Infinity Florist & Souvenir Company

Infinity Florist& Souvenir Company
Project Feasibility Study and Evaluation

1203302
Prepare by
Right Group No. 23
MISSNANTHIKA WONGROI ID 5131207015

MISSATITAYA SONBOONCHU ID 5131207028
MISSKANCHAREE TREETANTIPAKORN ID 5131207036
MISSWARANAN SUKMAK ID 5131207096
MISSANANTAYA SRIJUN ID 5131207116
Major: HIM Section: 2
Present to
AJ CHAIYAWAT THOGINTR
i
MAE FAH LUANG UNIVERSITY
Preface
This Project is a part of 1203302 Project Feasibility Study and Evaluation

Course in the second semester of 2010. In this project is studying the feasibility of
florist &souvenir business in Chonburi, which is include generally of flower and
souvenir, management in florist &souvenir business, competition analysis and
marketing feasibility, the technical process in florist &souvenir business, the financial
feasibility of florist &souvenir business, and risk of florist &souvenir business.
This project makes everyone who interested to get knowledge and information
about florist &souvenir business before make decision to investment, including
preoperational process and operation process of preoperational for the benefit to
investment and profit of doing this florist &souvenir business. We expect that our
project will provide benefit more and more interested person, moreover, if they are any
error in this project or whatever, our ground made an apology at this opportunity.
Group member
Miss Nanthika Wongroi
Miss Atitaya Sonboonchu
Miss Kancharee Treetantipakorn
Miss Waranan Sukmak
Miss Anantaya Srijun
ii
TABLE OF CONTENT
Detail Page
Chapter 1: Introduction
1.1 Introduction 2-3
1.2 Project Objectives 3
1.3 Benefits of Project: Identify the benefits of this study 4
1.4 Processing method 4-5
Chapter 2: Industry Profile

2.1 Nature of Industry 7
2.1.1 Arrangements style flower and services 7-8
2.2 Situation of Industry 8
2.2.1 Flower 8
2.2.2 Souvenir 9
2.3 Product and Service (in General) 9
2.3.1 Flower 10
2.3.2 Arranged flowers 10
2.3.3 Event 10
2.3.4Souvenir 10
2.4 Vision 10
2.5 Mission 11
2.6 Strategies of company 11
2.6.1 Corporate level strategy 11
2.6.2 Business level strategy 11-12
2.6.2.1 Production differentiation 12
2.6.3 Functional level strategy 12
2.6.3.1 Marketing mix strategies 12-13
2.6.3.2 Human resource management 13
iii
Chapter 3: Market Feasibility Study
3.1 Market Analysis 15
3.1.1 Political Factors 15
3.1.2 Economic Factors 16
3.1.3 Soiocultural Factors 16-17
3.1.4 Technology Factors 17
3.2 Competition Analysis (3C Analysis) 17
3.2.1 Competitor Analysis 17-19
3.2.2 Customer Analysis 20
3.2.3 Competitive analysis 20
3.2.3.1 Rivalry among current competitors 20-21
3.2.3.2 Bargaining power of suppliers 21
3.2.3.3 Bargaining power of customer 21
3.2.3.4 Threat or substitute products or services 21
3.2.3.5 Threat of new entrants 21-22
3.3 STP analysis 22

3.3.1 Segmentation 22
3.3.1.1 Premium market 22
3.3.1.2 Normal market 22
3.3.1.3 Low market 22
3.3.2 Target market 23
3.3.3 Positioning 23
3.4 Marketing Mix Strategy 24
3.4.1 Product decisions 24
3.4.2 Price decisions 24-25
3.4.3 Distribution (Place) decisions 26
3.4.4 Promotion decisions 27
3.4.4.1 Promotion strategy 27
3.4.4.2 Advertising 27
3.4.4.3 Sales promotion 27
3.5 Sale forecasting/ Profit estimated 27
3.5.1 Market Demand 27-28
3.5.2 Market Based Sale Forecast 29
iv
3.5.3 Resource Based Sale Forecast 30
3.5.4 The Final Sale Forecast 31
3.5.4.1 Sales Forecast Year 1-5 32-40
3.5.5 Time Series Analysis 41
3.5.5.1 Trends 41
3.5.5.2 Seasonal or cyclical factors 41
3.5.5.3 Erratic Events 41
3.5.5.4 Responses 41
3.6 Marketing Expense 41
3.6.1 Advertising Expense Year 1-5 41-42
3.6.2 Florist and souvenir label 43
3.7 Conclusion 43-44
Chapter 4: Technical Feasibility Study

4.1 Production and Operation Analysis 46
4.1.1 Product Characteristic 46
4.1.1.1Souvenirs 46-47
4.1.1.2 Flowers decoration 48-49
4.1.2 Specification, Feathers, Dimension, Life Time, etc. 49
4.1.2.1 Flower decoration 49
4.1.2.2 Souvenir 49
4.1.2.3 Production/Services Process 49
4.1.3 The purposes of arrangement 50
4.1.3.1 Primary information 50
4.1.3.2 Product format 50
4.1.4 Materials 50
4.1.5 Preparing flowers or souvenir stuffs 50
4.1.6 Creating products 50
4.1.6.1 Flowers arrangement 50-51
4.1.6.2 Creating souvenir 51
4.1.7 Delivery 51
4.1.7.1 Location 51
4.1.7.1.1 Private school activities 51
4.1.7.1.2 Church activities 52
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4.1.7.1.3 Activities at temples 52
4.1.7.1.4 Special occasions 52
4.1.8 Facility Layout 53
4.1.8.1 Objectives 53
4.1.8.2 Facility layout format 54
4.1.8.2.1 Product design 54
4.1.8.2.2 Process design 54
4.1.8.2.3 Fixed-location 54
4.1.8.3 Design layout 54
4.1.8.3.1 Process layout 54
4.1.8.3.2 Product layout 54
4.1.8.4 Machine/Tools/ Equipments 54
4.1.8.4.1 Machine 54
4.1.8.4.2 Tools and Equipment 55
4.1.8.5 Logistics Management 55
4.1.8.5.1 Ordering Management / Customer Service 55
4.1.8.5.1.1 Billing 55
4.1.8.5.1.2 Contract management 55
4.1.8.5.1.3 Pricing 55
4.1.8.5.1.4 Proposal management 55
4.1.8.5.1.5 Sale order management 55
4.1.8.5.6 Trade document processing 56
4.1.8.5.2 Packaging 56
4.1.8.5.2.1 Flowers decoration 56
4.1.8.5.2.2 Souvenirs 56
4.1.8.5.3 Transportations 56
4.1.8.5.3.1 Domestic 56
4.1.8.5.3.2 International 56
4.1.8.5.4 Warehouse Management 56
4.1.8.5.4.1 Flowers storage 56
4.1.8.5.4.2 Souvenir storage 56
4.1.8.5.5 Inventory Control Management 56
4.1.8.5.5..1 Flowers 56
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4.1.8.5.5.2 Souvenirs 56
4.1.8.5.6 Manufacturing 57
4.1.8.5.6.1 Short-term 57
4.1.8.5.6.2 Long-term 57
4.1.8.6 Facility Management 57
4.1.8.6.1 Safety and Health 57
4.1.8.6.2 Maintenance System 57
4.1.8.6.3 Business Continuity Planning 57
4.2 cost of investment 58
4.2.1 Pre-Operating cost 58
4.3 Investment Cost 58
4.3.1 Land 58
4.3.2 Building 59
4.3.3 Tool & Equipment 59-62
4.3.4 Investment Cost 63-68
4.4 operation cost 69
4.4.1 Raw material cost 69
4.4.1.1 Flowers 69-71
4.4.1.2 Souvenir 71-72
4.4.2 Direct labor cost 72
4.4.3 Overhead cost 73
4.4.3.1 Indirect material cost 73
4.4.3.1.1 Materials 73-76
4.4.3.2 Indirect labor cost 76
4.4.3.3 Others 76
4.4.3.3.1 Water 76
4.4.3.3.2 Petroleum 76
4.5 Administration cost 77
4.5.1 Calculate Electricity 77-78
4.5.2 Price of water tariff 79
4.5.3 Internet cost 79
4.5.4 Telephone cost 79-81
4.6 Conclusion 82
vii
Chapter 5: Financial Analysis
5.1 Income Statement Year 1-5 84-88
5.2 Cash Flow Year 1-5 89-93
5.3 Balance Sheet Year 1-5 94-98
5.4 Internal Rate of Return (IRR) 99
5.5 Net Present Value (NPV) 100
5.6 Pay Back Period 100-101
Chapter 6: Risk Management

6.1 Operation factor 103
6.1.1 Process risks are as follow 103
6.1.1.1 Supply chain risk 103
6.1.1.2 Customer satisfied risk 103-104
6.1.1.3 Cycle time risk 104
6.1.1.4 Process execution risk 104
6.1.2 Legal & compliance risks are as follow 104
6.1.2.1 Environmental risk 104
6.1.2.2 Regular risk 104
6.1.2.3 Policy and procedure risk 105
6.1.3 People risks are as follow 105
6.1.3.1 Human resource risk 105
6.1.3.2 Employee turnover risk 105
6.1.3.3 Performance incentive risk 106
6.1.3.4 Training risk 106
6.2 Human Resources factor 106
6.3 Marketing factor 107
6.4 Financial factor 107
6.4.1 Market risk 107
6.4.2 Credit risk 107
6.4.3 Operation risk 108
6.5 Political factor 108
6.6 Economic factor 109
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6.7 Technology risk 109
Chapter 7: Summary 112-113

Reference 114-119
Appendix 120-124
ix
x
Chapter 1
Introduction
1
1.1 Introduction
Chonburi province is place east coast famous for a long time. Moreover, the
community became a source of ancient civilization and grows up on many things.
Especially tourism Tradition, Community life, Industry and international. For Chonburi
may be recognized as a seaside resort town near Bangkok by Bang Saen and Pattaya
which has been popular with tourists both Thais and foreigners. Foreign travels come to
find out new experience the beautiful painting of the east coast.
When comes to Chonburi, Many people think the beach resort town near
Bangkok, the image of relaxing under the coconut trees waver is the charm of this city,
the city with the sea breeze soothe a lullaby to calm waves always been peaceful.
The beauty of the wind, sun, sand and large and small islands in the sea east of
Chonburi. It makes the flow of tourism that does not stop. Tourists both Thai and
foreigners can travel to Chonburi in a very short time as Resulting from transportation
convenient and close to the capital. Chonburi city to become one of many cities. To
relax in a very short time. Then back to work again with full forces. Ocean beauty of
Chonburi is not appropriate here to touch only but there are many rich resources to
bring to overflow utilized. Today we can also see pictures of coconut trees along the sea
calm. And a small fishing community is living simply. Distribution is scattered
Able to rely on any sea. Chonburi older people can make up for the cost of natural
resources allocated to ago. As with the current way of fishing continues to be of local
heritage continued. Convey the wisdom of the sea so that their children continually
Chonburi is the current population of 1,233,446 people. Traditional habits of
Chonburi are known as real people, living simply, conservation and savings, be patient,
friendly. And always ready to welcome visitors. Chonburi today will grow even more.
There are also those who migrate to other places to live harmoniously blended with
traditional folk. Chonburi people maintain customs and traditions of their beauty took it
firmly.it‟s reflect in the form such annual festival. Whether it is the event that favors
folk and wicker Phanat Nikhom, flow during the festival days after the Songkran
Festival, etc. All these demonstrate the unique identity of Chon Buri.
Potential and unique in many aspects of all these Chonburi. Its Becomes a cost
to the wealth of continuous improvement and results in Chonburi become “Diamond
2
Water University of the East” Chonburi ready to open the door to the world community
appropriately.
Industry of Chonburi, Annual Report of the Year 2550 is as follows;
Factory outside of the Estate of 2,645, up from 186place in 2549. The number of
workers who were a capital of 346, 249, 450, 225, 163, 462 Baht. And industrial estates
in the industrial estate of 5, 773 of the year 2549, up from 25 place. Workers who have
invested 410, 629, 000, 000 120 314 Baht Total factory in Chonburi province, the
number of employees 3418 investment of 283,776 people 756,878,450,225 Baht. A
result from the industry is classified as major revenue of Chonburi Province. The trend
grows up continually.
Chonburi now ready to move ahead full force. Developing the industrial and
port to the international world sees. Its call "A World Class Port".
All of this is the reason why we do flower and gift shop business in Chonburi
Province. Flower business has been very popular to represent congratulations. Or
express regret. Different occasions, resulting in the flower business growth more past
year. And Phanat Nikhom a town famous for weaving. We used to make the gift of
weaving to create a unique good.
(Source: http://www.chonburi.go.th/สวสดเมองชล/รจกชลบร/tabid/59/language/th-
TH/Default.aspx?PageContentID=4)
1.2 Project Objectives

1.2.1 To give a customer have positive attitude to flower business.
1.2.2 For consumers to receive services through modern technology.
1.2.3 To apply the best technical and management process for florist and
souvenir.
1.2.4 To develop flower and souvenir economic in Chonburi along with
Thailand.
1.2.5 To analyze market in the business and financial risk feasibility.
3
1.3 Benefits of Project: Identify the benefits of this study
1.3.1 For Infinity Florist& Souvenir Company, it‟s flexible at all time. So, it‟s
making money anytime.
1.3.2 Infinity Florist& Souvenir Company is easy business because it has factors
in the operation not so much.
1.3.3 When we have problem, it has a chance to recover more than big business.
1.3.4 Understand more Infinity Florist& Souvenir Company and its management
system.
1.3.5 Infinity Florist& Souvenir Company can do it that like and preferences.
And it can be applied to study for good management
1.4 Processing method
1.4.1 Talk about business

