1

DécorPottery

Present To

Aj. Chaiyawat Thongintr

By

1.Worazana Horprayoon 5031207114

2.Angkana Nantachai 5031207132
3.Akepailin Wainum 5031207136
4.Thanyalak Ruamtham 5031207142
5.Nitra Nilsawit 5031207144
6. Preyanee Kityanurak 5031207147
7. Suphachet Simma 4931207109

Hospitality industry management

Section 01

Project feasibility and study evaluation

Semester 1/ 2552
Mae Fah Luang University

2
 Preface
This report has objective for study about project feasibility and to practice for
planning marketing, financial, to survey, and study before do a business. This report has
content about detail of company’s name and history and information analysis, This report
will explain with exhaustively, for the reader see and consider before do a business and
for us, to know hoe to do business. And the last we have to saying Thank you for
Aj.Chaiyawat Thongintr for his good advice that makes this report succeeds. We hope
this report is useful for reader more or less and if there has anything not completely, we
are apologizing for that therein.

Manipulator

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 Content

Introduction

- Background and Significance of the Project 1

- Project Objective
- Benefits of Project
-Activities/Time Frame

Industry Profile 10

-Nature of Industry
-Situation of Industry
-Product/Service (in General)
-Vision
-Mission
-Strategy

Market Feasibility Study 16

- Market Analysis
- General Environment Analysis
- Competition Analysis (3C Analysis)
- Competitor Analysis
- Customer Analysis
- Competitive Analysis
-STP Analysis
-Marketing Mix Strategy
-Sales Forecast/Profit Estimation
-Marketing Expenses
-Conclusion

Technical Feasibility Study 28

- Production and Operations Analysis

- Product Characteristics
- Production/Services Process
- Location
- Facility Layout
- Machine/Tools/ Equipments
- Logistics Management
- Facility Management
- Machine/Tools/ Equipments

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 - Cost of Investment
Pre-Operating Cost
- Investment Cost
Land
Buildings
Equipments
Tools
Depreciation
- Operating Cost
Raw material Cost
Direct Labor Cost
Overhead
- Management Analysis
Administration Cost
-Conclusion

Financial Analysis 60

- Profit/ Loss Statement

- Cash Flow
- Balance Sheet
- All financial Statements are in monthly base.
-
Risk Management 64

Risk management
External risk
Internal risk
Five force Analysis
Risk analysis
The way to reduce risk

Summary 71

Appendix 75

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 Decor Pottery
Introduction

Background

DécorPottery produce the ceramics plant pot. Would not deny that current affairs
of the home furnishings store a type of ceramics is a business that is becoming popular.
Who are interest to open a large business, but how the shop successfully and have a
unique selling point with their own ideas and design. A combination of materials and
devices with unique home furnishings. We produce plant pot as home decorative because
its style is very modern and suitable for new generation people.
From the financial information Export of ceramics in Thailand five main
categories. 2551 (January – November) found that the value of 15,018.08 million baht,
down from the previous year. 2550 during the same period 3.69 percent when combined
with other products, ceramics and found that the year 2551 (January-November) the total
value.29.604.35 million bath, an increase over the same period in 2550 percent. When
considering each type found in 2551 (January.-November.) Consumer dinnerware (dishes
made of ceramic) is the most export value compared with other products. Exports
accounted for 17 percent of all export ceramic, followed by the bathroom, tile floor.
Motions wear twist off the wall and c, gift and jewelry, with the power and Loktgwi
14,13,3 and 3 per cent. Respectively other ceramic products accounted for 50 per cent
(the chart 1) the export market of Thai ceramics in 2551 (January.-November) found that
Japanese market. Thailand exports the most is 13,182.6 million baht. Industry
manufacturing the type of the decorative in Thailand, most labor is the main policy,
particularly skilled workers because of production. This category requires the ability to
manufacture products, design patterns. Most entrepreneurs look to small and medium-
sized factories. Indicated ceramics decorative is popular in the present. And it was the
interest business, so décor pottery create new product design to customer for up the
ceramics market in Thai have ability to compete as much as possible.
We decide to do learn about this product because we interested in the decorative.
Nowadays there are many places that need to décor; however the hotel, coffee shop,
restaurant and others, plant pot are the popular equipment that they consider. Company
that produce the pot are quite a bit, some of them are the export company especially pot,
not including others Ceramics Company that have pot in their product. Indicated that
there are many competitive markets, to be the new competitor is difficult, so we create
the idea that different from others and interesting, high class and valuable but doesn’t
expansive, because we make it by ceramics. There are many companies that produce
plant pot, and there is little company to produce the look strange product. That is the
initiative of inspiration to create idea to learn about the feasibility of this product.
DécorPottery not create the ordinal product, doesn’t ordinal plant pot, not in the garden,
not only show and plant, but we have more function in the modern style. Generally we
plant in the pot and take water to them, so we think that” How great if plant pot watering
themselves” and “How great if plant pot not only for plant”.

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Objective

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

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

Project benefit

- Know about the growing and possibility of pottery ceramics.

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

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Procedure

1. Meeting and making Decisions about business project and background, objective
and result.
2. Project planning. Set vision, Mission and position that we will be and set the
strategy.
3. Market analysis and Budgeting cost, thing about Environment, political,
Economy, Social and Technology
4. Think about product characteristic and prepare material, machine, equipment, etc,
to make the product and contact the supplier. After that produce product.
5. Controlling process
6. Financial statement analyzing
7. Promoting and distribute the product.

Time Frame

Gantt Chart

A
B Completed

C
D Incompleted

E
F
G
Current week 2-18

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A: Meeting and making Decisions about business objective
B: Project planning
C: Market analysis
D: Technical feasibility study
E: Financial analysis
F: Risk management
G: Summary

Organizer

1. Ms.Worazana Horprayoon
2. Ms.Angkana Nantachai
3. Ms.Akepailin Wainum
4. Ms.Tanyalak Ruamtham
5. Ms.Nitra Nilsawit
6. Ms.Preeyanee Kityanurak
7. Mr.Suppachet Simma

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Industry Profile
History of product

Since Rattanakosin period 1 reign times begins to restore but be ordering from
China by give the Thai artist to draw Thai painting and send Thai technician go to control
design writing also. The pottery that order the most are a dish, bowl, earthen jar, a
spittoon and a cup, design that write to is the Thai painting and write a color on cup white
ground, write name of Thai porcelain with designs in five colors example write a color on
cup ground such as draw garuda, Leo, and the figure of deva appear that have the skillful
more Ayudhya time.
2 reign times the Thai artist have thrives in skillful more and more the pottery that
order from China as a result think to adjust shape, design and have new design such as
rose design, china design such as china flower design , Leo design, then bring to adjust to
suit with favor of Thai by use gold color to writing .Cup of Thailand that very favor is the
cup that order from 2 reign which call of Som-dej-phra-sri-soo-ri-yen because she was
order by own.
3 reign times have the ordering goods from the foreign countries as much as
necessary but His Majesty care to restore the pottery in the country that is to say he care
to do the glazed tile roof, which is the decorations by used the kiln like Tu-Rieng.
4 reign times because of Thai envoy which went to China at B.E.2395 was rob by
criminal then have no sending Thai envoy goes to the China again and have no sending
technician Thai go to look around doing pottery also. The pottery from China was
ordering by Thai merchant then the design of pottery is porcelain then the pottery from
China are porcelain design and mostly drawing design from China.
5 reign times which in the time of very progress. The education about academic
matter of then expand extensively the pottery that order to come in trade in Thailand,
there is both of Chinese, Japan and the Europe. In this period admire to use and design of
Europe but the order to do are the Thai shape as for from Japan mostly were the crockery
and decoration in order that because Japan begins to copy of Chinese and in that time in
Thailand has doing especial design writing on the pottery only.
6 reign times Thailand begins to have a factory to produces a kind of pottery
which are complexion rough , such as , pot , big jar , a basin and an earthen jar , which ,
there is both of a kind coats and don't coat.
7 reign times B.E.2475 after has administration change, the government will try to
resuscitate National economy, by permit industry entrepreneur more and more.
the pottery is the one industry , that have encourage , and have person take an interest
pretend the industry in a family , in the North , northeast , and center part , the products
that can produce at that time is , big jar , basin , and an earthen jar , good complexion
products that can produce are use the raw material from the foreign countries.
8 reign times and 9 reign times ( At present ) engaging in business pottery
industry or , the ceramic industry , if , will give effective good must live the theory and
the Technology attend , assemble with the quality of the raw material that use.
development the ceramic industry in the part of the academic and the Technology in
Thailand , Department of Science Service , science ministry , the Technology and the
energy , contribute to greatly in year B.E. is 2478 Department of Science Service , get
begin operate about the pottery , later in year , B.E.2479 have started personnel
development s about the pottery by sending staffs goes to take the training in the foreign

