Project Feasibilty Study and Evaluation

Project feasibilty Study and Evaluation
Aj. chaiyawat Thongintr
Mae Fah Luang University (MFU) 2010

IM-TUB COMMODITY
By
MISS NOPPAWAN JUNTHORN ID: 4831203091
MISS WARUNYA THONGKHAMDEE ID: 4831283171
MISS WANRAYA MUANGMA ID: 5031205172
MISS WARUNEE KHIEWTHONG ID: 5031205228
MISS SUDAPORN UDDUANG ID: 5031207039
MISS SIRIPHA HEWPONG ID: 5031207150
MISS FUENGFAH JAIKLA ID: 5031207058
MR KRID SAWANGCHIT ID: 5031207068
Section: 2
Introduction
This project is one past of project feasibility study course. The organizers are
foreseeing the important of project feasibility. Thus, the organizers are planning and
manage the project feasibility. Our company name ―Im-Tub‖ is the company that
produces rice coated with coenzyme Q10 and collagen, so that there are analyzing for the
feasibility of this project. We are forecasting about for each part of planning and
managing with three part as well as marketing part, production part, and financial part.
In the part of marketing the company has marketing plan, define target group, and
using strategies to focus the customers
The part of production the company has plan for the operation system for step by
stem and using Q10 and collagen.
For the part of financial statement the company has forecasting about the company
budget and expend in organization including the operation plan.
If this project is mistake the what the organizer is apology at that time.
Project Term
Content
Page
Introduction
Excusive summary 1
Chapter 1 Introduction of project feasibility 2
Chapter 2 Industry Profile 4
Chapter 3 Market Feasibility Study 21
Chapter 4 Technical Feasibility Study 44
Chapter 5 Financial Analysis 83
Chapter 6 Business Risk Analysis 86
Chapter 7 Summary of project feasibility 89
Reference 97
Executive Summary
Im-Tab Commodity was founded by Miss Noppawan Junthorn in 2010, for
produce coated rice under Im-Erb brand. Our company locate at 14/1 Mooใ 25
Phahonyothin road, Muang, Chiang rai 57000 Tel. 053-123456 fax 053-123455. The
main customer of our company is people who love in health which live in North of
Thailand. Market share of Im-Tab commodity is about 7.5 million baht or 0.5% of all
market shares. The core competitors of our company are Golden phoenix, Loyal
umbrella and rice from Royal project Thailand. But our company can confront will
competition because we produce rice that different from another company. Im-Tab
commodity has investment 1 million baht from owner about 3 million baht and from lone
7 million baht or 30:70. At present our company has net loss 2 million baht but next year
we estimate to gain about 2 million too.
For the opportunity of our company we are foresee this business will growth
continually, so we design to create new type of coated rice to launch in the market and
this support us to expand to sale our product all of Thailand.
We bring many strategies to use in our company. In part of management we use
market penetration to expand share of our company and use focus strategy to make
differentiation. In production we design to make packaging to highest quality product,
analysis cost of production. In marketing we use advertisement to persuade customer to
interest in rice for healthy. In financing we find expert or specialist in financing and there
is internal audit control.
For the return, we estimate payback period is about 1 year 5 months and
breakeven point is 0.44
Chapter 1 Introduction
1. Background and Significance of the Project

From the brainstorm of our group we chosen to do this project by the reasons:
Nowadays we can see that many people concern about their lives by chosen the product
that give them healthy and beauty benefits for example BRAND, SCOTCH COLLAGEN,
Banner protein, BLACKMORE etc. In the future, population structure of Thailand have
trend to increase female more than male and older people will increase too. The
proportions of people who live in the city are increasingly and birth rate is decrease. It‘ s
means if Thai increase in female it makes demand of product for woman rise and if there
are many older it‘s mean product for healthy is rise too. (manager online 24 June 2005
1:20 pm)
So, it made us think that if we can add some healthy nutrient into some food
which people can eat for everyday it will attract many people to buy for our product. And
the product that Thai people eat for everyday is Rice .Therefore we create to produce rice
by adding healthy nutrition. And Thailand has ability to produce good quality rice in top
of the world.
For all reasons made us design to do the project about rice to make us know and
understand the way of rice going to be because Thai have to eat Rice and it can be the
good business in Thai.
2. Project Objectives
We should be able to understand
1. The demand of Thai people about new style Rice.
2. The production of Rice.
3. How healthy nutrition added in rice important for customer?
4. Know about economic of rice.
5. Studies competitor/ rice-mill and market.
6. Create rice innovation for healthy.
7. The factors that make customer buy rice.
8. Thai rice in others country view would they like or not?
9. Try to add value to Thai rice.
10. Studies about nutrition.
3. Benefits of Project
The benefits of this study is we are one of the Thailand‘s leading rice exporters,
exporting Thai rice, so we can apply the knowledge with this subject and we can set the
objective, planning, target market or about the customer want or demand. We can plan
advertising service and strategies distributing to customer before we do this project and it
can be information for Thai farmer who want to added value to their product to get more
profit than only sale normal rice.
And last we think that however Thai more than 80% eat Rice because it is our
culture So, This project is very important for Thai people and also investor who want to
do a business in Thai.
4. Activities/Time Frame
Project period of time
Method for November December January February 2553

operation 2552 2552 2553
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
1. Conclusion
the idea
2. Planning the
process
3. Search the
information
4. Study project
feasibility
5. Conclusion of
project
feasibility
Chapter 2 Industry Profile
1. Nature of Industry
Rice
Rice is the seed of a monocot plant Oryza sativa. As a cereal grain, it is the most
important staple food for a large part of the world's human population, especially in East,
South, Southeast Asia, the Middle East, Latin America, and the West Indies. It is the
grain with the second highest worldwide production, after maize
Since a large portion of maize crops are grown for purposes other than human
consumption, rice is probably the most important grain with regards to human nutrition
and caloric intake, providing more than one fifth of the calories consumed worldwide by
the human species.
A traditional food plant in Africa, rice has the potential to improve nutrition, boost
food security, foster rural development and support sustainable land care.
Rice is normally grown as an annual plant, although in tropical areas it can
survive as a perennial and can produce a ratoon crop for up to 20 years. The rice plant can
grow to 1–1.8 m tall, occasionally more depending on the variety and soil fertility. The
grass has long, slender leaves 50–100 cm long and 2–2.5 cm broad. The small wind-
pollinated flowers are produced in a branched arching to pendulous inflorescence 30–
50 cm long. The edible seed is a grain (caryopsis) 5–12 mm long and 2–3 mm thick.
Rice cultivation is well-suited to countries and regions with low labor costs and
high rainfall, as it is very labor-intensive to cultivate and requires plenty of water for
cultivation. Rice can be grown practically anywhere, even on a steep hill or mountain.
Although its parent species are native to South Asia and certain parts of Africa, centuries
of trade and exportation have made it commonplace in many cultures worldwide.
The traditional method for cultivating rice is flooding the fields while, or after,
setting the young seedlings. This simple method requires sound planning and servicing of
the water damming and channeling, but reduces the growth of less robust weed and pest
plants that have no submerged growth state, and deters vermin. While with rice growing
and cultivation the flooding is not mandatory, all other methods of irrigation require
higher effort in weed and pest control during growth periods and a different approach for
fertilizing the soil.
Early Spread of Rice
From an early beginning somewhere in the Asian arc, the process of diffusion has
carried rice in all directions until today it is cultivated on every continent save Antarctica.
In this early hearth area, rice was grown in forest clearing under a system of shifting
cultivation. The crop was grown by direct seeding and without standing water. Rice was
grown on "farms" under conditions only slightly different from those to which wild rice
was subject. A similar but independent pattern of the incorporation of wild rices into an
agricultural system may well have taken place in one or more locations in Africa at
approximately the same time. It was in China that the processes of puddling soil and
transplanting seedlings were likely refined. Both operations became integral pats of rice
farming and remain very widely practiced to this day. Puddling breaks down the internal
structure of soils, making them much less subject to water loss through percolation. In
this respect, it can be thought of as a way of extending the utility of a limited supply of
water. Transplanting is the planting of 1- to 6- wk-old seedlings in standing water. Under
these conditions, the rice plants have an important head start over a very wide range of
competing weeds, which leads to higher yields. Transplanting, like puddling, provides the
farmer with the ability to better accommodate the rice crop to a finite and fickle water
supply by shortening the field duration (since seedlings are grown separately, and a
higher density) and adjusting the planting calendar.
With the development of puddling and transplanting, rice became truly
domesticated. In China, the history of rice in river valleys and low-lying areas is longer
that its history as a dryland crop. In Southeast Asia, by contrast, rice was originally
produced under dryland conditions in the uplands, and only recently did it come to
occupy the vast river deltas. Migrant peoples from South China or perhaps northern
Vietnam carried the traditions of wetland rice cultivation to the Philippines during the
second millennium B.C., and Deutero-Malays carried the practice to Indonesia about
1500 B.C. From China or Korea, the crop was introduced to Japan no later than 100 B.C.
Movement to western India and south to Sri Lanka was also accomplished very
early. The date of 2500 B.C. has already been mentioned for Mohenjo-Daro, while in Sri
Lanka, rice was a major crop as early as 1000 B.C. The crop may well have been
introduced to Greece and neighboring areas of the Mediterranean by the returning
members of Alexander the Great's expedition to India ca. 344-324 B.C. From a center in
Greece and Sicily, rice spread gradually throughout the southern portions of Europe and
to a few locations in North Africa
Interestingly enough, medical geographers in the 16th century played an important
role in limiting the adoption of rice as a major crop in the Mediterranean area. During the
16th and early 17th centuries, malaria was a major disease in southern Europe, and it was
believed to be spread by the bad air (hence the origin of the name) of swampy areas.
Major drainage projects were undertaken in southern Italy, and wetland rice cultivation
was discouraged in some regions. In fact, it was actually forbidden on the outskirts of a
number of large towns. Such measures were a significant barrier to the diffusion of rice in
Europe
The suspicion that ricefields cased "mal-air" did not entirely disappear with the end of the
Renaissance. In late 1988, the United States Environmental Protection Agency and the
National Science Foundation both issued reports on the "greenhouse effect" They agreed
that there has already been some warming of the earth; that irrespective of whatever
action governments may take, the world is destined for a further temperature increase of
at least 2 oC; and that without strong human intervention the increase may be much
greater. The greenhouse effect is caused in large part by the release, though human
activity, of certain gases that dirty the atmospheric window and prevent the escape of the
earth's heat to outer space.
Carbon dioxide has long been the prime suspect, but it is now known that,
molecule for molecule, methane traps 20 times more energy. Both reports also agree that
methane concentrations are increasing at the rate of approximately 1%/yr. A major
methane source, perhaps even the largest of all, is flooded riceland. Not only do methane-
producing bacteria thrive in such an environment, but rice plants themselves act as gas
vents, putting greater-than-expected concentrations into the atmosphere. The problem is,
of course, magnified by the extension of rice area, by the expansion of irrigation facilities,
and especially by the enlargement of double-cropped rice areas. Ricefields are suspected
of putting 115 million t of methane into the atmosphere each year. This is at least equal to
the total production from all of the world's natural swamps and wetlands. Is it possible
that agricultural intensification is hastening environmental degradation? Were the 16th
century geographers on the right track after all?
As a result of Europe's great Age of Exploration, new lands to the west became
available for exploitation. Rice cultivation was introduced to the New World by early
European settlers. The Portuguese carried it to Brazil, and the Spanish introduced its
cultivation to several locations in Central and South America. The first record for North
America dates from 1685, when the crop was produced on the coastal lowlands and island
of what is now South Carolina. The crop may well have been carried to that area by
slaves brought from Madagascar. Early in the 18th century, rice spread to Louisiana, but
not until the 20th century was it produced in California's Sacramento Valley. The
introduction in the latter area corresponded almost exactly with the timing of the first
successful crop in Australia's New South Wales.
Rice the Plant

