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Preface
This report is one part of Project Feasibility course and involve with Business Administration major in Mae Fah Luang University. This course has operate for teach the student use the knowledge in Business Administration for apply into our Mushroom Station business project. The factor that we decision to open our business in Chiang Rai, in Chiang Rai has weather and characteristic of soil have good related with mushroom. The business in Chiang Rai has super market, restaurant and population has increase, from this reason can show that the demand of people in Chiang Rai has increase and suppliers in Chiang Rai cannot support to all of demand. So, we want to open Mushroom Station in Chiang Rai. The other factor is AEC going to open as soon as in the future and Chiang Rai has good transportation to trade with neighbor country. Finally, our group hope to reader can get the knowledge from this report to apply in live and education. If this report has a fault we apologize to reader and our group thank you for attention. MISS MISS MISS MISS MISS MR. MR. MR. KUNLAYADA NATTHAPORN PANITA PORRAWISA PAWANRAT PANUPON SASAWAT ADISUAN REANKEAW JUNTIMA CHAIPARINYA PATTANA LAONAPAPORN RATTANARANGSAN GUNPAI KANHARATTANACHAI
Content
Preface................................................................................................................................ i Content .............................................................................................................................. ii Chapter 1 Introduction ..................................................................................................... 1 1.1 Background and Significance of the project ............................................................... 2 1.2 Project objectives ....................................................................................................... 5 1.3 Benefits of project ....................................................................................................... 5 1.4 Operations methods ................................................................................................... 6 1.5 Time frame of study .................................................................................................... 7 Chapter 2 Industry Profile................................................................................................. 8 2.1 Nature of Industry ....................................................................................................... 9 2.2. Situation of Industry ................................................................................................ 10 2.3 Product and Service .................................................................................................. 14 2.3.1 Product ................................................................................................................... 14 Chapter 3 Marketing Feasibility Study ........................................................................... 16 3.1 Marketing Analysis ................................................................................................... 17 3.1.1 General Environment Analysis ............................................................................. 17 3.1.2 Competition Analysis (3C Analysis) .................................................................... 21 3.2 STP Analysis ............................................................................................................. 25 3.2.1 Market Segmentation ............................................................................................ 25 3.2.2 Target Analysis ..................................................................................................... 26 3.2.3 Position Analysis .................................................................................................. 26 3.3 Marketing Mix Strategy ............................................................................................ 27 3.3.1 Product strategy .................................................................................................... 27 3.3.2 Price Strategy ........................................................................................................ 28 3.3.3 Place Strategy......................................................................................................... 28 3.3.4 Promotion Strategy ............................................................................................... 28 3.4 Sales Forecast/Profit Estimation .............................................................................. 28 3.5 Marketing Expenses (Sale Incentive) ....................................................................... 48 3.6 Conclusion in market feasibility ............................................................................... 56 Chapter 4 Investment Cost .............................................................................................. 57 4.1 Pre-operation Analysis .............................................................................................. 58 4.1.1 Pre Operating Cost ................................................................................................. 58 4.2 Investment Cost of Project ........................................................................................ 58 4.2.1 Land ....................................................................................................................... 58 4.2.2 Building.................................................................................................................. 58 4.2.3 Tools/Equipments .................................................................................................. 59 4.2.4 Infrastructure .......................................................................................................... 60 4.3 Location .................................................................................................................... 61 4.3.1 Facility Layout ....................................................................................................... 62 4.4 Machine and Equipments .......................................................................................... 67 Chapter 5 Production and Operation Analysis................................................................ 87 5.1 Production and Operation Analysis .......................................................................... 87 5.1.1 Product characteristics ........................................................................................... 87 5.1.2 Logistics Management ........................................................................................... 89 Chapter 6 Administration................................................................................................ 90 6.1 Management Analysis ............................................................................................... 91 6.1.1 Organization Management ..................................................................................... 91 6.1.2 Organization Chart ................................................................................................. 91
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6.2 Administration Cost .................................................................................................. 94 6.2.1 Employee salary ..................................................................................................... 94 6.2.2 Cost of electricity per month.................................................................................. 95 6.2.3 Cost of water per month......................................................................................... 96 6.2.4 Cost of internet per month ..................................................................................... 97 6.2.5 Cost of telephone per month .................................................................................. 98 6.2.6 Office expense ....................................................................................................... 99 6.3 Depreciation ............................................................................................................ 102 Chapter 7 Financial Analysis ........................................................................................ 112 7.1 Income Statement.................................................................................................... 113 7.2 Balance sheet .......................................................................................................... 118 7.3 Statement of Cash Flow .......................................................................................... 121 Chapter 8 Risk Management ......................................................................................... 126 8.1 Risk analysis ........................................................................................................... 127 8.1.1 External Forces .................................................................................................... 128 8.1.2 Internal Forces ..................................................................................................... 130 8.2 Conclusion of Risk management ............................................................................ 131 Reference ...................................................................................................................... 132
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Chapter 1 Introduction
The mushrooms that are popular to cultivation in Thailand are Straw Mushroom, Sajor-caju Mushroom, Abalone Mushroom, Champignon, Jews ear Mushroom, Shiitake Mushroom, Oyster Mushroom and Golden Mushroom. About the mushrooms that are popular to cultivation in Chiang Rai are Shiitake Mushroom and Straw Mushroom. Others are Abalone Mushroom, Eringii Mushroom, Oyster Mushroom, Sajor-caju Mushroom, Indian Oyster Mushroom, Golden Mushroom and Boletus. The interesting one about mushroom is the export mushroom in Thailand. Thailand is a very popular country about exports the mushroom to international trade by many patterns of the mushroom. There are fresh mushroom or frozen mushroom, canned mushroom, and dried mushroom. Japan and Singapore always import fresh mushroom or frozen mushroom, canned mushroom from Thailand. Also, Malaysia has to import canned mushroom only. And last, Australia, Germany, and USA always import dried mushroom from Thailand. Thai mushrooms with the next step of going to AEC by Mr. Sombat Pienjaroen gives the information about quantity and the value for export the mushrooms as below;
Table 1.1: The situation of Mushroom Market in ASEAN in 2007-2011 The Export of Fresh Mushroom Volume (Tun) Value (Million Baht) Rate of increase/decrease (%) 23.02 6.21
Resource; Thai mushrooms with the next step of going to AEC by Mr. Sombat Pienjaroen, Office of Agricultural Economics, 2012 The table 1.1 shows the situation of mushroom market in ASEAN in 2007-2011. From the table, it can be seen that mushroom is very popular in other countries. Both of volume (Ton) and value (Million Baht) are increased more and more. However, Department of Agricultural Extension state that 97 percent is consumption in Thailand and only 3 percent is for exporting. From this proportion, the entrepreneurs can grab this chance to expand the mushroom business in Thailand because only 3 percent from exporting is about hundred million baht. So the left over which is about 97 percent will be more than this.