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countries already comes back to develop the personnel of government academic
department and the Technology and get do the education researches the raw material by
research ,analyses and test and get do the education researches the raw material , by the
patrol , analyze , and test , the raw material is in country , such as , marl and kind stone
that use do pottery products from the research and the analysis research , Thailand has
raw kind good a large amount material , can use do kind of good pottery , cause have the
investment builds pottery factory goes up
At B.E 2503 Board of Investment, (BOI) get the notice to support and encourage
the investment in ceramic industry business, thus, in year B.E. 2508 2503 then have
ceramic factory happen 8 places which receive a card encourages the investment. The
products that produce to have the tile, the tile covers the wall, mosaic tile, and the
sanitary ware at this B.C. 2508. A council develops the economy and National Prime
Minister's office social get support by give the project develops products pottery industry
stay in the plan develops the economy and National social. since , 1 map end until 4 maps
now the ceramic industry progresses and develop to go to at most , there is a ceramic
factory large-sized about 10 a factory , be in Bangkok , and a province is near to , small-
sized factory scattered to nationwide. especially in the Lampang about 50 a factory , these
factory produces a cup , bowl , sanitary ware , mosaic , the tile , the tile decorates ,
electric insulator wall is electricity , and a brick builds , production enough quantity
builds [ wasp ] using i country and still export to sell to the foreign countries in year B.E.
2528 about 500 million baht.
in His Majesty the King Bhumipol Aduldej of Thailand time, present reign,
science ministry, the Technology and the energy, there are 2 affiliated with institutes
which do the research and develop the ceramic industry are the center research and
industry pottery development, Department of Science Service and a branch researches
metal industry and ceramic industry, Thailand Institute of Scientific and Technological
Research.

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Natural of product

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

1. baked clay pottery is the pottery that us used long ago can seek easy and the price is
inexpensive the character of the pottery has hole which help ventilate and ventilate the
moistness well then its cause to plant root receives enough oxygen and have to grow up
well and the temperature of gold not tall too much especially
2. in the summer the pottery can to destroy and eradicate the pest easy by the go to a
sauna or smoke with chemicals by don't be contorted but have defective is high weigh
and nowadays expensive when compare with plastic pottery , easy broken when use go to
for a long time and will have the moss goes up round the pottery ( because the
moistness )to see dirty and difficult to wash clean more plastic pottery.
3. baked clay pot coats , blue patterns pot , and ceramic pot , will better the
earthenware which use get long ago by have no a problem easy to wash clean and not
have the moss goes up round the pot , the color doesn't change but the price will
expensive more than other pot.
4. Cement pot very endure and modern shape more than other can do various colors
but have defective such as high weigh very.
5. Plastic pot have price cheap , the weight is light ,easy to clean , have no problem
about moss keep moistness well more than baked clay pot , grow slow dry , not water
extremely often but have fault because of the character of dark pot has no hole air to
ventilates not convenient if more water will make the water be stagnant may cause to
plant root decays can die and the temperature of grow very high in the summer
especially plastic black pot , plastic not durable pot be usable for a moment will broken
must change new pot.
6. The pot from nature material such as the coir include other utensils for example,
wood pot, the pot aforementioned have the character differently the purpose is for to
stand or hang decorate area all place.
7. The pot decorates the place especially the pot decorates that don't use to grow the
tree directly but is the pot that design specially beautifully for use put the tree shows suit
the place and the utensils that can use to support or take the pot grows the tree adds down
go to for see beautiful increasingly but depend on the decoration which we must take the
wood in earth pot comes to add overlap such as such as , wicker basket , bamboo basket
weaves , rattan , aluminum , glazed tile kind this pot emphasizes the beauty is a principle
, like to apply have interior decoration a building , home , hotel , office or the other place
and mostly have high price and must maintain by avoid water especially kind of wooden
bamboo pot weaves or rattan as a result , make can be usable long time.

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Size and the figure of the pottery

Generally size of the pot will use since 6 inch (diameter) 8 inch 10 inch until 12
inc if is baked clay size pot will should not exceed 12 inch because too much to fix strong
enough and easy to broken if have to use big size this more should choose kind of pot
coat will better and we can separate the pot follow tree that will grow also such as
1. Big tree such as banyan tree, Ta-go tree, Janpha tree and Mok tree.
2. Garden tree is small-sized and high not exceed 1 meter.
3. Water wood has 2 kind are
- Water skin such as lotus, short pot and width.
- Stem over the water such as reed.
4. The tree for collect must take care closely and specially because have high
price such as Bonsai.
5. The wood hangs or climber some kind also use ordinary wood pot ,grow down
the earth some kind hold with material to grow such as the coir .

The pottery separate follow procedure

1. The ordinary stand pottery is the pot stands ordinary is standard pot which the pot
that have the width , narrow buttocks by has the wideness of the diameter equals to the
height or the depth of the pot such as 6 inch will have the diameter of 6 inch and has
the height or depths 6 inch also this kind of pot uses to grow the tree in generally such as
the wood is short-lived or garden old tree long such as rose all right because there is the
material or grow enough for root system will can grow up. The depth of the pot will help
to give can support bush well but often have trouble about wet earth if a hole lets off
blocked water cause the root system can get into trouble.
2. The short pot (Azalea Pots) the character resembles pot standard but will have
the a little depth more than because the depth of the pot equals to the area of the diameter
of pot width it convenient for the flowering plant has bush and close crowded but short
tree such as such as Gloxinia and African Violet because of this kind of pot has short
character , pot wide buttocks more than the pot standard then the tree easy to die have the
strengthen and see beautiful and not waste the material for grow.

3. Tray pot (Pans) is the pot buttocks shallow like frying pan, the depth or height
of the pot will equal to the half of the diameter of pot width such as 8 inch width but
will deep just 4 inch etc. Tray pot or potn buttocks shallow it convenients for to
grow like stem and garden some kind tree that have short bush and expand such
as the Christmas tree besides the pot still use to the utensils to the seed for
cultivate well as well because of there is shallow buttocks makes the earth cultivates
not wet seed not consumed the earth cultivates light weight dislocates convenient and
like to use grow the tree collects such as the Bonsai.

4. The pot hangs if is ordinarily as a result will have the pot hangs wire there is knit
and use other material can modify such as glass bottle, bottle pet of beverage recycle or
other.
5. Baked clay pot likes to have hole use grow especial type tree the pot likes this can
make easy to evaporate and dry fast more plastic pot , glass or metal
Vision

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“We create fashionable design of flowerpot”

Mission

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

2. Distribute the product to customer.
3. Export product to global market.
4. Make quality product and make sure to customer.
5. Make and distribute to community.

Décor Potteries Strategy

1. Corporate level
If we use many strategies we will take a lot of money then our company will
have many strategies to set the limits and way to get the high profit.

Integration strategies
– Forward integration, the company set up to subsidiaries that distribute
or market products to customers or use the products themselves.
– Backward integration, the company set up the factory and have the raw
material of themselves and can buy the material for produce the
pottery to other also.
– Horizontal integration, find more monopolistic and produce all
component of pottery raw materials by own.

Intensive strategies
- Market penetration, for penetrate the market our company have
promotion to sell the product is when buy 1 will get 1 and discount
10% for the customers who buy over 2 piece.
- Market development; increase the number of branches to other place
such as at department store etc.
- Product development, think the new design for respond the require of
customer and improve the old pottery to more up-to date.

Diversification strategies
- Concentric ( related ), contact or sell the product to the pergola
Shop or florist shop.

Defensive strategies
- Retrenchment, reduce the employees
- Divestiture cut some shop which not has profit.
- Liquidation, find the reserve capital.

2. Business level

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 Use the strategy by the company is the cost leadership for sell the product
in low price and emphasizes in the different of product and can establish the value
added for product to respond need and want of customers and focus the customer
personal and develop then can increase cost of product.

3. Functional level

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

to develop the employees then employees develop the product.
- Find the new market and research requirement of customers to design
new product for them and develop new product to have innovation
more and more.
- Shop of our company establish at center of market and the customer
easy to find and manage the income ,balance sheet and cash flow by
accountant then can know the profit or loss of company.
Set the gold of amount of capital in company then prepare the advance an investment
from other

Market Feasibility Study

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Market Analysis

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

popular in the north of Thailand, so we have to do market analysis for study customers
behavior, competitor’s advantages or every thing that important for business. Décor
Pottery is SMEs business, we specify customers who interesting in fashionable idea
product such student and workers which style, function of product that become the new
alternative for customers.

Political
To do a business we have to consider about political policy such as Free trade
Area policy, environment protect law, and pollution, community healthy, Business Zone,

Economy
Economic status of Thailand is the important thing for us to consider, occupation,
population revenue; these are the factors that influence to purchasing power. To buy the
material we have to consider that this economic status, sometimes material is high price
it’s may be result to the cost of our product.

