Project Feasibility Study 2010_B08-Milkery Shop

M i l k e r y

Jp’

M i l k e r y

M i l k e r y

Milkery Shop

Company Owner:

Mr. Jatupol Muenharn General Manager

Miss Wanna Rattanawanit Production and Operation Manager

Miss Wilawan Kladngiu Marketing Manager

Miss Nattaya Chiangrang Human Resource Manager

Mr. Piboonsak Kittitornkun Accounting and Financing Manager

Company:

59/1 Phaholyothin Road, Moo 1 T.Thasud A.Muang Chiang Rai 57100

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Preface

About our project was prepared for Investor who interest to invest in bakery and

coffee shop. In our project, we analyze the project feasibility and evaluations that how

project become successful, get more profit and benefit to investor. It includes with

background, industry profile analysis, marketing feasibility analysis, technical feasibility

analysis, financial analysis, risk management analysis, and summary of the project’s

feasibility to see all of image of Milkery Company.

So, we hope this project will make investor contrite to invest with our company

and get profit with us together.

Sincere,

Mr. Jatupol Muenharn

Miss Wanna Rattanawanit

Miss Wilawan Kladngiu

Miss Nattaya Chiangrang

Mr. Piboonsak Kittitornkun

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Executive Summary

Nowadays, milk shop business is growth continuously and also milk a necessary

thing for people who emphasize on their own health and people who love to drink milk.

In other hand, numbers of people who consume milk are increasing every year. So, this

is the reason why we selected to do milk shop business. Our company was registered to

be the company limited under the name of Milkery. The company was established by

five partnerships.

Milkery is located on 59/1 Phaholyothin Road, Moo 1 T.Thasud A.Muang Chiang

Rai Province. We emphasize on the location which is easy to access and quite well know

location of our target market. Milkery is not only milk shop but we also adding bakery

and some snack within the shop. We will launch promotion in some period of time to

promote and advertise our shop to increase sales. So, we still create new menus to be

the competitive advantage to compete with another competitor. About target group, we

emphasize on university students who are our main target market because these group

is the most volume who we want to serve the most. Second, we focus on student, who

studied on high school, worker, and others are also our target market. There are 3 main

competitors of Milkery; Nom Na Mor, Nom Chompoo, and Kin Nom Kan. Those we must

compete with them because they have opened their business for a long time and people

in Chiang Mai are quite loyalty with them. So, we also have to compete with our indirect

competitors both milk shop and bakery shop

Moreover, company invests milk shop business by loaning money from the bank

for 1,000,000 baht in 5 years. In financial part, our sale increase every year. It is good

news for other people who might interest to invest in our business and we will be

partnership. Finally, we can make sure that our market share will be increasing every

year.

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Table of content

Preface ............................................................................................................................................ i

Executive Summary ................................................................................................................... ii

Table of content......................................................................................................................... iii

Content of figure ...................................................................................................................... vii

Content of table ....................................................................................................................... viii

Chapter 1 Introduction..............................................................................................................1

1.1 Background and Significance of the Project .................................................................................1

1.2 Project objectives ......................................................................................................................................2

1.3 Benefits of Project .....................................................................................................................................2

1.4 Activities and Time frame of study ...................................................................................................3

Chapter 2 Industry Profile........................................................................................................7

2.1 Nature of industry .....................................................................................................................................7

2.2 Situation of Industry ................................................................................................................................9

2.2.1 Competition Analysis ......................................................................................................................9

2.3 Product and Service............................................................................................................................... 10

2.4 Vision of Milkery ..................................................................................................................................... 17

2.5 Mission ......................................................................................................................................................... 17

2.6 Business Strategy.................................................................................................................................... 17

2.6.1 Corporate Strategy ........................................................................................................................ 17

2.6.2 Business Level ................................................................................................................................. 18

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2.6.3 Functional Level Strategy ........................................................................................................... 19

Chapter 3 Market Feasibility Study .................................................................................... 22

3.1 Market Analysis ....................................................................................................................................... 22

3.1.1 General Environment Analysis ................................................................................................ 22

3.1.2 Competition Analysis (3Cs Analysis) .................................................................................... 27

3.2 STP Analysis .............................................................................................................................................. 31

3.2.1 Segment Marketing ....................................................................................................................... 31

3.2.2 Target Marketing ............................................................................................................................ 32

3.2.3 Positioning Marketing .................................................................................................................. 33

3.3 Marketing Mix Strategy ....................................................................................................................... 34

3.3.1 Product ................................................................................................................................................ 34

3.3.2 Price ...................................................................................................................................................... 35

3.3.3 Place ...................................................................................................................................................... 35

3.3.4 Promotion .......................................................................................................................................... 36

3.4 Sales Forecast/Profit Estimation .................................................................................................... 37

3.5 Marketing Expenses (Sale Incentive)............................................................................................ 43

3.6 Conclusion .................................................................................................................................................. 48

Chapter 4 Technical Feasibility Study ................................................................................ 50

4.1 Production and Operations Analysis............................................................................................. 50

4.1.1 Product Characteristics ............................................................................................................... 50

4.1.2 Location .............................................................................................................................................. 59

4.1.3 Facility Layout ................................................................................................................................. 60

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4.1.4 Facilities Management ................................................................................................................. 63

4.1.5 Equipment and tools..................................................................................................................... 63

4.2 Cost of investment.................................................................................................................................. 64

4.3 Investment cost ....................................................................................................................................... 65

4.4 Operating Cost.......................................................................................................................................... 70

4.5 Administration Cost .............................................................................................................................. 72

4.6 Management analysis ........................................................................................................................... 75

4.7 Conclusion .................................................................................................................................................. 78

Chapter 5 Financial Analysis ................................................................................................ 80

5.1 Initial investment ................................................................................................................................... 80

5.2 Source of funds ........................................................................................................................................ 80

5.3 Profit and loss statement .................................................................................................................... 81

5.4 Statement of Cash Flow ....................................................................................................................... 86

5.5 Balance Sheet ............................................................................................................................................ 91

5.6 Pay Back Period ....................................................................................................................................... 96

5.7 NPV and IRR .............................................................................................................................................. 97

Chapter 6 Risk Analysis.......................................................................................................... 99

6.1 Risk management analysis ................................................................................................................. 99

6.1.1 Competitor risk ............................................................................................................................... 99

6.1.2 External risk ..................................................................................................................................... 99

6.1.3 Internal risk ................................................................................................................................... 100

6.2 Financial Risk ........................................................................................................................................ 103

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6.2.1 Risk of sale decrease 5%, 10%, and 15% for 5 Years ................................................ 103

6.2.2 Risk of cost increase 5%, 10%, and 15% for 5 Years ................................................. 106

6.2.3 Risk of interest increase 5%, 10%, and 15% for 5 Years ......................................... 109

Chapter 7 Summary ............................................................................................................... 113

Reference ................................................................................................................................. 121

Appendix .................................................................................................................................. 122

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Content of figure

Figure 2.1 Milk shake products .................................................................................................................... 11



Figure 2.4 Milk shake products (Hilunch Team, n.d.) ....................................................................... 12

Figure 2.5 Beverage products ....................................................................................................................... 13



Figure 2. 8 Beverage products ...................................................................................................................... 14

Figure 2.9 Bakery and snake products ..................................................................................................... 15

Figure 2.10 Bakery and snake products .................................................................................................. 15

Figure 2.11 Bakery and snake products (PakBakery, 2006) ......................................................... 16

Figure 3.1 Wireless router............................................................................................................................. 26

Figure 3.2 Electricity ......................................................................................................................................... 26

Figure 3.3 Milkery positioning ..................................................................................................................... 33

Figure 3.4 Summary Net Incomes for Five Years ................................................................................ 42


Figure 4.2 Topping ............................................................................................................................................. 51

Figure 4.3 Cappuccino shake ......................................................................................................................... 52

Figure 4.4 Latte shake....................................................................................................................................... 52

Figure 4.5 Mocha shake ................................................................................................................................... 53

Figure 4.6 Café Americano shake ................................................................................................................ 53

Figure 4.7 Espresso shake (Maeyingzine, 2008) ................................................................................. 54

Figure 4.8 Green and Red Tea shake ......................................................................................................... 55

Figure 4.9 Milk Fruity syrup shake ............................................................................................................ 56

Figure 4.10 Beverage products .................................................................................................................... 57

Figure 4.11 Location .......................................................................................................................................... 59

Figure 4.12 First Floor Format ..................................................................................................................... 60

Figure 4.13 Second Floor Format................................................................................................................ 61

Figure 4.14 Organization Chart .................................................................................................................... 75

Figure 5. 1 Pay Back Period ........................................................................................................................... 96

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Content of table

Table 1.1 Level of monthly money received of Mae Fah Luang University’s students ........1

Table 1.2 Time frame work ...............................................................................................................................4

Table 3.1 The Report of all students in Semester 2/2008 .............................................................. 24

Table 3.2 The Report of all students in Semester 1/2009 .............................................................. 25

Table 3.3 Sale Forecast for Year 1 ............................................................................................................... 37





Table 3. 8 Marketing Expenses for Year 1............................................................................................... 43

Table 3.9 Marketing Expenses for Year 2 ................................................................................................ 44

Table 3.10 Marketing Expenses for Year 3 ............................................................................................. 45



Table 4.1 Cost of investment ......................................................................................................................... 64

Table 4.2 Investment cost ............................................................................................................................... 66

Table 4.3 Depreciation ..................................................................................................................................... 68

Table 4.4 Depreciation ..................................................................................................................................... 69

Table 4.5 Cost of goods sold .......................................................................................................................... 70

Table 4.6 Cost of labor ...................................................................................................................................... 71

Table 4.7 Overhead cost .................................................................................................................................. 71

Table 4.8 Administration Cost for Year 1 ................................................................................................ 72

Table 4.9 Administration Cost for Year 2 ................................................................................................ 72

Table 4.10 Administration Cost for Year 3 ............................................................................................. 73



Table 5.1 Profit and loss statement for Year 1 ..................................................................................... 81



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Table 5.6 Statement of Cash Flow for Year 1 ......................................................................................... 86




Table 5.10 Statement of Cash Flow for Year 5 ...................................................................................... 90

Table 5.11 Balance Sheet of Year 1 ............................................................................................................ 91





Table 5. 16NPV and IRR ................................................................................................................................... 97

Table 6.1 Summary of risk of sale decrease 5% for 5 years ........................................................ 103

Table 6.2 Summary of risk of sale decrease 10% for 5 years ..................................................... 104

Table 6.3 Summary of risk of sale decrease 15% for 5 years ..................................................... 105

Table 6.4 Summary of risk of cost increase 5% for 5 years ........................................................ 106

Table 6.5 Summary of risk of cost increase 10% for 5 years...................................................... 107

Table 6.6 Summary of risk of cost increase 15% for 5 years...................................................... 108

Table 6.7 Summary of risk of interest increase 5% for 5 years ................................................ 109

Table 6.8 Summary of risk of interest increase 10% for 5 years .............................................. 110

Table 6.9 Summary of risk of interest increase 15% for 5 years .............................................. 111

M i l k e r y

Chapter 1 Introduction

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Chapter 1 Introduction

1.1 Background and Significance of the Project

Although the economy is quite good, but when observed that the business in the

food and beverages continues to grow continuously, because food is one of the four

factors that need to consume for dairy life. The small businesses that do not require

much investment, you can store your own business as well. Nowadays, customers have

high tend to consumption product of milk but they have few choices to choose so we try

to create the project of Milkery to support their demand.

Our company is milk shop and bakery under name Milkery that located at front

of Mae Fah Luang University. We provide the dairy product, beverage, and bakery. We

try to produce our products by use the best ingredients and good for health that

appropriate with the customers that concern about healthy. We have many menus to

choose and price not expensive. The main menus are milk shake, hot/iced milk, hot/iced

coffee, cake and bakery. Our shop has many zones provide for customers to choose as

you like it. Customers can feel like they eating at home because our services are

familiarly and give the best for them because we think we like a customer to know what

customers want. Our main target group is students because Mae Fah Luang University

has student about 9,000 students, they also have luxury and funny lifestyle. So, we

provide the place that they can meet and relax together. And other target group is

working group such as lecturer they can come to relax at free time.

Level of monthly money received No. of respondent

1. 1,000 – 5,000 Baht 9

2. 5,000 – 10,000 Baht 68

3. Over 10,000 Baht 23

Total 100

Table 1.1 Level of monthly money received of Mae Fah Luang University’s students

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The table above shows the level of monthly money received of Mae Fah Luang

University’s students. From our finding information, we found that most of students

have the level of monthly money received about 5,000 – 10,000 baht. So, they have

more power purchase the products.

Our company concern about quality of product at first to make customer

satisfaction and customer become brand royalty and then we will get high number of

profit. And we train our staffs about services to be professional service provider. So we

can ensure the most of customer will satisfy with our products and services.

1.2 Project objectives

To study about trends of food and beverage business.

To study possibility of food and beverage business in the future.

To analyze the marketing and financial risk feasibility in food and beverage

business.

To analyze the SWOT and competitors of our business.

1.3 Benefits of Project

To know the benefit food and beverage business.

To know the trends of food and beverage business.

To know the SWOT and competitors of our business.

To know the process, plan and structure when doing business in real situation.

To know the methods for making high in sale food and beverage.

Able to apply the plan for getting high profit/return on investment.

Able to plan and manage the business to success.

The plan is most feasible and high success in real business that able to guide in

the future.

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1.4 Activities and Time frame of study

Operation Methods

November December January February

1 2 3 4 1 2 3 4 1 2 3 4 1 2

To establishing group and selecting

topic.

To search the information of food

and beverage industry.

To prepare the chapter 1

introduction of the project and

submission.

To prepare the chapter 2 industry

profile and submission.

To analyze the marketing feasibility

and prepare chapter 3 for

submission.

To study about technical feasibility


submission.

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To study about financial analysis and

prepare chapter 5 for submission.

To analyze about risk management


submission

To summary the project and submit

chapter 7

Recheck the report and submission

Prepare for presentation

Table 1.2 Time frame work

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Chapter 2 Industry Profile

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Chapter 2 Industry Profile

2.1 Nature of industry

Bakery culture of Western culture since prehistoric ago. It’s believed that

Switzerland people who live along the lake are initiative by led the various grains used

to roast first and then pounding with mortar mixed with water. Massage into flour after

that place on hot stones near the oven until cooked starch and get Starch plate frame.

Assumed it is the bread in the present. Subsequently discovered yeast by forgot flour to

several hours. When pick it to place on the hot stones. Dough sheet become to swell, soft

and fragrant to unbelievably. Assumed that this is the world’s first swell and soft piece

of bread according with the opinions of historians who believe that the baker would

have to at least 3000 BC. Because they found evidence that the slave dynasty of ancient

Egypt had forgotten the bread cubes while thresh flour. Baking began as a common

sequence Initiative by the ancient Greeks to the off larger oven for people took to bake

bread. Bread is making more progress when Romans people added various kinds of

ingredients into the dough with oil, such as honey, which is the beginning of the word

PASTRY. In the year 1492 AD bakery industry was the American Revolution by put

cocoa into the pastry so it be popular for a lot of people in the 17th century and 18th So

it has the distinction between word of Pastry and Baker clearly by the temperature and

yeast that used in baking as a determinant. For Thailand Bakery became known for the

introduction of Thaothongkeepma or Donya thoer dor ke mar wife’s Jao pra wichayen

(Year 2271-2275) and call a dessert from process that baking.

Cake is a term with a long history (the word is of Viking origin, from the Old

Norse kaka) and denotes a baked flour confection sweetened with sugar or honey; it is

mixed with eggs and often, but not invariably, with milk and fat; and it has a porous

texture from the mixture rising during cooking. It is not surprising that the frontiers

between Cake and bread, biscuit and bun are indistinct. The progenitor of all is bread in

its simplest form. As techniques for baking and leavening developed and eating patterns

changed, what were originally regarded as forms of bread came to be seen as categories

of their own and named accordingly. Certain Roman breads, enriched with eggs and

butter, must have achieved a cakelike consistency and thus approached one of these

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indistinct frontiers. Europe and places such as North America where European

influence is strong have always been the center of cakes. One might even draw a line

more tightly, form English-speaking areas. No other language has a word that means

exactly the same as the English ‘cake.' The continental European gateau and torte often

contain higher proportions of butter, eggs and enriching ingredients such as chocolate,

and often lean towards pastry rather than cake. Central and East European items such

as baba and the Easter kulich are likewise different. The western tradition of cakes

applies little in Asia. In some countries western-style cakes have been adopted on a

small scale, for example the small sponge cakes called kasutera in Japan. But the 'cakes'

which are important in Asian are quite different from anything occidental for examples,

see moon cakes and rice cakes of the Philippines. The history of cakes goes a long way

back. Among the remains found in Swiss lake villages were crude cakes make from

roughly crushed gains, moistened, compacted and cooked on a hot stone. Such cakes can

be regarded as a form of unleavened bread, as the precursor of all modern European

baked products. Some modern survivors of these mixtures still go by the name ' cake ',

for instance oatcakes, although these are now considered to be more closely related to

biscuits by virtue of their flat, thin shape and brittle texture. Ancient Egypt was the first

culture to show evidence of true skill in baking, making many kinds of bread including

some sweetened with hone. The Greeks had a form of cheesecake and the Romans

developed early versions of fruitcakes with raisins, nuts and other fruits. These ended

up in 14th century Britain. Chaucer mentions immense cakes made for special

occasions. One was made with 13 kilograms of flour and contained butter, cream, eggs,

spices, currants and honey. Moulds, in the form of cake hoops or pans have been used

for forming cakes since at least the mid-17th century. Most cakes were eaten

accompanied by a glass of sweet wine or tea. At large banquets, elaborately decorated

cakes might form part of the display, but would probably not be eaten. By the mid-19th

century the French were including a separate "sweet" course at the end of the meal

which might include 'gateau'. During the 19th century, technology made the cake-

baker's life much easier. The chemical raising agent bicarbonate of soda, introduced in

the 1840's, followed by baking powder (a dry mixture of bicarbonate of soda with a

mild acid), replaced yeast, providing a greater leavening power with less effort. Another

technology breakthrough was more accurate temperature controlled ovens. In most of

NW Europe and North America a well-developed tradition of home baking survives,

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with a huge repertoire of cake recipes developed from the basic methods. The ability to

bake a good cake was a prized skill among housewives in the early to mid-20th century,

when many households could produce a simple robust, filling 'cut and come again' cake,

implying abundance and hospitality (Bakery House, n.d.).