Rice, a member of the family Poaceae, is one of the three leading crops in the
world and has a variety of uses. People have used rice to make snacks, desserts, main
courses, alcoholic beverages and special foods for religious ceremonies. As a nutrition
source, rice is abundant in carbohydrates while being low in nitrogenous matter and fat.
For millions of people rice is 3/4 their total diet. In looking towards the future, scientists
are working on a technique to maximize year-round production of the crop on a given
plot of land in order to increase yields for a rice eating populous.
Rice Types
We do supply to the world market:
Thai Jasmine White Rice, also called fragrant rice or "Hom Mali" rice,
is recognized worldwide as Thailand's specialty. Thai Jasmine Rice
belongs to the indica (long-grain) category and could be devided into 3
main categories as A, B and C according to their quality; Prime Quality,
Superb Quality and Premium Quality.
Brown Rice belongs to the indica (logn-grain), similar to white rice. The
only difference between these two varieties is the milling. As a result, in
brown rice, only the husk is removed while the bran layer remains.
Because of the bran layer, brown rice contains more nutrients than white
rice. In particular, Brown rice is very high in fiber and vitamin B.
White Rice belongs to the Indica (long-grain) category. It is also known
as polished rice or fully milled rice because most of the outher layer-the
husk and the bran layer-are removed from the kernel, through the
milling process.
Broken Rice, during the milling process, broken rice is separated from
the white rice, who shape remains intact. In other words, broken rice is
the damaged white rice. A grain of broken rice gives a low fiber texture
and low nutrient level, while retaining its high energy content
Short Grain Rice belongs to the Japonica (short-grain) category and

has short, round, and plumpy dernel. When cooked, short-grained rice
is stick together, although not as much as glutinous rice.In Japanese
and Korean cuisine, short-grained rice is primary consumed in every
meal
Parboiled Rice means non-glutinous rice that has passed through the
parboiling process and has its bran removed. Parboiled rice are divided
into 9 grades: 1) 100% Sorted 2) 100% 3) 5% Sorted 4) 5% 5) 10%
Sorted 6) 10% 6) 10% 7) 15% 8) 25%9) Broken rice A1
Glutinous Rice also called sticky rice or sweet rice, consists of amylose
and amyl pectin starch. With a chalky white texture.
The standards for White glutinous rice are specified as follows:
- White glutinous rice 10%
- Short Grain
- Long Grai
Rice Farming
The majority of Thailand's total rice yield comes from the yield during normal rice
growing periods, which begins in July and ends in September. This normal rice
cultivation season may vary from place to place, depending on the land and climate
conditions.
In general, a rice field requires constant and uniform floodings. Two basic
requirements for growing rice are an even landfield that gently slopes and a well-
equipped irrigation system to allow continual cycles of water inflow and outflow. Most
importantly, the landfield must be able to maintain 2-3 inches of the water depth accross
approximately 90% of the total rice field area throughout the rice growing season
Rice Cultivating Methods in Thailand

1. Upland Rice produces about 4% of the world's total rice production. The
upland fields are severely affected by slash-and-burn agriculture, which creates serious
problem in land degradation and soil erosion. As a result, the upland soil lacks enough
nutrients and moisture to create a suitable condition for massive rice productions. Here,
rice is directly transplanted in non-flood, well-drained soil on both leveled and steeply
sloping fields
2. Lowland Rice requires a naturally flooded landbed that could retain water
throughout the growing season. Puddled soil on leveled to slightly sloping, bunded or
diked fields, are ideal for lowland rice production, in this case. Rice is directly
transplanted into the puddled field that maintains water level from 5 to10 cms. Yields
vary depeding on rainfalls
3. Deep-Water or Floating Rice is characterized by medium to very deep
flooding (50 to more than 300 cm) from nearby natural water sources, such as rain, rivers,
and tides in river mouth deltas. Rice is directly transplanted at the beginning of the rainy
season. The rice plant grows as the water rises, and it is ready to be harvested after the
water recedes
A typical method for casting flooded field rice growing is as follows:
Land preparation - A leveled, flat landbed is surrounded by side earth walls, for
water control. Then, the surrounded field is flooded until the water level is approximately
1-2 cm high and allowed to sit for a few days. The source of water could come from
natural rainfall, cannels, or a well
Seed preparation - Separate from the prepared ricefield, paddy seeds are soaked
overnight. The next morning, the seeds are drained and allowed to rest for a few days.
The seed will sprout. (Seed preparation and land preparation are done at the same time.)
Plowing - After the prepared land has been allowed to sit for a few days, it is now
ready for plowing. Farmers could plow the ricefield either by using modern machinary or
using animal labor (i.e. water buffaloes). Plowing is necessary to eliminate weed that
could grow overnight in the flooded field, without using chemicals. Moreover, plowing
also signifies the beginning of the rice growing cycle.
Casting - Immediately after plowing, rice sprouts are transferred to the plowed
field. This transferring method is called casting. In Thailand, hand casting by an
experienced farmer is preferred, in order to produce even rows of casting.
Resting - After casting, rice sprouts will mature to young plants in a few days.
Water is then drained into the field until its level reaches that of the lowest leaves on the
rice plant; however, the water level must not exceed 2-3 cm high. For the next 3-4
months, rice plants will be left to grow into paddy and turn lightbrown in color. In the
mean time, the rice field remains constantly flooded.
Draining - Once the rice paddy turns light brown, water is drained, and the field
is left to dry.
Harvest - After the drained field is completely dry, and the plant turns to hay
color, the paddy is harvested either by a sickle or a machine.
History of thai Hom Mari Rice

There are two varieties of Thai Hom Mail Rice have been grown in Thailand.
Only this two varieties are expot to the world market and called Thai Hom Mali Rice.
They are Khao Dawk Mail 105 and RD 15. The name and number after name has their
meaning and history. However, these two varieties are relative and closely characters.
In 1950 – 1951, Department of Rice has policy of rice varieties improvement for
selecting the outstanding varieties of Thai rice. The purpose was to produce the good
quality rice for consumption and commercial. Mr. Sunthorn SiHaNuen, one of the
government official, went to the eastern part of Thailand and collected the rice panicles.
He can collected 199 panicles of different names of rice varieties. All panicles have been
labeled in number and sent to Khoksamrong Rice Research Station. They have been
selected for pure line seeds and multiplied seed for distribute to the stations.
In 1957, the pure line seed of Hom Mail rice have been sent to trial in the different
regions of Thailand. It was found that the soil and environment of North Eastern part of
Thailand has responded to produce the good quality rice production. And the number of
105 (one hundred and five) is the best quality in shape, transparent aroma and cooking
quality compared to the quality rice the original.
In 1959, Hom Mali rice number 105 had announced to be the certified rice varieties
from Department of Rice in the name of Khao Dawk Mali 105 in 25 of May, 1959. First
of all, it has name Khao Dawk Mali 4-2-105 which all number have meaning, 4 means
Amphor Bangkla, the location of panicles have been collected, 2 means the name of rice
varieties has been collected at the same location, and 105 means the number of panicles
have been collected in the same.
Khao Dawk Mali 105 has bloomed in Lopburi for several years. Then it has been
conduct to the North Eastern part of Thailand,Burirum, Surin , Srisakhet, Roi-Ed,
Yasothorn and Mahasarakham, by the government support for yield trial in farmers‘ field.
Due to the huge advertising for promotion of this Thai aromatic rice in this part of
Thailand, Thai Hom Mali Rice been Known in the world.
The North Eastern(NE) area of Thailand has the specific geography which different
from the others regions of Thailand. The lowest soil fertility is in this area. Drought
occurs in the early and middle season of crop planting. It is also has land flooding in
August or September in mostly every years. This land has the layer of rock salt under the
planting soil surface. In the hit period of dry season, you can see the white salt patch on
the soil surface,
Jasmine rice
(Thai; kao hom mali), sometimes known as Thai fragrant rice, is a long-grain variety of
rice that has a nutty aroma and a subtle and pandan-like flavor caused by 2-acetyl-1-
pyrroline[1]. Jasmine rice is originally from Thailand. The grains will cling when cooked,
though it is less sticky than other rice as it has less amylopectin. Not all
importedrice labeled as jasmine is a good grade of the rice. Good quality jasmine rice,
when properly steamed, retains a wonderful fragrant aroma and delicious chewy texture
so tasty. Even in Thailand, where this aromatic rice originated, the quality can vary
considerably depending on where it is grown. The northeastern region of the country
has the ideal combination of soil and climatic conditions to produce the best-tasting, most
fragrant rice. Commonly named Fragrant Pandan / Screwpine Leaf/Leaves. These
fragrant leaves are used for flavouring desserts, cakes and. Leaves are also used for
wrapping meat or fish before frying, baking or grilling for added fragrance and taste.
2. Situation of Industry
Im-Tub commodity was established in 2008 by the Thai people who have same
ideology and ate Thai rice since beginning to current. Rice is the one of four requisites
which we think that it is very importance and we can't live if without rice. Therefore, we
think that we will produce the quality rice for Thai people and export to the foreign
countries. Nowadays, we have more competitors in the market, so we should consider
about the different of goods and turned to look at people who interest to health, and
produce rice by set the name as Im-Erb which it is famous and known by Thai people.
At this time, Im-Tub commodity covers the complete of rice production since
production, seed selecting, processing, quality adjustment, packaging, and sale which we
want to response with the demand of healthy rice‘s consumption both within the country
and the foreign countries.
Rice Environment
Rice Growing Constraints
Static yields and labor shortages during peak growing seasons constitute two of
the major constraints in Thailand's rice production. In the past few decades, rural rice
growers migrate to the Bangkok metropolitan area to find jobs. During the low season,
this mass migration into the city may benefit the rural families in terms of higher
household income. However, when the peak rice growing season arrives, labor shortage
will occur as a result of this mass migration
Furthermore, the soil and climate conditions also contribute to the rice growing
constraints. Some of the problems include:
- Inconsistent rainfalls, such as instant draughts and floods
- Poor soil, such as saline and sulfate soil problems
- Climate problems, such as low temperature in some cultivated area
- Diseases and pests
For rice production development, on-going researches are being conducted in
various areas, such as productivity, precipitation, growing environment, rice pests &
diseases, and other related areas.
Increasing Yield
An efficient irrigation system is the heart of rice growing because a rice field is
generally susceptible to unpredictable climate and weather conditions. These
environmental factors sometimes produce flash floods or droughts, which could prevent
the rice from reaching its natural yield. An advanced irrigation system will alleviate this
unpredictability of nature by controlling the inflow and outflow of water from the field.
Developing hybrid rice for the tropics provides another alternative to increasing the rice
yield, according to The International Rice Research Institute (www.riceweb.org). This
research suggests that rice hybrids yield about 20% higher than do inbred rice.
Using fertilizer could also increase the rice yield. In Asian region, where the
environmental factors are most suitable for growing, farmers use fertilizers in optimal
amounts. According to the report of the International Rice Research Institute, applying
fertilizer could increase the yield between 0.4% to 1.8%.
Rice in Thailand
Thailand is one of the world's biggest rice producers, with paddy output of 27
million tons in 2003. Thailand is also the world's biggest rice exporter: annual shipments
are worth more than $2,000 million and reached 7.5 million tons in 2003. Its main export
markets are Indonesia, Nigeria, Iran, the United States and Singapore.
Thailand's success in the international rice trade is due to its high quality, long-
grain white rice, which has a substantial price advantage over lower grades. This
emphasis on grain quality is also the main reason for Thai farmers' limited adoption of
modern, high-yielding rice varieties.
Rice is grown on some 10 million ha of land and in all provinces of the country.
More than half of the total rice area is in the northeast, although the Central Plains is
known as the nation's "rice bowl". About 25% of rice lands are irrigated, while the rest is
still rain fed.
Rice farmers are generally subsistence farmers, selling only their excess
production. The main surplus is produced in the central region. Transplanting is the
dominant method of crop establishment for rain fed lowland and irrigated rice in the
northern and north-eastern regions. In the central region, the seeding of pre-germinated
seed in wet soils has increasingly replaced transplanting in irrigated rice production in
order to cut costs.
Thai cuisine is considered among the world's most delicious, with a unique blend
of hot, sour and sweet tastes. The country's famously fragrant rice is always an essential
accompaniment.
Rice-Growing in Thailand
Over 80% of Thai people eat rice as their main meal. The average per capita
consuming rate is approximately 165 kilogram paddy or 109 kg milled rice per year. The
history of rice growing in Thailand dated many years back since rice has long been the
major source of food for Thai people for a long time. Presently, there are 63 million rai of
rice cultivated area (main season rice and second season rice) producing approximately
22 million tons of paddy.
Evidences showing that rice has been grown for a long time in Thailand are the
marks of husk found in graves or marks of hull inside bricks at ancient buildings. The
evidences could be categorized into the pre-historic period and the historic period
The oldest evidences of the pre-historic period are marks of hull in broken pieces
of pottery utensils found at Ban Nonnokta, Tambon Ban Gawk, Amphoe Phuwiang, Khan
Kaen Province; and evidences of rice grain found in Cave Pung Hung, Mae Hong Son
Province. The estimated age of hull imprints in pottery utensils found at Banchiang,
Udornthani Province is 5,500 years old. These evidences showed that rice was grown in
these areas at least 5,000 years ago.
Evidences of historic period such as hull in bricks in ancient buildings indicated
that rice-growing in Thailand started since the 6th century. It is presumed that round grain
glutinous rice and large grain glutinous upland rice were grown originally and later were
substituted by slender type grain of non-glutinous rice.
Varieties of rice cultivar in Thailand have stabilized nutrient for Thai people and
economic wealth of the country to date. Dr. Bhakdi Lusananda, former Director General
of Department of Agriculture and an expert on rice, once said about the development of
rice and rice-growing that renders the country's wealth as follows:
"It is greatly fortunate that King Ramkamhaeng the Great led Thai people to
establish the Kingdom of Thailand in the year BE 1800 in the central part of
Suwannabhum. Thailand has progressed consequently to be Thailand of the present time.
Thai people are very fortunate because this part of the country is the origin of rice whose
scientific name is Oryza sativa Linn. Marks of paddy on 6,000 year-old ancient utensils
found in the Northeastern region are technical proofs. Various parts of 12,000 year-old
rice were also found in caves near Burmese border: All through this long period of time
wild rice had been developed by natural phenomena and by human selection and become
one of the world's most important crops. Thailand is therefore the fertilized source of rice
variety. There are rice varieties that can grow well at sea and mountain level, in the dry
mountainous region and more than 5 meters deep water, in sand-soil and clay. They have
different maturing dates of early, medium, and late. There are rice varieties that grow
throughout the year:"
White Rice Quotes
Items 13 Jan 6 Jan 10 23 Dec 16 Dec 9 Dec 09
10 09 09
Thai Hom Mali Rice Grade A (crop $1119 $1116 $1113 $1116 $1116
year 2008/09)
Thai Hom Mali Rice Grade A (crop $1024 $1021 $1018 $1006 $1006
year 2009/10)
Thai Hom Mali Broken Rice A.1 $478 $493 $491 $493 $493
Super
Thai Pathumthani Fragrant Rice $851 $864 $861 $864 $864
White Rice 100% Grade B $609 $607 $590 $622 $638
White Rice 5% $577 $576 $559 $592 $607
White Rice 25% $505 $508 $487 $502 $505
White Broken Rice A.1 Super $422 $437 $405 $406 $391
White Glutinous Rice 10% $779 $777 $774 $777 $777
Parboiled Rice Quotes

Parboiled Rice 100% $624 $622 $605 $622 $638
Unit : USD per MT ( milled rice ) - FOB prices
NQ = No Quote
Processed rice products: adding value to rice production.