Social and environment

Social and environment is the one of important think that we have to consider. As
we know to build the company we must have responsibility to social, should not be
damage the social and environment. We employ people from this local area to work in
our company that the way to distribute revenue to local area and is the way to up social
level too.

Technology
Technology, this factors is important too because machine and many equipment
we have to use technology. Because of this business is concentrate about technology, so
we have to think about it. Machine is very important think that we should think about, if
any machine is broken and make product broken indicated we are lost many profit, and
the more important is broken machine will dangerous to employee and factory too. This
is the reason that why we have to understand about technology. Besides, technology may
be help us in the others way such as to calculate with computer, to prepare the income
statement with computer program, and save report too, if we haven’t know about
computer, we will can’t use program.

Competition Analysis [3C Analysis]

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 - Competitor analysis
Our competitor has just only few, there has a big owner in Thailand not
over 10 and has much freedom’s owner in Thailand. Most of them produce ordinary style
of pottery and some of them are the exporter. So we create difference product for up
ability to compete. We have to know the customer of us, and learn their advantage for
develop our
- Customers analysis
Target Group of Décor Pottery Customers are the person who interesting
in modern style product and customers who have limited area such as student and
working person. We create the products to suitable for this group of customers.

- Company Analysis
DécorPotery is difference from others for attract customers, we have
identity, however, Style, function and price that doesn’t too expensive, so we are the new
alternative for customers.

STP Analysis

Segmentation
We learn about customer’s behavior and we know that each group of
customers has different demand. To learn about it make us clearly know and know how
to make product to attract each group of customers. There are many people that have
difference purchasing behavior, even child, teen, or adult. And each of regions, each
occupation there has difference purchasing behavior too. So we learn what the real
customers by observe from their purchasing.

Target
We make product suitable for every one but focus on group of working
people and student age of 20-30 and 30-40 from the observation, this group of people
prefer to buy the product such DécorPottery. We produce product in the several price
means that every people can buy its. We don’t have only pot but we have many produce
of pottery such as pot, pan for children, pottery dolls for décor home and garden.

Position
We make product to different from others with fashionable idea we will
build image of product and service to difference with competitors. We hope our company
will be entering in the top 20 of Pottery Company in Thailand.

Marketing Mix Strategy

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 Product
Décor Pottery have product style and function that differ from other
pottery, so make sure that Décor pottery will be the best alternative of customers. Our
product is in the furniture category; even it is making from ceramics.

Price

Set up price of product is the important things for choose of product and relate
with psycho. The generally number of price that end with number 9 always attract the
customer and is the strategy that use spread in the present , by the way set up the price
must consider cost also for not loss. Generally sale of product the customers have right to
bargain so we must set up the high price for keep in reserve then not loss income and the
important the price must not too high and appropriate with the product or not, the most
attractive of the customers is the relate of product and price, so we will set up price over
the net cost about 15 % and can change if the price of raw materials change. The set up
price is the risk then we must take a chance If we set the high price must sure that our
product have good quality ensure post selling service too, in the others hand if we set the
law price we must think about how to get the profit too,it is the difficult but the advantage
is we can sell more and sure. Our price not high too much but not low to be poor it is
suitability.

Place

We choose appropriate location to find material and not too far from resource and
the place must safe which do not destroy the environment around and wide enough to
produce and not too deep for the convenient in transportation of supplier and the location
to produce must be locate for easy to see and remember which may be good for
customers for come to buy the product and we choose the place for produce the product
not far from our main retail shop for comfortable to transportation of Ayutthaya which is
the place near main resource material it is clay and the characteristic of the Ayutthaya
place is it wide and a lot of area and far from city and not close other place which will
have problem. We have show room in the front of factory for is way to sell also.
I the part of our retail shop will be locate at Jatujak garden market the reason that
we choose that because it is the place that a lot of people go to shopping all times and
will be the good way to sell if the product not too expensive. Generally Jatujak garden
market will have a lot of people come per day too much and give the exchange of money
for country too much. The product in the type of decorate home and ceramics certainly is
the people in the city always thinking Jatujak so Jatujak is the most interesting place that
will give the income for our company.

Promotion
We have promotion for every festival
- Valentine

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 - Christmas
- Halloween
- New Year
- Father and Mother’s day
For each fest we will create product style to suitable for the fest and have a
discount for customers who buy for 10 times.

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 Sale forecast estimation
5 yearsDecorPottery

Décor Pottery Sales Forecast (12 Months) year 1 (bath)

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

Ash-tray plant pot 120267 145468 161629 162875 168206 172992 174034 173241 175423 172340 173008 172565 1972048
Umbrella plant
pot 134682 160050 176326 174437 176509 167981 176385 177461 185628 181420 189536 180234 2080649

Light pot 124708 150641 161834 178935 183897 185572 190464 187451 179936 182876 189342 191218 2106874
Self-watering plant
pot 154286 175942 176348 169021 178449 185609 180478 186947 189048 191356 209848 186740 2184072

Puzzle plant pot 159305 167384 177421 182567 187932 190478 185766 189917 193428 200214 198974 195244 2228630

693248 799485 853558 867835 894993 902632 907127 915017 923463 928206 960708 926001 10,572,282

Décor Pottery Sales Forecast (12 Months) year 2 (bath)

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

Ash-tray plant pot 215,074 203,647 206,451 205,745 232,746 213,567 220,828 204,736 215,810 220,727 220,756 218,834 2,578,921
Umbrella plant
pot 209,648 213,938 217,838 216,837 220,839 221,734 229,638 227,737 224,354 224,635 229,646 230,705 2,667,549

Light pot 217,938 223,744 227,735 238,947 230,835 225,839 229,746 246,274 245,539 249,634 247,830 263,746 2,847,807
Self-watering plant
pot 230,986 229,745 226,764 227,563 232,886 249,846 261,038 246,692 253,834 236,749 243,635 256,736 2,896,474

Puzzle plant pot 220,286 227,834 246,734 238,746 253,726 247,724 241,625 266,625 292,726 270,308 289,836 268,736 3,064,906

1,093,932 1,098,908 1,125,522 1,127,838 1,171,032 1,158,710 1,182,875 1,192,064 1,232,263 1,202,053 1,231,703 1,238,757 14,057,857

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 Décor Pottery Sales Forecast (12 Months) year 3 (bath)
1 2 3 4 5 6 7 8 9 10 11 12 Total

Ash-tray plant pot 257,387 297,394 259,367 309,274 380,937 355,272 289,035 319,834 318,406 317,837 355,038 326,364 3,786,145

Umbrella plant pot 257,393 269,736 278,937 297,363 243,836 278,734 275,423 271,252 253,427 263,572 278,232 273,501 3,241,406

Light pot 286,374 310,803 318,365 308,764 316,512 278,364 289,034 295,634 312,726 267,394 306,037 296,734 3,586,741

Self-watering plant pot 307,834 307,264 320,254 322,837 323,836 315,847 297,946 286,741 289,736 306,535 287,860 300,840 3,667,530

Puzzle plant pot 307,834 307,264 307,254 322,837 309,836 305,847 287,946 286,741 290,736 303,736 278,763 300,836 3,609,630

1,416,822 1,492,461 1,484,177 1,561,075 1,574,957 1,534,064 1,439,384 1,460,202 1,465,031 1,459,074 1,505,930 1,498,275 17,891,491

Décor Pottery Sales Forecast (12 Months) year 4 (bath)

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

Ash-tray plant pot 319,374 310,834 309,736 325,273 327,635 346,382 337,293 316,384 329,736 302,852 336,281 342,895 3,904,675

Umbrella plant pot 329,384 330,282 340,384 338,264 335,284 329,374 319,734 348,641 356,296 354,230 316,134 358,734 4,056,741

Light pot 329,834 335,723 346,723 350,934 338,734 321,934 336,834 337,762 345,621 341,834 346,294 346,242 4,078,469

Self-watering plant pot 339,023 375,245 352,142 349,279 366,234 376,023 320,234 342,742 304,724 342,824 338,204 357,353 4,164,027

Puzzle plant pot 378,242 367,342 356,294 401,834 402,824 399,284 387,292 387,294 356,221 389,102 400,329 387,246 4,613,304

1,695,857 1,719,426 1,705,279 1,765,584 1,770,711 1,772,997 1,701,387 1,732,823 1,692,598 1,730,842 1,737,242 1,792,470 20,817,216

21
 Décor Pottery Sales Forecast (12 Months) year 5 (bath)
1 2 3 4 5 6 7 8 9 10 11 12 Total

Ash-tray plant pot 395,736 408,372 337,392 350,822 367,924 356,234 348,303 350,824 346,394 363,872 382,792 391,734 4,400,399

Umbrella plant pot 378,024 380,242 390,837 402,837 389,275 377,974 389,278 367,298 389,924 372,537 357,042 376,024 4,571,292

Light pot 398,274 408,373 402,371 457,024 397,284 389,242 378,204 398,623 389,724 398,374 401,634 393,238 4,812,365

Self-watering plant pot 389,723 401,834 397,824 381,747 381,734 396,821 400,783 396,739 389,736 391,734 399,734 387,241 4,715,650

Puzzle plant pot 378,242 429,726 408,722 402,746 401,736 399,714 416,734 405,824 414,726 406,724 408,720 406,724 4,880,338

1,939,999 2,028,547 1,937,146 1,995,176 1,937,953 1,919,985 1,933,302 1,919,308 1,930,504 1,933,241 1,949,922 1,954,961 23,380,044

Sale is increase every year after we open the shop. In the first year we have less return because we just enter to the market, but after that
when we have reputation customers will have word if mouth and some of them are like and buy it, to be the loyalty customers. That is the
reason that make me to have more profit.

