Herbal Plus2003 Very Complete

Section 02
By
Miss. Prapasiri
Suttipan
ID. 5131205140
Miss. Rangsima Susangeim
ID. 5131205168
Miss Sudarat
Napikun
ID 5131205193
Miss Suparat
Homnan
ID 5131205197
Miss Sumitra
Homnan
ID 5131205198
Present
Aj. Chaiyawat Thongintr
Project Feasibility Study and Evaluation 1203302

Mae Fah Luang University,
Preface
Herbal plus company are the project feasibility study in the term to study the
feasibility in opening up an herbal drink business at Chiang Mai province. Which
herbal juice can be seen as many benefit. The way in studying the feasibility of this
project is expected that the studying on this project feasibility study will help any
people who wanted to start herbal drink business to read and be a part of the
inspiration of the reader.
Executive Summary
Nowadays, Thai people trend that more interested in health because of from
studying behavior of health care, it can divided the behavior are three part, there are
low level, middle level, and high level.
Herbal plus Company limited was established business plan in January 2009
by invested 7,386,526 bath. The company will be established at Chiang Mai province
at Doi Saket sub district that basin and wide area to build manufactory. The potential
to develop and grow rapidly both economic, tourism, and investment because of
Chiang Mai is the second largest of country in Thailand and have a good economic.
Herbal plus company concentrate to present herbal juice for customer healthy. Our
company will use high technology and high quality of machine in production process.
In the operation plan, our company also thinks about a quality of employee in term of
staff in operation. Moreover, we also emphasize in customer expectation, their healthy
and provide product to make them satisfy and reliable in our company. Herbal plus
focus on the healthy of customer.Our target market divided two groups; the first group
is people who love to take care themselves and the second group is customer group
who concerns about control weigh. About product, we produce herbal juice 5 kinds
are ginger juice, lemongrass juice, aloe juice, Roselle juice and Asiatic Pennywort
juice. Our business has many competitor but we will try to fight with their and pass
this problem to achieve and success the goal. Good healthy with Herbal plus is a
positioning in our company.
The company expects to sale in year 1 is 44,499,000, year 2 is 107,440,320,
year 3 is 125,381,880, year 4 is 140,359,440 baht, and year 5 is 157,290,120. It
increases continually and constantly.
For the project Herbal plus company would like to require a total load at
12,000,000 baht with 12% in interest rate, repayment 5 year. The payback period is 1
year and 8 month. Net Present Value is 26,230,097.77 baht that value of return from
the investment higher than the investment at the beginning about 7,386,526baht.
Table of Content
Chapter 1: Introduction
-Background and Significance of the Project
-Project Objectives
-Benefits of Project
-Gantt chart and Time frame of the study
Chapter 2: Industry Profile
-Nature of Industry
- The background herbals usability
- The background herbals usability in Thailand
- The benefits of herbal juice
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7
8
10
-Situation of Industry
- Economic Conditions
- Analysis the situation: Healthy beverage market
- Business trends of beverage in year 2554
- Types of beverage franchise
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11
13
15
16
-Product
17
-Vision of company
19
-Mission of company
19
-Business Strategy
-Corporate Level
-Business Level
-Functional level
20
20
20
21
Chapter 3: Market Feasibility Study
23
-Market Analysis
-Economy
-Political
-Social and Environment
-Technology
24
24
25
27
27
- Competition Analysis (3C Analysis)

- Competitor Analysis
-Direct competitor
-Indirect competitors
-Other Competitor
-Customer Analysis
-Competitive Analysis
29
29
29
32
35
35
36
-STP Analysis
38
-Segmentation
38
-Target Market
39
-Position
40
-Marketing Mix Strategy
41
-SWOT
42
-Sales Forecast/Profit Estimation
43
-Marketing Expenses
49
Chapter 4: Technical Feasibility Study
53
- Product Characteristics
54
- Specification, Feathers, Dimension, Life Time, etc
57
- Production Process
58
- Location
59
- Facility Layout
60
-Machine/Tools/ Equipments
63
-Cost of investment
-Investment cost
70
77
-Operating cost
87
-Management Analysis
90
-Logistics Management
92
-Customer Service
92
-Return goods
92
-Location Planning
92
-Transport & Traffic
92
-Material Handling and Transportation
92
Chapter 5: Financial Analysis
93
- Income Statement
94
- Balance Sheet
99
- Cash flow
104
Chapter 6: Risk Management
109
-Risk Management
-Business risk
-Operation Risk
-Market Risk
-Financial Risk
-Economic risk
-Competition risk
110
110
111
111
111
111
113
-How to Manage Risk in our Business
114
Chapter7: Summary
-Summary
115
116
Reference
117
Appendix
122
Chapter 1
Introduction
Background
Nowadays, Thai people trend that more interested in health because of from studying
behavior of health care, it can divided the behavior are three part, there are low level,
middle level, and high level. For these founded that there are more than half of the
population with behavior health care at the middle level. Almost about 1 in 3 is high
level in health care and only slightly with behavior that low heath care. Participants in
the municipality, behavioral health care in nearly 2 times higher than those who live
outside the area - municipalities (42.0 percent and 23.8 percent respectively).
Thailand have rate of economy growth continuously; so we decided to establish this
company.
Herbal plus company was established in Jan 2009 in Chiang Mai, Thailand.
Because of Chiang Mai is the second largest of country in Thailand which subordinate
from Bangkok and a population about 1.63 million that more as No. 4 of country.
Chiang Mai province has high level of development and there is the potential to
develop and grow rapidly both economic, tourism, and investment. So, Chiang Mai is
second largest economic city after Bangkok. Chiang Mai there is many tourist
attraction both natural and cultural; so there are many tourists visit in there. Chiang
Mai is a province where has the potential to travel at the national level and
international level. In 2009, amounted to 5,590,326 visitors who have income from
tourism of 39,785 millions which in the fourth position of the country, after Bangkok,
Phuket and Chiang Mai Chonburi. Chiang Mai has rate of economic growth, the
average percentage 3.11 income populations per capita, average of 81,830.71 baht per
person per year in the top 3 of the Northern. The numbers of visitors have 4,343,090
people, Thais 3,101,790 people (71.42%), and International 1,241,300 people
(28.58%), which can earn income 32,605.79 millions from foreigners are 13,493.77
million bahts (41.39%) and Thai 19,112.02 million baths (58.61%). Herbal plus
company was produced because of many people are interested in our health now.
Moreover, herbal drink for who are take care health. Due to we looked the business
chance of healthy beverage marketing is the popular and high rate of growing,
including the customers pay attention about themselves because they always take
most of their time for working. For this reason make this business is the one of
choices for customer who wants the convenience to take our products for their lives.
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The main target groups of Herbal plus company is the working age (25-59 years old),
who has the lifestyle that cares about his/her health, gives precedence to flavor, and
takes interest about brand name. There are 2 minor target groups. The first one is the
studying age or before working age (20-24 years old) that has moderate income and
likes to try new thing. Another is the old age (>60 years old) who takes the interest
about his/her health so much and has the drinking herbal juice experience before so it
has the chance that lineage who is the main target buy for him/her.
Our company name is Herbal plus which means various herbal that can maintain
one's health and it can treat various disease. Moreover, Plus also means adding
freshness to clear as we get a refreshing taste and aroma of the herb. Herbal plus
company is the company opened for business selling health drinks. Beverages are sold
around in Chiang Mai. Distributions of the main channels are kiosks selling drinks
(Herb Kiosk), which have goal of expanding the Chiang Mai province and other
channels to extend the following result is small shops with respect to health (Health
Channel), including 20 units of various hospitals and 15 of the Fitness Club and big
hair in 2004, will expand into a large store (Discount Store) were 27 branch. Our
product has 5 taste are ginger juice, lemongrass juice, aloe juice, Roselle juice and
Asiatic Pennywort juice. We use these herbal because it has every season and easy to
grow.
Objectives
-To study marketing strategy of this project.
-For analysis the feasibility of herbal juice.
-To study the possibility in establishing project feasibility of new herbal juice.
Benefits
-Knowing marketing strategy and apply in the real time.
-Knowing situation and the trends of herbal juice, understanding behavior of customer
and be able to select and identify the right customer.
-Able to apply the knowledge in real the business under the business rapidly growing.
Designations
November
w1
Planning strategic
Distribution of tasks to each department
Define the business opportunities
Conclusion before conducting business
Study to conducting
Analyzing appeared events or problem during conducting business
Planning to improve and develop the strategies
Planing to possible expand the branch of the
company
Prepare a possible way to launch a business
December
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January
W
2
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Chapter 2
Industry Profile
Natural industry
What are herbs?
Herbal under the meaning of an act of legislation is the medicine that receives from
plants, animals, and mineral that doesnt pass any processing or transforming except
drying, such as; plants still be root, stem, flower, or fruit that no pass any process,
e.g.; cutting, grinding, extracting, including mixing with other substances. In the way
of business herbal is modified to be several products. For example; to be cut into
small pieces, to be dried to be powder, to be pressed to be the rod pieces, etc. When
were saying about herbal, we always think about the medicine benefits. Due to there
is less medicine that be made from animal or mineral.
The background herbals usability.
Herbal is the naturals gift that gives to human on the earth. Human can use
the herbal to make the medicine for treating many diseases since Neanderthal in Iraq.
For 4,000 years in the past, Sumerians entered to settle down near the area of
Tigris and Euphrates rivers for now; there are many kinds of herbal that can used.
For the next period of Egypt, there is Im Hotep, who was the famous doctor
that was appointed to be the God of treatment. He had the ancient herbal manual,
Papytus Ebers, that was written on 1600 before Christ. It was discovered by Egypts
specialist named Georg Ebers. In this manual, there are many contents about herbal
manual more than 800 recipes and kinds of herbal more than 700 types, such as; Aloe
Vera, warm wood, pepper, henbane, hemp dogbane, and mandrake. The processing to
prepare the medicine in the past is boiling, brewing, drying, distilling to be tablet,
covering medicine, and waxing.
In addition to, many nations of the Europe and Africa areas had the evidences
of use herbal. For the sequence of starting use herbal is after herbal progressed in
Egypt then it inheriting continuously, such as; Greek, Roman, Arab, Iraq, Portuguese,
Sweden, and Poland.
For the Asia area following the historys recording found that the use of herbal
at India for the first time. Then, the use of herbal occurred in China, Malaga, and
Thailand.
The background herbals usability in Thailand.
Thailand has appropriate climate to grow up of several plants, especially