2.2 Situation of Industry

In the periods time around 10-15 years ago. Bakery and cake become popular in

Thailand, Thai people want to eat and fun with it. So there are many milk and bakery

shop that affecting to our company so Our Company want to give good quality and not

expensive for all of people can go to enjoy and happy with us. We will provide a new

kind of food and beverage by different equipment and adapt technology into our service

for customer get benefits and satisfy when come to join with us more than others. And

we have many promotions to attraction customer and behavior of them.

2.2.1 Competition Analysis

Although our product target consumers group that student of Mae Fah Luang

University and in the aged 18-25 year and targeting market will be trade inside place

more than outside place (as can see more details in chapter 3). So, we have many

competitors in place as follow:

Direct competitors:

Nom Na Mor

Nom Chompoo

Kin Nom Kan

Indirect competitors:

Boss Coffee

Banoffe

D-jang Bakery

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2.3 Product and Service

Product

Milkery has product both milk and milk shake a variety of flavors, which contain

high quality ingredient and fresh, clean and organic raw material such as cocoa, coffee,

chocolate, iced tea, milk tea, green tea, o-rio and fruits. Decorate raw material have

whipping cream, brown scales, jelly, o-rio, o-jo, pokki and fruits. Bakery has cake, pie

and bread.

Service

Nowadays service is the contribution to attract the customers. Milkery provides

catering that the customer can select milk and bakery which they want. We offer menu

that customers can choose by themselves, it depends on the price that we agreed. It

suits for meeting area. The shop is decorated in modern style. There are reading books

corner and Wi-Fi service. Customers can choose milk and bakery by themselves or it is

called self-service. We train the employees and concern about service mind. Milkery

opened in everyday (17:00 pm. – 23:00 pm.)

At Milkery shop de decorate around shop to appropriate for relax time to

customer. We decorate in the shop with lovely style and have many zones for customer

seat.

- We provide the zone various game toys for customer can choose to play.

- We provide zone for listen to the music.

- And we have a zone for reading we provide many kind of book magazine for

customer.

- For who love movie we have zone for watching movies

So customer can choose which zone that they want. And our shop we provide

wireless internet for customer if customers want to connect customer can tell staff and

staff will give password of wireless internet. And we hope customer feel relax when

they come to Milkery and satisfy with our product and service.

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Milk Shake

Figure 2.1 Milk shake products


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Figure 2.4 Milk shake products (Hilunch Team, n.d.)

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Beverage

Figure 2.5 Beverage products


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Figure 2. 8 Beverage products

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Bakery & Snack

Figure 2.9 Bakery and snake products

Figure 2.10 Bakery and snake products

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Figure 2.11 Bakery and snake products (PakBakery, 2006)

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2.4 Vision of Milkery

Within 5 years is the shop milk and bakery is famous and receive accept quality

and service be number one of the shop Milkery. And we created Milkery for attract our

customers to meet the best of service, atmosphere, cleanliness, and quality of products.

The key thing, we wish the customers have smile and to be happy when come to our

café or buy our products.

2.5 Mission

We are producer of milk and bakery to provide professional services with fresh

milk and bakery quality in reasonable price and taking into account the health of

consumers are important. And we provide good service, atmosphere, cleanliness and

consistent with the needs of consumers. Moreover control manufacturer of milk and

bakery and provide good quality with modern machinery and fresh raw materials.

Maintain cleanliness in production lines and facilities.

2.6 Business Strategy

2.6.1 Corporate Strategy

1. Growth Strategies: Milkery using both types of growth strategies are

Concentration Growth Strategy

Our company using a Concentration Growth Strategy when we see opportunities

to market. Our company is dedicated to survey, marketing and manufacturing to

produce our products to meet customer needs. We will focus on growth in the vertical

by which we will be both the owner and operator from input, to process or channels,

and into the finished product. Because if we can grow our business as planned. This

means that we don’t need to purchase raw materials or not through other supply chains.

This is useful in helping the business to cover the full range.

Diversification Growth Strategy

Our company also using a Diversification Growth Strategy by focus on

Conglomerate Diversification to expand our business to other types of products

involved with an existing business. We will bring skills and expertise, or property used

in business. Because of Milkery can make more diverse of products and customers.

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2. Stability Strategy

Milkery try to apply profit strategy into business because of if our business can

reduce the costs of unnecessary such as advertising costs, wages, or expenses are

miscellaneous. Our business will profit increase but the strategy that we use this grant

does not mean that our quality will go down. We continue to develop maintain the

standard of our product to serve to customers.

3. Retrenchment Strategies

Milkery will use this grant strategy only during the economic downturn or the

shop's sales dropped Strategies which reduce the activity of this grant or production

process. Reducing the size of the business by adjust the restructuring to more fit.

Another way is to cut various facilities numerous than necessary away. We also can cut

costs the survey cost with other expenses. That's it; our business will continue to be.

And become a solid business in the future.

2.6.2 Business Level

The aim of our company is try to improve positioning in competition market of

milk shop. Milkery is developing strategy under objective, corporate strategy and

business strategy by aim to increase profit of produce and sell products.

Competitive advantages

Milkery has differentiation from other mike shop because we train our

employees to be professional service provider and concern about service mind to make

customer satisfy and delight. About products, we try to make our product has feature

such as in each step of production are cleanliness, use only high quality of ingredients.

All of menus are special recipes and we try to think new menu all the time to provide

many choices for customers. Milkery will make reputation of the firm by sell only high

quality of products but low price.

Cost leadership

Set the strategy that aim to make standardized products by set the price of our

products in moderate price to attract more customers that price-sensitive to get high

volume of profit. Although our company set price in moderate but we also use

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ingredients in the same quality not lower than our standard. And services also provide

to customers follow our pattern.

Quick-response

Because of our business have three competitors in location so we have challenge

with competitors in term of number of customer and sales. Then Milkery has quick

response of customer requirement. We try to update our product in current situation to

support customer need and make our products different from other competitors.

Focus

The main target market of Milkery is student because we try to focus small group

of customer to respond their need and make them satisfy with our products and

services. And in the future we plan to expand our target market to cover all types of

customer.

2.6.3 Functional Level Strategy

We try to use resources of company to get highest efficiency by each department

will develop their strategy of department by themselves under concept strategy of

business strategy. All of departments are part of customer value and competitive

advantage by concern about quality, efficiency and value delivery to customers.

Marketing

Our company use marketing by concern about customer satisfaction and use

appropriate cost and our strategy is quick respond in every situation. And we plan to

develop our products and services in every year.

Production

Operations or production of Milkery usually produce products that match with

customers want or require to reducing waste cost and products can apply to demand of

customers rapidly.

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Research and development

We have complained papers provide to customers and we try to do research and

get complains from customer to blend customer want with capacity of our company for

creates new menus or products.

Accounting

Milkery has finding information and news of current trend for easy to making

decision, reduce expense to compile information, and information also available.

Financial

We set strategy by concern with survival, growth, and flexible about financial of

our business to make maximize profit and get return on investment rapidly.

Human resource management

Our company chooses or recruits only employees who have characteristic of

service provider that to say they must love to give service. They must know about how

to give service to customer and know how to make customer satisfy. Milkery also gives

train course for employees to appropriate with their work ( Manotungvorapun N., n.d.).

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Chapter 3 Market Feasibility Study

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Chapter 3 Market Feasibility Study

3.1 Market Analysis

3.1.1 General Environment Analysis

The general environmental analysis in our business planning normally refers to

conditions and internal - external factors to our company, outside of our company's

control that might affect its sales, market, costs, and so forth. The internal environment

is the following; culture and behavior of our employees, management strategies/tactics,

and others. The external environment contains consumers/customers, suppliers,

competitors and other factors affecting the operation of a certain business which is

uncontrollable. These are often grouped into kinds of factors, such as the PEST analysis,

which stands for Social, Technology, Economic, and Political factors that might affect

our company. They might be worldwide trends, or specific local market trends, or

anything in between.

Milkery looking at the specific individual context of our company, market,

strategy and resources, and guesses how these factors might affect our company in the

future (Tim, 2007).

Political Factors

According to the conflict between red shirt and yellow shirt, it has effect to

business and investment side. From that conflict, most people would feel disgusted and

don’t want to do anything. So, the government has a policy to reduce the loan rate and

personal income tax rate to help small and medium enterprise to be continuing. And

also we should change the crisis as an opportunity by creating promotions for attractive

the customers come to our shop (Ministry of Finance, 2010).

Economic Factors

The economy in Chiang Rai is the growth rate seen by the business such as hotel,

restaurant, entertainment, and etc. According to Chiang Rai Commercial Department

told that the GPP of provinces totaled 40,104.36 million baht, increased from the

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previous year 9.38% and income per year 38,332 baht. In 2007, food and beverage

industry has 1,790.59 million baht (about 4.46%). Nowadays, the hotel and restaurant

industry is becoming popular than the previous year. From the above information told

that the level of consumption of Rai increased. We meet the opportunity that it should

be run business is becoming popular. Milkery will generate income to local community

and grow economic of province (Commercial Department, 2007).

Social Factors

The social of Mae Fah Luang University students have become more luxury and

materialism. From the table below is showing the number of students of Mae Fah Luang

University from 2008 to 2009 (as can see Table 3.1 and 3.2). In addition we found that

younger people love to drink milk. Thus Milkery focuses on the customers who like milk

are a favorite and change the way to serve milkshake to customer rather than simply

milk. This cause that Milkery wants to makes the first impression about new style of

milk and makes customer satisfaction (Mae Fah Luang University, 2009).

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The Report of all students in Semester 2/2008 separate by Schools, Degree, and Gender

Table 3.1 The Report of all students in Semester 2/2008

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The Report of all students in Semester 1/2009 separate by Schools, Degree, and Gender

Table 3.2 The Report of all students in Semester 1/2009

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Technology Factors

Milkery has the technology to use in our shop such as the inside area of our shop

provide the wireless for the customer who come to shop, almost appliances in our shop

is the electricity because we want to fast deliver and serve the products to customers

and make them feel happy with our services. So, our shop has more competitive

advantages than other competitors.

Figure 3.1 Wireless router

Figure 3.2 Electricity

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3.1.2 Competition Analysis (3Cs Analysis)

Competitor Analysis

Direct competitor of Milkery has 3 competitors including with;

1. Nom Na Mor

Product: foods, milk products, and snacks

Price: food over 49, milk and bread 10 – 30 baht

Place: at front of Mae Fah Luang University

Promotion: no

Monthly sales: 40,000 – 50,000 baht

Size of shop: 2 x 6 meters

Number of table: 13 tables

Customer capacity: 44 people

Facility: magazine, toilet, car park, TV

This is the strong competitor of Milkery because they provide product nearby

Milkery but lower price and quality than our company. Nom Na Mor also has weakness

about services because they have not enough employees when many customers coming

and haven’t enough car park for customers. So, this is the opportunity to Milkery

because our employees are trained and enough to serve services to customers. Strength

of Nom Na Mor is cheaper price but if compare with services that customers get from

Milkery it can make customer more satisfaction than Nom Na Mor.

2. Nom Chompoo

Product: foods, milk products, and snacks

Price: food 29 – 69 baht, milk product 10 – 49 baht

Place: behind Fah Thai Market

Promotion: no


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Size of shop: 4.5 x 7 meters



Facility: wood toys, toilet, car park, DVD player, TV

This shop is provide beverage and snack to customer but about price quite

expensive than other shop around front of Mae Fah Luang University. Nom Chompoo

has slow serving products and services because they have only 3 employees in the shop.

The size of shop is medium sometimes not enough table for customers. So, those are

advantages for Milkery to attract customer because products of our company are lower

price than Nom Chompoo and better service.

3. Kin Nom Kan,

Product: milk products and bread

Price: 10 – 35 baht


Promotion: no





Facility: take photo corner, toilet, car park

They provide product similar to other shop in lowest price and medium

quality but Kin Nom Kan amount of customers less than Milkery because the most of

customers concern about quality of products and services of shop. So, Kin Nom Kan just

has little influence with our company that to say Milkery has advantage over Kin Nom

Kan both of products and services.

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Indirect competitor of Milkery has 3 competitors including with;

1. Boss Coffee

Product: coffee and tea



Promotion: no

Monthly sales: 35,000-50,000 baht




Facility: wifi, newspaper, magazine

They provide products of beverage. Their beverages are good taste and they

have many customers in each day. But beverages of Boss Coffee are expensive this is our

opportunity to increase penetration of beverage market.

2. Banoffe

Product: milk products and bakery



Promotion: no




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Facility: take photo corner, toilet, car park

Although Banoffee have good location and their style are modern, but they set

the high price of products than other shop that make them can’t attract more customer.

So this is advantage of Milkery to attract customers from Banoffee who love to drink

same quality of coffee but lower price.

3. D-Jang Bakery

Product: milk, coffee, bakery

Price: bakery 13 up baht, beverage 20 – 65 baht


Promotion: for 10 cups free 1 cup

Monthly sales: 40,000-60,000 baht




Facility: wifi, newspaper, magazine, cartoon

They have narrow length of product because they only sell bakery and the

main product of D-Jang Bakery is cake. They have table only 4-5 tables provide for

customer so the opportunity of Milkery because our company also sell bakery and

beverage that make customers has many choices to choose and the tables are available

enough to serve customers.

Customer Analysis

Target group of Milkery is student of Mae Fah Luang University because of the

location of our shop is front of Mae Fah Luang University. In 2008, Mae Fah Luang

University has student about 8,269 students. For 2009, the number of students of Mae

Fah Luang University increasing to 9,627 students, and also likely to increase in the next

year. Most of them always look for eating in the evening or night at the shop has

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provided match with their need. And they also meeting with their friends or working

together during eating at the shop. Majority of students have high power to purchase to

meet their need but they have few choices to choose products and services that high

quality and suitable for them at the front of university because they don’t want to go far

from their home or dormitory. And nowadays the trend of students concern about their

health so they will try to consumption healthy product. In sum, Milkery is the shop that

suitable for customer because we provide products and services in high quality and our

products are good for their health that meets with student requirement.

Competitive Analysis

At the front of Mae Fah Luang University has high competitive in the market

because they have the same target group that is student. Most of our competitors have

the weaknesses about the narrow area of shop and have not enough car park for

customers. So, when we know the status, strengths, and weaknesses of our competitors.

Milkery can plan strategy that concern about products and services of high quality and

healthy to make word of mouth by using the customers to advertise our company and

then Milkery also has brand royalty. And we will try to set our plan and strategy able to

change along with current situation and trend in easily to provide products and services

for support customers requirement so that make our company increase number of sale

and profit.

3.2 STP Analysis

3.2.1 Segment Marketing

Milkery is the shop that provide product of fresh milk and bread which is the

product for consumer and benefits for health and body. So, Milkery was providing about

segment by use criterion as follow.

1. Demographic:

- Unlimited gender.

- Limited ages.

- Several of Career there are student.

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2. Geography:

- Area around Mae Fah Luang University.

- Area around Fah Thai Market.

- Dormitory of university student.

3. Behavior:

- Readiness of money to purchase.

- Both of steady customers and irregular customer.

- Both of already have experience and don’t have experience to drink milk or was

consumer of milk shop.

- Loyalty to the product.

- Intention to purchase.

4. Psychology:

- Lifestyle of people who concern about healthy and consumption.

- Personality was healthy and looks good.

3.2.2 Target Marketing

Our company concern about activities of shop to respond about requirements,

quality, cost-effective and economizes of consumer and make consumer classify by

concern to serving their specific needs and demand of customer in each group. So the

target that we should to follow is demographic segmentation because comfortable and

easy to enhance our product as follows:

Main Target Marketing: student both of high school and university.

Secondary Target Marketing: people all of proper for gender and ages who live in

area around Milkery.

Future Target Marketing: people who interesting in franchise business with

Milkery.

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3.2.3 Positioning Marketing

Figure 3.3 Milkery positioning

The positioning of Milkery is base on high quality and high price that make the

customer come to our shop. Milkery has product both milk and milk shake a variety of

flavors, which contain high quality ingredient and fresh, clean and organic raw material.

Nowadays, customers want to buy the product that has high quality and health. The

product of our company is fresh milk and bread in every, more quantity and variety of

menus to choose and good atmosphere because the shop decorated in modern style that

the customer can dine in the shop which is exactly different from other company. There

are many facilitates in the shop such as; reading books corner and Wi-Fi service, living

zone and choose which more zone that they want. That make the customer feel good as

aristocracy agree. So, Milkery provided many quality products to increase satisfaction to

our customers. And our company gives the best thing to our customer.

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3.3 Marketing Mix Strategy

3.3.1 Product

Our company concern about healthy business because our company aware of

business opportunities in terms of health. Nowadays, consumer focused more on health.

So there is the reason to do Milkery. Inside of logo of shop by Milkery; the word form

milk + bakery is means drinking fresh milk and eat bakery at the shop and with relaxing

in our shop.

Hot fresh milk

Classic Jelly Milkshake

Old Fashioned Chocolate Milkshake

Banana Chocolate Milkshake

I Love Strawberries Milkshake

Classic Vanilla Milkshake

Purple Cow Milkshake

Chocolate Cherry Milkshake

Chocolate Peanut Butter Milkshake

Bread egg custard

Bread egg custard orange

Bread egg custard grebe

Bread egg custard vanilla

Bread egg custard chocolate

Etc.

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3.3.2 Price

“Milkery” set the same price for general products because we are new shop in

this business. And including to set up price to promote in some period of time for

stimulate our net sales such as, in the Birthday, Valentine day or other important day.

Hot fresh milk 25

Classic Jelly Milkshake 30

Old Fashioned Chocolate Milkshake 30

Banana Chocolate Milkshake 30

I Love Strawberries Milkshake 35

Classic Vanilla Milkshake 30

Purple Cow Milkshake 30

Chocolate Cherry Milkshake 35

Chocolate Peanut Butter Milkshake 35

Bread egg custard 15

Bread egg custard orange 15

Bread egg custard grebe 15

Bread egg custard vanilla 15

Etc.

3.3.3 Place

“Milkery Shop” is the milk and bakery shop and this product is appropriate for

people e who loves healthy and the group of people who loves drink milk. So we choose

to set up the shop at in front of the way to entrance to university and near the market

this is the good location for our business mike and bake shop because it comfortable for

customer to come and easy to see our shop because everyone who study in university

will see our always when they will entrance to university. And we try to show the name

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of shop and our product to easy to remember and easy to understand that our shop sale

about milk and bakery.

