เจริญกิจการเกษตร Project feasibilty Study and Evaluation - Aj. chaiyawat Thongintr. Mae Fah Luang University (MFU) 2010.
เจริญกิจการเกษตร Project feasibilty Study and Evaluation - Aj. chaiyawat Thongintr. Mae Fah Luang University (MFU) 2010.
เจริญกิจการเกษตร Project feasibilty Study and Evaluation - Aj. chaiyawat Thongintr. Mae Fah Luang University (MFU) 2010.
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Jarenkit Kankased
Preface
The subject of 1203302 Project Feasibility Study and Evaluation in one part of
Business Major Study for studying the feasibility of the business by applies the skill
and knowledge from many branches to analyze the opportunities and feasibilities of
the business. Studying the origin and the important of business, environment and
other factors that have impact of business, market analysis, and select the strategy to
use the market, the method of manage the business, financial and accounting, and risk
of finance on business.
Jarenkit Kankased
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Content
Preface A
Content B
Part 1: Introduction
Background 1
Objectives 2
Benefit 2
Activities / Timeframe 2
2013 35
2014 37
Conclusion 39
Part 4: Technical Feasibility Study
Production and Operation Feasibility Analysis 40
Product Characteristics 40
Agricultural Chemical 40
Fertilizers 48
Agriculture equipment 52
Animal Food 51 54
Production/Services Process 55
Location 55
Facility Layout 56
3. Machine/Tools/ Equipments 57
4. Logistics management 67
Transportation part 68
Supplier management part 69
Customer Service part 69
Return goods 69
Location Planning 69
Facility Management 69
Cost of Investment 70
Depreciation 72
Conclusion 73
Part 5: Financial Analysis 74
Profit/ Loss Statement 74
Income Statement 2010 74
Income Statement 2011 75
Income Statement 2012 76
Income Statement 2013 77
Income Statement 2014 78
Cash Flow 79
Cash Flow2010 79
Cash Flow2011 80
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Cash Flow2012 81
Cash Flow2013 82
Cash Flow2014 83
Balance Sheet 84
Balance Sheet 2010 84
Balance Sheet 2011 87
Balance Sheet 2012 89
Balance Sheet 2013 91
Balance Sheet 2014 93
Payback Period
Payback Period 2010 95
Payback Period 2011 95
Payback Period 2012 95
Payback Period 2013 96
Payback Period 2014 96
Net Present Value (NPV) and Internal Rate of Return IRR 96
Conclusion 97
Chapter 6: Risk Management 98
Sale Decrease 5% 98
Payback Period 2010 98
Payback Period 2011 98
Payback Period 2012 99
Payback Period 2013 99
Payback Period 2014 100
Net Present Value (NPV) and Internal Rate of Return IRR 100
Sale Decrease 10% 101
Payback Period 2010 101
Payback Period 2011 101
Payback Period 2012 102
Payback Period 2013 102
Payback Period 2014 103
Net Present Value (NPV) and Internal Rate of Return IRR 103
Sale Decrease 15% 104
Payback Period 2010 104
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Introduction
Background
From the past to the present, the main occupation of Thai people is
agricultural. Agriculture is the factor which effect to the economy in Thailand
because we export a lot of agriculture goods to worldwide. Agriculture is also the
main factor which feed people for whole country. Agriculture can be food and be raw
material in the many industrial processes and influence other business which involve
with agriculture. Exporting agriculture gain a lot of money to agriculturist and
increase GDP in our country. But nowadays the crop had been decreased and natural
planting is difficult because of changing of environment. So, the fertilizer and
insecticide have been used to help planting and agriculture.
From the research, there are agriculturists every region, especially in the north.
A lot of people in the north do the agriculture, each province will have different crop
for example; Chiangmai plant Longan, strawberry, and orange, Chiangrai plant rice,
strawberry, Lichee, and pine-apple, and Lamphun is the province which has a lot of
agriculturist.
In Lamphun, there are agricultural areas 641,889 Rai or about 22.79% of
totally area of Lamphun province. There are argriculturist 224,971 people or about
55.37% of total amount of people in Lamphun. There are many crops such as Longan,
rice, shallot, and garlic which are of the export good to foreign country. Every year,
Lamphun export a lot of dry longan to China. But according to changing environment
affect the longan growing which not meet the demand of exporting. That’s why we
choose Lamphun as a place for doing our business.
