Chiang Rai Orchids Export Group 26 Sec. 2

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Group Member 26 Sec. 2 1.

Miss Sirapat Jantarat

ID: 5131203145

E-mail: [email protected]

Tel. 086-8484808

2. Miss Leelawadee Pramulkan

ID : 5131205050

E-mail: [email protected]

Tel. 081-8838683

3. Miss Nichakorn Suaisaart

ID : 5131205121

E-mail: [email protected]

Tel. 087-5777102

4. Miss Duangkamon Khumsiri

ID : 5131205125

E-mail: [email protected]

Tel. 083-6283844

5. Miss Phusanisa Srisukhadej

ID : 5131205234

E-mail: [email protected]

Tel. 089-0242350

6. Miss Chuleekorn Kattiya

ID.: 5231203037

E-mail: [email protected]

Tel. 087-6606569

7. Mr. Apinan Bangnoy

ID : 5231205164

E-mail: [email protected]

Tel. 085-9640645

8. Mr. Jaehyun Hwang

ID : 5231205183

E-mail: [email protected]

Tel. 081-164978

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Preface

This project was written concerning Feasibility Study Project for study, feasibility and Evaluation of the project. The part of business project of Chiang Rai Orchids Export for promotes, support and collect the information in many type of orchid. This project prefers to make our business to be a famous and make earning to our company. The content of this report offer the knowledge including background and significant of industry, industry profile, market feasibility study, technology feasibility study, financial analysis, risk management and project summary to offer necessary information that realistic to investor to establish in potential success and profit estimate. So, the last we would like to thank you all member for help to find the information and attend to do this project until it’s done. We are hoping that our report will be utility and helpful for everybody who is interested as much as possible. If there are any mistakes in this reporting, we will apologize about that mistake.

Chiang Rai Orchids Export

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Executive summary

Our company project is Chiang Rai Orchids Export which, orchid sells both wholesale prices are not expensive. For the output of company; we have a modern packing room, professional staffs and packing process to ensure that all products will be delivered to customers in best condition. In addition, if you can spend a whole day shopping for more than hundred varieties of stunning orchids. Chiang Rai Orchids Export is the very first company in Chiang Rai where you can select orchid plants you like and your will be promptly packed and loaded into your car. Moreover, inside the store classified by types of orchids for convenience of the buyers will have to choose the type and variety of services to our customers such as opening music to our customers listening. Our product has managed packaging the orchids export to as make catalog for corporate and government agencies such as hotels, restaurants, spas, and schools, and our company have Facebook online to attract customers and inquiries opinion the customer to edit and improve. Chiang Rai Orchids Export has modern laboratory facilities offering high quality mericlone and seed culturing services for the orchid and ornamental plant industry. We sell plants in all stages of the growing cycle to satisfy your needs; including flasks, communitypots, seeding, medium, blooming and flowering sizes. However, the estimation of profits that’s going to be obtained from Chiang Rai Orchids Export, it is expected that the profits will be visible from operations and will continue to return on investment within the 4-5 years but we can make sure that our company will continue to increase revenue for the next year ahead.

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Contents

Page Preface

A

Executive summary

B

Contents

C-D

Chapter 1: Introduction

1-4

- Background and Significance of the Project - Project Objectives - Benefits of Project - Activities/Time Frame Chapter 2: Industry Profile

5 - 24

- Nature of Industry - Situation of Industry - Product/Service - Vision of your Organization - Mission - Strategy Chapter 3: Market Feasibility Study - Market Analysis - PEST Analysis - Competition Analysis

25 - 44

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- STP Analysis - Marketing Mix Strategy (4P) - Sales Forecast - Explanation - Marketing Expenses - Conclusion Chapter 4: Investment Cost

45 - 51

- Building cost - Cost of Investment - Investment Cost - Depreciation Chapter 5: Operation Analysis

52 - 92

- Product Characteristics (in detail) - Specification and feathers - Services Process - Location - Facility layout - Equipment - Logistic Management Chapter 6: Organization and Administration - Operating Cost - Organization Chart - Recruitment plan

93 - 102

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Chapter 7: Financial Analysis

103 - 107

- Profit/ Loss Statement - Balance Sheet -All financial Statements Chapter 8: Risk Management

108 - 114

-PEST Analysis -Internal risk - Operational risk - Human resource risk - Marketing risk - Financial risk -Five Force Model Chapter 9: Summary

115 - 116

Reference

E

Appendix

F

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Chapter 1: Introduction

Background and Significance of the Project Nowadays Thailand is big orchid’s exporter in Asia, moreover any countries around the world prefer orchid from Thailand is best beautiful in the world. Thailand has many abundant resources to grow orchid, in the Thailand that appropriate to young plant, however different of seeds always require different of resources. For example, Paphiopedilum charlesworthii is one of orchid usually growth at North of Thailand, or Paphiopedilum niveum also growth well in south of Thailand depend on degree of temperature around nursery. In addition, any kind of soil or grit that different concerning to growth rate of young plant, some of orchid such as Dendrobium and Oncidium are cannot growth in soil and grit, but they are growth at coir. Paphiopedilum and Phalaenopsis are the orchids that growth well at soil and grit. Moreover, water, light, air also important too. In other word, around 5,000US millions that Thailand got from exported orchids into international market, (2009) and second export order. The first targeting stand on Asia such as Japan and China, because FTA(Free trade area) will provide easy ways for export to worldwide around this stages and second targeting stand on United State, Russia and United Kingdom. Some of festival such as Flower festival in Japan require from Thailand's orchid, Chrysanthemum from SriLanga and roses from Northland, even though flower festivals create more profits to another exporting countries. In additional, Orchid from Thailand has more colorful and perfection about structure and Thai's scientist always create new seeds for create competitor advantages of Thai's orchid such as Natalia, Yellow Chiang rai all most well to selling in the world. Moreover, Ministry of Foreign Affairs Kingdom of Thailand focus to next period about Thai’s orchids export will increase around 10-20 percentages and economic of scale too. (Arjan Germy 1995) In addition, to the direct benefits from the sale of orchids and orchid, we can use as a selling point to attract tourists to visit the beauty of Thai orchids and the orchid is the symbol and the orchid is a symbol and a teacher. If in the orchid was exalted as a symbol of Thailand, which is the land of orchids (Land of Orchids) will enhance the image of the country for the better in the eyes of the world which will bring benefits to the nation. Especially in the field of tourism and foreign tourists want to come here to admire the beauty of Thai orchids, and they will come in increased spending and demand for orchids from Thailand increased. The name of our company is Chiang Rai Orchids Export. The reason that we chose the orchid business because, orchid is plants that generate revenue for Thailand and an environment conducive to the growth of orchids in the north. Therefore, we chose located in the city of Chiang rai. The reasons that we choose Chiang rai to locate our company is; in northern of Thailand, it is known that cold weather so, it make income from growing flowers in the winter a lot. The flower is very popular in the north because, the terrain is cold

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throughout the year. Production is beautiful and the North is the largest manufacturer and supplier of flowers. Especially, in Upper North such as Chiang rai is very cold and appropriate for planting flowers is a great winter. Chiang rai have many of tourist come to visit because Chiang rai is famous and beautiful nature. Our company locates in place that route that is the way to go to Mae-sai that easy to visited and buy our product. Chiang rai is near the frontier and this province that have movement for prepare the country to be ASEAN in 2015. This province is the center of trade for store the product for transfer to another country. This province can connect to China, Myanmar, Laos, and Cambodia. Chiang rai has latency logistic at Chiang sean and Chiang kong port that can go to China. In the future Chiang rai must have more tourists and our business is the popular and be well-know and the target market have high class and low class. All and all, Thai's orchids always attach to international market and provide more seeds to serve in different of market’s expectation, moreover department of export promotion will support to exporter in small business until larger and advertising to attract and support people in appropriate local start to growth orchids and led them to exporting to international market. Finally, Chiang rai is the growth fast province and wide that suitable for invest for do the orchid business. This province can give good revenues because of chiang rai is the center for export and be the place that have many of tourists come to visit and our business locate at the place that convenience to visits. (Suwitchai Sangjun, 2011)

Project objective -

To learn about the type of orchid. To study growth process of orchid. To learn about advantage to compare with competitor. To learning about export, legal, rule of export, and etc. To learn about financial. To learn about invest process. To study international market.

Benefits of project -

To receive income from the export of orchid growing. Several related business sectors throughout supply chains, taking advantage of industry-related orchid growing. Revenue from foreign tourists increased from to overlook the beauty of orchids in the land of orchids. Gain knowledge about orchids growing process. Gain knowledge about marketing strategy and good service for customers. Get to know more about doing projects and applied to real life. Know about thinking and planning before making a decision to invest in the business. Know about process packaging the orchid to export many countries.

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Create thinking process to adapt for solving problem.

Activities/Time face Gantt chart and Time flame of the study Activities 1.Choose topic 2. Searching information  Library  Internet  Magazine and pocket book 3. Topic Submission  Fix problem  Search information 4. Introduction submission  Background  Significant  Benefit  Gantt Chart 5. Study and business profile  Companies image  Logo and brand 6. Study Analysis market feasibility  STP Analysis  4ps  Competitor Advantages 7. Study technical Feasibility  Determine the necessary resource Competitor Advantages  Comparing with competitor 8. Study and Analyze the financial of our business  Financial Annual report  Determine cost

Nov. Dec. Jan. Feb. 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

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9. Study and Management the risk of business  Risk Analysis and other  Control risk analysis 10. Project Advertising  Determine story board  Prepare story board 11. Writing and analyze the report  Evaluation  Restage 12. Checking Final-draft 13. Conclusion the feasibility of business and suggestion

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Chapter 2: Industry Profile

Nature of Industry The earliest known orchids (the Mediterranean region), were named Orchids-an earthy reference to the Greek word for testicle, because of their twin oval tubers. These and other orchids from time to time have been considered useful in medicine, but the only orchid of true economic value is Vanilla planifolia, the source of vanilla flavoring. This orchid was used by the Aztecs and thus became known to Europe shortly after the Spanish conquest of Mexico. Epiphytic orchids from the West Indies and China were brought to Great Britain beginning in the 1700s; by the end of that century 15 species were growing at the Royal Botanic Gardens at Kew (Great Britain). Success was indifferent, however, because the orchids were grown in hot, damp greenhouses with little or no air circulation. As growing techniques improved, shortly before the middle of the 19th century, orchid growing became a craze among the wealthy and titled. Collectors canvassed the tropics for new or choice orchids, sending back plants by the ton. So indefatigable were they that in many areas desirable orchids became rare or even extinct. Many orchids perished in transit, still more at the unskilled hands of buyers. Prized specimens sold for enormous prices, giving rise to the perception of the orchid as a "rich man's plant." An even greater danger, however, has been habitat destruction. The clearing of forests to harvest lumber or to create agricultural or pasture lands has seriously diminished the world's orchid population. Fires purposely set to clear land can reduce large areas to a semi desert condition; for example, they may well have obliterated many Indonesian orchid species. Fortunately, one comparatively recent development has benefited both the economies of orchid-rich but cash-poor countries and the preservation of their native species. In many countries, native orchids are now being grown in nurseries for export, for local sale, and to restock natural habitats. Another contribution to the increased availability of orchids has been the crossing of native species. Hybridization began in the 1850s, when it became evident that orchids that rarely crossed in the wild could be induced to do so by the horticulturist. Indeed, many crosses between genera were made; the current list of hybrids far surpasses 100,000 and continues to grow with each year. (Herbs, 2002) THAILAND IS JUSTLY famous for its many beautiful orchids, or Gluay Mhai in Thai. It's surprising to many visitors that these tropical plants can be found flowering during the winter in the north of Thailand, when the weather is cool. January is a great month to see an amazing range of shapes, sizes and vibrant colors of Thailand's orchids. Although the weather is so dry at this time of year, orchids employ many different ways of retaining the moisture necessary for flowering. Some have spongy roots that can absorb water from

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morning mists, other have bulbs that store the precious liquid of the rains of the previous year, while still others shed their leaves so that none of the moisture needed for blooming is wasted. Orchids naturally grow on the bark of forest trees and collect much of their water and food from rain water running down the trunks, and are classified as epiphytes because of this way of growing. In the wild, these winter-blossoming orchids make a wonderful splash of color at a time when the woods are dull and drab, with many trees having lost their leaves. The orchids will flower again in August, in the middle of the abundant rains, and then collect water and food during September downpours to provide the energy for flowering again the following January. There are more than 1,000 species of orchids in Thailand, and these come in a bewildering and dazzling range of colors - all the hues of the rainbow. Probably the most beautiful of the North’s many orchids are the White, the Bright Yellow Oncidium and the Brick - red orchids. The White orchid is highly prized because of its extreme rarity in the wild. Few have ever been discovered in the wild, and it is only through the efforts of Thai orchid nurserymen to multiply it, that this gorgeous bloom can be seen. Many of the other orchid varieties are easy to grow, and abundant at any time of the year, thanks to the skills of the numerous Thai horticulturists, who have developed their art into a major export industry. Typical of these common orchids is the violet bloom that is often presented to visitors, for example to women passengers travelling on Thai Airways international flights. The range of habitats of orchids in the wild is as astonishing as their great variety of blossoms. They can be found growing wild in almost all parts of Thailand, from the low plains of the central region to the highest mountains of the north, from the steamy jungles of the south to the arid northeastern plateau. Some, ground orchids, actually do grow in the ground, but the vast majority prefers a less hospitable environment, growing epiphytically on trees, or in cracks in rocks, where few other plants can survive. Some live in the permanent shadows of the tropical rain forest, where sunlight may never penetrate, while others bask in the full glare of the sun. With cultivation, and the creation of a multimillion Baht orchid export industry, orchid farms have sprung up all over the north of Thailand, and Chiang rai has become the kingdom's Centre for cultivation, displays and exhibitions of these exotic flowers. Asia has the widest variety of orchids of any part of the globe, and therefore has the greatest potential for creating the modern hybrids which outshine their wild parents in beauty and value. The first ever hybrids were produced in 1858, and more and more have been created, with some extremely complex crosses ultimately using 5 different parents to make a single new strain. In the wild, orchids have preserved their identity by developing extremely complicated methods of pollination, and often have only one single species of insect that can perform this essential function. An example of this is the vanilla orchid of Madagascar, which has developed a flower which a long trumpet that it can only be pollinated by one species of moth which has a remarkably long proboscis or tongue. Although the vanilla orchid can be pollinated by hand, it takes a long time and is a very expensive process. This relationship

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between a plant and an insect is the reason why almost all the world's natural vanilla comes from just the one island. Some other orchids even have such a complex maze of petal structures that the pollinator can only escape from the flower by performing the correct sequence of operations necessary for pollination to take place. The gorgeous color and fantastic shapes of orchids, that make them such popular flowers, were developed by Mother Nature to attract pollinating insects, and in some cases to repel unwanted pollinators. Some orchids mimic the shapes and colors of insects like bees or wasps, or even spiders, to frighten off insects that can't perform the act of pollination for them. Everyone knows that many flowers have a wonderful scent, and that this fragrance is use to attract insects from afar. Many orchids have such a sweet smell too, but many of them are actually capable of moving their blooms to scare off or keep out unwanted flying visitors. Unlike most plants, orchids don't like bees very much at all, and some have even developed bee-specific sedative drugs in their petals which send visiting bees to sleep and prevent them from stealing any of the flower's limited supply of the valuable pollen. Yet others close their petals completely until they are sure the bees have gone away. Two of the most bizarre example of orchid "behavior" is movement and the creation of complex odours. Some orchids can sense, by vibration, when the wrong kind of pollinator is approaching, and can wave their blossoms back and forth to imitate the moving of a flying insect. In this way the unwanted insect is scared off and the flowers then return to normal. When the right insect approaches, the flowers remain perfectly still, welcoming it with open petals! Many wasp species pollinate orchids, but some orchid species just can't tolerate wasps. Some of these, when they sense a wasp approaching, close their petals quickly and give off the scent of a female wasp ready for mating. If the approaching wasp is female, it smells a potential rival and flies off, but male wasps are so convinced by the scent that they attempt to mate with the flower. Both the bloom, with its virtue intact, and the satisfied male wasp end up smiling! So just think, when you see some of the beautiful orchids growing in the farms around Chiang rai, or are deciding which to buy to take as a gift for a loved one back home, you're not just looking at a pretty face. Orchids are surely some of nature's smartest cookies as well! (Orchids of Thailand, 1995)

Situation of Industry The orchid cultivation in Thailand could be classified into two groups; Orchid flower and Orchid tree, which have difference areas, products, and species as following. Orchid flower covers area around 22,000 Rai (data from 2009) of the country, mostly in Nakornprathum Province, Ratchaburi, Nonthaburi, Nakornratchasrima, and Ayuthaya respectively. The popular specie is Wai, cover about 80% of all area. Moreover, there are approximately 2,960 farmers who are able to produce 52,414 tons of products around Thailand. 47% of total products are exported, while 53% are for local consumption.

