

Total Equity 2612480 2825843 3042995 3265135 3445840 3619252 3800585 3975320 4146372 4343325 4583154 4990686

Total Liability and Equity 2862480 3075843 3292995 3515135 3695840 3869252 4050585 4225320 4396372 4593325 4833154 5240686

Hi CompanyBalance SheetAt Year 2013

79

1 2 3 4 5 6 7 8 9 10 11 12Assets

Cash 4866205 5128756 5374761 5624034 5836548 6008271 6183481 6367560 6555525 6766612 7031310 7342442Inventory 282 608 1630 1968 2752 4914 3980 3298 2865 1780 652 417Supplies 8251.2 8251.2 8251.2 8251.2 8251.2 8251.2 8251.2 8251.2 8251.2 8251.2 8251.2 8251.2Equipments 416180 416180 416180 416180 416180 416180 416180 416180 416180 416180 416180 416180Less accumulate -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992 -2992

Total Assets 5287926 5550803 5797830 6047441 6260739 6434624 6608900 6792297 6979829 7189831 7453401 7764298

LiabilityAccount Payable 0 0 0 0 0 0 0 0 0 0 0 0

Total Liability 0 0 0 0 0 0 0 0 0 0 0 0

EquityRetained Earning 5287926 5550803 5797830 6047441 6260739 6434624 6608900 6792297 6979829 7192823 7453401 7764298

Total Equity 5287926 5550803 5797830 6047441 6260739 6434624 6608900 6792297 6979829 7192823 7453401 7764298

Total Liability and Equity 5287926 5550803 5797830 6047441 6260739 6434624 6608900 6792297 6979829 7192823 7453401 7764298

Hi CompanyBalance SheetAt Year 2014

80

Hi CompanyCash Flows Statement

At the Year 2010

1 2 3 4 5 6 7 8 9 10 11 12Operating Activities

Cash received from customers 107550 134220 154350 119370 140430 154380 159750 170370 176910 194100 225780 282900Cash paid for inventory 3488 5895 4823 7088 7524 2800 4104 2373 4500 1520 759 203Cash paid for supplier 11079 11079 11079 11079 11079 11079 11079 11079 11079 11079 11079 11079Cash paid for employee 41000 41000 41000 41000 41000 41000 41000 41000 41000 41000 41000 41000Cash paid for Rental 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000Cash paid for interest and Taxes 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500

Net cash flows from operating activitie -27517 -3254 17948 -19297 1327 20001 24067 36418 40831 61001 93442 151118

Investing ActivitiesCash paid for equipment 427259 0 0 0 0 0 0 0 0 0 0 0

Cash flows from investing activities 427259 0 0 0 0 0 0 0 0 0 0 0

Financing ActivitiesPaid for Account Payable 0 0 0 0 0 0 0 0 0 0 0 0

Cash flows from financing activities 0 0 0 0 0 0 0 0 0 0 0 0

Net change in cash during the month 399742 -3254 17948 -19297 1327 20001 24067 36418 40831 61001 93442 151118Cash at the beginning of the month 0 399742 396488 414436 395139 396466 416467 440534 476952 517783 578784 672226Cash at the end of the month 399742 396488 414436 395139 396466 416467 440534 476952 517783 578784 672226 823344

81

Hi CompanyCash Flows Statement

At the Year 2011

1 2 3 4 5 6 7 8 9 10 11 12Operating Activities

Cash received from customers 289080 301830 305370 289980 294360 243090 222930 233550 242730 247140 269790 353700Cash paid for inventory 2850 1386 1900 3000 2424 4176 5187 4080 3172 2832 1338 344Cash paid for supplier 10852 10852 10852 10852 10852 10852 10852 10852 10852 10852 10852 10852Cash paid for employee 41000 41000 41000 41000 41000 41000 41000 41000 41000 41000 41000 41000Cash paid for Rental 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000Cash paid for interest and Taxes 131560 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500 19500

Net cash flows from operating activitie 42818 434568 438622 424332 428136 378618 359469 368982 377254 381324 402480 485396