The entrepreneurs of Ja-rern-kit Kan-Kased used to be one of the agriculturists
and face with the same problem with other agriculturist before. From this problem, we
try to find the way to solve the problem in planting and increase the number of the
crop to satisfy the need of agriculture goods. We use the fertilizers and insecticide
which reflect the fast growing tree, and return in high performance. That’s why we
want to open the full system of agricultural store to help and support other
agriculturist.
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Objectives
1. To study about business environment agriculture store.
2. To study about the group of customer demand in the area
3. To study feasibility to open agriculture store in Aumhur Banhong,
Lamphun province.
Benefit
1. To know about business environment agriculture store
2. To know about the group of customer demand in the area
3. To know the feasibility to open agriculture store in Aumhur Banhong,
Lamphun province.
Activities / Timeframe
Chapter 2
Industry Profile
Nature of Industry
According to Lamphun province has the people who earn a living the
agriculture. Mostly, the Lamphun has the area owns for the agriculture, total up
641,889 Rai about 22.79 percentages of the all area of a province. Agriculturists have
amount 22,4971people, 55.37 percentages in the all people. Lampoon regards the
source of important production in the North of Thailand like vegetable, fruit and
animal. Some part of agriculture will be the raw material to the industrial factory
processes. Some part of agriculture will send to sell in another province, such as,
Chiangmai, Lampang, Bangkok, Nakorn Savan. The important goods such as, longan
, shallot , garlic , rice , and , corn. Especially, Banhong district has growing longan
and a lot of red shallot so using of agriculture product is increase also because of these
things is main factor to do agriculture. But the problem of agriculture business is
income of Lumphun people has low average 2549-2552 about 23,846 baths / year
which have low value. However hopeful that 2553 economy will recover, the result
may increase of consume will increase. Selling agriculture product is medium
business. Most of store set in Banhong, because this area is important agriculture in
Lumphun. Most of store is retail shop by get the goods from vendor to sell for there
customer. Investment agriculture product need to use skill about agriculture and
investor must use high money to invest. Investor must have relation with vendor and
customer for do business well. Moreover investor must give the knowledge for
employee and investor have to find the way to sell the goods and support market
when do this business. The problems of doing business are the demand of consumer
use follow season, the managing of material follow the season, the problem of the
price that have to fight with competitor. According to use money to invest similar and
the liquidity of expand the business has low because of money department stick to
give money; this things will be effect for support the cost.
(Reference: www.lamphun.go.th)
Industry Situation
Competitive conditions.
Because data from the survey. Then appears to conclude that all agricultural products
have 2 stores located in Ban Hong districts. Products are similar, but the 2 stores have
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no customer service and no knowledge expertise in agriculture product. And sell only
certain products. Competitors still have low so the store can define the form of market
segment. Most of competitions will be the part of price strategy more than service.
With out specific marketing activity such as low advertising. This way will be the
great change to get market segment easily.
Product
Agricultural Equipment
Agricultural equipment as a tool for help the agricultural operations to be
quick and easy, use to relieve farmer power. Divided by type of agricultural
equipment and materials are made from a plastic, made from metal fibers, or even
made from natural materials, if the share of agricultural equipment by function can be
divided into heavy equipment and light equipment, if divided by nature use, including
tools to use with clay, tools used in water plants and tools used to maintain trim
branches.
Fertilizers
Fertilizers are soil amendments applied to promote plant growth. They are
usually applied directly onto the soil, but can also be applied onto leaves (foliar
feeding). The main nutrients added in fertilizer are nitrogen, phosphorus, and
potassium but other nutrients are added in smaller amounts. Fertilizers can be either
organic (e.g. manure) or inorganic (mined or synthesized chemically).
Organic fertilizers
directly, organic fertilizers can improve the health and long-term productivity of soil.
Organic nutrients increase the abundance of soil organisms by providing organic
matter and micronutrients for organisms such as fungal mycorrhiza, which aid plants
in absorbing nutrients.
Single fertilizer is fertilizer that containing elements in only one element, such
as urea has only nitrogen or Potassium Chloride has only potassium.