22
 Marketing Expense
Marketing Expense year 1 (bath)
1 2 3 4 5 6 7 8 9 10 11 12 Total

Booth, event 410,500 410500

Advertising 24,500 25,000 23,000 28,000 23,000 21,000 20,000 20,000 20,000 20,000 20,000 20,000 264,500

Sponsor radio 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 96,000

Total 771,000

Marketing Expense year 2 (bath)

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

Booth, event 450,000 169,638 619,638

Advertising 35,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 310,000

Sponsor radio 8,000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 96,000

Total 1,025,638

23
 Marketing Expense year 3 (bath)
1 2 3 4 5 6 7 8 9 10 11 12 Total

booth 700,000 209,422 909,422

Advertising 25,000 25000 25000 25000 25000 25000 25000 25000 25000 25000 25000 25,000 300,000

Sponsor radio 8,000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 96,000

Total 1,305,422

Marketing Expense year 4 (bath)

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

booth 702,000 396,495 1,098,495

Advertising 25,000 25000 25000 25000 25000 25000 25000 25000 25000 25000 25000 25000 300,000

Sponsor radio 10,000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 120,000

Total 1,518,495

24
 Marketing Expense year 5 (bath)
1 2 3 4 5 6 7 8 9 10 11 12 Total

booth 823,000 462,260 1,285,260

Advertising 25,000 25000 25000 25000 25000 25000 25000 25000 25000 25000 25000 25000 300,000

Sponsor radio 10,000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 120,000

Total 1,705,260

25
 Transportation expense year 1 (bath)
1 2 3 4 5 6 7 8 9 10 11 12 Total

Oil 4,100 2,700 2,600 2,900 2,800 2,800 2,600 2,700 3,400 3,900 3,000 2,500 36,000

Telephone 2,180 1,870 1,950 2,100 1,990 2,030 2,000 1,899 2,134 2,047 1,890 1,910 24,000

Total 60,000

Transportation expense year 2 (bath)

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

Oil 4,500 4,000 3,600 3,400 3,510 3,650 4,100 3,980 4,260 4,510 4,240 4,140 47,890

Telephone 3,576 2,880 2,690 2,601 2,784 2,800 2,703 2,902 3,000 3,200 2,790 31926

Total 79,816

Transportation expense year 3 (bath)

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

Oil 5,500 4,982 4,803 4,900 4,980 5,100 5,000 4,989 5,200 5,450 5,000 5,050 60,954

Telephone 3,600 3,100 3,196 3,243 2,994 3,383 3,442 3,430 3,540 3,863 3,445 3400 40,636

Total 101,590

26
 Transportation expense year 1 (bath)
1 2 3 4 5 6 7 8 9 10 11 12 Total

Oil 6,240 5,898 5,880 5,785 5,780 5,760 5,900 5,650 5,760 6,530 5,950 5,770 70,903

Telephone 4,340 3,780 3,600 3,890 3,890 4,010 3,700 3,890 4,029 4,200 3,990 3,949 47,268

Totol 118,171

Transportation expense year 1 (bath)

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

Oil 7,090 6,810 6,500 6,430 6,500 6,400 6,450 6,570 6,693 6,820 6,770 6,590 79,623

Telephone 5,095 4,,650 4,634 4,754 4,800 4,870 4,649 4,758 4,782 5,080 4,964 4,696 53,082

Total 132,705

For marketing expanse, we enter to join in the expo of province and we have to pay for investment, rental, equipment, etc to use.
The event is arranged in the first and tenth month, so the expense in this section is high.

Conclusion
Décor Pottery is the new company of the market, so we have to learn about competitor and other business so much to determine
to investment. Marketing analysis is the important strategy of us to use in the business however factor of political, environment, social, or
technology. Nowadays, there are many business in Thailand and every business are concern about this factors too, even the competitor of us,
so we have to know and always awake to learn about marketing for sustainable business of us for along. We estimate that we continuously get
the profit.

27
Technical Feasibility Study

Production and Operation Analysis

Production Characteristic

Characteristic of our products are appearing different plant pot. The Super Potty has
difference from normal Plant pot products. We combine both modernism and stylish on
our products for choices of interior decoration both indoor and outdoor decoration. And
then our products have appropriate size of plant pot for useful space in your home. And
Our products have Multi-function in one for new interior decorator generation. Such as

Ash tray Plant Pot [Item No. P12805]

This unique design combines an ashtray with a plant pot. The pot sits on top of the
ashtray, concealing it both visually and aromatically.

28
We have 2 Size that are : Small , Large

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

29
Umbrella Plant Pot [Item No. P12708]
This creative pot design allows rainwater from your umbrella to drain into the plant pot.
We have 2 Sizes that are: Small , Large

30
And We have 4 color that are: Rough Black, Cocoa, White , Cream
Price: Bath.

31
Light pot [Item No. P22604]
Modern pot for growing plants and herbs indoors. It uses LED lighting and can be
placed anywhere in the house.
We have 3 sizes that are: Large, Medium, Small
And we have 4 colors that are: Black , Brown, White, Blue
Price: Bath.

Self-Watering Plant Pot [Item No. P22813]

This self-watering plant pot’s main feature is a medical drip feed. This unique
characteristic
allows the plant to be nourished with water when needed.

32
We have 3 size that are: Large, Medium, Small

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

33
Puzzle plant pot [Item No. P32114]
When you feel tedious. You can play the Puzzle plant pot on your free time. This
product design for who has serious life.
This is the set of plant pot. You can separate buying. For each piece has different shape
and size. But all of Puzzle Plant Pot has a same height.
We have 5 colors that are: Blue, yellow Green, Pink, Orange
Price: Bath.

34
Roly -Poly Pot [Item No. P42208]
When plant need water Roly-Poly Pot is
slant to the right side. It can warn the
owner to pour water on the plant.
We have only one size and one color of
this type of Plant pot.
Price: Bath.

35
Dish Drip Plant Pot [Item No. P11312]
Great design that lets the water from your drying dishes drip into the plant pot and
water your flowers.
Price: Bath.

Production process
Ceramics Particulate Processing
- Traditional ceramics are made from minerals occurring in nature : Products
include pottery, porcelain, bricks, and cement.
- New ceramics are made from synthetically produced raw materials : Products
include cutting tools, artificial bones, nuclear fuels, and substrates for electronic
circuits.

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

36
 Usual steps in traditional ceramics processing: (1) preparation of raw
materials, (2) shaping, (3) drying, and (4) firing. Part (a) shows the workpart during the
sequence, while (b) shows the condition of the powders
Preparation of the Raw Material for Traditional Ceramics
- Shaping processes for traditional ceramics require the starting material to
be a plastic paste : This paste is comprised of fine ceramic powders
mixed with water.
- The raw ceramic material usually occurs in nature as rocky lumps, and
reduction to powder is the purpose of the preparation step in ceramics
processing.

Comminution
Reducing particle size in ceramics processing by use of mechanical energy in
various forms such as impact, compression, and attrition. Comminution techniques are
most effective on brittle materials such as cement, metallic ores, and brittle metals. Two
general types of comminution operations:
1. Crushing
2. Grinding

1.1 Crushing Reduction of large lumps from the mine to smaller sizes for subsequent
further reduction
- Several stages may be required (e.g., primary crushing, secondary
crushing), the reduction ratio in each stage being in the range 3 to 6.
- Crushing of minerals is accomplished by compression against rigid
surfaces or by impact against surfaces in a rigid constrained motion.
Jaw Crusher : Large jaw toggles back and forth to crush lumps against a
hard, rigid surface.

37
 Roll Crusher : Ceramic lumps are squeezed between rotating rolls.

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

reducing the small pieces after crushing to a fine powder.
- Accomplished by abrasion, impact, and compaction by hard media such
as balls or rolls.