herbal that there are more than 100,000 types can grow up by themselves and
cultivating. Some of herbal used to be the raw material to make the modern medicine.
Many of herbal also used to be the quack medicine and ancient medicine. The
majority of foundation of herbal education was influenced from India because
following the Thailand historys evidences indicated that Thai people emigrated from
Altai mountain range of China arrived until Thailand for now. So, there are the
influences of cultures, religions, traditions, including the ways for treatment diseases
from India. That appears obviously that apply the Indian physician scripture as the
treatment standard is diagnosis. There is who estimate that have user the herbal about
500 million bath in the country (These herbal come from inbound and outbound
specially China, Korea, and India); in order that due to the forest was destroy, it made
to campaign about planted a herb garden in 1800B.E. which corresponds to the reign
of King Ramkhamhaeng. This is the golden age of Thai herbs. His forest herbs very
big on the top of the Khiri Mat, Khiri Mas district, Sukhothai province with an area of
several hundred farm which had also been preserved a forest reserve as a source of
research interest.
After then, in the reign of King Bhumibol Adulyadej. He saw that herbs were
both medicine and food for family. The nation will prosper and secure which depend
on a small family that are strong, good health both healthy body and mind. The King
has graciously pleased that provide the royal project herb garden in the country in
1979. By, he has study the collection about all aspects of herbs, such as academic of
biological, medical, treatment, conservation the environment, especially plants that
have benefit cause this projects. Herbs garden has many located. It also has extensive
research by the Institute of Science and Technology for find the important of the herbs
that are poisonous by pharmacist distill is medicine instead of synthetic medicine that
used at present.
Thai people not just only use herbs as medicine but they were taken to adapt to
consumers in the package of food and herbal drinks. In this case will be discussed
specifically "Herb that is used as a beverage for health care." Life of the Thai people
is the foundation for a long time ago which is identity to the show unique in the
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nation, lineage and who is already growing. One thing was very good expressed, it is
the combination of art and related in the daily life of Thai people. This art includes
about living, such as the establishment tray of food and food operations. Moreover, it
has the most beautiful in decoration is an element of the food. Therefore, it is not
surprising that Thai Beverage will be making who to drink absorb the flavors and
benefits. To trace the history of herbal drinks that since it was a Buddha's lifetime.One
type of water called "Ach chaban" or Pana water which the monk can be this drink
all day long time instead food after dinner according to the commandments of
Buddhism Pana water is used herbs or crop species that are spicy such as ginger,
lemongrass, etc.
Benefit of herbs there are

1. Used as a therapeutic drug.
2. Used as food.
3. Used as cosmetic.
4. Used as supplements body.
5. Used as toxins.
6. Used as beverage.
7. To promote economic security.
Types of herbs
Identification of Thai herbal juice as the process can be divided into two categories.
1. Plain water which used to traditional or ritual ceremony such as raising the merit
and Songkran festival etc.
2. Fruit juice and water as a result of dress up to ensure tasting, such as lime juice,
okra juice, Matum juice, lemon grass juice and Pandan juice etc.
Formerly, plants and fruits that used to be the juice usually keeps at theyre
still fresh and used them immediately. Their flavors are freshness and full fill with
nutrition. Until now, the beverages are modified into many different patterns by using
modern technology to adjust them in the term of producing process, especially; the
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packaging will provide more convenient. Thai beverages give both taste and benefits
in the same time. The benefits are the drugs properties from the plants or herbal. In
addition the nutrient that gives benefit to our body.
So, the herbal juice is meaning the beverage that we got from some kinds of
plant or fruit which is natural. It can from any part of them, such as; trunk, leaves,
flower, root, fruit, or seed.
The benefits of herbal juice.
Herbal juice is the one of good taste of beverage that gives nutrient and energy
for the body system, such as; digestive system. Due to herbal is full fill of mineral and
vitamin, so it helps to repair the cells. From this reason, your skin will be growing;
your hair will be strong. In addition to, herbal has less energy and no any fat so it
helps to control the excessive of lipid level that may storage from the taking of a lot of
fat or you can drink the herbal juice while you are on diet.
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Situation of Industry
Economic Conditions of 2009
the Thai economy was hit by deep global economic recession that had caused
Thailands export and tourism incomes to fall sharply. The fall consequently eroded
household consumption expenditures and investment. The sharp drop in exports of
goods and services and resultant decline in private consumption and investment,
therefore, contributed to marked GDP contraction in 10 years.
Figure 2.1 economic 2009

The World economy, in the first quarter of 2009, plunged notably by 4.0 percent but
recently there have been signs of stabilizing which seem to suggest that worst
synchronized collapse in global demand might be already behind. The sharp and
broad-based contraction in the first quarter followed the small contraction started in
Q4/2008. However, the world financial crisis that has already caused tight credit
condition and liquidity problem in financial institutions, and loss of wealth and
confidence has inevitably affected the real sector where its impacts are felt more
clearly in the second quarter. The impacts in the real sector were seen in sharp decline
of consumption, investment, and production. The cut in production has left the world
economy with growing excess capacity and higher unemployment rate. Demand for
goods and services in major economies have dropped. As a result, the world trade
volume fell significantly and contagious effects via international trade have prevailed
more clearly in various countries in the first quarter of the year, especially in the
major exporters in Asia where their exports fell tremendously and the contraction has
lingered for several months. Most countries affected by the global crisis have
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launched similar recovery and stimulus measures. These include, for example, drastic
cut in interest rate cut, liquidity injection into the financial system using conventional
and unconventional quantitative easing methods, eased and expansionary fiscal policy
ranging from tax cut, government budget expansion both in terms of current and
capital spending. In this respect, most countries have given priority to public
investment for improving quality of infrastructures to increase productivity and long
term competitiveness. It is expected that accommodative monetary and fiscal
measures would be increasingly effective in the second half of this year as the
multiplier effects kick in. The policy impacts in each country shall, in turn, spillover
and enhance the recovery process of each other through international trades. In this
way, the global recovery would be sustained into the longer term.
However, on the positive notes, in March and April 2009,

there were some encouraging signs suggesting that the world economy is being in the
stabilization process at the low level and the bottoming out of the recession is
approaching. The improvement has been seen in consumer confidence, moderate
contraction in manufacturing goods production and de-stocking. Moreover, the results
of the stress tests on 19 large banks indicate that that several large banks are ordered
to plump up their equity cushions to the lesser extent than expected. The test results
point to less capital required to be raised for the banking system and, therefore, has
eased the financial sector in the US and
Europe. Hence, the Feds stress tests of large financial innovation should help restore
confidence that systematic risks can be managed.
Gross Provincial Product (GPP 2009)

-Wholesaler, Retailer, Repair motor
vehicles, private and household
appliance.
-Agricultural, hunting and forest
-Hotel/ Restaurant
-Manufacture industry
-Education
-Shipping, warehouse and
transportation
-Immovable property
-Public administration and defense
-Others
112,221 baht
15.05%
16.35%
10.93%
9.5%
10.18%
7.23%
3.94%
7.23%
19.58%
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Chiang Mai economic 2009
General condition of trade 2009
Condition of Consumer product
In May, 2009, price of consumer product is drop because of reduction of education
fee and education supplies. It is an effect from 15 years free education government
policy.
The index of Chiang Mai consumer price in May 2009 when compare with April
2009. It drops into 0.9% that has a cause from both food and beverage price and
others product price that except from food and beverage. Food and Beverage is a main
cause to dropping that has cause from vegetable and fruit price because of it is going
to rain season and some fruit season. It can affect directly. About others product that
excepts food and beverage, it comes from reduction of education about 15 years free
education government policy.
Condition of general economics, it is a good condition because of Chiang Mai Grand
Sale 2009 project and trend of Panda. It is a proud of Thai people.
Analysis the situation: Healthy beverage market.