Investing ActivitiesCash paid for equipment 3520 0 0 0 0 0 0 0 0 0 0 0

Cash flows from investing activities 3520 0 0 0 0 0 0 0 0 0 0 0

Financing ActivitiesPaid for Account Payable 250000 0 0 0 0 0 0 0 0 0 0 0

Cash flows from financing activities 250000 0 0 0 0 0 0 0 0 0 0 0

Net change in cash during the month 296338 434568 438622 424332 428136 378618 359469 368982 377254 381324 402480 485396Cash at the beginning of the month 823344 1119682 1554250 1992872 2417204 2845340 3223958 3583427 3952409 4329663 4710987 5113467Cash at the end of the month 1119682 1554250 1992872 2417204 2845340 3223958 3583427 3952409 4329663 4710987 5113467 5598863

82

Hi CompanyCash Flows Statement

At the Year 2012

1 2 3 4 5 6 7 8 9 10 11 12Operating Activities

Cash received from customers 390120 327300 340980 321690 326670 286710 290280 252000 242770 247200 296850 361920Cash paid for inventory 310 895 704 1629 1456 3528 3264 4928 5664 4998 2110 672Cash paid for supplier 6164 6164 6164 6164 6164 6164 6164 6164 6164 6164 6164 6164Cash paid for employee 41000 41000 41000 41000 41000 41000 41000 41000 41000 41000 41000 41000Cash paid for Rental 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000Cash paid for interest and Taxes 575557 14600 14600 14600 14600 14600 14600 14600 14600 14600 14600 14600

Net cash flows from operating activitie -292911 204641 218512 198297 203450 161418 165252 125308 115342 120438 172976 239484

Investing ActivitiesCash paid for equipment 120 0 0 0 0 0 0 0 0 0 0 0

Cash flows from investing activities 120 0 0 0 0 0 0 0 0 0 0 0

Financing ActivitiesPaid for Account Payable 250000 0 0 0 0 0 0 0 0 0 0 0

Cash flows from financing activities 250000 0 0 0 0 0 0 0 0 0 0 0

Net change in cash during the month -42791 204641 218512 198297 203450 161418 165252 125308 115342 120438 172976 239484Cash at the beginning of the month 5598863 5556072 5760713 5979225 6177522 6380972 6542390 6707642 6832950 6948292 7068730 7241706Cash at the end of the month 5556072 5760713 5979225 6177522 6380972 6542390 6707642 6832950 6948292 7068730 7241706 7481190

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Hi CompanyCash Flows Statement

At the Year 2013

1 2 3 4 5 6 7 8 9 10 11 12Operating Activities

Cash received from customers 390960 344460 349740 354150 307620 304110 313290 305310 301470 330420 373440 541950Cash paid for inventory 308 1020 516 507 4350 4393 3420 3800 4246 2405 1148 151Cash paid for supplier 7677.6 7677.6 7677.6 7677.6 7677.6 7677.6 7677.6 7677.6 7677.6 7677.6 7677.6 7677.6Cash paid for employee 41000 41000 41000 41000 41000 41000 41000 41000 41000 41000 41000 41000Cash paid for Rental 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000Cash paid for interest and Taxes 1018647 9800 9800 9800 9800 9800 9800 9800 9800 9800 9800 9800

Net cash flows from operating activitie -736673 224962.4 230746 235165 184792 181239 191392 183032.4 178746.4 209537.4 253814.4 423321.4

Investing ActivitiesCash paid for equipment 3520 0 0 0 0 0 0 0 0 0 0 0

Cash flows from investing activities 3520 0 0 0 0 0 0 0 0 0 0 0

Financing ActivitiesPaid for Account Payable 250000 0 0 0 0 0 0 0 0 0 0 0

Cash flows from financing activities 250000 0 0 0 0 0 0 0 0 0 0 0

Net change in cash during the month -483153 224962.4 230746 235165 184792 181239 191392 183032.4 178746.4 209537.4 253814.4 423321.4Cash at the beginning of the month 7481190 6998037 7223000 7453746 7688912 7873704 8054943 8246336 8429368 8608115 8817652 9071466Cash at the end of the month 6998037 7223000 7453746 7688912 7873704 8054943 8246336 8429368 8608115 8817652 9071466 9494788

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Hi CompanyCash Flows Statement