Rice is Thailand's key crops for years. And product exports by major rice
exporter, Thailand is the largest in the world, however, current production and export of
rice. Face several problems. The only problem of instability of price levels. And
competition from countries with lower production costs. A direct impact on rice farmers.
The rice processing industry. Is one way to help farmers. The increasing demand
for rice. To be used as raw materials for various products of rice processing. This value
added to rice production. This will increase export opportunities. And bring revenue to a
foreign currency. Processed rice products to its current form as many.
Rice bran oil is oil produced from raw rice bran oil. The extraction from rice
bran. Anti-free radicals are substances such as Vitamin E in the feed to when Tony Coe
and a group of approximately 19-40% Masters quarter Co. CEO 51-81% methanol and
Old San Marine Doll (Oryzanol) anti-free radicals, which can be better. Vitamin E up to 6
times with 18% saturated fatty acid Saturated fatty acids do not Echingedieiw.
(Monounsaturated Fatty Acid: MUFA) 45% saturated fatty acids is not complicated.
(Polyunsaturated Fatty Acid: PUFA) 37% rice bran oil is ideal for those who want to
lower bad cholesterol (LDL-C).
Semi-finished products such as rice porridge semi. Or a single type of rice in ice
water dish in the form of different strengths such as fried rice, etc. Currently these
products. Very popular. Especially in developed markets such as Japan, the European
Union and the United States.
In addition, the development of new products are rice, canned, which features
open to eat immediately. Also keep up to 2 years has innovative. The case of industrial
development, small business success. And recognized. From different countries. Canned
rice export markets in Europe and the Middle East, including the major rice canned. Also
received attention from the United Nations. Now under. Consideration to packaging to
project World Food Programme (WFP) to bring food to assist victims with the natural
world.
Snack products and breakfast currently processing a snack of rice are very
popular. Both domestic market and overseas markets. Especially among consumers.
Childhood and youth, however, competition in this industry. Quite severe. Because many
manufacturers also are processed rice products breakfast. Although not very popular
because the part manufacturer. Breakfast products. Typically cross business population. ิ
skilled. In the production of other materials such as wheat, corn potatoes.
Products from fermentation processes, fermentation-derived products,
including rice Kgawhmak Knmhin and alcohol products. In those industries. The only
Knmhin. With industrial production. Most are small plants. Located in the communities.
Across all regions of the country also the product of rice fermentation process. Can also
be used. Components. In beer production. But there are limitations.
Noodles and Esgnhmie. The product. In addition to domestic consumption then.
Can also export sales abroad as well. Malaysia is an important export market, Japan is
now improving. Form product in a more semi Esgnhmie and noodles in a paste of rice
flour as well as development. By adding components. And nutrients that are nutritious as
meat and vegetables.
Thai sweets and candy. Confectionery products. From processing rice. Currently
has limited sales channels. Because most of these products. For household consumption.
And local sales. Thai dessert because it often does not keep time as well as consumers
turn to snack consumption. Market available to buy. In addition, multiple and easy dessert
has manufacturing process complicated. No exact formula to produce value-added and
less. Require production. Industry level. To reduce unit costs down, however, the current
began to develop. Thai dessert in the form of. Frozen products. With some consumers
already. Although not as widely used players.
3. Product/Service (in General)

Im-Erb special care is taken to make the packaging appealing, distinctive and
hygienic, as it improves the product image and attracts the customer, packed in various
different packing according to customer's preferences available in 1and5 kg. There are a
lot of product which are popular such as Im-Erb Co Q10 , Collagen , etc.
4. Vision
IM-TUB COMMODITIES is to be a leader in the rice for healthy in Thailand.
5. Mission
IM TUB Commoditiser‘s mission is to gain more profit of our company by attract
customer to buy IM-ERB jasmine rice which is the first product that difference form
others. And we have to do market analyze both of inside and outside country to do supply
then be supplied directly to the company that we had contact. Next when we success in
market and sale rate we haven‘t to forget to do CSR to the local that provide our material
[Rice] by cooperate with Thai Rice industry to develops Thai rice to be International level
while we help farmers and SMEs business in this field to growth and success in business
like our company.
6. Strategy
6.1 Corporate Level
We use market penetration strategy to expand the market share of our company by
use advertisement to persuade customer to interest in rice for healthy.
6.2 Business Level

We use the advantage of organization to useful and support strategy of company.
We use Focus Strategies for create difference. We are careful and emphasize on the health
of consumer is main factor and use strategy to gain competitive advantage.
We hire employee that have specialist knowledge to control quality of our
product.
6.3 Functional Level
6.3.1 Marketing strategy

Production - improve packaging to highest quality
strategy - analysis cost of production
- evaluate cost and price of competitive
- set the price from cost of production
Distribution - retail
strategy - wholesale
- online business
Promotion - packaging and sale in price special
strategy - create concept example : Thai wear, hip hop
6.3.2 Production strategy

Cost production - find the source that have quality and appropriate cost
to connect many distribution
- set number of product appropriate number of
production
- check number of product in order
Evaluate price - first in first out ―FIFO‖
inventory
6.3.3 Financial strategy

Management - find expert or specialist in this way only
system - train new employee and add experience to old employee
- put the evaluate system and internal control
- put main system example : finance, account receivable
and payable, inventory, asset, order and seller etc.
Chapter 3 Market Feasibility Study
1 Market Analysis
1.1 General Environment Analysis
Political
For about Political environment Thai government concern in the Rice industry
because it is the main export product they always provide issue to support Farmers and
for support situation about rice rate price. So, Our company doesn‘t worry about rice
prices because the government has specify rice prices so, it makes company control the
prices which is sell rice in the country and foreign and we will be a manufactures and
distributors under the government policy.
Economy
Now a day, Thai Economic had got affected form world economic situation but it
isn‘t took big damage because Rice is the main food that Thai people have to eat so, that
make the demand of Rice isn‘t change but customer make a decision to purchase Rice by
select which one that cheaper than others it is the affect of Economics. Rice is important
as exported product of Thailand. Our company can surely gain the profitability because
every Thai people and other also other countries in the world consume the rice all year
long.
Social:
For about Social we well know that on one who don‘t know rice because Rice is
stayed with Thai social for a long time. Our company is the one of Rice industry who
concern about Corporate Social responsibility because we think that it time that Thai Rice
have to develop In the part until now farmer who farm Rice is poor while Thai rice price
is up So, that mean intermediately still control rice price form farmer However Our
business tried to develop together with social.
Environment
From now on the world have the problem about global warming so our company
realize on the pollution and environment by don't use the chemical, toxic and the
insecticide.
Technology
Technology is important too much, because in now a day not only that power
with human therefore needs power of machine include too. In procedure to produce the
rice are using tractor and harvesting cart and much machinery. Those are replacing the
shortest of labor and increasing production activity.
1.2 Competition Analysis (3C Analysis)

Competitor Analysis
Thailand, the countries that produce rice, and organized memory are saturated
world's top operators make more revenue. But the company we are unique and special
than the other is from rice, we have standards in taste, aroma and price are key benefits of
consumer acceptance.
Customer Analysis
Consumers want to trade with high quality standards and pop as an acceptable
price. Therefore, consumers are interested in the products of our company; we are
bringing products to consumers with easy access and a product known to consumers as
well because we'll be continuous releases.
Competitive Analysis
Competition is also high, both within and outside the country. Because the
intermediaries who want the benefits of Great post and want organizations exploit
consumers, our company will need to consider a case, consumers have the cooperation
and support government policy to justice the most.
2. STP Analysis
2.1 Segmentation
Segmentation is very important for our business because it can help to identify our
target market. So, we segment by four factors are geographic, demographic,
psycolographic, and behavior that we can describe following;
Rule of market Characteristic of customer
segmentation
Geography People in Chiang Rai
People all North
People all Thailand
Demography
- Age 12 years up
18 years up
25 years up
- Gender Male
Female
2,000 baht up
- Income 5,000 baht up

10,000 baht up
1. Dealer
2. Supermarkets
- Status
3. Department Store
4. The people who live in the north
Psychology
- Lifestyle For healthy
For fashionable
For necessities of life
Behavior
- Purchased of product Per week
per month
per 3 month
per 6 month
per year
2.2 Target
Male and Female

Female
Department Store Supermarkets
People who
live in north For healthy
18 years up
Per month
People all North

Rai
2.3 Positioning
High Quality
ข้ าวโครงการหลวง
ข้ าวตราฉัตร
Non differentiate Differentiate
Low Quality
3. Marketing Mix Strategy
3.1 Product
Our product is rice coated with coenzyme Q10 and collagen, there are 2 types are
white rice and brown rice. We buy rice from rice-mill that have high quality and can
trusting. We have the processes that check contaminants such as Legend, Manganese,
Nickel, Copper, Mercury, Cadmium, Cobalt, Lead, and Zinc. Our products have high
standard that produce by use high technology. Im-Erb‘s rice has guaranteed from food
and drug administration (FDA). So, customer can be bound to safety product.
Packing
Our rice can divide into 2 sizes to offer to customer are 2 kg. and
5 kg. all of these are in vacuum packed, it can keep for 8 months. Our
product sale under ―Im-Erb‖ brand, we screen our logo on every package
of our product.
Branding
3.2 Price
Our product has high price more than general rice because we increase
coenzymeQ10 and collagen into product
type White rice Brown rice

size
2 kg. 249 baht 249 baht

3.3 Place
We have a shop locate opposite Big C supercenter. Address 14/1 Moo 25
Phahonyothin road Muang Chiang rai 57000. It is very close to the bus station. For the
telephone number is 053-123456, fax. 053-123455, and we design to put product in to the
supermarket in Thailand for example Big c supercenter, Carrefour, and Tesco lotus.
3.4 Promotion
We create our website is (www.Im-Tab.com) for promote and give product‘s
information to customer and it is one of channel that easy to contact us. For advertising,
we make brochure for dispense to customer and make poster to pin up to the board in
front of supermarket. And we will set booth in other festivals. In the first and second
month that we launch new product our promotion is ―buy 1 get 1 free‖
The Quarter 1 January – March

The Quarter2 April – June
The Quarter 3 July - September
The Quarter 4 August – December
Activity Quarter 1 Quarter 2 Quarter 3 Quarter 4

Month 1 2 3 4 5 6 7 8 9 10 11 12
1. set the display
2. leaflet (the exhibition
to show the product)
3. radio advertisement
4.booth
We create the web site of our company which all customers can see and know the
information about us and we also have an E-mail that the customer can send the question
and we can answer quickly as well.
- Web registers 5,500 Baht / one
time
- Leaflet 10,000 pieces 5,000 Baht / year
- Advertisement 3,000 Baht / year
- Radio advertisement for give information of coenzyme Q10 and collagen 3,900 Baht / year
- Utilities expense 1,500 Baht / year
- Web site expense 500 Baht / time
- set the display 3,000 Baht / year
Expense before investment

Description expense
1. Fee for register company 9,400
2. Fee for register with FDA 9,500
3. Fee for estimate asset from Bank 25,000
Total 43,900
4. Sales Forecast/Profit Estimation
Display tables predict of the benefit (predict income 5 years)

Sale forecast Year 1
Size 2Kg. Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total
Price(baht) 249 249 249 249 249 249 249 249 249 249 249 249
Amount 1,275 1,275 1,275 1,275 1,275 1,275 1,275 1,275 1,275 1,275 1,275 1,275 15,300
total sales 317,475 317,475 317,475 317,475 317,475 317,475 317,475 317,475 317,475 317,475 317,475 317,475 3,809,700
Price(baht) 619 619 619 619 619 619 619 619 619 619 619 619
Amount 510 510 510 510 510 510 510 510 510 510 510 510 6,120
total sales 315,690 315,690 315,690 315,690 315,690 315,690 315,690 315,690 315,690 315,690 315,690 315,690 3,788,280
Sale forecast Year 1 (sell on cash-sell on credit)

Description Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total
Size 2 kg. 317,475 317,475 317,475 317,475 317,475 317,475 317,475 317,475 317,475 317,475 317,475 317,475 3,809,700
Size 5kg. 315,690 315,690 315,690 315,690 315,690 315,690 315,690 315,690 315,690 315,690 315,690 315,690 3,788,280
total sales 633,165 633,165 633,165 633,165 633,165 633,165 633,165 633,165 633,165 633,165 633,165 633,165 7,597,980
on cash 316,583 316,583 316,583 316,583 316,583 316,583 316,583 316,583 316,583 316,583 316,583 316,583 3,798,990 1
on credit 316,583 316,583 316,583 316,583 316,583 316,583 316,583 316,583 316,583 316,583 316,583 316,583 3,798,990 1
Estimate cash receive from sales Year 1