Functional Drink Is a new group of beverage market. Thai consumers are pay
attention more. The main reason is because the flow of important and interesting
health. That affect to functional market has continued to expand. And in 2553,
Kasikorn research think, will be the year functional market has trend to increased
competition. For want to consumers purchase by using strategies to stimulate the
market to be recognized by more consumers. For Functional Drink market value of
Thailand in 2553. Kasikorn research extrapolate will has value about 4,000 million
baht. Increase 100 percent when compared with last year. One part comes from the
promotion of various. Entrepreneur confederate stimulate the market it also has a new
entrepreneur. That more invested in this market but not as much as two years ago.
However, Kasikorn research think that the factors that make Functional Drink
market growth has continued. Entrepreneur must focus on the target market.
Especially, now consumer is very important and when we understand consumer it
can respond needs consumer and moreover, the product to be acceptable and
consumers decision to buying.
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Kasikorn research say that, Besiege, EU, U.S. and Japan which are export market of
fruit and vegetable drink that important of Thailand. It should be noted that ASEAN is
an attractive market in Thailand. And has trend in export fruit and vegetable drink that
increase. Obviously, from in the first half of the year 2553. Thailand export fruit and
vegetable drink to ASEAN in price $23.5 million. Increase about 57.7 percent. By
Cause that export fruit and vegetable drink to ASEAN. Besides, already condition of
economic recovery. Affect of opening ASEAN free trade (AFTA).Specially, new
ASEAN group; Laos, Myanmar, Vietnamese, and Cambodia. That start decrease
import tax rate on January 1 2553. Makes capital of export fruit and vegetable drink.
Into these countries more and more. Therefore, Thai entrepreneur should expand this
export fruit and vegetable drink to ASEAN market. Type of fruit and vegetable drink
that should expand export to ASEAN market such as other fruit and vegetable drink,
mix fruit and vegetable drink, and other orange juice, etc .
In order that for expanding export market fruit and vegetable drink of
Thailand. And increase market share too. For import fruit and vegetable drink of
Thailand from ASEAN. It is low price in earliest stage of the year 2553. Thailand
import fruit and vegetable drink from ASEAN only $ 0.8 million. Increase of 33.3
percent. Affect to Thailand still have advantage over balance of trade or increase of
58.7 percent. However, Thailand still has caution of import fruit and vegetable drink
from another country, Outside ASEAN. Specially China about effect from opening
ASEAN-China free trade zone.
This in the future may be occurring import fruit and vegetable drink from China that
lower cost to Thailand. It may be effect to balance of trade in the market all of
Thailand.
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Business trends of beverage in year 2554
Trend of consumer behavior that changes and resulting beverage business to be
adjusted. For example:
1. Beverage for health: In present day, for the product about beverage in needs
consumer.
Besides, consumer request about taste of beverage. Which
entrepreneur must search for the product that correspond needs target market
the highest for value-added products. And in point of health is also used as a
selling point in the long run. Because, the mainstream in the consumer interest.
2. Beauty from eating or drinking: Besides cosmetic the way that makes the
body beautiful has caused food and beverage specially formulated for beauty
from the inside as well. It is an initial step of product trends to drink another
type of development, such as powdered beverages for a dietary supplement for
beautiful the fight against aging from the inside with a mixture of drinks as
antioxidants in the skin. Beverages containing ingredients that can help to
nourish the skin and etc.
3. Detoxification: The consumer has chosen the product that help to detox the
body or to stimulate of physiology for detoxify. Nowadays, you can see the
new beverage that allowed to the market. It especially the beverage that
ingredient
with herb such as Tiliacora Triandra Diels, Houttuynai Cordata
thumb, Thungergia Lauri Folia, Morus etc.

4. The power of flowers: The product that no food and beverage that it have
smell like the Lavender, Hibiscus and Jasmine very popular ingredient for
long time ago. But food or beverage have new things that it uses the smell of
flowers. As Thai dessert and Thai food also have the smell of flowers.
However, after the research of value of flower; their causes to take many
flowers become to ingredient with food and beverage more and more. And it
has an agreement from consumer well.
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5. Worthiness and Really Value: In present day, the consumer has focus on
worthiness from consumption which the study of nutritive value that gain from
consumption. Thus, the communication with consumer to realize with the
worthiness and really values are important for succeed of marketing. But it
have condition are the information that communicate to consumer is real and
able to establish or reference of research from laboratory that it have universal
standard. It will get trust and make the marketing for a long term.
Types of beverage franchise that would be invest in 2010-2011
Frozen Drink Franchise for health is one of franchise that bring many fruits are
mixed for keep health and protect many milady such as cancer, skin, detox etc due to
new trend, many franchise are try to get product to new generation drinking or fusion
drink. It is apply from natural products: Lichee, Kiwi, Green Apple, Vegetable with
Honey, Taro etc. It does will get the new menu from the idea of intermixture in
produce the product by juice that is the main ingredient. In addition, it have
Hongkong drinking style and Taiwan drinking style so it is mix beans with frozen
drink for to get the new flavor include to get more nutritive value from beans as well
and get more alternative for consumer.
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Product
Initial of investment our company will produce herbal juice 5 kinds are ginger juice,
lemongrass juice, aloe juice, Roselle juice and Asiatic Pennywort juice.
Ginger juice
Benefit
Nutrition: There are more nutrients that have benefit to health
such as calcium maintain bone and tooth and there is betacarotene for help to resist cancer.
Value of drug: cure flatulence, reduce phlegm, cure feel
queasy symptom, vomit and carsick. It helps digest and resist
occur scar in stomach.
Roselle juice
Benefit
Nutrition: give high vitamin A, eye care, and help maintain
bone and tooth
Vale of drug: excreted urine, reduce blood pressure, reduce
thirsty symptom.
Asiatic Pennywort juice

Benefit:
Nutrition: give high vitamin A and calcium. Moreover, it has
vitamin B1.
Vale of drug: cure bruise within body, cure aphthous ulcer, thirsty,
reduce migraine symptom, maintain brain and heart, cure
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exhausted and reduce blood pressure if drink every day only one week it can make
high blood pressure decrease. Moreover, it can destroy cancer cell, reduce pain and
cure scar in stomach and intestine. It can help flow of blood and excreted urine.
Aloe juice
Benefit:
Nutrition: heal a wound and stimulate the growth of cells
around the wound.
Vale of drug: maintain health that exhausted and helps the
excretory system to normal.
Lemongrass juice
Benefit:
Nutrition: Has vitamin A help maintain eyes and calcium and
phosphorus help maintain bone and tooth.
Vale of drug: cure flatulence, colic, excreted urine, reduce the
toxicity of unknown substances in the body and reduce high
blood pressure.
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Vision of company
Be the number one of herbal juice in the North of Thailand within 5 years
Mission of company
Herbal plus company concentrate to present herbal juice for customer healthy. Our
company will use high technology and high quality of machine in production process.
In the operation plan, our company also thinks about a quality of employee in term of
staff in operation. Moreover, we also emphasize in customer expectation, their healthy
and provide product to make them satisfy and reliable in our company.
20
Business Strategy
Corporate Level
Herbal plus company is a company that present about healthy drink by using herbs to
be raw material in production process. The appropriate strategy of Herbal plus
company is strategy in market penetration level. Our company will push product to
penetration herb drink market in Chiang Mai and become to the number one of herb
drink company in Chiang Mai by using attractive point to persuade the customer
following;
1. Quality of product and raw materiel is guarantee from Food and Drug
Administration.
2. Offering regular product price to customer.
3. Serving the best service to customer such as delivery, when the customers
more order of product. Our company will offer delivery free service for them.
Business Level
Herbal plus company is a company that has highly competition environment and
increase continuously. It affects directly to our company because the customer will do
the business with the company that give the highest return, benefit and make them
more satisfy. The way to stand in the high competition is making the Differentiation
strategy as follow;
Price differentiation: The environment of Herbal plus company has high

competition. Herbal plus company will give the price that meet the customer
satisfaction to attract customer.
Service differentiation: Giving the regular price to the customer and we have to
make the customers loyalty by creating the impression to the customer by services
such as service satisfaction over quickly, clean and good workplace.
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Time differentiation: Services will make the great opportunity. After customer order
product, we will immediately to deliver product to customer.
Transportation differentiation: We provide transportation for deliver an order

product to customers shop.
Technology differentiation: we provide the high technology for production process

and high technology machine. Moreover, we also use computer to help in
organization processing.
Functional level
Marketing
Our marketing we focus customer who interested take care health. We have
many distribution channels to promote for customers know well. Build strong good
relationship to customer for customer is loyalty and survey customers need then
bring the information to develop the product for make customer more satisfy.
Moreover, we are develop product all the time such as create new packet and new
taste of juice for choice to customer. In addition, our business also emphasizes
production with the low cost for get more profit and can set the price not more
expensive for attractive customer to taste.
Production
We have productivity with the low cost under the plan that emphasize produce
ourselves it can occur saving the resource.
Production Strategies
-
Using the efficiency machine when produce the product.
Choose the best raw material and ingredients.
Emphasize both quality and quantity.
Standard taste of product.
22
Human Resources Management Strategy
- Hiring employee in local area for convenience and saving cost.
- Training salesperson about knowledge of herb, process of produce, advertisement,
service and answer customers question.
- Training staff who produce the product about using the machine, process of
production, keep cleanliness and nutritional value of herb.
- Training officer about knowledge of account, contact to customer.
Operation Strategy
- Diversity taste of herbal drink
- Focus on quality and benefit to health
- Design packet of product and create new taste follow customers need.
- Set standard price
- Clear vision and mission
Financial Strategies
Our company will loan the money from bank and big company that has low interest.
We do the best financial for prevent the problem of collect dept.
23
Chapter 3
Market Feasibility Study
24
Market Analysis
Economy
Economic changing state has effect to the organization directly. Because of
when we run the business depends on financial state that invests the product such as
raw material, labors, equipment, etc. All of these are important to organization. If the
economic increase, it will be problem of cash flow. In the other way, if economic
growth that make more confident in management, including customers also have
domestic economic confident. From this reason, it can increase the products orders.
On the other hand, if there is some situation that impacts to economic system, it can
be the cause of the customers unreliable about organization management.
Economic growth leads to major improvements in living standards, expanding
existing markets and opening new ones. The real economic growth of one country
relative to another is an important indicator of business opportunity. Economic growth
depends on productivity and investment: using existing resources more efficiently and
investing in new resources. Success in this process generates increased incomes which
then fuel demand and encourage further economic growth.
()
54,000
53,500
53,000
52,500
52,000
51,500
51,000
2550
2551
2552
Table 3.1
Gross Province Product
Economy of Chiang Mai is Gross Province Product (GPP) has the rate of
growth increased continuously as the population by the year 2009 that it will be
amount to increase as 53,693 million and increased from the year 2007 is 2.19
percentages
25
Employment in Chiang mai
Employment in the manufacturing sector in 2008 increase from the year 2007
is 2124 people permission from the factory operates increases 89 factories. However,
they had lay off employment to 1,991 people from the factory to inform the business
of 62 factories, a number that increased from last year up to 1148 people, which
reflects the impact derived from the economic crisis is cleared. Chiang Mai Province
has been ranked in 2009 with the second highest cost of living in Thailand, Asia's top
33, and top 192 in the world.
Consumer products 2009 in Chiang mai