To use right fertilizer with right plant, there are several factors associated to
concentrate such as types of plants, type of soil, time to use fertilizer and how to use
fertilizer. Each plant needs in much different elements. Some plant need nitrogen,
some plant need phosphorus. Sometime in the same plant species but in the different
times, they are need in much different food elements for examples during the plants
create leaves. The elements that will require are nitrogen but during the plants create
fruits. The elements that will require are potassium. Each soil has different volume of
element. Some soil has high potassium, the sandy soil is usually has low element.
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There are several ways to use fertilizer such as sow method, scatter method,
drop in hole and etc. Each method is efficient and easy unequal. Therefore, the use of
fertilizer to make the most benefit, should consider in
Agricultural Chemical
Many agrichemicals are toxic, and agrichemicals in bulk storage may pose
significant environmental and/or health risks, particularly in the event of accidental
spills. In many countries, use of agrichemicals is highly regulated. Government-issued
permits for purchase and use of approved agrichemicals may be required. Significant
penalties can result from misuse, including improper storage resulting in spillage. On
farms, proper storage facilities and labeling, emergency clean-up equipment and
procedures, and safety equipment and procedures for handling, application and
disposal are often subject to mandatory standards and regulations. Usually, the
regulations are carried out through the registration process.
Animals Feeds
Concentrate feeds
Concentrate food is an ingredient in concentrated feed containing valuable
chemical elements, particularly from high-quality animal and plant proteins and with
a fragrance to encourage consumption. The product is suitable for mixing with raw
materials to feed animals of any age as needed.
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Feed for laying chickens feed for laying chickens is a special-ingredient feed
produced from high-quality materials, processed by our standard feed mill and
becomes a key ingredient and any other species of laying chickens fed within the
tropical climate zones. Therefore, you can be sure that feed for laying chickens has
the complete quality needed for the laying chickens and their eggs will satisfy the
market and customer needs. In addition, we create different proportions of ingredients
to be suitable for each laying chickens’ age range and needs.
for feeding catfish. The product is categorized into 3 types based on the fish size and
weight: small-sized, medium-sized, and big-sized catfish.
Vision
Be concentrate in providing service and help to improve agriculturist life by
using sufficiency economy way follow the King Rama9
Mission
To concentrate, help, and support agriculturists with honestly.
Business Strategy
Business level
Our business focused on satisfying customer needs or preferences in order to
achieve above average returns. This is done through Business-level strategies.
Business level strategies detail actions taken to provide value to customers and gain a
competitive advantage by exploiting core competencies in specific, individual product
markets. Our firm emphasize on gaining competitive advantage strategy (competitive
differentiation) value is provided to customers through unique features and
characteristics of an organization's products rather than by the lowest price. It is done
through high quality, features, high customer service. We have a good relationship
with the vendor because we agree to have long contact with the vendor and promise to
have them as only one vendor of our store in fertilizers and chemical products. They
lease the product to us and they will collect the money by the end of the month which
less the risk to us in money lack and we still have product to sell.
We also focus on focus differentiate strategy which is be different from other
store because our rival they sell only chemical product but we try to sell agriculture
equipment and animal food which involve in agriculture activities. We have gone on
field service and customer can consult about problems that they face in their
farm/garden. Moreover, the retailer can order the product in big lot from us because
we have delivery service in Amphur Banhong, Amphur Lee, and Amphur
Tunghuachang.
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Part 3
Market Analysis
From the past to the present, agriculture had been a part of Thai people life.
Thailand is a good place for doing agricultural because the weather is suitable in here.
In the past, people do the agricultural for survive themselves and their family, but now
it has been changed. People do the agricultural as their occupation for gathering
money as a business. According to climate change and low products, the agricultural
chemical and agricultural equipments can help to improve performance of agricultural
product and agriculturists to gather the more benefit from selling their product and
make job on field easy for them.
Politic
From the policy measure 1 year of Prime Minister Apesit vedchachiwa, the
politic of this government has effective directly to agriculture market. This
government leader by Apesit vedchachiwa has supported the part of agriculture more.
Prime Minister Apesit vedchachiwa’ government has created the system of insure the
risk of agriculture which is the system that warrant the price of agriculture goods by
the future option. Moreover this government has developed the agriculture market and
community goods to release the local goods that exceed market and the government
still give more sufficient economy fund to agriculturist to do their business. For all of
mention is the policy of government that will be effected directly for agriculture
environment, it is the great opportunity of Jareuankit karkased to do this business.