Sell on cash 316,583 316,583 316,583 316,583 316,583 316,583 316,583 316,583 316,583 316,583 316,583 316,583 3,798,990
Receive in next month 158,291 158,291 158,291 158,291 158,291 158,291 158,291 158,291 158,291 158,291 158,291 1,741,204 50%receive
Receive in next 2 month 94,975 94,975 94,975 94,975 94,975 94,975 94,975 94,975 94,975 94,975 949,748 30%receive
Receive in next 3 month 47,487 47,487 47,487 47,487 47,487 47,487 47,487 47,487 47,487 427,386 15%receive
Receive in next 4 month 15,829 15,829 15,829 15,829 15,829 15,829 15,829 15,829 126,633 5%receive
Total cash receive 316,583 474,874 569,849 617,336 633,165 633,165 633,165 633,165 633,165 633,165 633,165 633,165 7,043,961
There are 17 provinces in North of Thailand
we estimate to sale 10kg./day/province

Price(baht) 249 249 249 249 249 249 249 249 249 249 249 249
Amount 1,913 1,913 1,913 1,913 1,913 1,913 1,913 1,913 1,913 1,913 1,913 1,913 22,956
total sales 476,337 476,337 476,337 476,337 476,337 476,337 476,337 476,337 476,337 476,337 476,337 476,337 5,716,044
Price(baht) 619 619 619 619 619 619 619 619 619 619 619 619
Amount 765 765 765 765 765 765 765 765 765 765 765 765 9,180
total sales 473,535 473,535 473,535 473,535 473,535 473,535 473,535 473,535 473,535 473,535 473,535 473,535 5,682,420

Size 2 kg. 476,337 476,337 476,337 476,337 476,337 476,337 476,337 476,337 476,337 476,337 476,337 476,337 5,716,044
Size 5kg. 473,535 473,535 473,535 473,535 473,535 473,535 473,535 473,535 473,535 473,535 473,535 473,535 5,682,420
total sales 949,872 949,872 949,872 949,872 949,872 949,872 949,872 949,872 949,872 949,872 949,872 949,872 11,398,464
on cash 474,936 474,936 474,936 474,936 474,936 474,936 474,936 474,936 474,936 474,936 474,936 474,936 5,699,232 50%
on credit 261,485 261,485 261,485 261,485 261,485 261,485 261,485 261,485 261,485 261,485 261,485 261,485 3,137,820 50%

Sell on cash 261,845 261,845 261,845 261,845 261,845 261,845 261,845 261,845 261,845 261,845 261,845 261,845 3,142,140
Receive in next month 158,291 130,923 130,923 130,923 130,923 130,923 130,923 130,923 130,923 130,923 130,923 130,923 1,598,439 50%receive
Receive in next 2 month 94,975 94,975 78,554 78,554 78,554 78,554 78,554 78,554 78,554 78,554 78,554 78,554 975,485 30%receive
Total cash receive 578,428 551,059 534,638 526,427 523,690 523,690 523,690 523,690 523,690 523,690 523,690 523,690 6,380,071

Price(baht) 249 249 249 249 249 249 249 249 249 249 249 249
Amount 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550 30,600
total sales 634,950 634,950 634,950 634,950 634,950 634,950 634,950 634,950 634,950 634,950 634,950 634,950 7,619,400
Price(baht) 619 619 619 619 619 619 619 619 619 619 619 619
Amount 1,020 1,020 1,020 1,020 1,020 1,020 1,020 1,020 1,020 1,020 1,020 1,020 12,240
total sales 631,380 631,380 631,380 631,380 631,380 631,380 631,380 631,380 631,380 631,380 631,380 631,380 7,576,560

Size 2 kg. 634,950 634,950 634,950 634,950 634,950 634,950 634,950 634,950 634,950 634,950 634,950 634,950 7,619,400
Size 5kg. 631,380 631,380 631,380 631,380 631,380 631,380 631,380 631,380 631,380 631,380 631,380 631,380 7,576,560
total sales 1,266,330 1,266,330 1,266,330 1,266,330 1,266,330 1,266,330 1,266,330 1,266,330 1,266,330 1,266,330 1,266,330 1,266,330 15,195,960
on cash 633,165 633,165 633,165 633,165 633,165 633,165 633,165 633,165 633,165 633,165 633,165 633,165 7,597,980 59%
on credit 633,165 633,165 633,165 633,165 633,165 633,165 633,165 633,165 633,165 633,165 633,165 633,165 7,597,980 50%

Sell on cash 633,165 633,165 633,165 633,165 633,165 633,165 633,165 633,165 633,165 633,165 633,165 633,165 7,597,980
Receive in next 2 month 78,554 78,554 189,950 189,950 189,950 189,950 189,950 189,950 189,950 189,950 189,950 189,950 2,056,602 30%receive
Total cash receive 895,010 1,080,670 1,192,066 1,247,764 1,266,330 1,266,330 1,266,330 1,266,330 1,266,330 1,266,330 1,266,330 1,266,330 14,546,150

Price(baht) 249 249 249 249 249 249 249 249 249 249 249 249
Amount 3,188 3,188 3,188 3,188 3,188 3,188 3,188 3,188 3,188 3,188 3,188 3,188 38,256
total sales 793,812 793,812 793,812 793,812 793,812 793,812 793,812 793,812 793,812 793,812 793,812 793,812 9,525,744
Price(baht) 619 619 619 619 619 619 619 619 619 619 619 619
Amount 1,275 1,275 1,275 1,275 1,275 1,275 1,275 1,275 1,275 1,275 1,275 1,275 15,300
total sales 789,225 789,225 789,225 789,225 789,225 789,225 789,225 789,225 789,225 789,225 789,225 789,225 9,470,700

Size 2 kg. 793,812 793,812 793,812 793,812 793,812 793,812 793,812 793,812 793,812 793,812 793,812 793,812 9,525,744
Size 5kg. 789,225 789,225 789,225 789,225 789,225 789,225 789,225 789,225 789,225 789,225 789,225 789,225 9,470,700
total sales 1,583,037 1,583,037 1,583,037 1,583,037 1,583,037 1,583,037 1,583,037 1,583,037 1,583,037 1,583,037 1,583,037 1,583,037 18,996,444
on cash 791,519 791,519 791,519 791,519 791,519 791,519 791,519 791,519 791,519 791,519 791,519 791,519 9,498,222 50%
on credit 791,519 791,519 791,519 791,519 791,519 791,519 791,519 791,519 791,519 791,519 791,519 791,519 9,498,222 50%
Sell on cash 791,519 791,519 791,519 791,519 791,519 791,519 791,519 791,519 791,519 791,519 791,519 791,519 9,498,222
Total cash receive 1,424,684 1,503,860 1,551,366 1,575,119 1,583,037 1,583,037 1,583,037 1,583,037 1,583,037 1,583,037 1,583,037 1,583,037 18,719,325


Price(baht) 249 249 249 249 249 249 249 249 249 249 249 249
Amount 3,825 3,825 3,825 3,825 3,825 3,825 3,825 3,825 3,825 3,825 3,825 3,825 45,900
total sales 952,425 952,425 952,425 952,425 952,425 952,425 952,425 952,425 952,425 952,425 952,425 952,425 11,429,100
Price(baht) 619 619 619 619 619 619 619 619 619 619 619 619
Amount 1,530 1,530 1,530 1,530 1,530 1,530 1,530 1,530 1,530 1,530 1,530 1,530 18,360
total sales 947,070 947,070 947,070 947,070 947,070 947,070 947,070 947,070 947,070 947,070 947,070 947,070 11,364,840

Size 2 kg. 952,425 952,425 952,425 952,425 952,425 952,425 952,425 952,425 952,425 952,425 952,425 952,425 11,429,100
Size 5kg. 947,070 947,070 947,070 947,070 947,070 947,070 947,070 947,070 947,070 947,070 947,070 947,070 11,364,840
total sales 1,899,495 1,899,495 1,899,495 1,899,495 1,899,495 1,899,495 1,899,495 1,899,495 1,899,495 1,899,495 1,899,495 1,899,495 22,793,940
on cash 949,748 949,748 949,748 949,748 949,748 949,748 949,748 949,748 949,748 949,748 949,748 949,748 11,396,970 50%
on credit 949,748 949,748 949,748 949,748 949,748 949,748 949,748 949,748 949,748 949,748 949,748 949,748 11,396,970 50%

Sell on cash 949,748 949,748 949,748 949,748 949,748 949,748 949,748 949,748 949,748 949,748 949,748 949,748 11,396,970
Total cash receive 1,741,266 1,820,381 1,867,849 1,891,584 1,899,495 1,899,495 1,899,495 1,899,495 1,899,495 1,899,495 1,899,495 1,899,495 22,517,039
Purchase Rice forecast (pay on cash-on credit) Year 1

Cost of
rice(baht/sack) 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 37,884
Total purchase(sack) 204 204 204 204 816
Total purchase(kg.) 20,400 20,400 20,400 20,400 81,600
Total (baht) 702,576 702,576 702,576 702,576 2,810,304
pay on cash 351,288 351,288 351,288 351,288 1,405,152 1
pay on credit 351,288 0 351,288 0 0 0 351,288 351,288 1,405,152 1
Price at 25 Dec. 2009 from Thai Rice Mills Association
3444 baht per 100kg.(1 sack)
Estimate account payable for purchase rice Year 1

pay on cash 351,288 351,288 351,288 351,288 1,405,152
Pay in next month 175,644 175,644 175,644 175,644 526,932 50%
Pay in next 2 month 105,386 105,386 105,386 316,159 30%
Pay in next 3 month 70,258 70,258 70,258 210,773 20%
total cash paid 351,288 175,644 456,674 245,902 31,616 70,258 351,288 175,644 105,386 70,258 351,288 175,644 2,385,246
Inventory Year 1
Description Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
Inventory (kg.) 20,400 15,300 10,200 25,500 20,400 15,300 10,200 25,500 20,400 15,300 10,200 25,500
cost per kg 34 34 34 34 34 34 34 34 34 34 34 34
Total (baht) 702,576 526,932 351,288 878,220 702,576 526,932 351,288 878,220 702,576 526,932 351,288 878,220

Cost of rice(baht/sack) 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444
Total purchase(sack) 230 230 230 230 920
Total (baht) 792,120 792,120 792,120 792,120 3,168,480
pay on cash 396,060 396,060 396,060 396,060 1,584,240 50%
pay on credit 396,060 396,060 396,060 396,060 1,584,240 50%

pay on cash
105,386 396,060 396,060 396,060 396,060 1,584,240
Pay in next month 70,258 198,030 198,030 198,030 594,090 50%
Pay in next 2 month 118,818 118,818 118,818 356,454 30%
Pay in next 3 month 79,212 79,212 79,212 237,636 20%
total cash paid 105,386 70,258 396,060 198,030 118,818 475,272 198,030 118,818 475,272 198,030 118,818 475,272 2,772,420
Inventory Year 2
Inventory (kg) 25,500 17,850 10,200 25,500 17,850 10,200 25,500 17,850 10,200 25,500 17,850 10,200
Cost per kg 34 34 34 34 34 34 34 34 34 34 34 34
Total 878,220 614,754 351,288 878,220 614,754 351,288 878,220 614,754 351,288 878,220 614,754 351,288
Cost of
rice(baht/sack) 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 34,440
Total purchase(sack) 306 306 306 306 1,224
Total (baht) 1,053,864 1,053,864 1,053,864 1,053,864 4,215,456
pay on cash 526,932 526,932 526,932 526,932 2,107,728 50%
pay on credit 526,932 526,932 526,932 526,932 2,107,728 50%

pay on cash
526,932 526,932 526,932 526,932 2,107,728
Pay in next month 198,030 263,466 263,466 263,466 263,466 988,428 50%
Pay in next 2 month 118,818 158,080 158,080 158,080 158,080 593,057 30%
Pay in next 3 month 79,212 105,386 105,386 105,386 395,371 20%
total cash paid
724,962 382,284 237,292 632,318 263,466 158,080 632,318 263,466 158,080 632,318 263,466 158,080 4,084,584
Inventory Year 3
Description Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.
Inventory 40,800 30,600 20,400 40,800 30,600 20,400 40,800 30,600 20,400 40,800 30,600 20,400
Cost per kg 34 34 34 34 34 34 34 34 34 34 34 34
Total 1,405,152 1,053,864 702,576 1,405,152 1,053,864 702,576 1,405,152 1,053,864 702,576 1,405,152 1,053,864 702,576