- Examples of grinding include:

Ball mill

Roller mill

Impact grinding

Ball Mill : Hard spheres mixed with stock are rotated inside a large cylindrical
container; the mixture is carried up the container wall as it rotates, and then
pulled back down by gravity for grinding action.

38
 Roller Mill : Stock is compressed against a flat horizontal grinding table by
rollers riding over the table surface.

Ingredients of Ceramic Paste for Shaping

Clay (hydrous aluminum silicates) - usually the main ingredient
because of ideal forming characteristics when mixed with water.

Water – creates clay-water mixture with suitable plasticity for
shaping.

NonĮplastic raw materials, such as alumina and silica - reduce

shrinkage in drying and firing but also reduce plasticity of the
mixture during forming.

Other ingredients, such as fluxes that melt (vitrify) during firing
and promote sintering, and wetting agents to improve mixing of
ingredients.
Shaping Processes
 Slip casting : The clay-water mixture is a slurry.

 Plastic forming methods : The clay is plastic.

 Semi-dry pressing : The clay is moist but has low plasticity.
 Dry pressing : The clay is basically dry (less than 5% water) and has no
plasticity.
Slip Casting : A suspension of ceramic powders in water, called a slip, is
poured into a porous plaster of paris mold so that water from the mix is absorbed
into the plaster to form a firm layer of clay at the mold surface.
The slip composition is 25% to 40% water.
Two principal variations:
1.Drain casting - the mold is inverted to drain excess slip after a semiĮ
solid layer has been formed, thus producing a hollow product.
2.Solid casting - to produce solid products, adequate time is allowed
for entire body to become firm.

39
 Sequence of steps in drain casting, a form of slip casting: (1) slip is poured
into mold cavity, (2) water is absorbed into plaster mold to form a firm layer, (3)
excess slip is poured out, and (4) part is removed from mold and trimmed.
Plastic Forming
 The starting mixture must have a plastic consistency, with 15% to 25% water.
 Variety of manual and mechanized methods.
1. Manual methods use clay with more water because it is more easily
formed
- More water means greater shrinkage in drying.
2. Mechanized methods generally use a mixture with less water so starting
clay is stiffer.
Plastic Forming Methods
1. Hand modeling (manual method)
2. Jiggering (mechanized method)
3. Plastic pressing (mechanized method)
4. Extrusion (mechanized method)

1.1 Hand Modeling : Creation of the ceramic product by manipulating

the mass of plastic clay into the desired geometry.

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

define portions of the part geometry.

 Hand throwing on a potter's wheel is another refinement

of handcraft methods.

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

spindle, powered either by motor or footĮoperated treadle.

40
 -Products of circular crossĮsection can be formed by
throwing and shaping the clay, sometimes using a mold to
provide the internal shape.

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

replaced by mechanized techniques.

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

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

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

pressed between upper and lower molds contained in metal rings.
 Molds are made of porous material such as gypsum, so when
a vacuum is drawn on the backs of the mold halves, moisture
is removed from the clay.

 The mold sections are then opened, using positive air

pressure to prevent sticking of the part in the mold.

 Advantages: higher production rate than jiggering and not

limited to radially symmetric parts.

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

long sections of uniform cross-section, which are then cut to required
piece length.
 Equipment utilizes a screw-type action to assist in mixing the
clay and pushing it through die opening.

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

insulators.

 Also used to make the starting clay slugs for other ceramics
processing methods such as jiggering and plastic pressing.

41
Semi-dry Pressing : Uses high pressure to overcome the clay’s low plasticity
and force it into a die cavity.

Semi-dry pressing: (1) depositing moist powder into die cavity, (2)
pressing, and (3) opening the die sections and ejection.
Dry Pressing : Process sequence is similar to semi-dry pressing - the main
distinction is that the water content of the starting mix is typically below 5%
 Dies must be made of hardened tool steel or cemented carbide to
reduce wear since dry clay is very abrasive.

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

dimensional accuracy is achieved in the final product.

 Typical products: bathroom tile, electrical insulators, refractory

brick, and other simple geometries.

Clay Volume and Water Content

 Water plays an important role in most of the traditional ceramics shaping
processes.

 Thereafter, it has no purpose and must be removed from the clay piece
before firing.

 Shrinkage is a problem during drying because water contributes volume

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

42
 Volume of clay as a function of water content Relationship shown here
is typical; it varies for different clay compositions.
Drying : The drying process occurs in two stages:
 Stage 1 - drying rate is rapid and constant as water evaporates from the surface
into the surrounding air and water from the interior migrates by capillary action
to the surface to replace it : This is when shrinkage occurs, with the risk of
warping and cracking.

 Stage 2 - the moisture content has been reduced to where the ceramic grains are
in contact : Little or no further shrinkage occurs.

Typical drying rate curve and associated volume reduction (drying shrinkage)
for a ceramic body in drying .Drying rate in the second stage of drying is
depicted here as a straight line; the function is sometimes concave or convex.
Firing of Traditional Ceramics
Heat treatment process that sinters the ceramic material
 Performed in a furnace called a kiln.

 Bonds are developed between the ceramic grains, and this is accompanied
by densification and reduction of porosity.

 Therefore, additional shrinkage occurs in the polycrystalline material in

addition to that which has already occurred in drying.

 In the firing of traditional ceramics, a glassy phase forms among the crystals
which acts as a binder.

Glazing : Application of a ceramic surface coating to make the piece more impervious
to water and enhance its appearance.
 The usual processing sequence with glazed ware is:

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

2. Apply the glaze.

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

43
Logistics Management

Ceramic Logistics ware offers a fully integrated logistics service. We

have a full team of logistics professionals dedicated to transporting our
products from factory to shop and to customers and made in information
technology, new systems and software can significantly help to improve
customer service and communications there are have a industry sites to
easy for customers take the order and to ensure that all our products reach
their destination in perfect condition and in a cost effective manner and the
truck that have a safe while transport products for maintain security of
goods and service and have timely notification of orders and shipping
requirements is fundamental.

44
Facility Management
Disposal of waste management
1. Then through the combustion products commonly used method is than
implanted in the area of filling or hire someone to be left outside, which will
pay the cost very reasonable which in fact can be used for back by new mix
and used machine in the sub-ground such as Jaw crusher, Hammer mill, Cone
crusher.

2. Dust from different process - dust from the grind process almost is often
very detail so we must to have effective dust trap system is dust corrector
system because dust is the pollution is very harmful to respiratory system.

Water treatment management

Ceramic factory that should be water treatment system because ceramic
industry that to used water in many production and sometime before let water out of
factory that will be passed in the factory such as cleaning the floor, cleaning the
machine because sometime they don’t have treatment system water that ware left out of
the factory will harm the environment.

45
Machine / Tools / Equipments

Multi-tank ball mill

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

Screening machine
Roller screening machines are mostly used in steel,metallurgical and chemical
industries.

Ceramic gold plating machine

The gold membrane coated ceramic or silver membrane Bright delicate, coating
speed, simple operation, equipment stability, and the production of high-end decorative
ceramic an indispensable prerequisite equipment.

46
Semi auto Jiggering Ceramic machine
Machine for Dinnerware producing forming machine jiggering type.

Grinding equipment, QGM grinding

The light pot mill mainly used for laboratory and small quantity manufacture.
The mill has function such as electromagnetism timing, timing grinding, flexible axes,
the axes sleeve can regulate.

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

cutting ceramics, grooving and beveling. The machine has many advantages,
such as small size,light weight, high efficiency, stable precision and low price. It
is easy to operate and move.It is an excellent machine for decoration and
construction corporations.

47
Ceramic brick making machine
1. Automatic ceramic brick making machine.
2. 40% lower electricity used.
3. Efficient, high output.

Ceramic metallization coating machine are applied to hardware, plastic,

ceramics, resin, glass and crystal.

Filter press system

Filter press with washing system without fear of often changing filter cloth or
slurry adhesion to cloth high effiency. A filter press is a liquid-solid separation
device used to reduce the volume and weight of a slurry waste or process stream by
separating liquid filtrate and solid filter cake.

48
 Clay cutter

Clay mixing

Agitator : High – speed

49
Agitator : Low – speed

Hydraulic pump

Vacuum pump

50
Glaze spraying booth

Wet pan mill

Porosity test

51
Factory Location
Chaeng Wattana Bang Talat Pakkret Nonthaburi 11120
The factory will be located in this area because Nonthaburi is nearly Bangkok.
About transportation of raw material, we use a big truck. It’s easier than in Bangkok
that have a traffic jam for save cost of gasoline and time for transportation.
For second reason, from the map we can see that this location nearly Chatuchak the
biggest market. It is easy for present our product in this market for middleman or
transport a good to retailer.