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Orchid tree covers area around 1,200 Rai of the country, mostly in Nakornprathum, Samut-Sakorn, Bangkok, Ratchaburi, Kanchanaburi, Nakornratchasrima, and Chiang mai. The popular species are Dendrobium, Vanda, Phalaenopsis and Oncidium. There are approximately 500 farmers who are able to produce 48 tons of products. 64% of total products are exported, while 36% are for local consumption.

Product and Service Product of Chaiang Rai Orchids Export is the company for can to buy the orchid. Our orchid product can to grow in all regions, all season for the customer impressive in the product of ours. Our have there are many varieties of orchid for service as 1.

Paphiopedilum

The paphiopedilums (genus Paphiopedilum)– often abbreviated Paph and colloquially known as paphs in horticulture – are flowering plants in the orchid family (Orchidaceae). It contains about 80 accepted species nowadays, some of which are natural hybrids. These slipper orchids are native to South China, India, Southeast Asia and the Pacific Islands, and form their own subtribe, the Paphiopedilinae. 2.

Cattleya

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Cattleya is a genus of 113 species of orchids from Costa Rica to tropical South America. The genus was named in 1824 by John Lindley after Sir William Cattley who received and successfully cultivated specimens of Cattleyalabiata that were used as packing material in a shipment of other orchids made by William Swainson. The genus is abbreviated C in trade journals. 3.

Vanda

The name "Vanda" is derived from the Sanskrit name for the species Vanda tessellata.hese mostly epiphytic, but sometimes lithophytic or terrestrial orchids are distributed in India, Himalaya, SE Asia, Indonesia, the Philippines, New Guinea, southern China and northern Australia. 4.

Dendrobium

Dendrobium is a huge genus of orchids. It was established by Olof Swartz in 1799 and today contains about 1,200 species. The genus occurs in diverse habitats throughout much of south, east and Southeast Asia, including the Philippines, Borneo, Australia, New Guinea, Solomon Islands and New Zealand. The name is from the Greek dendron ("tree") and bios ("life"); it means "one who lives on trees", or, essentially, "epiphyte".

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5.

Ascocentrum

Abbreviated in horticultural trade, is a small genus belonging to the orchid family (Orchidaceae). They occur mainly in warmer to intermediate, humid climates of the foothills of the Himalayas, in Myanmar, Thailand, Malaysia, the Philippines, Java and Borneo. 6.

Rhynchostylis

The genus Rhynchostylis, abbreviated as Rhy in horticultural trade, is a member of the Orchid family (Orchidaceae), consisting of 6 species endemic to India, Malaysia, Indonesia and the Philippines. 7.

Aerides

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Aerides also known as the Cat's-tail Orchid or the Fox Brush Orchid, is a genus belonging to the Orchid family (Orchidaceae) (subfamily Epidendroideae, tribe Vandeae, subtribeAeridinae). It is a group of tropical epiphyte orchids that grow mainly in the warm low-lands of the tropics of Asia The naming of the genus refers to the epiphytic growth habit of the species]and literally means 'air-plant'.[1] The type species, Aeridesodoratum was described by João de Loureiro in 1790.[2] This genus is abbreviated Aer in horticultural trade. 8.

Phalaenopsi

Abbreviated Phal in the horticultural trade is an orchid genus of approximately 60 species. Phalaenopsis is one of the most popular orchids in the trade, through the development of many artificial hybrids. 9.

Dendrobium 'Soamsawali'

Dendrobium 'Soamsawali' is the name that Phra Chao WorawongTherPhraOng Chao Soamsawali granted on this orchid. This orchid has a hanging pale lavender colored inflorescences has faint white streaks on the petals and white peduncle. The lavender colored flowers are generally darker when they start to bloom but will become lighter when in full bloom.

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10.

Dendrobium 'Pink Nagarindra'

Dendrobium 'Pink Nagarindra' is the name bestowed upon this species of orchid by H.R.H. Princess GalyaniVadhana, KromLuangNarathiwasRatchanagarindra. It is a hybrid orchid of Dendrobium Blushing and Dendrobium "Arica". This orchid hasa semi-circular flowers of old-rose color, reddish-pink lips, and pale silver specks on the petals that glisten in the light. During winter the entire flowers will turn deep old-rose in color. 11.

Bulbophyllum

Bulbophyllumor people call “Lion seeds” that identified name by Aubert duPetit Thouars in 1822. In natural can fine more than 2,000 seeds of its spread inAustralia, Africa, Vietnam, Philippine and Thailand; however in Thailand have 140seeds of it. Most of all are Epiphytic orchid and growth well as humid stoneatmosphere.Bulbophyllumin Thailand such as ulbophyllum annandalei, Bulbophyllum siamense, Bulbophyllum crassipes etc. 12.

Cymbidium

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Cymbidium is Epiphytic orchid always fine on tree compositions and fine inMadagascar, Sri langa, India, Japan and Thailand. Cymbidium is not popular inmarket, because difficult process to growing and sensitive in environment.Cymbidium in Thailand has 18 seeds such as Cymbidium finlaysonianum,Cymbidium lowianum, Cymbidium hybrid etc. 13.

Doritis

Doritis is forest orchids always growth well as stone or wood, because Doritisrequire organic substance to living. Doritis always find as Malaysia, Thailand,Cambodian, Indonesia and Lao, Doritis in Thailand such as Doritis pulcherrima,Doritis pulcherrima var coerulea. Doritis pulcherrima var chumpurnensis and etc. 14.

Grammatophyllum

Grammatophyllum is epiphytic orchid that growth well as humid atmosphereand forest, in nature find around 11 seeds, however in Thailand fine only one of seedis Grammatophyllum specious or people call Giant Orchid.

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15.

Oncidium

Oncidium is one that people growth to exporting, in addition would import byAmarican and Euro. Oncidium is small orchids that colorful, moreover wasy togrowth and strong too. Oncidium in Thailand such as Oncidium Goldiana, Oncidiumflexuosum, Oncidium shacelatum and etc. 16.

Renanthera

Renanthera or people call“ Red Dendrobium” usually fine in China, Burma, Cambodian, Thailand and Philippine. Renanthera growth well in ventilate atmosphereand light. Nowadays botanist fine only 10 seeds in the world, especially in Thailandhave 2 seeds include Renanthera coccinea and Renanthera isosepala.

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Orchid Cut Flowers 

Dendrobium

Anna

Erika

Karen#7

BFC. Violet

Blue Sky

Suree Peach

ren#4

Kenny

Sakura

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Pompadour

Red Pimon

Willie

Pompadour

Lervia

Wikky

Red Areeya

Wanna

Queen Pink

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Yellow River



Yukon

Mokara

Areeya Gold

Calipso

Chitti

Christine Pink

Carol

Christine White

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Norah Blue

Punnee

Red Meda

Ribbon

Robin

Ruby

Tammy

Tangerine

Teresa

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Terra



Tierra

Bouqutes & Corsages

3SS.KENNYC

3SS.KENNYC

3SS.LADYC

3SS.LADYC

3SS.SAKURAC

3SS.SAKURAC

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3SS.KAREN#7C

3SS.WILLIEC

3 BLOOM KENNY

3SS.KARENC

3SS.WANNAC

3 BLOOM ANNA

3 BLOOM KAREN

3 BLOOM SAKURA

BLOOM WANNA

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

5 BLOOM ANNA

5 BLOOM KAREN

5 BLOOM SAKURA

5 BLOOM WANNA

BLOOM KENNY

Other Genera

Ascocenda

Alice

Azimah

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Annie Black

Grower Ramsey

James Storei

Pink Vanda

Golden Shower

Blue Vanda

Moreover, our have distributors care orchid product, orchid shelves, decorative accessories orchids. In service we are shopping cart, delivered to your home (If customers buy a lot), services delivered to the hotel and the flower arrangements for various applications.

Vision “The world's leading exporter of orchids”.

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Mission     

Driving the process. Orchid exports are expected to increase. Driving the production of high quality orchids. According to standard output. Drive to support a strong cluster of orchid. Thailand is a center of innovation development of orchids. Information and data center markets.(world orchid net) Social promotion is the most common orchids in both domestic and foreign decorations.

Strategy 1. Corporate Level Chiang Rai Orchids Export Company will build and growth in Chiang-Rai market. However, it’s the new one; no reputation. Therefore, we should think about the strategy to make it stable growth in the market. We focus on “becoming popular”. As we are orchid sales, we will concentrate on service. We would like to pursue the new customer in different regions to use our service. Thus, we will apply the horizontal integration strategy to our business, which has various services in one set to offer in different need and want of customer. For example, one customer contact us for buying orchid, we will organize from the selecting orchid, serving quality orchid, and so on. After that, we will get in touch with take care orchid, new cultivation technique emergency action and more. We also will use the vertical integration to our business because we want to attract our exit customer reuse or additional using our product or service. For example, we will provide the promotion like reduce 20% for old customers who use our service for their anniversary or member of family wedding. We would like to keep customer loyalty and introduce our business in positive to the new customer. 2. Business Level Nowadays, it’s not easy to enter into the market if we are the new business around with many competitors. The best way is trying to be special one and different from other. Our differentiation is easy orchid. We are going to set our product as prototype of gardening. It’s like just easy. Customer just can cultivate orchid with us even who never cultivate orchid before. Because of we will advise from A to Z through the cultivate manual which is made up by our company.We also provide online service from Facebook, to let the customers who live far away from our company easy to contact and see our products without any cost. We build our business in the location that easy to assess or transportation. And then we will paint our building stylish and modern to attract the customer’s eyes. Moreover, we have our own logo to create the good image. For example, when the customers see our logo, they will have a feeling like want to buy our product. Since, they get a good experience from the past or from their friend.

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LOGO

3. Functional Level Functional level strategy concerned with coordinating functional areas of the organization, such as marketing, human resource, production and financial and so on. Each functional area is related with business and corporate level strategies. This involves coordinating the various functions and operations needed to design, deliver and support the product or service of the company’s portfolio. Therefore; for our Company we will mainly concerned with two parts, which are marketing, human resource, and financial strategy. -

Human resource management

All of our staff will be trained to serve high quality of service to the customer and they have the same standard to do when they have to meet with the customer because the objective that we already set is to make the customer satisfy and happy when they experience with our service. However; it must not against with the good ethic that we do. -

Marketing

We would like to create customer awareness toward our orchids. Then they will have good attitude toward our products and buy more and more. Our orchids is satisfy customer needs and we will be promoted our orchids through the Internet (Facebook) and publications. -

Financial

We have financial strategies to analyze revenue, company expense, and operation by consider from all financial resource such as from orchids and the other service that we provide to the customer. We have financial database to separate each expense in different kind. Also have the financial auditor to allocate our money and do report to tell about how our money is spent or received.

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Chapter 3: Market Feasibility Study

Marketing Analysis 

General Environment Analysis (PEST)

We use PEST analysis in order to analyze the external environment that may effect to our business. We have to know this thing because it let we know how to behave. PEST analysis includes 4 things which are Politic, Economic, Socio-cultural and Technology. We also analyze the environment as well. Political Factors In Thailand 2010-2012 the general political situation outlook. This hub takes a look at the political and economic outlook of Thailand for 2010-2011 and beyond. The main source of this outlook is the Economist Intelligence Unit (EIU). According to the Economist Intelligence Unit report filed September 2010, the following are the highlights of Thailand's political and economic outlook for 2010-2011: • Even though Thailand currently enjoys a relative calm following the violent end to antigovernment protests in mid-May, Thailand’s political crisis does not appear to be nearing an end. • Recently, Thailand’s current Prime Minister managed to strengthen his hand, but he does not appear willing to risk calling an early election. • The government will continue to run a budget deficit for the next two years; the shortfall will average 2.8% of GDP. The Bank of Thailand (BOT, the central bank) will tighten monetary policy. • Owing to the strong performance of the economy in the first two quarters of 2010, the Economist Intelligence Unit has revised up its GDP growth forecast for the year as a whole from 4.1% to 7%. Growth will moderate to 4% in 2011. • Consumer prices will rise in 2010 after a year of deflation in 2009. However, inflation will not accelerate rapidly, partly because of the strength of the baht, which has appreciated sharply against the US dollar in recent months. • Thailand exporters are enjoying a rapid increase in revenue as a result of the recovery of the global economy, and the current account will remain in surplus in 2010-11. According to the general political situation outlook in Thailand, our business in Chiang Rai is not affected so much by the political crisis at this time. So, orchid supermarket is run the business in Chiang Rai with any problems directly. In the other hand, the orchid super market is promoted in public by giving a promotion to attractive the wholesaler or improves strategy for example our customer that buy our orchid they will receive member

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card is free and member card can collection points for sale orchid or free transportation orchid it will help the studio run the business smoothly. The promotion and the service will help to promote and these will create new brand loyalty to wholesalers.

Economic Factors We prove that we can produce more orchid than European zone, because we have enough the nature resources or green zone. So, it’s another way to make a lot of profit in Thailand or get the higher economic with Thailand. Chiang Rai province the rate of inflation in the year 2555 are expected to be 5.9 percentage per year (with a forecast of 3.5 to 8.2 per year) increased from the previous year 5.6 percent from the pressure of interest rates tend to be rise and the impact of natural disasters effective to the price of agricultural products is higher and output of economic plant are still flat compared with the previous year. Services increased slightly, resulting in the recovery of natural disasters is estimated that the economy will improve and result in the future is increasing in export orchid that advantage for our business. Although, orchids are the flowers that important in foreign because revenue from exports is more than 2,000 million baht per year, a key factor that helps in strengthening the orchid Thailand industry. After recovery of natural disasters exportation will increasing that benefit for our business. We welcome you all wholesaler customers. Free Coffee and water are also available at all time.

Social and environment factors Wholesaler in Chiang Rai and foreign country the orchid are very popular. So, you can see each flower store has sell orchid, such as a department store and so on. Some industry or restaurants are admired to use flower to decorate as beautiful place. There are also decorating for our business. However, Chiang Rai has a lot of traveler because Chiang Rai has many interesting places to attract tourists, beautiful resource, nice weather which is suitable for growing orchids. The most important with the business is about ASEAN that it can make a lot of profit for our business because easy and save cost of transportation to ASEAN member so; Orchid might not first thing that they want, especially in case of depressed economy but orchid not expensive. However, it depends on their opinion. There is possibility that orchid is the priority concern for consumer like fulfilling the last jigsaw. Someone very love orchid and orchid is very important for them because plant orchid get more benefit such as Helps to relax the stress, have a good mind, everybody can plant orchid, can buy for gift to yourself or someone, can use small place around home, and not much investment. These are the opportunity for jobs in each local or the Northern of Thailand. Moreover, there are potential markets for our orchid supermarket.

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Technology factors Nowadays, Thailand is the country that being development the technological and industrial which it’s completely apply with its business. Thailand has its own expertise and professional technology department which increase the value adding on every stage of Thai’s production. Thailand is also created, export and import technologies around the world. According to Ministry of Science and Technology of Thailand said the electrical, electronics, software and digital content industries (Ministry of Science and Technology, 2010). Thailand technology equipment is going developing and communicated faster because of the international competitive. However now the technology is distributed to Chiang Rai So, this is will be the advantage for the orchid supermarket and our use all the technology equipment to support our business such as biotechnology , flowcytometer (can temple the chromosome of orchids), automatic weather station (AWS), internet (for e-commerce) and other. So, there are enough for supported technology equipment for doing business and it will be deserved the customers satisfaction. Finally, all the technology equipment supported is going to create the competitive advantage for our business, when the orchid supermarket can apply the technology equipment to reach the customer needs. Orchid supermarket is not focused on supporting technology only, but also focused on to be a service leading in Chiang Rai. Sometimes, best service provider is not enough, but the orchid supermarket also needs good equipment to support out business.

Competition analysis From the information of Department of Export Promotion, Ministry of Commerce, Royal Thai Government report that in the Thailand has many export orchid. The company did survey about possible competitors, we found that Thai orchid Co., Ltd, Air Orchid Supermarket, Pachara orchid intertrade Co., Ltd, Siam Flower 1985 Co., Ltd, and N & K Orchid Farm are the main competitors of business. The company analyzed the main competitor in Thailand for gathering their information and competitive edge. Those competitors will influence to price trending and market situations. The company would like

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to hold the higher advantage competitive and also use their information to create the differentiation strategies.