1.4.1.1 Research information about business
1.4.1.2 Agree with friends about do business
1.4.2 Study management about business
1.4.2.1 Product and service
1.4.2.2 Strategic of the company
1.4.2.3 Investment fund
1.4.2.4 Find place for build business
1.4.3 Study competition analysis and marketing
1.4.3.1 Research customer behavior and customer demand
1.4.3.2 Sales forecast and profit estimation of wedding studio
1.4.4 Study the financial feasibility of business
1.4.4.1 Company‟s investment cost, operation expense, and other
expenses.
1.4.4.2 Profit and loss statement, cash flow, and balance sheet in 5 years
of business
1.4.5 Study and analysis and evaluation for business
1.4.6 Summary the feasibility for business
4
Time frame of study
November December January February

Operation
method W w w w W w w w W w w w W w w W
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
1.Talk about 
business
2.To Study
management
about business
3.To Study
competition
analysis and
marketing
4.To study the
financial
feasibility of
business
5.To study
and analysis
and evaluation
for business
6.Summary
the feasibility
for business
5
Chapter 2
Industry Profile
6
2.1 Nature of Industry
In present business florist is very popular because flowers can communicate
congratulations or sympathy increasing number of businesses shop flower growth
increased during the 2 to 3 years. It is expected that the flower shops across the country
for more than 1,000 stores in the current. In Bangkok and its vicinity by about 50
percent of the remaining provinces, especially in large cities is another flower shop
business, a business that has a lot of attention. Opportunities for growth in this business
is because there are many flower shops in Bangkok are mostly concentrated in the
central city communities are not far away a little flower shop. In general business flower
shop is divided into two levels
1) Large florist shop often located in areas high consumers. The shop is
decorated in elegant style. Flowers are imported from abroad as a selling point and due
to high customer focus. Consistent with the average selling price of 1,000 baht or more,
2) Flowers medium to small found in shopping malls, hospitals, schools
residential community on the temple to the lower middle class customer. Flower
business is also a business that has a lot of attention. Most tend to think that a business
can be done without difficulty, but with knowledge on how to arrange flowers, it can be
business. But in fact, the flower business is successful. Operators must be skilled and
willing to do business in this seriously. Because the flower shop in the current highly
competitive. If lack of commitment and lack the expertise in doing business, it may not
be successful also.
2.1.1 Arrangements style flower and services.
The service is divided into two flower arrangements like this.
1) Arranging flowers in the shop, including flower vases, flower gift bouquet and
ring rolling by the customer may pick you or deliver. Which each type of popular
flowers are the following manner.
1.1) Type popular as a floral bouquet or flower vase like to congratulate those
who have been promoted to rank / promotion. Congratulations on the birthday
Congratulations on the opening day because restaurant / new business. Congratulations
on the new house. Congratulations on the birth of children. Encouragement to the sick.
On the main festival. (New Year's Day / Day) etc.
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1.2) Type of popular flowers such as congratulating the star / actress / singer /
athlete. Congratulations to the graduates of various levels of congratulations to the
winners of the various wedding anniversary. To give Valentine's Day etc.
1.3) types of jobs are rolling ring is a popular funeral
2) flower arranging visits, such as wedding and meeting exhibition work event
funeral
(Source:
http://boc.dip.go.th/index.php?option=com_content&view=article&id=325&Itemid=14
http://www.incisan.com/?tag=%E0%B8%9B%E0%B8%B1%E0%B8%88%E0%B8%8
8%E0%B8%B8%E0%B8%9A%E0%B8%B1%E0%B8%99)
2.2 Situation of Industry

2.2.1 Flower
In the current climate to flower not Flowering and flower have risen such as Joe
red orchids, white orchids, roses and marigolds. Flower prices down, such as Mali,
Mom Chiang Mai. While the white lily and pink flowers as well as other is normal
price. It is from the current issue of natural disasters, higher production costs, economic
downturn, Thailand imported from abroad winter flowers and Thailand to free trade.
Thai people can not compete with other countries. Flowers are expensive include
chrysanthemums, roses, Gerbera, marigolds and orchids.
Current flower market is only a small group, but the product is very expensive,
and economic and domestic and abroad is low. Thus, customers focus on buying
necessities rather than luxuries.
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2.2.2 Souvenir
Present a wide selection of souvenirs. It has a variety of gift and is very
competitive. The reason is the weak point of the gift. If order from factory. It would be
inefficient and the product is not good. Therefore, the buyer should be sure before
buying that good and quality product.
Today's souvenir is the variety of design. And a design that flows out of the
community. Souvenir is that the model can be used to advantage that show your home
and used in everyday life such as pretty box, small book, etc.Those who receives it can
be used and do not be afraid to fall trend, can carry all the time.
(source:
http://www.talaadthai.com/web/resource/price_dec10_end.html
http://www.rakbankerd.com/agriculture/wb/show.php?Category=agriculture&No=1161
7
http://www.lonasdemarcan.com/%E0%B8%82%E0%B8%AD%E0%B8%87%E0%B8
%8A%E0%B8%B3%E0%B8%A3%E0%B9%88%E0%B8%A7%E0%B8%A2-
%E0%B9%81%E0%B8%A5%E0%B8%B0%E0%B8%88%E0%B8%B8%E0%B8%94
%E0%B8%94%E0%B9%89%E0%B8%AD%E0%B8%A2%E0%B9%83%E0%B8%99
%E0%B8%81/
http://www.soelyst.net/tag/%E0%B8%82%E0%B8%AD%E0%B8%87%E0%B8%8A
%E0%B8%B3%E0%B8%A3%E0%B9%88%E0%B8%A7%E0%B8%A2/)
2.3 Product and Service (in General)

Infinity Florist& Souvenir Company offers a variety of product and service
according to the objective of customers. We will be involved with some of the
significant moments. We provide many different types of product and service that
divided into
2.3.1 Flowers
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2.3.2 Arranged flowers
2.3.3 Event
2.3.4 Souvenir
2.3.1 Flower
We offer product and service in the form of flower to the customer. Who want to
buy only the flowers to decorate their house and office or arrange in the vases by
themselves. The flowers that we would like to sell are the flower that can be applied in
multiple objectives such as rose, lily, orchid, gerbera, lotus, carnation, gladiolus,
tropical flower, tulip, and we are also have the special order for customers who want to
buy flowers that are not used to sell in our store.
2.3.2 Arranged flowers
This type of product will be in form of flower bouquets, flower vase, flower
basket, fruit basket, flower cake, Thai garland, flower wreath, and flower arranged in
the natural equipments such as dried coconut shell. Products are suitable for a gift to
congratulate on the occasions, to express customers‟ care to the recipient, and so on
2.3.3 Event
We provide product and service in form of arrangement in the events such as
wedding, funeral, seminar, meeting, party, graduation, and other events that ordered by
customers. We provide customer service suggestions about flower arrangements to suit
the event type of customers. We apply what customers want to have in the event and
consider with customers‟ budget. We aim to make the best choice to customers and do
what customers expected.
2.3.4Souvenir
In addition to flower, we also offer a variety of souvenir to represent the word
thank you for their guests. We see that important event such as wedding, must have gifts
to thank guest. Therefore, we consider that is a good idea to provide more functions
give convenience to customer in the service.
(source: http://www.powerhomebiz.com/vol50/florist.htm)
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2.4 Vision
Infinity florist& Souvenir Company will be various flower designs always and
there are many souvenirs also the demand of inside country and international.
2.5 Mission
Infinity florist& Souvenir Company make to order designing the event and
souvenir which activities aimed to customer‟s satisfaction and trustworthy with high
quality and variety of service anticipate their requirement and create the great value of
product with reasonable price and service with friendly greeting and smile. We will
have a training course to train our employee before providing service to customer and
use differentiate service to attract customer. The company has modern design also good
location and transportation convenience.
2.6 Strategies of company

Infinity Florist& Souvenir Company is the first company who operate event
decorations and souvenirs around the target area. For the strategy we used is SWOT
analysis because it helps us to identify strength, weakness, threat, and opportunity of
our company. The result of SWOT analysis shows that we have more strengths and
opportunities since we are the first shop of the town. We may face with a problem as we
are new company and our customers do not know our experience. For the strength point
are offering them new styles of decorating and a few of competitor. These will create
more chance for us to win over other shops.
2.6.1 Corporate level strategy

Our company will use growth strategy to analyze on the internal of our company
like our professional skill, product creation and corporate culture. Our target is to create
a new style of decoration and souvenir to win our competitors and to be different. We
will provide an image of difference of each customer to show them that we care and
treat them like our VIP guest. We focus on the horizontal integration which increasing
the range products and geographic expansion. After we achieve this goal we try to focus
11
on the vertical integration which point out backward and forward of the growth strategy.
Then we are ready to expand our business to other areas in Chonburi and may take place
in other provinces in Thailand too.
2.6.2 Business level strategy
We focus on the differentiation which provide the unique and characteristics
products. This strategy will ensure our customers that they will receive high quality,
image, and value products and service from our company. But not only the
differentiation which has high price one but also focus on low cost products for the
customers who have limited budget.
2.6.2.1 Production differentiation;
In Phanasniknom, Choburi, there are a few of company who operate florists and
souvenirs for events so we would like to be the first company in there. There is no one
who decorates flowers with fruits or other stuff like iron or different styles, and also
souvenirs we will be the first shop who create it unique for each customer. Then we will
have a few of competitor who are only a florist or wedding planner which is the old
shop one. Our company will serve the customer satisfaction to reach their expectation
that may create the loyalty to our company. Depending on customer decision, we try to
reduce to problem or if it happens we will learn from it and develop to be better in the
future. So that, we aim to deliver the different product styles which impress our
customers mind.
2.6.3 Functional level strategy

This one is our competitive advantage which related with our value and function
in our company. We have to serve quality and efficiency to let them see value delivery.
2.6.3.1 Marketing mix strategies;
For this segment we use 4Ps (Product, Price, Place, and Promotion) to
understand customer behavior and their needs.
1) Product
People tend to want more different products and service to make them
feel special in their days. So we provide them the creative decoration
styles and souvenirs. We try to deliver higher quality and characteristic
products than competitor.
2) Price
12
We will set an acceptable and reasonable price depending on the cost and
price rate in the market.
3) Place
We selected Panassnikhom, Chonburi, because there is always setting
events and celebrations in town that need decorations and souvenirs. Our
company will be the big shop located in town and to be the first shop that
operates this business.
4) Promotion
We will set the promotion during occasions like New Year Day,
Valentine‟s Day, and other ceremony depending on the period.
2.6.3.2 Human resource management;
Our staffs will be trained to be a professional in decoration and creation. We will
focus on a person who is good at arts and designs. We aim to develop our employee to
be skillful and ethical to show our customers that they won‟t be regret with our
company.
13
Chapter 3
Market Feasibility Study
14
3.1 Market Analysis
3.1.1 Political Factors

THAILAND SME EXPO 2010 launched with backing Prime Minister SME is
the heart of Thailand strengthens sustainable. There is an aim of this work will provide
a stand for promoting national SME. Development to global market including the
expected value of business matching at least 3,000 million baht and confirmation
preparation for a job every year, Mr. Aphisit Vejjajiva said that in the past the country's
economy will focus on macroeconomics or exporting mainly not looking at the medium
and small business or SME much. On the other hand SME is important role in driving
economy. Because of have operators Thai SME business over 2.82 million, or estimate
99.7 per cent over the whole business of the country, value GDP 37.8 of the country,
valued at over 3.44 million resulted in employment nearly 9 million people, so the
government focus on to promote SME comprehensive addition to promoting. SMEs
spread across the country not concentrated in central or only in the industrial estate.
Thailand has strong policy emphasis on promoting SME. By the Economic Policy
15
creative to help add value to Thai products from the wisdom, art and culture. Which is
the heart for competitive in the future both domestic and international.
(source: http://thaipostnews.blogspot.com/2010/02/thailand-sme-expo-2010-3000.html)
3.1.2 Economic Factors

The Thai economy in the third quarter year 2553 grew 6.7 percent the first 9
months of the year; the Thai economy grew 9.3 percent, with support from the global
economic recovery and confidence of investors. Include an increase in farm income and
low unemployment rate if the seasonal adjustment factors removed. The Thai economy
contracted from the second quarter percentage 0.2 (% QoQ SA) is a contraction of 2
dividing consecutive quarter.
Thai economy in 2553 is expected to grow by up to three percent 7.9, the factors
supporting the recovery of the global economy and demand for domestic investment
and private consumption expanded by 13.9 and 4.9, respectively, of export products in
U.S. dollars. 25.1 per cent growth.
The Thai economy in 2554 estimated trend is expected to grow by 3.5 percent,
down from -4.5 to 7.9 per cent growth in 2553 from the global economic slowdown and
the likely trend of appreciation of the Baht. The exports will grow 11.7 percent in
consumption and private investment grew 4.3 percent and 9.8 respectively in the range
of general inflation, per cent 2.5 to 3.5 percent unemployment rate, current account
surplus of 1.2 -1.3 percent. 3.3 percent of GDP.
(source: http://www.ryt9.com/s/nesd/1038389)
3.1.3 Soiocultural Factors