In May, 2009 price of consumer products is decline that there are cause from
decline of tuition fee, books and school supplies as a result of government had 15
years of free education policy. Consumer Price Index of Chiang Mai in May 2009
compared with the in April 2009 that declined 0.9 percent. It has cause from the price
of food and drink and cost other categories that non food and beverages. By price
food and drinks is declined that mainly cause from fruit and vegetable prices because
of approach the rainy season, the cultivated area has plenty.
Political
Thailand Investment Year 2008-2009
The government has designated 2008-2009 as Thailand Investment Year

2008-2009to restore the investors confidence, to promote investment in target
industries and to stimulate the entrepreneurs development to enhance Thailands
overall competitiveness.
The government policy has the direct effect to the company. Thai government
concern about current business situation, they try to support SME and agriculture
products. The government attempt to promote tourism together with product that can
attract many tourists to buy product and its help to create the new market distribution
at the same time for profitable for SME business that while opening. Furthermore,
doing business have to emphasize on trade law too such as the certification of hygiene
26
and quality of food, the certification of hygiene checking must allow from inspection
agency recognized and Committee Food and Drug Administration only. But now,
17the way of checking is easier by checking pass the department of Medical Sciences
(Division of Food and Science Center of the 12) was also a Research Institute of
Science and Technology of Thailand food that provides the checking service. This
certification can enhance the level of product, guarantee safety including protects the
consumer.
Location for registration

Request for registration at Department of Business Development in ChiangMai.
Registration of business
Individual- It has one owner, several owners or partnership not registration.
Enterprise of individual beauty salon business not registration commerce.
Classify by corporate, limited company, partnership, common partnership.
Enterprise must registration following commercial law.
Food and Drug administration

In Thailand, the Food Act of B.E.2522 (1979) is the major law aimed at
protecting and preventing consumers from health hazards occurring from food
consumption. According to the Food Act, the Ministry of Public Health is designated
to be in charge of the execution of this act. The act also empowered the Ministry of
Public Health to promulgate ministerial regulations, to appoint the Food Committee
and competent officers, and to set up other activities in order to carry out the
provisions of the Act.
27
Social and environment

Nowadays, in the social that consumer more attend to healthy, so the company
has the opportunity to develop useful products for health which is herbal juice for they
who love healthy. Color of each herbal juice, it attract to the consumers of all ages,
whether children, teenager, adults until to the elderly that it increase target marketing
for our company. In environment, Herbal plus company located Doisaket is one of
district in Chiang mai which these areas are there easy transportation to city in
Chiangmai and this district that economic growth in first list of Chiang Mai Province.
Because of it is important route that passes from Chiang Mai to Chiang Rai. For the
establishment of Herbal plus factory will be occur the process produce by technology
industrial tools that pollution is occurring and company have to control it. So, it can
avoid damage to the reputation of the company and cause the cost of an increase by
prevention of toxic pollution that may be occur harm to the environment and social.
Technology
In the past, technology is not a central role in production process so, the
production processes quite slow and the standard of goods is not stable. But at the
present, there is development in term of production process to get faster in production
as well as the standard of the goods. The standard of the goods will depend on the
quality of technology in production process. Our company is taking IT to use in the
management by applied for occur operational efficiency and use in decision making in
operations management. In transportation, use in movement and logistics product
from factory to customer by take technology to help create the comfort and speed to
the transport. As a result, the transportation is efficient that company will be receive
the trust and confidence of customers when the movement, good transportation and on
time. For example;
Grindmachine(wet/dry)
In present, Grindmachine(wet/dry) was used to substitute
the
Grinding that use by hand of human. It can
grind raw material to high quality and get standard ingredient.
28
Pasteurizer Machine 3 Tanks

It can percolate to get a quality of herb and can sterilize bacteria
and germ for get high quality of clean product.
Close lid machine

It helps to close many of bottles and get more confident that it
isnt occur accident or mistake. It can close many bottles in the same.
Contain machine
This machine can contain herbal juice in the same quantity of
each bottle and help to reduce loss of herbal juice.
Squash machineseparate water and scraps

It can help to divide herbal juice that good or bad and get
stardard or not. We will get a high quality of herbal juice.
29
Competition Analysis (3C Analysis)

Competitor Analysis
Nowadays, trend of herbal drinks are more popular so it has many competitor. We can
divided competitor into 2 kind are direct competitor an indirect competitor.
Direct competitor is healthy drinks that produce from fruit and vegetable or herbal.
We can classify into 2 groups are direct competitor and indirect competitor.
Direct competitor
We have five direct competitor such as Tipco, Malee, Unif, Doi kham and UFC.
The first one Tipco, it built on 1976, 22 may. Now they have
cost for register 500 million baht. Its the first business that gets
certification ISO 9002 of world in production pineapple. They
have many products from fruit and vegetable juice and many
products export. Moreover, they have developed product all the
time for satisfy needs customer.
Advantage :
-The brand of product is the first popular.
-The flavor is satisfied to customers.
-They have various juices which mean various choices.
-Tipco can export the product to abroad.
Disadvantage:
-The cost of operation is very high.
-The product is high price.
-The flavor does not like fresh fruit
30
The second Malee run the business more than 30 years. Malee
Company is leader of fruit and vegetable juice, canned fruit and
cereal drink. They have expert in all the process such as search
for the raw material, produce and transformation of fruit and
sell both inbound and outbound. They have many products for
choice to customer and develop product all the time. So these
things get the reliable from customer.
Advantage:
-The produce has the most diversity.
- The product is popular in the market.
-The company has introduced the product continuously.
Disadvantage:
- More expensive
- The cost of producing is high
The third Uni- president firm set up on 1994 with the cost
register 250 million. Uni-president firm get the acceptance and
confidence from customer by the firm is the producer several of
beverage under Unif brand. It composes of mix vegetable and fruit,
fruit juice, tea and coffee. Moreover, The firm also present and develop
product to good quality, can do stable taste and nutrient value for
healthy of consumer.
Advantage
-
The company has been continually gained well acceptance and reliance from
Thai consumers.
It composes of mix vegetable and fruit, fruit juice, tea and coffee.
Innovative Production Technology, the company developed its production

quality by starting to run high efficient and standardized factory in Nakhon
Pathom.
It has been promotion for attract customer in product.
This company has increase new package for expand to new customer.
31
-
It has certifications of world recognized standards in safety and quality of

food: HACCP, SQF 2000 and GMP.
Disadvantage
-
It has more competitors in market.
It set priced as standard which are difficult to negotiate product of supplier.
The forth UFC is the brand that know well more than 30 years. It has
cost register 15 million. This product sell both inbound and outbound.
They are develop the tool, machine, personnel, and quality system and
get certified standards which is acceptable both inbound and outbound
such as GMP, HACCP, ISO9001:2000, BRC and IFS. It can make
customer more reliable in product.
Advantage
-
UFC is the brand that knows well more than 30 years which it can make
customer more reliable in product.
UFC is processor and packer of canned fruits, canned vegetables and fruit
juice.
This product sell both inbound and outbound.
They were accepted both inbound and outbound such as GMP, HACCP, and
ISO9001:2000, BRC and IFS.
It has the most promotion such as advertise, magazine, website and etc. which
are attract to customer.
Disadvantage
-
The company has not produced the herbs drink which they are emphasized
more fruit juice.
They have more competitors in market such as Tipco, Malee, Unif, and etc.
It set priced as standard which are difficult to negotiate product of supplier.
It has many produced the product that imperative to failures of the product .
32
The last one, Doikham establish on 1972. It has more product

from vegetable and fruit. Its develop machine, package to
more modern and expand the market within country to
continue.
Advantage
-
Doikham is the Royal Project Foundation for help hill tribe people has
occupation.
Its developed machine, package to more modern and expands the market
within country to continue.
Doikham received certification standard that there are ISO 9001:2000