3.3.4 Promotion

“Milkery Shop” is locate near the university so we try to represents the various

aspect of marketing communication that is the communication of information about the

product of Milkery shop with the goal of generating a positive customer response. So we

try to provide a good product for customer satisfaction that is the important thing to

help to promote our shop which calls that “word of mount”. Because student who

studies in the university they have a group of friends when they come to the shop we

will provide the special sale promotion to them and have a coupon for collect to some

thank gift.

Sale Promotion

Our company has a lot of promotion to attract customer and get more benefit

when come and join with our company such as:

For person who join our café alone and

Order menu more than 100 bath you can get discount rate 3%


For lover, couple or buddy who join our café and

Order menu more than 300 bath you can get discount rate 3% and Rose flower

or heart beat candy

Order menu more than 500 bath you can get discount rate 5% and Rose flower

or hear beat candy

For team, Group or People more than 3 people and



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3.4 Sales Forecast/Profit Estimation

Year 1 January February March April May June July August September October November December Total

Sale 596,010.00 556,890.00 502,500.00 469,500.00 431,040.00 503,670.00 513,690.00 694,350.00 753,690.00 677,010.00 852,450.00 883,530.00 7,434,330.00

Cost 67,050.00 72,960.00 66,330.00 65,340.00 57,000.00 60,420.00 63,330.00 75,360.00 85,350.00 71,970.00 88,080.00 91,260.00 864,450.00

Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00

Other expense 10,000.00 10,000.00 10,000.00 10,000.00 10,320.00 12,100.00 14,242.00 11,034.00 16,424.00 13,123.00 11,231.00 12,123.00 140,597.00

EBIT 515,412.00 470,382.00 422,622.00 390,612.00 360,172.00 427,602.00 432,570.00 604,408.00 648,368.00 588,369.00 749,591.00 776,599.00 6,386,707.00

Interest paid 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96

Taxable income 505,678.67 460,648.67 412,888.67 380,878.67 350,438.67 417,868.67 422,836.67 594,674.67 638,634.67 578,635.67 739,857.67 766,865.67 6,269,907.04

Taxes (15%) 75,851.80 69,097.30 61,933.30 57,131.80 52,565.80 62,680.30 63,425.50 89,201.20 95,795.20 86,795.35 110,978.65 115,029.85 940,486.06

Net income 429,826.87 391,551.37 350,955.37 323,746.87 297,872.87 355,188.37 359,411.17 505,473.47 542,839.47 491,840.32 628,879.02 651,835.82 5,329,420.98

Table 3.3 Sale Forecast for Year 1

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Sale 646,314.00 626,812.00 552,527.00 499,513.00 451,073.00 512,456.00 553,215.00 621,456.00 689,324.00 701,515.00 912,352.00 871,241.00 7,637,798.00

Cost 69,150.00 67,210.00 63,220.00 60,250.00 59,150.00 61,250.00 63,350.00 71,240.00 73,390.00 76,970.00 87,560.00 81,240.00 833,980.00

Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00

Other expense 13,210.00 11,300.00 12,410.00 10,000.00 10,020.00 11,760.00 13,242.00 15,352.00 14,214.00 13,877.00 17,431.00 10,123.00 152,939.00

EBIT 560,406.00 544,754.00 473,349.00 425,715.00 378,355.00 435,898.00 473,075.00 531,316.00 598,172.00 607,120.00 803,813.00 776,330.00 6,608,303.00

Interest paid 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96

Taxable income 550,672.67 535,020.67 463,615.67 415,981.67 368,621.67 426,164.67 463,341.67 521,582.67 588,438.67 597,386.67 794,079.67 766,596.67 6,491,503.04

Taxes (15%) 82,600.90 80,253.10 69,542.35 62,397.25 55,293.25 63,924.70 69,501.25 78,237.40 88,265.80 89,608.00 119,111.95 114,989.50 973,725.46

Net income 468,071.77 454,767.57 394,073.32 353,584.42 313,328.42 362,239.97 393,840.42 443,345.27 500,172.87 507,778.67 674,967.72 651,607.17 5,517,777.58


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Sale 871,247.00 792,114.00 613,515.00 512,415.00 503,636.00 546,449.00 616,738.00 797,532.00 741,738.00 692,626.00 871,511.00 679,261.00 8,238,782.00

Cost 72,050.00 70,960.00 60,330.00 52,340.00 50,510.00 54,167.00 59,141.00 71,415.00 69,261.00 65,161.00 73,510.00 63,140.00 761,985.00

Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00

Other expense 14,672.00 13,110.00 13,151.00 11,241.00 10,415.00 12,150.00 12,958.00 14,166.00 18,372.00 16,251.00 15,241.00 11,168.00 162,895.00

EBIT 780,977.00 704,496.00 536,486.00 445,286.00 439,163.00 476,584.00 541,091.00 708,403.00 650,557.00 607,666.00 779,212.00 601,405.00 7,271,326.00

Interest paid 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96

Taxable income 771,243.67 694,762.67 526,752.67 435,552.67 429,429.67 466,850.67 531,357.67 698,669.67 640,823.67 597,932.67 769,478.67 591,671.67 7,154,526.04

Taxes (15%) 115,686.55 104,214.40 79,012.90 65,332.90 64,414.45 70,027.60 79,703.65 104,800.45 96,123.55 89,689.90 115,421.80 88,750.75 1,073,178.91

Net income 655,557.12 590,548.27 447,739.77 370,219.77 365,015.22 396,823.07 451,654.02 593,869.22 544,700.12 508,242.77 654,056.87 502,920.92 6,081,347.13


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Sale 716,162.00 781,516.00 571,616.00 541,251.00 582,615.00 738,393.00 861,992.00 634,617.00 973,261.00 699,515.00 764,167.00 912,415.00 8,777,520.00

Cost 67,050.00 65,816.00 51,783.00 49,261.00 54,167.00 62,476.00 71,160.00 61,717.00 85,717.00 66,510.00 67,161.00 83,156.00 785,974.00

Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00

Other expense 12,154.00 11,515.00 12,561.00 13,161.00 10,740.00 14,161.00 15,161.00 10,000.00 18,116.00 10,619.00 12,411.00 15,162.00 155,761.00

EBIT 633,410.00 700,637.00 503,724.00 475,281.00 514,160.00 658,208.00 772,123.00 559,352.00 865,880.00 618,838.00 681,047.00 810,549.00 7,793,209.00

Interest paid 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96

Taxable income 623,676.67 690,903.67 493,990.67 465,547.67 504,426.67 648,474.67 762,389.67 549,618.67 856,146.67 609,104.67 671,313.67 800,815.67 7,676,409.04

Taxes (15%) 93,551.50 103,635.55 74,098.60 69,832.15 75,664.00 97,271.20 114,358.45 82,442.80 128,422.00 91,365.70 100,697.05 120,122.35 1,151,461.36

Net income 530,125.17 587,268.12 419,892.07 395,715.52 428,762.67 551,203.47 648,031.22 467,175.87 727,724.67 517,738.97 570,616.62 680,693.32 6,524,947.68


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Sale 1,151,662.00 949,491.00 891,600.00 616,705.00 656,175.00 671,617.00 716,780.00 951,790.00 617,895.00 961,816.00 851,899.00 975,910.00 10,013,340.00

Cost 81,690.00 78,110.00 74,156.00 51,670.00 52,899.00 55,161.00 64,177.00 79,728.00 51,982.00 80,051.00 72,188.00 82,682.00 824,494.00

Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00

Other expense 17,161.00 16,172.00 14,166.00 11,516.00 10,415.00 10,838.00 12,167.00 15,161.00 13,514.00 17,162.00 14,111.00 19,923.00 172,306.00

EBIT 1,049,263.00 851,661.00 799,730.00 549,971.00 589,313.00 602,070.00 636,888.00 853,353.00 548,851.00 861,055.00 762,052.00 869,757.00 8,973,964.00

Interest paid 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96

Taxable income 1,039,529.67 841,927.67 789,996.67 540,237.67 579,579.67 592,336.67 627,154.67 843,619.67 539,117.67 851,321.67 752,318.67 860,023.67 8,857,164.04

Taxes (15%) 155,929.45 126,289.15 118,499.50 81,035.65 86,936.95 88,850.50 94,073.20 126,542.95 80,867.65 127,698.25 112,847.80 129,003.55 1,328,574.61

Net income 883,600.22 715,638.52 671,497.17 459,202.02 492,642.72 503,486.17 533,081.47 717,076.72 458,250.02 723,623.42 639,470.87 731,020.12 7,528,589.43


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Summary Net Income

Figure 3.4 Summary Net Incomes for Five Years

-

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

6,000,000.00

7,000,000.00

8,000,000.00

Year 1 Year 2 Year 3 Year 4 Year 5

Summary Net income For Five Years

Net

Income

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3.5 Marketing Expenses (Sale Incentive)

We have commission that evaluation by sale x 0.01 to created inspiration staff and employees, discount rate and souvenir to

attraction customer and leaflet to promote and advertising our company.

Table 3. 8 Marketing Expenses for Year 1


Selling expense

Discount sale 12,087.00 14,350.00 13,425.00 14,700.00 16,270.00 19,670.00 17,910.00 22,125.00 18,743.00 27,304.00 28,124.00 31,128.00 235,836.00

Commission 5,960.10 5,568.90 5,025.00 4,695.00 4,310.40 5,036.70 5,136.90 6,943.50 7,536.90 6,770.10 8,524.50 8,835.30 74,343.30

Total Selling Expense 18,047.10 19,918.90 18,450.00 19,395.00 20,580.40 24,706.70 23,046.90 29,068.50 26,279.90 34,074.10 36,648.50 39,963.30 310,179.30

Advertising Expense

Leaflet 500.00 500.00 - - 500.00 - 100.00 100.00 100.00 100.00 100.00 100.00 2,100.00

Souvenir 1,000.00 300.00 200.00 200.00 500.00 300.00 100.00 1,000.00 500.00 250.00 200.00 400.00 4,950.00

Other 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 3,600.00

Total Advertising Expense 1,800.00 1,100.00 500.00 500.00 1,300.00 600.00 500.00 1,400.00 900.00 650.00 600.00 800.00 10,650.00

Total Marketing Expense 19,847.10 21,018.90 18,950.00 19,895.00 21,880.40 25,306.70 23,546.90 30,468.50 27,179.90 34,724.10 37,248.50 40,763.30 320,829.30

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Selling expense

Discount sale 14,087.00 17,350.00 15,425.00 16,700.00 19,270.00 20,670.00 24,910.00 19,125.00 26,743.00 23,304.00 28,924.00 29,928.00 256,436.00

Commission 6,463.14 6,268.12 5,525.27 4,995.13 4,510.73 5,124.56 5,532.15 6,214.56 6,893.24 7,015.15 9,123.52 8,712.41 76,377.98


Advertising Expense

Leaflet 1,000.00 - - 500.00 500.00 - 100.00 100.00 500.00 100.00 100.00 - 2,900.00

Souvenir 800.00 350.00 100.00 200.00 400.00 250.00 300.00 700.00 200.00 450.00 250.00 100.00 4,100.00

Other 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 3,600.00

Total Advertising Expense 2,100.00 650.00 400.00 1,000.00 1,200.00 550.00 700.00 1,100.00 1,000.00 850.00 650.00 400.00 10,600.00


Table 3.9 Marketing Expenses for Year 2

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Selling expense

Discount sale 15,105.00 14,050.00 15,425.00 18,050.00 21,570.00 20,670.00 19,800.00 22,140.00 23,690.00 19,650.00 26,090.00 29,890.00 246,130.00

Commission 8,712.47 7,921.14 6,135.15 5,124.15 5,036.36 5,464.49 6,167.38 7,975.32 7,417.38 6,926.26 8,715.11 6,792.61 82,387.82


Advertising Expense

Leaflet 500.00 - 300.00 - 100.00 - 100.00 - 500.00 - - - 1,500.00

Souvenir 650.00 400.00 250.00 200.00 300.00 300.00 150.00 150.00 250.00 300.00 100.00 500.00 3,550.00

Other 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 3,600.00

Total Advertising Expense 1,450.00 700.00 850.00 500.00 700.00 600.00 550.00 450.00 1,050.00 600.00 400.00 800.00 8,650.00


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M i l k e r y


Selling expense

Discount sale 18,900.00 19,250.00 21,560.00 19,230.00 23,220.00 19,230.00 21,190.00 19,760.00 23,500.00 20,990.00 19,250.00 22,210.00 248,290.00

Commission 7,161.62 7,815.16 5,716.16 5,412.51 5,826.15 7,383.93 8,619.92 6,346.17 9,732.61 6,995.15 7,641.67 9,124.15 87,775.20


Advertising Expense

Leaflet 600.00 100.00 - - 300.00 100.00 100.00 - - 300.00 200.00 - 1,700.00

Souvenir 200.00 220.00 300.00 200.00 350.00 200.00 280.00 230.00 350.00 300.00 200.00 400.00 3,230.00

Other 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 3,600.00

Total Advertising Expense 1,100.00 620.00 600.00 500.00 950.00 600.00 680.00 530.00 650.00 900.00 700.00 700.00 8,530.00



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M i l k e r y


Selling expense

Discount sale 23,990.00 21,250.00 19,290.00 22,730.00 23,720.00 18,780.00 21,990.00 19,430.00 23,940.00 19,220.00 28,940.00 24,320.00 267,600.00

Commission 11,516.62 9,494.91 8,916.00 6,167.05 6,561.75 6,716.17 7,167.80 9,517.90 6,178.95 9,618.16 8,518.99 9,759.10 100,133.40


Advertising Expense

Leaflet 300.00 250.00 100.00 - - - - 650.00 - - 450.00 150.00 1,900.00

Souvenir 450.00 230.00 150.00 330.00 400.00 150.00 270.00 150.00 370.00 200.00 500.00 500.00 3,700.00

Other 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 3,600.00

Total Advertising Expense 1,050.00 780.00 550.00 630.00 700.00 450.00 570.00 1,100.00 670.00 500.00 1,250.00 950.00 9,200.00



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M i l k e r y

3.6 Conclusion

From our analysis in Chapter 3 Marketing Feasibility study can tell that this

chapter talks about the general environment analysis such as social, technology,

economic, environment, and political factors. These factors might be both internal and

external factors, it is the important factors that effect to our company and we must to

concern on those factors. Next, the competition of our company; our main competitors

such as Nom Na Mor: Because this shop has quite same quality and lower price than

company, but their areas and employees not enough to serve the customers. So, when

we know about strength and weakness of our competitor, we can set the strategies by

provide products and services in high quality to created word of mouth to promote our

company. And then, the target market of our company; we focus on the customers who

are students of MFU, so the customer easy to access. For the promotion of our company;

we set discount rate and give souvenir to be promote and attract more customers. Our

company has high of net income but spent money to investment and advertising to low.

In addition our company has increase net income in every year. So it makes the owner

and investor can gain more money and get more benefit from our company.

M i l k e r y

Chapter 4 Technical Feasibility Study

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M i l k e r y

Chapter 4 Technical Feasibility Study

4.1 Production and Operations Analysis

4.1.1 Product Characteristics

Our products can divided into 3 main types:

1. Milk shake products

2. Beverage products

3. Bakery and Snack products

Milk shake products

Milkery has product both milk and milk shake a variety of flavors, which contain

high quality ingredient and fresh, clean and organic raw material. Decorate raw material

have whipping cream, brown scales, jelly, O-rio, O-jo, Pokki and fruits. About 90% of

milk is the main ingredient use in all of these products. For milk shake products consists

of milk, coffee, tea, and fruity honey

For the products from milk: Milkery use milk to produce the products because

milk has many nutrients that are beneficial to the body such as calcium or proteins. Milk

is important to people of all ages. Especially teenage as a student’s university but the

product is pure milk may make customers feel tired easily. So, Milkery produces a

variety of types of milk such as sweet milk, pink milk, honey milk, yogurt milk, etc. In

addition we also provide topping for serve to customer such as whipping cream, brown

scales, jelly, O-rio, O-jo, Pokki and fruits (Kanyarat, 2008).

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M i l k e r y


Figure 4.2 Topping

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M i l k e r y

For the products from coffee: Besides milk products, coffee is another popular

product for university students. Milkery provides many type of coffee such as:

Cappuccino: originating from Italy, which is espresso and milk is the main

ingredient.

Figure 4.3 Cappuccino shake

Latte: is Italian which is means milk, so it tastes sweet and soft from milk.

Figure 4.4 Latte shake

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M i l k e r y

Mocha: is Arabica coffee grown in a kind of mocha docks in Yemen. Mocha is a

similar color and a smooth chocolate.

Figure 4.5 Mocha shake

Café Americano: because pure espresso is too intense for American coffee.

Therefore, it has improved the formula by bringing hot water to dilute the coffee,

espresso so that the taste of palliative.

Figure 4.6 Café Americano shake

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M i l k e r y

Espresso: Espresso is the most intense flavor. The origin of this espresso comes

from a word in Italian which means urgent.

Figure 4.7 Espresso shake (Maeyingzine, 2008)

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M i l k e r y

Figure 4.8 Green and Red Tea shake

For the products from tea: "Tea" is a beverage that people worldwide are

favorite drink more. At the present, tea consumption is gaining popularity around the

world. The survey found that the consumption of more than 800 million cups a day.

Milkery used tea as an ingredient in the product (Horapa.com, 2010).

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M i l k e r y

Figure 4.9 Milk Fruity syrup shake

For the products from fruity syrup: Milkery provides much fruity syrup products

such as kiwi, strawberry, lychee, green apple, blue berry, orange, watermelon,

cantaloupe, etc. We buy a fresh fruit day by day, so, we always use fresh fruit because it

can help us to maintain the standard taste.

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M i l k e r y

Beverage products

For customers who don’t consume or don’t like milk shake. Milkery provides a

menu of juice smoothies various flavors such as strawberry, watermelon cantaloupe

apple, lemon, orange, blueberries, kiwi, lychee, etc. Our raw materials will be fresh and

safety because we purchase raw material from safety orchard. So, we concern about

quality of product and also concern about health of customers.


Bakery and Snack products

Bakery:

Cake is a form of food, typically a sweet, baked dessert. Cakes normally

contain a combination of flour, sugar, eggs, and butter or oil.

Cookie is a small, flat-baked treat, usually containing fat, flour, eggs

and sugar.

http://en.wikipedia.org/wiki/Food

http://en.wikipedia.org/wiki/Baking

http://en.wikipedia.org/wiki/Dessert

http://en.wikipedia.org/wiki/Flour

http://en.wikipedia.org/wiki/Sugar

http://en.wikipedia.org/wiki/Egg_%28food%29

http://en.wikipedia.org/wiki/Butter

http://en.wikipedia.org/wiki/Vegetable_fats_and_oils

http://en.wikipedia.org/wiki/Fat

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M i l k e r y

Bread with jam such as strawberry, pineapple, orange, raspberry, etc.