Economy
From the office of the national economy and social development board said
that the estimate of economy 2010 will have the expand 0.3-0.4% follow recovering
of world economic and the reliable of private company. For general inflation will be
2.5-3.5, the rate of no job about 1.4%, the rate of overbalance about 5.3of GDP.
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The managing economic of government will support private company to invest for
business to help Thailand economic to recover, the government will support the
export-import in ASEAN to reduce the tax. This situation of economic quite be the
good news of the part of agriculture because of people in country will have ability to
spent their money to buy agriculture goods
Social
Nowadays people start to concern with the health, so the trend of using
chemical product will low so the organic fertilizer will be interested for many people.
This is the good chance of Jareuankit karkased to invest in this business and in
lumphun the main occupation is agriculture. For the density of population will be 90
person per 1 tarang kilometer, it show that the area is appropriate with people in the
province.
Technology
The technology which we use for promoting our store is radio. We use the
radio advertising as a communication channel because the customers in Banhong
areas always listen to the radio. Moreover, we contact to the customers and vendor by
telephone because it’s fast, easy, and suit with customer behavior.
Our company use Five Force to analysis with Jarernkit Kankased by:
SWOT Analysis
Strength
We train our employees to have knowledge about the products and giving the best
service to customer.
Our product has average to high quality according to the price and need of
customer. The low quality product will not be served in our store to make sure that
the customer will get the good product following their need.
We have the best location which have parking lot provided for customers.
Weakness
Opportunity
The government support agriculturist to grow fruit trees and other vegetable.
The economy is getting better, the cost of product is getting down, and people have
more money to buy our products.
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The King suggests people to have sufficiency life by growing vegetables and raise
animal to be their daily food.
Threat
1. Competitor Analysis
There are 3 retailers who are our competitors; Puifai Panit, Ton Kankased, and
Tanthong Panit. They are agricultural chemical store which sell fertilizers and
chemical products only. Their location is in Banhong district and was settled by the
main street. They didn’t offer the parking lot and sell in high price. From observing,
they didn’t suggest anything to customer.
2. Customer Analysis
2. Housewife: the man or woman who raise animal (pig, fish,chicken) and
sometimes do the vegetable garden in their house.
3. Company Analysis
3. Innovation: the innovation will be use in operation section in our store such
as collecting money system.
Market Segmentation
We divide our market segment into 6 groups of products as following:
First group is chemical products. The agriculturists use the chemical products
with their produce. It helps in healing, treatment, and protects their crop from insect,
worm, and other diseases.
Second group is fertilizers. Fertilizers are soil amendments applied to promote
plant growth. They are usually applied directly onto the soil, but can also be applied
onto leaves (foliar feeding). The main nutrients added in fertilizer are nitrogen,
phosphorus, and potassium but other nutrients are added in smaller amounts.
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Target Market
From observing, we choose our target market following frequency of use of
our customers which is:
Chemical products: The customers often use the chemical products in their
field because it’s faster than the natural product and more effective.
Fertilizers: Customer often use fertilizers in their farm to enrich their plants
and the customer often look for chemical product and fertilizer in the same time.
Animal food: From the statistic website of Lamphan province it said that in
Amphur Banhong, Li, and Tunghuashang have high value of animal sale. So we
decide to sell animal food too.
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Positioning
Ton Kankased
Tanthong Panit
Low
From picture above, you can see that our store provide high quality of planting
consultant and go on field service to our customer. Moreover, our store has variety of
products to serve customer and we try to be a one stop shop.
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Goal of market
- Create the popular in the Lumphun and may increase product or store
- Increase product that appropriate with market and region
The Marketing mix is generally accepted as the use and specification of the
4Ps describing the strategic position of a product in the marketplace. It is the division
of groups to make a particular product, by pricing, product, branding, place, and
quality. The fundamental of marketing typically identifies the four P's of the
marketing mix as referring to:
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Product
Jarernkit kankased store do the business like retail store. The store sells many
of agriculture products such as Animal Food, Agricultural Equipment, Fertilizers and
Agricultural Chemical. For the product; store will sell many quality product and
popular brand. These are the product the customer can accept. All of the product will
support with customer need
Pro Calcium
Boron 1,000 cc.
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Duanteesud 500
cc.