,HACCP GMP.
It has product to selling in the form of powder and water that selling
as convenience stores and department stores.
Disadvantage
-
Nowadays, herbal drink has many brand so, customer has many choice.
Some customer may be unknown in this product. For example, teenager will
be most popular are soft drinks.
Indirect competitors
They are competitor in Chaingmai.
Chiang Mai M.T. Foods Co., Ltd.,
Product Name: herbal drink

Product Category: Food and beverage
Product Sub-Category: herbal drink
Brand: Mae Kan
Address: Chiang Mai M.T. Foods Co., Ltd., 109/2 Moo16 Phapai Tambon,
SansaiAmpour, Chiang Mai province 50210
33
Mai M T Foods Co., Ltd. They are specializing on Thai food preservation technology,
combined with a sterile a stereo and a slice of dried extract moisture. This gives them
the potential to produce Thai food can. Keep the car longer without refrigeration. And
now we have manufactured various products as follows.
1. Khanom Thai canned ready to eat, packed in a sterile bag, through the slice, such as
Sterling Eegrdong longan juice.
2. Finished with Thai herbal drinks packaged in sterile envelopes. Through Sterling
scales such as water, sugar baby.
3. Vegetable soup pepper dried herbs with dehydrated. Moisture contained in the
envelope, such as garlic and dried.
Advantage:
-This manufacture produces various food and beverage which customers have many
choices.
-They have specialized on Thai food preservation technology.
-Their product can keep the car longer without refrigeration.
Disadvantage:
- They dont produce the product directly which may be mistake.
Mocktail & Spa Drink @ food decor

Food & Dcor Organizer Chiang Mai serve Mocktail & Spa Drink. They already
distribute to their customers everywhere in Chiang Mai. They emphasized about
flavor, quality, and color of every beverage to ensure that Mocktail & Spa Drink our
part to make your special occasion more memorable whether it is a party, product
launch, seminar, wedding party for you and who love health.
Menu of Mocktail & Spa Drink such as Thai Herb Juice, Frappe, Thai Herb Blend /
Mixed Vegetable Blend / Mixed Fruit Blend, etc.
Advantage:
-This company has various products.
-They get organize events, wedding, and party for health lover.
34
Disadvantage:
-More expensive
-The most product not herbal drink.
Sweet-Tree fruit juice
Vegetable juice and fruit juice is fresh everyday.
Address: 5 Hudsadisevee Changpuek Road, Ampour
Meung, Chiang Mai province.
This company is produce vegetable juice and fruit
juice that fresh everyday which it isnt fill preservative, color, and smell. These fruit
juice have many types are Saowarot, Asiatic, Matum, lemon grass, ginger, carrot,
tamarind, Makampom, Mafuang and other regular seasonal sales to restaurants, hotel,
school, and etc. Sweet-Tree fruit juice located in town of Chiang mai and it sells both
retail and wholesale. They have delivery.
Intra herbal drink
Herbal drinks have 23 types that distill from Canada
Address: 165 Moo 4 Huaisai, Ampour Maerim, Chaing mai
province.
Intra is fruit juice for healthy from Canada. These herbal drink
treatment about pressure, allergy, and etc. The main components are
grape juice mixed with pear as 36% of fruit juice concentrate.
Extracts from the flora, such as beans, Alpha Alpha Aloe.
35
Other Competitor
Many beverage that can solve the thirsty such as Coke, Pepshi soft drink every brand,
all the coffee shop, ice black coffee, black tea, etc. Although these product have target
market different from our business but it has same qualify is can solve the thirsty to
customer. So it has the chance that customer divert to consume these product and in
the contrast our product can also attractive these customer because our product have
more benefit to health than other products.
Customer analysis
Good health is something that everyone wishes. Nowadays, the most Thai
people are more interested in health care. Therefore, we focus on the customers who
interested in health care.
Our company divided the customer into two groups; the first group is working
people who are between 25-50 years old. This group who prefer herbal drink and want
take care about their health. The second group is people who want control weighs
which the most customers in this group are teens take care about their shape to make
them good looking. The most customers will buy at department stores, refreshment
stores, and retail shop. However, the customer also consume the product at
hotel/resort that concern about health and hospital. Our products are herbal drink that
delicious as natural tastes which have value and benefit to health. Our product help to
support healthy and preserve the balance of body, it can help to control working body
system. It also cures many diseases as well. In addition, herbal drink is suitable for
people who want to control weigh as well because it does not contain that causing the
obesity such as fat and cholesterol. However, some herbs that help to control fat from
meat consumption; it also can make body system have working efficiency.
Furthermore, our target will emphasize customer that stay North of Thailand zones;
due to our company located at Chiang Mai which can easy to distribution and take
care our customer. So, when we have good relationship to customer and know about
demand of customer then we will get more the profit.
36
Competitive Analysis
Rivalry Among Current Competitors

Herbal drink market is the popular in now. Many big company more play attention
and begin launch the new product to market such as UFC launch the tomato juice
100%, Malee launch veggee V9 mix fruit and vegetable 100%, Tipco launch Neger
Up fruit juice and Unif launch unif I firm. However, it has less number of competitors
in the herbal drink market when compare the demand of market it affect to current
competition not quite severe.
Threat of New Entrance

Because of herbal drink business has barrier to entry rather low. Moreover, trend of
herbal drink is increase in now so its inspire for new competitor who want to entry
the herbal drink market. So it more possible to has new competitor entry the herbal
drink market because of money for investment not more if raw material grow oneself
such as herbal, fruit and vegetable that can grow general area. Beside, it can also
reduce the cost of raw material.
Threat of Substitute Products or Services

The product is the substitute product of herbal drink is products which help to solve
thirsty and maintain health. Nowadays, we can classify to fruit and vegetable juice,
soup, mineral, and beverage that mix with vitamin. In the same time other product
that has similar qualify such as soft drink. Although these product have main target
group different from us but it has the same qualify such as help to solve the thirsty to
customer. Therefore it has opportunity that customer will divert to consume those
produce. Moreover, if those substitute products have low price, can also help to solve
the thirsty and convenience to buying. These things may the customer decide to buy
those substitute products.
In the contrast our product can also attract customer
because it has qualify for direct to maintain health.
37
Bargaining Power of Supplier
Because of now, raw materials that use to make the herbal drink are cheap and easy to
find in the market. It has various suppliers. Therefore, its affect to suppliers of herbal
drinks have high bargaining power. In the contrast, it affect to bargaining power of
raw materials suppliers have decrease.
Bargaining Power of Customer

Because of herbal drink product has not more and popular trend of herbal drink
product in current can make customer who want to drink have low bargaining power.
In the same time when consider in term of many substitute product that similar in
term of products quality and service it can make customer choose to change brand or
customer has low switching cost so it affect to bargaining power of buying has high.
38
STP Analysis
Segmentation
Demographic segmentation: Our group refers to population in Chiang mai in 2009.
We divide into 2 groups that are men and women. The groups of men are 797,521 and
women are 835,027. All these people are 1,632,548. We will show the average men
and women into the pie chart follow these;
Figure 3.1 Population in chiang Mai 2009

Psychological segmentation: Life style, it is about people who love to take care
themselves and play attention to maintain health.
Behavior segmentation: we can divide into four kinds. The first one, they like
strange product, different taste from general taste of herbal drink. The second they
think of taste, it the group that like taste of herbal drink and it the first factor for
consider when choose to consume the herbal drink. The third, its the healthy group.
They love to maintain their health and focus benefit after they consume. The last one,
its the brand loyalty customer.
39
Target Market
Our target market divided two groups; the first group is people who love to
take care themselves. Normally, those people always take care their health because
when they think herbal juice can help to cure their disease or something that wrong
inside their health. So, herbs are main target that can takes care their health. This
group decided to be consumed as herbal beverages is the major. The second group is
customer group who concerns about control weigh. In term of control weigh usually
drinking herb because herb is useful for burning fat, which directly benefit people
who want to lose weight. The herb is currently being applied in many years a model
for weight control. The most customer stayed at north of Thailand. The most of target
group are concern about healthy and who know benefit of herbs for good health,
cheap price but more quality.
In conclusion, the both groups of customers, which have the same purpose to
get healthy. So, we choose them to be the main target for our products. If we can be in
them, our product will be popular and easy to develop our products to satisfy
customers. In addition to, directly to the customers demand.
40
Position
High quality product
Herbal plus
Premium
Cheap
Poor quality product
Good healthy with Herbal plus we encourage customer to have well healthy.
Position the product of the Herbal plus shop. Our company select to precede strategy
by create differentiation to the product (Product Differentiation). Focus on consumer
appreciates to different of the product in the shop and the product that sell at the
market. By posit the product follow benefit and value. Our company try to create
consumer acknowledge about benefit of the product drinking from the shop. It is
produce by raw material that growing by myself. Position of the product is high
quality and medium price that everybody can buy it.
Our company hasnt a big competitor in Doi sket district. It has some a little
competitor such as household. Environment around our company are good and easy to
access to company when customer want to buy our product because of our company
located near the road side.
41
Marketing Mix Strategy