Today fresh flowers are also popular than flower elaborate. It conveys the
feeling better and is more natural. At present, there are flower deliveries to make fast
and easy for consumer. To represent the congratulations or condolence in various
16
increasingly has been very popular today. This reflects that people have used flowers to
convey knowledge to the parties. The nature of the people in Chonburi province has a
population of about 1,233,446 people which is part of a migration to work in the
industry that continues to grow. Chonburi is committed professional who is done with
the sea, rice farm, livestock and mining. In general, the original people of Chonburi
Province, is known as a real person as a barely life, savings, diligently, friendly. And
always ready to welcome visitors. Most people are Buddhists up to 97 percent today;
Chonburi is the era of development. There is completeness in terms of natural resources,
tourism industry, agriculture, lifestyle and culture to maintain the beauty of a fully local.
Become a charming seaside town to see attractive and highly secure. Inclusive of
agricultural products and has become renowned as the province of Chonburi economic
prosperity. People live well Income level of moisture in the family and society, holistic
enough Lead to be "City of Economic and Agriculturist complete. The flowers are a
representative of the media to feel good for each other anytime, anywhere.
(source:
http://www.chonburi.go.th/%E0%B8%AA%E0%B8%A7%E0%B8%AA%E0%B8%94
%E0%B9%80%E0%B8%A1%E0%B8%AD%E0%B8%87%E0%B8%8A%E0%B8%A
5/%E0%B8%A3%E0%B8%88%E0%B8%81%E0%B8%8A%E0%B8%A5%E0%B8%
9A%E0%B8%A3/tabid/59/language/th-TH/Default.aspx?PageContentID=45)
3.1.4 Technology Factors

Flower business is using technology to assist in the design and decoration
including the elements and easy-to-be customers as part of the design. Their customers‟
satisfy. It is also used for the design of the gift of command by the client. This will cost
the business. It also helps in terms of convenience to the customer. Current business
technologies must be involved in order to create cutting edge of business, as well as the
development of increasingly reflects the potential to conduct ongoing.
3.2 Competition Analysis (3C Analysis)
3.2.1 Competitor Analysis
17
Our company set up in Phanusnikom Chonburi Because of in Phanusnikom
doesn‟t have flower arrangement and souvenir shop. There are only small shops and
market. Each shop is small and don‟t have much choice and don't have delivery service.
But Infinity florist and Souvenir Company it difference .We have more product and
more service for our customer. We research about competitor in Chonburi have many
shop but each shop have small service but Isanflower and pattaya florist have service
same our store so we analysis their store for plan customer want, need and satisfaction
our company. We are analysis competitor in below.
Competitor Geographic Product & Service Strength Weakness

coverage
1) Isan Pattaya Isan Flowers have 1) Isanflower 1) don‟t have
flower products for every have a good service out of
customer‟s budget, large location in place
or small. All Isan Flowers cental in 2) Little
products, from the Pattya flower
inexpensive ones to our 2) Easy variety
Luxury/The Best Range, communicati
are carefully & on
thoughtfully created or 3) Most
chosen, beautiful, high customer is
qualit. Isan flowers Foreigner
separate product by style, 4) Have a
flower, color, size, smell, web site for
frequency, theme, custom contact
and occasion more various
for product. Isan flower
have delivery for custom
and Isan flower product
categories-By style
18
2) Pattaya Pattaya Product have flower and 1) Good 1) The florist
florist gift location in pattern in
Service have flower Pattaya normal
delivery and order by 2) Most 2) Don‟t have
internet and phone for 24 customer is service out of
hour delivery foreigner place
3) Easy for -
communicati
on
4) Fast
delivery
5) Have
website for
contact
3) Sumalee Muang The products and services 1) Opened a 1) The florist
Chonburi of Sumalee florist is long time pattern in
including serve flower and 2) Near normal
special event arrangement market place 2) Don‟t have
needs. Have wedding 3) More a website
decoration and quest gift, experience store
birthday flower basket, arrangement
graduation ceremony but flower
don‟t have website 4) Easy for
information for customer communicati
on
4) Chonburi Muang The products and services 1) Open store 1) Don‟t have
florist Chonburi of Chonburi florist have near market promoted via
service for all flower center internet
orders placed, flower 2) Quick 2) Little
quick delivery every areas delivery flower
in Chonburi ,flower and 3) Easy for variety
gift delivery, Every communicati
19
ceremony. on
Our company analysis competitor we know market in chonburi. These are

advantage for our company and our company tries hardly to create their own identities
for their brands. They emphasize the quality of products and services. And set the price
as cheapest as possible. They are all having many interesting campaigns and promotions
to promote their brands. Most of our competitors have good locations and many of them
are the stores which were opened for a long time. Moreover if have good information
competitor we can successful for our company.
3.2.2 Customer Analysis
Most customer who prefer to deliver flowers, appreciate the joy, respect my
condolences. Therefore florist flower most customers include business groups of people
working students and divided into two main target groups. First group individual are
divided into three levels.
3.2.2.1 Low-level students with low-income students, emphasis on form
but not on quantity, flower arrangements must be affordable.
3.2.2.2 Medium level to customers who work with middle income levels,
not on form focus on volume and price or must not too expensive.
3.2.2.3 High-level business customers with high-income emphasis on
form do not focus on the content. Flower arrangement can be set high
price. Second group Corporation such as temple, religion activity,
association, partnership, company and Hotel.
Moreover, most customers want the patterns that differ from flower new and
fresh flowers all the time. Packaging as a beautiful floral blend with the same would
make customer satisfaction and delivery flowers to those who want to deliver.
Considered that the service will impress their customers and present various forms of
goods to the customer's office or submit the form via Internet enables customers to save
time and expenses as well. Result in highly impressive clients.
3.2.3 Competitive analysis
20
According to Five-force model for analyze competitive of florist and souvenir
business in Chonburi. Moreover, also analyze market to understand our business
environment with surrounding that affect to our business.
3.2.3.1 Rivalry among current competitors
Florist and souvenir business in Chonburi has 14 entrepreneurs. Most shops are
located in the Banglamung and Mueang districts. We intend to open our shop in Phanat
Nikhom district that had a flower shop located before, Sumalee Florist. It is not a big
brand, but famous in the district and already opened for 6 years. So, competition for
struggle customers and market may be difficult. Normally, the customers who use the
kind of this business like to choose the shop that near to the place that used to set. We
are close to the venue rather than another to take advantage to reach customers as more
convenience. However, we should not cut off others flower shops from our competitors.
They might think about new strategy for selling to competition. Therefore, we should
develop our products and services constantly to prevent the taking advantage by rivals.
3.2.3.2 Bargaining power of suppliers
Most of materials and equipments are come from same supplier, especially
supplier in Pak Klong Market. Thus, suppliers will have more bargaining power but
there are some methods that can be used to reduce the bargaining power of suppliers.
For example gathering of entrepreneurs, and then go to negotiate with suppliers that we
want to purchase many materials and equipments and reduce the wholesale price for us.
The cost will be reduced and can make more profit without increase prices or find
promotions to attract customers.
3.2.3.3 Bargaining power of customer
From gathering of entrepreneurs is not only getting benefit from order materials
and equipments. There are also reduced the bargaining power of customers. This
method uses the same price as a standard price. This can be done easily because the
supplies of materials and equipments have the same cost and source. Customer will not
be able to negotiate the prices because the prices of each shop are the same. For the
profitability depends on the technique of each shop without affecting the price agreed
for example, making beauty package by bringing to wrap with plastic color-bright type
and put the details of the customer needs. This may increase the price depending on the
case.
3.2.3.4 Threat or substitute products or services
21
The type of our products and services are intended to be a memorial of special
occasions such as wedding, funeral, and birthday party, opening the event or shop, and
so on. Products and services will be provided must be unique and different in services
or difficult to making like a handmade or natural container to arranging flower. This
will reduce the power of substitute products because if customers can do by themselves,
they would not purchase our products and services. We should try to find the new
products and services that look good and to show the intent of the customers.
3.2.3.5 Threat of new entrants

Florist and souvenir is a business that easy to make money because people like
to send some flowers or gifts in the festivals or special occasions. So, this business is so
interesting to investment. We have to create the brand to make loyalty customers.
Normally, customers want to see and compare the products and services to choose the
best one. The new entrants who want to do the business will have less opportunity to
sell products and services. Another way is expanding our brand by setting up a new
shop with a new name but the original owner. This way can prevent other entrepreneurs
to compete with us because there are many shops and will reduce the customers and
revenue themselves.
3.3 STP analysis
3.3.1 Segmentation
According to the competitor and competitive analysis, the florist and souvenir
shops in Chonburi are divided into 3 categories following the level of services and
functions. In each category will focus on different customers.
For Infinity florist & souvenir segment market by using the type of service that
provided to customer in Chonburi to be the base for segmenting market. We concern to
provide products and services with reasonable price for each segment. We aim to serve
the new products with natural both of arranging and equipments and also aim to serve
the service with quality. The segment market of Infinity florist & souvenir will
following
3.3.1.1 Premium market
22
This segmentation is the special products and services such as special flowers
arranging set to special event, ordering flowers that have to import from other countries,
service to customers who want and satisfied to use high quality of product, and so on.
The customers of this segment will be people who have high income and
satisfied to spend in high budget to purchase the luxury products and the best service.
Who satisfied to use the high quality of products and brand name.
3.3.1.2 Normal market
This segment is providing products and services in good quality and not too
expensive.
3.3.1.3 Low market
This segment is people who are students and people with low income. They
focus on the low reasonable price by comparing with quantity of flower.
3.3.2 Target market

Infinity florist & souvenir consider choosing the normal market because we aim
to provide the good quality of products with acceptable price. The location of our
business is close to church, school, temple, and etc. There are the place that used to be
venues of special and important occasions such as wedding, funeral, graduation, and
more. Some types of the special events, some customers want to order in the special
product such as wedding, the important situation of their life. Someone needs the
special decoration with special products to make the impression memory to themselves.
Another one is general product, we provide this type of products and services to the
customers who do not need to use the special one or just want to arrange some flowers
in some of area with general or low prices. We consider that the power of purchasing of
customers. They may satisfy to get the good quality of products and services with fair
and low price based on the case.
3.3.3 Positioning
According to the product and service of florist and souvenir business in
Chonburi. We serve in variety of product and service with acceptable and low prices.
The Infinity florist & souvenir should be ranked in table below;
Competitors Isan Flower Pattaya Florist Sumalee Chonburi Infinity florist
23
Florist & souvenir
Variety of Product Less Middle High Low High
Variety of Service Middle Middle High High High
Provide souvenirs No Yes No No Yes
Easy to asses Yes Yes Yes Yes Yes
Distribution of More Low Low Low More
channal
Price Middle Expensive Middle High Middle
3.4 Marketing Mix Strategy

About our strategy of selling is focusing on 4Ps; Product, Price, Place, and
Promotion. We aim to control both internal and external environments of the firm. Our
goal is to find out who is our target market and deliver them value to be success.
3.4.1 Product decisions
Our products are flowers decoration and souvenirs which are tangible but we
would like to serve them more with our great service.
 Brand name: Infinity Florist& Souvenir Company
 Functionality: Decorate the place to be more lively, and to thank you our
guest for coming by souvenirs
 Styling: Unique and characteristic styles for each event as our customers
need
 Quality: Medium-High quality
 Packaging: Natural package to support global warming, degradable
materials, or cost saving packaging
 Repairs and support: Products reservation, readiness
 Warranty: Satisfaction guaranteed
 Accessories and service: Free of transportation for buying both flowers
decoration and souvenirs, free products sampling
24
3.4.2 Price decisions
We set the acceptable price of each quality product. We try to cover customer
from medium to high level.
 Pricing strategy: We use psychological pricing which based on the
signals of product quality, price, and value to perceive them.
 Seasonal pricing: High price in high season (special days e.g. New Year
Day, Valentine‟s Day, etc.), low price in low season
 Price discrimination: Price is depending on the quality of materials and
the amount of ordering
 Remark: Earnest money for the half of total price
 Price rates
Flowers decoration rates

Decoration Types Price Rates
S 500 ฿
Bouquet M 800 ฿
L 1,500 ฿
Flower arbor 3,000 ฿
Wreath A 500 ฿
B 900 ฿
A 3,000 ฿
Funeral place B 5,000 ฿
C 9,990 ฿
A 6,500 ฿
Wedding place B 12,000 ฿
C 20,000 ฿
Souvenir rates
Souvenir Types Price Rates/ Piece
Basketworks A 30 ฿
B 50 ฿
Papers
A 40 ฿
25
B 45 ฿
C 50 ฿
A 30 ฿
Metals B 40 ฿
C 45 ฿
D 55 ฿
Clothes A 40 ฿
B 45 ฿
* Both flowers decoration and souvenir rates can be changed depending

on the cost of material and seasonality
3.4.3 Distribution (Place) decisions

For our shop will take place in front of our stockholder‟s house. We aim to be
the biggest company for events decorating and souvenirs.
 Distribution channel: We focus on walk-in customer, telephone ordering
by calling (038) 473553 or (08) 1086 4239, and local press
 Market coverage: We aim to be a selective distribution as we reach
the customer expectation
 Inventory Management: We will order our materials which are not
usually used when we get ordering
We will prepare fresh flowers in fringe and also other basic materials and
equipment for stocking
Other materials those are able to keep for long time will be stocked like
soups, key rings, linens, etc
 Warehousing: Located in our shop
 Order processing: Telephone and walk-in
Generate to be online through website soon
Transferring earnest money to be confirmed
 Transportation: Parcel post or air mail, delivery
26
 Reverse logistic: Reverse the broken or damaged product to us and
receive the new product for free
An example of our shop style
3.4.4 Promotion decisions