Thai Orchid Co., Ltd.

Thai Orchids Co., Ltd was established in 1989 by Mr. Jadeand Mrs. Sritip Meyanyieam fully engaged in exportation of fresh orchid cut - flowers. The company is located in Bangkok, Thailand. In the beginning the company possessed only 5-6 overseas clients. With the commitment in quality and breeding development for 18years, the company now has more than 30 overseas clients worldwide in many sale zones like North America, Europe, Asia, Australia, New Zealand and Middle East. Now we gain international acceptance under TOC brand and guiding principle “Thai Orchids Step Forward Worldwide”. Toc Nursery or TOC farm is located in Ratchaburi Province where is suitable for orchids growing. With the help of TOC farm network system, the orders from all over the world can be sent to the farm directly. The farm is separated to eight regions according to their species raised by the skillful farmers. Each region is administrated by the supervisor and sufficient farmers to guarantee the quality of orchids the head office in Bangkok can monitor the situation in the farm through the monitoring video. In continual development of both quality and service for the past 20 years, we also entirely focus in quality management system, good ethical initiative as well as fairness treatment to our employees as TOC employee is our prestigious assets. This is a clear proof that we were accredited ISO 9001:2000 in 2001, recognized ETI Base Code ( Ethical Trading Initiative) from Moody as well as recognized the Good Governance Award from PueyUngpakorn Institution.

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We continue to strive to provide the best quality fresh-cut orchids to our valuable customers under the guiding principles of: 1. Trust in Quality, 2. Mind to Service, 3. Uniform in Production, 4. Tie to Improvement (Orchids T., 2010).

Air Orchid Supermarket

Air Orchid & Lab which offers you supreme quality orchids at a respectively reasonable price. We believe that, with over 28 years of hand-on experience, we could surprise you with continuous improvement and development of new hybrids. In addition, the company is a well-known “Wholesaler and Exporter" of new breeds. Importantly, Mr. Air (the owner) has bred more than 1,500 varieties of new hybrids so far with most of them being exported worldwide. We grow our orchids on more than 60 acres of land that will ensure a match to your preferences. Air Orchid Supermarket is the very first Orchid Supermarket in Thailand where you can select orchid plants you like, put them as many as you want into shopping cart and they will be promptly packed and loaded into your car. Within an acre of the supermarket, we welcome you all both wholesale and retail customers. Our place has become well-known as a tourist stop of Nakornpathom province. Free Coffee and water are also available at all time (Air Orchid and Labs, 2010).

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Pachara Orchids Intertrade Co.,Ltd.

Pachara Orchids Intertrade Co.,Ltd. was established in 1996 in Suphanburi , we started orchids nursery with main business of hotel management and orchids plantation. We specialize in Vanda, Dendrobium, Cattleya, and other varieties. Most of orchids are produced under our knowledge and registered under our company name. We have flasks, seedlings, medium and flowering plants for local and for export market. Because of the outstanding character, our product already well known in world market for example V. Pachara Delight, FCC/JOGA In the nursery, we have one head of growing department and his duty is to maintain and do treatment to orchid itself. He has about 12 people to support him. In these contact grower nurseries, mainly are growing our products depending on the environment for each individual area which we have set up the choice of varieties best suited for each location. These include Orchids Vanda and Dendrobium farms. Our main export market is Indonesia, USA and other Asian countries namely, China, Hong Kong, Malaysia, Taiwan etc.

Our Export Market Our main export market is Indonesia, USA and other Asian countries namely, China, Hong Kong, Malaysia, Taiwan etc. Our annual export is about 1,800,000 seedlings per year to Indonesia market alone, which have a huge local market share. Market in Asia is starting to grow and expand since2001. Starting 2003, the market is increasing significantly. Until now, we export not less than 120,000 – 150,000 seedlings of dendrobium and 6,000 blooming size of Vanda every month. For local market, we have a store at the flower market for the local wholesaler from all over Thailand, they come to buy direct or have the orchids sent to them by train to their location. For Orchids Exhibition booth Sale, we participate in many local orchids exhibition which organized by the Orchids committee all year round at least 6 times per years. This helps us meet directly with the buyer and sometime oversea clients who come to the show and make their order from us.

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Quality and Service Pachara Orchids Intertrade Co., Ltd. committed to give the best quality and service to all customers and supported by superior, professional standard service. In this way, management is able to forge a long term relationship with customers and contribute their success. We give the best possible solution to each individual client as according to their location and climatic type of each country. Also we give advice on fertilizer and how to grow the plants and treatment for flowering period. We also travel to give educated orchids related seminar program to the government organization in some countries like Indonesia, Serang in July 2006. This is to make us closer to our customers and learn from the feedback directly from each nursery (Orchids P., 2009).

Siam Flower 1985 Co., Ltd.

Siam Flower 1985 Co.,Ltd. established in 1985, by Mr. Suwan Yukpan, the Founder and President of Siam Flower 1985 and Mr. Wittaya Yukpan, Managing Director, recognized as one of the biggest and most reliable Orchid Grower and Exporter in Thailand. We have brought out the beauty of Thai orchid to the people in every part of the world. Besides a large quantity of orchid flowers from our own farm, even more are cropped daily

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from another 200 contracted farms that we are working closely with. We have all varieties of orchid: Dendrobium, Aranda, Mokara, Oncidium, Aranthera, Vanda and etc. Apart from orchid flowers we also deal with leis, wild ranges of tropical and foliage. As the professional of Orchid Grower and Exporter, we know how to treat and keep them in best condition until received to our value customers. We do guarantee the Quality. Farm Good air ventilation and clean water is one most important for growing orchids. Our farm is located in an agricultural area where the environment is perfect for orchid growing. From the total area of 160 acres, 30 acres is full of production. With the concept of environment friendly, we use chemicals as the last choice or as less as possible. Reduction in pesticide and fungicide use is our major objective. We also apply the biological techniques such as using sticky trap or control pest population by enemy insect. For our contracted farms, we are working closely together with them. Group meeting is always organized to discuss about new knowledge or growing technique, problem found and proper solution. We always give them the idea of the customer is requirements and preferences. This is to ensure the highest quality and to fulfill our customer is need (Siam flower, 2005).

N & K Orchid Farm

N&K Orchid Farms Co., Ltd is one of the leading orchid exporting companies in Thailand. We first started growing orchids in year 1979 by Mr. Nirut and Mrs. Kasorn Chinkawin, a couple who was deeply fascinated and in love with orchids. With over 20-year of experience in growing and exporting orchids, you can be assured that you will receive the best quality of orchids with the most reasonable price. We provide varieties of Orchid Products and Foliages such as Fresh Cut Orchid flowers, Orchid Bouquets, Orchid Leis and Loose Flowers, and Orchid Plants.

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At our farms, we started with growing baby plants from nursery to adultery stage providing adequate nutrition, sunlight, water and of course….lots of “LOVE”. We raise and care them as one of our family members. You will not only receive fine orchids but will absolutely receive “LOVE” from us (NandKorchid, 2012). International Competitor

Thailand is the major exporter of orchids in the world. These facts make Thailand have competitors that want to share orchids market. Therefore Thailand has to develop production and exportation in order to enhance the potential more than the competitors. Now we can generate the international competitor into 4 countries that exported orchids in to Japan markets includes Taiwan, New Zealand, Malaysia and Vietnam (Situation J. M., 2010).

New Zealand New Zealand offers their product into Japan market this is the stronger export product in New Zealand. In addition New Zealand has appropriate factors to produce flower such as atmosphere, land quality, service and transportation etc. Moreover New Zealand expect to increasing percentages to export orchids around 16 % from last years (market, 2010).

Figures: the destination of New Zealand Exports

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Taiwan The second exporter that offer orchid to Japan market, because Japan market offer high quality of orchids that Taiwan can provided. Then Taiwan and Thailand is the couple competitors also developed their products and expand the opportunities for export product in to Japan Market (Taiwan trade, 2010).

Malaysia Malaysia has less degree of factor to produced orchids than both before countries in term of lower varieties traded, farm size and destinations of the produce. However, Malaysia focus to provide the qualitative product in to market this is the advantages that many nice markets import orchids from Malaysia (Malaysia Orchids export summaries (Situation, 2010).

Type / Year

2007

2008

2009

Orchids

6,259.60

4,268.40

6,069.18

6,828.24

Temperate Flower

33,305.8

20,450.9

23,283.3

28,754.59

4

3

7

1,063.82

753.08

1,394.76

1,239.78

40,629.3

25,472.4

30,747.3

36,822.61

6

1

1

Other Cut Flower & Flower Buds, Other than

2010

Fresh Total export

Table: Malaysia Orchid Export Summary

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Vietnam

Vietnam has the annual average of 70,000,000 of orchids export in 2002 that create income around 20 percentages of gross national profit. The advantages of Vietnam’s orchids include favorable climate conditions, high quality of land and easy to develop and adept factors when customer expectation changing. In addition, many nice markets always prefer orchids from Vietnams such as Japan, China, Hong Kong, Singapore etc. (Travel, 2010).

STP analysis 

Segmentation We separate targeting into two kinds of product as cut orchid and orchid plants. 1. Orchid Cut Flowers Old customer: Japan, Italy, United States, China, Taiwan, and The Netherlands. New customer: India, Russia, Romania, Vietnam, and The new United Arab Emirates. 2. Orchid Pot Plants Old customer: Japan, Netherlands, Germany, the United States, and Republic of Korea. New customer: Vietnam, French, Brazil, China, and Singapore

Cut Orchid Orchid Plant

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

Target market According to The Japanese Flower Promotion Center; Thailand is number one

exporter in Japan’s market. The Japanese like Thai orchid. It is a favorite of the Japanese. The Japan has a high demand for cut flower Thai orchids and has a value of U.S. $ 5,000 million per year. In 2004, the demand for cut flowers of Japanese nearly doubled, because people in Japan prefer to using orchid for all of festivals such as Mother Day, Wedding, and The Prayer Month of Obon.



Positioning The company exporting value for cut orchids, and orchid plant In 2011, so we start by

contact with agency to provide convenience to exporting then us focuses on different product on alternative process, because we would like use short-transportation than other company. We offer transportation at Chiang Rai airport and by ship that provide short-time to exporting and maintenance quality and service of product, because cut of orchid will sensitive with temperature and environment

High Quality

Low Service

High Service

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Low Quality

Chiang Rai Orchid Export Co., Ltd has high service more than other company but the product quality is less than Thai Orchids Co., Ltd, Pachara Orchids Intertrade Co., Ltd and Air Orchid Supermarket, because other company there are many technology and has professional orchids species

Marketing Mix (4P)

1. Product Strategies: We can generate into 2 kind of products as cut orchid and orchid plant. Cut orchid such as Cattleya, Dendrobium, Mokara, and Vanda, and Orchid plant such as Ascocenda, Aerides, Cymbidium, Doritis, Phalaenop, Paphiopedilom, Rhynchotylis, and etc.

2. Price strategies: Product of farm is high quality and has many species. We wholesale by price per kilogram.

Description

Price Per Kilogram (Baht)

Ascocenda

130

Aerides 230

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Angraecum 450

Bulbophyllum 180 - 300

Cattleya 120

Cymbidium 270

Dendrobium 20

Doritis 80

Epidendrum 100

Gongora

280

45

Grammato

50

Liparis 100

Mokara 40 - 50

Oncidium

100

Phalaenopsis 100-500

Paphiopedilum 130

Rhynchostylis

350-400

Renanthera 100

Trichoglottis 270

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Vanda 60-100

Price of Chiang Rai Orchid Export Co., Ltd. per Kilogram

3. Place We use multiple channels to sell our products. The Internet is the way that we use for sell to customers directly because now almost everyone uses Internet and can access easily. There is a company Facebook, Twitter and radio for promote our farm. We provide information about company, products, location and contact information on the Internet for those who interested orchids. Our customer can check the price of products through the Internet as well. If customers want to get more information they can contact us through the telephone number and online channels.

4. Promotion Alternative to advertising, we focus to joint in many events and show in country and outside (Orchid Event, 2009) and our website (www.CR-orchids.com)

Public event

Monthly Event 2011 Month

Events

January

Sukhothai Orchid Festival (Sukhothai)

February

Kaset Fair (Bangkok) Den. Friedricksianum Fair (Chuntaburi) Nakorn Pathom Orchid Fair (Nakorn Pathom)

March

Ratchaburi Orchid Competition (Ratchaburi) Surat Thani Competition (Surat Thani)

June

The Royal Orchid Paradise (Bangkok)

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Growth rate Worst case Most likely Best case August

Year 1

Year 2

Year 3

Year 4

Year 5

3% 6% 8%

3% 6% 8%

0% 2% 3% 5% 5% 5% 6% 8% 8% Queen Sirikit Park Fair (Bangkok) Lanna Orchid Competition (Chiang Mai)

September

Korat Orchid Competition (Nakorn Ratchasima)

October

Lopburi Orchid Competition (Lopburi)

November

Uttaradit Orchid Competition (Uttaradit)

December

December Horticultural Fair (DHF), Nakorn Pathom Suan Luang Rama IX’s Fair, Bangkok

Sale forecast December 31, 2011 Base Annual Sale

500,000 bath

Probability

Growth rate Worst case Most likely Best case

Worst case

10%

Most likely

50%

Best case

40%

Total

100%

Year 1

Year 2

Year 3

Year 4

Year 5

0% 5% 6%

2% 5% 8%

3% 5% 8%

3% 6% 8%

3% 6% 8%

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Year

month

2011

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Year

month

2012

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Total Total Total

2013 2014 2015

Worst case 50,000 45,830 41,670 41,670 33,330 27,080 22,920 25,000 25,000 41,670 62,500 83,330 50,0000

Forecasted sale Most Best case likely 52,500 53,000 48,130 48,580 43,750 44,170 43,750 44,170 35,000 35,330 28,440 28,710 24,060 24,290 26,250 26,500 26,250 26,500 43,750 44,170 65,630 66,250 87,500 88,330 52,5000 53,000

Weighted average 52,450 48,080 43,710 43,710 34,970 28,410 24,040 26,230 26,230 43,710 65,560 87,420 52,4500

Worst case 51,000 46,750 42,500 42,500 34,000 27,630 23,380 25,500 25,500 42,500 63,750 85,000 510,000 525,300 541,060 557,290

Forecasted sale Most Best case likely 55,130 56,710 50,530 51,980 45,940 47,260 45,940 47,260 36,750 37,810 29,860 30,720 25,270 25,990 27,560 28,360 27,560 28,360 45,940 47,260 68,910 70,890 91,880 94,520 551,250 567,100 578,810 612,470 613,540 661,470 650,350 714,380

Weighted average 55,350 50,730 46,120 46,120 36,900 29,980 25,370 27,670 27,670 46,120 69,180 92,240 553,470 586,920 625,460 666,660

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Explanation Our product of company is orchid. Our company sell to export for foreign that sell part of flowers of orchid and all of part of orchid. Our company has variety species of orchid, and our orchids are very beautiful. Moreover, our company has method convention for beautiful of orchids that our orchids are alive long time. Our company estimate for each year. The first year, our company has many expenses such as land, building, labor, equipment’s, and other when compare profit our company gets that cost more than profit. The second years, the customer will know our company and will get profit more than in the first year but get profit low than the cost for investment. The third years, our company is reputation more the past time and has many habitudes. Our company gets profit more than the cost. Moreover, have direct competitor and indirect competitor increase. The forth years, our company develop our product, service and create new product because our company have competitors. However, the forth years get many the profit. The five years, our company expend to market in the world.

Marketing Expenses -

-

-

Advertising: Our company pay money for many types of advertising that people will know Chaing Rai Orchids Export. Facebook: Our company set fanpage of Facebook of Chaing Rai Orchids Export. Most people use internet that get to know from internet and many of people have Facebook. Moreover, Facebook help to decrease cost and easy to create fanpage. Website: Our company set to create website that sell our product and consult with orchid for customers. One the method that customers will know Chaing Rai Orchids Export. Website uses few cost and easy to create website. Event: Our company set event at foreign countries that group countries want to buy orchid sell to another people or use orchid for them company. Our company is one choice for customers market in the world.