Sunk Ka Ya Baitoey.

Snack:

French-fry is potato that long slices of fried potatoes are sometimes

called fries.

Fry Dumpling is square sheets of wheat dough enclosing minced

cheese that boiled in oil.

Chicken nugget is a molded piece of chicken product breaded or

battered, then cooked. The "nugget" may be fried or baked in

preparation for serving.

Kaew Sa is square sheets of wheat dough enclosing minced forks and

vegetable that boiled in oil and water but it doesn’t crisp all much.

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M i l k e r y

4.1.2 Location

Figure 4.11 Location

Milkery is located at front and opposite to Mae Fah Luang University in a single

building with 2 floors. The area of building is about 10*12 meters or 400 squares. Our

shop is near the location of many dormitories of student of Mae Fah Luang University,

Fah Thai market, and etc. Milkery is the most easiest to see and accessible because the

location of Milkery adjoin with the highway no. 1 or Phaholyothin Road. This side of our

shop has competitor less than the opposite side, so the customer in this side don’t need

to go to those side. Milkery also provided many car parks and table for customers

because we can’t forecast about the amount of customer who come to our shop in a day.

In addition our shop is modern designed and decorate with colorful to attract the

customers and new customer come to our shop.

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M i l k e r y

4.1.3 Facility Layout

First Floor

Figure 4.12 First Floor Format

First Floor: Layout of Milkery

1. Entrance/Exit (Doorway)

2. Table

3. Kitchen (Beverage and Bakery)

4. Toy corner

5. Ladder

6. Toilet

7. Pond

8. Tree/bush

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M i l k e r y

Second Floor

Figure 4.13 Second Floor Format

Second Floor: Layout of Milkery

1. Ladder

2. Table

3. Bookshelf

4. Toy corner

5. Toilet

6. Wireless adapter

7. Tree

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The shop design layout

Atmosphere (Modern style with natural)

1. Signage

- We set the signage at the front of our shop, design the signage in colorful

to make prominent point and use big logo and big size of name shop for

easy to see our shop

2. Interior decoration

- Milkery is design the shop to make feel warm and relaxation.

- Wall: we paint the wall in soft color and hang picture of our logo, food,

drinking, bakery, and brief history of Milkery on the wall around the shop.

- Floor: we use parquet to pave the floor to feel close up with nature

- Window: we also have many window around the wall to ventilate the air

and color of windows are conform with wall

3. Exterior decoration

- Tree/bush: we set the trees around the shop because we try to integrate

modern things with natural become unique to make customer feel fine

and relax.

- Pond: inside arrangement of aquatic plant and many kinds of beautiful

fish.

4. Facilities

- Table: we choose the wood table, wood chair, and sofa in colorful of soft

tone and various color to make customer feel relax and harmonious with

natural.

- Bookshelf: we use wood shelf in soft color and different color in each shelf

to provide many kind of book for who love reading.

- Toy corner: we provide wood toys, chess, and crossword for customers.

- Wireless adapter: we install wireless adapter on the wall of second floor

to provide wireless service around our shop.

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M i l k e r y

- Music: we will open relax music and sometimes open music that popular

in the present to try to please our main customer.

- Toilet: we provide toilet in two floor to customer convenient and design

in modern style adapt with nature.

4.1.4 Facilities Management

Property Management

We try to find the location that appropriate with concept of our shop for operate

business. We decide to choose the land and exist building near 7-11 at front of

university because this location is the way that many people pass in each day. The exits

building is build from wood and has two floor, easy to apply become concept of Milkery

shop and the land also useful to respond our need in maximize benefit.

Facilities Planning

Our shop set the policy and plan for using building and place match with our

shop. We try to use every area in maximize benefit. We set the table both of first and

second floor. At first floor, we set the table near pond and tree provide to customer that

want to feel fresh and near with nature. We also provide toy corner for customers to

play when they waiting order or during eating. At second floor we set the table in two

zones is indoor and outdoor zone. Indoor is air conditioner room and outdoor we set

the tables at the balcony. The kitchen we separate into two zones including with

beverage zone and bakery zone.

Facilities Operations and Maintenance

We try to encourage our employees to preserve and look after all of our

equipments and facilities become to preventive maintenance for extend usability and

reduce cost of company. And we also turn benefits to employees when they help

company reduce cost or expenses are lower than company setting.

4.1.5 Equipment and tools

We choose the equipment and tools that appropriate with our concept that to say

they will modern and minimize damage environment or conform to natural. All of

equipment must have high quality and safety for employees, so we choose only

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M i l k e r y

employees that profession and known working of equipment or tools used to avoid risk

from them. Most of equipment and tools must match with our concept and color also

same tone to make Milkery has unique and then can attract more customers (Products

and Supply Service Co., Ltd, 2010).

Location

Milkery rent location for 1 year. Cost of location per month is 25,000 Bath.

Label cost

Milkery must pays money for light box label 1.5 x 3.5 meter about 21,200 Bath.

Logo

Milkery pays money for designer to design our logo of company about 3,000

Bath.

Internet (Wireless) & Telephone

Milkery contracts TOT Corporation to set up Internet (Wireless) and telephone

in our company and pay money for it about 2,000 Bath.

4.2 Cost of investment

Table 4.1 Cost of investment

Cost of investment

Location 300,000

Label Cost 21,200

Logo 3,000

Internet (wireless) & Telephone 2,000

Total 176,200

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4.3 Investment cost

Equipment & Material Price per

unit No. units Total

Part 1: Equipment

- Coffee Machine

- Coffee Grinder

- Blender

- Cake Display

- Refrigerator

- Glass jar

- Measuring cup 8 oz.


- Coffee long spoon

- Dish

- Fork

- Oven

- Microwave

- Toaster

- Sandwich maker

- Cash machine

- Other

39,000

15,900

7,900

45,200

6,600

100

290

65

130

25

6

4,590

2,200

2,975

490

6,400

-

1

1

2

1

1

3

1

1

1

40

40

2

1

1

2

1

-

39,000

15,900

15,800

45,200

6,600

300

290

65

130

1,000

240

9,180

2,200

2,975

980

6,400

-

Total 146,260

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M i l k e r y

Table 4.2 Investment cost

Part 2: Table & Chair

- Table

- Chair

- Book shelf & Toy shelf

833

136

1,750

18

44

4

14,994

5,984

7,000

Total 27,978

Part 3: Furniture

- TV

- Lighting

- Stereo

- Counter

11,990

-

17,990

15,000

1

-

1

1

11,990

5,000

17,990

15,000

Total 49,980

Part 4: Decorate Restaurant

- Painting & Wallpaper

-

-

15,000

Total 15,000

Total Investment cost 239,218

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M i l k e r y

Depreciation

Equipment & Material Total Useful life

(yr.)

Salvage

value

Depreciation

per year

Depreciation

per month

Part 1: Equipment

- Coffee Machine 39,000 5 5,000 9,000 750

- Coffee Grinder 15,900 5 2,500 4,500 375

- Blender 15,800 4 4,100 3,125 260.41

- Cake Display 45,200 8 3,200 4,600 383.33

- Refrigerator 6,600 8 850 1,081.25 90.104

- Oven 9,180 4 900 3,650 304.16

- Microwave 2,200 4 400 1,148 95.625

- Toaster 2,975 3 210 693 57.7775

- Sandwich maker 980 3 120 553 46.111

- Cash machine 6,400 10 370 422 35.167

- Glass jar - - - - -

- Measuring cup 8 oz. - - - - -

- Measuring cup 1 oz. - - - - -

- Coffee long spoon - - - - -

- Dish - - - - -

- Fork - - - - -

- Other - - - - -

Total

17,650 28,772.41 2,397.68

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M i l k e r y


- Table 15,000 5 2,000 2,600 216.67

- Chair 6,000 5 1,000 1,000 83.33

- Book & Toy Shelf 7,000 5 1,400 1,120 93.33

Total 4,400 4,720 393.33

Part 3: Furniture

- TV 11,990 5 1,200 3,760 313.33

- Lighting 5,000 5 - 1,000 83.33

- Stereo 17,990 5 500 2,900 241.67

- Counter 15,000 10 750 1,425 118.75

Total 2,450 9,085 757.08

Part 4: Decorate

Restaurant

- Painting &

Wallpaper - - - - -

Total - - - - -

Total depreciation

for 1 yr.

42,577

For 1 month

3,548

Salvage Value

24,500

Table 4.3 Depreciation

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M i l k e r y

Table 4.4 Depreciation

Investment Amount January February March April May June July August September October November December Total

Equipment 146,260 2,397.68 2,397.68 2,397.68 2,397.68 2,397.68 2,397.68 2,397.68 2,397.68 2,397.68 2,397.68 2,397.68 2,397.68 28,772.16

Table & Chair 27,978 393.33 393.33 393.33 393.33 393.33 393.33 393.33 393.33 393.33 393.33 393.33 393.33 4,719.96

Furniture 49,980 757.08 757.08 757.08 757.08 757.08 757.08 757.08 757.08 757.08 757.08 757.08 757.08 9,084.96

Other - - - - - - - - - - - - - -

Total 224,218 3,548.09 3,548.09 3,548.09 3,548.09 3,548.09 3,548.09 3,548.09 3,548.09 3,548.09 3,548.09 3,548.09 3,548.09 42,577.08

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M i l k e r y

4.4 Operating Cost

Cost of goods sold

Ingredients Price per unit No. unit Total

- Coffee beans - - -

- Sweetened condensed milk 25 90 cans 2,250

- non-dairy creamer 58 15 kg. 870

- Sugar 15 15 kg. 450

- Plain milk 27 120 cans 3,240

- Caramel 100 30 bottles 3,000

- Ice 30 30 buckets 900

- Whipping cream 150 30 bottles 4,500

- Paper cups for hot coffee 1.65 450 cups 742.5

- Paper cups for cold coffee 1.5 1,200 cups 1,800

- covers 1.2 1,200 pieces 1,440

- Straws 25 12 pack 300

- Plastic Spoons 15 4 pack 60

Total 19,552.50

Table 4.5 Cost of goods sold

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Cost of labor (per month)

Position Amount Salary Total

Head of Staff 1 7,500 7,500

Barista 1 5,000 5,000

Waiter 1 4,500 4,500

Total 3 17,000

Table 4.6 Cost of labor

Overhead Cost (per month)

Charge Total

- Electricity 3,000

- Utilities 500

- Water supply 300

Total 3,800

Table 4.7 Overhead cost

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4.5 Administration Cost

Topic January February March April May June July August September October November December Total

Rental fee 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000

Salary 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 420,000

Telephone 580 620 439 402 489 525 512 541 611 592 567 665 6,543

Internet 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 17,880

Gas 800 650 450 440 470 550 850 750 650 700 620 800 7,730

Insurance 6,900 - - - - - - - - - - - 6,900

Others expenses 2,250 1,895 1,443 1,343 1,655 1,830 1,790 1,879 1,799 1,764 1,800 2,385 21,833

Total 72,020 64,655 63,822 63,675 64,104 64,395 64,642 64,660 64,550 64,546 64,477 65,340 780,886

Table 4.8 Administration Cost for Year 1


Rental fee 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000

Salary 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 420,000

Telephone 680 680 419 392 429 555 622 711 681 742 888 789 7,588

Internet 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 17,880

Gas 825 669 417 420 462 641 688 743 690 765 740 900 7,960

Insurance 6,900 - - - - - - - - - - - 6,900

Others expenses 2,320 1,995 1,337 1,433 1,655 1,830 1,790 1,879 1,799 1,764 1,800 2,385 21,987

Total 72,215 64,834 63,663 63,735 64,036 64,516 64,590 64,823 64,660 64,761 64,918 65,564 782,315


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M i l k e r y


Rental fee 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000

Salary 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 420,000

Telephone 760 610 459 416 519 666 744 761 822 787 802 885 8,231

Internet 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 17,880

Gas 840 721 455 430 480 650 750 780 850 700 800 910 8,366

Insurance 6,900 - - - - - - - - - - - 6,900

Others expenses 2,450 2,095 1,413 1,273 1,355 1,830 1,790 1,879 1,799 1,764 1,800 2,385 21,833

Total 72,440 64,916 63,817 63,609 63,844 64,636 64,774 64,910 64,961 64,741 64,892 65,670 783,210



Rental fee 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000

Salary 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 420,000

Telephone 885 520 402 459 525 610 761 744 787 822 885 910 8,310

Internet 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 17,880

Gas 850 669 462 420 430 480 650 650 780 800 910 970 7,101

Insurance 6,900 - - - - - - - - - - - 6,900

Others expenses 2,295 1,879 1,513 1,443 1,655 1,830 1,790 1,879 1,799 1,764 1,800 2,385 22,032

Total 72,420 64,558 63,867 63,812 64,100 64,410 64,691 64,763 64,856 64,876 65,085 65,755 782,223


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M i l k e r y


Rental fee 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000

Salary 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 420,000

Telephone 980 620 439 402 489 761 787 885 822 787 744 910 8,626

Internet 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 1,490 17,880

Gas 800 650 450 440 470 550 850 750 650 780 910 980 8,280

Insurance 6,900 - - - - - - - - - - - 6,900

Others expenses 2,385 2,295 1,643 1,343 1,425 1,830 1,790 1,879 1,799 1,764 1,800 2,185 22,138

Total 72,555 65,055 64,022 63,675 63,874 64,631 64,917 65,004 64,761 64,821 64,944 65,565 783,824


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4.6 Management analysis

Milkery is the company which registers to be a justice person likes company

limited. Limited company is cooperation with shareholders who enjoys limited liability.

Follow the new law tells that Company limited will be arise as there are partnership and

shareholder from 5 people, company limited will be divided the capital into share and

each share will have an equal value, value of each shares shall not be less than 100 baht,

shareholders will be have a limited responsibility of the company's debt by not

exceeding the amount value of each shares that each shareholder held.

Organization management is basically a “to do” list for an organization. It lists

out the plan of work, programs, and organizational growth over a period of time - six

months, a year. The tasks involved, who is responsible for them, and when they’ll be

done.

For company, there are 5 partnerships in the company as following

1. Mr. Jatupol Muenharn (General Manager)

2. Miss Wanna Rattanawanit (Operation Manager)

3. Miss Wilawan Kladngiu (Marketing Manager)

4. Miss Nattaya Chiangrang (Human Resource Manager)

5. Mr. Piboonsak Kittitornkun (Accounting/Financial Manager)

Organization Chart

Figure 4.14 Organization Chart

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M i l k e r y

Description the characters and duties of employee in each department of

Milkery as follows:

1. General Manager

Directly responsible to provide the internal control to be effective and levels

of productivity are always impressive.

Manager of the Milkery must be people who have knowledge of marketing,

looking the importance of marketing and see marketing as an investment

cost. Do not see that the cost of marketing as a cost wastage.

Manager must not to evaluate the work of employees in just sales or profit,

but should to assess in the ability that they can retain the existing customers

and to satisfy customers until enable customer’s loyalty to use our products.

Control under the policy process and time frame.

Assessment of internal control of each department.

Analyzing and solving the problem to be more efficiency.

Organizing the divisions and order the employee know exactly role they has

to play.

2. Accounting /Financing

Responsible for overseeing the operation of the accounting follows the

regulation of the account of Milkery.

Review and analysis of financial statement.

Check the accuracy of cash flow and the daily reports.

Collect the items that will be prepared for making an income statements and

expenses.

Offer financial budget to the manager informed.

Acts of funds disbursement of Milkery.

To storage the certificate documentation of Milkery

Control all expenses cost.

3. Marketing

To define common strategies and policies of Milkery to achieve its objective

in all aspects of overall quality.

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M i l k e r y

Everyone must work together to create and deliver quality marketing with

the product quality to customers.

Promote and advertise the promotion of the shop.

Plan and analyze the customer information.

Marketing need to track and create a feel good relationship with customers.

An impressive customer loyalty.

Follow the current situation on marketing all the time.

4. Human Resource

Verify the system into company

Training initiatives may include apprenticeship, internship, job rotation,

mentoring, and new skills programs.

Carefully planned and executed HRM programs are meaningless

Related to employee benefits, safety and health, and worker-management

relations.

Recruiting and select the employee.

Evaluate the performance of employee.

5. Production/ operating

Control the process of production.

Control the quality of system.

Control monitors the production and its progress, making sure everything is

operating smoothly and efficiently.

Take data and maintain records of the speed, efficiency and results of the

production.

Using this information, they will suggest changes that may improve the

production process.

Check and evaluation the system of company.

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4.7 Conclusion

From our analysis in Chapter 4 Technical Feasibility Study can tell that

this chapter talks about the Production and Operations Analysis which our products can

divided into 3 main types: Milk shake products, Beverage products, Bakery and Snack

products and each part talks about ingredient of sauce and how to make?. Milkery is

located at front and opposite to Mae Fah Luang University in a single building with 2

floors. We choose this area because the place is convenience- easy to buy or easy to

reach. This side of our shop has competitor less than the opposite side, so the customer

in this side don’t need to go to those side. Milkery also provided many car parks and

table for customers because we can’t forecast about the amount of customer who come

to our shop in a day. In addition our shop is modern designed and decorate with colorful

to attract the customers and new customer come to our shop. Milkery concerns more

about customers‟ satisfy so we try to find the options which enhance customers‟

satisfy. There are many machines that we provide to our customer for making

comfortable. We have the facility management both providing the facility for customers

and protection our own shop. In addition, we give precedence about employees within

our organization because if we have a good person to work in a right position, the

business can reach to achievement. Each partner is responsible for their own best. And

the total cost of investment is 176,200 Baht, investment cost is 287,485 Baht,

depreciation cost is 42,577 per year and operating cost is 40,352.50 Baht.

Administration Cost of Milkery consist of rental fee, salary, others expenses, internet,

gas and telephone total about 774,703 Baht.

M i l k e r y

Chapter 5 Financial Analysis

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M i l k e r y

Chapter 5 Financial Analysis

5.1 Initial investment

There are 10 founders invested of 500,000 Bath with is 50,000 each consist of 10%.

Raw material THB 19,552.50

Equipment, Seating, and Decorate THB 287,485.00

Properties THB 150,000.00

Others THB 22,600.00

Total initial investment THB 478,637.50

5.2 Source of funds

The initial investment at first, we invested 500,000 Bath, but it’s not enough to run

our business. So, we decided to borrow money from bank for 1,000,000 Bath with the

rate of 4% within 5 years.