We use promotion to generate and up selling our products. This method helps us
to communicate of information to our clients improving positive image of the
company.
3.4.4.1 Promotion strategy: Our Company will use „Push‟ promotional
strategy, according to marketing theory. Because we can promote our
products and sell them during the special occasions like wedding party or
Valentine‟s Day, so to set the promotion and advertising is our best
promotional tool
3.4.4.2 Advertising: Handbills, posters and name cards
3.4.4.3 Sales promotion: Vouchers and coupons, Customer Relationship
Management (CRM) for returning customer
3.5 Sale forecasting/ Profit estimated

3.5.1 Market Demand
27
Defined Customer Group: Customers who arrange event and need flowers
decoration and souvenirs. We separated them into three categories as flowing:
Defined Geographic Area: Customers in Chonburi
1.1 Marriage
Number of Marriage in
Chonburi
Year Number
2549 ฿12,069.00
2550 ฿11,383.00
2551 ฿12,966.00
2552 ฿12,279.00
Total ฿48,697.00
Average ฿12,174.25
Number of Marriage in Chonburi

฿13,500.00
฿13,000.00
Number of Marriage
฿12,500.00
฿12,000.00
Number of Marriage in
฿11,500.00 Chonburi
฿11,000.00
฿10,500.00
2549 2550 2551 2552
Year
Defined Time Period: A calendar year like New Year Day, Valentine‟s Day,
Song Kran Day, Teacher‟s Day, and etc
Defined Marketing Environment: High consumer buying flowers and
souvenirs affected by the occasions
28
Number of Customers in Chonburi: 1,204,568 people
Population in Chonburi
2547 1,142,985
2548 1,172,432
2549 1,209,290
2550 1,233,446
2551 1,264,687
Total 6,022,840
Average 1,204,568
Average Selling Price per an Event: 410,875,000 baht
Events Income Percantage

New Year Day ฿600,000,000.00 36.50%
Valentine's Day ฿270,000,000.00 16.44%
Mother's Day ฿756,000,000.00 46.00%
ETC ฿17,500,000.00 1.06%
฿
Total 1,643,500,000.00 100.00%
Average ฿410,875,000.00 25.00%
29
The Percantage of Income in Each Event
New Year Day

Valentine's Day
Mother's Day
ETC
3.5.2 Market Based Sale Forecast

In this segment, we are not going down to do the marketing research yet
but we did the estimation for the calendar year. There are many special
occasions for example New Year day, Valentine‟s Day, Thai traditional
days, and so on that we can use the marketing strategy to force our
customer to buy. Our products are to be a sign of celebration and
congratulation in their special day life. Then our strategy is to gain more
profit in high seasons.
3.5.3 Resource Based Sale Forecast

For resources based sale forecast, they are related with product cost
directly. This is the most important factor for our company as we have to
buy flowers and other materials to create souvenirs. The cost of materials
may depend on economic situation and also the goods in a season. There
are the methods following;
30
Maintain: It means we will trying to promote the products as much as we
can.
Decrease: to reduce the price and productivity
Increase: to increase the quantity and selling with higher profit rate
3.5.4 The Final Sale Forecast

This sales forecast is estimated to receive in our first year of operating.
We aim to generate more sales at 20% per year. The year after, we estimated
that our company will grow in 20% per year as the growth rate.
In Year1, our company calculated the number of average selling price
per an event and company‟s demand by 0.05% of all income.
31
That‟s:
Average Selling Price per an Event × Company‟s Demand = Total Income of
Year1
410,875,000 baht × 1% = 4,108,750 baht
*We expect that our company will get 1% of total market shares.
Total sale
Year 1 = 4,108,750baht
Year 2 = 4,930,500baht
Year 3 = 5,916,600baht
Year 4 = 7,099,900baht
Year 5 = 8,519,850 baht
32
3.5.4.1 Sale Forecast Year 1 - 5
Sale Forecast of Year 1
33
34
35
Sale Forecast of Year3
36
37
38
39
40
41
42
43
3.5.5 Time Series Analysis
3.5.5.1 Trends: We keep going on fashionable and created product
styles like Korean ways, Western ways, and etc.
3.5.5.2 Seasonal or cyclical factors: We can up-selling during special
events as New Year day or birthday parties. This is related with unusual
days in year round.
3.5.5.3 Erratic Events: We try to handle those problem carefully when
it happens
3.5.5.4 Responses: We will put more advertisement through online
media to increase more sales.
3.6 Marketing Expense

1) Advertising on label
1.1) Tax label 18 baht per month
2) Advertising on blog
2.1) Free website
3) Advertising on Google
3.1) 1250 per months
3.6.1 Advertising Expense Year 1-5
44
(source: http://www.adxzyte.com/signage/educate_sign.html
http://www.be2hand.com/scripts/view.php?prod_id=506143)
45
3.6.2 Florist and souvenir label
3.7 Conclusion
The Infinity florist and Souvenir Company, it has new developed more than old
flower shop. We can do marketing analysis for know situation in present that can
understand political factor, Economic factor, Sociocultural factor and Technology
factor. Then we can analysis competition of each shop in Chonburi and analyze to
customer from Questionnaire. We use STP analysis including segmentation, it can
separate 3 type for provide to customer in Chonburi to be the base for segmentation,
46
Target market, we choose good location that near church, school, temple, and etc. It‟s
very comfortable, Position is good quality because we can do high product and low
price in our Company. We are survey marketing mix in Chonburi on the internet for
easy management for our shop. Sale forecasting, we can make a lot of profit in each
year. And marketing expense, we use advising for connect with customer by use
website, magazine and news.
47
Chapter 4
Technical Feasibility Study
48
4.1 Production and Operation Analysis
4.1.1 Product Characteristic
4.1.1.1Souvenirs
1) Basketworks
Basketworks market is one of tourist attractions of Chonburi. There are a lot

of bamboo products that our company will use it as a material of making
souvenirs. Its cost is cheap and easy to find. To illustrate are baskets, cone-
shaped cover, spatula, and others.
2) Papers
Products of paper are various and they are used to be widespread. We can
make a great number of souvenirs by using many of them like handbooks,
bookmarks, cards, paper marches, and etc.
49
3) Metals
The souvenirs made from metal are including silverwares, key-rings, mobile
phone strap, and more.
4) Clothes
The clothes can create several of souvenirs i.e. dolls, handbags, scarf, hair
accessories, and etc. The costs of clothes are also diversity depending on the
quantity of sale amount and the quality of clothes.
50
4.1.1.2 Flowers decoration
1) Bouquets
Bouquets from our company will be different from by including more style
and unique. For examples are fruits bouquet, candies bouquet, dolls, and
more.
Fruits bouquet
2) Flower arbors
51
Arbors can be made by flowers or other decorations like crystals, glassware,
and linens. Flower arbors are a decoration item for ceremony like wedding
party, anniversary, and other parties as request.
3) Even orders
Candy Bouquet
The even ordering is depended on customer requirement such as for birthday

party, meeting, workshop, or exhibition.
4.1.2 Specification, Feathers, Dimension, Life Time, etc.

4.1.2.1 Flower decoration
Flowers have a short life time, then the productivity and selling process
should be performed in a limited time. We will select the flowers that
durable and have longer lifetime to sell.
4.1.2.2 Souvenir
52
The souvenirs that made from foods or snacks have shorter lifetime than the
souvenir making from metal, paper, and clothes. We aim to generate the sale
of souvenir from foods first.
4.1.2.3 Production/Services Process
4.1.3 The purposes of arrangement

4.1.3.1 Primary information
1) What is the occasion or purpose? E.g. celebration, taking care, or
condolence
2) Customer‟s budget
3) The importance of receiver
4) Like or dislike things
4.1.3.2 Product format
1) To save cost and time of creating products
4.1.4 Materials
1) Materials used in flower arrangement or souvenir like scissor,
knife, ribbon, or sewing machine
2) Containers used to contain the flowers or souvenir packaging
3) Following the direction of using scissor and other machine to
extend their life
4.1.5 Preparing flowers or souvenir stuffs
1) Flower that has a lot of leafs or long stem should be cut first, or a
cloth used to make souvenir should be measured and trim
2) Putting flowers in syrup will fresh and enhance the beauty of
flowers
53
4.1.6 Creating products
4.1.6.1 Flowers arrangement
Flowers arrangement is a kind of arts. Our company will concern
about 6 component of arranging flowers.
1) Balance
2) Proportion
3) Scale
4) Contrast
5) Dominance
6) Rhythm
The amount of flowers is depending on the size requirement and

appropriate objective. The following is the method of making bouquet.
1) Dividing flowers into colors
2) Putting the material for flowers fixing as format design
3) Lay down the container on table
4) Considering the freshness and durability of flowers and leafs
5) Thinking about position of flowers
6) Select the longest stem and bud flowers
7) Put the first flower in the middle, lean it to the back
8) Arrange the flowers as the form, put the leafs in the blanks
9) Fill in the flowers to fulfill the bouquet
10) Check the durability by shaking the bouquet and another point of it
4.1.6.2 Creating souvenir
The processes of making a souvenir are various by designs and
materials used. We will follow these steps:
1) Preparing materials used like key ring, cutter, or clothes1
2) Make it as the form as sewing, painting, or carving
3) Compose the materials prepared
4) Check the tidiness
5) Packaging
54
4.1.7 Delivery
1) Inform the place to our employees before that date to plan route and
method of delivering
2) Pack the product for sending
3) Deliver products as time agreement
4.1.7.1 Location
Our company takes place Phanasnikhom, Chonburi. It is near many
interesting place like a catholic church, two temples, private school, school‟s
event hall, and local markets. We selected this location because there are many
activities arranged in this area.
4.1.7.1.1 Private school activities
1) Kindergarten graduation
2) Pre-high school graduation
3) Alumni party
4.1.7.1.2 Church activities
1) Anniversary ceremony
2) Lady‟s day
3) Christmas day
4) Easter day
5) Funeral
4.1.7.1.3 Activities at temples
1) Buddhist festivals
2) Thai New Year day
3) Buddhist ordination
4) Funeral
4.1.7.1.4 Special occasions
1) Birthday party
2) Wedding party
3) Anniversary
4) Meeting
5) Catering
6) Etc
55
Our Shop
Company’s address: 10, Intarasa Street, Phanasnikhom, Chonburi, 20140

Tel: 038-473553
Distance: 104 km. from Bangkok
4.1.8 Facility Layout
For the facility layout of our company is designing new facilities since we
are a new company. We aim to introduce new products and service in that area.
56
4.1.8.1 Objectives
1) To make the smooth flow of productivity
2) To enhance the organization orders
3) To decrease the materials in stock and on-going process
4) To spend the space efficiency
5) To reduce cost of good
6) To let the employees working in comfortable environment
7) To avoid bottlenecks
8) To enhance safety
4.1.8.2 Facility layout format

4.1.8.2.1 Product design
57
1) Perform the productivities depend on those products
2) Using machine, tools, and equipments as the productivities
3) The machines is specific for that performance
4.1.8.2.2 Process design
1) Prepare from the process
2) Organize machine, tools, and equipments as the process
3) Flowers decoration and souvenirs will run in difference processes
4.1.8.2.3 Fixed-location
1) Fix the refrigerators and sewing machines on the places
2) The counter is placed near the entrance door
4.1.8.3 Design layout
4.1.8.3.1 Process layout
1) Manual
1.1) Operation sequence
2) Computer based
2.1) Billing
2.2) Product design
2.3) Ordering
4.1.8.3.2 Product layout
1) Line balancing technique
4.1.8.4 Machine/Tools/ Equipments
4.1.8.4.1 Machine
1) Sewing machine
2) Refrigerator
3) Computer
4) Printer
5) Cash register
6) Telephone
7) Television
8) Speaker
9) Air-conditioner
10) Fan
4.1.8.4.2 Tools and Equipment
58
1) Facility equipments
1.1) Furniture
2) Office equipments
2.1) Pen and pencil
2.2) Paper
2.3) Scissor
2.4) Ruler
2.5) Marker
2.6) Stapler
2.7) Cutter
2.8) Pliers
2.9) First aid box
4.1.8.5 Logistics Management
4.1.8.5.1 Ordering Management / Customer Service
4.1.8.5.1.1 Billing
1) Managing tracking and reconciling payment
2) Based on billing system
3) Pay earnest money and fill in order form
4.1.8.5.1.2 Contract management
1) The legal basis to protect our company transactions
2) Protect company‟s commercial and company‟s rights
4.1.8.5.1.3 Pricing
1) Using pricing rates on rate tables
2) Complex price will be on agreement
4.1.8.5.4 Proposal management
1) Set the objective
2) List the advantage and disadvantage of working process
3) Consider the short-term and long-term solving
4) Improve working performance and teamwork
5) Evaluate the result
4.1.8.5.5 Sale order management
1) Our company will buy a software of sales order management
59
4.1.8.5.6 Trade document processing
1) Using software system
4.1.8.5.2 Packaging
4.1.8.5.2.1 Flowers decoration
1) Depend on styles of arrangement
2) Using recycle materials i.e. paper, plastic, etc.
3) Container must protect the freshness of flowers
4.1.8.5.2.2 Souvenirs
1) Saving cost of package to maximize profit
2) Design on customer‟s demand
4.1.8.5.3 Transportations
4.1.8.5.3.1 Domestic
1) Motor bicycles
2) Vans
3) Posts
4.1.8.5.3.2 International
1) Air Posts
4.1.8.5.4 Warehouse Management
4.1.8.5.4.1 Flowers storage
1) The storage takes place on the first floor
2) Buy the flowers just an amount for sale per day
4.1.8.5.4.2 Souvenir storage
1) The storage takes place on the second floor
2) Order the materials that always used like key rings, ribbons, etc.
4.1.8.5.5 Inventory Control Management
4.1.8.5.5..1 Flowers
1) Sell the flowers that have short lifetime first
2) Buy the flowers in season for selling
3) Our materials will buy as ordering
4.1.8.5.5.2 Souvenirs
1) The materials will buy as customer‟s order
60
4.1.8.5.6 Manufacturing
4.1.8.5.6.1 Short-term
1) Setting the schedule for small ordering or urgent work like in 1 day, 3
days but not exceed 7 days
2) Ex. A bouquet for birthday gift, 100 pieces of souvenirs
4.1.8.5.6.2 Long-term
1) Plan the schedule for a huge project that cannot finish it in a week
2) The schedule will be planed for 1-12 months
3) Ex. wedding party, meeting, alumni.
4.1.8.6 Facility Management
4.1.8.6.1 Safety and Health
1) Social security
2) Life insurance
3) Fire alarm system
4) Sprinkler system
5) Security camera
4.1.8.6.2 Maintenance System
1) Schedule for checking machine (weekly, monthly, yearly)
2) Controlling appropriate temperature
3) Machine and equipment insurance
4) Repair and maintenance
5) Electricity and water saving
4.1.8.6.3 Business Continuity Planning
1) Inform the procedure if natural disaster happens
2) Fire escape training
3) First Aid training
61
4.2 cost of investment
4.2.1 Pre-Operating cost
Pre-Operating cost Price/Unit Unit Total
Building and land 3,021,710 1 3,021,710
Cost for modifies & Decoration
(200 square metres) 2,000,000 200 2,000,000
Install telephone 5,230 1 5,230
Total 5,026,940
(sources: http://www.ca.tot.co.th/contact.php
http://www.goodideainterior.com/our_service.html)
4.3 Investment Cost
4.3.1 Land
We have the land already, is property of Kancharee‟s family. Infinity florist &
Souvenir Company is located close to many event places such as school, temple,
church, and so on. There is an advantage land to run our business. So, we do not need to
find somewhere else to buy or rent land.
62
4.3.2 Building
We design to build our shop in modern style, 1 floor, 2 bathrooms, 1 living