Conclusion Orchids are one species of the tree. Orchids have many species that each all species of orchid are beautiful and shape different. People in the world, are interest in orchid. Thailand has export many thing such as rice, sugar, equipment of electronic, bean, shrimp, and other that orchid is one important for export in Thailand. Our company export to orchid foreign countries in the world. Our company offer convenient for can choose variety orchid and beautiful orchid. Our company plan to develop our product for progress to number one in the world. We use PEST analysis in order to analyze the external environment that may effect to our business. We have to know this thing because it let we know how to behave. The PEST analysis including 4 dimensions which are politic, economic, socio-cultural and technology. We also analyze the environment as well. Daylight company knows the competitor, customers and competitive clearly after analyze according to Five Force model. In addition,

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we use market penetration strategy in order to gain more market share in the first stage. There are many distribution channels that we use to promote our products such as internet (website and Fecebook), signboards, radio, and other.

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Chapter 4: Investment

Building cost ITEM

DESCRIPTION

Q'TY

UNIT

PRICE UNIT PRICE

TOTAL

BLUDING 1 1

TEMPERATE ORCHIDS (5*10*3.5)

50

SQ.M.

10,000.00

500,000.00

2

TROPICAL ORCHIDS

200

"

4,000.00

800,000.00

( 20*10*3.5) 1,300,000.00 TOTAL BLUDING 1 ITEM

DESCRIPTION

Q'TY

UNIT

PRICE UNIT PRICE

TOTAL

BLUDING 2 1

TEMPERATE ORCHIDS (5*10*3.5)

50

SQ.M.

10,000.00

500,000.00

2

TROPICAL ORCHIDS

200

"

4,000.00

800,000.00

( 20*10*3.5) 1,300,000.00 TOTAL BLUDING 2 ITEM

DESCRIPTION

Q'TY

UNIT

PRICE UNIT PRICE

TOTAL

BLUDING 3 1

LIVING ROOM (5*8*3.5)

40

SQ.M.

10,000.00

400,000.00

52

2

OFFICE (5*8*3.5)

40

"

10,000.00

400,000.00

3

ORCHIDS SELECT (5*8*3.5)

40

"

10,000.00

400,000.00

4

LABORATORY ( 5*8*3.5)

40

"

10,000.00

400,000.00

5

STORE (2*5*3.5)

10

"

10,000.00

100,000.00

6

TOILET (7*5*3.5)

35

"

12,000.00

420,000.00 2,120,000.00

TOTAL BLUDING 3 ITEM

DESCRIPTION

Q'TY

UNIT

PRICE UNIT PRICE

TOTAL

EXTERIOR DECORATION 1

Palm

23

tree

3,000

69,000.00

2

Japan Grass

975

m*m

20

19,500.00

3

Concrete surface parking car

684

"

400

273,600.00

4

Concrete surface

225

"

600

135,000.00

5

Concrete walk way (smart board )

123.5

"

245

30,257.50

527,357.50 TOTAL BLUDING EXTERIOR DECORATION GRAND TOTAL

5,247,357.50

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Cost of Investment Pre Operation Cost Landscape cost

6,000,000

Baht

4,500

Baht

20,000

Baht

6,024,500

Baht

The company establishment permission Others Total

Investment Cost No. of No.

List

1.

Land cost

2.

Building cost

Price/unit 1,200,000

unit

Price 5

6,000,000 5,247,357.5

Furniture cost 3.

Air condition

15,200

10

152,000

4.

Computer(CPU)

17,300

8

138,400

5.

Printer

6,890

2

13,780

6.

Television

29,990

2

59,980

7.

Telephone

690

8

5,520

8.

Wall-mounted speaker

490

10

4,900

9.

DVD player

1,990

1

1,990

10.

Microphone

5,900

1

5,900

11.

Medium Rack

1,990

30

59,700

12.

Water dispenser

13,100

1

13,100

13.

Light Emergency Lamp

1,580

6

9,480

14.

Fire extinguishers

650

6

3,900

15.

Desk

3,900

8

31,200

16.

Chair

1,082

10

10,820

17.

Filing cabinet

2,840

4

11,360

18.

Lamp

380

55

20,900

54

19.

Plastic dome camera

4,537

6

27,222

20.

Water closet

1,549

12

18,588

21.

Basin

750

10

7,500

22.

Plastic Rack 1.5”

25

500

12,500

23.

Plastic Rack 3.5”

25

500

12,500

24.

Plastic label

160/100 unit

15

2,400

25.

Fan

9,500

12

114,000

26.

Plastic for put to fertilizer

1

300

300

2

300

600

30/10 unit

100

3,000

40/10 unit

100

4,000

180

50

9,000

180

50

9,000

1” 27.

Plastic for put to fertilizer 2”

28.

Plastic put to plastic pot 4”

29.

Plastic put to plastic pot 6”

30.

Fertilizer formula 16-2127

31.

Fertilizer formula 20-2020

32.

Coir

50

50

2,500

33.

Coir

5

100

500

34.

Vacuum bottle

399

1

399

35.

Photocopier

16,900

1

16,900

36.

Dripper

2

60

120

37.

Set of Dripper

2

60

120

38.

Equipment of Dripper 3

3

40

120

0.50

20

10

165

100

16,500

17

500

8,500

654,000

5

3,270,000

line 39.

Equipment of Dripper 1 line

40.

Equipment of Dripper

41.

Box

42.

The Car

55

43.

Sofa

44.

8,900

2

17,800

Lab Shirt

290

30

8,700

45.

Closing of nose

0.70

100

70

46.

Boots

150

30

4,500

47.

Refrigerator

6,200

1

6,200

48.

Scissors

20.25

12

243

49.

Plastic Pot 4”

3

1,000

3,000

50.

Plastic Pot 6”

4

1,000

4,000

51.

Wire 3 line

300/120 unit

10

3,000

52.

Glass

16

30

480

53.

Bin

300

12

3,600

54.

Calculator

160

8

1,280

55.

Cutter

10.25

50

512.50

56.

Broom

25

20

500

57.

Swab

160

20

3,200

58.

medicinal liquid

120

10

1,200

Total investment

60,384,852

Depreciation Investment

Amount

Depreciation

Building Cars Office Equipment

฿5,247,357.50 ฿3,270,000.00 ฿3,349,494.50

20 8 5

Annual Depreciation ฿262,367.88 ฿408,750.00 ฿669,898.90

Monthly Depreciation ฿21,863.99 ฿34,062.50 ฿55,824.91

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Depreciation Year 1

Investment Building Cars Office Equipment Total

Amount 5,247,357.50 3,270,000.00 3,349,494.50 11,866,852.00

Jan 21,863.99 34,062.50 55,824.91 111,751.40

Feb 21,863.99 34,062.50 55,824.91 111,751.40

Mar Apr May June July Aug Sep Oct Nov Dec 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40

Depreciation Year 2

Investment Building Cars Office Equipment Total

Amount 4,984,989.12 2,861,250.00 2,679,595.60 10,525,834.72

Jan 21,863.99 34,062.50 55,824.91 111,751.40

Feb 21,863.99 34,062.50 55,824.91 111,751.40

Mar Apr May June July Aug Sep Oct Nov Dec 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40

Depreciation Year 3

Investment Building Cars Office Equipment Total

Amount 4,722,621.24 2,452,500.00 2,009,696.70 9,184,817.94

Jan 21,863.99 34,062.50 55,824.91 111,751.40

Feb 21,863.99 34,062.50 55,824.91 111,751.40

Mar Apr May June July Aug Sep Oct Nov Dec 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40

Depreciation Year 4

Investment Building Cars Office Equipment Total

Amount 4,460,253.36 2,043,750.00 1,339,797.80 7,843,801.16

Jan 21,863.99 34,062.50 55,824.91 111,751.40

Feb 21,863.99 34,062.50 55,824.91 111,751.40

Mar Apr May June July Aug Sep Oct Nov Dec 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40

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Depreciation Year 5

Investment Amount Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Building 4,197,885.48 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 21,863.99 Cars 1,635,000.00 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 34,062.50 Office Equipment 669,898.90 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 55,824.91 Total 6,502,784.38 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40 111,751.40

58

Chapter 5: Operation Analysis Production and operations Analysis Product Characteristics (in detail) Characteristic of Orchid The orchid can classify by objective in classification such as 1. Classify by family of orchid such as Dendrobium, Oncidium, Vanda and etc. 2. Classify by roots system and material. 

Terrestrial orchid



Epiphytic orchid



Semi-terrestrial orchid



Semi-epiphytic orchid.

3. Classify by type of growth and shape 

Monopodial and Sympodial

4. Classify by native land is classify by use climate in place that find out them, growth with the environment. The advantage of this choice is can choose the appropriate environment for plant them such as 

Tropical orchid is the orchids that have native land in tropical areas is 12 degrees north to 12 degrees south that have the daytime temperature not less than 21 Celsius and the night temperature not less than 18 Celsius such as Dendrobium, Mokara, and Vanda.



Sub-tropical orchid is the orchids that have native land in temperature colder than Tropical, in daytime between 18-21 Celsius and night between 15.5-18 Celsius such as Cattleya,and Oncidium.



Temperate orchid is the orchids that have native land in rather cold areas, in daytime between 14.5-15.5 Celsius and night between 12.5-14.5 Celsius such as Miltonia and Odontoglossum.



Cold climate orchid is the orchid that have natives land in cold areas, in daytime between 12.5-14.5 Celsius and night between 10-12.5 Celsius e.g. Cymbidium

59

Specification and feathers 

ZONE 1 & ZONE 2: Cultivation of Orchids

TEMPERATURE ORCHIDS ROOM To produce beautiful, long-lasting blooms, orchids must produce energy in the form of carbohydrates during the day when the temperature is high and store that energy at night when the temperature drops. This temperature fluctuation is necessary for orchids to bloom. Without a day-night fluctuation of 10-15 degrees Fahrenheit, the plants will grow plenty of healthy foliage but may stubbornly refuse to flower. A night temperature of 60-62 degrees F is ideal for optimum growth, but temperatures as low as 55 degrees F will not harm your plant. Daytime temperatures should range between 70 and 80 degrees F. Temperatures as high as 90-95 degrees F for short periods will cause no harm, however, as long as proper humidity and air circulation are maintained. THINGS TO CONSIDER: In the world of the orchid, temperature, light and humidity work in conjunction with one another, and unless a harmonious relationship is achieved between them, optimum growth is not possible. In instances of low humidity, high temperatures can be dangerous; in the case of too much atmospheric moisture, the effects of low temperatures can be over-emphasized. A widely held misconception is that all tropical orchids need extremely high temperatures to survive. This is not altogether true, and to subject them to such treatment can be disastrous. In the very early days of orchid cultivation, many failures were due to growing orchids in the excessive temperatures of a "stove" house. TROPICAL ORCHIDS ROOM General: Tropical orchids are no more difficult to grow than other plants, but because most of them are epiphytes (tree dwelling plants) their culture is different from that of other types of plants. British orchid growers failed in the early 1800's when they attempted to grow tropical orchids under dark, hot, and steamy conditions. They succeeded only when they realized that most tropical orchids grew at higher, cooler elevations and in the upper branches of trees where they got considerable light and perfect drainage. Lighting: In the greenhouse, most orchids require some shading to prevent the leaves from overheating. In the home, however, orchids need the maximum light available. Placing them outside under the shade of tall trees during the summer months is very beneficial. Do not

60

place them in full sun, however, or the leaves will burn. Also, do not place the plants on the ground, for insects and slugs (snails) can enter the pots and damage the plants. Pot hangers can be used to suspend the plants from tree branches, chains, strong trees, or other structures. Temperature: In the home, placing the orchids in a room with relatively cool temperatures will help guard against dehydration. Most orchids are actually most happy at temperatures below the comfort level of humans, especially at night. Orchid greenhouses are usually maintained at 55-65 degrees at night. Soil: Potting mixes for tropical orchids are loose mixtures of organic material such as fir bark (not pine bark), tree fern, osumda fiber, with small amounts of peat, perlite, cork, or charcoal added. The object is to have a mix that drains well, but holds some moisture. Most commercial orchid growers supply ready-to-use orchid mixes in small quantities. Orchids usually need repotting only once every two to three years. Moisture: In watering orchids, it is best to soak the potting mix thoroughly and wait until the surface is relatively dry before watering again. Most orchids in fir bark based mixes will need watering no more than once every 5 to 7 days. Fertilizer: All plants can be fertilized safely with a water-soluble urea free fertilizer such as Grow more 20-10-20 about once a month. Some orchid growers prefer to mix water-soluble fertilizers weaker than indicated on the package instructions and to use them every second or third watering. Always water before fertilizing and remember that it is best to under-fertilize rather than to over-fertilize. With the lower light and drier conditions in the home, orchids cannot use as much fertilizer as they can use in the greenhouse. Some growers like to increase the humidity around their orchids in the home by using "humidity trays" or trays of wet gravel around or under the plants. Pots should not touch the surface of the water. 

ZOME 3: Service Customers

-

Living room In the living room, customers can relax, read, watch movies and TV, or play video

games. Customers waste hours on the Internet. They welcome visitors and chat with them. It is the space where we function as social and solitary creatures, often at the same time. It is, biologically speaking, a useless room. And yet, it’s probably the room most of us like the most.

61

-

Office room



The office room is located in an orderly clean.



The group works with the same characteristics or similar to be included in the same area for ease of control and order.



A convenient way.



The ventilation system, lighting, color, temperature in the room.

-

Orchid Cut Flowers In the recent past, orchids could only be purchased from nurseries and other specified

orchid growers. Today, you can find orchids blooming on the display racks of discount stores, home centers, even grocery stores, for prices that seem to belong to much more modest plants. But there could be a hidden cost to these amazing bargains. -

Laboratory Orchid Tissue Laboratory, We are a full-service laboratory offering custom lab

services for the orchid grower. We encourage small accounts as well as larger ones. In addition to our strong set of skills, we offer clients premier service and adhere to the strictest ethical standards. While we intend to offer flasks in the future, we do not presently sell plants. -

Toilet The toilet is divided into two zones, men and women, clean and hygienic.

Services Process Our orchid super market Company’s service processes will consider with pre-pickup, picking up service and post- pickup service. And we also provide services from web in order to serve our customers as comfortable as possible. a) Pre-Pickup Service Once the customer contact us for planning their orchid cultivation going smoothly by give an idea and find the vendors according to their effort. We will provide following services:

62

-

Sending the catalog (various orchid types)

-

Reservation to buy.

-

Counseling to Find and select the perfect type of orchid.

-

Estimate the actual cost of cultivation.

b) Picking up Service In this period, even the people just visit our company for seeing or taking photo, we just try to explain and encourage to sale our product. -

Provide the narrator to introduce our product in orchid display counter.

-

Make demonstration program to attract customers.

-

Make sure every section do their job efficiently.

-

Make membership system.

-

Arrange the parking

-

Meet and greet all of participants.

-

Communicate and answer all questions from guests as well as cultivate.

-

Warranty to help cultivation system.

c) Post-Wedding Service Although the our product is sold, we still care and on the following services -

Update orchid industry’s news (new types, new technique of cultivating)

-

Check the customers’ orchid.

-

Make sure outcome is satisfy the orchid

-

Estimate the guest’s perception

-

Send the thank you card or present to customers the following day of the anniversary.

-

Taking care the orchid cultivation (after caring service)

Location Chiang Rai Orchid Export Co., Ltd. is located on Paholyothin road. It’s opposite Chiang Rai Central Plaza and near the football field. 10kilometers from Mae Fah Luang – Chiang Rai International Airport to Chiang Rai Orchid Export Co., Ltd. and 1kilometer from Seeyakmaekorn to Chiang Rai Orchid Export Co., Ltd.

63

Figure 1: Location map

Figure 2: Location map

64

Figure 3: Local map

Figure 4: Local map

65

Facility layout

Figure 1: Chiang Rai Orchids Export

Figure 2: Plan of Chiang Rai Orchids Export

66

Figure 3: Zone 1

Figure 4: Zone 2

67

Figure 5: Zone 3

Our company is divided into three zones including: 

Zone 1 and Zone 2 is the cultivation of orchids. This zone can be classified as temperate orchids and tropical orchids. Some orchids like cold weather. There can be no sunlight for a long time and some orchids like hot weather or like sunlight so, it cannot be cultivated combination.



Zone 3 is zone for service customers including living room, office, orchid Cut Flowers, laboratory, store, toilet, and car parking. It is important point for our customers. Which customer can ask about some information that relates our company, payment the services, and order our orchids this here. Orchids select room is room for screening orchid into the box to export to customers that order, professional staffs, and packing process to ensure that all products will be delivered to customers in best

68

condition. Laboratory room is laboratory facilities offering high quality mericlone and seed culturing services for the orchid and ornamental plant industry. All stages of the growing cycle to satisfy customer needs; including flasks, community-pots, seeding, medium, blooming and flowering sizes. In addition, we have entrances two ways is the way into the car park and the way which is walking distance into the front of the company to provide convenience for customers.