Loan 1,000,000 Bath

Annuity interest 0.04%

Monthly payment 40,000 Bath

Loan Periods 2.1 Years

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5.3 Profit and loss statement

Milkery Company

Profit/Loss statement

For the year 1 Ended 31 Dec.

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

Revenue

Sale 596,010.00 556,890.00 502,500.00 469,500.00 431,040.00 503,670.00 513,690.00 694,350.00 753,690.00 677,010.00 852,450.00 883,530.00 7,434,330.00

Net sale 596,010.00 556,890.00 502,500.00 469,500.00 431,040.00 503,670.00 513,690.00 694,350.00 753,690.00 677,010.00 852,450.00 883,530.00 7,434,330.00

Cost of goods sold

Cost of goods sold 67,050.00 72,960.00 66,330.00 65,340.00 57,000.00 60,420.00 63,330.00 75,360.00 85,350.00 71,970.00 88,080.00 91,260.00 864,450.00

Gross profit 528,960.00 483,930.00 436,170.00 404,160.00 374,040.00 443,250.00 450,360.00 618,990.00 668,340.00 605,040.00 764,370.00 792,270.00 6,569,880.00

Expense

Organization expense 10,000.00 10,000.00 10,000.00 10,000.00 10,320.00 12,100.00 14,242.00 11,034.00 16,424.00 13,123.00 11,231.00 12,123.00 140,597.00

Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00

Marketing expense 19,847.10 21,018.90 18,950.00 19,895.00 21,880.40 25,306.70 23,546.90 30,468.50 27,179.90 34,724.10 37,248.50 40,763.30 320,829.30

Total operating expense 33,395.10 34,566.90 32,498.00 33,443.00 35,748.40 40,954.70 41,336.90 45,050.50 47,151.90 51,395.10 52,027.50 56,434.30 504,002.30

EBIT 495,564.90 449,363.10 403,672.00 370,717.00 338,291.60 402,295.30 409,023.10 573,939.50 621,188.10 553,644.90 712,342.50 735,835.70 6,065,877.70

interest paid 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96

Taxable income 485,831.57 439,629.77 393,938.67 360,983.67 328,558.27 392,561.97 399,289.77 564,206.17 611,454.77 543,911.57 702,609.17 726,102.37 5,949,077.74

Taxes (15%) 72,874.74 65,944.47 59,090.80 54,147.55 49,283.74 58,884.30 59,893.47 84,630.93 91,718.22 81,586.74 105,391.38 108,915.36 892,361.66

Net income 412,956.83 373,685.30 334,847.87 306,836.12 279,274.53 333,677.67 339,396.30 479,575.24 519,736.55 462,324.83 597,217.79 617,187.01 5,056,716.08

Table 5.1 Profit and loss statement for Year 1

Dividend 505,671.61 Addition retain earning 4,551,044.47

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M i l k e r y


Milkery Company



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

Revenue

Sale 646,314.00 626,812.00 552,527.00 499,513.00 451,073.00 512,456.00 553,215.00 621,456.00 689,324.00 701,515.00 912,352.00 871,241.00 7,637,798.00

Net sale 646,314.00 626,812.00 552,527.00 499,513.00 451,073.00 512,456.00 553,215.00 621,456.00 689,324.00 701,515.00 912,352.00 871,241.00 7,637,798.00

Cost of goods sold


Gross profit 577,164.00 559,602.00 489,307.00 439,263.00 391,923.00 451,206.00 489,865.00 550,216.00 615,934.00 624,545.00 824,792.00 790,001.00 6,803,818.00

Expense


Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00



EBIT 537,755.86 520,485.88 451,998.73 403,019.87 353,374.27 409,553.44 441,932.85 504,876.44 563,535.76 575,950.85 765,115.48 737,289.59 6,264,889.02

interest paid 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96

Taxable income 528,022.53 510,752.55 442,265.40 393,286.54 343,640.94 399,820.11 432,199.52 495,143.11 553,802.43 566,217.52 755,382.15 727,556.26 6,148,089.06

Taxes (15%) 79,203.38 76,612.88 66,339.81 58,992.98 51,546.14 59,973.02 64,829.93 74,271.47 83,070.36 84,932.63 113,307.32 109,133.44 922,213.36

Net income 448,819.15 434,139.67 375,925.59 334,293.56 292,094.80 339,847.09 367,369.59 420,871.64 470,732.07 481,284.89 642,074.83 618,422.82 5,225,875.70

Dividend 522,587.57

Addition retain earning 4,703,288.13

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M i l k e r y

Milkery Company



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

Revenue

Sale 871,247.00 792,114.00 613,515.00 512,415.00 503,636.00 546,449.00 616,738.00 797,532.00 741,738.00 692,626.00 871,511.00 679,261.00 8,238,782.00

Net sale 871,247.00 792,114.00 613,515.00 512,415.00 503,636.00 546,449.00 616,738.00 797,532.00 741,738.00 692,626.00 871,511.00 679,261.00 8,238,782.00

Cost of goods sold


Gross profit 799,197.00 721,154.00 553,185.00 460,075.00 453,126.00 492,282.00 557,597.00 726,117.00 672,477.00 627,465.00 798,001.00 616,121.00 7,476,797.00

Expense


Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00



EBIT 755,709.53 681,824.86 514,075.85 421,611.85 411,856.64 449,849.51 514,573.62 677,837.68 618,399.62 580,489.74 744,006.89 563,922.39 6,934,158.18

interest paid 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96

Taxable income 745,976.20 672,091.53 504,342.52 411,878.52 402,123.31 440,116.18 504,840.29 668,104.35 608,666.29 570,756.41 734,273.56 554,189.06 6,817,358.22

Taxes (15%) 111,896.43 100,813.73 75,651.38 61,781.78 60,318.50 66,017.43 75,726.04 100,215.65 91,299.94 85,613.46 110,141.03 83,128.36 1,022,603.73

Net income 634,079.77 571,277.80 428,691.14 350,096.74 341,804.81 374,098.75 429,114.25 567,888.70 517,366.35 485,142.95 624,132.53 471,060.70 5,794,754.49

Dividend 579,475.45



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M i l k e r y

Milkery Company



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

Revenue

Sale 716,162.00 781,516.00 571,616.00 541,251.00 582,615.00 738,393.00 861,992.00 634,617.00 973,261.00 699,515.00 764,167.00 912,415.00 8,777,520.00

Net sale 716,162.00 781,516.00 571,616.00 541,251.00 582,615.00 738,393.00 861,992.00 634,617.00 973,261.00 699,515.00 764,167.00 912,415.00 8,777,520.00

Cost of goods sold


Gross profit 649,112.00 715,700.00 519,833.00 491,990.00 528,448.00 675,917.00 790,832.00 572,900.00 887,544.00 633,005.00 697,006.00 829,259.00 7,991,546.00

Expense


Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00



EBIT 606,248.38 672,951.84 475,847.84 450,138.49 484,163.85 630,994.07 741,633.08 532,715.83 831,997.39 589,952.85 653,455.33 778,514.85 7,436,483.80

interest paid 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96

Taxable income 596,515.05 663,218.51 466,114.51 440,405.16 474,430.52 621,260.74 731,899.75 522,982.50 822,264.06 580,219.52 643,722.00 768,781.52 7,319,683.84

Taxes (15%) 89,477.26 99,482.78 69,917.18 66,060.77 71,164.58 93,189.11 109,784.96 78,447.38 123,339.61 87,032.93 96,558.30 115,317.23 1,097,952.58

Net income 507,037.79 563,735.73 396,197.33 374,344.39 403,265.94 528,071.63 622,114.79 444,535.13 698,924.45 493,186.59 547,163.70 653,464.29 6,221,731.26

Dividend 622,173.13



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M i l k e r y

Milkery Company



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

Revenue

Sale 1,151,662.00 949,491.00 891,600.00 616,705.00 656,175.00 671,617.00 716,780.00 951,790.00 617,895.00 961,816.00 851,899.00 975,910.00 10,013,340.00

Net sale 1,151,662.00 949,491.00 891,600.00 616,705.00 656,175.00 671,617.00 716,780.00 951,790.00 617,895.00 961,816.00 851,899.00 975,910.00 10,013,340.00

Cost of goods sold


Gross profit 1,069,972.00 871,381.00 817,444.00 565,035.00 603,276.00 616,456.00 652,603.00 872,062.00 565,913.00 881,765.00 779,711.00 893,228.00 9,188,846.00

Expense


Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00



EBIT 1,012,706.38 820,136.09 770,974.00 520,443.95 558,331.25 576,123.83 607,160.20 823,305.10 518,062.05 831,716.84 723,343.01 834,727.90 8,587,830.60

interest paid 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96

Taxable income 1,002,973.05 810,402.76 761,240.67 510,710.62 548,597.92 566,390.50 597,426.87 813,571.77 508,328.72 821,983.51 713,609.68 824,994.57 8,471,030.64

Taxes (15%) 150,445.96 121,560.41 114,186.10 76,606.59 82,289.69 84,958.58 89,614.03 122,035.77 76,249.31 123,297.53 107,041.45 123,749.19 1,270,654.60

Net income 852,527.09 688,842.35 647,054.57 434,104.03 466,308.23 481,431.93 507,812.84 691,536.00 432,079.41 698,685.98 606,568.23 701,245.38 7,200,376.04

Dividend 720,037.60



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M i l k e r y

5.4 Statement of Cash Flow

Milkery Company

Statement of Cash flow

For Year 1 Ended of 31 Dec.

Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Operating activities

Cash received from Customer 596,010.00 556,890.00 502,500.00 469,500.00 431,040.00 503,670.00 513,690.00 694,350.00 753,690.00 677,010.00 852,450.00 883,530.00 7,434,330.00

Cash paid for Operating expense 67,050.00 72,960.00 66,330.00 65,340.00 57,000.00 60,420.00 63,330.00 75,360.00 85,350.00 71,970.00 88,080.00 91,260.00 864,450.00

Cash paid for Interest 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96

Cash paid for Taxes 72,874.74 65,944.47 59,090.80 54,147.55 49,283.74 58,884.30 59,893.47 84,630.93 91,718.22 81,586.74 105,391.38 108,915.36 892,361.66

Cash paid for Administration cost 72,020.00 64,655.00 63,822.00 63,675.00 64,104.00 64,395.00 64,642.00 64,660.00 64,550.00 64,546.00 64,477.00 65,340.00 780,886.00

Cash paid for Marketing expense 19,847.10 21,018.90 18,950.00 19,895.00 21,880.40 25,306.70 23,546.90 30,468.50 27,179.90 34,724.10 37,248.50 40,763.30 320,829.30

Cash paid for Overhead cost/Utilities cost 3,800.00 3,800.00 3,800.00 3,800.00 3,800.00 3,800.00 3,800.00 3,800.00 3,800.00 3,800.00 3,800.00 3,800.00 45,600.00

Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00

Cash provide by Operating activities 347,136.83 315,230.30 277,225.87 249,361.12 221,690.53 277,582.67 285,196.30 422,149.24 467,810.55 407,101.83 540,171.79 560,170.01 4,370,827.08

Investing activities

Cash paid for Purchase Equipments 224,218.00 - - - - - - - - - - - 224,218.00

Cash paid for Decoration 15,000.00 - - - - - - - - - - - 15,000.00

Cash provide by Investing activities 239,218.00 - - - - - - - - - - - 239,218.00

Financing activities

Cash from Investment by owners 500,000.00 - - - - - - - - - - - 500,000.00

Cash from Loan 1,000,000.00 - - - - - - - - - - - 1,000,000.00

Cash paid for Dividend 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 505,671.61

Cash provide by Financing 1,457,860.70 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 42,139.30 994,328.39

Increase / Decrease in cash 1,565,779.53 273,091.00 235,086.57 207,221.82 179,551.23 235,443.37 243,057.00 380,009.94 425,671.25 364,962.53 498,032.49 518,030.71 5,125,937.47

Table 5.6 Statement of Cash Flow for Year 1

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M i l k e r y

Milkery Company








Cash paid for Taxes 79,203.38 76,612.88 66,339.81 58,992.98 51,546.14 59,973.02 64,829.93 74,271.47 83,070.36 84,932.63 113,307.32 109,133.44 922,213.36




Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00



Cash paid for Purchase Equipments - - - - - - - - - - - - -

Cash paid for Decoration - - - - - - - - - - - - -

Cash paid for Properties - - - - - - - - - - - - -

Cash provide by Investing activities - - - - - - - - - - - - -


Cash from Investment by owners - - - - - - - - - - - - -

Cash from Loan - - - - - - - - - - - - -


Cash provide by Financing 43,548.96 43,548.96 43,548.96 43,548.96 43,548.96 43,548.96 43,548.96 43,548.96 43,548.96 43,548.96 43,548.96 43,548.96 522,587.57

Increase / Decrease in cash 342,465.19 333,256.71 277,323.63 233,209.60 190,729.84 239,742.13 268,672.63 324,051.68 372,937.11 383,051.93 547,238.87 515,632.86 4,028,312.13


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M i l k e r y

Milkery Company








Cash paid for Taxes 111,896.43 100,813.73 75,651.38 61,781.78 60,318.50 66,017.43 75,726.04 100,215.65 91,299.94 85,613.46 110,141.03 83,128.36 1,022,603.73




Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00









Cash from Loan - - - - - - - - - - - - -





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M i l k e r y

Milkery Company












Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00









Cash from Loan - - - - - - - - - - - - -





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M i l k e r y

Milkery Company





Cash received from Customer 1,151,662.00 949,491.00 891,600.00 616,705.00 656,175.00 671,617.00 716,780.00 951,790.00 617,895.00 961,816.00 851,899.00 975,910.00 10,013,340.00







Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00









Cash from Loan - - - - - - - - - - - - -





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M i l k e r y

5.5 Balance Sheet

Milkery Company

Balance Sheet

For the Year 1 Ended 31 Dec.


Current Asset

Cash 1,572,679.53 273,091.00 235,086.57 207,221.82 179,551.23 235,443.37 243,057.00 380,009.94 425,671.25 364,962.53 498,032.49 518,030.71 5,132,837.47

Fixed asset

Equipment & Tool 146,260 - - - - - - - - - - - 146,260

Furniture 49,980 - - - - - - - - - - - 49,980

Table & Chair 28,000.00 - - - - - - - - - - - 28,000.00

Decoration 15,000.00 - - - - - - - - - - - 15,000.00

Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00

Total asset 1,815,467.53 276,639.00 238,634.57 210,769.82 183,099.23 238,991.37 246,605.00 383,557.94 429,219.25 368,510.53 501,580.49 521,578.71 5,414,653.47

Liability

Loan 1,000,000.00 - - - - - - - - - - - 1,000,000.00

Interest 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96

Tax 72,874.74 65,944.47 59,090.80 54,147.55 49,283.74 58,884.30 59,893.47 84,630.93 91,718.22 81,586.74 105,391.38 108,915.36 892,361.66

Accounts Payable 16,667.00 16,667.00 16,667.00 16,667.00 16,667.00 16,667.00 16,667.00 16,667.00 16,667.00 16,667.00 16,667.00 16,667.00 200,004.00

Total liability 1,099,275.07 92,344.80 85,491.13 80,547.88 75,684.07 85,284.63 86,293.80 111,031.26 118,118.55 107,987.07 131,791.71 135,315.69 2,209,165.62

Equity

Owner capital 500,000.00 - - - - - - - - - - - 500,000.00

Total equity and liability 1,599,275.07 92,344.80 85,491.13 80,547.88 75,684.07 85,284.63 86,293.80 111,031.26 118,118.55 107,987.07 131,791.71 135,315.69 2,709,165.62

External financing needed 216,192.47 184,294.21 153,143.44 130,221.94 107,415.16 153,706.75 160,311.21 272,526.69 311,100.71 260,523.47 369,788.79 386,263.03 2,705,487.85

Table 5.11 Balance Sheet of Year 1

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M i l k e r y

Milkery Company

Balance Sheet



Current Asset

Cash 349,365.19 333,256.71 277,323.63 233,209.60 190,729.84 239,742.13 268,672.63 324,051.68 372,937.11 383,051.93 547,238.87 515,632.86 4,035,212.13

Fixed asset

Equipment & Tool - - - - - - - - - - - - -

Furniture - - - - - - - - - - - - -

Table & Chair - - - - - - - - - - - - -

Decoration - - - - - - - - - - - - -

Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00

Total asset 352,913.19 336,804.71 280,871.63 236,757.60 194,277.84 243,290.13 272,220.63 327,599.68 376,485.11 386,599.93 550,786.87 519,180.86 4,077,788.13

Liability

Loan - - - - - - - - - - - - -

Interest 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96

Tax 79,203.38 76,612.88 66,339.81 58,992.98 51,546.14 59,973.02 64,829.93 74,271.47 83,070.36 84,932.63 113,307.32 109,133.44 922,213.36


Total liability 105,603.71 103,013.21 92,740.14 85,393.31 77,946.47 86,373.35 91,230.26 100,671.80 109,470.69 111,332.96 139,707.65 135,533.77 1,239,017.32

Equity

Owner capital - - - - - - - - - - - - -

Total equity and liability 105,603.71 103,013.21 92,740.14 85,393.31 77,946.47 86,373.35 91,230.26 100,671.80 109,470.69 111,332.96 139,707.65 135,533.77 1,239,017.32



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M i l k e r y

Milkery Company

Balance Sheet



Current Asset

Cash 531,122.15 467,382.18 325,935.52 245,639.12 236,286.19 269,523.13 325,208.63 465,055.08 418,687.73 384,563.33 522,391.91 364,469.08 4,556,264.04

Fixed asset

Equipment & Tool - - - - - - - - - - - - -

Furniture - - - - - - - - - - - - -

Table & Chair - - - - - - - - - - - - -

Decoration - - - - - - - - - - - - -

Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00

Total asset 534,670.15 470,930.18 329,483.52 249,187.12 239,834.19 273,071.13 328,756.63 468,603.08 422,235.73 388,111.33 525,939.91 368,017.08 4,598,840.04

Liability

Loan - - - - - - - - - - - - -

Interest 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96

Tax 111,896.43 100,813.73 75,651.38 61,781.78 60,318.50 66,017.43 75,726.04 100,215.65 91,299.94 85,613.46 110,141.03 83,128.36 1,022,603.73


Total liability 138,296.76 127,214.06 102,051.71 88,182.11 86,718.83 92,417.76 102,126.37 126,615.98 117,700.27 112,013.79 136,541.36 109,528.69 1,339,407.69

Equity

Owner capital - - - - - - - - - - - - -




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M i l k e r y

Milkery Company

Balance Sheet



Current Asset

Cash 398,024.03 455,044.97 289,243.57 268,045.63 294,258.18 422,174.87 516,937.03 334,124.37 596,536.69 383,281.83 438,841.94 547,223.53 4,934,396.13

Fixed asset

Equipment & Tool - - - - - - - - - - - - -

Furniture - - - - - - - - - - - - -

Table & Chair - - - - - - - - - - - - -

Decoration - - - - - - - - - - - - -

Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00

Total asset 401,572.03 458,592.97 292,791.57 271,593.63 297,806.18 425,722.87 520,485.03 337,672.37 600,084.69 386,829.83 442,389.94 550,771.53 4,976,972.13

Liability

Loan - - - - - - - - - - - - -

Interest 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96

Tax 89,477.26 99,482.78 69,917.18 66,060.77 71,164.58 93,189.11 109,784.96 78,447.38 123,339.61 87,032.93 96,558.30 115,317.23 1,097,952.58


Total liability 115,877.59 125,883.11 96,317.51 92,461.10 97,564.91 119,589.44 136,185.29 104,847.71 149,739.94 113,433.26 122,958.63 141,717.56 1,414,756.54

Equity

Owner capital - - - - - - - - - - - - -




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M i l k e r y

Milkery Company

Balance Sheet



Current Asset

Cash 740,229.96 576,156.22 533,395.44 318,141.90 349,046.10 363,835.80 391,259.71 577,889.87 317,029.28 587,223.85 491,932.10 591,800.25 5,830,120.44

Fixed asset

Equipment & Tool - - - - - - - - - - - - -

Furniture - - - - - - - - - - - - -

Table & Chair - - - - - - - - - - - - -

Decoration - - - - - - - - - - - - -

Depreciation 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 3,548.00 42,576.00

Total asset 743,777.96 579,704.22 536,943.44 321,689.90 352,594.10 367,383.80 394,807.71 581,437.87 320,577.28 590,771.85 495,480.10 595,348.25 5,872,696.44

Liability

Loan - - - - - - - - - - - - -

Interest 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 9,733.33 116,799.96

Tax 150,445.96 121,560.41 114,186.10 76,606.59 82,289.69 84,958.58 89,614.03 122,035.77 76,249.31 123,297.53 107,041.45 123,749.19 1,270,654.60


Total liability 176,846.29 147,960.74 140,586.43 103,006.92 108,690.02 111,358.91 116,014.36 148,436.10 102,649.64 149,697.86 133,441.78 150,149.52 1,587,458.56

Equity

Owner capital - - - - - - - - - - - - -




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5.6 Pay Back Period

Figure 5. 1 Pay Back Period

The Payback Period ~ 0.1 year

Our company can get cash outflow equal 5,125,937.47 Baht in year 1, so length of

time require for investment return is 0.09~0.1 years.