Cost of rice(baht/sack) 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444
Total (baht) 1,319,052 1,319,052 1,319,052 1,319,052 5,276,208
pay on cash 659,526 659,526 659,526 659,526 2,638,104 1
pay on credit 659,526 659,526 659,526 659,526 2,638,104 1

pay on cash 659,526 659,526 659,526 659,526 2,638,104
Pay in next month 105,386 329,763 329,763 329,763 329,763 1,094,675 1
Pay in next 2 month 197,858 197,858 197,858 197,858 593,573 0
Pay in next 3 month 131,905 131,905 131,905 395,716 0
total cash paid 764,912 329,763 197,858 791,431 329,763 197,858 791,431 329,763 197,858 791,431 329,763 197,858 4,722,068
Inventory Year 4
Inventory (kg) 58,700 45,950 33,200 58,700 45,950 33,200 58,700 45,950 33,200 58,700 45,950 33,200
Cost per kg 34 34 34 34 34 34 34 34 34 34 34 34
Total 2,021,628 1,582,518 1,143,408 2,021,628 1,582,518 1,143,408 2,021,628 1,582,518 1,143,408 2,021,628 1,582,518 1,143,408

Cost of rice(baht/sack) 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 3,444 34,440
Total (baht) 1,584,240 1,584,240 1,584,240 1,584,240 6,336,960
pay on cash 792,120 792,120 792,120 792,120 3,168,480 50%
pay on cradit 792,120 792,120 792,120 792,120 3,168,480 50%

pay on cash 792,120 792,120 792,120 792,120 3,168,480
Pay in next month 131,905 396,060 396,060 396,060 396,060 1,320,085 50%
Pay in next 2 month 237,636 237,636 237,636 237,636 712,908 30%
Pay in next 3 month 158,424 158,424 158,424 475,272 20%
total cash paid 924,025 396,060 237,636 950,544 396,060 237,636 950,544 396,060 2,376,363 950,544 396,060 237,636 7,815,472
Inventory Year 5
Inventory (kg) 63,900 48,600 33,300 64,000 48,700 33,400 64,100 48,800 35,500 64,200 48,900 33,600
Cost per kg 34 34 34 34 34 34 34 34 34 34 34 34
Total 2,200,716 1,673,784 1,146,852 2,204,160 1,677,228 1,150,296 2,207,604 1,680,672 1,222,620 2,211,048 1,684,116 1,157,184
Principle interest rate

฿ 7,000,000 12.00%
For the year 1 to 3 we do not pay principle but we must pay interest in monthly (condition of SME bank)
Principle and interest year 1
Description 1 2 3 4 5 6 7 8 9 10 11 12 Total
Principle 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000
Amortis 0 0 0 0 0 0 0 0 0 0 0 0
Interest 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 840,000
Total 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 840,000

Principle 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000
Amortis 0 0 0 0 0 0 0 0 0 0 0 0
Interest 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 840,000
Total 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 840,000

Principle 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000
Amortis 0 0 0 0 0 0 0 0 0 0 0 0
Interest 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 840,000
Total 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 840,000

Principle 7,000,000 6,900,000 6,800,000 6,700,000 6,600,000 6,500,000 6,400,000 6,300,000 6,200,000 6,100,000 6,000,000 5,900,000
Amortis 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 1,200,000
Interest 70,000 69,000 68,000 67,000 66,000 65,000 64,000 63,000 62,000 61,000 60,000 59,000 774,000
Total 170,000 169,000 168,000 167,000 166,000 165,000 164,000 163,000 162,000 160,000 159,000 158,000 1,971,000

Principle 5,800,000 5,700,000 5,600,000 5,500,000 5,400,000 5,300,000 5,200,000 5,100,000 5,000,000 4,900,000 4,800,000 4,700,000
Amortis 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 1,200,000
Interest 58,000 57,000 56,000 55,000 54,000 53,000 52,000 51,000 50,000 49,000 48,000 47,000 630,000
Total 158,000 157,000 15,600 155,000 154,000 153,000 152,000 151,000 150,000 14,900 148,000 147,000 1,555,500
Chapter 4 Technical Feasibility Study
1. Production and Operations Analysis
1.1 Product Characteristics

For white rice; the grains of Jasmine rice appear silky, smooth, and shiny. When
cooked, Jasmine rice produces an elegant aroma
For brown rice, similar to white rice, brown rice belongs to the Indica (long-grain)
category. The only difference between these two varieties is the milling; milling removes
both the husk and the bran layer of the kernel. Through the milling process, Brown rice
becomes White rice. As a result, in Brown rice, only the husk is removed while the bran
layer remains. Because of the brand layer, Brown rice contains more nutrients than White
rice. In particular, Brown rice is very high in fiber and vitamin B.
We use this 2 types of rice to produce our product when it become to finished goods
it has color same with the first time but there is crystal shimmery coated on rice.
Coenzyme Q10
Coenzyme Q10is a 1,4-benzoquinone, where Q refers to the quinine chemical
group, and 10 refers to the number of isoprene l chemical
This oil-soluble substance is present in most eukaryotic cells, primarily in the
mitochondria. It is a component of the electron transport chain and participates in aerobic
cellular respiration, generating energy in the form of ATP. Ninety-five percent of the
human body‘s energy is generated this way. Therefore, those organs with the highest
energy requirement such as the heart and the liver have the highest CoQ10 concentrations
Occurrence in nature Fresh tissue samples from both mackerel and herring found
the concentration of Coenzyme Q10 to be higher in the heart tissue (105-148 μg/g)
compared to concentrations found in the body tissue. The red tissue of mackerel
contained a higher concentration (67μg/g) of CoQ10 than the white tissue (15μg/g) whilst
in herring tissue the concentration was found to range between 15–24 μg/g. A small
seasonal variance in the concentrations of CoQ10 was observed in both fish.
Effect of heat cooking by frying reduces CoQ10 content by 14-32%
Collagen
Collagen is a group of naturally occurring proteins. In nature, it is found
exclusively in animals. It is the main protein of connective tissue. It is the most abundant
protein in mammals, making up about 25% to 35% of the whole-body protein content.
In muscle tissue it serves as a major component of endomysium. Collagen
constitutes 1% to 2% of muscle tissue, and accounts for 6% of the weight of strong,
tendinous muscles. Gelatin, which is used in food and industry, is derived from collagen.
The molecular and packing structures of collagen have eluded scientists for
decades; the first evidence that it possess a regular structure at the molecular level was
presented in the mid-1930s . Since that time many prominent scholars, including (but not
limited to) Nobel laureate Crick, Pauling, Rich, Yonath, Brodsky, Berman, and
Ramachandran concentrated on the conformation of the collagen monomer. Several
competing models although correctly dealing with the conformation of each individual
peptide chain, gave way to the triple-helical "Madras" model which provided an
essentially correct model of the molecule's quaternary structure although this model still
required some refinement. The packing structure of collagen has not been defined to the
same degree outside of the fibrillar collagen types, although it has been long known to be
hexagonal or quasi-hexagonal. As with its monomeric structure, several conflicting
models alleged that either the packing arrangement of collagen molecules is ‗sheet-like‘
or microfibrillar. Recently it was confirmed that the microfibrillar structure as described
by Fraser, Miller, Wess (amongst others) was closest to the observed structure, although it
over-simplified the topological progression of neighboring collagen molecules and hence
did not predict the correct conformation of the discontinuous D-periodic pentameric
arrangement termed simply: the microfibril.
Collagen is one of the long, fibrous structural proteins whose functions are quite
different from those of globular proteins such as enzymes. Tough bundles of collagen
called collagen fibers are a major component of the extracellular matrix that supports
most tissues and gives cells structure from the outside, but collagen is also found inside
certain cells. Collagen has great tensile strength, and is the main component of fascia,
cartilage, ligaments, tendons, bone and skin. Along with soft keratin, it is responsible for
skin strength and elasticity, and its degradation leads to wrinkles that accompany aging. It
strengthens blood vessels and plays a role in tissue development. It is present in the
cornea and lens of the eye in crystalline form. It is also used in cosmetic surgery and
burns surgery. Hydrolyzed collagen can play an important role in weight management, as
a protein, it can be advantageously used for its satiating power
Industrial uses If collagen is sufficiently denatured, e.g. by heating, the three
tropocollagen strands separate partially or completely into globular domains, containing a
different secondary structure to the normal collagen polyproline II (PPII), e.g. random
coils. This process describes the formation of gelatin, which is used in many foods,
including flavored gelatin desserts. Besides food, gelatin has been used in pharmaceutical,
cosmetic, and photography industries. From a nutritional point of view, collagen and
gelatin are a poor-quality sole source of protein since they do not contain all the essential
amino acids in the proportions that the human body requires—they are not 'complete
proteins' (as defined by food science, not that they are partially structured). Manufacturers
of collagen-based dietary supplements claim that their products can improve skin and
fingernail quality as well as joint health. However, mainstream scientific research has not
shown strong evidence to support these claims. ] Individuals with problems in these areas
are more likely to be suffering from some other underlying condition (such as normal
aging, dry skin, arthritis etc.) rather than just a protein deficiency.
From the Greek for glue, kolla, the word collagen means "glue producer" and refers to the
early process of boiling the skin and sinews of horses and other animals to obtain glue.
Collagen adhesive was used by Egyptians about 4,000 years ago, and Native Americans
used it in bows about 1,500 years ago. The oldest glue in the world, carbon-dated as more
than 8,000 years old, was found to be collagen—used as a protective lining on rope
baskets and embroidered fabrics, and to hold utensils together; also in crisscross
decorations on human skulls. Collagen normally converts to gelatin, but survived due to
the dry conditions. Animal glues are thermoplastic, softening again upon reheating, and
so they are still used in making musical instruments such as fine violins and guitars,
which may have to be reopened for repairs. An application incompatible with tough,
synthetic plastic adhesives, which are permanent. Animal sinews and skins, including
leather, have been used to make useful articles for millennia
Gelatin-resorcinol-formaldehyde glue (and with formaldehyde replaced by less-
toxic pentanedial and ethanedial) has been used to repair experimental incisions in rabbit
lungs
Medical uses The cardiac valve rings, the central body and the cardiac skeleton of
the heart summarily represent a unique and moving collagen anchor to the fluid
mechanics of the heart. Individual valvular leaflets are arguably held in shape by collagen
under great extremes of pressure. Calcium deposition within collagen occurs as a natural
consequence of aging. These fixed points in an otherwise static display of blood and
muscle enable current cardiac imaging technology to arrive at ratios essentially stating
blood in cardiac input and blood out cardiac output. Specified imaging such as calcium
scoring illustrates the utility of this methodology, especially in an aging patient subject to
pathology of the collagen underpinning
Collagen has been widely used in cosmetic surgery, as a healing aid for burn
patients for reconstruction of bone and a wide variety of dental, orthopedic and surgical
purposes. Some points of interest are
1. when used cosmetically, there is a chance of allergic reactions causing
prolonged redness; however, this can be virtually eliminated by simple and inconspicuous
patch testing prior to cosmetic use.
2. most medical collagen is derived from young beef cattle (bovine) from certified
BSE (Bovine spongiform encephalopathy) free animals. Most manufacturers use donor
animals from either "closed herds", or from countries which have never had a reported
case of BSE such as Australia, Brazil and New Zealand.
3. porcine (pig) tissue is also widely used for producing collagen sheet for a
variety of surgical purposes.
4. alternatives using the patient's own fat, hyaluronic acid or polyacrylamide gel
are readily available.
Collagens are widely employed in the construction of artificial skin substitutes

used in the management of severe burns. These collagens may be derived from bovine,
equine or porcine, and even human, sources and are sometimes used in combination with
silicones, glycosaminoglycans, fibroblasts, growth factors and other substances.
Collagen is also sold commercially as a joint mobility supplementBecause
proteins are broken down into amino acids before absorption, there is no reason for orally
ingested collagen to affect connective tissue in the body, except through the effect of
individual amino acid supplementation.
Recently an alternative to animal-derived collagen has become available.
Although expensive, this human collagen, derived from donor cadavers, placentas and
aborted fetuses, may minimize the possibility of immune reactions.
Although it cannot be absorbed through the skin, collagen is now being used as a
main ingredient for some cosmetic makeup.
1.2 Specification, Feathers, Dimension, Life Time, etc.