52
Factory

53
Warehouse

Showroom
Showroom in front of factory or side of factory
We use a modern layout and modern style to set the showroom for present our product
in front of factory because our product is suitable with a modern style decoration.
Middleman or retailer can see our product and easy to contact us in this place.

54
Retail shop

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

Market. It’s for present and sale our directly to any customer. It is opportunity if there
are foreigner customers or big case of middleman interested in our product because
there are many kinds of customer at Chatuchak Market.

Red line zone is the zone that we want to rent but only 1-2 blocks because it’s zone
for decoration or ceramic and pottery.

55
Cost of investment

Building
-Land 300,000.
-Factory 1,205,000.
-Shop 2,430,000.
Total 3,935,000.

Tools and Equipment

-Oven 500,000.
-Hand Pottery 30,000.
-Decoration equipment 10,000
-Others 10,000
-Total 550.000.

Machine
-Estruder 250,000.

Facilities
-Furniture decoration 50,000.
-Product display 25,000.

Total 4,810,000

Investment Amount Depreciation Annual Monthly

Depreciation Depreciation
Building 1,205,000. 7/year 172,143. 14,345.25.
Oven 500,000. 4/year 125,000. 10,417.
Hand pottery 30,000. 4/year 75,000. 625.
Decoration 10,000. 4/year 2,500. 208.
Extruder 250,000. 5/year 50,000. 4,167.
Furniture 75,000. 5/year 15,000. 1,250.
Computer 25,000. 6/year 5,000. 417.
Total 2,095,000 377,143 31,429.25

56
Operating Cost
Raw material Cost
Kaolin 300,000 baht/year
Color 110,000 baht/year
Stain 180,000 baht/year

Direct Labor Cost

Employees in the factory

Technician in manufacturing 2 persons
Modeller 2 persons
Painter 2 persons
General Staff 3 persons
delivery man 3 persons
Employees in the office and shop 3 persons
Total 15 persons

Expense
Wage for accountant 70,000 /year
Interest O/D 40,000 /year
Other expenses 60,000 /year

Overhead

Cost of utilities 285,000 /year

Transportation 35,000 /year

Administration Cost

Gas for kiln 350,000 /year

Telephone 18,400 /year
Manager’s salary 1,260,000/year

Total 2,708,400

58
 Item Position Person Salary Total
1 Manager 7 15,000 105,000
2 Employees 5 10,000 50,000
3 Technician 7 6,500 45,500
4 Decorators 5 5,000 25,000
5 Delivery 3 4,500 1,3500
Man
Total 27 360,500

Conclusion

From Technical analysis make the business clearly about cost of product. We
know competitors cost and know how to save cost but give quality product and get
some profit it can make us to know technical that uses in the project to the long term
run and prevent to lost profit. Technical analyses make us to know what we should use
to do the business and know the important of each of equipment.

59
 Financial Analysis
Income statement
Décor pottery Year 1 2 3 4 5
Income statement Beginning 2005 2006 2007 2008 2009
(baht)

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

Computer industry 11,620,909 15,397,705 19,585,880 22,837,136 25,674,478
-Trade Discounts 1,162,091 1,539,770 1,958,588 2,283,714 2,567,448
Machine industry 141,830 249,904 330,248 329,742 341,768
-Trade discount (20%) 28,366 49,981 66,050 65,948 68,354
Product cost 5,626,459 7,494,013 9,540,159 11,089,052 12,448,592
-Computer industry 5,537,219 7,336,948 9,332,598 10,881,809 12,223,792
-Machine industry 89,140 157,064 207,561 207,242 214,801

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

Sales and service expense

-Commission for customer -235,255 -117,627 -156,476 -199,161 -231,669
(1st year 2% next 1%)
-Commission for 1st purchase 3% 0 -116,546 -128,056 -97,522 -85,481
-Marketing -771,000 -1,025,638 -1,305,422 -1,518,495 -1,705,260
-Recreation -120,000 -159,632 -203,178 -236,342 -265,410
-Transportation -844,800 -1,267,200 -1,267,200 -1,689,600 -1,689,600
-Telephone -24,000 -31,926 -40,636 -47,268 -53,082
-Oil -36,000 -47,890 -60,954 -70,903 -79,623
-Trains -50,000 -50,000 -50,000 -50,000 -50,000
-Establishment company -150,000 0 0 0 0
-salary employees -1,632,000 -1,713,600 -1,799,280 -1,889,244 -1,983,706
-Machine depreciation -165,000 -165,000 -165,000 -165,000 -237,000
-Tool office depreciation -100,000 -100,000 -100,000 -100,000 -100,000
-Rent building -240,000 -240,000 -240,000 -240,000 -240,000
-Other -50,000 0 0 0 -2,000
Profit before the interest and the tax 572,768 1,528,786 2,835,131 3,424,629 4,209,021
-Interest expense 0 0 0 0 0
Interest before deduct tax 572,768 1,528,786 2,835,131 3,424,629 4,209,021
-Tax -171,830 -458,636 -850,539 -1,027,389 1,262,706
Net profit 400,938 1,070,150 1,984,592 2,397,240 2,946,315
-Dividend (40%) -160,975 - 428,060 - 793,837 - 958,896 - 1,178,526
-Earned surplus 240,536 642,090 1,190,755 1,438,344 1,767,789

Financial ratio

60
 Year 1 2 3 4 5
Income 100% 100% 100% 100% 100%
Capital 53% 53% 53% 53% 53%
Gross earnings 47% 47% 47% 47% 47%
Earnings 4% 3% 11% 12% 13%

61
 Décor pottery company
Balance sheet

Décor pottery Year 1 2 3 4 5

Income statement Beginning 2005 2006 2007 2008 2009
(baht)

Asset
Current Asset 4,000,000 2,996,265 4,345,789 6,363,960 8,373,228 10,034,630
-Cash and cash at bank4,000,000 1,758,775 2,700,363 4,269,829 5,936,607 7,297,963
-Account receivable 881,024 1,171,488 1,490,958 1,734,768 1,948,370
-Goods Remain 356,466 473,939 603,173 701,853 788,297
Fixed asset 1,885,000 1,620,000 1,355,000 1,090,000 1,545,000
-Machine depreciation 1,485,000 1,320,000 1,155,000 990,000 1,545,000
-Tools depreciation 400,000 300,000 200,000 100,000 0
Total Asset 4,000,000 4,881,265 5,965,789 7,728,960 9,463,228 11,573,630

Debtor and stockholder

Debt
Current liability 640,702 1,083,137 1,645,553 1,951,476 2,300,089
-Account payable 468,872 624,501 795,013 924,088 1,037,383
-
 171,830 458,636 850,539 1,027,389 1,262,706
Long-term debt 0 0 0 0 0
Total Debt 640,702 1,083,137 1,645,553 1,951,476 2,300,089

Stockholder
Authorized capital stock 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000
Earnings surplus 240,563 882,653 2,073,408 3,511,752 5,279,541
Total of stockholder 4,000,000 4,240,563 4,882,653 6,073,408 7,511,752 9,279,541

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

Financial ratio
Year 1 2 3 4 5

Current Ratio 4.68 4.01 3.87 4.29 4.36

Quick Ratio 4.12 3.57 3.50 3.93 4.02

Debt Ratio 0.13 0.18 0.21 0.21 0.20

D/E Ratio 0.15 0.22 0.27 0.26 0.25

ROA 8.21% 17.94% 25.71% 25.33% 25.44%

ROE 9.45% 21.92% 32.68% 31.91% 31.75%

62
 Décor pottery company
Cash flow

Décor pottery Year 1 2 3 4 5

Income statement Beginning 2005 2006 2007 2008 2009
(baht)
Cash Flows From operating activities
Earnings 400,938 1,070,150 1,984,592 2,397,240 2,946,315
Depreciation-machine 165,000 165,000 165,000 165,000 165,000
Depreciation-office tools 100,000 100,000 100,000 100,000 100,000
Adjust account receivable -881,024 -290,465 -319,469 -243,810 -213,602
Adjust goods remain -356,466 -117,472 -129,235 -98,680 -86,443
Adjust Account payable 468,872 155,629 170,512 129,074 113,295
Adjust expenditure remain 171,830 286,805 391,904 176,849 235,318
Net cash from operating activities 69,150 1,369,648 2,363,303 2,625,674 3,331,882

Cash Flows From investing activities

Invest Fixed asset -2,150,000 -792,000
Net cash from financing activities -2,150,000 -792,000

Cash Flows From financing activities

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

Net increase in cash and cash equivalents - 2,241,225 941,588 1,569,467 1,666,778 1,361,356
Cash and cash equivalents at beginning of the period 4,000,000 1,758,775 2,700,363 4,269,829 5,936,607
Cash and cash equivalent at end of the period 1,758,775 2,700,363 4,269,829 5,936,607 7,297,963