Marketing mix is the tools to assist the company in pursuing the customer to
meet company objectives. Before offer anything to customer, the company has to be
carefully managed and controlled. The most importance thing is the company has to
define the target group and meet their need. The marketing mix is apart of the
organizations planning process and including with analyzing of 4Ps:
1. Product: The core product of our company is herbal juice that made from ginger
juice, lemongrass juice, aloe juice, Roselle juice and Asiatic Pennywort juice. The
company will buy raw material from local community and input it to the process for
become to herbal juice. Our product will open to institute of government to checking a
quality of product and raw material for guarantee quality of our product.
2. Price: It depends on a standard price of the market that set from average of herbal
drink market but our company will adjust price in appropriate level to customer and
also think a price by following factor; cost of raw material and cost of production, sale
price product of competitors and primary profit rate from product. So, everyone can
buy our product especially people in Chiang Mai and also local people too.
3. Place: The company use contribution channel to distribute product to customer. Our
company will distribute product through wholesaler, retailer, advertising, internet (sale
online) and word of mouth are also an important contribution channel.
4. Promotion: The company point out an important of customer healthy. We will

promote benefit of herb that can help our customer who buys our product get a good
health. We will promote these information thought television, internet website,
magazine, poster and brochure. Free test taste before buying is a one of promotion
that can attract customer to interest very well.
42
SWOT analysis
Strength
-Raw material can plant by ourselves or can buy from local community.
-Using local people labor to produce the product, nearing raw material resources, save
cost of transportation. It helps to reduce cost of production.
-Herbal plus made from natural raw material without toxin. It made from several
herbs that have good benefit for health.
-Have more product choices to selection. We have many taste.
Weakness
-Our brand is a new brand, customer still unknown in our brand.
-Using many cost of advertising.
-Still dont accept guarantee from Food and Drug Administration.
Opportunity
-Our product conforms to customer need and wants in the present. Today, they attend
to interesting in healthy product.
-We easy to find raw material (herbs) in every area of Chiang Mai and Thailand.
-The Government has policy to encourage healthy of people in country and also
encourage local product in local community.
Threat
-Heavy competitors both old and new competitor that enter to this business market.
-Most of customer has their own loyalty. They dont want to get new product.
-Economic situation.
43
Sale Forecast
Our Squash machineseparate water and scraps can contain raw material 200 kg./Hr.
One kilogram we can average contain 10 bottle both 250 ml and 500 ml. So 200 kg
we can contain 2000 bottle. We have 5 squash machine. Therefore, we can product
10,000 bottle/time. Each day we can produce 4 times because each process takes more
time to produce. If we produce more than 4 time per day not enough the time.
Therefore, each day we can produce 40,000 bottles (10,0004) and each month we
can produce 1,200,000 bottles (40,00030).
We plan to promote three month are April, August and December. So month that
promote percent of sale will increase because we will promote buy two pack get one
pack free. It can make remain product in stock sold out.
From I forecast, I use data base of Chiang Mai is base of forecast. We use income of
populations in Chiang Mai-average 81,830.71 baht per person per year and target
market group- hotel 223 places, restaurant , hospital 7 places, supermarket 4 places to
forecast of sale.
We can produce 40,000 bottles per day.

So 40,000 bottle X 30 day
1,200,000
First three month we produce forecast only 40% of

whole productivity because it trial market and
consumer not too much because it not well known.
480,000
Sale forecast in the first month or in 6 th month

80% because our product is a new product surely
customer want to taste.
384,000
We divided size of product that product in equally.
192,000
Price of small size 250 ml/9 baht
1,728,000
Price of medium size 500 ml/17 baht.
3,264,000
Table 3.2 sale forecast in year 1
44
Sale forecast in each month
Produce
Sale
7 th month
40%
85%
8 th month
40%
95%
9 th month
50%
95%
10 month
50%
90%
11 th month
55%
85%
12 th month
55%
80%
th
Table 3.2.1 sale forecast in year 1

Sale forecast in the first year.
Income
January
February
March
April
May
June
4,992,000
July
5,304,000
August
5,616,000
September
7,410,000
October
7,020,000
November
7,293,000
December
6,864,000
Total
44,499,000
45
Second year, produce increase 5-15 % of last year because we have to expand channel of
market.
Produce
Sale
1 th month
60%
85%
2 th month
60%
90%
3 th month
60%
90%
4 th month
65%
95%
5 th month
65%
90%
6 th month
65%
87%
7 th month
65%
85%
8 th month
67%
90%
9 month
67%
87%
10 th month
68%
85%
11 th month
68%
85%
12 th month
69%
92%
th

Sale forecast in the second year.
January
Income
7,956,000
February
8,424,000
March
8,424,000
April
9,633,000
May
9,126,000
June
8,821,800
July
8,619,000
August
9,406,800
September
9,093,240
October
9,016,800
November
9,016,800
December
9,902,880
Total
107,440,320
46
Third year, produce forecast increase 5-10% of last year because we will increase send the
product to exist market group and expand market.
Produce
Sale
1 th month
70%
87%
2 th month
70%
90%
3 th month
70%
90%
4 th month
75%
95%
5 th month
75%
90%
6 th month
75%
87%
7 th month
75%
87%
8 th month
77%
90%
9 th month
77%
87%
10 th month
77%
87%
11 th month
78%
90%
12 th month
78%
95%

Sale forecast in the third year.
January
Income
9,500,400
February
9,828,000
March
9,828,000
April
11,115,000
May
10,530,000
June
10,179,000
July
10,179,000
August
10,810,800
September
10,450,440
October
10,450,440
November
10,951,200
December
11,559,600
Total
125,381,880
47
Forth year, produce forecast 5-10% last year because we have new group of market or
retailer.
Produce
Sale
1 th month
80%
85%
2 th month
80%
87%
3 th month
80%
87%
4 th month
85%
90%
5 th month
85%
88%
6 th month
85%
87%
7 th month
85%
87%
8 th month
87%
90%
9 th month
87%
88%
10 th month
87%
88%
11 th month
88%
89%
12 th month
88%
95%

Sale forecast in the forth year.
January
Income
10,608,000
February
10,857,600
March
10,857,600
April
11,934,000
May
11,668,800
June
11,536,200
July
11,536,200
August
12,214,800
September
11,943,360
October
11,943,360
November
12,217,920
December
13,041,600
Total
140,359,440
48
Fifth year, produce forecast increase 3-7% of last year because we increase have new group
of market or retailer and in this year we have more consumer because every consumer well
know about our product.
Produce
Sale
1 th month
90%
87%
2 th month
90%
87%
3 th month
90%
87%
4 th month
93%
90%
5 th month
93%
88%
6 th month
95%
88%
7 th month
95%
89%
8 th month
95%
95%
9 th month
96%
90%
10 th month
96%
89%
11 th month
96%
89%
12 th month
97%
95%

Sale forecast in the fifth year.
January
Income
12,214,800
February
12,214,800
March
12,214,800
April
13,057,200
May
12,767,040
June
13,041,600
July
13,189,800
August
14,079,000
September
13,478,400
October
13,328,640
November
13,328,640
December
14,375,400
Total
157,290,120
49
Sale Forecast
180
160
Bath (million)
140
120
100
80
60
40
20
0
0
Year
Figure 3.2 Sale forecast in each year.
Marketing Expense
Rate of our advertisement:

- Magazine; Inside full colour 36,000 baht per month
- Television; 9 channel in news period 50,000 per minute
- Website; Position at middle of first page 15,000 baht
- Poster; 119 square meter, we want 3 square meter equal 357 baht and we want 30
poster equal 10,710 baht
Total: 111,170 baht
50
Promote: Cost of promote in each month 20,000 baht
We have promote three months every year; April because it is a summer. In summer
everybody drink more water because the climate so warm. August because it is a rain
season computation our product may be decrease. December because some of product
that remain in stock nearly expire. In these months that have a promote we will sale
by buy 2 pack get free one pack for product that remain in stock sold out. And begin
production on next year.
Commission: 15,000 for salesman that can sale follow the goal that company set.
Commission will give in month has promote and we begin play commission in second
year.
In first month or 6 th month of first year after open the factory we spend money about
baht 111,710 in this month for advertise and promote our product. Next month until
end of this year spend money about 101,000 because we deduct price of poster.
Marketing Expense first year

Month Marketing Expense(Baht)
1
2
3
4
5
6
111,710
7
101,000
8
121,000
9
101,000
10
101,000
11
101,000
12
121,000
Total
757,710
Table 3.7 marketing expense in year 1
51
Marketing Expense second year

In second year, cost of advertisement remain 101,000

1
101,000
2
101,000
3
101,000
4
136,000
5
101,000
6
101,000
7
101,000
8
136,000
9
101,000
10
101,000
11
101,000
12
136,000
Total
1,317,000
Marketing Expense third year

We reduce cost of magazine and website; magazine advertisement Inside Haft Colour
about 20,000 baht and website, position middle upper of first page of website about
10,000 baht. Because some consumer well know about our product.