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5.7 NPV and IRR

Calculate Net Present Value (NPV) and Internal Rate of Return (IRR) for 5 year

Year Cash Flows

0 -478,637.50

1 4,747,253.45

2 3,699,324.10

3 4,221,271.01

4 4,598,416.11

5 5,495,741.41

NPV 19,706,801.11

IRR 9.72

Discount Rate 4.00%

Table 5. 16NPV and IRR

M i l k e r y

Chapter 6 Risk Analysis

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Chapter 6 Risk Analysis

6.1 Risk management analysis

Because of Milkery is located in front of Mae Fah Luang University and close to

Fah Thai market, so our shop has both direct and indirect competitors like a following

analysis.

6.1.1 Competitor risk

After we explored the food and beverage market at front of Mae Fah Luang

University area by survey method, we found that there are few competitors and only

two shops that popular.

6.1.2 External risk

Every business has all external risks, these external risks are the risk that we

can’t control or dealing with it. It consists of following risks:

Social risk

Many years ago, when compared the consumption of milk with populations.

Thailand's consumption of milk is statistically very low, that is only 2 liters per person

per year. But nowadays, government realizes the importance of milk. It has been

campaigning to have the habits and in an attempt to milk. Also looking for the ways to

increase productivity and reduce costs in the production process of raw milk,

processing and distribution for a fair and reasonable price.

Technology risk

In the production industry whether on any product, the technology are very

important factors because the technology will allow us to reduce the power, cost, and

time of production. And production output is also effective and effectiveness. In

addition, technology also gives us an advantage over competitors.

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Economic risk

The situation of Chiang Rai economic about the expenditure on the growth rate

slowed down. Especially in consumption and people spending carefully cause of a result

of oil price - the basic tariff increased.

Political risk

According to Suan Dusit Poll told that the expectations of the people to "Thai

Politics" in 2553 No. 1 about 47.37% is the same because there are still conflicts and

chronic continuous, etc. No. 2 about 27.60% is better situation because the political

situation began unwinding stress, if the politicians turn to harmonize together. No. 3

about 25.03% is worse because there are still several issues that may lead to political

conflict, if politicians do not stop the behaviors that cause conflict, etc. These may affect

to all parties including food and beverage market too (Political Situation, 2010).

6.1.3 Internal risk

Risks of its milk and bakery must face often is the risk factors within the

industry. This may be important for several reasons including. Operating risk is risk that

can be visible and obstruction control infrastructure because of these risks under the

industry's operations. The Company's operations may face the risk of these

characteristics:

Risk of Product and Service

Milkery has on product because of dairy milk product and service are available in

the market However, customers still need more than just box milk product, so we

reduce the risk via provide full service, good environment and quality product and

service.

Risk of Pricing

Milkery has of setting price because if we set the price to high, customers do not

have enough power of purchasing. Customers will compare with other shops that occur

in the market. If we set at lower price, it will represent that low quality of product and

service. Hence, we set the price similar to competitor, which we also concern of cost of

raw material and expense in the shop.

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Risk to entry the market

The risk to enter the market of Milkery is five force model’ for example, rivalry of

competitor, bargaining power of customer, bargaining power of supplier, substitute

product and new entry of competitor. For this reason, we will reduce risk via market

study, competitor analyze and condition of competition.

Risk of Human Resources

Risks arising from aware of the ability to works and characters of each employee,

so this may cause problems. Because the company can be selected as a feature only such

as employee have knowledge about coffee, milk shake and bakery, so it effect to the

company do not must spend time and money in training employees again . The

important for company is, can not realize the routine of employees. It brings to

dishonest, lazy and not on time, then it cause losses to the company. Company needs

employees that are important variable in the production, packaging, and service. When

the employees have good integrity and diligence can help company better. If employees

are lazy and dishonest, it makes the manufacturing, operations, and service by lack of

effective. In addition to affecting the company's revenue and also affect the company's

image.

Risk of Performance of the machines

Because the company uses few machines, so it has less chance to damage. The

possibility to damage from processes of machines is most in errors in the work of the

blender, oven baked bread and toaster. If it error. It is a key factor in production and

effect to can not produce product.

Risk of Efficiency

Opportunities that are most likely to affect performance are caused by

contaminated in raw materials. Its main raw material used to produce milk and bakery.

Companies are realizing the importance of health consumers. Therefore company focus

on the most efficient of milk and bakery. The company use fresh milk and fresh bakery,

clean contains to provide clean milk and bakery and safe for consumers.

Risk of Health and Safety

Companies are realizing the importance of health all employees. If employees are

healthy then they can work hard. The company is a manufacturer of milk and bakery

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M i l k e r y

every day. If employees are discomfort, it occurs to spread disease into the products and

harm to consumers. Therefore, company is very strict control and disease prevention

for employees, which will impact on customers.

Risk of Integrity Risk

Integrity and honesty of our employees are the most important risks are very

effective in operational management. If the employees are not honest with

responsibility, trust between employers and their employees will be decrease. And it

can make business come down because, the member in industries are not unity. So,

manager must be use the system family as a policy to manage their employees while the

manager is the leader of family who identify the responsibility of each person, take care,

suggest and give consultant to all of employees. It can make employees happy with their

job.

Risk of Empowerment Risk

Manager assign works to someone to be leadership that makes them have the

power in company. It may have the problem with other employee. Sometime if the

customer order menu but raw materials don't have enough. The leadership that we give

power may deny customer. It makes company blunder customer. To solve this case, the

manager sold call with leader for advantage in the company.

Risk of Authority / Limit

The Administrative who have been entrusted to use power instead, it Show

potential trust and credibility in this person because the executive is difficult to rely on

administrative money and power. Risk from the actions of this person can cause

damage to the company. We can’t control at all times and may cause to loss of business.

Therefore, the executive should check marketing plan by himself to determine the

appropriate of financial amount in marketing plan. If not properly be defined financial

amount to match marketing plan and the administrative should record all marketing

plan to the executive.

Risk of Communications

The communication between manager and employee may have error because

the employee comes from local in Chiang Rai. They will speak local language such as

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when employee order product from other place may be confused. The problem between

of local language and Thai language has very important. Therefore, the company should

receive employee that have education unless secondary school for the efficiency in

communications.

Other risk

The risk that occur when we do not predict it; such as, conflagration, inundation,

earthquake, burglary, and business halt. If this situation occurs, who will be response to

situations? So we design to do an Insurance against loss, this will be guarantee the

unpredicted damage.

6.2 Financial Risk

6.2.1 Risk of sale decrease 5%, 10%, and 15% for 5 Years

Milkery Company


Year 1 Year 2 Year 3 Year4 Year 5

Revenue

Sale 7,434,330.00 7,637,798.00 8,238,782.00 8,238,782.00 10,013,340.00

Sale Decrease 5% 0.05 0.05 0.05 0.05 0.05

Sale Decrease 371,716.50 381,889.90 411,939.10 411,939.10 500,667.00

Net sale 7,062,613.50 7,255,908.10 7,826,842.90 7,826,842.90 9,512,673.00

Cost of good sold

Cost of good sold 864,450.00 833,980.00 761,985.00 761,985.00 824,494.00

Gross profit 6,198,163.50 6,421,928.10 7,064,857.90 7,064,857.90 8,688,179.00

Expense

Organization expense

140,597.00 140,597.00 140,597.00 140,597.00 140,597.00

Depreciation 42,576.00 42,576.00 42,576.00 42,576.00 42,576.00

Marketing expense 320,829.30 343,413.98 337,167.82 337,167.82 386,133.40

Total operating expense

504,002.30 526,586.98 520,340.82 520,340.82 569,306.40

EBIT 5,694,161.20 5,895,341.12 6,544,517.08 6,544,517.08 8,118,872.60

interest paid 116,799.96 116,799.96 116,799.96 116,799.96 116,799.96

Taxable income 5,577,361.24 5,778,541.16 6,427,717.12 6,427,717.12 8,002,072.64

Taxes (15%) 836,604.19 866,781.17 964,157.57 964,157.57 1,200,310.90

Net income 4,740,757.05 4,911,759.99 5,463,559.55 5,463,559.55 6,801,761.74 Dividend 474,075.71 491176.00 546355.96 546,355.96 680176.1744

Addition retain earning 4,266,681.35 4,420,583.99 4,917,203.60 4,917,203.60 6,121,585.57

Table 6.1 Summary of risk of sale decrease 5% for 5 years

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M i l k e r y


Milkery Company



Revenue

Sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00

Sale Decrease 5% 0.10 0.10 0.10 0.10 0.10

Sale Decrease 743,433.00 763,779.80 823,878.20 877,752.00 1,001,334.00

Net sale 6,690,897.00 6,874,018.20 7,414,903.80 7,899,768.00 9,012,006.00

Cost of good sold

Cost of good sold 864,450.00 833,980.00 761,985.00 785,974.00 824,494.00

Gross profit 5,826,447.00 6,040,038.20 6,652,918.80 7,113,794.00 8,187,512.00

Expense


140,597.00 140,597.00 140,597.00 140,597.00 140,597.00

Depreciation 42,576.00 42,576.00 42,576.00 42,576.00 42,576.00



504,002.30 526,586.98 520,340.82 539,898.20 569,306.40

EBIT 5,322,444.70 5,513,451.22 6,132,577.98 6,573,895.80 7,618,205.60

interest paid 116,799.96 116,799.96 116,799.96 116,799.96 116,799.96

Taxable income 5,205,644.74 5,396,651.26 6,015,778.02 6,457,095.84 7,501,405.64

Taxes (15%) 780,846.71 809,497.69 902,366.70 968,564.38 1,125,210.85



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Milkery Company



Revenue

Sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00

Sale Decrease 5% 0.15 0.15 0.15 0.15 0.15

Sale Decrease 1,115,149.50 1,145,669.70 1,235,817.30 1,316,628.00 1,502,001.00

Net sale 6,319,180.50 6,492,128.30 7,002,964.70 7,460,892.00 8,511,339.00

Cost of good sold

Cost of good sold 864,450.00 833,980.00 761,985.00 785,974.00 824,494.00

Gross profit 5,454,730.50 5,658,148.30 6,240,979.70 6,674,918.00 7,686,845.00

Expense


140,597.00 140,597.00 140,597.00 140,597.00 140,597.00

Depreciation 42,576.00 42,576.00 42,576.00 42,576.00 42,576.00



504,002.30 526,586.98 520,340.82 539,898.20 569,306.40

EBIT 4,950,728.20 5,131,561.32 5,720,638.88 6,135,019.80 7,117,538.60

interest paid 116,799.96 116,799.96 116,799.96 116,799.96 116,799.96

Taxable income 4,833,928.24 5,014,761.36 5,603,838.92 6,018,219.84 7,000,738.64

Taxes (15%) 725,089.24 752,214.20 840,575.84 902,732.98 1,050,110.80



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M i l k e r y

6.2.2 Risk of cost increase 5%, 10%, and 15% for 5 Years

Milkery Company



Revenue

Sale 7434330.00 7637798.00 8238782.00 8777520.00 10013340.00

Net sale 7434330.00 7637798.00 8238782.00 8777520.00 10013340.00

Cost of good sold

Cost of good sold 864450.00 833980.00 761985.00 785974.00 824494.00

Cost Increase 5% 0.05 0.05 0.05 0.05 0.05

Cost of good sold 5% 907672.50 875679.00 800084.25 825272.70 865718.70

Gross profit 6526657.50 6762119.00 7438697.75 7952247.30 9147621.30

Expense

Organization expense 140597.00 140597.00 140597.00 140597.00 140597.00

Depreciation 42576.00 42576.00 42576.00 42576.00 42576.00

Marketing expense 320829.30 343413.98 337167.82 356725.20 386133.40


504002.30 526586.98 520340.82 539898.20 569306.40

EBIT 6022655.20 6235532.02 6918356.93 7412349.10 8578314.90

interest paid 116799.96 116799.96 116799.96 116799.96 116799.96

Taxable income 5905855.24 6118732.06 6801556.97 7295549.14 8461514.94

Taxes (15%) 885878.29 917809.81 1020233.55 1094332.37 1269227.24

Net income 5019976.95 5200922.25 5781323.42 6201216.77 7192287.70 Dividend 501997.70 520092.23 578132.34 620121.68 719228.77

Addition retain earning 4517979.26 4680830.03 5203191.08 5581095.09 6473058.93

Table 6.4 Summary of risk of cost increase 5% for 5 years

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Milkery Company



Revenue

Sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00

Net sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00

Cost of good sold

Cost of good sold 864,450.00 833,980.00 761,985.00 785,974.00 824,494.00

Cost Increase 5% 0.10 0.10 0.10 0.10 0.10

Cost of good sold 5% 950,895.00 917,378.00 838,183.50 864,571.40 906,943.40

Gross profit 6,483,435.00 6,720,420.00 7,400,598.50 7,912,948.60 9,106,396.60

Expense

Organization expense 140,597.00 140,597.00 140,597.00 140,597.00 140,597.00

Depreciation 42,576.00 42,576.00 42,576.00 42,576.00 42,576.00



504,002.30 526,586.98 520,340.82 539,898.20 569,306.40

EBIT 5,979,432.70 6,193,833.02 6,880,257.68 7,373,050.40 8,537,090.20

interest paid 116,799.96 116,799.96 116,799.96 116,799.96 116,799.96

Taxable income 5,862,632.74 6,077,033.06 6,763,457.72 7,256,250.44 8,420,290.24

Taxes (15%) 879,394.91 911,554.96 1,014,518.66 1,088,437.57 1,263,043.54

Net income 4,983,237.83 5,165,478.10 5,748,939.06 6,167,812.87 7,157,246.70 Dividend 498323.78 516547.81 574893.91 616781.29 715724.67



P a g e | 108

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Milkery Company



Revenue

Sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00

Net sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00

Cost of good sold

Cost of good sold 864,450.00 833,980.00 761,985.00 785,974.00 824,494.00

Cost Increase 5% 0.15 0.15 0.15 0.15 0.15

Cost of good sold 5% 994,117.50 959,077.00 876,282.75 903,870.10 948,168.10

Gross profit 6,440,212.50 6,678,721.00 7,362,499.25 7,873,649.90 9,065,171.90

Expense


Depreciation 42,576.00 42,576.00 42,576.00 42,576.00 42,576.00



504,002.30 526,586.98 520,340.82 539,898.20 569,306.40

EBIT 5,936,210.20 6,152,134.02 6,842,158.43 7,333,751.70 8,495,865.50

interest paid 116,799.96 116,799.96 116,799.96 116,799.96 116,799.96

Taxable income 5,819,410.24 6,035,334.06 6,725,358.47 7,216,951.74 8,379,065.54

Taxes (15%) 872,911.54 905,300.11 1,008,803.77 1,082,542.76 1,256,859.83

Net income 4,946,498.70 5,130,033.95 5,716,554.70 6,134,408.98 7,122,205.71 Dividend 494649.87 513003.40 571655.47 613440.90 712220.57



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6.2.3 Risk of interest increase 5%, 10%, and 15% for 5 Years

Milkery Company



Revenue

Sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00

Net sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00

Cost of good sold

Cost of good sold 864,450.00 833,980.00 761,985.00 785,974.00 824,494.00

Gross profit 6,569,880.00 6,803,818.00 7,476,797.00 7,991,546.00 9,188,846.00

Expense


Depreciation 42,576.00 42,576.00 42,576.00 42,576.00 42,576.00


Total operating

expense

504,002.30 526,586.98 520,340.82 539,898.20 569,306.40

EBIT 6,065,877.70 6,277,231.02 6,956,456.18 7,451,647.80 8,619,539.60

Interest 116,799.96 116,799.96 116,799.96 116,799.96 116,799.96

Interest increase 5% 0.05 0.05 0.05 0.05 0.05

Interest paid 122,639.96 122,639.96 122,639.96 122,639.96 122,639.96

Taxable income 5,943,237.74 6,154,591.06 6,833,816.22 7,329,007.84 8,496,899.64

Taxes (15%) 891,485.66 923,188.66 1,025,072.43 1,099,351.18 1,274,534.95

Net income 5,051,752.08 5,231,402.40 5,808,743.79 6,229,656.67 7,222,364.70 Dividend 505,175.21 523,140.24 580,874.38 622,965.67 722,236.47