At the Year 2014

1 2 3 4 5 6 7 8 9 10 11 12Operating Activities

Cash received from customers 426150 390660 373470 377010 340230 299370 302970 311820 315660 341940 389730 440490Cash paid for inventory 282 608 1630 1968 2752 4914 3980 3298 2865 1780 652 417Cash paid for supplier 8251.2 8251.2 8251.2 8251.2 8251.2 8251.2 8251.2 8251.2 8251.2 8251.2 8251.2 8251.2Cash paid for employee 41000 41000 41000 41000 41000 41000 41000 41000 41000 41000 41000 41000Cash paid for Rental 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000 60000Cash paid for interest and Taxes 1502106 4900 4900 4900 4900 4900 4900 4900 4900 4900 4900 4900

Net cash flows from operating activitie -1185489 275900.8 257689 260891 223327 180305 184839 194370.8 198643.8 226008.8 274926.8 325921.8

Investing ActivitiesCash paid for equipment 3460 0 0 0 0 0 0 0 0 0 0 0

Cash flows from investing activities 3460 0 0 0 0 0 0 0 0 0 0 0

Financing ActivitiesPaid for Account Payable 250000 0 0 0 0 0 0 0 0 0 0 0

Cash flows from financing activities 250000 0 0 0 0 0 0 0 0 0 0 0

Net change in cash during the month -932029 275900.8 257689 260891 223327 180305 184839 194370.8 198643.8 226008.8 274926.8 325921.8Cash at the beginning of the month 9494788 8562759 8838659 9096348 9357239 9580566 9760871 9945709 10140080 10338724 10564733 10839660Cash at the end of the month 8562759 8838659 9096348 9357239 9580566 9760871 9945709 10140080 10338724 10564733 10839660 11165581

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Chapter 6 Risk Management

Risk analysis of projects

For risk, it means the opportunity of herbal ice cream will be aced with the

problem expected to occur in the future. Operating is losses or can not perform a

successful plan or target. Implementation of all activities will be faced with the risk 2

types. The first risk is the certainty risk that is caused by factors within company. It will

occur at the level of herbal to face certainly and do not avoid. These risks can happen

from the first phase of operations and currently operating. The second risk is uncertainty

risk 2or the risks happen from external factors. Its herbal ice cream can not be predicted

and beyond the control but can prevent or eliminate the risks incurred. The company has

identified risks that may occur as follows

.

External Risk

Risks caused by external factors are the neither risk that its herbal ice cream can

not predict the number of sales it is beyond the risk management and operational

executives and employees of the company. So the company has a good plan to prevent

risks that may happen from external influences and to support the risks that the

company will face in the future. Risks happen from external factors include.

1. Rick from natural disasters

Season and the current climate is uncertain and can not predict all that will occur when a

natural disaster. The natural disasters are that effect for our company such as floods,

fire, storms and power failure. So our company has the prevention measures natural

disasters. The problem of floods in rainy season solve by cover land for 1 meter. Heavy

problems solve the structure around the company made from steel plants that are

resistant. A fence around the company area will be preventing storms.

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2. Technologies can affect business in the current. herbal ice-cream business is growing

rapidly and has many entrepreneur. Many types of businesses can gain more profits

when in communications technology can reduce the number of intermediaries. And

many businesses have closed because there was no need to operate longer.

Technological affect to changes the lives of people and business by the internet. In

Phuket is widely used Internet whether communications or entertainment. Today people

known that technologies move along dynamically with the world changes rapidly over

time.

Risk from Technology

3. Risk in Direct and Indirect Competitor

Herbal has cooled direct text of both the ice cream and herbs directly to the

premium ice cream, which contains with Ice Cream Dairy Princess Inc. Ice Cream

Winners new Ice Cream of-METAL here. Ice Cream Ice Cream BAD Systems Inc.

Ventures mine ice Cream Inc Baton characters as the Big. Gelato Ice Cream has and ice

cream store with a David Inc. the section of the competition. Detour will be in the form

of ice cream more general level, such as stem completion by Cabinet Ice Cream Frozen

and ice cream scoop, including Wall ling Ice Cream Business Management. United Meg

Noble licks ice cream Ice Cream and other retail in addition, various sweets. It is

considered that the Herbal indirect competitors as well.