Equipment of zone 1: cultivation of orchids 1. Plastic Pot

Brand: Size 4 inch

Price: 3 Baht

Brand: Size 6 inch

Price: 4 Baht

Reference: http://www.orchidshoponline.com/goods-4.html 2. Wire 3 line

Brand: Wire 3 line length 7.5 c.m. Price: Baht: 300 Baht/120 piece Reference: http://www.orchidshoponline.com/goods-362.html

69

3. Plastic Rack 1.5”

Brand: Plastic Rack 1.5” Size 25”x14”x1” Price: 25 Baht Reference: http://www.orchidshoponline.com/goods-5.html

4. Plastic Rack 3.5”

Brand: Plastic Rack 3.5” Size 25”x14”x1” Price: 25 Baht Reference: http://www.orchidshoponline.com/goods-6.html 5. Plastic for put to fertilizer 1”

70

Brand: Plastic for put to fertilizer 1” Price: 1 Baht Reference: http://www.orchidshoponline.com/goods-99.html

6. Plastic for put to fertilizer 2”

Brand: Plastic for put to fertilizer 2” Price: 2 Baht Reference: http://www.orchidshoponline.com/goods-100.html

7. Plastic put to plastic pot

Brand: Plastic put to plastic pot size 4”

price: 30 Baht/ 10 pieces

Brand: Plastic put to plastic pot size 6”

price: 40 Baht/ 10 pieces

Reference: http://www.orchidshoponline.com/goods-361.html

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8. Plastic label

Brand: Plastic label Price: 160 Baht/100 piece Reference: http://www.orchidshoponline.com/goods-284.html 9. Fertilizer formula 16-21-27

Brand: Fertilizer formula 16-21-27 Price: 180 Baht Reference: http://www.aorchid.com/product-category/121251/ 10. Fertilizer formula 20-20-20

Brand: Fertilizer formula 16-21-27

72

Price: 180 Baht Reference: http://www.aorchid.com/product-category/121251 11. Coir

Brand: Coir 106329 Price: 50 Baht Reference: http://www.nanagarden.com

12. Coir

Brand: Coir 770401-A201 Price: 5 Baht Reference: http://www.thaitambon.com/tambon/tsmepdesc.asp? 13. Dripper

73

Brand: Dripper Price: 2 Baht Reference: http://sprinklerthai.tarad.com/product.detail_166405_th_905107

14. Set of Dripper

Brand: Set of Dripper Price: 2 Baht Reference: http://www.sprinkler-thai.com/product_166405_th

15. Equipment of Dripper 3 line

Brand: Equipment of Dripper 3 line Price: 3 Baht Reference: http://www.kanokproduct.com/product16. Equipment of Dripper 1 line

Brand: Equipment of Dripper 1 line

74

Price: 0.50 Baht Reference: http://www.kanokproduct.com/product17. Equipment of Dripper

Brand: Equipment of Dripper Price: 165 Baht Reference: http://www.kanokproduct.com/product18. Light Emergency Lamp

Brand: SAFEGUARD Compact Light COM645-212 Price: 1,580 Baht Reference: http://www.champmarketing.net/index.php?page=product&productid=186 19. Fire extinguishers

75

Brand: Fire extinguishers (Dry Powder) Price: 650 Baht Reference: http://www.firefocusshop.com/product.detail_627732_th_2938938 20. Air conditioning

Brand: Mitsubishi MS-SGG13VC Price: 15,200 Baht Reference: http://www.xn--42c6bc8ab3d7abd0mtd8a.com/ 21. Lamp

Brand: Philips Price: 380 Baht Reference: http://shopping.sanook.com/product/6515032 22. Plastic dome camera

76

Brand: MVD5830 Price: 4,537 Baht Reference: http://gcshop.gctechnology.co.th 23. Fan

Brand: Masterkool Price: 9,500 Baht Reference: http://www.masterkool-ccs.com/19/Ecokool-Ice-24.html 24. Wall-mounted speakers

Brand: TOA BS-633A Price: 490 Baht Reference: http://www.stereohouse.co.th 25. Bin

77

Brand: Bin Price: Baht: 300 Baht Reference: http://www.24plast.com/product-th-

Equipment of zone 2: cultivation of orchids 1. Plastic Pot

Brand: Size 4 inch

Price: 3 Baht

Brand: Size 6 inch

Price: 4 Baht

Reference: http://www.orchidshoponline.com/goods-4.html 2. Wire 3 line

Brand: Wire 3 line length 7.5 c.m. Price: Baht: 300 Baht/120 piece Reference:http://www.orchidshoponline.com/goods-362.html

78

3. Plastic Rack 1.5”

Brand: Plastic Rack 1.5” Size 25”x14”x1” Price: 25 Baht Reference:http://www.orchidshoponline.com/goods-5.html 4. Plastic Rack 3.5”

Brand: Plastic Rack 3.5” Size 25”x14”x1” Price: 25 Baht Reference:http://www.orchidshoponline.com/goods-6.html 5. Plastic for put to fertilizer 1”

Brand: Plastic for put to fertilizer 1”

79

Price: 1 Baht Reference: http://www.orchidshoponline.com/goods-99.html 6. Plastic for put to fertilizer 2”

Brand: Plastic for put to fertilizer 2” Price: 2 Baht Reference: http://www.orchidshoponline.com/goods-100.html 7. Plastic put to plastic pot

Brand: Plastic put to plastic pot size 4”

price: 30 Baht/ 10 pieces

Brand: Plastic put to plastic pot size 6”

price: 40 Baht/ 10 pieces

Reference: http://www.orchidshoponline.com/goods-361.html 8. Plastic label

80

Brand: Plastic label Price: 160 Baht/100 piece Reference: http://www.orchidshoponline.com/goods-284.html 9. Fertilizer formula 16-21-27

Brand: Fertilizer formula 16-21-27 Price: 180 Baht Reference: http://www.aorchid.com/product-category/ 10. Fertilizer formula 20-20-20

Brand: Fertilizer formula 16-21-27 Price: 180 Baht Reference: http://www.aorchid.com/product-category/121251/ 11. Coir

81

Brand: Coir 106329 Price: 50 Baht Reference: http://www.nanagarden.com/ 12. Coir

Brand: Coir 770401-A201 Price: 5 Baht Reference: http://www.thaitambon.com/tambon/tsmepdesc.asp? 13. Dripper

Brand: Dripper Price: 2 Baht Reference: http://sprinklerthai.tarad.com/product.detail_166405_th_905107 14. Set of Dripper

82

Brand: Set of Dripper Price: 2 Baht Reference: http://www.sprinkler-thai.com/product_166405_th 15. Equipment of Dripper 3 line

Brand: Equipment of Dripper 3 line Price: 3 Baht Reference: http://www.kanokproduct.com/product-% 16. Equipment of Dripper 1 line

Brand: Equipment of Dripper 1 line Price: 0.50 Baht Reference: http://www.kanokproduct.com/product17. Equipment of Dripper

Brand: Equipment of Dripper Price: 165 Baht Reference: http://www.kanokproduct.com/product-

83

18. Light Emergency Lamp

Brand: SAFEGUARD Compact Light COM645-212 Price: 1,580 Baht Reference: http://www.champmarketing.net/index.php?page=product&productid=186 19. Fire extinguishers

Brand: Fire extinguishers (Dry Powder) Price: 650 Baht Reference: http://www.firefocusshop.com/product.detail_627732_th_2938938 20. Air conditioning

Brand: Mitsubishi MS-SGG13VC Price: 15,200 Baht Reference: http://www.xn--42c6bc8ab3d7abd0mtd8a.com/

84

21. Lamp

Brand: Philips Price: 380 Baht Reference: http://shopping.sanook.com/product/6515032 22. Plastic dome camera

Brand: MVD5830 Price: 4,537 Baht Reference: http://gcshop.gctechnology.co.th 23. Fan

Brand: Masterkool Price: 9,500 Baht

85

Reference: http://www.masterkool-ccs.com/19/Ecokool-Ice-24.html 24. Wall-mounted speakers

Brand: TOA BS-633A Price: 490 Baht Reference: http://www.stereohouse.co.th 25. Bin

Brand: Bin Price: Baht: 300 Baht Reference: http://www.24plast.com/product-th-

Equipment of zone 3: Office 1. Box

86

Brand: Box Price: 17 Baht Reference: http://www.box2go.in.th/item/20 2. The Car

Brand: Car Price: 654,000 Baht Reference: http://www.thaicar.com/demo/new_car/detail.php 3. Sofa

Brand: Sofa MONTI Price: 8,900 Baht Reference: http://www.furnituretohome.com 4. Lab Shirt

87

Brand: Lab Shirt Price: 290 Baht Reference: http://npshop1999.com 5. Closing of nose

Brand: Closing of nose Price: 0.70 Baht Reference: http://www.biocleans.net/mask.html 6. Boots

Brand: Boots Price: 150 Baht Reference: http://www.sumjob.com/boot/ 7. Refrigerator

Brand: Refrigerator 1 Door HITACHI Model R-64SX 6.4Q

88

Price: 6,200 Baht Reference: http://www.priceza.com/ 8. Scissors

Brand: Scissors Price: 20.25 Baht Reference: http://www.chornakorn.co.th/products.php?cat_id=13&cat_sub_id=47 9. Glass

Brand: Glass No. 81 high 12 cm. 10 oz. (278 ml.)-u Price: 16 Baht Reference: http://www.kaew9.com/catalog.php?idp=81 10. Bin

Brand: Bin Price: Baht: 300 Baht Reference:http://www.24plast.com/product-th-

89

11. Calculator

Brand: Calculator Price: 160 Baht Reference: http://www.calculatorthailand.com/ 12. Cutter

Brand: Cutter No.303 Price: 10.25 Baht Reference: http://www.chornakorn.co.th/products.php?cat_id=13&cat_sub_id=48

13. Broom

Brand: Broom Price: 25 Baht Reference: http://www.otop-thailand.com/

90

14. Swab

Brand: Swab Price: 160 Baht Reference: http://www.siamonlineshop.com/question.asp?QID=90554 15. Medicinal liquid

Brand: medicinal liquid Price: 120 Baht Reference: http://www.worachat.com/index. 16. Computer

Brand: HP Compaq Presario CQ3072L (KY781AA#AKL) Price: 17,300 Baht Reference: http://www.buycoms.com/

91

17. Printer

Brand: BROTHER INKJET ALL IN ONE (MFC-5890CN) Price: 6,890 Baht Reference: http://www.reghardware.com/ 18. Television

Brand: Philips 42" 42PFL5606S Price: 29,990 Baht Reference: http://www.lcdtvthailand.com/ 19. Telephone

Brand: Siemens Gigaset 5005 Price: 690 Baht Reference: http://www.1pabx.com/telephones.html

92

20. Wall-mounted speakers

Brand: TOA BS-633A Price: 490 Baht Reference: http://www.stereohouse.co.th 21. DVD player

Brand: SONY DVP-K68P Price: 1,990 Baht Reference: http://www.yopi.co.th/prd_1953693 22. Microphone

Brand: JTS Price: 5,900 Baht

93

Reference: http://www.accessprosystem.com 23. Medium Rack

Brand: Medium Rack Price: 1,990 Baht Reference: http://www.weloveshopping.com 24. Water dispenser

Brand: HYUNDAI Price: 13,100 Baht Reference: http://www.air-ban.com/water_cold_hot/W2-310L.html 25. Light Emergency Lamp

Brand: SAFEGUARD Compact Light COM645-212

94

Price: 1,580 Baht Reference: http://www.champmarketing.net/index.php?page=product&productid=186 26.

Fire extinguishers

Brand: Fire extinguishers (Dry Powder) Price: 650 Baht Reference: http://www.firefocusshop.com/product.detail_627732_th_2938938 27. Air conditioning

Brand: Mitsubishi MS-SGG13VC Price: 15,200 Baht Reference: http://www.xn--42c6bc8ab3d7abd0mtd8a.com/ 28. Desk

Brand: Melamine Price: 3,900 Baht

95

Reference: http://www.thaiofficepro.com/page.php?id=23&mnid=34&pid=16 29. Chair

Brand: NSB office Price: 1,082 Baht Reference: http://www.nsboffice.com/productdetail-gid-1657.aspx 30. Filing cabinet

Brand: DAIWA Price: 2,840 Baht Reference: http://www.daiwafurniture.com/product/cabinet_dr-215.asp 31. Lamp

96

Brand: Philips Price: 380 Baht Reference: http://shopping.sanook.com/product/6515032 32. Plastic dome camera

Brand: MVD5830 Price: 4,537 Baht Reference: http://gcshop.gctechnology.co.th 33. Vacuum bottle

Brand: Vacuum bottle size 2.5 L. Price: 399 Baht Reference: http://www.electrics4you.com/index.php?mo=30&cid=174380 34. Photocopier

Brand: Photocopier Samsung SCX 4828FN Price: Baht: 16,900 Baht

97

Reference: http://www.bangkokcopier.com 35. Water closet

Brand: KOHLER Price: 1,549 Baht Reference: http://www.191sale.com 36. Basin

Brand: Olicsion Price: 750 Baht Reference: http://www.ppdynamic.com/product.detail_24991_th_217928

98

Logistic Management Product management in organization need to the logistics management. Organization is required logistic system for transportation and business management in service of our have product delivery for customer. In business management for the distribution and the quality of product. In organization are required car, aircraft, and boat for product transportation. Transportation goods service for according to customer requirement. Product of our need correct according to customer order and convince system of delivery. Transportation system of our must be considered the safety of the product, editing product, or between transportation product may cause an accident we responsible include the return of goods, replacement product. So, we consideration to set up logistic rule follow as 1. Times 2. Prices 3. Contract life times 4. Service 5. Insurance Boat

Car

Aircraft

99

Chapter 6: Organization /Administration Operating Cost Because of our company is provide service to the customer so we will don’t have production process. So we will don’t have raw material cost and direct labor cost. But we still have manufacturing overhead and we estimate the manufacturing overhead cost per month as follow; 1. Salary of employees

Total

- Receptionists

2 persons

- Accountant

Cost/person

12,000

Total 24,000 baht/mouth

2 persons

16,000

32,000 baht/mouth

-Marketers

2 persons

15,000

30,000 baht/mouth

-Maintenance

4 persons

7,000

28,000 baht/mouth

-HR manager

1 person

12,000

12,000 baht/mouth

-Managers

1 persons

30,000

30,000 baht/mouth

-Training manager

1 person

9,000

9,000 baht/mouth

-Staff

6 persons

7,000

42,000 baht/mouth

- Laboratories

5 persons

10,000

50,000 baht/mouth

- House keepers

3 persons

6,000

18,000 baht/mouth

- Security

2 persons

6,000

12,000 baht/mouth

- Driver

3 persons

8,000

24,000 baht/mouth

- Employee

8 persons

6,000

48,000 baht/mouth 359,000 baht/mouth

100

Organization Chart

Manager Secretary Finance Department Accountance, Maintenance

Marketing Department

Seller person

Head who control gardeners & drivers Employee, Driver

HR manager

Receptionists, Taining manager

General Staff

House keepers, security guard

Recruitment plan Manager Job position: 1 Job type: full time Job time: 9.00am – 16.00pm.

Job qualification 1. Male / female, age at least 30 years. 2. Master's or Bachelor's Degree 3. Thai nationality 4. Knowledge and experience about managing at least 5 years, can control all department

Job description - He / She can set up targeting of company, planning all of operating which follow target of company, assigning work to employee appropriately, good communication inside company,

101 and can evaluation & improvement of all position in company. Besides, it is include managing and payment salary of employee, supervise order of stock, and contact suppler for order the product and negotiation about price.

Job requirement - We will be post notice about job description for apply a job on front of store and post in which internet and office of department of employment, we will post in both ways. We will interview them before start the job and check her/him job qualification. We will tell about salary, scope of work, test the skill of control and negotiation, and ask about experience from working.

Secretary Job position: 1 Job type: full time Job time: 9.00am – 16.00pm.

Job qualification 1. Male / female, age at least 24 years. 2. Master's or Bachelor's Degree 3. Thai nationality 4. Knowledge and experience about secretary at least 2 years, listen to instructions from the manager well, can contact customer.

Job description - The secretary provides a list of the common key tasks, activities and responsibilities associated with the secretarial job. The secretary role will vary depending on the sector, the size of the employer and the level of the job. However, almost all secretarial jobs will involve an element of each of these typical work tasks.