Table 1.2: The production volume and value of each types of mushroom in Thailand (2001-2002) Types of Mushroom Straw mushroom Oyster mushroom Jews ear mushroom Shiitake Mushroom Champignon Others (Golden mushroom, ) Total Production Volume Ton (%) 84,000 (68.9) 15,000 (12.3) 14,000 (11.5) 3,000 (2.5) 900 (0.7) 5,000 (4.1) 121,900 Average Price (Baht/Kg.) 45 20 20 100 40 150 Value (Million Baht) 3,780 300 280 300 36 450 5,446
From the table above, it can be seen that there are a big production volume of mushroom, 121,900 Ton; also, the value is quite well as it can gain about 5,446 million baht. So, this can tell that it is a good chance if the entrepreneur wants to invest in this business because this table confirms that mushrooms can be produce and there also have the customers who will buy it for sure. About the trend demand of consumption in Chiang Rai, Chiang Rai has the big population as 14th of province of Thailand. It has the population around 1,198,656 peoples. So the trend of people will be increase continually and Chiang Rai has the area nearby two countries. There are Myanmar and Laos PDR. This information can tell the increasing of demand. Moreover, Chiang Rai has many ways of transportation; land, water, and air. Even Chiang Rai does not have the rail but it appropriate for transporting products to consumer and can distribute the product to customer easily. About the supporting in Chiang Rai, Chiang Rai has altogether public utility; for examples, transportation, electricity, water, and communication. It makes the business have more efficient and comfortable. Moreover, Chiang Rai is the province that appropriates for agricultural because Chiang Rai has more mineral in soil and has the good weather for agricultural. Also, the mushroom can grow up as well in this area. So it makes the cultivation of mushroom goes well. Especially Mushroom Station has more supplier to supply the spore all of year such as Huaipakang Mushrooms and Department of Agricultural Extension. All of this information can tell and prove that to do mushroom business in Chiang Rai is appropriate and suitable.
To study the financial feasibility of mushroom farm business as follows: - Farms investment cost, operation expense, and other expenses - Profit and loss statement, cash flow, and balance sheet in 5 years of mushroom farm To study and analysis risk of mushroom farm business in Chiang Rai To Summary the feasibility of mushroom farm business in Chiang Rai
Forth, India is a country in Asia which slowest awakening of develop the cultivation of mushroom because the people believe that the mushroom is the flower which come from dung. Then, the people are despising the mushroom and wanting academic who can cultivate the mushroom. However, Food and Agriculture Organization of the United Nations (FAO) campaign for agriculturalist to cultivate the mushroom. The most cultivating mushrooms are Oyster Mushroom and Pink Oyster Mushroom. The last country is Thailand by compare with the country in Asia. It is the most cultivating country and be inferior to Japan only.
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Table 2.1: The price of agriculturalist sells by mushroom kind since 2007-2011
Price
2007 (Baht/Kg)
2011 (Baht/Kg)
Sajor-caju mushroom Oyster Mushroom Abalone mushroom Straw Mushroom Jews ear mushroom Shiitake Mushroom
29.25
28.32
0.93
103.00
137.0
33.01
32.10
65.69
104.64
44.56
60.55
36.75
29.57
29.18
-1.32
131.00
156.00
19.08
Resource; Institute of research and cultivate Shiitake mushroom of Thailand, 2012 Form above table, rate of economic growth and market in 2007-2011 have high rate as Oyster Mushroom, Abalone Mushroom, Straw Mushroom, and Shiitake Mushroom.Those kind of mushroom have economic growth rate increase the same as the own one. However, some kind of mushroom may have low price and low value of market. The entire increase and decrease rate is up to popular, and trend of mushroom in each year. Overall, rate of mushrooms price and the popularity of consuming mushroom are growing more and more. Also, trend is always more and more. The entrepreneur gains more price of each mushrooms kind. Then, this business is interesting to create opportunity of new entrepreneur who seek for profit.
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Figure 2.1: Proportion of population aged 6 years and above and food consumption behavior by food group consumed per week, 2005 and 2009
From the graph, it told that people are eating Fresh vegetables and fruit more as almost equal to Meat and meat products. Even Snack still be popular but people are consuming lesser in Carbonated & sweetened drink, Fast food, Dietary supplements. So, this can told that people are concerning more about Health. Moreover, it represented the healthy behavior of Thai people. At the present, Thai people concern more about their health in many ways. So, this can be the chance of business to operate the consuming product especially, the mushroom business or the cultivating of mushroom. That is because mushrooms are vegetables which have a lot of nutrition to health. Also, there are the researches that proved in the advantages of mushrooms. From these things, it can be seen that there are high opportunity of being success in doing the mushroom farm. Especially the old entrepreneurs do not have power to produce enough for the requirement. So, this is the good chance for the person who interest in this business. Cultivation of mushroom is more famous because this business can gain revenue from exporting the mushroom and the people popularity to consumption. Then, the people interested to cultivate mushroom more. Moreover, nowadays it has many kind of mushroom which popularity in north of Thailand such as Oryngii and Champignon. That kind of mushroom did not popular in pervious time because it cannot cultivate in Thailand. Nevertheless, at present time Thailand can cultivate those mushrooms. Therefore, the agriculturalist becomes interesting and popular. This business is growing and can compare by competitors; there are Sutheps mushroom Farm, Chai-Sams mushroom Farm, Pattaya Farm, Wannas mushroom Farm, Pra-Na-Korn-Sri-A-Yut-Ta-Ya Farm, Ban rukhed farm, Kanoksit mushroom farm, Lung
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Beum mushroom farm, Kaomark mushroom farm, Kajonwit mushroom farm, Dung Dao farm, Pijit mushroom farm, Phothong mushroom farm, Nong Nuch mushroom farm, Suppachai mushroom farm, Lanna mushroom farm, Weradech mushroom farm, Wassana mushroom farm, Ko Kim mushroom farm, Siam mushroom Farm, Chiang Mai Farm. About Chiang Rai, the geographic is almost plateaus and mountains, also has the great weather for cultivating mushrooms. Summer season starts from February to the middle of May. Rainy season starts from the middle of May to the middle of October. The most rainy month is August and the winter season is from the middle of October to the middle of February. The land of Chiang Rai was separated into two zones. However, the weathers in Chiang Rai and both of two land zones are suitable for doing agricultures.
2011 1,198,656
2010 1,198,218
2009 1,194,933
Reference; Department Of Provincial Administration As from the table, the population in Chiang Rai is increasing more and more Because of the increasing population in Chiang Rai, So the consumption will be increase as well. From all of these, it means that Mushroom Business can work well and can response to the consumption of people in Chiang Rai. About mushroom farms in Chiang Rai, it has a few entrepreneurs who did a big farm. The main of mushroom farms are 10 farms that are Group of farmer who cultivate mushroom Teaung, Group of farmer who cultivate mushroom Phan, Pha Kuk mushroom school, Mushroom knowledge center, Kannika mushroom farm, mushroom OTOP, Thanomsin mushroom farm, Supatchaya mushroom farm, Rattana mushroom farm and Weerapong mushroom farm.
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Straw Mushroom
Figure 2.3: Straw Mushroom
Reference: thaikasetsart.com/kaset7.jpeg
Reference: thaikasetsart.com/kaset5.jpeg
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Yanagimatsutake
Figure 2.4: Yanagimatsutake
Reference: tuptimfarm.com/product_05.png
Dried Indian Oyster Mushroom Figure 2.5: Dried Indian Oyster Mushroom
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The target group that government will support; The support plan of SMEs in 3rd issue will choose the target group who will get the support from seeing if they are the business branch that be useful and have income to the country; also, using the raw materials in the country. Moreover, it should be the new wave business, the business that response the government policy, or be the business that concern on environment and build the equilibrium in social. Also, it should be the business that conserve on the Thailand culture. Therefore, the kinds of business which the government uses the supports plan in 3rd issues; there are Industrial Technology and Innovation Agro-Industry and agriculture process engineering Creative Industries Service and travel business Retail and wholesale business
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Strategy to promote The government supports plan in 3rdissuehas four strategies to manage; there are 1st strategy 2nd strategy 3rd strategy 4th strategy support the environment that accommodate to manage the SMEs establish the limit of competitive for SMEs support SMEs to have balance growth with the area support ability of SMEs to link with the international economic
In addition, it does not only this policy with support the mushroom business but it also including with the agriculture policy. The government always supports agriculture; such as fund and guarantee the price for agricultural product. It helps Thai people have income and not neglect agriculture.