room, and 2 storages. We make agreement with “Blussel Company” for building
investment 1,821,710 baht. Our company has cash in bank 2,000,000 baht for retain
earning.
4.3.3 Tool & Equipment

Equipment Price/Baht Units Total
8,590 1 8,590
Cash register
1,590 3 4,770
Shelve4
63
13,390 3 40,170
Computer
1,250 3 3,750
Computer table3
499 1 499
Telephone1
4,990 1 4,990
Fax machine1
755 1 755
File cabinet2
64
60 6 336
Document file
20,000 1 20,000
Sofa1
300 5 1,500
Chair10
10,000 2 20,000
Refrigerator2
20,000 1 20,000
Security camera5
3,000 3 9,000
65
Sewing machine
25 3 75
Scissor
50 3 150
Cutter
95 3 285
Photo Album
9,000 2 18,000
Air conditioner
784,000 1 784,000
Car
69,000 1 69,000
Motorbike
66
Total - - 1,005,870 baht
4.3.4 Investment cost
INVESTMENT AMOUNT DEPRECIATION ANNUAL MONTHLY
DEP. DEP.
Building 3,021,710 20 YEARS 12,590.46 151,085.50
Car 784,000 5 YEARS 156,800 13,066.67
Security camera 20,000 5 YEARS 4000 333.333333
Air conditioner 18,000 5 YEARS 3,600 300
Motorbike 69,000 5 YEARS 23,000 1,916.67
Computer 13,390 3 YEARS 4,463 371.944444
Refrigerator 20,000 3 YEARS 6,667 555.555556
Sewing machine 9,000 3 YEARS 3,000 250
Fax machine 4,990 3 YEARS 1663.333 138.61111
Cash register 8,590 3 YEARS 2863.333 238.61111
67
Year1
Office Amount Jan FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total
Land and Building 3,021,710 12590 12590 12590 12590 12590 12590 12590 12590 12590 12590 12590 12590 151086
Car 784,000 13067 13067 13067 13067 13067 13067 13067 13067 13067 13067 13067 13067 156800
Security camera 20,000 333 333 333 333 333 333 333 333 333 333 333 333 4000
Air conditioner 18,000 300 300 300 300 300 300 300 300 300 300 300 300 3600
Motorbike 69,000 1150 1150 1150 1150 1150 1150 1150 1150 1150 1150 1150 1150 13800
Computer 13,390 372 372 372 372 372 372 372 372 372 372 372 372 4463
Refrigerator 20,000 556 556 556 556 556 556 556 556 556 556 556 556 6667
Sewing machine 9,000 250 250 250 250 250 250 250 250 250 250 250 250 3000
Fax machine 4,990 139 139 139 139 139 139 139 139 139 139 139 139 1663
Cash register 8,590 239 239 239 239 239 239 239 239 239 239 239 239 2863
Total 3,968,680 28995 28995 28995 28995 28995 28995 28995 28995 28995 28995 28995 28995 347942
68
Year2
Total
Office Amount Jan FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total amount
Land and Building 3,021,710 12590 12590 12590 12590 12590 12590 12590 12590 12590 12590 12590 12590 151086 302171
Car 784,000 13067 13067 13067 13067 13067 13067 13067 13067 13067 13067 13067 13067 156800 313600
Security camera 20,000 333 333 333 333 333 333 333 333 333 333 333 333 4000 8000
Air conditioner 18,000 300 300 300 300 300 300 300 300 300 300 300 300 3600 7200
Motorbike 69,000 1150 1150 1150 1150 1150 1150 1150 1150 1150 1150 1150 1150 13800 27600
Computer 13,390 372 372 372 372 372 372 372 372 372 372 372 372 4463 8927
Refrigerator 20,000 556 556 556 556 556 556 556 556 556 556 556 556 6667 13333
Sewing machine 9,000 250 250 250 250 250 250 250 250 250 250 250 250 3000 6000
Fax machine 4,990 139 139 139 139 139 139 139 139 139 139 139 139 1663 3327
Cash register 8,590 239 239 239 239 239 239 239 239 239 239 239 239 2863 5727
Total 3,968,680 28995 28995 28995 28995 28995 28995 28995 28995 28995 28995 28995 28995 347942 695884
69
Year3
Total
Car 784,000 13067 13067 13067 13067 13067 13067 13067 13067 13067 13067 13067 13067 156800 470400
Security camera 20,000 333 333 333 333 333 333 333 333 333 333 333 333 4000 12000
Air conditioner 18,000 300 300 300 300 300 300 300 300 300 300 300 300 3600 10800
Motorbike 69,000 1150 1150 1150 1150 1150 1150 1150 1150 1150 1150 1150 1150 13800 41400
Computer 13,390 372 372 372 372 372 372 372 372 372 372 372 372 4463 13390
Refrigerator 20,000 556 556 556 556 556 556 556 556 556 556 556 556 6667 20000
Sewing machine 9,000 250 250 250 250 250 250 250 250 250 250 250 250 3000 9000
Fax machine 4,990 139 139 139 139 139 139 139 139 139 139 139 139 1663 4990
Cash register 8,590 239 239 239 239 239 239 239 239 239 239 239 239 2863 8590
Total 3,968,680 28995 28995 28995 28995 28995 28995 28995 28995 28995 28995 28995 28995 347942 1043827
70
Year4
Total
Car 784,000 13067 13067 13067 13067 13067 13067 13067 13067 13067 13067 13067 13067 156800 39200
Security camera 20,000 333 333 333 333 333 333 333 333 333 333 333 333 4000 16000
Air conditioner 18,000 300 300 300 300 300 300 300 300 300 300 300 300 3600 14400
Motorbike 69,000 1150 1150 1150 1150 1150 1150 1150 1150 1150 1150 1150 1150 13800 55200
Computer 13,390 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Refrigerator 20,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sewing machine 9,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Fax machine 4,990 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash register 8,590 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 3,968,680 27440 27440 27440 27440 27440 27440 27440 27440 27440 27440 27440 27440 329286 729142
71
Year5
Total
Car 784,000 13067 13067 13067 13067 13067 13067 13067 13067 13067 13067 13067 13067 156800 784000
Security camera 20,000 333 333 333 333 333 333 333 333 333 333 333 333 4000 20000
Air conditioner 18,000 300 300 300 300 300 300 300 300 300 300 300 300 3600 18000
Motorbike 69,000 1150 1150 1150 1150 1150 1150 1150 1150 1150 1150 1150 1150 13800 69000
Computer 13,390 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Refrigerator 20,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sewing machine 9,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Fax machine 4,990 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash register 8,590 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 3,968,680 27440 27440 27440 27440 27440 27440 27440 27440 27440 27440 27440 27440 329286 1646428
72
4.4 operation cost
Company got order from Tai market because this market is central market of
Thailand. We use various flower the most satisfaction for customer in order that flowers
depend on event.
4.4.1 Raw material cost
4.4.1.1 Flowers
1. Orchid
- Jo 60 baht /handful
- Jo-deang 140 baht /handful
- Chompoo 50 baht /handful
- Ceza 40 baht /handful
- Bomdeang 70 baht /handful
- Mog 25-30 baht /handful
- Mai yom 70 baht /handful
- Anna 40 baht /handful
- White 80 baht/handful
2. Pandanus leaf 25 baht /bind 50 stem
3. Rose (Tark)
Large size 170 baht /100 flowers
Middle size 120 baht /100 flowers
4. Rose (Chiang mai)
Free size 180 baht/handful
Size 60 cm. 90 baht / 10 flowers
4. Gladiolus 60 baht /handful
5. Red ginger 20 baht /flower
6. Cutter 60 baht /handful
7. Carnation 150 baht /handful
8. White Champak 120-150 baht /per cent
9. Tuberose 70 baht /handful
73
10. Jasmine 600 baht /liter
11. Marigold
Large size 150 baht /per cent
Middle size 100 baht /per cent
Small size 50 baht /per cent
12. Dala flowers 30 baht /flower
13. Tulip 45 baht/flower
14. Lotus (white-red) 10-12 baht /handful
15. Amaranth 60 baht /kilogram
16. Chrysanthemum morifolium 70 baht /handful
17. Bird 25 baht /flower
18. Leaf
- Kuan- im green leaves 15-20 baht /stem
- Visit Xanadu 25 baht /leaf
- Tani banana leaf 120 baht /kilogram
- The betel nut leaves 15-25 baht /handful
- Asparagus setaceus 50-120 baht /per cent
- Betel leaf green 60 baht /kilogram
- Betel purse 50-70 baht /handful
- Bai Tong Phil Solomon cord red 50-70 baht /handful
- Fern leaves of tamarind 10-15 baht /handful
- Serpent fern leaves 15 baht /handful
- Boston fern leaves 15-20 baht /handful
- Bai Yang 50 baht /per cent
- Cordyline 10-20 baht /handful
19. Garland 10-70 baht / bunch
20. Mom Chiangmai 70 baht /handful
21. Mom Malay 120 baht /handful
22. Gerbera 5 baht /flower
23. Crown flower 60 baht /liter
24. Lily white/pink 380 baht /5 bouquet
25. Golden rod 50 baht /handful
74
26. Anthurium
- Large size 14-15 baht /handful
- Middle size 12 baht /handful
- Small size 6-8 baht /handful
27. Aster 60-120 baht /handful
28. Carnation spray 160 baht/handful
29. Indo Jasmine 150 baht/liter
30. Zinnia elegans (mixed color) 285 baht/unit
Total 5,000 Baht/month
*Remark - The cost of flower can change always depend on economic.