Job requirement - We will be post notice about job description for apply a job in Chiang Rai province and post in which internet for another province. We will post in both ways. We will interview them about secretary’s skill and we will tell about salary, scope of work.

102 Finance department Job position: 2 Job type: full time Job time: 9.00am – 16.00pm.

Job qualification 1. Male or female age at least 22 years old 2. Thai nationality 3. Knowledge and Experience about accounting at least 2 years 4. Well know and well experience of routes 5. Responsibility of duty

Job description - Task of accountant is management and responds all of activities about finance, account, record buy-sale, and order in-out of stock before send to manager for check against. These works start on 9.00am-16.00pm.

Job requirement - We will post a notice about apply for a job on area in front of store, area in central of Chiang Rai, and post on internet. If somebody takes an interest, we will have interview about finance and account skill.

Human resource department Job position: 2 Job type: full time Job time: 9.00am – 16.00pm. 96

Job qualification 1. Male / female, age at least 25- 30 years. 2. Master's or Bachelor's Degree

103 3. Thai nationality 4. Knowledge about choose skill each employee.

Job description - Human resources are the people that staff and operate an organization. Learn about the people who work in Human Resources. Specifically, learn about the job description of the HR Manager, the HR generalist and the HR Director.

Job requirement - We will post a notice about apply for a job on area in front of store, area in central of Chiang Rai, and post on internet for another province. If somebody takes an interest, we will have interview about skill. We will tell about salary, scope of work.

Marketing department Job position: 2 Job type: full time Job time: 9.00am – 16.00pm.

Job qualification 1. Male / female, age at least 25- 30 years. 2. Master's or Bachelor's Degree of business and marketing. 3. Thai nationality.

Job description - Conduct market research such as customer questionnaires and focus groups, sourcing advertising opportunities and placing adverts in the press (local, regional, national and specialist publications) or on the radio (depending on the organization and the campaign).

Job requirement - We will post at internet and post notice in front of our shop at Chiang Rai. Then we will interview them.

104 General staff Job position: 2 Job type: full time Job time: 9.00am – 16.00pm.

Job qualification 1. Male / female, age at least 23- 28 years. 2. Master's or Bachelor's Degree. 3. Thai nationality.

Job description - Take care general and basic corporate of our company. Sometimes can help task of each department.

Job requirement - We will post at internet and post notice in front of our shop at Chiang Rai. Then we will interview them before start the job and check her/him job qualification.

Salesperson Job position: 2 Job type: part time Job time: 7.00am – 12.00pm, 12.00 – 17.00 pm.

Job qualification 1. Male / female, age at least 20- 27 years. 2. Thai nationality. 3. Friendly and polite.

105 Job description - Task of seller person is selling our orchids to customers and take care customer about convenience when customer buy our orchids including seller person must have friendly and polite when they do work.

Job requirement - We will be post notice about job description for apply a job on front of store and central of Chiang Rai. Include post on internet. We will interview them before start the job and check her/him job qualification. We will tell about salary, scope of work, test the skill, and ask about experience from working.

Head gardener Job position: 1 Job type: full time Job time: 9.00am – 16.00pm. 100

Job qualification 1. Male age at least 30-35 years. 2. Professional in grow vegetables. 3. Can control a lot of people 4. Thai nationality.

Job description - Responsible knowledge about orchids, characteristic of soil and can control gardeners including savvy, growing the orchids. - Have leadership skill and able to control others.

Job requirement - We will be post notice about job description for apply a job on front of store. We will interview them before start the job and check her/him job qualification. We will tell about salary, scope of work, test the skill of control and negotiation, and ask about experience from working.

106 Employees Job position: 8 Job type: full time Job time: 6.00am – 14.00pm.

Job qualification 1. Male / female age at least 25-35 years. 2. Professional in grow orchids. 3. Thai nationality.

Job description - Responsible knowledge about orchids, characteristic of soil and can control employees including savvy, growing the orchids.

Job requirement - We will be post notice about job description for apply a job on front of store. We will interview them before start the job and check her/him job qualification. We will tell about salary, scope of work, test the skill of control and negotiation, and ask about experience from working.

Drivers Job position: 3 Job type: full time Job time: 6.00am – 14.00pm.

Job qualification 1. Male age at least 24 years old 2. Permanent driving license 3. Thai nationality 4. Knowledge and Experience about delivery least 2 years

107 5. Well know and well experience of routes

Job description - Task of driver respond about delivery by transport. Move the product on the pickup car to our shop, Move down the product from pickup car. Good car care and well skill how to treat basic repair tired of pickup car. Well know the street. Perform the traffic too stick. Do not drink in job time.

Job requirement - We will post at internet and post notice in front of our shop at Chiang Rai. Then we will interview them before start the job and check her/him job qualification.

Housekeepers Job position: 3 Job type: full time Job time: 8.00am – 16.00pm.

Job qualification 1. Female age at least 25 years old 2. Thai nationality 3. Well skill in cleaning 4. Well know and well experience how to use equipment and chemicals for cleaning. 5. Responsibility of duty

Job description - Task of house keeper respond about cleaning all of product in farm and our shop. Maintain the cleaning front of store area. Always clean when dirt. Always clean the toilet. Care cleans all area of store. Polite confer to customer.

108 Job requirement - We will be post notice about job description for apply a job on front of store and post in which internet and office of department of employment, we will post in both ways. We will interview them before start the job and check her/him job qualification. We will tell about salary, scope of work, test the skill of control and negotiation, and ask about experience from working.

Security guard Job position: 2 Job type: full time Job time: 6.00am – 18.00pm. , 18.00pm – 6.00 am 103

Job qualification 1. Male age at 25- 40 years old 2. Thai nationality 3. Well skill in fighting 4. Honest and polite

Job description - Call police or fire departments in cases of emergency, such as fire or presence of unauthorized persons. Circulate among visitors, patrons, and employees to preserve order and protect property.

Job requirement - We will be post notice about job description for apply a job in Chiang Rai and post in which internet for another province. We will post in both ways. We will interview them about skill task and we will tell about salary, scope of work.

109

Chapter 7: Financial Analysis

INCOME STATEMENT Statement of Comprehensive Income Year 1

Jan Revenues Sales Total Revenues Expenses Cost of Good sold Electricity Expenses Water Supply Expenses Communication Expenses Repair and Maintenance Expenses Salaries and Wages Expenses Depreciation Expenses Total Expenses Profit (Loss) Before Finance Cost and Tax Expenses Finance Cost Income Tax Expenses Net Profit (Loss)

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

฿940,000.00 940,000.00

฿882,000.00 882,000.00

฿840,000.00 840,000.00

376,000.00 35,000.00 7,000.00 5,000.00 0.00 300,000.00 111,751.40 834,751.40

352,800.00 35,000.00 7,000.00 5,000.00 0.00 300,000.00 111,751.40 811,551.40

336,000.00 35,000.00 7,000.00 5,000.00 0.00 300,000.00 111,751.40 794,751.40

335,200.00 35,000.00 7,000.00 5,000.00 0.00 300,000.00 111,751.40 793,951.40

320,000.00 35,000.00 7,000.00 5,000.00 0.00 300,000.00 111,751.40 778,751.40

311,160.00 35,000.00 7,000.00 5,000.00 0.00 300,000.00 111,751.40 769,911.40

293,600.00 35,000.00 7,000.00 5,000.00 90.00 300,000.00 111,751.40 752,441.40

279,400.00 35,000.00 7,000.00 5,000.00 0.00 300,000.00 111,751.40 738,151.40

272,000.00 35,000.00 7,000.00 5,000.00 0.00 300,000.00 111,751.40 730,751.40

105,248.60 50,000.00 0.00 55,248.60

70,448.60 50,000.00 0.00 20,448.60

45,248.60 50,000.00 0.00 -4,751.40

44,048.60 50,000.00 0.00 -5,951.40

21,248.60 50,000.00 0.00 -28,751.40

7,988.60 50,000.00 0.00 -42,011.40

-18,441.40 50,000.00 0.00 -68,441.40

Oct

฿838,000.00 ฿800,000.00 ฿777,900.00 ฿734,000.00 ฿698,500.00 ฿680,000.00 ฿750,800.00 838,000.00 800,000.00 777,900.00 734,000.00 698,500.00 680,000.00 750,800.00

Nov

Dec

฿844,000.00 844,000.00

฿970,600.00 970,600.00

300,320.00 35,000.00 7,000.00 5,000.00 0.00 300,000.00 111,751.40 759,071.40

337,600.00 35,000.00 7,000.00 5,000.00 100.00 300,000.00 111,751.40 796,451.40

388,240.00 35,000.00 7,000.00 5,000.00 20.00 300,000.00 111,751.40 847,011.40

-39,651.40 -50,751.40 50,000.00 50,000.00 0.00 0.00 -89,651.40 -100,751.40

-8,271.40 50,000.00 0.00 -58,271.40

47,548.60 50,000.00 0.00 -2,451.40

123,588.60 50,000.00 0.00 73,588.60

Aug

Oct

Statement of Comprehensive Income Year 2

Jan Revenues Sales Total Revenues Expenses Cost of Good sold Salaries and Wages expense Electricity Expenses Water Supply Expenses Communication Expenses Repair and Maintenance Expenses Depreciation Expenses Total Expenses Profit (Loss) Before Finance Cost and Tax Expenses Finance Cost Income Tax Expenses Net Profit (Loss)

Feb

Mar

Apr

May

Jun

Jul

Sep

฿879,900.00 ฿840,000.00 ฿816,795.00 ฿770,700.00 ฿733,425.00 ฿714,000.00 ฿788,340.00 879,900.00 840,000.00 816,795.00 770,700.00 733,425.00 714,000.00 788,340.00

Nov

Dec

฿987,000.00 987,000.00

฿926,100.00 926,100.00

฿882,000.00 882,000.00

฿886,200.00 ฿1,019,130.00 886,200.00 1,019,130.00

394,800.00 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 853,551.40

370,440.00 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 829,191.40

352,800.00 300,000.00 35,000.00 7,000.00 5,000.00 150.00 111,751.40 811,701.40

351,960.00 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 810,711.40

336,000.00 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 794,751.40

326,718.00 300,000.00 35,000.00 7,000.00 5,000.00 300.00 111,751.40 785,769.40

308,280.00 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 767,031.40

293,370.00 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 752,121.40

285,600.00 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 744,351.40

315,336.00 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 774,087.40

354,480.00 300,000.00 35,000.00 7,000.00 5,000.00 170.00 111,751.40 813,401.40

407,652.00 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 866,403.40

133,448.60 50,000.00 0.00 83,448.60

96,908.60 50,000.00 0.00 46,908.60

70,298.60 50,000.00 0.00 20,298.60

69,188.60 50,000.00 0.00 19,188.60

45,248.60 50,000.00 0.00 -4,751.40

31,025.60 50,000.00 0.00 -18,974.40

3,668.60 50,000.00 0.00 -46,331.40

-18,696.40 50,000.00 0.00 -68,696.40

-30,351.40 50,000.00 0.00 -80,351.40

14,252.60 50,000.00 0.00 -35,747.40

72,798.60 50,000.00 0.00 22,798.60

152,726.60 50,000.00 0.00 102,726.60

110

Statement of Comprehensive Income Year 3

Jan Revenues Sales Total Revenues Expenses Cost of Good sold Salaries and Wages expense Electricity Expenses Water Supply Expenses Communication Expenses Repair and Maintenance Expenses Depreciation Expenses Total Expenses Profit (Loss) Before Finance Cost and Tax Expenses Finance Cost Income Tax Expenses Net Profit (Loss)

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

฿923,895.00 ฿882,000.00 ฿857,634.75 ฿809,235.00 ฿770,096.25 ฿749,700.00 ฿827,757.00 923,895.00 882,000.00 857,634.75 809,235.00 770,096.25 749,700.00 827,757.00

Nov

Dec

฿1,036,350.00 1,036,350.00

฿972,405.00 972,405.00

฿926,100.00 926,100.00

฿930,510.00 ฿1,070,086.50 930,510.00 1,070,086.50

414,540.00 300,000.00 35,000.00 7,000.00 5,000.00 400.00 111,751.40 873,691.40

388,962.00 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 847,713.40

370,440.00 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 829,191.40

369,558.00 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 828,309.40

352,800.00 300,000.00 35,000.00 7,000.00 5,000.00 480.00 111,751.40 812,031.40

343,053.90 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 801,805.30

323,694.00 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 782,445.40

308,038.50 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 766,789.90

299,880.00 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 758,631.40

331,102.80 300,000.00 35,000.00 7,000.00 5,000.00 700.00 111,751.40 790,554.20

372,204.00 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 830,955.40

428,034.60 300,000.00 35,000.00 7,000.00 5,000.00 250.00 111,751.40 887,036.00

162,658.60 50,000.00 0.00 162,658.60

124,691.60 50,000.00 0.00 74,691.60

96,908.60 50,000.00 0.00 46,908.60

95,585.60 50,000.00 0.00 45,585.60

69,968.60 50,000.00 0.00 19,968.60

55,829.45 50,000.00 0.00 5,829.45

26,789.60 50,000.00 0.00 -23,210.40

3,306.35 50,000.00 0.00 -46,693.65

-8,931.40 50,000.00 0.00 -58,931.40

37,202.80 50,000.00 0.00 -12,797.20

99,554.60 50,000.00 0.00 49,554.60

183,050.50 50,000.00 0.00 133,050.50

Aug

Sep

Oct

Statement of Comprehensive Income Year 4

Jan Revenues Sales Total Revenues Expenses Cost of Good sold Salaries and Wages expense Electricity Expenses Water Supply Expenses Communication Expenses Repair and Maintenance Expenses Depreciation Expenses Total Expenses Profit (Loss) Before Finance Cost and Tax Expenses Finance Cost Income Tax Expenses Net Profit (Loss)

Feb

฿1,088,167.50 ฿1,021,025.25 1,088,167.50 1,021,025.25

Mar ฿972,405.00 972,405.00

Apr

May

Jun

Jul

฿970,089.75 ฿926,100.00 ฿900,516.49 ฿849,696.75 ฿808,601.06 ฿787,185.00 ฿869,144.85 970,089.75 926,100.00 900,516.49 849,696.75 808,601.06 787,185.00 869,144.85

Nov

Dec

฿977,035.50 ฿1,123,590.83 977,035.50 1,123,590.83

435,267.00 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 894,018.40

408,410.10 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 867,161.50

388,962.00 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 847,713.40

388,035.90 300,000.00 35,000.00 7,000.00 5,000.00 150.00 111,751.40 846,937.30

370,440.00 300,000.00 35,000.00 7,000.00 5,000.00 380.00 111,751.40 829,571.40

360,206.60 300,000.00 35,000.00 7,000.00 5,000.00 200.00 111,751.40 819,158.00

339,878.70 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 798,630.10

323,440.43 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 782,191.83

314,874.00 300,000.00 35,000.00 7,000.00 5,000.00 900.00 111,751.40 774,525.40

347,657.94 300,000.00 35,000.00 7,000.00 5,000.00 300.00 111,751.40 806,709.34

390,814.20 300,000.00 35,000.00 7,000.00 5,000.00 200.00 111,751.40 849,765.60

449,436.33 300,000.00 35,000.00 7,000.00 5,000.00 180.00 111,751.40 908,367.73

194,149.10 50,000.00 58,244.73 135,904.37

153,863.75 50,000.00 31,159.13 72,704.62

124,691.60 50,000.00 22,407.48 52,284.12

123,152.45 50,000.00 21,945.74 51,206.72

96,528.60 50,000.00 13,958.58 32,570.02

81,358.49 50,000.00 9,407.55 21,950.94

51,066.65 50,000.00 320.00 746.66

26,409.24 50,000.00 0.00 -23,590.76

12,659.60 50,000.00 0.00 -37,340.40

62,435.51 50,000.00 3,730.65 8,704.86

127,269.90 50,000.00 23,180.97 54,088.93

215,223.10 50,000.00 49,566.93 115,656.17

111

Statement of Comprehensive Income Year 5

Jan Revenues Sales Total Revenues Expenses Cost of Good sold Salaries and Wages expense Electricity Expenses Water Supply Expenses Communication Expenses Repair and Maintenance Expenses Depreciation Expenses Total Expenses

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

฿1,142,575.88 ฿1,072,076.51 ฿1,021,025.25 ฿1,018,594.24 ฿972,405.00 ฿945,542.31 ฿892,181.59 ฿849,031.12 ฿826,544.25 ฿912,602.09 ฿1,025,887.28 ฿1,179,770.37 1,142,575.88 1,072,076.51 1,021,025.25 1,018,594.24 972,405.00 945,542.31 892,181.59 849,031.12 826,544.25 912,602.09 1,025,887.28 1,179,770.37