1
80,000
2
80,000
3
80,000
4
115,000
5
80,000
6
80,000
7
80,000
8
115,000
9
80,000
10
80,000
11
80,000
12
115,000
Total
1,065,000
52
Marketing Expense forth year
In the forth and fifth month, we will reduce cost of advertisement on website; it about
4,500 baht because we have many consumer and every consumer well know our
product.
1
74,500
2
74,500
3
74,500
4
109,500
5
74,500
6
74,500
7
74,500
8
109,500
9
74,500
10
74,500
11
74,500
12
109,500
Total
999,000
Marketing Expense fifth year

1
74,500
2
74,500
3
74,500
4
109,500
5
74,500
6
74,500
7
74,500
8
109,500
9
74,500
10
74,500
11
74,500
12
109,500
Total
999,000
53
Chapter 4
Technical Feasibility Study
54
Product Characteristics
Initial of investment our company will produce herbal juice 5 kinds are ginger juice,
lemongrass juice, aloe juice, Roselle juice and Asiatic Pennywort juice.
Ginger juice
Ingredient:
- Fresh ginger
- Syrup
- Water
Benefit
Nutrition: There are more nutrients that have benefit to health such as calcium
maintain bone and tooth and there is betacarotene for help to resist cancer.
Value of drug: cure flatulence, reduce phlegm, cure feel queasy symptom, vomit and
carsick. It helps digest and resist occur scar in stomach.
Roselle juice
Ingredient:
- Fresh Roselle
- Syrup
- Water
- Salt
Benefit
Nutrition: give high vitamin A, eye care, and help maintain bone and tooth
Vale of drug: excreted urine, reduce blood pressure, reduce thirsty symptom.
55
Asiatic Pennywort juice

Ingredient:
- Asiatic pennywort
- Syrup
- Water
Benefit:
Nutrition: give high vitamin A and calcium. Moreover, it has vitamin B1.
Vale of drug: cure bruise within body, cure aphthous ulcer, thirsty, reduce migraine
symptom, maintain brain and heart, cure exhausted and reduce blood pressure if drink
every day only one week it can make high blood pressure decrease. Moreover, it can
destroy cancer cell, reduce pain and cure scar in stomach and intestine. It can help
flow of blood and excreted urine.
Aloe juice
Ingredient:
- Aloe
- Pandan
- Syrup
- Water
Benefit:
Nutrition: heal a wound and stimulate the growth of cells around the wound.
Vale of drug: maintain health that exhausted and helps the excretory system to
normal.
56
Lemongrass juice
Ingredient:
- Lemongrass
-
Syrup
- Water
Benefit:
Nutrition: Has vitamin A help maintain eyes and calcium and phosphorus help
maintain bone and tooth.
Vale of drug: cure flatulence, colic, excreted urine, reduce the toxicity of unknown
substances in the body and reduce high blood pressure.
57
Specification, Feathers, Dimension, Life time etc.
Our product are contain in the bottle that made from high quality plastic. The style of
bottle is cylinder. We use twist lid to close the bottle. Size of bottle has 250 ml and
500 ml. The bottle has transparent color and a logo show middle of bottle and has
picture herbal that is raw material that uses to produce. Each herbal juice that contain
into bottle is different of color such as ginger juice is yellow color, Roselle juice is
red color, Asiatic Pennywort juice is dark green, Aloe juice and Lemongrass juice are
bright green. These colors come from raw material.
The age of herbal juice about one year.
Figure 4.1 package of product
58
Production process
1. Choose raw material to produce. It should fresh and new for get good taste of
herbal juice.
Aloe
Roselle
Lemongrass
Asiatic Pennywort
Ginger
2. Bring those of herb to wash then bring herb that clean already to grind
machine (wet/dry) for cut and squash herb.
3. Then bring herb that grind already to Squash machineseparate water and
scraps and then fill the water and Syrup.
4. When separate water and scraps of herbal already. We will get herbal juice
and then bring herbal juice into pasteurizer machine with 60 degree Celsius for
sterilize. Pasteurization must keep in temperature 4-6 degree Celsius and can
exist 15-30 days.
5. Then contain into bottle with contain machine and close lid by close lid
machine and keep it in freezer
59
Location
Figure 4.2 location

Herbal plus company is located at Doi saket, Chiang Mai. Its basin and wide area.
Whole area is about 4 rai, 6,000 baht/square wah. We buy 1 rai = 2,400,000 baht
because our company is medium size. The reason that we choose establish company
at Doi saket, Chiang Mai because this area appropriate for build the factory and
around area has basin and many tree. Moreover it not near village so it isnt disturbs
those villages. Beside, it not far from city and convenient transportation because it
near superhighway and convenient for retailer who come to direct receive product at
our factory. In addition, Chiang Mai has more hospital, restaurant, hotel and shop.
There are retailers that receive our product.
60
Facility Layout
Figure 4.3 our company
61
Our factory layout is about herbal drink that our factory has 2nd floors by first floor is
production that we will begin from factory entrance when turns right you can see
reception room. In reception room include with fan for employee and counter that
welcome to customer, contact about order herbal drink and give information to
customer. Then reception room have sofa for customer seat to wait service and cold
water machine for convenience of customer. When turn left, you can see machine for
produce herbal drink as follow;
No.1 Grind machine (wet/dry) has 5 machines.
No.2 Squash machineseparate water and scraps has 5 machines.
No.3 Pasteurizer Machine has 3 Tanks.
No.4 Contain machine has 3 machines.
No.5 Close lid machine has 4 machines.
No.6 Freezer stainless 4 doors no frost system has 3 machines.
Moreover, first floor has toilets which separate are the men and the women for
employee and customer.
Figure 4.6 Map within company the first floor
62
When you walking up the 2nd floor stairs, you go to straight and turn left then you can
see the door of office. Inside the office include air condition and it separate room, as
follow;
No.1 Executive room has executive table office, file cabinet, air condition, computer,
telephone.
No.2 Finance room has computer, telephone, computer desk and chair
No.3 Document room has computer, telephone, computer desk and chair, Fax,
photocopier, and file cabinet.
No.4 Meeting room have conference table.
No.5Marketing room has computer, telephone, computer desk and chair.
And has toilet for manager and employee between meeting room and marketing room.
Figure 4.7 Map within company the first floor
63
Machine/Tools/Equipments
Squash machineseparate water and scraps
Feature:
1. Structure made with stainless steel
2. Dimension 45x125x126 cm.
(WxLxH)
3. Power by motor 3 horsepower
4. Capacity 200 kgs./Hr.
Price 35,471 Bath
Grind machine (wet/dry)

Feature:
1. Structure is stainless steel
2. electricity 220 volt
3. Capacity 30-50 kgs./Hr.
Price 20,000-50,000 bath
Pasteurizer Machine 3 Tanks
Its the pasteurizer machine sterilize vegetable,

fruit and herbal juice. Temperature when sterilize
80-95 degree Celsius and there is capacity 100-150
liter/hr.
Price 50,000 bath
64
Close lid machine
Its the machine that suite with lock for protect seep.
It can lock both plastic and glass bottle.
Feature:
1.MODEL JGS 880
2. Electricity 220 V 50 Hz
3. Capacity 800 bottle/Hr
4. size of lid until 20-35 millimeter
5.Dimension 605x300x970 ml. (WxLxH)
Price 35,000 Bath
Freezer stainless 4 doors no frost system

Feature:
1. made from stainless
2. voltage 220-240 Volt
3. Electricity 2.2 ampere
4. frequency 50 Hz
5. Dimension 1200x750x2100 ml. (WxLxH)
6. temperature 0-10 degree Celsius
Price 48,000 bath
65
Contain machine
Feature:
1.
Capacity 200-1000 CC
2.
6 head contain
3.
speed of contain 24
bottle/minute (at 500 CC) and
34500 bottle per day
4.
voltage 380 Volt 400 Watt
5.
Dimension 750x750x2500 ml. (WxLxH)
6.
Made from stainless
Price 45,000 bath
Furniture and electronic equipment in Herbal plus factory

Those furniture and electronic equipment in herbal plus factory necessary for use to
both office and factory, we choose those furniture and electronic equipment that not
expensive but have quality.
Computer Desk
Price: 1,300.-
Chair
Price: 950.-
66
File cabinet
Price: 2,900.-
Telephone
Price: 890.-
Fax and Telephone

Price: 1,900.-
Clod water machine

Price: 4,300.-
Fan
Price: 1,030.-
67
Air condition
Brand: DAIKIN FTE-SERIES
Price: 8900 BTU is 15,000.-
Air condition
Brand: DAIKIN FTE-SERIES
Price: 17750 BTU is 26,900.-
Executive table office

Price: 6,900.-
Conference table
Price: 12,500.-
Sofa
Price: 4,900.-
Counter office
Price: 24,156.-
68
Photocopier
Price: 24,900.-
Printer
Price: 2,060.-
Door roll
Price: about 2,000.-
Toilet bowl
Price: 1,549.-
Mirror
Price: 110.-
69
Washbasin
Price: 386.-
Fire extinguisher
Price: 710.-
Computer
Price: 6,390.-
Pickup
Price: 632,000.-
70
Cost of investment
Pre cost of investment
Equipment in Herbal plus factory
No
Product
Price
Number
Total
1.
Squash machineseparate water and

scraps
35,471.-
177,355
2.
Grind machine
(wet/dry)
40,000.-
200,000
3.
Pasteurizer Machine 3
Tanks
50,000.-
250,000
4.
Close lid machine
35,000.-
175,000
71
5.
6.
Freezer stainless 4 doors 48,000.no frost system
10
480,000
45,000.-
225,000
Contain machine
Total
Table 4.1 cost of investment
1,507,355
72
Furniture in herbal plus factory
No
Product
Price
Number
Total
1.
Chair
950.-
5,700
2.
Computer Desk
1,300.-
7,800
3.
File cabinet
2,900.-
11,600
4.
Executive table
office
6,900.-
6,900
5.
Conference table
12,500.-
12,500
73
6.
Sofa
4,900.-
4,900
7.
Counter office
24,156.-
24,156
8.
Toilet bowl
1,549.-
4,647
9.
Mirror
110.-
330
10.
Washbasin
386.
1,158
Total
79,691
Table 4.2 cost of furniture
74
Electronic equipment in herbal plus factory