- The demand of flower may be more than above depend on
customer want and type of event.
(source: http://www.talaadthai.com/web/resource/default.asp
http://orchidprice.blogth.com/10657/%E1%CA%B4%A7%B5%D2%C3%D2%A7%C3
%D2%A4%D2%A2%E9%CD%C1%D9%C5%C5%E8%D2%CA%D8%B4%C7%D1
%B9%B7%D5%E8+18+%CA%D4%A7%CB%D2%A4%C1+2551.html)
4.4.1.2 Souvenir
Material Price /Unit Total
1. Basketworks
Small basketworks 9*500 4,500
Fan 15*300 4,500
2. Papers
Note book 14*100 1,400
Small boxes 21*100 2,100
Short note 19*300 5,700
3. Metals
Tea spoon 10*100 1,000
Spoon 9.50*100 950
Metal boxes 15*100 1,500
75
Pens 17*100 1,700
Wire heart 26*100 2,600
Key ring
-Sก 3207 8.50*100 850
- Sก 3208 8.50*100 850
- Sก 3502 8.50*100 850
- Sก 4200 9.50*100 950
4. Clothes
Small pillow
- Sผ 002 13.50*100 1,350
- Sผ 003 13.50*100 1,350
Small bag 12*100 1,200

Total 33,350
*Remark - depends on the demand of client

(source: http://www.giftgaemall.com/gift06.php
http://www.108gift.com/paper.php
Pornthip shop: 0850902402)
4.4.2 Direct labor cost

Wage rate for our organization we estimate for rate worker of Chonburi.
Designer 1 person 7,000 baht /month
Florists people 2 person (2* 6,000) 12,000 baht /month
Man-made souvenirs 2 person (2*5,000) 10,000 baht /month
Total 29,000 baht/month
76
4.4.3 Overhead cost
4.4.3.1 Indirect material cost

4.4.3.1.1 Materials
77
78
Material Price
1. Floral form 250 baht/20 piece
2. Water Tube 50 baht/unit
3. Candle Holder 200 baht/set
4. Chicken wire cage 1,000 baht/set
5. Pin frog 30 baht/pack
6. Pliers size 20, 22, 24 200 baht/set
7. Cutter 50 baht/pack
8. Sprig scissors
Size 5” 25 baht/unit (15*2=30)
9. Ribbon scissors
- Size 9 1/4" class H-1901 55 baht/unit
79
- Size 7.5" class H-1903 45 baht/unit (45*2=90)
10. Hot Melt Glue 110 baht/unit
11. Flora tape 100 baht
12. Scotch tape 130 baht/pack
13. Tissue paper 245 baht/pack
14. Moss 500 baht
15. Flower food 500 baht/set
16. Salver plastic 200 baht/set
17. Basket 1,500 baht/set
18. Ceramic dolls 1,000 baht per set
19. Squirt 100 baht/set
20. Vase 1,500 baht/set
Total 7,960 Baht
(source: http://www.thaioffice.co.th/home.php)
4.4.3.2 Indirect labor cost

Delivery Man 1 person 5,000 baht /month
Cashier 1 person 6,000 baht /month
Housekeeper 1 person 6,000 baht /month
Total 17,000 baht /month
4.4.3.3 Others
80
4.4.3.3.1 Water
Estimate drinking 1,000 baht/month
4.4.3.3.2 Petroleum
Estimate use of petroleum 3,000 baht/month
Total 4,000 baht/month

Total operation cost 98,310 baht
4.5 Administration cost

Infinity Florist& Souvenir divide administration expense into administration
cost and selling cost. The administration is electricity, telephone, water fee, salary, etc.
and the selling cost is salary for sale person, marketing activity, and fuel for delivery to
customer. As following below;
Rate of Electricity Price
Time of Use Rate: TOU
Electric power Energy charge Service

demand Fee
charge
(baht / kilovolt) (baht /unit) (bath/month)
Peak Peak Off peak

1.Pressure up to 69 74.14 2.6136 1.1726 228.17
2. Pressure22-33 132.93 2.6950 1.1914 228.17
kilovolt
3. Pressure less than 210.00 2.8408 1.2246 228.17
22 kilovolt
Peak: Monday - Friday09.00am- 22.00 pm.

Off Peak: Monday- Friday 22.00pm. - 09.00 am. And Saturday, Sunday
(Not includeholiday) all day.
(Source: http://www.pea.co.th/th/rates/rates_tou_tod_ft.htm)
81
4.5.1 Calculate Electricity:
Estimate for use electricity Pressure up to 69 kilovolt
Energy charge= 400 unit×= 1078
Estimate for use electricity Pressure up to 69 kilovolt

Energy charge= 850 unit×2.6136= 2221.56
Total 1078+2,221.56+ Vat 7% = 3,390.53 baht/month
Total 3,390.53 *12= 40,686.35baht/year
WATER RATES BY USER No.3 for Chonburi, Pattaya, Lamchabang,

Sriracha, Panatnikom and Banbueng Office
USER TYPES
State
Level of Connection Official and Small
Enterprise,Industrial
water used Business
and large Business
Cum./mont
h baht/cum.
satang/litre baht/cum. satang/litre baht/cum. satang/litre
Low Level Rate 50 Baht Low Level Rate 100 Baht Low Level Rate 200 Baht
0-10 14.20 1.420 15.45 1.545 16.50 1.650
11-20 14.95 1.495 18.20 1.820 19.50 1.950
21-30 17.20 1.720 19.45 1.945 22.50 2.250
31-50 19.20 1.920 20.45 2.045 25.50 2.550
51-80 20.45 2.045 20.85 2.085 27.50 2.750
81-100 20.95 2.095 20.95 2.095 27.75 2.775
101-300 - - 21.05 2.105 28.00 2.800
301-1,000 - - 21.15 2.115 28.25 2.825
1,001-2,000 - - 21.25 2.125 28.00 2.800
2,001-3,000 - - 21.35 2.135 27.75 2.775
82
>3,000 - - 21.45 2.145 27.50 2.750
(Source: http://www.pwa.co.th/service/tariff_rate.html (Provincial waterworks

Authority))
4.5.2 Price of water tariff

(60 cum.*20.45) = 1,227baht
Service Fee = 30 baht
VAT 7% = baht
Total 1,356+ 30 + 85.89 = 1,342 Baht/month
Total 1,342 *12= 16,115 baht/year
4.5.3 Internet cost

TOT hi-speed Internet6 Mb 590 baht/month
Total 590*12 = 7,080 baht/year
(source: http://www.tothispeed.com/)
4.5.4 Telephone cost

1) A call to domestic long-distance and mobile phone to save 30%-70% up on
the destination and time, available from both fixed line phones and public
payphones nationwide.
2) Promotion: Calling long-distance call all over Thailand minimum 0.50 baht/
minute from today to December 2008.
Rate
Pack gate Day Period bath/minute
07.00-17.59 pm. 1.50 bath
Monday-Friday 18.00-21.59 pm. 1.00 bath
22.00-06.59 pm. 0.50 bath
83
Fixed Line 07.00-17.59 pm. 1.50 bath
Saturday-
Sunday 18.00-21.59 pm. 0.75 bath
22.00-06.59 pm. 0.50 bath
Mobile 1.5 bath
(Source:http://www.tot.co.th/index.php?option=com_linkcontent&categoryid=82&Item
id=112&lang=en)
* Service charge 100 baht/month

-*Vat7%
Telephone cost 400+ service charge 100 +Vat7% = 528baht/month
Total 528*12= 6,336baht/year
Total Fax 200 baht/month = 2,400 baht/year
Total Telephone &Fax cost 8,736 baht/year
84
85
4.6 Conclusion
Infinity Florist& Souvenir provides flower into two ways such as sales in our
shop and delivery. The differentiation of category is size and price. Catering, customer
must place an order at least 3 days before events time according to two conditions.
Actually, Infinity Florist and souvenir has short product shelf life as day by day so we
give precedence of product shelf life because maintain product quality and fresh.
Infinity Florist& Souvenir is located near temple, church and school. These place is
social communication in Phanusnikom Chonburi.We choose this area because the place
is convenience- easy to buy or easy to reach. Shop opened every day since 08.00 a.m. to
21.00 p.m. Customer can choose product and package by themselves which known as
self-service and self- selection. Moreover, they can place an order via telephone, and
then delivered according to the condition of distance and price. We concerns of logistic
management because we are a distributor who distribute the product which is short shelf
life. In addition, we have only a supplier experience in arrangement flower.
86
Moreover, Infinity Florist& Souvenir concerns more about customers‟ satisfy so
we try to find the options which enhance customers”
We provide to our customer for making comfortable. We have the facility management
both providing the facility for customers and protection our own shop. In addition, we
give precedence about employees within our organization because if we have a good
person to work in a right position, the business can reach to achievement.
87
Chapter 5
Financial Analysis
88
5.1 Income Statement Year 1-5
Year1
Infinity Florist & Souvenir Company
Income Statement
For the year1, 2011
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
Sales 315440 327390 375180 334280 291180 305270 349990 388590 313390 381510 350230 376300 4108750
Total Revenue 315440 327390 375180 334280 291180 305270 349990 388590 313390 381510 350230 376300 4108750
Cost of Goods Sold
Materials 147650 162700 152100 135650 138800 158450 138450 175450 136900 163500 151500 185900 1847050
Labor & Subcontractors 29000 29000 29000 29000 29000 29000 29000 29000 29000 29000 29000 29000 348000
Other Cost of Goods Sold 10490 10490 10490 10490 10490 10490 10490 10490 10490 10490 10490 10490 125880
Total Cost of Goods Sold 187140 202190 191590 175140 178290 197940 177940 214940 176390 202990 190990 225390 2320930
Gross Income 128300 125200 183590 159140 112890 107330 172050 173650 137000 178520 159240 150910 1787820
Operating Expenses
General & Administrative 3646 3646 3646 3646 3646 3646 3646 3646 3646 3646 3646 3646 43752
Other Operating Expense 16000 16000 16000 16000 16000 16000 16000 16000 16000 16000 16000 16000 192000
Depreciation 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 347942.16
Total Operating Expenses 48641.18 48641.18 48641.18 48641.18 48641.18 48641.18 48641.18 48641.18 48641.18 48641.18 48641.18 48641.18 583694.16
Net Income before Operating 79658.82 76558.82 134948.82 110498.82 64248.82 58688.82 123408.82 125008.82 88358.82 129878.82 110598.82 102268.82 1204125.8
Operating Income(Loss)
Interest Expense 58333.333 58333.333 58333.333 58333.333 58333.333 58333.333 58333.333 58333.333 58333.333 58333.333 58333.333 58333.333 700000
Total Operating Expense 58333.333 58333.333 58333.333 58333.333 58333.333 58333.333 58333.333 58333.333 58333.333 58333.333 58333.333 58333.333 700000
Income (Loss) Before Income Taxes 21325.487 18225.487 76615.487 52165.487 5915.4867 355.48667 65075.487 66675.487 30025.487 71545.487 52265.487 43935.487 504125.84
Provision (benefit) for income taxes 3198.823 2733.823 11492.323 7824.823 887.323 53.323 9761.323 10001.323 4503.823 10731.823 7839.823 6590.323 75618.876
Net Income (Loss) for the year 24524.31 20959.31 88107.81 59990.31 6802.8097 408.80967 74836.81 76676.81 34529.31 82277.31 60105.31 50525.81 579744.72
Retained Earnings beginning of the
year 24524.31 45483.619 133591.43 193581.74 200384.55 200793.36 275630.17 352306.98 386836.29 469113.6 529218.91 579744.72
Retained Earnings 24524.31 45483.619 133591.43 193581.74 200384.55 200793.36 275630.17 352306.98 386836.29 469113.6 529218.91 579744.72
89
Year2
Income Statement
For the year2, 2012
Revenue
Sales 441250 485360 450760 371770 389180 396720 386760 438670 360280 390360 381330 438060 4930500
Total Revenue 441250 485360 450760 371770 389180 396720 386760 438670 360280 390360 381330 438060 4930500
Cost of Goods Sold
Materials 192400 231100 183800 152050 168300 158450 166500 194450 157850 173850 164700 199400 2142850
Gross Income 209360 214770 227470 180230 181390 198780 180770 204730 162940 177020 177140 199170 2313770
Operating Expenses
Depreciation 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 347942.16
Retained Earnings beginning of the year 579744.72 697488.03 821452.84 960022.65 1044266.5 1129844.3 1235420.6 1320285.4 1432704.2 1497064.5 1577616.8 1658307.1 1764331.9
Retained Earnings 697488.03 821452.84 960022.65 1044266.5 1129844.3 1235420.6 1320285.4 1432704.2 1497064.5 1577616.8 1658307.1 1764331.9
90
Year3
Income Statement
For the year3, 2013
Revenue
Sales 534550 574490 479710 483570 454930 454320 487810 529770 474040 457260 473400 512750 5916600
Total Revenue 534550 574490 479710 483570 454930 454320 487810 529770 474040 457260 473400 512750 5916600
Cost of Goods Sold
Materials 237200 269450 200750 199400 200550 186050 219950 236250 218500 202250 202900 229400 2602650
Gross Income 257860 265550 239470 244680 214890 228780 228370 254030 216050 215520 231010 243860 2840070
Operating Expenses
Depreciation 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 347942.16
Retained Earnings beginning of the year 1764311.9 1937830.2 2120192.1 2272561.9 2430923.2 2555026 2695102.3 2834707.1 3003820.9 3129257.7 3254085 3396725.8 3554144.2
Retained Earnings 1937830.2 2120192.1 2272561.9 2430923.2 2555026 2695102.3 2834707.1 3003820.9 3129257.7 3254085 3396725.8 3554144.2
91
Year4
Income Statement
For the year4, 2014
Revenue
Sales 602650 662040 604950 557420 525510 525360 576910 635680 606940 532260 628200 641980 7099900
Total Revenue 602650 662040 604950 557420 525510 525360 576910 635680 606940 532260 628200 641980 7099900
Cost of Goods Sold
Materials 265450 308800 250500 223550 218950 205750 251700 273900 280100 232850 286300 281450 3079300
Gross Income 297710 313750 314960 294380 267070 280120 285720 322290 287350 259920 302410 321040 3546720
Operating Expenses
Depreciation 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 347942.16
92
Retained Earnings beginning of the year 3554144.2 3773490 4011281.8 4250465.1 4465981.4 4650091.2 4849208.5 5054765.8 5302378.6 5509810.4 5685697.8 5910448.6 6156623.9
Retained Earnings 3773490 4011281.8 4250465.1 4465981.4 4650091.2 4849208.5 5054765.8 5302378.6 5509810.4 5685697.8 5910448.6 6156623.9
Year5
Income Statement
For the year5, 2015
Revenue
Sales 727290 746730 686440 679290 674210 684920 705430 758080 715530 695160 723980 722790 8519850
Total Revenue 727290 746730 686440 679290 674210 684920 705430 758080 715530 695160 723980 722790 8519850
Cost of Goods Sold
Materials 321150 345500 287300 273100 280250 252600 305450 329000 322500 296650 330200 317550 3661250
Gross Income 366650 361740 359650 366700 354470 392830 360490 389590 353540 359020 354290 365750 4384720
Operating Expenses
Depreciation 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 28995.18 347942.16
93
Retained Earnings beginning of the year 6156623.9 6455250.7 6748231 7038807.8 7337492.1 7622111.9 7950845.7 8242388.5 8567396.4 8850946.7 9140799 9425211.8 9722803.6
Retained Earnings 6455250.7 6748231 7038807.8 7337492.1 7622111.9 7950845.7 8242388.5 8567396.4 8850946.7 9140799 9425211.8 9722803.6
5.2 Cash Flow Year 1-5
94
Year1
Year2
95
96
Year3
97
Year4
98
Year5
99
Infinity florist &souvenir company
balance sheet
for the year ended December, 31
2011
5.3 Balance Sheet Year 1-5
Jan FEB MAR APR
Infinity MAY
florist JUN company
&souvenir JUL AUG SEP OCT NOV DEC
Assets balance sheet