Profit (Loss) Before Finance Cost and Tax Expenses Finance Cost Income Tax Expenses Net Profit (Loss)

457,030.35 300,000.00 35,000.00 7,000.00 5,000.00 150.00 111,751.40 915,931.75

428,830.61 300,000.00 35,000.00 7,000.00 5,000.00 300.00 111,751.40 887,882.01

408,410.10 300,000.00 35,000.00 7,000.00 5,000.00 330.00 111,751.40 867,491.50

407,437.70 300,000.00 35,000.00 7,000.00 5,000.00 240.00 111,751.40 866,429.10

388,962.00 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 847,713.40

378,216.92 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 836,968.32

356,872.64 300,000.00 35,000.00 7,000.00 5,000.00 700.00 111,751.40 816,324.04

339,612.45 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 798,363.85

330,617.70 300,000.00 35,000.00 7,000.00 5,000.00 440.00 111,751.40 789,809.10

365,040.84 300,000.00 35,000.00 7,000.00 5,000.00 690.00 111,751.40 824,482.24

410,354.91 300,000.00 35,000.00 7,000.00 5,000.00 0.00 111,751.40 869,106.31

471,908.15 300,000.00 35,000.00 7,000.00 5,000.00 200.00 111,751.30 930,859.45

226,644.13 50,000.00 0.00 226,644.13

184,194.51 50,000.00 40,258.35 93,936.16

153,533.75 50,000.00 31,060.13 72,473.62

152,165.14 50,000.00 30,649.54 71,515.60

124,691.60 50,000.00 22,407.48 52,284.12

108,573.99 50,000.00 17,572.20 41,001.79

75,857.55 50,000.00 7,757.27 18,100.29

50,667.27 50,000.00 200.18 467.09

36,735.15 50,000.00 -3,979.45 -9,285.39

88,119.86 50,000.00 11,435.96 26,683.90

156,780.97 50,000.00 32,034.29 74,746.68

248,910.92 50,000.00 59,673.28 139,237.64

Sep

Oct

BALANCE SHEET Statement of Financial Position Year 1

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Nov

Dec

Assets Current Assets Cash Inventory Total Current Assets

667,000.00 200,000.00 867,000.00

799,200.00 906,200.00 1,012,000.00 1,095,000.00 1,164,740.00 1,208,050.00 1,230,150.00 1,241,150.00 1,294,630.00 1,403,930.00 1,589,270.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 999,200.00 1,106,200.00 1,212,000.00 1,295,000.00 1,364,740.00 1,408,050.00 1,430,150.00 1,441,150.00 1,494,630.00 1,603,930.00 1,789,270.00

Non Current Assets Land 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 Building 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 Accumulated Depreciation-Building 21,863.99 43,727.98 65,591.97 87,455.96 109,319.95 131,183.94 153,047.93 174,911.92 196,775.91 218,639.90 240,503.89 262,367.88 Cars 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 Accumulated Depreciation-Cars 34,062.50 68,125.00 102,187.50 136,250.00 170,312.50 204,375.00 238,437.50 272,500.00 306,562.50 340,625.00 374,687.50 408,750.00 Office Equipment 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 Accumulated Depreciation-Office Equipment 55,824.91 111,649.82 167,474.73 223,299.64 279,124.55 334,949.46 390,774.37 446,599.28 502,424.19 558,249.10 614,074.01 669,898.92 Total Non-Current Assets 14,255,100.60 14,143,349.20 14,031,597.80 13,919,846.40 13,808,095.00 13,696,343.60 13,584,592.20 13,472,840.80 13,361,089.40 13,249,338.00 13,137,586.60 13,025,835.20 Total Assets 15,122,100.60 15,142,549.20 15,137,797.80 15,131,846.40 15,103,095.00 15,061,083.60 14,992,642.20 14,902,990.80 14,802,239.40 14,743,968.00 14,741,516.60 14,815,105.20 Liabilities Bank Loan

5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 Total Liabilities 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00

Owner's Equity Capital Stock 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 Retained earnings 55,248.60 75,697.20 70,945.80 64,994.40 36,243.00 -5,768.40 -74,209.80 -163,861.20 -264,612.60 -322,884.00 -325,335.40 -251,746.80 Total Liabilities and Owner's Equity 15,122,100.60 15,142,549.20 15,137,797.80 15,131,846.40 15,103,095.00 15,061,083.60 14,992,642.20 14,902,990.80 14,802,239.40 14,743,968.00 14,741,516.60 14,815,105.20

112

Statement of Financial Position Year 2

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Assets Current Assets Cash Inventory

1,784,470.00 1,943,130.00 2,075,180.00 2,206,120.00 2,313,120.00 2,405,897.00 2,471,317.00 2,514,372.00 2,545,772.00 2,621,776.00 2,756,326.00 2,970,804.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 Total Current Assets 1,984,470.00 2,143,130.00 2,275,180.00 2,406,120.00 2,513,120.00 2,605,897.00 2,671,317.00 2,714,372.00 2,745,772.00 2,821,776.00 2,956,326.00 3,170,804.00

Non Current Assets Land 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 Building 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 Accumulated Depreciation-Building 284,231.87 306,095.86 327,959.85 349,823.84 371,687.83 393,551.82 415,415.81 437,279.80 459,143.79 481,007.78 502,871.77 524,735.76 Cars 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 Accumulated Depreciation-Cars 442,812.50 476,875.00 510,937.50 545,000.00 579,062.50 613,125.00 647,187.50 681,250.00 715,312.50 749,375.00 783,437.50 817,500.00 Office Equipment 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 Accumulated Depreciation-Office Equipment 725,723.83 781,548.74 837,373.65 893,198.56 949,023.47 1,004,848.38 1,060,673.29 1,116,498.20 1,172,323.11 1,228,148.02 1,283,972.93 1,339,797.84 Total Non-Current Assets 12,914,083.80 12,802,332.40 12,690,581.00 12,578,829.60 12,467,078.20 12,355,326.80 12,243,575.40 12,131,824.00 12,020,072.60 11,908,321.20 11,796,569.80 11,684,818.40 Total Assets 14,898,553.80 14,945,462.40 14,965,761.00 14,984,949.60 14,980,198.20 14,961,223.80 14,914,892.40 14,846,196.00 14,765,844.60 14,730,097.20 14,752,895.80 14,855,622.40 Liabilities Bank Loan

5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 Total Liabilities 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00

Owner's Equity Capital Stock 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 Retained earnings -168,298.20 -121,389.60 -101,091.00 -81,902.40 -86,653.80 -105,628.20 -151,959.60 -220,656.00 -301,007.40 -336,754.80 -313,956.20 -211,229.60 Total Liabilities and Owner's Equity 14,898,553.80 14,945,462.40 14,965,761.00 14,984,949.60 14,980,198.20 14,961,223.80 14,914,892.40 14,846,196.00 14,765,844.60 14,730,097.20 14,752,895.80 14,855,622.40

Statement of Financial Position Year 3

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Assets Current Assets Cash Inventory

3,245,214.00 3,431,657.00 3,590,317.00 3,747,654.00 3,879,374.00 3,996,954.85 4,085,495.85 4,150,553.60 4,203,373.60 4,302,327.80 4,463,633.80 4,708,435.70 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 Total Current Assets 3,445,214.00 3,631,657.00 3,790,317.00 3,947,654.00 4,079,374.00 4,196,954.85 4,285,495.85 4,350,553.60 4,403,373.60 4,502,327.80 4,663,633.80 4,908,435.70

Non Current Assets Land Building Accumulated Depreciation-Building Cars Accumulated Depreciation-Cars Office Equipment Accumulated Depreciation-Office Equipment Total Non-Current Assets Total Assets

2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 546,599.75 568,463.74 590,327.73 612,191.72 634,055.71 655,919.70 677,783.69 699,647.68 721,511.67 743,375.66 765,239.65 787,103.64 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 851,562.50 885,625.00 919,687.50 953,750.00 987,812.50 1,021,875.00 1,055,937.50 1,090,000.00 1,124,062.50 1,158,125.00 1,192,187.50 1,226,250.00 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 1,395,622.75 1,451,447.66 1,507,272.57 1,563,097.48 1,618,922.39 1,674,747.30 1,730,572.21 1,786,397.12 1,842,222.03 1,898,046.94 1,953,871.85 2,009,696.76 11,573,067.00 11,461,315.60 11,349,564.20 11,237,812.80 11,126,061.40 11,014,310.00 10,902,558.60 10,790,807.20 10,679,055.80 10,567,304.40 10,455,553.00 10,343,801.60 15,018,281.00 15,092,972.60 15,139,881.20 15,185,466.80 15,205,435.40 15,211,264.85 15,188,054.45 15,141,360.80 15,082,429.40 15,069,632.20 15,119,186.80 15,252,237.30

Liabilities Bank Loan

5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 Total Liabilities 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00

Owner's Equity Capital Stock 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 Retained earnings -48,571.00 26,120.60 73,029.20 118,614.80 138,583.40 144,412.85 121,202.45 74,508.80 15,577.40 2,780.20 52,334.80 185,385.30 Total Liabilities and Owner's Equity 15,018,281.00 15,092,972.60 15,139,881.20 15,185,466.80 15,205,435.40 15,211,264.85 15,188,054.45 15,141,360.80 15,082,429.40 15,069,632.20 15,119,186.80 15,252,237.30

113

Statement of Financial Position Year 4

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Assets Current Assets Cash Inventory

4,956,091.47 5,140,547.49 5,304,583.01 5,467,541.13 5,611,862.55 5,745,564.89 5,858,062.95 5,946,223.59 6,020,634.59 6,141,090.85 6,306,931.18 6,534,338.75 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 Total Current Assets 5,156,091.47 5,340,547.49 5,504,583.01 5,667,541.13 5,811,862.55 5,945,564.89 6,058,062.95 6,146,223.59 6,220,634.59 6,341,090.85 6,506,931.18 6,734,338.75

Non Current Assets Land Building Accumulated Depreciation-Building Cars Accumulated Depreciation-Cars Office Equipment Accumulated Depreciation-Office Equipment Total Non-Current Assets Total Assets

2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 808,967.63 830,831.62 852,695.61 874,559.60 896,423.59 918,287.58 940,151.57 962,015.56 983,879.55 1,005,743.54 1,027,607.53 1,049,471.52 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 1,260,312.50 1,294,375.00 1,328,437.50 1,362,500.00 1,396,562.50 1,430,625.00 1,464,687.50 1,498,750.00 1,532,812.50 1,566,875.00 1,600,937.50 1,635,000.00 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 2,065,521.67 2,121,346.58 2,177,171.49 2,232,996.40 2,288,821.31 2,344,646.22 2,400,471.13 2,456,296.04 2,512,120.95 2,567,945.86 2,623,770.77 2,679,595.68 10,232,050.20 10,120,298.80 10,008,547.40 9,896,796.00 9,785,044.60 9,673,293.20 9,561,541.80 9,449,790.40 9,338,039.00 9,226,287.60 9,114,536.20 9,002,784.80 15,388,141.67 15,460,846.29 15,513,130.41 15,564,337.13 15,596,907.15 15,618,858.09 15,619,604.75 15,596,013.99 15,558,673.59 15,567,378.45 15,621,467.38 15,737,123.55

Liabilities Bank Loan

5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 Total Liabilities 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00

Owner's Equity Capital Stock 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 Retained earnings 321,289.67 393,994.29 446,278.41 497,485.13 530,055.15 552,006.09 552,752.75 529,161.99 491,821.59 500,526.45 554,615.38 670,271.55 Total Liabilities and Owner's Equity 15,388,141.67 15,460,846.29 15,513,130.41 15,564,337.13 15,596,907.15 15,618,858.09 15,619,604.75 15,596,013.99 15,558,673.59 15,567,378.45 15,621,467.38 15,737,123.55

Statement of Financial Position Year 5 Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Assets Current Assets Cash Inventory

6,872,734.28 7,078,421.84 7,262,646.86 7,445,913.86 7,609,949.38 7,762,702.57 7,892,554.26 8,004,772.75 8,107,238.76 8,245,674.06 8,432,172.14 8,683,161.08 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 Total Current Assets 7,072,734.28 7,278,421.84 7,462,646.86 7,645,913.86 7,809,949.38 7,962,702.57 8,092,554.26 8,204,772.75 8,307,238.76 8,445,674.06 8,632,172.14 8,883,161.08

Non Current Assets Land Building Accumulated Depreciation-Building Cars Accumulated Depreciation-Cars Office Equipment Accumulated Depreciation-Office Equipment Total Non-Current Assets Total Assets

2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 5,247,357.50 1,071,335.51 1,093,199.50 1,115,063.49 1,136,927.48 1,158,791.47 1,180,655.46 1,202,519.45 1,224,383.44 1,246,247.43 1,268,111.42 1,289,975.41 1,311,839.40 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 3,270,000.00 1,669,062.50 1,703,125.00 1,737,187.50 1,771,250.00 1,805,312.50 1,839,375.00 1,873,437.50 1,907,500.00 1,941,562.50 1,975,625.00 2,009,687.50 2,043,750.00 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 3,349,494.50 2,735,420.59 2,791,245.50 2,847,070.41 2,902,895.32 2,958,720.23 3,014,545.14 3,070,370.05 3,126,194.96 3,182,019.87 3,237,844.78 3,293,669.69 3,349,494.50 8,891,033.40 8,779,282.00 8,667,530.60 8,555,779.20 8,444,027.80 8,332,276.40 8,220,525.00 8,108,773.60 7,997,022.20 7,885,270.80 7,773,519.40 7,661,768.10 15,963,767.68 16,057,703.84 16,130,177.46 16,201,693.06 16,253,977.18 16,294,978.97 16,313,079.26 16,313,546.35 16,304,260.96 16,330,944.86 16,405,691.54 16,544,929.18

Liabilities Bank Loan

5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 Total Liabilities 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00

Owner's Equity Capital Stock 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 10,066,852.00 Retained earnings 896,915.68 990,851.84 1,063,325.46 1,134,841.06 1,187,125.18 1,228,126.97 1,246,227.26 1,246,694.35 1,237,408.96 1,264,092.86 1,338,839.54 1,478,077.18 Total Liabilities and Owner's Equity 15,963,767.68 16,057,703.84 16,130,177.46 16,201,693.06 16,253,977.18 16,294,978.97 16,313,079.26 16,313,546.35 16,304,260.96 16,330,944.86 16,405,691.54 16,544,929.18

114

Chapter 8: Risk Management

External risk Political factors Political and regulatory risks include potential losses from expropriation, nationalization, civil unrest, terrorism and significant changes to trade policies. In particular, faces risks arising from sudden increases of import restrictions, import tariffs and duties that could compromise the free flow of goods within the Group and from suppliers. To limit these risks, we proactively utilize a regionally diversified supplier base which establishes a certain protection against unforeseen changes in regulations and also allows us to shift production to other countries at an early stage if necessary. At the end of 2008, nearly all apparel-specific safeguard measures against China expired based on the World Trade Organization (WTO) accession agreements. However, various governments sought protection against imports by applying trade defense instruments, such as anti-dumping measures, on a broader scale. (Risk, 2011) Economic factors The possibility that an economic downturn will negatively impact an investment for example, launching a luxury product immediately before or during a recession carries a great deal of economic risk. Economic risk is closely related to political risk as government decisions impacting the economy may also affect an investment. For example, a central bank may raise interest rates or the legislature may raise taxes, and this may result in economic conditions impacting an investment. Social Factors The social environments are the importance factor that leads to know the potential customer behavior such as fondness of consumers; currently, Italy has flowers are a large number of goods, as part of the culture as a basis. The flowers are mainly used to decorate the house; each of them takes part in various ceremonies. Flowers were used in the bouquet. In order to provide more opportunities. Dendrobium orchids, small used the opportunity to visit the graves. The orchid tree to decorate the house and the orchid is popular as being high in

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the design and decoration. The application of fresh flowers for different occasions such as the decorated cake, the bridal bouquet, the decorations in the wedding and funeral event, the decor shops, The restaurant, boutique, spa, fashion, and interior. At the same time Orchids are also popular for use as a symbol of luxury, elegance, mystery, and magic. It will be used primarily in fashion and design. So, flowers used to decorate the trend continues to expand. A bouquet of orchids and more. The Italian people are more likely to buy less Technological Factors Nowadays, technology is the important things to the organization to perform achievements. So, we will bring technology to use in our business for fast service, easy to contact and comfortable. Technology helps and supports our business following; provide system of order with customer, opportunities of larger market, security system such as security cameras and fast to transportation. In addition, technology helps us to store customer’s data, communication system such as make communicate to suppliers and customers. Technology provides the tools for business to increase its productivity and profitability.