Animal Food Agricultural Fertilizers Agricultural
Equipment Chemical
Duanteesud 1,000
cc.
Profix
Kheawyai
Price
Jarernkit kankased store use price strategy like Medium – Value strategy. By
sell the goods which high quality in medium price. According to target market who
wants to use quality agriculture equipment has low income. Some product, our store
will set the price follow agency company who sell the product for our store.
- Product list
Place
First step Jarernkit kankased will set the store at Banhong near customer target
by this area will be in the community, set in the main street and agriculture area.
Store will have all of products which can reach to every customer’s segmentation,
quickly distribution and store has parking lot to service our customer.
Promotion
• Word of mouth is the great way which can use without money to
communicate with this community. Word of mouth term referred
specifically to oral communication includes any type of human
communication, such as face to face, telephone.
• Spot radio. From observing, the agriculturists often listen to the radio
while they’re working in their field. We choose this media because it can
reach to our target market and cost cheaper than TV advertising. We
choose to advertise our store at 97.5 fm channel which is local radio
cover Amphur Banhong, Amphur Li, and Amphur Tunghuachang. They
will announce our store in every break and it cost 3,000 baht per month.
Cost of marketing
Description Per Month Per Year
Sale Forecast
From the table above, we analyze that the profit of each month is different
because seasoning. In each season the agricultural activities is different. For example;
July-October, there is rain, and November – January is cold season. Thus, the sale and
profit increase following the agricultural activity because in cold and rain season,
there are diseases in crop and it suit for using the fertilizer. For the hot season
between Februarys – June, the sale and profit decrease because in hot season they’re
not usually spay chemical products and use fertilizer because it can burn their plant
and fertilizing have to use a lot of water and there is a few disease in hot season too.
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This table shows the number of agricultural areas in Amphur Banhong, Amphur Li,
and Amphur Tunghuashang.
Agricultural Area in each Amphur
Number Amphur Agricultural Area (Rai)
1 Banhong 67,544
2 Li 174,153
3 Tunghaushang 90,789
The agriculturist in this area do the planting 55.37% of total population such
as Longan, corn, onion, rice, and other vegetable. We ask 20 agriculturists and we
found that 16 of them use 50 kilograms(1 bag) of fertilizer per 1 Rai and 4 people use
40 kilograms per 1 Rai. Thus, we estimate that the agriculturist use 1 bag of fertilizer
in 1 Rai.
From table above, there are 332,486 Rai in our target area, so we assume that
there will be 332,486 bags of fertilizer can sell per month between rain and cold
season. However, we’re new in this market and there are competitors in our area, so
we will divide the sales following market share.
The agricultural store Market share (%)
Puifai Panit 30
Ton Kankased 25
Tanthong Panit 25
Jarernkit Kankased 20
Animal food
In 2008
Amphur Number of animal for The value of selling
selling animal (Baht)
Banhong 46,586 31,676,050
Tunghaushang 9,730 56,839,140
Li 52,595 39,495,370
Source: Domestic animal office
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The table above show that there are a lot of animal has been raised in our
target area. In out target area, they mostly raise pig, chicken, and fish. Thus, we divide
number of animal into 4 categories and multiply with our market share. However,
each type of animal has different demand in each season. For example; the
agriculturist raise and feed fish more in hot and rain season, raising fish takes only 3
months and then they sell them. They’re not usually raise fish in cold season because
there is low of oxygen in water and fish hardly to grow up. For pig, the pig always eat
a lot especially in teen age because the agriculturist try to feed their pig to have meat
more than fat, so they will use the quality instant food.
Agricultural Equipment
This table shows the number of agriculturist in our target area:
Amphur Number of agriculturist
Banhong 42,712
Li 60,501
Tinghaushang 19,312
Conclusion
According to climate change and low products, the agricultural chemical and
agricultural equipments can help to improve performance of agricultural product and
agriculturists to gather the more benefit from selling their product and make job on
field easy for them. Environment analysis is necessary before we open the business.
The environment is not effect for opening the business that much, the government
also support people to plant and raise animal which a good opportunity for us to sell
our goods. However there are some competitor that we have to fight so we choose the
business strategy in business level to use because the competitor sell similar product
with us. We also have a marketing plan as a tool to attract customer such as
advertising. We expect that our business will grow well as customer’s tree and sale
volume will increase every year.