Décor pottery company 1 2 3 4 5 6

Balance Sheet(Baht) beginning 2005 2006 2007 2008 2009
EBIT 572,768 1,528,786 2,835,131 3,424,629 4,209,021
TAX(30%) - 171,830 - 458,636 - 850,539 - 1,027,389 -1,262,706
EBIT*(1-T) 400,938 1,070,150 1,984,592 2,397,240 2,946,315
Adjusting item not affecting Cash
Depreciation and amortization 265,000 265,000 265,000 265,000 337,000
+ (-) in working capital 1,644,437 - 907,090 - 1,455,755 - 1,703,344 - 1,312,789
Free cash flow - 4,000,000 2,310,375 428,060 793,837 958,896 1,970,526
Terminal Value 5,833,552
Free cash flow ( incl Terminal Value) - 4,000,000 2,310,375 428,060 793,837 958,896 7,804,078
NPV (wacc=20%) 1,900,573
IRR 38%

63
Risk analysis for business
Risk management

Identify

External risk

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

competition problem all international especially the competition with China.
- Financial crisis of the United States of America that happens then financial
liquidity of worldwide affect to reduce the purchasing power of a consumer.
- World economy reduce most in round 20 year, from 3.9 -> 2.5% rates are left to
-0.45%.
- GDP of Thailand might increase 1-2.0 depend on the recovery of United
States of America, Europe and Japan.
- GDP of industry be down continually at year 2550= 6.2%, 2551=6.6% and
2552 =2-3.0%.
- Market of the ceramic is the market of the buyer then the buyer is influential
in bargain price of product because of in the market have more ceramic
producer.
- The ceramic industry is the one of market industry that is the cause of
problem about pollution both heat, dust, noise, polluted water, dregs
from the procedure of produce, mould plaster that expire, ceramic roller etc.
- The change of target group of customer.
- The disorder of political of Thailand which affect to requirement of
customer.

Internal risk

- Work inefficiency of employees.

- Attendance and nonattendance of employees which work by daily.
- The productions that break down approximately 5-10% of product those
produce in each time.
- Doing the marketing still as expected ineffectively.
- Employees sometimes they strike, died, or have accident etc.
- Dishonesty of employees.
- Distribution of product have problem on the way then the product have low
quality when the customer receive after that the company will get complain
and damage fame.
- High wage rate of employees both factory and shop.

64
The Five-Forces model of competition

Rivalry Among competing firms

-From the research in the Jatujak plaza find a lot of the pottery shop
but our pottery is locate at zone of decorate a house and a garden then not have
more affect for sale because in the Jatujak plaza have arrange the zone for each
types of product and normally a customer who want to come in shopping they often
go straight to seek a place that they want.

Potential entry of new competitors

- This business is the interest of customer because it is the product to use
for decorate home or gift friend and low prices then may difficult to reserve the
new competitors.

Potential of development of substitute products

-The pottery of our company is the new design then have more benefit
both decorate and souvenir which the benefits of these have other goods that can
use replace such as , house ornament , a souvenir that make from resin , plaster,
crystal etc.

Bargaining power of suppliers

-The most of ceramic often have source of raw material at same place
then Suppliers have influential to bargain more than then the producers pottery must
gather into group for bargain the price of raw materials and this group can are the big
customer of supplies then the power for bargain price will easy.

Bargaining power of consumers

-the gather into group of merchant pottery not only get benefits from
purchase low price of raw material but still make bargain price of customer reduce
because the group of merchant will set up middle price of product then every shop will
have same price. if the customer want to buy the beautiful product they can choose the
product from our company.

65
 Risk Analysis

Risk Type Probability

-Financial crisis of the United States of America Economic factors 15%

that happens then financial liquidity of
worldwide affect to reduce the purchasing power
of a consumer.

- -The entrepreneur in the ceramic industry of Economic factors 15%

Thailand still confronts with competition
problem all international especially the
competition with China.

-World economy reduce most in round 20 year, Economic factors 10%

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

-GDP of Thailand might increase 1-2.0 depend Economic factors 10%

on the recovery of United States of America,
Europe and Japan.

-GDP of industry be down continually at year Economic factors 5%

2550= 6.2%, 2551=6.6% and 2552 =2-3.0%.
-Market of the ceramic is the market of the buyer Social factors 5%
then the buyer is influential in bargain price of
product because of in the market have more
ceramic producer.

-The disorder of political of Thailand which Political factors 5%

affect to requirement of customer.

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

- Doing the marketing still as expected Internal risk 5%
ineffectively.
-The productions that break down approximately Internal risk 5%
5-10% of product those produce in each time.
-High wage rate of employees both factory and Internal risk 5%
shop.

-Work inefficiency of employees. Internal risk 5%

-Employees sometimes they strike, died, or have Internal risk 5%

accident etc.

-Dishonesty of employees. Internal risk 5%

66
-Distribution of product have problem on the Internal risk 5%
way then the product have low quality when the
customer receive after that the company will get
complain and damage fame.

-Attendance and nonattendance of employees Internal risk 5%

which work by daily
-The ceramic industry is the one of market Social factors 5%
industry that is the cause of problem about
pollution both heat, dust, noise, polluted water,
dregs
from the procedure of produce, mould plaster
that expire, ceramic roller etc.

How to reduce risk

Identify way to reduce the risk

- Encourage the market in the country may be have the activity of the
marketing.
- Research and development new product or design to more beautiful and
luxuries to the customer in high level for avoid to competitive with the
product from China.
- Control the standard of product and reduce cost of capitals by emphasize
using energy compensate in the process of produce the product.
- Reuse, recycle the waste of factory then reduce costs of capital and save the
world also.
- Find the way to produce the high tech of ceramic.
- Train the employees for increase the knowledge in skill to work
- Have the insurance in organization for support the problem that will be
occur with employees.
- Planning and development about marketing to appropriate with economy.

67
 Prioritize risk reduction

Risk Strategy

-Financial crisis of the United States of America - Encourage the

that happens then financial liquidity of market in the
worldwide affect to reduce the purchasing power country may be
of a consumer. have the activity of
the marketing.

- -The entrepreneur in the ceramic industry of - Research and

Thailand still confronts with competition development new
problem all international especially the product or design to
competition with China. more beautiful and
luxuries to the
customer in high
level for avoid to
competitive with
the product from
China.

-World economy reduce most in round 20 year, -Control the

standard of product
from 3.9 -> 2.5% rates are left to -0.45%.
and reduce cost of
capitals by
-GDP of Thailand might increase 1-2.0 depend emphasize using
on the recovery of United States of America, energy compensate
Europe and Japan. in the process of
produce the
-GDP of industry be down continually at year product.
2550= 6.2%, 2551=6.6% and 2552 =2-3.0%.
-Market of the ceramic is the market of the buyer -Find the way to
then the buyer is influential in bargain price of produce the high
product because of in the market have more tech of ceramic.
ceramic producer.

-The disorder of political of Thailand which -Encourage the

affect to requirement of customer. market in the
country may be
have the activity of
the marketing.

- The change of target group of customer - Research and

development new
product or design to
more beautiful and
luxuries to the

68
 customer in high
level for avoid to
competitive with
the product from
China.

- -
- Doing the marketing still as expected -planning and development
ineffectively. about marketing to
-The productions that break down approximately appropriate with economy.
5-10% of product those produce in each time.
-High wage rate of employees both factory and
shop.

-Work inefficiency of employees. -Train the

employees for
increase the
knowledge in skill
to work

-Employees sometimes they strike, died, or have -Have the insurance

accident etc. in organization for
support the problem
-Dishonesty of employees. that will be occur
with employees.

-Distribution of product have problem on the -planning and development

way then the product have low quality when the about marketing to
customer receive after that the company will get appropriate with economy
complain and damage fame.

-Attendance and nonattendance of employees -Have the insurance

which work by daily in organization for
support the problem
that will be occur
with employees.

-The ceramic industry is the one of market -Reuse, recycle the

industry that is the cause of problem about waste of factory
pollution both heat, dust, noise, polluted water, then reduce costs of
dregs capital and save the
from the procedure of produce, mould plaster world also.
that expire, ceramic roller etc.

69
Actions

Continuous monitoring of risk containment tasks

- Have to arrange the schedule for check the risk in every week which will
know that how much we have the % of increase or reduce of risk.