Current Assets for the year ended December, 31
Cash 1,283,000 1,252,000 1,835,900 1,591,400 2015 1,073,300
1,128,900 1,720,500 1,736,500 1,370,000 1,785,200 1,592,400 1,509,100
Other current assets 463,100 3,060,700 3,243,990 3,300,654 3,345,910 3,460,530 3,490,000 3,553,930 3,560,580 3,590,600 3,868,340 3,876,780
Total current assets 1,746,100 4,312,700 5,079,890 4,892,054 4,474,810 4,533,830 5,210,500 5,290,430 4,930,580 5,375,800 5,460,740 5,385,880
Fix assets
Equipment 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870
Building and Land 3,021,710 3,021,710 3,021,710 3,021,710 3,021,710 3,021,710 3,021,710 3,021,710 3,021,710 3,021,710 3,021,710 3,021,710
Total fix assets 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580
Total assets 5,773,680 8,340,280 9,107,470 8,919,634 8,502,390 8,561,410 9,238,080 9,318,010 8,958,160 9,403,380 9,488,320 9,413,460
Liabilities and Equity
Liabilities
Current Liabilities
Taxes payable 749,156 3,294,796 3,973,879 3,726,052 3,302,005 3,360,617 3,962,450 3,965,703 3,571,324 3,934,266 3,959,101 3,833,715
Total current liabilities 749,156 3,294,796 3,973,879 3,726,052 3,302,005 3,360,617 3,962,450 3,965,703 3,571,324 3,934,266 3,959,101 3,833,715
Non current liabilities
Long term debt 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000
Total non current liabilities 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000
100
Total liabilities 5,749,156 8,294,796 8,973,879 8,726,052 8,302,005 8,360,617 8,962,450 8,965,703 8,571,324 8,934,266 8,959,101 8,833,715
Equity
Retained earning 24,524 45,484 133,591 193,582 200,385 200,793 275,630 352,307 386,836 469,114 529,219 579,745
Total Equity 24,524 45,484 133,591 193,582 200,385 200,793 275,630 352,307 386,836 469,114 529,219 579,745
Total liabilities and equity 5,773,680 8,340,280 9,107,470 8,919,634 8,502,390 8,561,410 9,238,080 9,318,010 8,958,160 9,403,380 9,488,320 9,413,460

balance sheet
2012
Jan FEB MAR APR

Infinity MAY&souvenir
florist JUN company
JUL AUG SEP OCT NOV DEC

Cash 2,209,360 2,214,770 2,227,470 2,180,230 2015 2,198,780
2,181,390 2,180,770 2,204,730 2,162,940 2,177,020 2,177,140 2,199,170
Other current assets 1,810,220 2,012,810 1,800,360 1,850,350 1,850,190 1,829,270 1,866,810 1,902,340 1,954,700 1,958,650 1,988,640 1,995,870
Fix assets
Equipment 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870
Total fix assets 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580
Total assets 8,047,160 8,255,160 8,055,410 8,058,160 8,059,160 8,055,630 8,075,160 8,134,650 8,145,220 8,163,250 8,193,360 8,222,620
Liabilities
Current Liabilities
Taxes payable 2,349,672 2,433,707 2,095,387 2,013,894 1,929,316 1,820,209 1,754,875 1,701,946 1,648,155 1,585,633 1,535,053 1,458,288
Total current liabilities 2,349,627 2,433,707 2,095,387 2,013,894 1,929,316 1,820,209 1,754,875 1,701,946 1,648,155 1,585,633 1,535,053 1,458,288
Long term debt 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000
101
Equity
Retained earning 697,488 821,453 960,023 1,044,266 1,129,844 1,235,421 1,320,285 1,432,704 1,497,065 1,577,617 1,658,307 1,764,332
Total Equity 697,488 821,453 960,023 1,044,266 1,129,844 1,235,421 1,320,285 1,432,704 1,497,065 1,577,617 1,658,307 1,764,332

balance sheet
2013
Jan FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Cash 2,257,860 2,265,550 2,239,470 2,244,680 2,214,8902015
2,228,780 2,228,370 2,254,030 2,216,050 2,215,520 2,231,010 2,243,860
Fix assets
Equipment 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870
Total fix assets 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580
Total assets 8,055,060 8,065,160 8,075,160 8,125,160 8,075,070 8,056,260 8,106,160 8,216,690 8,348,710 8,418,780 8,517,160 8,662,160
Liabilities
Current Liabilities
Taxes payable 1,117,230 944,968 802,598 694,237 520,044 361,158 271,453 212,869 219,452 164,695 120,434 108,016
Total current liabilities 1,117,230 944,968 802,598 694,237 520,044 361,158 271,453 212,869 219,452 164,695 120,434 108,016
102
Long term debt 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000
Equity
Retained earning 1,937,830 2,120,192 2,272,562 2,430,923 2,555,026 2,695,102 2,834,707 3,003,821 3,129,258 3,254,085 3,396,726 3,554,144
Total Equity 1,937,830 2,120,192 2,272,562 2,430,923 2,555,026 2,695,102 2,834,707 3,003,821 3,129,258 3,254,085 3,396,726 3,554,144

balance sheet
2014
Jan FEB MAR APR

Infinity MAY&souvenir
florist JUN company
JUL AUG SEP OCT NOV DEC

Cash 3,797,710 3,813,750 3,814,960 3,794,380 2015 3,780,120
3,767,070 3,785,720 3,822,290 3,787,350 3,759,920 3,802,410 3,821,040
Fix assets
Equipment 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870
Total fix assets 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580
Total assets 9,227,160 9,272,170 9,464,160 9,657,160 9,763,800 9,958,160 10,155,980 10,465,160 10,817,060 10,928,020 11,082,700 11,275,330
Liabilities
Current Liabilities
Taxes payable 453,670 260,888 213,695 191,179 113,709 108,951 101,214 162,781 307,250 242,322 172,251 118,706
Total current liabilities 453,670 260,888 213,695 191,179 113,709 108,951 101,214 162,781 307,250 242,322 172,251 118,706
103
Long term debt 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000
Equity
Total Equity 3,773,490 4,011,282 4,250,465 4,465,981 4,650,091 4,849,209 5,054,766 5,302,379 5,509,810 5,685,698 5,910,449 6,156,624

balance sheet
2015
Jan FEB MAR APR

Infinity floristMAY JUN
&souvenir company JUL AUG SEP OCT NOV DEC

Cash 4,366,650 4,361,740 4,359,650 for the year4,354,470
4,366,700 ended December,
4,392,830 314,360,490 4,389,590 4,353,540 4,359,020 4,354,290 4,365,750
Other current assets 3,183,900 3,589,500 3,685,300 3,952,400 2015

4,282,100 4,547,500 4,970,900 5,191,200 5,487,040 5,874,900 6,124,100 6,412,000
Fix assets
Equipment 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870 1,005,870
Total fix assets 4,027,580 4,027,580 4,047,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580 4,027,580
Total assets 11,578,130 11,978,820 12,092,530 12,346,680 12,664,150 12,967,910 13,358,970 13,608,370 13,868,160 14,261,500 14,505,970 14,805,330
Liabilities
Current Liabilities
Taxes payable 122,879 230,589 53,722 9,188 42,038 17,064 116,581 40,974 17,213 120,701 80,758 82,526
Total current liabilities 122,879 230,589 53,722 9,188 42,038 17,064 116,581 40,974 17,213 120,701 80,758 82,526
104
Long term debt 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000
Equity
Total Equity 6,455,251 6,748,231 7,038,808 7,337,492 7,622,112 7,950,846 8,242,389 8,567,396 8,850,947 9,140,799 9,425,212 9,722,804
105
5.4 Internal Rate of Return (IRR)
Internal Rate Of Return IRR

Year Amount
1 927,686.88
2 2,112,274.10
3 3,902,086.32
4 6,504,566.04
5 10,070,745.76
Total 23,517,359.10
Average for five years; 23,517,359.10 ÷ 5 = 4,703,471.82

Ratio Investment 5,000,000 ÷ 4,703471.82 = 1.063044532
Our IRR falls in 1.063044532 which means we get more than 30% in 5 years
The present value of U.S. $ / JD for a period of

Table A-4 Present Value Interest Factors for a One-Dollar Annuity Discounted at k
Percent for n Periods: PVIFA \u003d [1 - 1 / (1 + k) n] / k
106
5.5 Net Present Value (NPV)
NPV(Net Present Value)
NPV Calculation
Year Cash Flow
Interest rate 12% NPV = SUM(Ct/((1+r)^t))
1 927,868.88 0.8929 828,454.36

2 2,112,274.10 0.7972 1,683,891.98
3 3,902,086.32 0.7118 2,777,427.97
4 6,504,566.04 0.6355 4,133,769.31

5 10,070,745.76 0.5674 5,714,411.60
Total 15,137,955.22
Owner capital 5,000,000.00
Net Profit of Present Value 10,137,955.22
NPV 15,137,955.22
Owner capital ÷ 5,000,000.00
Ratio 3.02759104
Condition
If the ratio is less than 1 the project is rejection
If the ratio is more than 1 the project is accepted
Our NPV is more than 1, so we accept the project
5.6 Pay Back Period

Payback Period
Year Cash Accumulate
1 927,868.88 927,868.88
2 2,112,274.10 3,040,142.98
3 3,902,086.32 6,942,229.30
4 6,504,566.04 13,446,795.34
5 10,070,745.76 23,517,541.10
Payback Peried Calculation

Investment 5,000,000.00
107
Year1 -927,868.88
Total 4,072,131.12
Payback period ratio = Investment ÷ The difference between investment and year1
= 5,000,000 ÷ 4,072,131.12
= 1.227858301
Payback period is 1 year and 2 months
108
Chapter 6 Risk management
109
6.1 Operation factor
Operation risk refers to the cause of damage. It may happen from failure,
inadequate or improper of operation processing from personnel, working system or
other external cause, which affect to the performance and financial of the company. For
this is not includes a strategic risk, marketing risk, and liquidity risk at all.
We cannot avoid operation risk, because it is the risks that normally happen in
operating. But we have to think about the way to protect those risk occur. If we ignore
and let the operation risk occurs many times with protecting and do not have any plan to
hold it. The performance may not be expected and return of shareholder will be
decreased also.
Operation risk is divided in to 3 categories; process risk, legal & compliance
risk, and people risk.
6.1.1 Process risks are as follow
6.1.1.1 Supply chain risk
To avoid the risk, we think to have a main supplier for supply flowers and
materials for making souvenirs for the normal situation. And we think to have the
secondary suppliers also to support unexpected situations. If we need to order more
flowers and materials. But main supplier cannot supply to us enough, because they have
to supply to other shops or whatever. For avoiding we will order from secondary
supplier. If main supplier has some problems, cannot deliver flower and materials on
time in the golden time period of sale as Valentine‟s Days, Congratulation ceremonies,
and more. We will order flowers and materials from other suppliers first, but in minimal
amounts for ordering. For the case of this year before Valentine‟s Day, according to
Manager News on 2011, 11 February, flooding in China affected to area of planting. So,
we cannot import flowers from China or can order just few of amounts and also they
have problem about transportation for importing flower to anywhere. Flowers have high
price and late delivery. So, we concern about secondary supplier to avoid the supply
chain risk.
6.1.1.2 Customer satisfied risk
We divided customers into 3 segments; low level, middle level, high level
business customers. Each level will have different needed and power to purchase
products and service. The first one, customers are low income or students. They will
110
focus on the price of each flower and quantity that they will get in that price. The
second one, customers are people who work in office such as teacher, office man, and
more. They have power to purchase but do not want to buy too expensive products. And
the last one, customers are company or people with high income. They really have
power to purchase big product like flower arrangement in the wedding, funeral, school,
and church. And people who do not care price. They want luxury and unique products.
Each segment will have different needed. So, we need to set the products and service
with acceptable price of each segment to respond their need and make them satisfied
with our product and service. And we also need to create our product and service as a
unique one, make ourselves different from competitors
6.1.1.3 Cycle time risk
We aim to assign work to right person right job. We assign work to employees
match with their expert skills. Every employees respond to clearly job with their roles.
To decrease the cycle time and wasting time we will do the statistic of product and find
the fastest way for production. And then make procedures for production what they
should to do in the beginning to the end of production for reduce the wasting time.
6.1.1.4 Process execution risk
For the golden time of sale we will find the volunteers before occasion date. We
will advertise like teach arranging flower skills to anyone who are interesting to be a
florist or who want to learn about flower arrangement. We give a chance to them and
we also use advantage of them as well in the golden time for sale. To achieve the plan
and well completion
6.1.2 Legal & compliance risks are as follow
6.1.2.1 Environmental risk
We aim to use natural equipment to make the product such as; coconut shell
made instead vase. We promote in the way of reusing of some materials or modify to
create the new unique product and reduce environment risk. We aim to be the one as a
nature conservationist as well to create the good image and make reputation.
6.1.2.2 Regular risk
We cannot solve this problem because set by government. We have to know
what is the regular and role that we have to do such as; paying taxes
111
6.1.2.3 Policy and procedure risk
Set the policy what they should to if they have to make decision. Set the level of
situation problems, which problem they can make decision by themselves and which
one they have to report to manager.
6.1.3 People risks are as follow
6.1.3.1 Human resource risk
We will set the policy about human resource clearly. And notice to employee
whole the organization. We will set the board of directors to search, find, and identify
human resources risk such as; finding, selecting, hiring the applicants risk,
compensation and benefit risk management, the risk of personal development, Risk of
labor, information system of human resources risk and, so on. We evaluate and rank
each of violence into level of risk. We will accept the risk, if we have to invest to
protect that risk is not worth. Avoid the risk is not legally such as; pregnant employees
to work on night shift. More protect the risk first better than respond and solve the after
problem happened. If we known that nowadays, often stealing in the dark corner of
company. We may protect by installing more lights and security cameras in the dark
corner to prevent the thieves. We will check in several of risks periodically to ensure
that systems are effective or not and to improve to appropriate. To reduce fluctuations in
workforce, to reduce losses caused by human resources, to ensure to stakeholders that
we have a good protecting risk system.
6.1.3.2 Employee turnover risk
According to Sukanya Russameethummachot, expert and consultants and also
special teacher for Human Resource Management and Management of Organization
Change and Development of Ramkamhaeng University said that the real reason of
employee leaving is co-workers not money. So, we have to think about worker‟s
relationship and culture within organization. Control them in the policy and fairness as
well. Social network within organization is very important for themselves and
organization. But it is not meaning that agree with some people who are always do the
wrong way again and again without improving themselves. And give the reward to
employees who are achieve organization‟s goal as well to motivate other try to hardly
working to get the rewards.
112
6.1.3.3 Performance incentive risk
If we think about incentive in the positive way, motivate and encourage
employees try to make a good performance to get an incentive. But it also has negative
result. For getting incentive will make employees focus only the reward they will get
without responding to help organization and lack of making relationship with co-
worker. They will focus only their works and ignore everyone, because they will not get
anything for helping others and also waste their time to work. The best motivation is
people who love their jobs and aim to do the best as they can. We have to make a
strange relation with each other.
6.1.3.4 Training risk
Training is teaching employees that how to work. It is also good for employees
but sometime it is also block the new idea of theirs. We promote them to think and free
to open their mind for improve themselves and organization.
(source: http://www.arip.co.th/businessnews.php?id=412228)
6.2 Human Resources factor