Im-Erb rice can keeping for 8 months under room temperature. After open should
eat up within 1 month.
Do not washing uncooked rice before cooking.
Caution : This product is not suitable for the people who intolerance with
coenzyme Q10 and collagen.
1.3 Production/Services Process
Feedback
Supermarket
Receiving
Checking Process Packing Customer
Storage
Storage Our shop
Step 1: Rice that receive to put into the process come from Chiang Rai province
Direct purchase from rice – mill in Chiang Rai, we emphasize on rice-mill
which near our company because it easy to transportation such as Kham Phon Rice –mill
co, ltd., Golden Harvest Rice –mill, and Chiang Rai Sirichai Rice –mill. If rice in Chiang
Rai out of stock we will purchase from the province nearly. A half or first year we must
pay for raw material in cash because we buy in small lot, so they cannot give credit for us
but for long time we can negotiate with rice –mill to buy in credit.
Step 2: Storage and check

Rice that we purchase from rice –mill we keep it in storage room and we
will keep sample to test contaminant use time about 24 hours.
Step 3: Process
First we will sort out another thing that mixes with rice such as gravel
because it can make problem happen with machine. After us certain rice is clear, we are
put rice into enamel machine to coated coenzyme Q10 and collagen. Machine will inject
coenzyme Q10 and collagen to coated rice and bake it until dry; all of process machine
make automatically don‘t take employee in this part.
Step 4: Packaging Process
After we finished to coated rice, we bring rice to measure in 1 kg. and 5
kg. after that we will pack by use vacuum closer machine to pack like a vacuum packed
and stick a label, logo of our company. And we keep finished goods in store to wait to
distribute to supermarkets and sale at the shop.
1.4 Location
We will concern with the environment source of raw material and the convenience
to distribution to be standard to consider establishing the company which we target to the
customers that have lifestyle to like the pats which our company use leasing about 1.8 rai
and our company locate adjoin with the main street for make people can see and know us
and we think the communication and distribution will be convenience when we locate
close the main street which it can be the useful for us as follow
1. It‘s easy to distribution
2. a lot of cars pass all the time
3. It‘s near to retailer shop
4. The customer can come and buy at factory.
14/1 Moo 25 Phahonyothin road Muang Chiang rai 57000 it‘s close to the bus
station telephone 053-123456 fax 053-123455
IM-TUB
1.5 Facility Layout
1.6 Machine/Tools/ Equipments
Enamel machine Price: 450,000 Baht /One

Amount : 2
Total 900,000 Baht
PC Pac king Aid Corporation Price: 35,000Baht /One

Amount : 2
Total 70,000 Baht
Cut the tape Price :205 Baht /One

Amount : 3
Total 615 Baht

Price: 12 Baht /Kilo
Plastic Bag
Amount: 100
Total 1,200 Baht
Table Price:1,500 Baht /One

Amount: 3
Total 4,500 Baht
Computer Price :24,000 Baht

amount:5
Total 120,000 Baht
Pinter HP Business Inkjet 1000 Price : 22,500 Baht /One

Amount: 1
Total 22,500 Baht
Hot-Cool water machine Price : 3,900 Baht /One

Amount: 3
Total 11,700 Baht
Price : 1,900 Baht /One

Cash bill printer
Amount: 1
Total 1,900 Baht

Price: 29,900 Baht /One
Air conditional HITACHI
Amount :4
Total 119,600 Baht
Fax Price: 4,490 Baht /One t

Amount:1
Total 4,490 Baht
Telephone Price: 1,490 Baht

Amount: 5
Total 7,450 Baht
Coffee set Price: 1,798 Baht

Amount :2 Price: 980 Baht
Total 2,778 Baht
Calculator Price: 250 Baht

Amount :5
Total 1,250 Baht
Plug, electronics, vinser Price: 150 Baht

Amount: 10
Total 1,500 Baht

The platform cuts the tap Price: 48 Baht
Amount: 8
Total 384 Baht
Adhesive "Louis" Price: 28 Baht

Amount: 3 pack
Total 84 Baht
Price: 26 Baht
Glue
Amount :3 pack
Total 78 Baht
Pierce paper Price: 220 Baht

Amount: 3
Total 660 Baht

Price: 57 Baht
Stapler
small amount: 5
Total 285 Baht
Shoot machine‖ HORSE‖ Price: 440 Baht

Amount: 3
Total 1,320 Baht

Price: 89 Baht
Seals "Horse"
Amount: 3
Total 267 Baht

Price:1,890 Baht
Office chair
Amount:5
Total 9,450 Baht

Office desk Price:2,990Baht
Amount:5
Total 14,950 Baht
Price: 9,900 Baht

Sofa
Amount :1
Total 9,900 Baht

Price: 490 Baht
Book chest
Amount :2
Total 980 Baht

Liquid papel "Pentel"
Amount :1 Price: 48 Baht
Price: 50 Baht
Pen
Amount :5
Total 290 Baht
Scissors Price: 70 Baht

amount :8
Total 560 Baht

Knife cutter "Horse"
amount :10 Price: 25 Baht
Total 250 Baht

file "Chiang brand" Price : 45 Baht
amount: 15
Total 675 Baht
paper copier ―double A‖ Price: 96 Baht / One

Amount:500 sheet per 1 pack
10 pack
Total 960 Baht

Total equipment 1,310,578
1.7 Logistics Management
Our company is the producer that require middleman to come and get the
products and extend route of market trough middleman mostly. Our product can be order
through web site. The company will send to customer by truck.
1.8 Facility Management
Budget project and source of fund

Source of fund
Description Liabilities Owner
Total(baht)
Account Bond
Payable
1. Current Fund
1.1 Cash for purchase the 3,950,000.00
goods 6,954,524.00 2,080,200
1.2 Cash for operation 2,000,000.00

-
5,950,000.00
Current Fund (1)
2. Permanent Asset -
2.1 Land 700,000.00

1,000,000.00 300,000.00
2.2 Building 350,000.00
500,000.00 150,000.00
2.3 Other
1,310,576.00
Total permanent asset (2) 2,810,576.00

3. Expense before
operation
3.1 Preparation expense 18,900.00 18,900.00
3.2 Long term asset right 216,000.00 216,000.00

Total expense before
operation 234,900.00 - - 234,900.00
Total cost of project 3,000,000.0

(1) + (2) + (3) 10,000,000.00 - 7,000,000.00 0
Liabilities ratio : 100% 70% 30%
Explain
The total cost of this project is about 10,000,000 baht. In the term of investment
we plan to use ratio 70:30 which it come from loan 70% about 7,000,000 baht, we take
this loan from SME bank; period of lone is not more than 15 years, interest rate is 12%
per year and there is grace period 3 year but must pay interest every month in 3 years and
we decide to pay within 8 to 9 year. And 30% is come from owner about 3,000,000 baht.
2. Management Analysis
Administration cost
Investment Amount Depreciation Annual Dep. Monthly Dep.
Land 1,000,000 0 0 0
Building 500,000 10 50,000 4,167
Car 452,000 10 45,200 3,767
Sofa 9,900 5 1,980 165
Desk 4,500 5 900 75
Book chest 980 5 196 16
Computer 120,000 8 15,000 1,250
Pinter HP Business Inkjet 22,500 5 4,500 375
Air conditional 119,600 6 19,933 1,661
Fax machine 4,490 5 898 75
Calculator 1,250 5 250 21
Telephone 7,450 5 1,490 124
Hot-Cool water machine 3,900 5 780 63
Cash bill printer 1,900 5 378 32
Plug 1,500 5 300 25
Coffee set 2,778 2 1,389 116
Glass 280 1 280 23
Small dustbin 425 1 425 35
Board 120 x 240 2,250 5 450 38
Board‘s pen 26 1 26 2
Big electric fan 2,290 3 763 64
Total 2,258,019 - 145,139 12,092
Other administration cost
5 years
No. Item 1 2 3 4 5
1 Salary of manager(3) 720,000 738,000 756,000 756,000 756,000
2 Salary of sale in shop(1) 96,000 114,000 120,000 120,000 120,000
3 Driver(1) 78,000 84,000 90,000 90,000 90,000
4 Housekeeper(1) 60,000 66,000 72,000 72,000 72,000
5 Security guard(1) 72,000 78,000 84,000 84,000 84,000
6 Utility expense(water) 1,800 1,800 1,800 1,800 1,800
7 Utility expense(electricity) 12,000 14,400 15,600 16,800 16,800
8 Utility expense(Telephone) 18,000 20,400 21,600 21,600 21,600
Total 1,057,800 1,116,600 1,161,000 1,162,200 1,162,200
Year 1
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total

1 Salary of manager(3) 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 720,000
2 Salary of sale in shop(1) 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 96,000
3 Driver(1) 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 78,000
4 Housekeeper(1) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
5 Security guard(1) 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 72,000
6 Utility expense(water) 150 150 150 150 150 150 150 150 150 150 150 150 1,800
7 Utility expense(electricity) 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
8 Utility expense(Telephone) 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000
88,150 88,150 88,150 88,150 88,150 88,150 88,150 88,150 88,150 88,150 85,500 85,500 1,057,800
Total
Year 2
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total

3 Driver(1) 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 84,000
4 Housekeeper(1) 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 66,000
5 Security guard(1) 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 78,000
7 Utility expense(electricity) 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400
8 Utility expense(Telephone) 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 20,400
Total 93,050 93,050 93,050 93,050 93,050 93,050 93,050 93,050 93,050 93,050 93,050 93,050 1,116,600
Year 3
No. Item
1 2 3 4 5 6 7 8 9 10 11 12 Total
3 Driver(1) 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 90,000
4 Housekeeper(1) 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 72,000
5 Security guard(1) 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 84,000
7 Utility 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 15,600
expense(electricity)
8 Utility 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 21,600
expense(Telephone)
Total 96,750 96,750 96,750 96,750 96,750 96,750 96,750 96,750 96,750 96,750 96,750 96,750 1,161,000
Year 4
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
3 Driver(1) 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 90,000
4 Housekeeper(1) 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 72,000
5 Security guard(1) 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 84,000
7 Utility 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 16,800
8 Utility 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 21,600
expense(Telephone)
96,850 96,850 96,850 96,850 96,850 96,850 96,850 96,850 96,850 96,850 96,850 96,850 1,162,200
Total
Year 5
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
3 Driver(1) 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 90,000
4 Housekeeper(1) 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 72,000
5 Security guard(1) 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 84,000
7 Utility 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 16,800
8 Utility 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 21,600
expense(Telephone)
96,850 96,850 96,850 96,850 96,850 96,850 96,850 96,850 96,850 96,850 96,850 96,850 1,162,200
Total
Assets use in production
Value Depreciation
Per
No. Assets (Baht) Year Per year month
1 Enamel machine 900,000 6 150,000 12,500
PC Packing Aid
2 Corporation 70,000 6 11,667 972
3 Cut the tape 615 3 205 17
4 Plug 450 3 150 13
5 Shoot machine 880 3 293 24
6 Chair 300 3 100 8
7 Weighing machine 2,400 5 480 40
Total 974,645 - 162,895 13,574
Manufacture or Other production expense variable

Year
No. Item 1 2 3 4 5
1 Plastic bag size 2kg-2฿ 30,600 45,900 61,200 76,512 91,800
2 Plastic bag size 5kg-5฿ 30,600 45,900 61,200 76,512 91,800
3 Coenzyme Q10-7฿ 428,400 321,300 428,400 535,500 642,600
4 Collagen -5฿ 306,000 229,500 306,000 382,500 459,000
Total 795,600 642,600 856,800 1,071,024 1,285,200
Year 1
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
1 Plastic bag size 2kg-2฿ 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550 30,600
3 Coenzyme Q10-7฿ 35,700 35,700 35,700 35,700 35,700 35,700 35,700 35,700 35,700 35,700 35,700 35,700 428,400
4 Collagen -5฿ 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 306,000
Total 66,300 66,300 66,300 66,300 66,300 66,300 66,300 66,300 66,300 66,300 66,300 66,300 795,600

Year 2
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
3 Coenzyme Q10-7฿ 26,775 26,775 26,775 26,775 26,775 26,775 26,775 26,775 26,775 26,775 26,775 26,775 321,300
4 Collagen -5฿ 19,125 19,125 19,125 19,125 19,125 19,125 19,125 19,125 19,125 19,125 19,125 19,125 229,500
Total 53,550 53,550 53,550 53,550 53,550 53,550 53,550 53,550 53,550 53,550 53,550 53,550 642,600
Year 3
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
3 Coenzyme Q10-7฿ 35,700 35,700 35,700 35,700 35,700 35,700 35,700 35,700 35,700 35,700 35,700 35,700 428,400
4 Collagen -5฿ 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 306,000
Total 71,400 71,400 71,400 71,400 71,400 71,400 71,400 71,400 71,400 71,400 71,400 71,400 856,800

Year 4
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
3 Coenzyme Q10-7฿ 44,625 44,625 44,625 44,625 44,625 44,625 44,625 44,625 44,625 44,625 44,625 44,625 535,500
4 Collagen -5฿ 31,875 31,875 31,875 31,875 31,875 31,875 31,875 31,875 31,875 31,875 31,875 31,875 382,500
Total 89,252 89,252 89,252 89,252 89,252 89,252 89,252 89,252 89,252 89,252 89,252 89,252 1,071,024
Year 5
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
3 Coenzyme Q10-7฿ 53,550 53,550 53,550 53,550 53,550 53,550 53,550 53,550 53,550 53,550 53,550 53,550 642,600
4 Collagen -5฿ 38,250 38,250 38,250 38,250 38,250 38,250 38,250 38,250 38,250 38,250 38,250 38,250 459,000
107,100 107,100 107,100 107,100 107,100 107,100 107,100 107,100 107,100 107,100 107,100 107,100 1,285,200
Total
Manufacture or other production expense variable
No. Item Year
1 2 3 4 5
1 Utility(electricity) 36,000 48,000 60,000 72,000 84,000
2 Utility(water) 2,400 3,600 3,600 3,600 3,600
Total 38,400 51,600 63,600 75,600 87,600

Year 1
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
1 Utility(electricity) 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
2 Utility(water) 200 200 200 200 200 200 200 200 200 200 200 200 2,400
Total 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 38,400

Year 2
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
2 Utility(water) 300 300 300 300 300 300 300 300 300 300 300 300 3,600
Total 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 51,600
Year 3
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
2 Utility(water) 300 300 300 300 300 300 300 300 300 300 300 300 3,600
Total 5,300 5,300 5,300 5,300 5,300 5,300 5,300 5,300 5,300 5,300 5,300 5,300 63,600

Year 4
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
2 Utility(water) 300 300 300 300 300 300 300 300 300 300 300 300 3,600
Total 6,300 6,300 6,300 6,300 6,300 6,300 6,300 6,300 6,300 6,300 6,300 6,300 75,600