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Chapter 4
Technical Feasibility Study
Production and Operations Analysis
Product Characteristics
Specification, Feathers, Dimension, Life Time
It will be absorbed into the leaves and will be transported to all common
roots. Good performance and suitable size. Thai people have known that.
"Kill extermination". The important chemicals are Glyphosateis found
that effective to killing any type of grass. It can use in wide and narrow
leave grass.
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It will be absorbed into the leaves and will be transported to all common
roots. Good performance and suitable size. Thai people have known that.
"Kill extermination". The important chemicals are Glyphosateis found that
effective to killing any type of grass. It can use in wide and narrow leave
grass.
Gram-mox-zone 1-4Liter
Profix
Help to stop fruit falling off such as longan.
Kheawyai
Help to expand and maintain the tree.
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Pewtong
Hormone helps longan shell to be goal - yellow.
Prosimedon
Captan50
Prevent substance pesticides (absorption) with long time activate and also use
together with other substance.
Jetter
Calmax14-0-0
Sedtee Hormone
Help longan to maintenance and collecting food and prepare to be profitable.
Dok-Dee 1 – 4 Liter
Dok-Uan-Cho-Yaw
ATP
2. Fertilizers
46-0-0
16-20-0
15-15-15
13-13-21
15-15-15 Yara
tree for the perfect truck, increase bearing fruit. Suitable for all types of
plants. Utilization rate depends on the age and growth of plants. The
need to consider the needs of plants, primarily rate 1-2 kg / plant, 25-50
kg / rai, or advice of academics
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25-7-7
nitrogen (N), phosphorus (P) and Potassium (K). Ideal to use with all
types of plants such as Sugarcane, rice, cassava and corn. This is
fertilizer that helps in maintaining flower, stalk leaves and roots to grow
fully. 25-7-7 formula will apply to most fruit or vegetable to eat mainly
seed and sheath because of all the elements in the 3 elements help
accelerate the growth of plant roots, trunk, leaves and the installation of
the grain very well. Also has good weight and maintain the taste value
of crops that very well.
15-0-0
0-0-60
8-24-24
Suitable for all types of plants. Term growth and split of branches and trunk
create a healthy and balance full strength to strengthen the root system. Resist disease
and insects fall. Scattering from the base between rows (Amount depends on the age
and type of plant). 1. Vegetable and crops used as fertilizer, ground rates 25-30 kg /
rai, or vice planting hole bottom, for fruit rate 0.5-1 kg / rai. 2. Term growth is protest
move to production. Rate 1-5 kg / plant or rate 30-50 kg / rai.
Suitable for all types. Term growth and split of branches and trunk create a
healthy and balance full strength to strengthen the root system. Resist disease and
insects fall. Reduce the fall of the flower, stem sticky, heavy fuel accumulation in the
food taste, good quality products and added weight of palm oil scattering from the
base between rows (Amount depends on the age and type of plant). The rate of 1-3 kg
/ plant or follow instructions.
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Potassium Chloride
3. Argiculture equipment
Hoe
a long-handled gardening tool with a thin metal blade, used mainly
for weeding, dig up, cut, scrape, turn, arrange, or clean and clear
from weeds.
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Plant bag
Use to nursery for young trees, prevent weed and easy to move the
plants.
4. Animal Food
Feed for Catfish:
This is catfish feed produced from high quality, selected, and carefully inspected,
raw materials manufactured using modern technology machinery and thus a feed of
quality and high nutritional value is obtained with a complete nutrient balance making
the fish grow quickly with the beautiful skin color desired by the market. It is suitable
for feeding catfish. The product is categorized into 3 types based on the fish size and
weight: small-sized, medium-sized, and big-sized catfish.
Production/Services Process
Our business, we order goods from the vender and sell them. Before ordering
goods, we’ll check which product is out of stock and which product need to order
more before it run out of stock. Then, we’ll order the product to the vender by phone
and the vender will ship goods to our store within 1-2 days arrives. \
Location
Our location is located on Banhong district, Lamphun province because
Lamphun is a source of vegetable which survive people in the north part of Thailand.
In addition, Banhong district is the area where grow a lot of vegetable and fruit which
popular in Lamphun such as Longan, shallot,and garlic.