Table 6.7 Summary of risk of interest increase 5% for 5 years

P a g e | 110

M i l k e r y

Milkery Company



Revenue

Sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00

Net sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00

Cost of good sold

Cost of good sold 864,450.00 833,980.00 761,985.00 785,974.00 824,494.00

Gross profit 6,569,880.00 6,803,818.00 7,476,797.00 7,991,546.00 9,188,846.00

Expense


Depreciation 42,576.00 42,576.00 42,576.00 42,576.00 42,576.00



504,002.30 526,586.98 520,340.82 539,898.20 569,306.40

EBIT 6,065,877.70 6,277,231.02 6,956,456.18 7,451,647.80 8,619,539.60

Interest 116,799.96 116,799.96 116,799.96 116,799.96 116,799.96


Interest paid 128,479.96 128,479.96 128,479.96 128,479.96 128,479.96

Taxable income 5,937,397.74 6,148,751.06 6,827,976.22 7,323,167.84 8,491,059.64

Taxes (15%) 890,609.66 922,312.66 1,024,196.43 1,098,475.18 1,273,658.95

Net income 5,046,788.08 5,226,438.40 5,803,779.79 6,224,692.67 7,217,400.70 Dividend 504,678.81 522,643.84 580,377.98 622,469.27 721,740.07



P a g e | 111

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Milkery Company



Revenue

Sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00

Net sale 7,434,330.00 7,637,798.00 8,238,782.00 8,777,520.00 10,013,340.00

Cost of good sold

Cost of good sold 864,450.00 833,980.00 761,985.00 785,974.00 824,494.00

Gross profit 6,569,880.00 6,803,818.00 7,476,797.00 7,991,546.00 9,188,846.00

Expense


Depreciation 42,576.00 42,576.00 42,576.00 42,576.00 42,576.00



504,002.30 526,586.98 520,340.82 539,898.20 569,306.40

EBIT 6,065,877.70 6,277,231.02 6,956,456.18 7,451,647.80 8,619,539.60

Interest 116,799.96 116,799.96 116,799.96 116,799.96 116,799.96


Interest paid 134,319.95 134,319.95 134,319.95 134,319.95 134,319.95

Taxable income 5,931,557.75 6,142,911.07 6,822,136.23 7,317,327.85 8,485,219.65

Taxes (15%) 889,733.66 921,436.66 1,023,320.43 1,097,599.18 1,272,782.95

Net income 5,041,824.08 5,221,474.41 5,798,815.79 6,219,728.67 7,212,436.70

Dividend 504,182.41 522,147.44 579,881.58 621,972.87 721,243.67



M i l k e r y

Chapter 7 Summary

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M i l k e r y

Chapter 7 Summary

As we are determined the possibility of possible business performs, so we are

going to know the feasibility of business so far. Milkery is the meeting and relaxing

restaurant of every age from teenage to older because time of relax is time of drink such

sleeping time. We provide the dairy product, beverage, and bakery. We try to produce

our products by use the best ingredients and good for health that appropriate with the

customers that concern about healthy. We have many menus to choose and price not

expensive. The main menus are milk shake, hot/iced milk, hot/iced coffee, cake and

bakery. Our shop has many zones provide for customers to choose as you like it.

Customers can feel like they eating at home because our services are familiarly and give

the best for them because we think we like a customer to know what customers want.

Our main target group is students because we provide the place that they can meet and

relax together. And other target group is working group such as lecturer they can come

to relax at free time.

When we set up Milkery, we must thinking and planning about objective and

benefit objective. For the objective we study about trend of food and beverage business,

possibility of food and beverage business in the future, analyze the marketing and

financial risk feasibility in food and beverage business and analyze the SWOT and

competitors of our business. And benefit objective to know the benefit and trends of

food and beverage business, the SWOT and competitors of our business, plan and

structure when doing business in real situation, methods for making high in sale food

and beverage, able to apply the plan for getting high profit/return on investment and

manage the business to success. And the plan is most feasible and high success in real

business that able to guide in the future.

In set up business, we must tell about company, product and process of product

so in about Milkery. In about history of bakery, Bakery culture of Western culture since

prehistoric ago. Massage into flour after that place on hot stones near the oven until

cooked starch and get Starch plate frame. Assumed it is the bread in the present.

Subsequently discovered yeast by forgot flour to several hours. Baking began as a

common sequence Initiative by the ancient Greeks to the off larger oven for people took

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M i l k e r y

to bake bread. It is not surprising that the frontiers between Cake and bread, biscuit and

bun are indistinct. The progenitor of all is bread in its simplest form. The continental

European gateau and torte often contain higher proportions of butter, eggs and

enriching ingredients such as chocolate, and often lean towards pastry rather than cake.

The western tradition of cakes applies little in Asia. In some countries western-style

cakes have been adopted on a small scale, for example the small sponge cakes called

kasutera in Japan.

The history of cakes goes a long way back. Ancient Egypt was the first culture to

show evidence of true skill in baking, making many kinds of bread including some

sweetened with hone. Chaucer mentions immense cakes made for special occasions.

Moulds, in the form of cake hoops or pans have been used for forming cakes

since at least the mid-17th century. Most cakes were eaten accompanied by a glass of

sweet wine or tea. At large banquets, elaborately decorated cakes might form part of the

display, but would probably not be eaten. During the 19th century, technology made the

cake-baker's life much easier. In most of NW Europe and North America a well-

developed tradition of home baking survives, with a huge repertoire of cake recipes

developed from the basic methods. The ability to bake a good cake was a prized skill

among housewives in the early to mid-20th century, when many households could

produce a simple robust, filling 'cut and come again' cake, implying abundance and

hospitality.

Beyond from detail of bakery, in about business we must know situation

analysis, detail competitive in near around our business. Situation of industry is in the

period’s time around 10-15 years ago. Bakery and cake become popular in Thailand,

Thai people want to eat and fun with it. So there are many milk and bakery shop that

affecting to our company so Our Company want to give good quality and not expensive

for all of people can go to enjoy and happy with us. We will provide a new kind of food

and beverage by different equipment and adapt technology into our service for

customer get benefits and satisfy when come to join with us more than others. And we

have many promotions to attraction customer and behavior of them.

We will set vision and mission. Vision of our organization is within 5 years is the

shop milk and bakery is famous and receive accept quality and service be number one of

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M i l k e r y

the shop Milkery. And we created Milkery for attract our customers to meet the best of

service, atmosphere, cleanliness, and quality of products. The key thing, we wish the

customers have smile and to be happy when come to our café or buy our products.

And about mission we are the manufacturer of milk and bakery to provide

professional services with fresh milk and bakery quality in reasonable price and taking

into account the health of consumers are important. And we provide good service,

atmosphere, cleanliness and consistent with the needs of consumers. Moreover control

manufacturer of milk and bakery and provide good quality with modern machinery and

fresh raw materials. Maintain cleanliness in production lines and facilities.

In market analysis we must know about general environment analysis. The

general environmental analysis in our business planning normally refers to conditions

and internal - external factors to our company, outside of our company's control that

might affect its sales, market, costs, and so forth. Political factors According to the

conflict between red shirt and yellow shirt, it has effect to business and investment side.

From that conflict, most people would feel disgusted and don’t want to do anything. So,

the government has a policy to reduce the loan rate and personal income tax rate to

help small and medium enterprise to be continuing. And also we should change the

crisis as an opportunity by creating promotions for attractive the customers come to

our shop. Economic factors are the growth rate seen by the business such as hotel,

restaurant, entertainment, and etc. Social factor is Milkery wants to makes the first

impression about new style of milk and makes customer satisfaction. And technology

factors is Milkery has the technology to use in our shop such as the inside area of our

shop provide the wireless for the customer who come to shop, almost appliances in our

shop is the electricity because we want to fast deliver and serve the products to

customers and make them feel happy with our services. So, our shop has more

competitive advantages than other competitors. Competition analysis [3c analysis] such

as competitor analysis, we define the competitors who provide service as same as us.

For local coffee shop or weak group that we think they will become a high performance

competition will be.

Our competitors are Milkery that set up around Mae Fah Luang University can

divides two types. The first direct competitor has 3 competitors including with; Nom Na

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M i l k e r y

Mor, Nom Chompoo and Kin Nom Kan, Second indirect competitor has 3 competitors

including with; Boss coffee, Banoffee and D-Jang Bakery

In about STP analysis, like we said about the Strategy that I targeted on student

both of high school and university, so most of customer would be people who free and

have a full time to relax or small meeting even date. The segmentation we that provide

product of fresh milk and bread which is the product for consumer and benefits for

health and body. Marketing mix strategy we focus on 4P.

Product: Our company concern about healthy business because our company aware of

business opportunities in terms of health.

Price: “Milkery” set the same price for general products because we are new shop in

this business. And including to set up price to promote in some period of time for

stimulate our net sales such as, in the Birthday, Valentine day or other important day.

Place: “Milkery Shop” is the milk and bakery shop and this product is appropriate for

people e who loves healthy and the group of people who loves drink milk.

Promotion: “Milkery Shop” is locate near the university so we try to represents the

various aspect of marketing communication that is the communication of information

about the product of Milkery shop with the goal of generating a positive customer

response.

Our company has high of net income but spent money to investment and

advertising to low. In addition our company has increase net income in every year. So it

makes the owner and investor can gain more money and get more benefit from our

company.

Technical Feasibility Study about location. Milkery is located at front and

opposite to Mae Fah Luang University in a single building with 2 floors. The area of

building is about 10*12 meters or 400 squares. Our shop is near the location of many

dormitories of student of Mae Fah Luang University, Fah Thai market, and etc. Milkery

also provided many car parks and table for customers because we can’t forecast about

the amount of customer who come to our shop in a day. In addition our shop is modern

designed and decorate with colorful to attract the customers and new customer come to

our shop.

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M i l k e r y

Layout our company has two floor for server both product and service.

First Floor

Second Floor

About cost of investment

Cost of investment

Location 300,000

Label Cost 21,200

Logo 3,000

Internet (wireless) & Telephone 2,000

Total 176,200

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Equipment & Material Price per

unit No. units Total

Part 1: Equipment

- Coffee Machine

- Coffee Grinder

- Blender

- Cake Display

- Refrigerator

- Glass jar



- Coffee long spoon

- Dish

- Fork

- Oven

- Microwave

- Toaster

- Sandwich maker

- Cash machine

- Other

50,000

25,000

8,300

40,000

9,500

235

380

30

40

15

5

15,500

4,990

2,290

1,780

4,590

-

1

1

2

1

1

3

1

1

1

40

40

2

1

1

2

1

-

50,000

25,000

16,600

40,000

9,500

705

380

30

40

600

200

31,000

4,990

2,290

3,560

4,590

-

Total 189,485

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About of management analysis Milkery is the company which registers to be a

justice person likes company limited. Limited company is cooperation with

shareholders who enjoys limited liability. Follow the new law tells that Company

limited will be arise as there are partnership and shareholder from 5 people and

organization management is basically a “to do” list for an organization. It lists out the

plan of work, programs, and organizational growth over a period of time - six months, a

year. The tasks involved, who is responsible for them, and when they’ll be done.


- Table

- Chair

- Book shelf & Toy shelf

833

136

1,750

18

44

4

15,000

6,000

7,000

Total 28,000

Part 3: Furniture

- TV

- Lighting

- Stereo

- Counter

20,000

-

15,000

15,000

1

-

1

1

20,000

5,000

15,000

15,000

Total 55,000

Part 4: Decorate Restaurant

- Painting & Wallpaper

-

-

15,000

Total 15,000

Total Investment cost 287,485

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M i l k e r y

For financial analysis, the possibility financial estimation, it let us know about the

expense or investment of this business. For example it has office equipment

expenditure, production equipment expenditure, marketing expenses which are facility,

raw material, and salary. These expenses can divide into 2 types; fixed cost and variable

cost. When we analyze the financial of business we can know that our business have

increase or decrease of income in each months. Such decrease or increase of income

depends on seasonal of product. Our sale profit increase rapidly since year 1 to year 5

but we will not to drop develop the existing product and produce a new one to attract

our customer. So although sale will increase but we still to use for increase of cost. Our

business can’t payback from investment to do business into1 year adding interest rate

will have high rate for 10% that we must pay back into 3 years. We can pay back the

loan before schedule to appointment for pay a debt to bank.

Finally, we must know and understandings about risk in management of

business. There are 2 main risks which we will concern; risk management analysis and

financial risk. For Risk management analysis we talk about competitors risk that we

have a lot of competitors but they are not the strong competitors. About external risk—

we talk about PEST analysis (Political, Economic, Social, and Technology)—each factor

affect our business but not much because we already set some barrier for any

competition. Another is internal risk contain of price and how to enter to market

because we are the newest milk and bakery that aim to compete with favorite milk and

bakery in Chiang Rai. It is quite difficult to build the name to be famous and also about

the price.

For Financial risk analysis, it almost about interest rate because about sales we

can control but the interest is still stable until we can pay all of money that we have

loan.

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M i l k e r y

Reference

Manotungvorapun N. (n.d.). Business Stratege. Retrieved November 15, 2010, from

http://tulip.bu.ac.th/~nisit.m/business%20strategies

(2010). Retrieved December 5, 2010, from Horapa.com:

http://www.horapa.com/content.php?Category=Healthy&No=247/

Bakery House. (n.d.). History of Bakery. Retrieved November 10, 2010, from

http://bakeryhouse.net78.net/home.html

Commercial Department. (2007). the GPP of Chiang Rai Province. Retrieved November

21, 2010, from http://www.chiangrai.net/~crmoac/LinkData/13_1_1.doc

Hilunch Team. (n.d.). Beverage Recipe. Retrieved November 10, 2010, from

HiLunch.com: http://www.hilunch.com/

Kanyarat. (2008). Benefits of milk. Retrieved December 1, 2010, from

http://www.thaihealth.or.th/node/5265

Mae Fah Luang University. (2009). Report of Total Students. Retrieved November 28,

2010, from http://reg.mfu.ac.th/registrar/statistics/main_m.htm

Maeyingzine. (2008). Coffe seeds. Retrieved December 5, 2010, from http://coffee-

blood.blogspot.com/2008/04/blog-post.html

Ministry of Finance. (2010). Taxes. Retrieved November 20, 2010, from

http://www.mof.go.th

PakBakery. (2006). Retrieved November 11, 2010, from PakBakery.com:

http://www.pakbakery.com/

Political Situation. (2010). Retrieved January 15, 2011, from

htto://guru.sanook.com/encyclopedia/, http://dusitnews.com/index.php/ home/51-

dusitpoll/107--q-q-2553-

Products and Supply Service Co., Ltd. (2010). Equipments and machines. Retrieved

January 1, 2011, from http://www.productsdd.com/product?lang=th

Tim. (2007). Environment Analysis. Retrieved November 16, 2010, from

http://bplans.typepad.com/blog/2007/12/qa-environmenta.html

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M i l k e r y

Appendix

Receipts of milk, bakery, and snack

Milk shake products

Milk and milk shake

Yogurt Milk Shake

Ingredients

- 1 1/2 cups milk

- 1 cup non-fat yogurt

- 1/4 cup honey

- 1 teaspoon vanilla extract

- 1/2 teaspoon ground cinnamon

- 1/8 teaspoon ground nutmeg

- 1/4 cup ice cubes

How to make?

1. Combine milk, yogurt, honey, vanilla, cinnamon and nutmeg in a blender.

2. Process until thick and creamy, about 2 minutes. Add ice and blend until smooth.

Serve immediately.

Chocolate Milk Shake

Ingredients

- 1 cup (about 2 scoops) vanilla frozen yogurt

- 1 packet Rich Milk Chocolate NESTLÉ® CARNATION® INSTANT BREAKFAST

Nutritional Energy Drink

- 1/2 cup milk

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How to make?

1. Place frozen yogurt, Carnation Instant Breakfast and milk in blender; cover.

Blend until smooth.

Strawberry Milk Shake

Ingredients

- 2 cups vanilla ice cream

- 1 cup milk

- 1/2 cup frozen strawberries

How to make?


Blend until smooth.

Chocolate Chip Cookie Milkshake

Ingredients

- 1 pint (2 cups) vanilla ice cream

- 2 cups (about 8) freshly baked and crumbled NESTLÉ® TOLL HOUSE®

Refrigerated Chocolate Chip Cookies

- 1 cup milk or 2/3 cup NESTLÉ® CARNATION® Evaporated Milk, chilled

How to make?


Blend until smooth.

Honey Milk Shake

Ingredients

- 2 cups vanilla ice cream

- 1 cup milk

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M i l k e r y

- 1/2 cup honey

How to make?

1. Place frozen honey, Carnation Instant Breakfast and milk in blender; cover. Blend

until smooth.

Coffee shake products

Iced Cappuccino

Ingredients

- 3/4 cup milk

- 1 packet Cappuccino NESTLÉ® CARNATION® INSTANT BREAKFAST Nutritional

Energy Drink

- 1/2 teaspoon vanilla extract (optional)

- 1/8 teaspoon ground cardamom


- 1/2 cup ice cubes

How to make?

1. Place milk, Carnation Instant Breakfast, vanilla extract, cardamom and cinnamon

in tall glass; stir until combined. Add ice.

Iced Latte

Ingredients

- 3/4 cup cold water

- 3/4 cup milk

- 2 tablespoons French Roast NESCAFÉ® Gourmet Instant Coffee

- 1 cup ice cubes

- 2 tablespoons (or more) granulated sugar

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M i l k e r y

How to make?

1. Place water, milk and Nescafé in blender; cover. Blend until coffee is dissolved.

Add iced and sugar; blend until smooth. Serve immediately.

Iced Mocha

Ingredients

- 3/4 cup milk

- 2 teaspoons French Roast NESCAFÉ® Gourmet Instant Coffee

- 1 cup ice cubes

- 1 large scoop chocolate ice cream or frozen yogurt

- 1 tablespoon granulated sugar

How to make?

1. Place milk and Nescafé in blender; cover. Blend until coffee is dissolved. Add

ice, ice cream and sugar; blend until smooth. Serve immediately.

Iced Café Americano

Ingredients

- 1 1/2 teaspoons NESCAFÉ TASTER'S CHOICE 100% Pure Instant Coffee Granules

- 1 teaspoon granulated sugar

- 3/4 cup hot water

- 1/4 cup any flavor Café Americano NESTLÉ COFFEE-MATE Liquid Coffee

Creamer

Ice cubes

How to make?