Year 5
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
2 Utility(water) 300 300 300 300 300 300 300 300 300 300 300 300 3,600
Total 7,300 7,300 7,300 7,300 7,300 7,300 7,300 7,300 7,300 7,300 7,300 7,300 87,600
Wage in part of production
No. Item Year
1 2 3 4 5
1 Salary of employee(5) 390,000 420,000 450,000 450,000 450,000
2 Salary of Production manager(1) 240,000 246,000 252,000 252,000 252,000
Total 630,000 666,000 702,000 702,000 702,000

Year 1
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
1 Salary of employee(5) 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 390,000
2 Salary of Production 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 240,000
manager(1)
Total 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 630,000

Year 2
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
2 Salary of Production 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500 20,500
manager(1) 246,000
Total 55,500 55,500 55,500 55,500 55,500 55,500 55,500 55,500 55,500 55,500 55,500 55,500 666,000
Year 3
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
manager(1) 252,000
Total 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 702,000

Year 4
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
manager(1) 252,000
Total 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 702,000

Year 5
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
manager(1) 252,000
Total 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 702,000
Marketing expense 5 years
No. Item Year
1 2 3 4 5
1 5,500 5,500 5,500 5,500 5,500
Web registers
2 5,000 5,000 5,000 5,000 5,000
Leaflet 10,000 pieces
3 3,900 3,900 3,900 3,900 3,900
Radio advertisement
4 1,500 1,500 1,500 1,500 1,500
Utilities expense
5 1,000 1,000 1,000 1,000 1,000
Web site expense
6 3,000 3,000 3,000 3,000 3,000
set the display
7 36,000 36,000 36,000 36,000 36,000
Booth
Total 55,900 55,900 55,900 55,900 55,900
Marketing expense
Year 1
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
1 Web registers 5,500 5,500
2 Leaflet 10,000 pieces 1,250 1,250 1,250 1,250 5,000
3 Radio advertisement 3,900 3,900
4 Utilities expense 125 125 125 125 125 125 125 125 125 125 125 125 1,500
5 Web site expense 500 500 1,000
6 set the display 3,000 3,000
7 Booth 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Total 17,275 3,125 3,125 4,375 3,125 3,125 4,875 3,125 3,125 4,375 3,125 3,125 55,900
Marketing expense
Year 2
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
2 Leaflet 10,000 pieces 1,250 1,250 1,250 1,250 5,000
7 Booth 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Total 17,275 3,125 3,125 4,375 3,125 3,125 4,875 3,125 3,125 4,375 3,125 3,125 55,900
Marketing expense
Year 3
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
2 Leaflet 10,000 pieces 1,250 1,250 1,250 1,250 5,000
7 Booth 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Total 17,275 3,125 3,125 4,375 3,125 3,125 4,875 3,125 3,125 4,375 3,125 3,125 55,900
Marketing expense
Year 4
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
2 Leaflet 10,000 pieces 1,250 1,250 1,250 1,250 5,000
7 Booth 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Total 17,275 3,125 3,125 4,375 3,125 3,125 4,875 3,125 3,125 4,375 3,125 3,125 55,900
Marketing expense
Year 5
No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Total
2 Leaflet 10,000 pieces 1,250 1,250 1,250 1,250 5,000
7 Booth 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Total 17,275 3,125 3,125 4,375 3,125 3,125 4,875 3,125 3,125 4,375 3,125 3,125 55,900
Organization chat
Manager
Marketing manage Production manage Sale manage

Managing between the operation
The number and the characteristic of the human resource the Im-Tub Community
have worker in the company position and they will have difference duty,
Human team
1. Position Manager
2. Position Production manage

3. Position Marketing manage
4. Position Sale manage
5. Position Driver
6. Position Housekeeper
7. Position Security guard
The company has classification the salary rate of the employees following
The company will work on Monday until Friday however if there are the need of
product in the market such as on the high season or the festival the company will let the
employees work over the time (OT) after 4.00 pm. The employees can break for 1 hour
and then start work again at 5.00-8.00 pm. However working over the top can make the
employees tried and the efficiency of work will decrease, so the company will pay double
of rate payment for the employees who work over the top.
The position and the duty
1. Manager
Duty
- Check the document every department and signature for
any agreement
- Manage the organization to go to the goal and successful
with legal and agreement of the partners
- Control and concern with any other department manager to
get efficiency
- Working with vision and mission of the company
Qualify
- Man/woman age 25 up
- Ban choler degree up and have experience more than 2
years
- Computer skill and can use Microsoft Office such as Word,
Excel
- There are management skill and good relationship
Salary rate 20,000 Baht
2. Production manage
- Checking and control all about the operation system and
production process involve the machine
- Qualify specific general engineer

3. Marketing manage
- Design the product style to make the customers satisfy with
product
- Check the mistake and improve the product communicate

and negotiate with other suppliers
4. Sale manage (Sale in shop)

- Concern and prepare activity that matching with selling
product
- Define the place for the seller
- Analyze and estimate the result of the team and control

technical of selling motivate try the new thing to make the
customer interesting in the product by the team
- To be the consultant and suggest the team work to sell and

to service the customers
Salary rate 8, 000 Baht
5. Driver
- Male age 20-25 year
- Education background3 secondary educations up
- There is the responsibility in the duty
- Can drive a car 6 wheel - there is the license
Rate Salary 6,500 Bath
6. Housekeeper
7. Security guard
Note: The employee income within a company calculate per month
Im-Tub Community has manager and other 6 employees. The employees will have
to train first to get their experience and knowledge to ready for any work. Services are
important to the customers, so that the company has classification the worker to match
with their own ability.
Salary rate of worker per month
1. Manager 1 person 20,000 baht
2. Production manage 1 person 20,000 baht

3. Packaging 1 person 20,000 baht
4. Seller 1 person 8,000 baht
5. Driver 1 person 6,500 baht
6. Housekeeper 1 person 5,000 baht
7. Security guard 1 person 6,000 baht
Total baht
Chapter 5 Financial Analysis
1. Profit/ Loss Statement

IM-TAB COMMODITY
Income Statement
For the Year Ended December 31, 2010 – 2014
Description 2010 2011 2012 2013 2014
Revenue
Sales 7,597,980 11,398,464 15,195,960 18,996,444 22,793,940
Total revenue 7,597,980 11,398,464 15,195,960 18,996,444 22,793,940
Cost of Goods Sold
Materials 2,810,304 3,168,480 4,215,456 5,276,208 6,336,960
Other materials 795,600 642,600 856,800 1,071,024 1,285,200
Inventory 878,220 351,288 702,576 1,143,408 1,157,184
Direct labor 630,000 666,000 702,000 702,000 702,000
Total cost of goods sold 5,114,124 4,828,368 6,476,832 8,192,640 9,481,344
Gross Income 2,483,856 6,570,096 8,719,128 10,803,804 13,312,596
Operating Expenses
General & Administration 2,258,019
Other operation expenses 43,900
Advertising expense 55,900 55,900 55,900 55,900 55,900
Utilities expense 31,800 36,600 39,000 40,200 40,200
Salary expense 1,026,000 1,080,000 1,122,000 1,122,000 1,038,000
Depreciation 308,034 308,034 308,034 308,034 308,034
Total operating expenses 3,723,653 1,480,534 1,524,934 1,526,134 1,442,134
Net Income before

operations -1,239,797 5,089,562 7,194,194 9,277,670 11,870,462
Interest expense 840,000 840,000 840,000 774,000 630,000
Income (Loss) from
Continuing Operations
before Income Taxes -2,079,797 4,249,562 6,354,194 8,503,670 11,240,462
Income(loss) Before Income
taxes -2,079,797 4,249,562 6,354,194 8,503,670 11,240,462
Income tax expense 30% 0 1,274,869 1,906,258 2,551,101 3,372,139
Net Income (loss) for the
year -2,079,797 2,974,693 4,447,936 5,952,569 7,868,323
Retained earnings beginning
of year -1,699,825 1,274,869 5,722,804 11,675,373
Retained Earnings -2,079,797 1,274,869 5,722,804 11,675,373 19,543,697
2. Cash Flow
IM-TAB COMMODIT
Balance Sheet
For the Year Ended December 31, 2010 - 2014
Description 2010-11 2011-12 2012-13 2013-14
Cash Flows from Operating
Activities
Net Income -2,079,797 2,974,693 4,447,936 5,952,569
Adjusted by:
Depreciation Expense 308,034 308,034 308,034 308,034
Decrease in Accounts Receivable 7,040 -3,710,240 -2,272,933 -1,898,966
Decrease in Inventories 526,932 -351,288 -440,832 -13,776
Decrease in Accounts Payable -134,316 -788,676 -107,108 -424,301
Increase in Prepaid Expenses 43,900
Increase in Income Taxes Payable 0 1,274,869 1,906,258 2,551,101

Net Cash Provided by Operating
Activities -47,722 6,433,107 5,035,165 5,196,178
Cash Flows from Investing
Activities
Decrease Equipment 758,019 10,000 10,000 10,000
Decrease Land 1,000,000 0 0 0
Decrease Buildings 500,000 0 0 0
Net Cash Used in Investing Activities 2,258,019 10,000 10,000 10,000

0 0 0 0
Cash Flows from Financing
Activities 0 0 0 0
Increase Borrowings from Banks 7,000,000 0 0 0

Increase Investment by owner 3,000,000 0 0 0
Net Cash Used in Financing Activities 10,000,000 0 0 0
Net Increase/Decrease in Cash and

Cash Equivalents 5,614,462 9,397,800 9,473,101 11,138,747
Cash and Cash Equivalents, January 1,

201x 0 5,614,462 15,012,262 24,485,363
Cash and Cash Equivalents, December
31, 201x 5,614,462 15,012,262 24,485,363 35,624,110
3. Balance Sheet
IM-TAB COMMODIT
Balance Sheet
For the Year Ended December 31, 2010 - 2014
Description 2010 2011 2012 2013

Assets
Cash 5,614,462 15,012,262 24,485,363 35,624,110
Accounts receiveable 3,244,970 3,237,930 6,948,170 9,221,103

Permanent assets 974,645 0 0 0
Equipment 2,258,019 0 0 0
less: Depreciation 308,034 308,034 308,034 308,034
Total Assets 11,784,062 17,942,158 31,125,499 44,537,179

Liabilities
Account payable 1,053,864 1,188,180 1,976,856 2,083,964
Salaries payable 1,026,000 1,080,000 1,122,000 1,122,000
wage 630,000 666,000 702,000 702,000
Amortis payable 1,200,000

Interest payable 840,000 840,000 840,000 774,000
Income tax payable - 1,274,869 1,906,258 2,551,101
Lone 7,000,000 - - -
Accured expenses and other liabilities 313,995 11,618,241 1,885,580 24,428,741

Equity
Capital 3,000,000
-
Retained earnings 2,079,797 1,274,869 5,722,804 11,675,373
Total liabilities and equity 11,784,062 17,942,158 31,125,499 44,537,179

Chapter 6 Business Risk Analysis
Business Risk Analysis
A business risk is a circumstance or factor that may have a negative impact on the
operation or profitability of a given company. Sometimes referred to as company risk, a
business risk can be the result of internal conditions, as well as some external factors that
may be evident in the wider business community.
The Factors of Business Risk
External factors: Our product has the risk that the business will cannot enter to
control or solve and the risk that affect at most to proceeding business;
1 The economy
Rice is important as exported product of Thailand. Our company can surely gain
the profitability because every Thai people and other also other countries in the world
consume the rice all year long.
2 Social, such as popularity, will have an effect to our business
3 Policy, begging for trademark assures the clean of a shop, and the quality of
goods, for the guarantee that, store, and our goods, there is the clean and good quality.
4 Technology, if the business has Technology that modern to use in procedure
produces, and service. Goods and serve are effective, help decrease the risk about the
obsoleteness of the business. As a result, make the business develop with general rival,
Make the business has the progress because, use modern tool to production.
Internal factors: The risk that business is ability to control. The risk of the
business mainly that is from the executive who is less experience, make the business
hasn't certainty and unsteady in the market competition that has violence increase. Risk
can solve by executive, always learn about state of rice business who are omniscient the
experience for enhance the experience and decrease the risk.
Possible Risk
Risk of price: if our business fixes a price too high, may be some group customer
haven't power of buying, consumer will think that products are low quality. Thus the
pricing has many levels, and then risk is reduction in the price.
Market risk: Market risk of rice is Five Forces Model; 1. Rivalry among
competitors, 2. Threat of new entry, 3.The bargaining power of customers, 4.The
bargaining power of Suppliers, 5.Substitute products. Those are threat for entry market.
Thus reduce risk of our business is study state of market and competitor
Product risk: Our business is about rice, production must healthy and beauty, the
products must standard; the package is clean, because when customer comes to buy our
product from us. Then find that unclean, stink or packs shrink, as a result, don't trust in
our products, and don't come to buy our product again. We are management this risk,
there is checking product every piece, both of the procedure produces, package before
bring sell. Every the step has an officer controls.
Human resources: The risk business is ability to control. The risk of the business
mainly that is from the executive who is less experience, make the business hasn't
certainty and unsteady in the market competition that has violence increase. Risk can
solve by executive, always learn about state of business rice who are omniscient the
experience for enhance the experience and decrease the risk.
Financial Risk Analysis
Financial risk is pertaining to policy and practice financial, technique and