Economic Factor To analysis the economics of Thailand in 2012 from Oknation, they said: Economic has risk from many ways; there are political issues and other conflict in the country. Also, it has impact from flood crisis at last year. Thailand has restored very fast from the flood crisis but economic does not growth as quickly. In 2015, Thailand will participate with ASEAN Economic Community or AEC. Then, Thailand can expansion economy of Thailand and the people will spend more money in everyday life. In addition, the government has a lot of expend for motivate economic. It gives benefit to SMEs in Thailand, too. The government enacts and shares the idea to reduce governments debt by the law. That law supports the government to spend a lot of money for repair the situation. Nevertheless, many manufacturing base was damage by flood crisis and the trend of economic has slowly growth because some policy; for example, adjustment of labor cost to 300 Baht when Thailand has inflation. It can impact to the investment and consumption of the people. However, it is the opportunity for Mushroom Station to be successful. The government has the support plan for the private sector to operating their business. The bank has financial position as well then they are increase to accrete loaning and do not increase interest rates follow by the law. In the first half of the year, the reliability of consumer always progress more and more after flood crisis. The government supports the money to many projects but it also has the factors which intercept the economy of Thailand such as the inflation rate, shortage of supply, governments expense, and energy price. The interest rate will increase as 0.5-1% because the inflation rate will increase and the governments expense that spends a lot of money.
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At the last half of the year, it seems to have other risk from the world economic and Euro zone could collapse. The problem about repay debt will occur when they are canceling to repay debt by Euro currency. Then, the world economic will decelerate especially the country which important to export goods to the world such as China, South Korea, and Japan. Fluctuation of world economic makes the world investment system change. The cash flow in Thailand will have many expenses to repair the house after the flood crisis. It will effect to investment and consumption of people. The government will have the problem about the shortage of funding. Then, the interest rate will increase and it will effect to some policy which government plans to support the economic such as adjustment of labor cost to 300 Baht. The compression of world economy, inflation rate, and interest rate will give the negative result which cannot expect to the economy system. In conclusion, Mushroom Station has the opportunity to operate and it will be successful because it has many factors to support this business. Even it always has risk and negative factor.
Social and environment factor Nowadays, Thailand social is very varies as there are many nationality. However, Mushroom Station will talk about the popular of consuming food for being healthy. It is starting to increase more and more. With the conformed environment, it makes humans want to consume healthy food more as well. If we look about the growing of cultivating mushroom since 2006 until 2013, it can be see that the growing rate will grow about 200.50% (Greennews, 2010). The trend of Thailand social has more awake about the image or appearance, it make people want to have more good looking as to get the acceptance from the society. So, they want the products that can help them always has the good looking. Especially, there has no time to eat all of the nutrition; also, has less time to exercise. So, to eat healthy food has more important as same as the world trend. The main customers in Thai market are almost working woman, age between 25-40 years old. However, the trend of expanding the target customers is being interested as well (Greennews, 2010). This becomes the supporting information that the growing of expand consuming healthy food in Thailand is starting to expanding. This is a good chance for the business about consuming, like Mushroom Station, to get the successful in a short run. With the positive factors that support the popular; especially mushroom which has both advantages in medicine and treatment and the group of customer who concern on being healthy can buy Mushroom Station products, too. Moreover, there are many governments and private sectors campaign follow the topic Eating Vegetable for Health. This can support the popularity in the people who have age between 25-40 years old (Greennews, 2010). This group of people can say as they are the working people and the people who are starting to think or concerning on their health.
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To sum up, social and environment in these days give more facilitating to the mushroom business as the information above.
Technological factor Technology is important for operating the business. It helps to produce the product as accurate, quickly, and efficiency. The agriculturalist uses technology to cultivate the mushroom such as autoclave pressure (use to steam the food for cultivate spores of mushroom), mixing sawdust machine (use to mix material for cultivate the mushroom), and autoclave for spores of mushroom (use to eliminate the microorganism in spores of mushroom). The entire technology help the productivity part as quickly and accurate for cultivate mushroom. However, Thailand has many kind of machine that support agriculture. Especially mushroom farm need to use technology to cultivation and develop ability of production. Also, it has other equipment which helpful with cultivation mushrooms; for example autoclave, Cabinet which uses to pollinate mushroom, needle, laboratory alcohol lamp, scalpel, gas stove, flat bottle, cotton, and paper. All of those uses for increase productivity and reduces cost. Then, it will make business successful and gain more profit.
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3.1.2 Competition Analysis (3C Analysis) Competitor Analysis There are two farms that cultivate Indian Oyster mushroom also the other types of mushroom that are the same type of mushroom of Mushroom Station. They are Kannika Farm or San Samai Farm and Kanok-Orn Farm. Therefore, Mushroom Station has the competitor who has ability for competition in the market. These two farms have the good production capacity as many thousands kilogram per day. However, the need of Indian Oyster mushroom and also others consumption in Chiang Rai gives more opportunity for Mushroom Station to entry into the mushroom market. So, it can gain the opportunity to success in market in the short-run. That is because Mushroom Station has the different in quality and safety for building brand in the market. So, Mushroom Market can competitive about the segment market as well.
Major Competitors in Chiang Rai About the major competitors in Chiang Rai, there are two farms which are Kannika Farm or San Samai Farm and Kanok-Orn Farm. The first one, Kannika Farm, it is located at 71 Banhoukomnai M.1, T.Mae Yao, A. Muang, Chiang Rai. This farm sells Yanagimatsutake, Abalone mushroom, Indian Oyster Mushroom, Oyster Mushroom, Shiitake Mushroom, Fossil Mushroom. Especially, this farm also sells the spores of mushroom for cultivating. Moreover they have the event that teaches the way about how to make the spore of mushroom and cultivating. About the price of their mushroom, it will depend on the market.
Reference; http://sphotos-b.ak.fbcdn.net/hphotos-akash4/898_399266876826368_1342724936_n.jpg
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The second one is Kanok-Orn Farm. It is located at A. Phan. This farm sells many types of mushrooms; such as Sajor-Caju Mushroom, Indian Oyster Mushroom, Straw Mushroom, Golden Mushroom, Shiitake Mushroom, etc. and also the spore of mushrooms as well. About the price of their mushroom, it will depend on the market, too.
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Customer Analysis Chiang Rai is the province that located at the uppermost of Thailand, biggest as 12nd in Thailand. Mae Jan, Chiang Rai is the economic place that follow the developing plan South Chinese frontier Indochina. So it is the center of trading business and transportation. The traffic is good and deftness. So, the customers are comfortable to travel. This is chance to invest and expand the business, because in 2015 Thailand will open for ASEAN Economics Community (AEC). That is make Mushroom Station get more chance to extend the products to neighbor countries; such as, to export dehydrate mushroom to China. This is another way to get more income.