For the store, it will be settled by Lamphun-Chiangmai road in Banhong
district. People who live around there mostly are the agriculturists who have their own
garden. There are parking lots available for customer because some of them need
place for parking to load fertilizers.
Store Location
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Facility Layout
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Machine/Tools/ Equipments
1. Scissor
2. Ruler
3. Rubber
4. Pen
5. Pencil
6. Sharpener
7. Cutter
8. Clock
9. Telephone
10. File
12. Table
17. Calculator
18. Plug
20. Tape
21. Gules
22. Stapler
24. Computer
25. Fax
26. Numerator
28. Shelf 1
29. Shelf 2
31. Pallet
33. Stapler
Logistics management
From the wholesaler at Aumper Pa sang. Jaruankit kankased will order the
goods by phone from this wholesaler after that wholesaler will send the goods to store
within 1-2 days. Jaruankit kankased has the duty to store the goods and sell the goods
for customer. We has the plan to reduce costs of distribution by call directly to
customers who are in around area. We will check the demand goods of customer and
sent the goods to customer with the big quantity.
Warehouse part, the types of the Jaruankit kankased goods which sell in the
market is the Finish goods inventory. Group of goods can sell immediately so the
store should has the readiness to serve customer. The goods ‘quantity will depend on
the demand of customer which can change follow the time. Whenever Jaruankit
kankased has the goods in the store, it will be good to service customer in time. for the
stock goods Jaruankit kankased will emphasis the goods that can sell quickly. The
store will not stock the goods that slow moving or dead stock which means the goods
that can sell more than 6 months. This thing can help the business to reduce cost of
goods and store will have more place the store others goods.
Jaruankit kankased will do ABC analysis to mange the goods in the store by
set Group A is the goods that can sell quickly, Jaruankit kankased will order this
group more from vendor to stock in store. For group B, this group is the group of
goods that has popularity less than group A. The store will order the goods less than
group A. The last group is group C, this group is the goods that cannot sell well and
the goods are not popular in the market. These goods should be eliminated from
warehouse or get the helping from marketing segment to sell it all.
For the expanding business, Jaruankit kankased has the plan to be main
distributor to other area especially Aumper lee by Jaruankit kankased will take the
goods from Jaruankit kankased supplier to sell and Jaruankit kankased will build the
distribution center at this Aumper. To avoid the high cost of business, Jaruankit
kankased will stock the goods follow ABC analysis too
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Transportation part , The cost of business will low or high will depend on the cost
of transportation which come these factors such as
- Weight of goods
- The expense between transport such fuel costs
- Distance
From the mention, Jaruankit kankased will reduce costs by using strategy of choosing
the safety energy such as using CNG, NGV energy for car. Moreover, Jaruankit
kankased will set the standard of company follow 5Rs Delivery which includes
1. Right Place
2. Right Time
3. Right Quantity
4. Right Quality
5. Right Cost
Supplier management part, supplier is main factor of Jaruankit kankased
business; the strategy to win competitor is getting the good service from supplier such
as getting low price from supplier. Some strategy of Jaruankit kankased is creation
relation; it means that the relation is the heart of successful. Jaruankit kankased
creates relation by changing information and make the plan to release goods together.
This thing can help the business to reduce cost for all supply chain
Customer Service part, When doing the business Jaruankit kankased must give
satisfies to customer by service customer well. To create satisfy Jaruankit kankased
will sent the goods that customer order on time and the goods still have complete and
good quality.
Return goods , when the goods has the problem after customer buy, Jaruankit
kankased will allow some goods of customer to return the goods and we will sent it
back to vendor.
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Location Planning, Jaruankit kankased has set the store in the right place
where is near the main road. It very great place to be the center of customer and it will
easy to distribute the goods to other Aumpher. About the distance Jaruankit kankased
store is in the central between Aumper pasang and Aumper lee,this is the good
strategic to transport between 2 Aumper
Facility Management
In facility management, we consider with telephone, clock, table fan, wall fan,
computer, fax machine, checking fake paper money machine, and price sticker.
Telephone: we use telephone to communicate, and order goods with vendor
and customers.
Clock: we also consider clock as important thing because we consider about
the time of shipping to customer, we want to make it on time.
Table fan: According to Lamphun is very hot and dry in summer, we’ll use
table fan to cool the customer and employees to make them feel good because if they
get a bad mood, it won’t turn any good outcome to us.