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

Ris Risk Last Probabilit Los Risk Ran Mitigatio Statu

k Item Wee y s Exposur k n s
# s k [0-1] [1- e Plan
Rank 10] #
#
1
2
3

70
Summary
DécorPottery decide to do learn about this product because we interested in the
decorative. Nowadays there are many places that need to décor; however the hotel,
coffee shop, restaurant and others, plant pot are the popular equipment that they
consider. Company that produce the pot are quite a bit, some of them are the export
company especially pot, not including others Ceramics Company that have pot in their
product. Indicated that there are many competitive markets, to be the new competitor is
difficult, so we create the idea that different from others and interesting, high class and
valuable but doesn’t expansive, because we make it by ceramics. There are many
companies that produce plant pot, and there is little company to produce the look
strange product. That is the initiative of inspiration to create idea to learn about the
feasibility of this product. DécorPottery not create the ordinal product, doesn’t ordinal
plant pot, not in the garden, not only show and plant, but we have more function in the
modern style. Generally we plant in the pot and take water to them, so we think” How
great if plant pot watering themselves” and “How great if plant pot not only for plant”.
We learn about to produce and learn about product History. The pottery has
begun to develop since 1 reign times by ordering and most design are the Thai painting
and later have modifying to suit the requirement of a Thai comes to continually and
begin import the pottery from the foreign such as Japan, Chinese and Europe after that
Thai has permitted to promote industries of pottery both of sale to export and the
development employees of production then have more industry and the exporting grow
up also. Type of pottery can separate from the kind of material. Generally size of the
pot will use since 6 inch (diameter) 8 inch 10 inch until 12 inc if is baked clay size pot
will should not exceed 12 inch. The pottery separate follow procedure
1. The ordinary stand pottery is standard pot which the pot that have the width,
narrow buttocks by has the wideness of the diameter equals to the height or
the depth of the pot uses to grow the tree in generally.
2. The short pot (Azalea Pots) the character resembles pot standard but will
have the a little depth.
3. Tray pot (Pans) is the pot buttocks shallow like frying pan have light weight
dislocates convenient and like to use grow the tree collects such as the
Bonsai.
4. The pot hangs can use other material to do such as glass bottle, bottle pet of
beverage recycle or other.
5. Baked clay pot which easy to evaporate and dry fast more plastic pot, glass
or metal.
To do a business, we have to consider about marketing. Pottery businesses are
popular in the north of Thailand, so we have to do market analysis for study customers
behavior, competitor’s advantages or every thing that important for business. Décor
Pottery is SMEs business, we specify customers who interesting in fashionable idea
product such student and workers which style, function of product that become the new
alternative for customers. To do a business we have to consider about political policy
such as Free trade Area policy, environment protect law, and pollution, community
healthy, Business Zone, Economic status of Thailand is the important thing for us to
consider, occupation, population revenue; these are the factors that influence to
purchasing power. To buy the material we have to consider that this economic status,
sometimes material is high price it’s may be result to the cost of our product. Social and
environment is the one of important think that we have to consider. As we know to

71
build the company we must have responsibility to social, should not be damage the
social and environment. Technology, this factors is important too because machine and
many equipment we have to use technology. Because of this business is concentrate
about technology. And the important we have to do sale estimated to ensure our product
income and make sure we will have profitability.
The Super Potty has difference from normal Plant pot products. We combine
both modernism and stylish on our products for choices of interior decoration both
indoor and outdoor decoration. And then our products have appropriate size of plant pot
for useful space in your home.
Ceramics Particulate Processing
Traditional ceramics are made from minerals occurring in nature and new ceramics are
made from synthetically produced raw materials
Logistics Management
We have a full team of logistics professionals dedicated to transporting our products
from factory to shop and to customers and made in information technology, new
systems and software can significantly help to improve customer service and
communications there are have a industry sites to easy for customers take the order and
to ensure that all our products reach their destination.
Facility Management
1. Disposal of waste management
2.Water treatment management is ceramic industry that to used water in many
productions and sometime before let water out of factory that will be passed in
the factory.
We plan that we will have the income continuously through period of five years
we have to research the data of price machine and even true price of area and we bring
data of financial to do the financial statement for analyze and can manage with the
situation both Balance sheet, income statement and cash flow and we got summarize
that in each year we can sell average 17,343,850 baht/year then the net profit average
7,214,203.4 baht/year.
For Risk of Company
External – the ceramic industry in Thailand still confront with the competitions problem
and economy about GDP.
Internal – Employees problem and accident of product during produce and sell.
The Five-Forces model of competition
- Rivalry Among competing firms = although have more shop at Jatujak but it
arrange the zone then the customer easy to find our shop.
- Potential entry of new competitors = this business is the interest now because
customer use to decorate home and gift friend.
- Potential of development of substitute products = others goods that can use
replace such as the product that make from resin, plastic, crystal etc.
- Bargaining power of suppliers = Create the group of producers potter for
bargain the suppliers.
- Bargaining power of consumers = set up standard price among group of
producers pottery.
Risk Analysis
- Economics is the highest risk of our company next is social, internal and
political respectively.
The way to reduce risk

72
 Do the adaptation from internal company, develop labor or employees for
maintain production standard and give insurance for employees and use the strategy,
reduce reuse recycle, for decrease production capital, research new market and develop
the product for follow the requirement of customers after that have to arrange the
schedule for check the risk in every week which will know that how much we have the
to increase or reduce of risk.
Decor pottery is the new generation company we created new design and new
life to people related to our concept that “Fashionable design, fashionable life by décor
pottery”.

73
 Bibliography.

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

http://app.eng.ubu.ac.th/~edocs/f20060804Suriya29.ppt(Date 22/11/2009)
http://www.imerys-ceramics.com/TextsMarket.asp?I1 ID=2&I2 ID=2&I3 ID=13&I4
ID=8 (Date 02/01/2010)
http://www.thaiceramicsociety.com/ts_waste.php (Date 18/01/2010)
http://www.duudee.com/component/option,com_fireboard/Itemid,33/func,view/id,825
4/catid, 524/ (Date 22/01/ 2010)
http://www.jiraphantrading.com/?name=knowledge&file=readknowledge&id=3
(Date 23/01/ 2010)
http://www.perfect-pottery.co.th/ (Date 29/01/ 2010)
http://www.pscmceramic.com/product.htm (Date 04/01/ 2010)
http://www.jiraphantrading.com/index.php?name=view&category=32
(Date 04/01/ 2010)
http://www.alibaba.com/showroom/ceramic-machine-showroom.html
(Date 06/01/ 2010)
http://school.obec.go.th/mclschool/std/6.2/bee1/16.html (Date 01/02/ 2010)
http://advisor.anamai.moph.go.th/conference/TQM/market.ppt (Date 07/02/ 2010)

74
 APPENDIX

1.

75
Name: MissWorazana Horprayoon
Age: 21 years
Marital Status: Single
Nationality: Thai
Religion: Buddhism
Permanent Address: 333 Moo 1, Tumbon TaSood,
Ampour Muang, Chiang Rai 57100
Telephone Number: 083-1950814
E-mail address : Whokkrin@hotmail.com

2.
Name: Angkana Nantachai
Age: 21 years
Marital Status: Single
Nationality: Thai
Religion: Buddhism
Permanent Address: 333 Moo 1, Tumbon TaSood,
Ampour Muang, Chiang Rai 57100
Telephone Number: 085-8638403
E-mail address : ang_ninew@@hotmail.com

3.
Name: Akepailin Wainum

76
 Age: 21 years
Marital Status: Single
Nationality: Thai
Religion: Buddhism
Permanent Address: 333 Moo 1, Tumbon TaSood,
Ampour Muang, Chiang Rai 57100
Telephone Number: 081-0795953
E-mail address : i_moo_am@hotmail.com

4.
Name: Tanyalak Ruamtham
Age: 21 years
Marital Status: Single
Nationality: Thai
Religion: Buddhism
Permanent Address: 333 Moo 1, Tumbon TaSood,
Ampour Muang, Chiang Rai 57100
Telephone Number: 089-4341034
E-mail address : di-nam@hotmail.com

5.
Name: Nitra Nilsawit
Age: 22 years
Marital Status: Single
Nationality: Thai
Religion: Buddhism
Permanent Address: 333 Moo 1, Tumbon TaSood,
Ampour Muang, Chiang Rai 57100
Telephone Number: 084-0419721
E-mail address : Too_tid_ti@hotmail.com 5031207144

6.
Name: Preeyanee Kityanurak

77
Age: 21 years
Marital Status: Single
Nationality: Thai
Religion: Buddhism
Permanent Address: 333 Moo 1, Tumbon TaSood,
Ampour Muang, Chiang Rai 57100
Telephone Number: 085-0382213
E-mail address : Niic_@msn.com

7.
Name: Suppachet Simma
Age: 22 years
Marital Status: Single
Nationality: Thai
Religion: Buddhism
Permanent Address: 333 Moo 1, Tumbon TaSood,
Ampour Muang, Chiang Rai 57100
Telephone Number: 084-1770620
E-mail address : jack_kajeey@hotmail.com

78