This is the borders of ChiangRai; North Myanmar South Phayao province East Lao West Myan Mar and Chiang Mai province
Competitive Analysis The agriculture is the important foundation of Thai people at the previous time until the present time. In Thailand, the popular business is the business which relate with food, and the exhaustible goods. The mushroom business is also relates with the food business. It begins to Thailand by Professor Kan Chonwijarn in Bangkok, 1937(Agriculture high school book subject cultivation of mushroom, 2011). Later, the cultivation of mushroom becomes extensive to all over Thailand including Chiang Rai. There are the mushroom agriculturists in every parts of Thailand. Almost they are the merchants who sell fresh mushrooms by retail and wholesale. Another one will be the people who cultivate the mushrooms for sell, also sell the equipment for cultivation. The less one is the merchants who sell mushrooms with transformed mushrooms. The transform of mushrooms include dehydration and flavored mushrooms. Some of agriculturists sell transformed mushroom as an export product to increase their sale. In the North part of Thailand, almost of mushroom entrepreneurs sell fresh mushrooms, including spores of mushroom and the equipment for cultivating mushrooms. Some places also teach and train about the cultivation and the way how to make the spores of mushroom. The agriculturists cultivate mushroom both for retailers and wholesalers. It has fresh mushroom and the equipment for the cultivating of mushroom as well. About the nearly places around Mushroom Station, Amphur Mae Jun, almost of them are the agriculturists who cultivate fresh mushroom. Some of them produce the fermented mushroom, including delivery service.
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However, those mushroom farms will use the entire mushroom nursery for once cultivating. Then, when the harvest time comes, they can collect all of the mushrooms for a lot. However, when they collect all, they will cultivate the mushroom again and that need the time to grow. This is different from Mushroom Station. Mushroom Station will use the different of cultivate mushroom. It will cultivate mushroom as can harvest in every months in all over the year. In addition, Mushroom Station will use the technology and other things like supplementary food as to compete with other competitors. For Straw Mushroom, Mushroom Station will use the supplementary food as to help the straw mushroom to have more fiber, have a good growth. Also, the mushroom will growth more than the one that do not receive the supplementary food as double. The supplementary foods which good to use are dusts of rice, animal fertilizers, kapok, cotton, dried water hyacinth, the little weed that is soft and can keep water well. About Yanagimatsutake, as the result by using EM microorganism to increases the Yanagimatsutake in rice straw. Nowadays, Yanagimatsutake or Yanagi is the type of mushroom which the market need as high volume. It has the best grown in timber decay and the people develop to cultivate in the plastic bag. The material which uses to cultivate the mushroom in the plastic bag is rubber sawdust. It has high cost, then the college of agriculture and technology in Chiang Rai use other material such as straw which ferment in the EM microorganism. The straw is easier to find in Thailand. So, the agriculturalist uses straw as the main material to cultivate the Yanagimatsutake. The mushroom will have the good taste, crispy and delicious. Mushroom Station will stimulate the growth of fungus by using hormone for Indian Oyster Mushroom. To make the hormone, it consists of evaporated milk (Falcons Brand), sugar, and water. About the method, first is to mix milk and sugar together, add water. Then, put this into foggy. Spray this to the rim of mushrooms plastic bag. Normally, it should be 1 time per 20 days or it can use to spray when the production seems to be decrease like small fungus, thin fungus. It can be use with the Enzyme Ionic Plasma, so it can help the fungus to be bigger and can expand the life of harvesting mushroom. About the way to make the Enzyme Ionic Plasma for ferment the fungus, it needs to use water, EM, molasses. Then mix these three ingredients together for fifteen days. Stirring it every day, close the lid tightly, and then add water 5 liters every day until 200 liters. Also, take the piece of fungus to ferment in the EM bucket. About the way to use EM, use EM 10 liters mix with 10 liters (or depend on the suitability), foggy 1 time per two or three days at the rim of mushrooms plastic bag, not foggy too close because it can grow the other bacteria. About the Material and equipment, fungus and pieces of mushroom 3 kilogram, Molasses 1 liter, EM 1 liter, Catalyst PD.1. 1 pack (get free at Land Development Department), clean water 20 liter, Plastic tank to ferment which has close lip 1 tank, Enzyme Ionic Plasma for the fungus. Use all material ferment in the tank as 15 days then it can use for inject the mushroom. About the method: Use all material ferment in the tank as 15 days and stir every morning and evening. Then it can inject the mushroom for nurture the mushroom. The mushroom will grow as fast, big size, more weigh, and more products.
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Market Segmentation of Mushroom Station (The Population of each Amphoe in Chaing Rai)
19%
A. Muang
8%
66%
7%
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From the graph, it can be seen that only three Amphoe; A.Muang, A.Mae Jun and A. Mae Sai, the total population will be about 34%. This is not including the population, people from the neighbor country who come and buy in each day at A. Mae Sai. 3.2.2 Target Analysis About the target market, agriculture business has the role to take the agriculture product as to improve to be the other products. Mushroom Station chooses to cultivate the mushroom which does not need to be transformed. Mushroom Station will send the product directly to the wholesaler as to help for reducing cost and the risk of distribute by itself. Also, it can be easily build the trading relationship because the mushroom product always has the same quality of products send to the partners. This will be easy for distributing the farm product and has the exactly number of production. Then it make it be easy for the calculating, not produce more than need. About dried Indian Oyster Mushroom, Mushroom Station will emphasize at Mae Sais Market in the big shops that sells dried product, snack and the souvenirs; also, has high ability of distribute the products. That is because these merchants do not have the shop at Thailand only but also in Myanmar that send the product to sell as well as to build for more trading opportunity.
3.3.3 Position Analysis The position of mushroom business is to send the mushroom products to the wholesalers that are well-known. Also, those wholesalers must have the world wide connection with the customers or maybe they can contact to the farm for buying the products, too. For examples, Supatchaya store at Num Sawats market, A. Muang. Supatchaya is the big store that always sends the products to the department stores like Lotus, Big C, Macro in Chaing Rai and others stores as well. So, it can be sure that Supatchaya has willingness to buy as comparing to their ability of buying Golden Mushroom, 8 Tuns per week and also can sell all in every week. These number shows that Supatchaya has the power to buy and distribute the products. Moreover from this store, there still have the other stores that want a lot of mushrooms in each day. That is because nowadays these stores buy mushroom about 100 500 kilograms; also, these can sell all. These can tell that the demand in the market still at high. So, even Mushroom Station is new but it can supply to these stores in the amount that they can sell all.
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Product Strategy Mushroom Station has the products which can satisfy the wholesalers and it can produce as the whole year. Also, the product of Mushroom Station concerns with fresh, clean, and safety. In addition, it has the high technology as to make more quality of mushrooms as well. So, the mushroom of Mushroom Station has the image different from other mushroom farms in Chiang Rai. Moreover, Mushroom Station can deliver the products that are the fresh, clean, and safety mushroom to wholesalers which can help to give the comfortable to the wholesalers as well.
Product Indian Oyster Mushroom Straw Mushroom Yanagimatsutake Dried Indian Oyster Mushroom
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3.3.2 Price Strategy Mushroom Station does not have price strategy because the price of mushroom will be depends on the market. However, the farm will use the promotion as to promote the product to get more customers (wholesalers) more than the competitors.
3.3.3 Place Strategy Mushroom Station is located at Amphur Mae Jan, Chiang Rai. This is the good point one as it is located near Mae Juns market which is one of the wholesaler that Mushroom Station can easily send the products to. This can help to reduce the transportation cost. Moreover, this is the good place to produce these types of mushroom, which is Indian Oyster Mushroom, Straw Mushroom, and Yanagimatsutake because of the good weather.