The risk maybe occurs with employee of Infinity Florist and Souvenir
Company. The recruitment employee in skilled personnel in design for arrangement
flower and experience for arrange flower. Infinity Florist and souvenir can‟t predict the
performance of employee in each position that has efficiency or not, because we can
select employee from qualification that suitable for each position only, so it can not
know the competency of each employee immediately. So our companies give benefit to
employee such as bonus. Furthermore, it gives reward to superbly employee that there
responsible and diligent of your duty. Additionally, we can give salary to employees in
over time by working. All this reason, it makes customer satisfaction and encourage for
working. Every employees of Infinity Florist and souvenir like family. It can create
harmony the better in organization.
In organization capability our company increase knowledge for employees and
adaptation in change technology conform to environment
113
6.3 Marketing factor
Employee cannot find out more customers because florist and souvenir of
marketing have a lot of competitor and employee must be do everything for make
impression to customer. Nowadays, it‟s have more variety product to attract customer as
result as hard to keep customer. And find out differentiation channel customer is hard
too that somebody want to high price and somebody want to low price but good quality.
So, it‟s impact to marketing risk.
Our company must be keep old customer and find out new customer by good
promotion that every festival, we give free nice flower and souvenir and decoration our
shop relate with other festival for attract customer. For employee, should record
information each day for sale and marketing.
6.4 Financial factor
Financial risk refers to uncertain of the result in the future because financial
operation of other company those relate to us and affect to values of business. Financial
risk can divided into three categories; market risk, credit risk, and operational risk.
6.4.1 Market risk
Uncertain and changing of price cause interest and exchange rates in the market
in the world and also political policy. Consumptions in domestic and international will
affect to supply and demand in financial market and also affect to investment values.
So, we will set the people who are expert from outsourcing to join with us to analyze
possibility of to do the business in the appropriate way and wealth for investment. We
also set the secondary plan to support materials and equipment as needed, make long-
term contracts for our products, services and also required materials. We have estimate
interest rate to set price the future to support the risk
\
6.4.2 Credit risk
Loss risk from suppliers or companies cannot keep the promises of intend to do
and not; such as late for payment, exchange product, return of profit is not complete as
promised. So, before we make agreement with outsourcing, we have to check their
business background. They are legally and certificated or not. And we have to control
and check them carefully.
114
6.4.3 Operation risk
This is always happen cause wrong operation or unsuitable from people or
whole of organization or situation from outside such as; contract financial mistake, not
keep doing of investment policy. So, we need to purchase flower and materials as
needed or ca order to storage in minimal of amounts but not exceed of budget. Set the
clearly characteristics and compare price to other suppliers. Purchasing task has to
assign to someone who we can trust. For avoiding we will set the policy to have the
bills with suppliers‟ signature of purchasing every time and also copy the purchasing
information to the safe place.
At the beginning of running business, we may have more operation risk because
we are due to instable of operating systems and not familiar for investment. It may meet
with market risk. Therefore, we have to consider financial risk as well, if we weight to
consider of one side too much, we will lose and damaged from negligence of another
side.
(source: http://www.arip.co.th/businessnews.php?id=412278)
6.5 Political factor

At currently, the most topic that influent Thai political crisis is Red-Yellow
Shirts protest. The origin of these protest started from the politicians who had different
opinion with their leader, Thaksin Shinnawat; the ex-prime minister. There was a fight
between Red-shirt who support the previous prime minister and the Yellow-shirt who
want to banish him. The result of their protest created a lot of damage including tourist
rates, national income, building destroyed, or transportation cracked.
The way to solve this problem is quite difficult since there is a sensitive problem
between people and government. The best way that our company can do is to follow the
regular and rules. We try to involve less with any part of protest and put our mind in the
between.
(source: http://news.bbc.co.uk/2/hi/asia-pacific/7584369.stm)
115
6.6 Economic factor
For Thai economic in 2010- 2011, Exchange rate is increase Because of the Thai
financial account recorded a surplus of potential export growth than import. Inflation is
rising because the Thai economy and the global economic recovery. The demand for
consumer goods and services is increased, which makes prices rise combined with
higher production costs.
So, economic is a big problem in Thailand that has impact to customer of Thai is
decrease. They want to save for money by themselves and must be more carefully in
spending to the purchase is decrease.
Infinity florist and Souvenir Company must be manage economic risk that make
Highlights of the shop to be interesting by present our product, how promote variety of
product. Our product must be new creative and new Artificial for customer interesting.
And it does can respond all level of customer such as low, middle and high level.
6.7 Technology risk
Now the technology is important for every business because technology is

processes that a company uses to develop, deliver, and manage its products, services,
and support operations. In the Infinity Florist and souvenir company technology for
distribution on internet and label. So , if the technology changing our company must
development technical.
For risk management in Infinity Florist and souvenir company is always needs
to follow the news for find the information about development or changing the
technology. And bring the knowledge or information that obtain bring to adapt and
development techniques, for distribution and receive customer information from
internet and customer satisfaction.
(source:
http://www.nidambArtificiale11.net/ekonomiz/2010q4/2010_December24p1.htm
http://www.bangkokbiznews.com/home/detail/politics/opinion/kriengsak/20091215/908
24/%E0%B8%97%E0%B8%B4%E0%B8%A8%E0%B8%97%E0%B8%B2%E0%B8
%87%E0%B9%80%E0%B8%A8%E0%B8%A3%E0%B8%A9%E0%B8%90%E0%B8
116
%81%E0%B8%B4%E0%B8%88%E0%B9%84%E0%B8%97%E0%B8%A2-
%E0%B8%9B%E0%B8%B5-2553.html)
117
Chapter 7 Summary
118
7.1 Summary of project feasibility study of Infinity florist &Souvenir Company
Today flowers are concern to procedure of big and small business such as
business meeting, corporate meeting or associate meeting. Include congratulations and
condolence. Location our company living in Chonburi because Chonburi‟s commercial,
difference in tradition and culture, addition a life style.
Infinity florist and Souvenir Company use STP analysis including segmentation,
it can separate 3 type for provide to customer in Chonburi to be the base for
segmentation. Our target market is a good location that near church, school, temple, and
etc. It‟s very comfortable, Position is good quality because we can do high product and
low price in our Company. And have a little competitive. For sale forecasting, we can
make a lot of profit in each year.
Infinity Florist& Souvenir provides flower into two ways such as sales in our
shop and delivery. The differentiation of category is size and price. Our company
choose this area because the place is convenience- easy to buy or easy to reach. Shop
opened every day since 08.00 a.m. to 21.00 p.m. Customer can choose product and
package by themselves which known as self-service and self- selection. Moreover, they
can place an order via telephone, and then delivered according to the condition of
distance and price. We concerns of logistic management because we are a distributor
who distribute the product which is short shelf life. In addition, we have only a supplier
experience in arrangement flower.
Moreover, Infinity Florist& Souvenir concerns more about customers‟ satisfy so
we try to find the options which enhance customers”
In the financial analysis, these are an initial investment for operations Infinity
florist &souvenir 6,500,000 baht. It can separate in the fixed asset for 5,026,940 baht,
pre-operating expense for 98,310 baht. All of capital was loan from Bank, and the
interest rate is 12% per year, and the period of debt payment is 20 years. According to
the net sales
We expect that our company will get 1% of total market shares.

Total sale
Year 1 = 4,108,750baht
119
Year 2 = 4,930,500baht
Year 3 = 5,916,600baht
Year 4 = 7,099,900baht
Year 5 = 8,519,850 baht
Under the consideration of overall cost and total sales forecasting, our company
get
The net income as following:
Net income in year 1 = 579745 baht
Net income in year 2 = 1764331.94 baht
According to the company‟s financial estimating within 5 years, the payback

period is
Equal 5 years. It is appropriate with the capital that has invested with Infinity florist
&souvenir.
Conclusion
According to study and evaluation for Infinity florist &Souvenir Company. The
business has high feasibility in many part of the business such as marketing, technical,
financial. About financial analysis is we have profit and return on investment in high
rate and has the payback period for 5 years.
120
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126
Appendix
Many styles for event
127
Bouquet
128
Vases and flower baskets
129
Using in funeral
130
Flower wedding style
131
132

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Infinity Florist& Souvenir Company

Project Feasibility Study and Evaluation

Right Group No. 23

MISSNANTHIKA WONGROI ID 5131207015

Major: HIM Section: 2

This Project is a part of 1203302 Project Feasibility Study and Evaluation

Chapter 2: Industry Profile

3.3 STP analysis 22

Chapter 4: Technical Feasibility Study

Chapter 6: Risk Management

Chapter 7: Summary 112-113

1.2 Project Objectives

1.4 Processing method

1.4.1 Talk about business

November December January February

2.2 Situation of Industry

2.3 Product and Service (in General)

2.6 Strategies of company

2.6.1 Corporate level strategy

2.6.3 Functional level strategy

Market Feasibility Study

3.1.1 Political Factors

3.1.2 Economic Factors

3.1.3 Soiocultural Factors

3.1.4 Technology Factors

3.2 Competition Analysis (3C Analysis)

3.2.1 Competitor Analysis

Competitor Geographic Product & Service Strength Weakness

Our company analysis competitor we know market in chonburi. These are

3.2.3 Competitive analysis

3.2.3.5 Threat of new entrants

3.3 STP analysis

3.3.2 Target market

Competitors Isan Flower Pattaya Florist Sumalee Chonburi Infinity florist

3.4 Marketing Mix Strategy

Flowers decoration rates

* Both flowers decoration and souvenir rates can be changed depending

3.4.3 Distribution (Place) decisions

An example of our shop style

3.4.4 Promotion decisions

3.5 Sale forecasting/ Profit estimated

Number of Marriage in Chonburi

Average Selling Price per an Event: 410,875,000 baht

Events Income Percantage

New Year Day

3.5.2 Market Based Sale Forecast

3.5.3 Resource Based Sale Forecast

3.5.4 The Final Sale Forecast

3.6 Marketing Expense

3.6.1 Advertising Expense Year 1-5

Basketworks market is one of tourist attractions of Chonburi. There are a lot

The even ordering is depended on customer requirement such as for birthday

4.1.2 Specification, Feathers, Dimension, Life Time, etc.

4.1.3 The purposes of arrangement

The amount of flowers is depending on the size requirement and

Company’s address: 10, Intarasa Street, Phanasnikhom, Chonburi, 20140

4.1.8.2 Facility layout format

4.3 Investment Cost

We design to build our shop in modern style, 1 floor, 2 bathrooms, 1 living

4.3.3 Tool & Equipment

*Remark - The cost of flower can change always depend on economic.

-Sก 3207 8.50*100 850

- Sก 3208 8.50*100 850