Wall fan: we’ll use wall fan to create store atmosphere to have not cool, so the
customer can feel good when they walk in to our store.
Computer: we will use the computer to do the document work including
accounting paper.
Fax machine: we will use fax machine to communicate and order goods with
customers and vendor.
Checking fake paper money machine: Because our products are high price, we
have to get big amount of money everyday, so we consider about the fake paper
money. That’s why we need this machine.
Price sticker: According to consumer protection law, we need to stick price to
every products so, we need the price sticker.
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Cost of Investment
Total 11,000
Investment Cost
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Equipment
Item No. Price/Unit Total
Rubber 5.00 5.00 25.00
Pen 20.00 5.00 100.00
Pencil 20.00 3.00 60.00
Cutter 6.00 23.00 138.00
Land line 2.00 250.00 500.00
File 20.00 71.00 1,420.00
Cut Paper
Tape 3.00 150.00 450.00
Tape Case 3.00 50.00 150.00
Tape 6.00 26.00 156.00
Plastic bag 50.00 35.00 1,750.00
Notebook 20.00 15.00 300.00
Whitebroad
pen 13.00 25.00 325.00
Total 5,374.00
Tools
Item No. Price/Unit Total
Scissors 3.00 95.00 285.00
Ruler 5.00 5.00 25.00
Clock 2.00 199.00 398.00
File Cabinet 2.00 4,400.00 8,800.00
Table 2.00 6,470.00 12,940.00
Office Chairs 4.00 1,070.00 4,280.00
Visitor’s
chairs 1.00 1,790.00 1,790.00
Electrical fan 2.00 750.00 1,500.00
Table fan 3.00 1,500.00 4,500.00
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Depreciation
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Conclusion
There are many 4 kinds of products that we sell can separate as; agricultural
chemical, agricultural equipment, animal feed, and fertilizers. About the location we
choose to set our store close to the main road because it’s easy for customer to find
our store and easy to load products. About Logistic management, we will call the
retailer which product they want to order and collect from many store that we can to
send it by one time to safe the fuel. If some product it broken, we will send them back
to the vendor.
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Part 5
Financial Analysis
Profit/ Loss Statement
Cash Flow
Cash Flow2010
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Cash Flow2011
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Cash Flow2012
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Cash Flow2013
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Cash Flow2014
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Payback Period
Conclusion
There are many 6 kinds of financial that we calculates as; Income Statement,
Cash Flow, Balance Sheet, Payback Period, Net Present Value, and Internal Rate of
Return. About the Income Statement comes from sale of the product and the expense.
In the Cash Flow comes from cash of operating activities, investing activities, and
financing activities. In the Balance Sheet calculate about the total asset, to equity, and
total liabilities. Payback notify about the when owner will get a profit of investment
the business. Net Present Value show of the value of business should to invest the
business, and the last Internal Rate of Return show about the a rate of return used in
capital budgeting to measure and compare the profitability of investments.
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Chapter 6
Risk Management
Interest increase 5%
Conclusion
There are many 4 kinds of financial that we calculates and analysis as;
Payback Period, Net Present Value, Internal Rate of Return, and Depreciation of loan.
Payback notify about the when owner will get a profit of investment the business. Net
Present Value show of the value of business should to invest the business. In the
Internal Rate of Return show about the rate of return used in capital budgeting to
measure and compare the profitability of investments., and the last kind we use
Depreciation to calculate and analysis if the interest increase the owner will be an the
effect o business more than the old interest.
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Chapter 7
Summary
The environment is not effect for opening the business that much, the government
also support people to plant and raise animal which a good opportunity for us to sell
our goods. However there are some competitors that we have to fight so we choose
the business strategy in business level to use because the competitor sell similar
product with us. We also have a marketing plan as a tool to attract customer such as
advertising. We expect that our business will grow well as customer’s tree and sale
volume will increase every year.
References:
www.lamphun.go.th
http://portal.nso.go.th/otherWS-world-context-root/index.jsp
http://th.wikipedia.org/wiki/%E0%B8%88%E0%B8%B1%E0%B8%87%E0%B8%AB%E0%B
8%A7%E0%B8%B1%E0%B8%94%E0%B8%A5%E0%B8%B3%E0%B8%9E%E0%B8%B9%E0%
B8%99