3.3.4 Promotion Strategy We use mix strategy by use push strategy as promoting a product to members of the sales force and retailers rather than to eventual consumers and also use pull strategy when everyone know the product as a marketing program designed to generate consumer demand for a product. A successful program will cause consumers to pull the product through the distribution chain. Pull strategies include manufacturers issuing free or cents-off coupons, placing advertisements on radio or television, or offering free samples at selected locations. (The American Heritage Dictionary of Business Terms Copyright, 2010) About the other one, Mushroom Station will give discount 5% to the wholesalers who become the customer because at this rate Mushroom Station will not lose profit and also can attract more wholesalers to interest in the company.
as it is growing all the time. Moreover, when the growth of Moo-Ka-Ta is rising in that location, it means that mushroom which is the raw materials will rise up as well. So, Mushroom Station will produce more as see from the current situation, 40%. About 10%, it will deduct out as to be careful if the supply exceed over the demand. In conclusion, the first year sale forecast will be as below; Table 3.1: The demand of the Mushroom Market
Think about 40% from demand that Mushroom Station will produce for the first year; Table 3.2: The total production of Mushroom Station for the first year, 2012
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About the types of mushroom that Mushroom Station will cultivate are Straw mushroom, Indian Oyster Mushroom, and Yanagimatsutake. Straw Mushroom is the most cultivation because it has more investment opportunity. Straw Mushroom has low cost then it has high demand and can cultivate as the whole year. Also, it can be harvest in every day. Indian Oyster Mushroom can also harvest every day, too but will have less cultivation because of the low price. Yanagimatsutake has the high price per kilogram more than other mushroom. However, it can be harvest only one time per month. So, it will be the less cultivation.
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31
32
33
34
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To explain the table of mushroom cultivation and mushroom collection In the table, the farm represents the mushroom cultivation and mushroom collection as the color. The mushroom will cultivate different period because it is not the same type. The period to cultivation the mushroom will show in the 1st month. So, next month will be the same as 1st month. In conclusion, Mushroom Station can cultivate the mushroom all of the year even the weather is not the same. That is because it will use the technology to control the temperature and the moisture in the mushroom nursery.
Year 2012 The farm will cultivate the first generation of mushroom as 1st year on January. The product will depend on the period of mushroom growth. Indian Oyster Mushroom - To cultivate at the first time, it uses 18 days to grown. After, the farm will harvest the mushroom in everyday over all 6 months. Yanagimatsutake It uses 30 days or 1 month to grown. After, the farm will harvest and cultivate again. Indian Oyster Mushroom and Yanagimatsutake have high demand in the market and it can cultivate as whole year. The farm will gradually to cultivate the mushroom every day. Therefore, the mushrooms will not growth at the same time but it grown nearly with each mushroom nursery. So, the mushroom will not surplus in the market. Straw Mushroom It use 7 days to cultivate. Then, the farm will harvest and cultivate again. It can cultivate as all seasons.
Year 2013 2016 The table will similar to 1st year but it has slightly different. There are.... 1. The period to harvest the mushroom must depend on the mushroom growth as 1st year table. In the 1st year, the farm cultivates the Indian Oyster Mushroom on January. However, in the 2nd year table the farm will cultivate as July. So, the farm will cultivate new spore every 6 months. Even it can harvest over all 8 month but the farm will harvest only 6 months for a good quality of mushroom.
2. Indian Oyster Mushroom and Yanagimatsutake can cultivate as whole year. Also, the
farm will gradually to cultivate the mushroom every day. Then, it grown nearly with each mushroom nursery. So, the mushroom will not surplus in the market.
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Mushroom Station assumes the business grown rate in the next year is about 10 percent because the farm will invest in the first year as 40 percent for reducing the risk. The demand will increase 50 percent compare from the Moo-Ka-Ta restaurant that increase as double number of one year. So, the first year will decrease to 10 percent because the production may surplus in the market. And the population in Chiang Rai has increase in every year then the people will consume the mushroom more. The demand will increase and the supplier will increase too. Therefore, the farm makes a decision to increase the capacity for respond to the demand.
100,998,000
113,460,000
125,805,000
139,651,200
153,090,000
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Objectives 1. To repay for the social 2. Promote the product of Mushroom Station Figure 3.12: Chiang Rai Flower Festival
Reference: siamburitraveltour.blogspot.com/flo1_001.jpeg
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Chiang Rai Flower Festival 2012 will have located at Suan Mai Ngam Rim Nam Kok. It is close to Chiang Rai Airport. This festival helps to promote the tourism, gain more revenue for Chiang Rai people, and support Chiang Rai to develop the place which can plant the winter flower as good quality. They use Lily and Tulip flower to attract the tourist. Also, it including with floral float contest, exposition of crafts, and exposition of Lanna culture. At the event have many local products of Chiang Rai that conduce to exhibit; for example tea, coffee, and other agricultural product. Figure 3.14: Kaset Fair
Reference:mykorat.com/1199894766.jpeg
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Objectives Use to promote the Mushroom Station to the people and wholesalers. Also, it helps to build the relation between government and private sector. This way can gain income from selling fresh mushroom and dried mushrooms.
Organizations contact: - Chiang Rai Administration Organization and located at 183 M.8, WiengDistrict, Muang, Chiang Rai 57100. Telephone no. +66-5-371-1499
Cost for create booth in Chiang Rai Flowers Festival 2013 Expense for rent a car Mushroom station use billboard which has size about 24 meter at Chop Pim Company (800 Baht) Rent the area to set the booth at Chiang Rai Flowers Festival (6,500 Baht)
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4.2.2 Building (2 Unit) - Unit 1 (Office) - Unit 2 (Agricultural Office) Cost of architecture Table 4.5: Cost of architecture
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4.2.3 Tools/Equipments Cost of door and window Table 4.2: Cost of door and window
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3 Location Cost of water system and waste system Cost of electricity in the building Cost of painting 33,000 100,000 65,000
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4.3 Location
Location of Mushroom Station was located at Tambon Patung, Amphoe Mueang, and Chiang Rai. Turn left on the square which leads to Fang and then it will see that Mushroom Station is located on left hand side. Figure 4.4: Map for location of Mushroom Station
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Figure 4.5: View of the Mushroom Stations place 4.3.1 Facility Layout
Fence Cowboy Fence is the fence which has high quality and appropriate for resort and farm. Have 120 cm. heights from the ground Pillar 6" x 6" x 170cm. weight 65 kg. Crossbeam 5"x2.5"x250 cm. weight 46 kg. The fence price is 450 per meter
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Reference: dconproduct.com/04.jpeg Car park Modern steel roofing galvanized Heron model, designed to accommodate the parking of vehicles such as cars, motorcycles and scooters. The feature attributed to Heron of modularity allows extending the ability of vehicles to accommodate a virtually unlimited. In the simplicity of the design incorporates the unique strength and weather resistance. Figure 4.7: Example car parking of Mushroom Station
Reference:
news.archiexpo.com/coverage-of-galvanized-steel-for-car-parking-model-heron-P166588.jpeg
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Mushroom nursery
The standard size of mushroom nursery, length 8*4 meters as the figure 4.9 and 4.10. The mushroom nurseries build from the bamboo structure. The roof made from the nypa which can endure the heat and moistness. That is because the mushroom can grow easily with the moistness weather. About the following picture, figure xx, it is the inside structure of mushroom nursery, contain 5,000 spores of mushroom. Divide it into two rows and has the aqua auto pot as to preserve the moistness. Figure 4.9: Example of mushroom Nursery Figure 4.10: Example of inside mushroom
Nursery
Office Building
The office building is width of 5 meters and length of 10 meters by white polish concrete. It will have curved staircase at the side of the building to mezzanine or roof deck. Inside the building cover the floor by white tiles and cover the wall by white wallpaper. So, inside the building will separate as 4 parts; there are parlor room and room for public relation, office, kitchen, and toilet. The parlor room and room for public relation will have long sofa at left side, and one more set of sofa for reception the customer with LED television. Next, office will have 5 office desks. And the kitchen will have microwave, kettle, refrigerator, and the central table. Last part is the toilet. It will cover the floor by gray tiles and have bathroom which decorate by the tree and grit.