In addition to ice cream in general found that there are several products that can

substitute for consumption. Ice cream is sweet as the cool Blue hard drive or other local

ice cream and other sweets group. Drink different with not just the availability of snacks

such as ice cream can be a total replacements depending on the level consumer

satisfaction in conjunction with ice cream.

Consideration will be found in products that can replace the ice cream making

because the market will be easy to replace with another product they interpose the

opportunity to market to expand into rape ice cream market value to more markets as

well the dessert if looking in different parts of the channel memory. Sick through food

may. Knoxville is considered pairs of indirect message as well. So look at that ice

cream may have the opportunity to enter replacement value of food not less sweet. Is

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part of the ice cream market with a broad base of more and a higher market value in the

future too.

4. Risk of customers need and customer behavior

Needs of customers or consumers are driven to make operators are parties to

find new something to respond the customer needs increasing. Often we tend to see how

the new business that we've seen previously. Operator's customers pay 100-200 baht per

week for ice cream business but next time may reduce purchasing from the past. Factor

that affects this business for customer behavior such as, Consumers always like to see

the new thing, consumers want to m meet a variety of products and options of products

more. Consumers want value for money spent, consumers want convenience on traffic

and parking, Customers do not want to wait for a long time, Customers like the

atmosphere to support them. The most things that attract consumers are time and place

that have benefit for them.

Internal Risk

Risks of its herbal ice cream must face often is the risk factors within the market

and company. This may be important for several reasons including. Operating risk is

risk that can be visible and obstruction control infrastructure because of these risks

under the company or management team's operations. The Company's operations may

face the risk of these characteristics is.

1. Financial Risk

Financial Management need to continue with prudent because in is the area that

have many equipments and materials and have to use money in term of operation cost

This is the type of risk. No budget to work as assigned. Within the time specified. This

may be due to the estimated costs of activities, pricing errors and error decision errors.

2. Risk in the staffs

Risks arising from aware of the ability to works and characters of each

employee, so this may cause problems. Because the company can be selected as a

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feature only and it effect to the company must spend time and money in training

employees. The important for company is, can not realize the habits of employees. It

brings to dishonest, lazy and not on time, then it cause losses to the company. The work

in company is not very complex. Company needs employees that are important variable

in the operations, packaging, and contact with the customer. These are the company's

core activities. When the employees have good integrity and diligence can help

company better. If employees are lazy and dishonest, it makes the manufacturing,

operations, by lack of effective. In addition to affecting the company's revenue and also

affect the company's impression. Our company will give the good training for our staff.

3. Risk in Performance of the equipments and materials

Because the company uses few equipments and materials, so it has less chance

to damage. The possibility to damage from processes of machines is most in errors in

the work of the producer the herbal ice cream. If the equipments error or fail, the ice

cream will lack in our shop. It is a main factor in production and effect to can not

produce product for the customer.

4. Risk in Health and Safety

Company is realizing the importance of health all employees. If employees are

healthy then they can work hard. The company is a manufacturer of herbal ice cream

and if employees are discomfort, it occurs to spread disease into the products and harm

to consumers. Therefore, company is very strict control and disease prevention for

employees, which will impact on customers. We have a good annual checking for our

health for ensure that our staffs have good healthy and good performance.

5. Risk in Communications

The communication between manager and employee may have error because the

employee comes from local in Phuket. They will speak local language such as when

employee order product from other place may be confused. The problem between of

local language and Thai language has very important. Therefore, the company should

receive employee that have education at least undergraduate or mattayom 6 for the

efficiency in communications with the customers.

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Summary

Hi company’s humble beginning start in Thailand in 2010 from the sheer

determination and hard work of a bright and enterprising young man. Anuchyd Gingjai

joined hands in making their dream of a successful Thai company a reality. It was in

2010 that Anuchyd Gingjai with a small team of passionate and committed group of

employees started to build “Herbal Ice-cream” which located in Big C Chiang Rai,

Thailand. All ingredients are Thai herb and import in Thailand. The main objective of

the company was to establish good health which would benefit the people.