2. Place frozen honey, Carnation Instant Breakfast and milk in blender; cover. Blend

until smooth.

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M i l k e r y

Iced Espresso

Ingredients

- 1/2 cup ground espresso coffee or French roast coffee

- 1 teaspoon finely shredded orange peel

- 4 cups water

- 1 1/2 cups skim milk

- 3 tablespoons granulated sugar

- Ice cubes

- Orange peel strips (optional)

- 1 teaspoon grated semisweet chocolate (optional)

How to make?

1. Prepare coffee with shredded orange peel and water in a drip coffee maker or

percolator according to manufacturer's directions. Pour coffee into a heatproof

pitcher; stir in sugar and milk. Chill at least 3 hours or until serving time.

2. To serve, fill 6 glasses with ice cubes; pour coffee mixture over ice. Garnish with

orange peel strips and grated chocolate, if desired.

Tea shake products

Green Tea Smoothie

Ingredients

- 4 rounded scoops vanilla frozen yogurt or ice cream

- 1 cup milk

- 3 tablespoons NESTEA® Unsweetened Instant 100% Tea

- 1/8 to 1/4 teaspoon ground cardamom

How to make?

1. Place frozen yogurt, milk, Nestea and cardamom in blender; cover. Blend until

smooth.

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M i l k e r y

Strawberry Iced Tea

Ingredients

- 1 ounce sweet and sour mix

- 2 ounces frozen sliced California Strawberries in syrup, partially thawed

- 1/2 ounce rum

- 1/2 ounce vodka

- 1/2 ounce gin

- 1/2 ounce triple sec

- 1 scoop ice

- Splash of lemon-lime soda

- Whole fresh California Strawberry

How to make?

1. In a blender combine all ingredients except whole berry and lemon-lime soda;

flash blend.

2. Pour into tall glass. Splash lemon-lime soda on top. Garnish with whole berry.

Milk Fruity syrup shake products

Mango Yogurt Smoothie

Ingredients

- 4 to 7 ice cubes

- 1 cup (8 ounces) plain fat-free yogurt

- 3/4 cup mango slices in extra light syrup,* drained

- 1 teaspoon sugar substitute (optional)

- Mango slices for garnish (optional)

How to make?

1. Place ice in bottom of blender. Add yogurt, mango and sugar substitute, if

desired. Blend ingredients until smooth.

2. Pour into a tall glass and garnish with mango slices, if desired.

3. Serve immediately.

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M i l k e r y

Banana Papaya Smoothie

Ingredients

- 1 cup milk

- 1/2 cup sliced peeled banana

- 1/2 cup chopped seeded and peeled papaya

- 1 tablespoon honey

How to make?

1. Combine milk, banana, papaya and honey in a blender and purée until smooth.

Pour into a large glass and serve.

Orange Smoothie

Ingredients

- 1 ripe medium banana, cut up

- 1 (8-ounce) can crushed pineapple (juice pack), chilled

- 1/2 of a (6-ounce) can frozen orange juice concentrate (1/3 cup)

- 1 1/2 cups vanilla low fat ice cream

- 1 cup fat free skim or 1% low fat milk

- Shredded coconut, toasted

How to make?

1. In a blender container, combine banana, untrained pineapple and orange juice

concentrate. Cover and blend until almost smooth. Add low fat ice cream and fat

free skim or 1% low fat milk. Cover and blend until smooth.

2. Pour into glasses. Top each serving with a little toasted coconut; serve

immediately.

Blueberry Smoothie

Ingredients

- 1 pint fresh blueberries or 2 cups (10-ounces) frozen blueberries

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M i l k e r y

- 1 cup pineapple-orange-strawberry juice blend or pineapple-orange juice

- 1 (8-ounce) container low-fat vanilla yogurt

- 2 teaspoons granulated sugar

- 5 to 6 ice cubes

How to make?

1. Place all ingredients, except the ice cubes, into container of electric blender and

blend on high until smooth.

2. With blender running, add 2 to 3 ice cubes at a time through the center opening

in the lid until all ice cubes have been added. Blend until smooth. Serve

immediately.

Strawberry Smoothie

Ingredients

- 1 cup frozen strawberries

- 1 packet No Sugar Added Classic French Vanilla NESTLÉ CARNATION® INSTANT

BREAKFAST Nutritional Energy Drink

- 1/2 cup milk

- 1 (8-ounce) container vanilla yogurt

How to make?

1. Place strawberries, Carnation Instant Breakfast, milk and yogurt in blender;

cover. Blend until smooth.

Apple Smoothie

Ingredients

- 2 cups chopped, cored and peeled Granny Smith apples

- 1 cup Apple Flavor LIBBY'S® JUICY JUICE® 100% Juice


- 1 1/2 pints vanilla frozen yogurt

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M i l k e r y

How to make?

1. In a blender combine half the apples, cinnamon and apple juice. Process until

smooth. Add half the frozen yogurt and purée until well blended.

2. Pour into two freezer safe glasses and freeze until ready to use. Repeat process

with remaining ingredients. Serve cold.

Kiwi Smoothie

Ingredients

- 1 large kiwi, peeled

- 1 (8 ounce) container low-fat vanilla yogurt

- 1/4 cup honey

- 12 to 15 ice cubes

How to make?

1. In a blender or food processor, combine all ingredients and process until smooth.

Serve immediately.

Grape Smoothie

Ingredients

- 1/2 cup seedless grapes

- 1/2 cup milk

- 1/2 cup plain yogurt

- 1/4 cup crushed ice

- 1 tablespoon packed brown sugar

- 1/8 teaspoon vanilla extract

How to make?

1. Combine grapes, milk, yogurt, brown sugar, vanilla and crushed ice in a blender.

Process on high speed for 15 seconds. Serve immediately.

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M i l k e r y

Beverage products

Tea Punch

Ingredients

- 2 cups water

- 1 cup granulated sugar

- 2 cups boiling water

- 2 teabags

- 2 cups hot water

- 2 (32-ounce) bottles ginger ale

- 4 cups pineapple juice

- 2 1/2 cups orange juice

- 2 cups lemon juice

- 1 teaspoon red food coloring, (optional)

How to make?

1. Combine sugar and boiling water in a large pot stirring until sugar is dissolved;

set aside.

2. Place teabag in hot water and let steep for 5 minutes; discard teabag. Add tea to

sugar mixture, stir and add ginger ale, pineapple juice, orange juice, lemon juice,

and red food coloring; refrigerate.

Lemonade Punch

Ingredients

- 1 (6-ounce) can frozen lemonade concentrate, thawed and undiluted

- 1 (6-ounce) can frozen limeade concentrate, thawed and undiluted

- 1 (6-ounce) can frozen orange juice concentrate, thawed and undiluted

- 3 cups cold water

- 1 (2 liter) bottle ginger ale, chilled

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How to make?

1. Combine the first 4 ingredients; add the ginger ale and stir gently. Serve

immediately.

Orange Cream Punch

Ingredients

- 1 (14-ounce) can sweetened condensed milk

- 1 (12-ounce) can frozen orange juice concentrate, thawed

- Orange food coloring

- 2 (1-liter) bottles club soda or ginger ale, chilled

- Orange sherbet

How to make?

1. In a punch bowl combine sweetened condensed milk and orange juice

concentrate. Tint with orange food coloring, if desired. Add club soda.

2. Top with small scoops of orange sherbet. Serve immediately.

Strawberry Punch

Ingredients

- 2 cups granulated sugar

- 6 cups water, boiling

- 4 cups unsweetened pineapple juice

- 2 1/2 cups orange juice

- 2 packages frozen strawberries, thawed (with juice)

- 1 (2-liter) bottle lemon-lime carbonated beverage

How to make?

1. Dissolve sugar in boiling water in a Dutch oven; stir in pineapple juice, orange

juice, strawberries and lemon-lime carbonated beverage. Pour mixture into a

large plastic container. Cover and freeze until mixture is firm.

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2. Remove from freezer 1 hour before serving. Place in a punch bowl and break into

chunks. Add lemon-lime beverage; stir until slushy.

Mango Punch

Ingredients

- 4 cups fresh mango puree (from 8 soft, ripe mangoes*; or from canned mango)

- 2 quarts water

- 1 cup granulated sugar

- 1/2 cup fresh lime juice (2 to 3 limes)

- 1/2 cup red prickly pear syrup (or grenadine)

How to make?

1. Puree mango in food processor or blender until smooth; strain to remove any

pulp. Place mango puree into large pitcher or punch bowl; stir in water, sugar

and lime juice.

2. To serve, fill drinking glasses with ice cubes and mango juice, and then add 1 to 2

teaspoons prickly pear syrup or grenadine to each glass.

Tea Punch

Ingredients

- 6 small tart apples

- 1 tablespoon packed brown sugar

- 1 quart apple cider

- 1/4 teaspoon freshly ground nutmeg

- 1/2 teaspoon cinnamon

- 1/4 cup granulated sugar

- 2 cups dry sherry

- 4 thin lemon slices

How to make?

1. Preheat oven to 350°F (175°C). Grease a 10 x 6 x 1 1/2-inch baking pan.

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2. Core and halve apples, arrange (cut side up) in pan. Sprinkle with brown sugar

and bake in preheated oven for 20 minutes or until tender. Set aside.

3. Just before serving, pour cider in saucepan and heat to just below boiling point.

Stir in remaining ingredients over low heat until sugar is dissolved.

4. Remove lemon slices. Pour mixture into punch bowl.

5. Garnish with apple halves.

Grape Punch

Ingredients

- 1 (11.5-ounce) can Welch's® Grape Juice Makers

- 1 (11.5-ounce) can frozen pineapple juice concentrate

- 1 (6-ounce) can frozen orange juice concentrate

- 1 (6-ounce) can frozen lemonade juice concentrate

How to make?

1. Pour grape juice in large pitcher or punch bowl and prepare according to

directions on the can.

2. Add the pineapple, orange and lemonade juice concentrates; stir until well

mixed.

Bakery and Snack products

Bakery

Cake: strawberry cake or chocolate cake

Strawberry Pinwheel Cake

Cake:

- 4 large egg yolks

- 2 large eggs

- 1/2 cup granulated sugar

- 1 cup sifted cake flour

- 1 teaspoon baking powder

- 1 teaspoon salt

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- 1 1/2 tablespoons warm water

- 2 teaspoons vegetable oil


- Powdered sugar

Strawberry Filling:

- l cup whipping cream

- 1 tablespoon granulated sugar

- 3 tablespoons prepared lemon curd, at room temperature*

- 1 pint basket (about 3 1/4 cups) California strawberries, stemmed and coarsely

chopped

Garnish:

- Powdered sugar

- 1 pint basket (about 3 1/4 cups) California strawberries

How to make?

1. To make Cake: Heat oven to 375°F (190°C). Line 15 x 10-inch jelly roll pan with

aluminum foil; coat with vegetable cooking spray.

2. In large mixer bowl beat yolks and eggs at high speed about 5 minutes until thick

and lemon-colored. Continuing at high speed, gradually beat in granulated sugar

until mixture is pale and thick. Gently fold in dry ingredients except powdered

sugar to blend thoroughly. Fold in water, oil and vanilla. Spread batter evenly in

prepared pan. Bake in center of oven about 10 minutes until springy to the touch.

3. Meanwhile, coat a clean dishtowel with powdered sugar. Invert hot cake onto

towel close to one long edge. Gently peel off foil. Trim 1/2-inch off each short

side of cake. Starting from long side, tightly roll cake and towel. Set on rack to

cool completely.

4. To make Strawberry Filling: In mixer bowl whip cream to form soft peaks. Beat

in sugar to form stiff peaks. Fold in lemon curd to blend thoroughly. Mix in

chopped strawberries.

5. Gently unroll cake. Spread strawberry mixture evenly on cake and re-roll. Place

seam-side-down. Dust with powdered sugar.

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6. To serve: Cut into 8 (about 1 3/4-inch) equal slices. Place each slice on a serving

plate. Garnish with whole and halved strawberries.

Moist and Chewy Chocolate Cake

Chocolate Cake:

- 1 1/2 cups all-purpose flour

- 1 teaspoon baking soda

- 1/4 teaspoon salt

- 1 1/4 cups granulated sugar

- Chocolate Flavor


- 2 large eggs

- 1 cup milk

- 1/2 cup (1 stick) butter or margarine, softened

- 3 (1-ounce) packets NESTLÉ® TOLL HOUSE® Choco Bake Unsweetened

Rich Chocolate Frosting:

- 3 cups to 3 1/4 sifted powdered sugar

- 1/3 cup milk

- 1/4 cup butter or margarine, softened

- 2 (1-ounce) packets NESTLÉ® TOLL HOUSE® Choco Bake Unsweetened

- Chocolate Flavor

- 2 teaspoons vanilla extract

- 1/4 teaspoon salt

How to make?

1. For Cake: Beat sugar, butter, Choco Bake and vanilla extract in large mixer bowl

for 4 minutes. Add eggs; beat well. Combine flour, baking soda and salt; beat into

sugar mixture alternately with milk.

2. Spread into two well-greased 9-inches round baking pans or one 13 x 9-inch

baking pan.

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3. Bake in preheated 350°F (175°C) oven for 25 to 30 minutes or until wooden pick

inserted in center comes out clean. Cool in pan(s) for 15 minutes; invert onto

wire rack(s) to cool completely.

4. Frost with Rich Chocolate Frosting.

5. For Rich Chocolate Frosting: Beat sugar, milk, butter, Choco Bake, vanilla extract

and salt in small mixer bowl until smooth and creamy.

Cookie

Bread with jam

Ingredients

- Jam (strawberry, chocolate, milk, pineapple, orange, etc)

- Bread

How to make?

1. Bread with yam it made easy for you by to bring bread bake or toast after that

brings yam paint on the bread.

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Sunk Ka Ya Baitoey

Ingredients

- Coconut mill one or 0.5 cup

- Screw pine10 leaf

- Water one cup

- Sugar 0.5 cup

- Palm sugar 0.5 cup

- Two eggs

- Corn starch ¼ cup

How to make?

1. To clean screw pine and cut screw pine is small and put to millstone. After that to

squeeze and percolate for screw pine.

2. To bring corn starch put in water screw pine and stir together.

3. To mix palm sugar, sugar and coconut milk together until sugar melt all.

4. To bring ingredient water screw pine mix with coconut milk. After that stir all of

this conforms. Then whip eggs and mix together. And ingredient all of this

percolate.

5. To open power fire that wait fire prepare for fry. Then bring is water three cup

put in pot when boil water bring all of ingredient in put and reduce for fire that

stir all of this conforms.

After that scoop up and scatter over by condensed milk already to serve for customer.

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Snack:

French Fried

Ingredients

- Potato

- Salt

- Oil

How to make?

1. It made of 4 russet potatoes, peeled and sliced into even strips (between 1/4″ to

1/8″) Peanut oil, filled to within four inches of the top of the pot salt

2. Rinse the cut potatoes in a colander until the water runs clear. Put the potatoes

into a bowl, cover with water and add ice. Refrigerate for an hour.

3. Heat the oil over medium low heat, with a deep-frying thermometer, until the oil

reaches 325F. Prepare a sheet pan with a few layers of paper towel for draining

the fries once they are cooked.

4. Strain the potatoes and pat them with a clean dish cloth, or paper towels, until

they are very dry.

5. Drop the fries, by the hand full, into the oil and cook until they are golden and

soft, about 4 – 6 minutes. Remove from the oil and drain on the paper towel lined

sheet pan. Repeat with the remaining fries. Let the potatoes drain for at least

twenty minutes or up to an hour.

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6. Increase the heat of the oil to 375F and cook the par cooked fries for 1 – 2

minutes, or until very crisp and golden. Remove from the oil and immediately

season with salt.

Dumpling Fried

Ingredient of sauce

- Vinegar ½ cups

- Sugar ½ cup

- Water ¼ cups Dumpling about 30 leaf

- Cut cheese to small die

- Water

- Oil for fry

How to make?

1. To cut cheese is small die and then chesses down in center of kaew and after that

we will be wrapping to prepare to fry.

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Kaew Sa

Ingredients

- 6 cups minced napa cabbage leaves, shredded

- 1 1/2 teaspoon table salt (no kosher as it is too coarse)

- 1 1/2 lbs ground pork

- 3/4 cup of garlic chives, minced. If not accessible, white and green parts of

scallions can be used for substitute.

- 1/4 teaspoons white pepper

- 2 1/2 tablespoon soy sauce

- 2 tablespoon grated fresh ginger (No substitution with the dried stuff, please!

- 3 large cloves of garlic, minced or pressed through garlic press

- 3 egg whites, lightly beaten

- 1 package of kaew sa wrapping skins

- Vegetable oil and water for cooking

How to make?

1. To bring starch kaew sa mix to warm to finish thresh flour until to be sticky.

2. After that to cut starch fit and bring knead by log to give thin but doesn’t thin. It

made of mix all of ingredient to except oil and mix and to use spoon scoop

ingredient at prepare.

3. And remove on starch kaew sa by to use water touch tip of starch kaew sa.

4. Then haft roll to beautiful and prepare to fry by use fair about one minute or

until starch yellow after that add to oil put in pain ¼ cups and reduce fire.

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Kaew Sa Dipping Sauce

1. 1/4 cup soy sauce, 2 tablespoon rice vinegar, chili oil to taste (sesame oil and hot

sauce can be used as substitute), Dash of white pepper, Minced scallions – green

parts only

2. Combine all ingredients in bowl, sauce can be refrigerated overnight.

Nacket

Ingredients

- 3 cups Corn cereal

- 1/2 cup grated Parmesan cheese

- 1/2 tsp salt

- 1/2 tsp seasoned salt

- 1/4 tsp paprika

- 1/8 tsp garlic powder

- 3 tbsp margarine or butter, melted

- 1 tbsp milk

- 1 lb boneless, skinless chicken breasts, cut into 1x1-inch pieces

How to make?

1. It made of heat oven to 400. That line cookie sheet with aluminum foil. Crush

cereal. It involves Mix cereal, cheese, salt, seasoned salt, paprika and garlic

powder in medium bowl; set aside.

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2. Stir together margarine and milk. Dip chicken into margarine mixture; roll in

cereal mixture to coat evenly. Arrange on cookie sheet. Bake 9 minutes; turn

nuggets over.

3. Bake about 8 minutes longer or until coating is light golden brown and chicken is

no longer pink in center. Serve with sweet and sour or barbecue sauce, if desired.

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Documents

Project Feasibility Study 2010_B08-Milkery Shop