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Agriculture Building
The agriculture building has 5*10 meters, builds with white polish concrete and inside is the polish concrete. It separates into three parts, the first part is like lobby for separating mushroom or keeping the mushroom as it is the way to let it pretreatment themselves and to grow again by stop watering the mushroom. It is also be the place where the employees can take a rest or planning together. About the second part, it is the mushroom warehouse. It paves with green tiles and has the refrigerator for storing the mushrooms. The last part is the restroom which locates at the back of the building. It has two restrooms.
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Reference: sorsumphan.com/cutter_silver1_copy.jpeg
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Reference: office-supply-online.blogspot.com/
HD-10NX.jpeg
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- Calculator (Canon P1-DTS V LCD) Memory 1MB Speed: 1.4 lines / sec. Calculate VAT, cost Battery AA X 4 Ink Roller CP 16 Price: 1,050 Baht
Reference: calculatorthailand.com/BIG_P1DTS-V.jpeg
- Calculator (Casio MX-120S) LCD Battery Two- Way Power Wide, 10.3 cm long x 14.5 cm high x 3.07 cm Price: 290 Baht
Reference: calculatorthailand.com/BIG_MX120S.jpeg
- Document file (Horse brand) Size: 28.9x35 cm. Price: 255 baht
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- Idea green copy paper Size: 210x297 mm. (A4) Copying 80 gram Price: 520 baht per box
- Telephone (LG Brand) Size: 140 x 200 x 50 mm. Weighs 480 g. Function to work: Ringing Volume Control , Tone/Pulse Adjustment Redial, Mute
Certification: ISO 9001:2000 ISO 14001 :2004 RoHS Compliant TOT Type Approved Price: 456 Baht
Reference: ploywarin1999.com/NO-20014.jpeg
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- CCTV (HIK Vision Brand) Camera General Detail Image Sensor: 1/4'' COMS Signal System: PAL/NTSC Effective Pixels: 640(H)x480(V) Min. Illumination: 0.1 Lux @ (F1.2, AGC ON) Reference: cctvthai.com/DS_2CC132P_N Shutter Time: 1/25(1/30) s __506d12536cd7a.jpeg to 1/15,000 s Lens Mount: C/CS Mount Day& Night: Electronic Horizontal Resolution: 480TVL Synchronization: Internal Synchronization Video Output: 1Vp-p Composite Output (75/BNC) S/N Ratio: More than 48dB BLC: On Operating Conditions: -10 C - 60 C (14 F - 140 F) Humidity 90% or less (non-condensing) Power Supply: 12 V DC10% Power Consumption: Max. 2 W
- Computer (HP) Compaq Presario CQ3070L (KY779AAAKL) Features CPU Intel Pentium Dual-Core; Tower 2.7 GHz; 18.5 inch LCD with Integrated speakers Hard disk 320 GB (7200rpm Memory 2048 MB - 4096 MB Graphics card. ATI Radeon HD 4350 Operating system DOS Guarantee 1 year. Weight n/a, Size n/a Price: 12,890 Baht Reference: priceza.com/63-20100303013004993430.jpeg
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- Printer (Brother MFC-5890CN) 6-in-1 : Print/Fax/Copy/Scan/Direct Print/PC Fax with Network Price: 1,530 Baht
Reference: priceza.com/970.jpeg
- TV LED (Samsung Brand) LED TV LG 3D Model No.42LM7600 Special price: 29,890 Screen: Full HD 1920x1080 Technology Hyper Real Engine: It helps to develop the quality, distinct for the best scene. Reference: akibkk.com/p_619091.jpeg Technology 100 Hz Clear Motion Rate: It makes the motion picture move as ongoing and euphemistic. Wide Color Enhancer Plus: It makes the scene beautiful and realistically as nature. Digital Noise Filer: It can reduce noise to make the scene always clearly. Send the signal as DTS 2.0 by Optical connector: It can connect with other external stereo for respond customers need as best sound system. Support sound system as Dolby Digital Plus/Dolby Pulse: It makes the sound boom as realistically. Loudspeaker sound system as 20 Watt (RMS ) (10W+10W) Price: 29,990 Baht
- Cooler (Standard Brand) Size: 31 x 29 x 95 cm. Net water: 3 Liter Electronic power: 220 v / 50 Hz. Price: 2,800 Baht Reference: taradplaza.com/spd_ 74 20061107162427.jpeg
- Kettle (Panasonic Brand) Capacity: 2.2 l. Electronic flush Insurance: 3 years Price: 16,990 Baht
- Microwave R-219 (Sharp Brand) Capacity: 22 l. Jog Dial (Analogue) Price: 1,800 Baht
- Refrigerator GR-B143Z (Toshiba Brand) Power: 70 W. / 220 V.50 Hz. Freezer inside Save energy Capacity: 4.9 queue Price: 4900 Baht
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Reference: yopi.co.th/1985979.jpeg
- Fan (Ceiling fans: CLASSIC-WH/NL) White pearl Blade size 52" Blades are made of wood Guarantee 10 year Price: 1,500 Baht
Reference: houseandhome.co.th/1007060000240.jpeg
- Air conditioner (Mitsubishi Brand) Nano Platinum Filter: It has plate that use to filter the air. It has Platinum as Nano size. Then, it helps inhibit bacteria growth, fungi, and bad smell. Air Cleanning Filter: It has plate that use to filter the air by electricity for trap dust and fungi. EconoCool: It helps to save the energy as 20%. Reference: mall.tarad.com/spd_20120213 Powerful Cool: It helps air condition make the 160224_b.jpeg cool weather more quickly. Fuzzy Logic "I FEEL" Control: It is the system which control by feeling. Auto Restart: It is the system which can open automatic when the electricity failure. 12 Hour ON/OFF Timer: It can set the time to open and close in 12 hours before. The air condition has insurance of compressor as 5 years, Nano Platinum Filter as 3 years, and spares inside air condition as 1 years. Price: 16,590 Baht
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- Cabinet (3-tier cabinet doors open) Particleboard made from wood board Grade A. Top thickness 25 mm. The Beach. Dimension (W x D x H): 60 40 x 120 cm / dryer. Price: 3,990 Baht
- Fridge SEC-1500SBD (SANDEN INTERCOOL Brand) Capacity: 51 queue (1465 l.) Power: 220-240 V, 50 Hz. (3.39 A.) Outside: 180 x 71.5 x 205 cm. Inside: 172 x 55.6 x 153.2 cm. Temperature: +2 to +7 c ( No frost) Color: White Insurance: 1 year Net weight: 245 kg. Price: 35,000 Baht
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Reference: ms-rent.com/watermark.jpeg - Office Desk (Expedia Brand) Width: 115 cm. Depth: 78 cm. Height: 76 cm. Price: 2,300 Baht
Reference: ikea.com/xekspheiydith-toa-thangan-khaw__0134115_PE28 9991_S4.jpeg - Office Desk (Viga Brand) Length: 100 cm. Width: 60 cm. Height: 74 cm. Maximum weight: 50 kg. Price: 1130 Baht
- Dining Table Color: Black & White Size: 80x140x75 cm. Price: 14,500 Baht
Reference: trisinfurniture.com/-
.jpeg
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- PVC Door (Elephant Brand as know SCG Company) Size: 70 x 180 cm. Price: 1,690 Baht
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- Pickup (Toyota Vigo Standard cab models STD 2.7J CNG M / T 5) Price: 622,000 Baht
Reference: thaicartrick.com/227.jpeg
- Camp light Model (B) Base width 24 cm, height 50 cm. Lamp head width 15.5 cm. Price: 848 Baht
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- Knitted gloves
Price 6 Baht
Reference: phikanes2515.blogspot.com/
.jpeg
- Bamboo Basket
Price 60 Baht
Reference: priceza.com/DSC01223.jpeg - Spore of mushroom Price Straw Mushroom Indian Oyster Yanagimatsutake 10 Baht 8 Baht 8 Baht