Form early attempts at creating herbal ice-cream into 5 categories which are

made by Chilli, Lemon, Garlic, Tomato, and Sesame. At the beginning, company loses

a lot of profit because Thai people didn’t accept our product which is a new and

different product. About foreigner, they have good feedback to our company but Chiang

Rai has a few foreigners. They thought that to change location into Phuket, Thailand

because it is a famous travelling place in Thailand including the world and focus on

Traveler group. In addition many people come to visit there especially foreigners. He

changed location form Chiang Rai to Phuket later. We have good respond from a lot

foreigners and Thai people later. When company had profit increasingly, he has

developed another herbal ice-cream into 12 categories which are Aloe vera, Tamarind,

Ginger, Lemongrass, Pomegranate, Roselle

In addition, we choose to invest in Thailand where there are many foreigner

travelers to visit here. Our business is herbal ice-cream including herbal juice and herbal

bakery. (Horizontal Integration) Why do we choose this business? Because we think

herbal ice-cream is new product for Thai people and we hope our customer are happy

with our ice-cream including atmosphere around our shop where are mix between Thai

and Modern style smoothly so it makes customers feel comfortable like their home. It

located in Patong Beach, Phuket. From researching of table of internal tourism in

Phuket, you can see that people who visit to Phuket are mainly foreigners who like to

eat ice-cream or average of quantity of frozen dessert is 70%. In addition location is

and Turmeric. Moreover they have served

Kissy and Ohla Ohla sets which are menu set for customers want to eat a set. We serve

59 baht per cone, 89 baht for Kissy and 159 for Ohla Ohla set and 29 baht per scoop

normally.

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appropriate for selling herbal ice-cream which is different from competitors and we are

the fist investor who sells the kind of product at here (Market Development). Moreover

if we have some problems, we will solve the problems by regroup through cost and

asset reduction (Retrenchment).

By the way Hi Company borrows money from the bank for investment. We

suppose that we can use payback period in 5 years (start in 2011). About illustration

below shows you about sale forecast of Hi Company in 5 years (2010-2014)

Year Percentage Net Profit (baht)

2010 4.94% 443,132

2011 17.29% 1,550,851

2012 16.90% 1,516,180

2013 29.78% 2,671,510

2014 31.09% 2,790,412

Total 8,972,085

Moreover company set vision and mission statement for running business

smoothly. Our vision is “We will give standard and quality to customers and make them

feel happy and healthy and close to them forever” and mission following by:

1. To choose the best quality equipment and product.

2. To keep standard recipe.

3. To check and maintain equipment to ready to use.

4. To train employees seriously to ready to serve

5. To make atmosphere as your home

6. To support promotion or discounts on holiday

About future plan, we suppose that we will expand branch into every province

in Thailand including create website for promoting our product. We will create new

taste and menu set as Ohla Ohla and Kissy including new product which is made by

Thai herb such as bakery, cookie and so on. We will serve special promotion for

customer in special holiday as Valentine Day, we will set special menu for couple.

Finally we will make customers are impressive and interested in our product

increasingly by keep standard in product including shop, to keep modern style.

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1. Mr. Jukkawan Ornket ID: 5031207002

Tel: 086-6752494

E-mail: jb.greygoosze@hotmail.com

2. Miss Chanaporn Phudsee ID: 5031207005

Tel: 084-0479559

E-mail: aood_aood999@hotmail.com

3. Miss Paphawarin Chairin ID: 5031207017

Tel: 086-6544698

E-mail: chokypinkgirl@hotmail.com

4. Mr. Pranitan Akkaranarakul ID: 5031207018

Tel: 083-2776494

E-mail: boy_macxide@msn.com

5. Miss Pornpan Srisuk ID: 5031207021

Tel: 087-3831181

E-mail: cho_arm@hotmail.com

6. Miss Patsathorn Pongjarean ID: 5031207024

Tel: 089-9531783

E-mail: patong_tuang@hotmail.com

7. Mr. Peerapat Poothong ID: 5031207026

Tel: 085-0324998

E-mail: pperapat@hotmail.com

8. Mr. Arthit Kaewbunpan ID: 5031207045T

Tel: 087-1800192

E-mail: arthit_phai@hotmail.com