Internal risk Operational risk One of the major challenges facing large organizations today is assessing and controlling the risks that are inherent in their daily operations. During the enactment of a business process a lot of exceptions, that is, deviations from the normal sequence of events might occur. To assure that a process is still able to fulfill its organizational goals, process participants must be able to detect, diagnose and successfully resolve such exceptional conditions as they occur. Traditionally, managers have relied on their experience and understanding of a process in order to handle deviations from the expected flow of events. However, the increasing complexity of modern business processes and the accelerating pace with which these processes change has made the reliance on individual managers’ experience and intuition an increasingly less satisfactory way to deal with operational risks. There is an increasing need for systematic business process operational risk management methodologies.

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Such methodologies will assist business process designers to anticipate potential losses and instrument their processes so that losses can either be avoided or be detected in a timely way. Furthermore, when exception manifestations occur during process enactment, these methodologies assist in selecting the best way of resolving them. My work in this area proposes a knowledge-based approach for designing robust business processes. Rather than requiring process designers to anticipate all possible exceptions up front and incorporate them into their models, this approach is based on a set of novel computerized process analysis tools, which assist designers in analyzing “normal” process models, systematically anticipating possible exceptions and suggesting ways in which the “normal” process can be instrumented in order to detect or even to avoid them. When exception manifestations occur, these tools can help diagnose their underlying causes, and suggest specific interventions for resolving them. The approach is based on an extensible knowledge base of generic strategies for avoiding, detecting, diagnosing and resolving exceptions. It is especially relevant in the case of inter-organizational workflows, where no single entity has full control over the design and enactment of the complete process. In that case, operational risk management becomes a critical necessity. Human resource risk 

Risk Assessment and the HR Executive

As defined above, risk assessment consists of identification, analysis, and prioritization. The HR executive may identify a risk and a specific need that is not being addressed. For example, there is a deviation between what should be occurring operationally and what is occurring. This deviation is causing productivity to drop slowly but steadily. Upper management is aware of this drop in productivity and is motivated to rectify the situation. The HR executive having identified a risk, the drop in productivity for example, goes on to define the risk in terms of the human element. This is the underlying cause of the drop in productivity. Perhaps the line manager is not communicating effectively with staff. 

The HR Executive and Risk Control

The HR executive has a vital role in controlling risk. A major component of Risk Management planning is risk avoidance. Many risks can be avoided by controlling and planning the human side of the corporate equation. Succession planning, adequate severance

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and outplacement, executive coaching and development will ensure that an organization has the means to deal with current and future challenges .Risk resolution and control are important responsibilities for HR executives. Identifying crucial attributes for key executives within an organization, coaching and developing these attributes and monitoring the executives on an ongoing basis will help to minimize and resolve potential areas of risk such as employee turnover, low morale, potential litigation from misunderstandings arising between staff and management and negative publicity due to any of these or other human issues. 

IMPLEMENTATION

Follow all of the planned methods for mitigating the effect of the risks. Purchase insurance policies for the risks that have been decided to be transferred to an insurer, avoid all risks that can be avoided without sacrificing the entity's goals, reduce others, and retain the rest. 

LIMITATIONS

If risks are improperly assessed and prioritized, time can be wasted in dealing with risk of losses that are not likely to occur. Spending too much time assessing and managing unlikely risks can divert resources that could be used more profitably. Unlikely events do occur but if the risk is unlikely enough to occur it may be better to simply retain the risk and deal with the result if the loss does in fact occur. Prioritizing too highly the risk management processes could keep an organization from ever completing a project or even getting started. This is especially true if other work is suspended until the risk management process is considered complete. People and risk are as integral to farming as are weather, prices and technology. Human resources must have careful attention if managers are to have a full understanding of their sources of risks and their alternatives for handling risk .Managers' paradigms, understanding of human resource management and human resource skills determine the success they will have with people. Like the rest of risk management, blaming others for management shortcomings neither solves problems nor provides escape from the problems. The good news is that managers can make human resource management one of their strengths. The result will be better risk management, more effective management and greater satisfaction from working with people.

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Marketing risk 1. Center market of orchids is loss standard. So, orchids have a low price too. 2. The information needs of the market in depth and can’t to development of new markets for effectively. 3. To Loss support of Thai orchids in the international market is really and don’t have analysis about old partners 4. Some festival, the international want to Thai orchids, but there is not enough, so opportunity to export and income is loss. 5. Some chemicals have resulted in some orchid species with low to reach the consumer. Financial risk Financial risk refers to the risks that businesses run when making investments, planning for the future and conducting day-to-day operations. All businesses run some risk in making financial decisions. Some of these risks are external, depending on outside factors and decisions made by other organizations and consumers. Other risks are internal and deal with the chance that the strategies and actions the business leaders choose may have negative effects on operations (risk F., 2011). Five Force Model 1. Rivalry Among Current Competitors The company research information that seeks benefit information for our company. The company has direct and indirect competitors. One company is important the direct competitor of our company and many indirect competitors. One company is direct competitor. This company has characteristic same our company. This company sells to export orchid for foreign and reserve information with orchid via website. So, our company must develop orchid then number one in the world. Our company plan to extend the market in the world that start to sell neighbor countries extend to far from Thailand. However, our company emphasizes export to foreign. So, indirect competitors are any effect for our company. For direct competitor, our company should develop new product and service for customers such as create new spicy of orchid that different competitors and punctual send to customers etc.

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2. Bargaining Power of Suppliers The bargaining power of customer in this business is quite low, because there are not many orchid businesses in CHIANGRAI. But as a worldwide view it’s little bit complicate. Because we can’t estimate that how many competitors of us are exist. However Depends on our aim customers will be interesting of our product. Because of our differentiation and we are from oversea country. 3. Bargaining Power of Customers There are many suppliers from Bangkok and overseas that serve the product to us. Our product need basic element such as fertilizer and orchid pot. And in THAILAND there are many businesses related to gardening and horticulture. So, our business’s bargaining power of supplier quite not high and low is in the middle. 4. Threat of Substitute Products or Services •

The orchid need to quick and care very much when transportation.

•

The price fluctuations by the seasonal.

•

Farmers lack access to market information and the needs of customers in the

destination country. •

The lack of effective management in parks and warehouses.

•

The lack of link between the manufacturer and customer.

•

The lack of research and development in a systematic continuous

(Development of new technologies, market research, etc.). •

Exporters have cut price of exports for the market share impact to the export

price are lower. •

The transportation costs are high and lack of bargaining power in space impact

to the opportunity in the market. The flower is a product that is intended to serve as a keepsake, such as weddings, events, gifts, funerals, birthday parties, products launch or shops etc. Our customers are wholesale customers and get orchids from our factory which has a high cost because customers (wholesale) buy a lot of orchid per one time. In addition, the relationships between factory and retail customers are not better than the relationship between factory and wholesale directly; however, the customers might not consume the products. Threat of substitute products and service are not impact to our product.

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5. Threat of New Entrance Orchid export is the business that not hard to get income because orchid is the popular plant, beautiful, easy to take care. This business is interesting in part of investment and it hard to protect new entrance to invest. The solution to protect the threat of new entrance for our orchid export business. We must produce quality product and we can be the big wholesale that every retail come to sell orchid with us, in the reason to sum of each small agriculturist for a hard group, famous, everyone know about brand. When our business is famous and high quality that the new entrance must come to join the group because they are new and opportunity to sell and export product are less than our company.

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Chapter 9: Summary

Any countries around the world prefer orchid from Thailand is best beautiful in the world. Orchids are popular flower that people always use to decoration in the celebration events. Thailand has many seeds of orchids around the files, in generally orchids would like to growth well as forest environment with humid stones. So, people in ancient would like to brings orchids from the forest to their living stages for growing, the reasonable to growing is not trade, however they would to use orchids for decoration their stages. People use the concept of similar nature they bring orchid and growth it up in the trees, because they believe to orchids will growth well when the live up the tress. Orchids are product export of Thailand. Orchid garden company offers two types include Vanda and Cattleya. We is more than just an online shop offering orchids beautiful and distinct variety of orchid species to your own. We have articles and knowledge about orchids, including the story much more interesting with the offer. We prefer export products, both outside the country for earning income and distributions our marketing. The Customers can order the product several ways such as ebook, web site, Facebook, and etc. Chiang Rai Orchids Export would like to provide fresh and colorful of orchids to respond of Japan market and we wills develop to dominate for Japan marketing and spread to Euro and USA in further. In generally, Orchid export companies are more competitor stand on domestic and international competition (between countries), so the effect from many competitors will make company loss of opportunities to growth. However company would like to use different strategies and corporative strategies to competitor and gain more profits. In all of section in this report we offer the feasibility information to give decision making for investor, we considerate to long-term profit and running business in much competition

nowadays, In term of strategies we offer any important strategies such as

differentiation, low price leadership etc. to involving to new market. Moreover, in marketing channel to advertising we offer several of channels such as new paper, face book, radio, billboard etc… to promote product. In technology and any cost we offer location nearly market situation in Chian Rai that make our product save time to transportation than middle stage of Bangkok exporting. Moreover, for successful we estimate 10 percentages of 207 discount rate when cost increase 2,5,7.5 and sale estimate decrease 2,5,7.5 percentages to

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offer management process of potential risk that maintain company financial and earning profit in future.

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Reference

Action, O. m. (2005). Flower Auction Japan. Retrieved, from http://www.faj.co.jp/english/02_ABOUT/02_1_0_0_intro.html Arjan Germy. (1995). Orchids of Thailand. Retrieved from http://www.chiangmaichiangrai.com/orchids.html Corona. (2011). Hubpages. Retrieved from http://ecoggins.hubpages.com/hub/ThailandPolitical-and-Economic-Outlook-2011-and-Beyond Demand, C. (2010). Economic strategies. Retrieved from http://www.adidasgroup.com/en/investorrelations/corporate_governance/risk_management/risks_external/defau lt.aspx Denisoniana, V. (2010). Vanda. Retrieved from http://www.panmai.com/Orchid/V/v.shtml Export, (2010). Export orchid. Retrieved from http://std.kku.ac.th/4530802136/export.html Herbs. (2002 ). History of orchids. Retrieved from http://www.herbs2000.com/flowers/o_history.htm Junlapark. (2006). Orchid center. Retrieved from http://tiois.doae.go.th/home/TIOIS orchid/013_zopp-Julapark.pdf Kasetsart Agricultural and Agro-Industrial Product Improvement Institute (2011 ). Orchid export market. Retrieved from http://www.orchid.kapi.ku.ac.th/index.php?option=com_content&task=view&id=35&Itemid =51 Makewebeasy. (2012). Product&Service. Retrieved from http://www.bangkokflowerscentre.co.th/customize-Dendrobium-63413-2.html Panmai. (2010).Cattleya. Retrieved from http://www.panmai.com/Orchid/C/c.shtml Pruchyawit (2005). Orchids online. Retrieved from http://www.orchidshoponline.com/ Suwitchai Sangjun. (2011). เคหเกษตร. Retrieved from http://www.kehakaset.com/index.php?option=com_content&view=article&id=258:2011-0430-03-19-11&catid=38 คณะวิทยาศาสตร์ มหาวิทยาลัยมหิ ดล (2009). เทคโนโลยีการผลิตกล้วยไม้ . Retrieved from http://www.sc.mahidol.ac.th/scpl/orchid.html

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APPENDIX

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The orchid is flower that like have both damp and drought. It has several of size and type; moreover it’s very beautiful also. The orchid is vegetation that high adjusts and evolution in many way such as the entire trunk can assemble of water and food for use in critical condition, can develop the organ to approximate pollinate. Orchid can spread in every provincial of the world for live and fertile even in nature that not provide to other vegetation. The semblance that enough for explain and classify outstanding and different from other. Thai Orchid can classify by 2 big groups is epiphytic orchids that have about 65% of all such as Dendrobium spp., Renanthere spp., Vanda spp., and etc. And terrestrial orchid about 35% of all such as habenaria spp., Tainia spp., Anoectochilus spp., Spathoglottis spp., moreover group of terrestrial orchid can classify to saprophytic orchid such as Galeola spp., Aphyllorchis spp., more and more they can find lithophytic orchid that have both of them such as Doritis spp. and etc. The orchid can live in different environment that because of approximate adjusts and evolution for long time then they have the different of root, trunk, leaf, seed, and growth. Root is the characteristic of orchid that different from other. Orchid’s root quality is full of water. In the majority is not have the rootlet but have bushy of tissue called velamen that feature of dead cells it look like sponge then it can absorb the ore and water and can protect evaporate of water in the root. In this feature can found in both of them. The orchid’s root can do in many functions such as adhere, absorb of water and moistness in the air, collecting food, and change tuber to help in reproduction apart from that. Epiphytic orchid root is not have function in assemble of food but the main function is adhere

Many orchid’s trunk adapt for suitable of structure of trunk for support, assembly of food to use in critical condition. It has swell trunk called preudobulb and this part must touch directly of environment then it must adapt for suitable. It’s develop the inside tissue to be a

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long web and sticky or splinter for strong and flexible. It’s have function of assemble of food and water also. In the outside has bushy fat for reduction loss of water. Trunk Leaf Orchid is monocotyledon. The leaf line is parallel along the leaf it has different quality of type from of appearance, color, size and balancing act of nature. The leaves have many type such as flat, round, and mix of both is nook. But in the majority of leaf is flat that arrange both of alternate and superimposed. The color is mix of green and yellow, and some of type has a beautiful color. The function of leaf is photosynthesizing help the root can absorb of food and water to the trunk for replace of water that evaporate. The quality of leaf that different of type such as orchid in Spathoglottis app., chiloschita usneoider LDL it’s has a very small leaf hold at branch in shady and can cook also, Paphilopedilum it has beautiful color. Inflorescence Inflorescence have different quality up to kind of orchid, some kind have very short stem, long stem and erect. In case of Rhynchostylis retusa it has curved, Renanthera has long and put out twig and etc.

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Orchid Hybridization Although orchid hybridization has been carried out for 130 years, many of the programs to breed ever more beautiful orchid blooms have been hit-miss and lacked continuity. Not so the breeding program at the Singapore Botanic Garden. This was initiated by Profess or Eric Holttum in 1928 and has been ongoing almost continuously since then. Today this beautiful and well organized Botanic Garden produces an astounding range of orchid hybrids for landscaping, commercial cut-flower production and specimen plants. Those of you who grow orchids will know that the gorgeous blooms that you derive so much pleasure from never seem to set seeds. This is because of the absence of the natural pollinating insect that is specific to that orchid in its natural habitat. Orchid breeding programs cut out of the middleman or middle-insect as it is in this case, and ensure that pollen from one chosen parent comes into contact with the female parts of the other. It all sounds simple but in truth orchid breeding experience, and - most of all - a good portion of luck. There are 6 basic steps to produce a hybrid orchid:-

Step 1 : Pollen is taken from the male parent and placed on the stigma the female receptive organ, of the female receptive organ, of the female parent that has been selected

Step 2: once fertilization has taken place it may take anything from a month to over a year for the seed pods to mature. Once maturity is reached, the seeds are harvested and taken for germination.

Step 3: The precious seeds are germinated on a sterile sucrose growth medium, as soon as possible, to ensure that they do not lose their ability to produce new shoots. Even under ideal conditions, the seed can take anywhere between a few days to several months to sprout.

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Step 4 : Between six and twelve months after germination, the orchid seedlings are moved from their flasks to pots containing a carefully balanced soil mixture that is as similar to their natural home as possible. As the plants grow, they are moved to yet larger pots. Step 5: It may take many years for an orchid hybrid to flower, and it is only then that the success of the breeder can be assessed. Because of the many different flowers that will arise from a hybrid cross, each are must be carefully examined and recorded to determine the best ones for further propagation. Step 6: Once a hybrid has been acclaimed for its beauty, it is then multiplied using a technique called tissue culture. The growing point, or meristem, of a new shoot is removed and grown in a special culture medium in a flask. These flasks are then continuously agitated on a shaking tray, which makes the cells divide rapidly. After a few months, many small growths appear, each of which produces a tiny orchid plant.

Next time you look at a splendid, radiant hybrid orchid flower, remember the years of painstaking work that went on behind the scenes to produce such majestic beauty.