- Head of Hoe Number 1 Price: 300 baht Number 2 Price: 320 baht Number 3 Price: 300 baht
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Reference: kasetporpeang.com/ IMG0015020120926-1714_zps4d64f566.jpeg - Hoe Handle 1.2 meter 2kg Price: 160 Baht Handle 1.2 meter 1.6kg Price: 150 Baht Handle 0.75meter 1kg Price: 115 Baht
Reference: kasetporpeang.com/a4a05faa.jpeg
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- Harrow Price 90 Baht
Reference: sawangha.com/THER17.jpeg
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Reference: www.thaisecondhand.com/
10045999_1.jpeg
- Industrial fans: PANASONIC FV-40KUT Price: 4,775 Baht Ventilation fan: PANASONIC FV-40KUT Size: 16 inch OIDE Propeller size: 14 inch Use in industry durable motor for use as consecutive Long life Easy to install Save for electricity Safe from the chemical
- Machine to make the steam or heat Price: 8,200 Baht Have the efficiency to make the heat for disinfect the bacteria
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1.2 . Yanagimatsutake Price: 180 Baht/kg. (Average price of Talad-Thai) Description: Yanagimatsutake has light brown until orange brown color. It also has the stipe of mushroom as white color and tight. Yanagimatsutake have unique taste; the part of cap is chewy and part of stipe is crispy. Most people use stipe to cook because it has high nutrition. Property: Yanagimatsutake has medicinal benefit. There are prevent and resist the cancer, reduce fat and cholesterol in blood, detoxification of liver, and make the liver healthy. Period to harvest: cultivate as 1 month then the farm can harvest as 1 time. More information: Yanagimatsutake can cultivate whole year and take care same as Sajorcaju Mushroom. It also has the price same as Shiitake Mushroom.
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1.3 . Indian Oyster Mushroom Price: 55 Baht/kg. (average price from Talad-Thai) Description: The characteristic of Indian Oyster Mushroom is similar to Abalone mushroom and Oyster Mushroom. However, Indian Oyster Mushroom has light color more than Abalone mushroom. And it can keep into the refrigerator as many days. The top of the mushroom is light brown color. It appropriates to cook because it will have good smell. And the farm will transform to Dried Mushroom maintain more than normal life. Dried Mushroom will return the same shaped as fresh mushroom if the customer soaks to water. Property: Indian Oyster Mushroom can prevent catarrh, help to blood flow, and gastritis. Period to harvest: cultivate as 18 days then the farm can harvest everyday all over 8 months.
2. Dried Mushroom 2.1. Indian Oyster Dried Mushroom Indian Oyster Dried Mushroom is the mushroom which dehydrates for transform for food such as cornflakes, dried shredded mushroom. The proportion of Dried Mushroom and Fresh Mushroom is 1:10. It is the way to maintain the mushroom as low cost because the farm will dehydrate by sun.
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5.1.2 Logistics Management Mushroom Station needs to transportation the mushroom to the wholesaler or the customer as the market. There are Supachaya store, Nam Sawad market, Chok Jareun, Mae Jan market, Tad Saban market, and Mae Sai. The farm will separate by 2 locations. Each location use for one car to transport the mushroom; at first car will distribute the mushroom at Supachaya store, Nam Sawad market, Chok Jareun market, and Tad Saban market. And one more car will distribute at Mae Sai and Mae Jan. It is the way to facilitate to the customer. If the customers feel inconvenient, they will get the mushroom at the farm too. The farm will transport the mushroom as one time per day.
Customers Order
Mushroom Station
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Chapter 6 Administration
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Driver (1 Position)
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Mushroom Station has 16 positions 1. Top of manager (1 position) Task - To manage and control overall management in the organization. - To make a decision when the problems occur, which problem needs to be solved first or later. Characteristic - Male/Female, Age 30 up. - At least graduated in bachelors degree of Business Administration program. - Have high responsibility. - Must have experience more than five years. - Have a good skill in using computer and the programs. - Have an excellent communication skill. - Have leadership. - Have a skill in managing the organization. 2. Accounting Department (1 position) Task - To control the liquidity of the organization. - To analyze and calculate the cost, revenue, and other financial of the organization. Characteristic - Male/Female, Age 25 up. - At least graduate in bachelors degree of Business Administration program in accountant. - Must have experience more than two years. - Have a good skill in using computer and the programs, especially Microsoft Excel. - Be accuracy, honest and loyalty to the organization.
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3. General Management Department (1 position) Task - To plan and report the operation of the organization. - Training the employees. - To coordinate with retailers and the customers. Characteristic - Male/Female, Age 26 up. - At least graduate in bachelors degree of Business Administration program. - Be accuracy and ambitious. - Must have experience more than three year. - Have high responsibility. - Have an excellent communication skill. - Have a skill in managing the organization. 4. Driver (2 position) Task - To deliver the products to the customer. Characteristic - Male/Female, Age 20 up. - Be careful, loyal and honest to the organization. - Have the driving license. 5. Labors (depend on the year) Task - To cultivate and harvest the mushroom. - To take care all of the work about the agricultural. Characteristic - Male/Female, Age 20 up. - Be careful, loyal and honest to the organization. - Be diligent and responsibility.
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6.2 Administration Cost 6.2.1 Employee salary -Top of manager (1 position) -Accounting department (1position) 18,0001 15,0001 = = = = = 18,000 Baht 15,000 Baht 15,000 Baht 18,000 Baht 9,000 Baht
-General management department (1position)15,0001 -Diver (2 position) -Labor (depend on the year) Labor cost in 1st year Labor cost in 2nd year Labor cost in 3rd year Labor cost in 4th year Labor cost in 5th year (13 positions) (14 positions) (16 positions) (17 positions) (19 positions) 9,0002 9,000
117,000 Baht 126,000 Baht 144,000 Baht 153,000 Baht 171,000 Baht
Total salary expense/month as 1st year Total salary expense/month as 2nd year Total salary expense/month as 3rd year Total salary expense/month as 4th year Total salary expense/month as 5th year
183,000 Baht 192,000 Baht 210,000 Baht 219,000 Baht 237,000 Baht
***(the cost of labor will depend on the year; 1st as 13 position, 2nd year as 14 position, 3rd year as 16 position, 4th year as 17 position,5th year as 19 position) The farm hires one person for work at four nurseries. Then farm calculate the volume of the labor as number of nursery divide by four.