management financial system and the investment, such as accounting and reporting. The
damage from the arrangement does an account and financial report make a mistake or
late. The probability that the business will don't take the reward according to anticipates,
financial risk is pertaining to duty making a decision financial investment risk of the
executive such as, the making a decision invests in new project, the making a decision
about the dividend, the making a decision chooses the proportion of the investment, the
making a decision about goods treasury reserve policy, etc.
Our business is a new business, Should have the knowledge and have experience
to start business. If investment to product is over, increase product but don‘t interest to
customer. Cause high risk. Risk avoidance, the business should deny the behavior or
abandon the activities that have high risk. Have policy as; product policy, the products of
the business that will go out to the market, at least must have acceptance products
evidence from target customer and have must to are the products that have done market
test already. Financial policy, in the growth of the business must have the stability by
consider the growth from the profit of the business, and if the business has the necessity
must build a debt, must consider the ability in the settlement is first.
Chapter 7 Summary of project feasibility
From the brainstorm of our group we chosen to do this project by the reasons:
Nowadays we can see that many people concern about their lives by chosen the product
that give them healthy and beauty benefits for example BRAND, SCOTCH COLLAGEN,
Banner protein, BLACKMORE etc. In the future, population structure of Thailand have
trend to increase female more than male and older people will increase too. The
proportions of people who live in the city are increasingly and birth rate is decrease. It‘ s
means if Thai increase in female it makes demand of product for woman rise and if there
are many older it‘s mean product for healthy is rise too.
(ผูจ้ ดั การออนไลน์ 24 มถุนายน2550 13:20 น.)
Objectives
We should be able to understand
1. The demand of Thai people about new style Rice.
2. The production of Rice.
3. How healthy nutrition added in rice important for customer?
4. Know about economics of rice.
5. Studies competitor/ rice-mill and market.
6. Create rice innovation for healthy.
7. The factors that make customer buy rice.
8. Thai rice in others country view would they like or not?
9. Try to add value to Thai rice.
10. Studies about nutrition.
Benefits of Project
The benefits of this study is we are one of the Thailand‘s leading rice exporters,
exporting Thai rice, so we can apply the knowledge with this subject and we can set the
objective, planning, target market or about the customer want or demand. We can plan
advertising service and strategies distributing to customer before we do this project and it
can be information for Thai farmer who want to added value to their product to get more
profit than only sale normal rice.
Strategy
1. Corporate Level
We use market penetration strategy to expand the market share of our company by
use advertisement to persuade customer to interest in rice for healthy.
2. Business Level
We use the advantage of organization to useful and support strategy of company.
We use Focus Strategies for create difference. We are careful and emphasize on the health
of consumer is main factor and use strategy to gain competitive advantage.
3. Functional Level
3.1 Marketing strategy
Production strategy - improve packaging to highest quality

- analysis cost of production
- evaluate cost and price of competitive
- set the price from cost of production
Distribution strategy - retail
- wholesale
- online business
Promotion strategy - packaging and sale in price special
- create concept example : Thai wear, hip hop
3.2 Production strategy
Cost production - find the source that have quality and appropriate
cost to connect many distribution
- set number of product appropriate number of
production
- check number of product in order
Evaluate price inventory - first in first out ―FIFO‖
3.3 Financial strategy
Management system - find expert or specialist in this way only

- train new employee and add experience to old
employee
- put the evaluate system and internal control
- put main system example : finance, account
receivable and payable, inventory, asset, order and
seller etc.
Competition Analysis (3C Analysis)

Competitors Analysis: Thailand, the countries that produce rice, and organized
memory are saturated world's top operators make more revenue. But the company we are
unique and special than the other is from rice, we have standards in taste, aroma and price
are key benefits of consumer acceptance.
Customer Analysis: Consumers want to trade with high quality standards and
pop as an acceptable price. Therefore, consumers are interested in the products of our
company; we are bringing products to consumers with easy access and a product known
to consumers as well because we'll be continuous releases.
Competitive Analysis: Competition is also high, both within and outside the
country. Because the intermediaries who want the benefits of Great post and want
organizations exploit consumers, our company will need to consider a case, consumers
have the cooperation and support government policy to justice the most.
Target
Age: 18 years up
Gender: Male and female.
Income: 2,000 baht up
Status: 1. Department Store and Supermarkets
2. For people who live in north
3. For People who love in the healthy
Product
Price
Our product has high price more than general rice because we increase
coenzymeQ10 and collagen into product
type White rice Brown rice

size
Place
We have a shop locate opposite Big C supercenter. Address 14/1 Moo 25
Phahonyothin road Muang Chiang rai 57000. it‘s close to the bus station telephone
053-123456 fax 053-123455And we design to put product in to the supermarket in
Thailand for example Big c supercenter, Carrefour, and Tesco lotus.
Promotion
We create our website is (www.Im-Tab.com) for promote and give product‘s
information to customer and it is one of channel that easy to contact us. For advertising,
we make brochure for dispense to customer and make poster to pin up to the board in
front of supermarket. And we will set booth in another featival. In the first and second
month that we launch new product our promotion is ―buy 1 get 1 free‖
Specification, Feathers, Dimension, Life Time, etc.
Im-Erb rice can keeping for 8 months under room temperature. After open should
eat up within 1 month.
Do not washing uncooked rice before cooking.
Caution : This product is not suitable for the people who intolerance with
coenzyme Q10 and collagen.
Production/Services Process
Feedback
Supermarket
Receiving
Checking Process Packing Customer
Storage
Storage Our shop
Step 1: Rice that receive to put into the process come from Chiang Rai province .
Step 2: Storage and check
Step 3: Process
First we will sort out another thing that mixes with rice such as gravel
because it can make problem happen with machine. After us certain rice is clear, we are
put rice into enamel machine to coated coenzyme Q10 and collagen. Machine will inject
coenzyme Q10 and collagen to coated rice and bake it until dry; all of process machine
make automatically don‘t take employee in this part.
Step 4: Packaging Process
Location
14/1 Moo 25 Phahonyothin road Muang Chiang rai 57000 it‘s close to the bus
station telephone 053-123456 fax 053-123455
IM-TUB
Logistics Management
Our company is the producer that require middleman to come and get the
products and extend route of market trough middleman mostly. Our product can be order
through web site. The company will send to customer by truck.
Business Risk Analysis
A business risk is a circumstance or factor that may have a negative impact on the
operation or profitability of a given company. Sometimes referred to as company risk, a
business risk can be the result of internal conditions, as well as some external factors that
may be evident in the wider business community.
Financial Risk Analysis
Financial risk is pertaining to policy and practice financial, technique and

management financial system and the investment, such as accounting and reporting. The
damage from the arrangement does an account and financial report make a mistake or
late. The probability that the business will don't take the reward according to anticipates,
financial risk is pertaining to duty making a decision financial investment risk of the
executive such as, the making a decision invests in new project, the making a decision
about the dividend, the making a decision chooses the proportion of the investment, the
making a decision about goods treasury reserve policy, etc.
Our business is a new business, Should have the knowledge and have experience to start
business. If investment to product is over, increase product but don‘t interest to customer.
Cause high risk. Risk avoidance, the business should deny the behavior or abandon the
activities that have high risk. Have policy as; product policy, the products of the business
that will go out to the market, at least must have acceptance products evidence from target
customer and have must to are the products that have done market test already. Financial
policy, in the growth of the business must have the stability by consider the growth from
the profit of the business, and if the business has the necessity must build a debt, must
consider the ability in the settlement is first.
Payback period
Description Year Baht
Investment 0 10,000,000
Cash flows 1 5,614,462
2 9,397,800
3 9,473,101
Cash flows from year 1= 5,614,462

Investment 10,000,000 - 5,614,462 = 4,385,538
Cash flows from year 2 = 9,397,800
4,385,538/9,397,800 = 0.4666558
Payback period is 1year and 5 months
calculate NPV
investment 10,000,000
interest rate 12%
net income 1 - 2,079,797.0
net income 2 2,974,693.4
net income 3 4,447,935.8
net income 4 5,952,569.0
net income 5 7,868,323.4
NPV 11,928,061.8
Reference
Song hran hitrahon and Boriboon sornrit. ―The development of Thai rice varieties‖, 2007
http://thaihandiwork.com/thairice_themonarchyandthairice8.php?language=TH
―White rice Quotes‖ by Thai Rice Exporters Association. 13 Jan. 2009
http://www.thairiceexporters.or.th/price.htm
―Rice is life‖ by international year of rice 2004 http://www.fao.org/rice2004/en/p17.htm
―Rice production in Thailand‖ by From Wikipedia, the free encyclopedia

http://en.wikipedia.org/wiki/Rice_production_in_Thailand
―Rice‖ by From Wikipedia, the free encyclopedia http://en.wikipedia.org/wiki/Rice
―history of rice‖ http://www.guidetothailand.com/thailand-history/rice.php

―Thailand's staple grain: Rice‖ by PechSiam Manufacturer and Exporter
http://www.pechsiam.com/allabout_staplegrain.htm
―Rice growing-rice environment‖ by food market exchange

http://www.foodmarketexchange.com/datacenter/product/grain/rice/detail/dc_pi_gr_rice0
302_01.htm
―Coenzyme Q10 ‖by Health Sources Industry Company Limited, 8 Jul 2009
http://www.bikudo.com/buy/details/506409/coenzyme_q10.html
―Collagen‖ From Wikipedia, the free encyclopedia http://en.wikipedia.org/wiki/Collagen
Malcolm Tatum. ―What is a business risk‖ by wise GEEK
http://www.wisegeek.com/what-is-a-business-risk.htm
”Notification of ministry of public healthy‖ by food control division, Friday 15 Feb.2008
14:20
http://newsser.fda.moph.go.th/food/Law%20Notification%20of%20Ministry%20of%20P
ublicHealth%20Category08.php
―Strategy data of agriculture‖ by The Office of Strategy Management Upper Northern
Provincial Cluster 1
http://www.osmnorth1.com/tour.php?link=2&id=1
Kun Kai ―trend of consumer change‖ manager online, 24 Jun. 2007 15.27
http://www.songkhlahealth.org/paper/902
from manager online, 2009 http://www.siaminfobiz.com/mambo/content/view/3261/42/
―duty of new businessman‖ from Bangkok Business

http://www.siaminfobiz.com/mambo/content/view/3020/27/
―Thailand Yearly Rice, Milled Domestic Consumption‖ by index mundi

http://www.indexmundi.com/agriculture/?country=th&commodity=milled-
rice&graph=domestic-consumption
―Condition of credit‖ by SME bank http://www.smebank.co.th/service_cradit_1.php

Project Feasibilty Study and Evaluation

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Project Feasibilty Study and Evaluation

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Project feasibilty Study and Evaluation

Aj. chaiyawat Thongintr

Mae Fah Luang University (MFU) 2010

Chapter 1 Introduction of project feasibility 2

Chapter 2 Industry Profile 4

Chapter 3 Market Feasibility Study 21

Chapter 4 Technical Feasibility Study 44

Chapter 5 Financial Analysis 83

Chapter 6 Business Risk Analysis 86

Chapter 7 Summary of project feasibility 89

1. Background and Significance of the Project

Project period of time

Method for November December January February 2553

Rice the Plant

Short Grain Rice belongs to the Japonica (short-grain) category and

Rice Cultivating Methods in Thailand

History of thai Hom Mari Rice

White Rice 100% Grade B $609 $607 $590 $622 $638

White Rice 5% $577 $576 $559 $592 $607

White Rice 25% $505 $508 $487 $502 $505

White Glutinous Rice 10% $779 $777 $774 $777 $777

Parboiled Rice Quotes

Unit : USD per MT ( milled rice ) - FOB prices

Processed rice products: adding value to rice production.

3. Product/Service (in General)

6.2 Business Level

6.3 Functional Level

6.3.1 Marketing strategy

6.3.2 Production strategy

6.3.3 Financial strategy

1.2 Competition Analysis (3C Analysis)

- Income 5,000 baht up

Male and Female

Department Store Supermarkets

People all North

type White rice Brown rice

5 kg. 619 baht 619 baht

The Quarter 1 January – March

Activity Quarter 1 Quarter 2 Quarter 3 Quarter 4

Expense before investment

Display tables predict of the benefit (predict income 5 years)

Sale forecast Year 1 (sell on cash-sell on credit)

Estimate cash receive from sales Year 1

Sale forecast Year 2

Sale forecast Year 2 (sell on cash-sell on credit)

Estimate cash receive from sales Year 2

Sale forecast Year 3

Sale forecast Year 3 (sell on cash-sell on credit)

Estimate cash receive from sales Year 3

Sale forecast Year 4

Sale forecast Year 4 (sell on cash-sell on credit)

There are 17 provinces in North of Thailand

Sale forecast Year 5

Sale forecast Year 5 (sell on cash-sell on credit)

Estimate cash receive from sales Year 5

Purchase Rice forecast (pay on cash-on credit) Year 1

Estimate account payable for purchase rice Year 1

Purchase Rice forecast (pay on cash-on credit) Year 2

Estimate account payable for purchase rice Year 2

Estimate account payable for purchase rice Year 3

Purchase Rice forecast (pay on cash-on credit) Year 4

Estimate account payable for purchase rice Year 4

Purchase Rice forecast (pay on cash-on credit) Year 5