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6.2.2 Cost of electricity per month At the normal rate, the farm will use 300 units Estimate use of electricity 300 units x 2.4649 = 739.47 Baht Add. (+) Service expense = 228.17 Baht Total Electricity expense / month = 967.64 Baht
2.SME For the electricity of operation the business, house, industry, government industry, state enterprise, etc. that need to use the average electric energy as 15 minutes at least 30 kilowatt by one power meter. As the normal rate; Cost of electric Service fee (Baht/month) energy (Baht/unit) 2.1.1 pressure 22-23 kilovolt 2.1.2 pressure less than 22 kilovolt -150 units (no.0-150) -250 units (no.151-400) -more than 400 units (more than no.401) 2.4649 1.8047 2.7781 2.9780 228.17 40.90
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The office will use the electricity for light, computer, printer, telephone, air condition, etc. The cost of electricity in the office will depend on the season. If it is the summer, the cost will high more than winter and raining season because the employees use more air condition. The normal rate of electricity cost is 967.64 Baht by using for 300 units and include with service fee. In the summer, the electric will be using as 500 units. It will increase as 200 units from the raining and winter season because the employees use air condition. Then the cost will be (500units 2.4649)+228.17=1,460.62 Baht.
6.2.3 Cost of water per month Assume that the office will use the water as 11-20 units to administration the business.Then the cost of the water is 20 units 19 = 380 Baht but the government reduce to 350 Baht.
3th table, the water rate at other province 2. government and SME Quantitative for using water Number of unit (m3/month) 0-10 10 11-20 10 21-30 10 31-50 20 51-80 30 81-100 20 price 16.00 19.00 20.00 21.50 21.60 21.65 cost 160.00 190.00 200.00 430.00 648.00 433.00 Total cost 160.00 350.00 550.00 980.00 1,628.00 2,061.00
The cost of the water will depend on the season too. In the raining season will use less amount of the water. There are the 11-20 units as 350 Baht. And in the winter and summer
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will use more amount of the water as 10 units. It increases as 50percent from the raining season. Then it will be 21-30unit and the cost will be 550 Baht.
6.2.4 Cost of internet per month The farm will use TOT internet with Plus Net+ promotion as 7Mbps.512bps. the price is 590 per month without vat as 7%. Then the total price will be 590+(590*7%)=631.3. The internet will use in the office and share the wireless to the customer.
Plus Net +
: Local Call
This promotion includes with internet and local call. It starts at 50 times/month when you are applies for new telephone number or IP Phone. Download/ Upload Speed up to 4Mbps./512Kbps. 7Mbps./512Kbps. 10Mbps./1Mbps. 12Mbps./1Mbps. 15Mbps./1Mbps. 20Mbps./1Mbps. Price of exceed free call (in the country) Price of faraway/ mobile call (in the country)
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6.2.5 Cost of telephone per month The farm will use TOT internet with Plus Net+ promotion because it includes with the free local call as 100 times per month. If the office calls more than 100 times, it will pay more 2 Baht per time. And if the office use to call as long-distance and the mobile phone, the office must pay 2 Baht per minute.
Unit
5 5 5 5 5 5 5 5 5 5 5 5 10 70
Price
10.00 4.00 45.00 12.00 24.00 6.00 27.00 144.00 49.00 57.00 99.00 88.00 6.00
Total Price
50.00 20.00 225.00 60.00 120.00 30.00 135 720 245 285 495 440 60.00 2,885 Baht
In the table shows the equipment in the office which use contact the customer. All the equipment is not need to buy the new one in every month because the farm will buy new one when it cant use anymore. So, the office expenses will not the same rate in every month. It depends on the equipments life. Then farm will purchase the equipment 2 times in a year because if the farm always buy the equipment, it is waste the time and waste the money.
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Administration Cost at 1st Year Table 6.1: Administration Cost Year 2012
Administration Cost at 2nd Year Table 6.2: Administration Cost Year 2013
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Administration Cost at 3rd Year Table 6.3: Administration Cost Year 2014
Administration Cost at 4th Year Table 6.4: Administration Cost Year 2015
100
Administration Cost at 5th Year Table 6.5: Administration Cost Year 2016
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6.3 Depreciation
Table 6.6: Total Depreciation Year 2012
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105
106
107
108
109
110
111
113
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115
116
117
118
119
120
121
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The Prioritization Process This is the way to calculate and see what are the biggest loss and probability from the risk. This will help Mushroom Station knows which risk need to be solve first, which one is the most important. Table 8.1 ; The prioritization process of Mushroom Station Loss 3 4 X Probability 2 3 4 X
Total 16
15
20
Economic change
12
25
Financial Risk
20
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From the table, it can be seen that the most important risk which need to solve first if it happen is the risk of recruiting employees as employee can be fraud. The reason is because Mushroom Farm recruits the outside person not the person whom the company knows well. It can be anyone. So, this is very risky as Mushroom Farm does not know what their real habit is. Maybe those people can act like they are very good person and honest as just want to work in the company but in fact they are not like that. Next important risks are Financial risk and the fluctuation of the market, that is because the financial is just the prediction. Mushroom Station cannot know if it will become true or not. About the fluctuation of the market, it is very hard to know because it is very swing as the price of the mushroom depends on the market. Then the next one is the increasing of insects in the nursery mushroom, the increasing of insects in the nursery mushroom, economic change and the delay of delivery product as arrange by the important of the risk.
8.1.1 External Forces Mushroom Station concern on the external risk which cannot control. However, it can be predict and think about the solution as to prepare for the risk that can be happen in the future. Climate Change The climate change is very important to mushroom business because to cultivating mushroom, the mushroom nursery need to be set in the appropriate moistness. Otherwise, the production of mushroom cannot be harvest as much as expect. Because of this force, it means that Mushroom Station need to be update and always check the Meteorological Department or news all the time. If it can be known very early, it can be prepare for the effect as fast as well. The increasing of insects in the nursery mushroom This is also important to the mushroom business because once the insects can get in to the mushroom nursery. It is hard to treat. The way to prevent this risk is to build the slan for the mushroom nursery. The slan is also cheap and can find easily in the market.
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Reference:nonthaburicity.olxthailand.com/1329121412_ 314802073_2---.jpeg The fluctuation of market The fluctuation of the market can affect the market. If the market price of mushroom goes up, the mushroom product of Mushroom Station will goes up as well. Also, if the market price of mushroom goes down, the mushroom farm product will goes down as well. The best way to prevent this risk is to order the Marketing Department to follow the direction of the market all the time and to estimate the future of market price. Economic change It is be known that when the economic changes, every things change. So Mushroom Station will get the effected, too. The economic change can be varied like deflation and inflation. The best way the farm can do is to always catch up to the news all the time. The important thing is task of Marketing Department because if he/she can calculation or measure the future direction of the economic, the farm can know the economic situation before it will happen.
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8.1.2 Internal Forces There are many factors that can be as internal forces. This is an important one as Mushroom Station needs to be concern and try to get rid or prevent these problems away. Risk of recruiting employees Employee can be fraud
This is the hard internal factor one as Mushroom Station cannot control know exactly what is the real personality of that employee. The best way is to build the good relationship among the employees and the most important one is to build the loyalty in that employee as to make them love the organization. The delay of delivery product
This can happen as when there are any accident occurs during sending the product to the wholesalers, for an example, there is the problem with the wheel, tires, etc. The way to solve this problem is to call that wholesaler as to tell them about the problem that occur, to apologize and ask for the postpone of delivery. Financial Risk Financial risk can happen in every organization. It is also effect in many ways. Sales decrease Cost/Expense increase
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References
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