No
Product
Price
Number
Total
1.
Telephone
890.-
3,560
2.
Fax and telephone
1,900.-
1,900
3.
Cold water
machine
4,300.-
8,600
4.
Fan
1030.-
1,030
75
5.
Air condition
15,000.-
15,000
6.
Air condition
26,900.-
26,900
7.
Photocopier
24,900.-
24,900
8.
Printer
2,060.-
2,060
9.
Computer
6,390.-
44,730
Total
Table 4.3 cost of Electronic
128,680
76
Other equipment in herbal plus factory

No.
Product
Price
Number
Total
1.
Fire extinguisher
1,200.-
4,800
2.
Door roll
2,000.-
2,000
3.
Pickup
632,000.-
1,264,000
Total
Table 4.4 cost of other equipment
1,270,800
77
Investment cost
Investment
Cost
1. Land
2,400,000
2. building
2,000,000
3. Equipment in herbal plus
1,507,355
4. Furniture
79,691
5. Electronic equipment
128,680
6. Other equipment
1,270,800
Total
7,386,526
Table 4.5 investment cost

Loan
12,000,000
0.12
Cash loan
interest rate
1,440,000
interest per year
13,440,000
Total
Repayment (year)
Period
January 31, 2009
Febuary 28, 2009
March 31, 2009
April 30, 2009
May 31, 2009
June 30, 2009
July 31, 2009
August 31, 2009
September 30, 2009
October 31, 2009
November 30, 2009
December 31, 2009
January 31, 2010
Febuary 28, 2010
March 31, 2010
April 30, 2010
May 31, 2010
June 30, 2010
July 31, 2010
August 31, 2010
Beginning
balance
13,440,000
13,216,000
12,992,000
12,768,000
12,544,000
12,320,000
12,096,000
11,872,000
11,648,000
11,424,000
11,200,000
10,976,000
10,752,000
10,528,000
10,304,000
10,080,000
9,856,000
9,632,000
9,408,000
9,184,000
Interest expense
(Dr.)+
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
Note payable
(Dr.)=
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
Cash (Cr.)
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
Ending Balance
13,216,000
12,992,000
12,768,000
12,544,000
12,320,000
12,096,000
11,872,000
11,648,000
11,424,000
11,200,000
10,976,000
10,752,000
10,528,000
10,304,000
10,080,000
9,856,000
9,632,000
9,408,000
9,184,000
8,960,000
78
September 30, 2010
October 31, 2010
November 30, 2010
December 31, 2010
January 31, 2011
Febuary 28, 2011
March 31, 2011
April 30, 2011
May 31, 2011
June 30, 2011
July 31, 2011
August 31, 2011
September 30, 2011
October 31, 2011
November 30, 2011
December 31, 2011
January 31, 2012
Febuary 28, 2012
March 31, 2012
April 30, 2012
May 31, 2012
June 30, 2012
July 31, 2012
August 31, 2012
September 30, 2012
October 31, 2012
November 30, 2012
December 31, 2012
January 31, 2013
Febuary 28, 2013
March 31, 2013
April 30, 2013
May 31, 2013
June 30, 2013
July 31, 2013
August 31, 2013
September 30, 2013
October 31, 2013
November 30, 2013
December 31, 2013
Table 4.6 loan
8,960,000
8,736,000
8,512,000
8,288,000
8,064,000
7,840,000
7,616,000
7,392,000
7,168,000
6,944,000
6,720,000
6,496,000
6,272,000
6,048,000
5,824,000
5,600,000
5,376,000
5,152,000
4,928,000
4,704,000
4,480,000
4,256,000
4,032,000
3,808,000
3,584,000
3,360,000
3,136,000
2,912,000
2,688,000
2,464,000
2,240,000
2,016,000
1,792,000
1,568,000
1,344,000
1,120,000
896,000
672,000
448,000
224,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
24,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
224,000
8,736,000
8,512,000
8,288,000
8,064,000
7,840,000
7,616,000
7,392,000
7,168,000
6,944,000
6,720,000
6,496,000
6,272,000
6,048,000
5,824,000
5,600,000
5,376,000
5,152,000
4,928,000
4,704,000
4,480,000
4,256,000
4,032,000
3,808,000
3,584,000
3,360,000
3,136,000
2,912,000
2,688,000
2,464,000
2,240,000
2,016,000
1,792,000
1,568,000
1,344,000
1,120,000
896,000
672,000
448,000
224,000
0
79
Depreciation
No
1
2
3
4
5
6
7
List
Price per
1 unit
Land
Building
Squash machine
Grind machine
(wet/dry)
Pasteurizer
Machine 3 Tanks
Close lid machine
No. of unit
Price
Percent
35,471
40,000
5
5
2,400,000
2,000,000
177,355
200,000
32.49%
27.08
2.4%
2.7%
50,000
250,000
3.38%
35,000
175,000
2.37%
48,000
10
480,000
6.5%
45,000
225,000
3.04%
950
5,700
0.07%
Freezer stainless 4
doors no frost
system
Contain machine
Chair
10
Computer desk
1,300
7,800
0.1%
11
File cabinet
2,900
11,600
0.16%
12
6,900
6,900
0.09%
13
14
15
16
Executive table
office
Conference table
Sofa
Counter office
Toilet bowl
12,500
4,900
24,156
1,549
1
1
1
3
12,500
4,900
24,156
4,647
0.17%
0.07%
0.38%
0.06%
17
18
Mirror
Washbasin
110
386
3
3
330
1,158
0.004%
0.02%
19
20
21
22
23
24
25
26
27
Telephone
Fax and telephone
Cold water machine
Fan
Air condition
Air condition
Photocopier
Printer
Computer
890
1,900
4,300
1030
15,000
26,900
24,900
2,060
6,390
4
1
2
1
1
1
1
1
7
3,560
1,900
8,600
1,030
15,000
26,900
24,900
2,060
44,730
0.05%
0.03%
0.12%
0.01%
0.2%
0.37%
0.34%
0.03%
0.6%
28
Fire extinguisher
1,200
4,800
0.06%
29
30
Door roll
Pickup
2,000
632,000
1
2
2,000
1,264,000
7,386,526
0.03%
17.11%
100%
Total
Table 4.7 depreciation
80
Depreciation rate
0.2
life time (month)
60
Salvage value
The First year
investment
Building
0.05
Cost
2,000,000
Squash machine
177,355
Grind machine
(wet/dry)
Pasteurizer Machine
3 Tanks
Close lid machine
200,000
Freezer stainless 4
doors no frost
system
Contain machine
480,000
250,000
175,000
225,000
January
Febuary
March
May
April
June
July
August
September
October
November
December
Total
Salvage value
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
380,000
100,000
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
33,697
8,868
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
38,000
10,000
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
47,500
12,500
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
33,250
8,750
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
91,200
24,000
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
42,750
11,250
Chair
5,700
90
90
90
90
90
90
90
90
90
90
90
90
1,083
285
Computer desk
7,800
124
124
124
124
124
124
124
124
124
124
124
124
1,482
390
11,600
184
184
184
184
184
184
184
184
184
184
184
184
2,204
580
109
109
109
109
109
109
109
109
109
109
109
109
1,311
345
198
198
198
198
198
198
198
198
198
198
198
198
2,375
625
File cabinet
Executive table
office
Conference table
Sofa
Counter office
Toilet bowl
6,900
12,500
4,900
78
78
78
78
78
78
78
78
78
78
78
78
931
245
24,156
382
382
382
382
382
382
382
382
382
382
382
382
4,590
1,208
4,647
74
74
74
74
74
74
74
74
74
74
74
74
883
232
17
330
63
Washbasin
1,158
18
18
18
18
18
18
18
18
18
18
18
18
220
58
Telephone
3,560
56
56
56
56
56
56
56
56
56
56
56
56
676
178
Fax and telephone
1,900
30
30
30
30
30
30
30
30
30
30
30
30
361
95
Cold water machine
8,600
136
136
136
136
136
136
136
136
136
136
136
136
1,634
430
52
Mirror
1,030
16
16
16
16
16
16
16
16
16
16
16
16
196
Air condition
15,000
238
238
238
238
238
238
238
238
238
238
238
238
2,850
750
Air condition
26,900
426
426
426
426
426
426
426
426
426
426
426
426
5,111
1,345
Fan
81
24,900
394
394
394
394
394
394
394
394
394
394
394
394
4,731
2,060
33
33
33
33
33
33
33
33
33
33
33
33
391
103
44,730
708
708
708
708
708
708
708
708
708
708
708
708
8,499
2,237
Fire extinguisher
4,800
76
76
76
76
76
76
76
76
76
76
76
76
912
240
Door roll
2,000
32
32
32
32
32
32
32
32
32
32
32
32
380
100
Pickup
1,264,000
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
240,160
63,200
DepreciationEquipment
4,986,526
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
947,440
249,326
November
December
Photocopier
Printer
Computer
The second year

Investment
Building
Cost
2,000,000
Squash machine
177,355
Grind machine
(wet/dry)
Pasteurizer Machine
3 Tanks
Close lid machine
200,000
Freezer stainless 4
doors no frost
system
480,000
Contain machine
225,000
250,000
175,000
Chair
5,700
Computer desk
7,800
File cabinet
Executive table
office
Conference table
Sofa
Counter office
Toilet bowl
11,600
6,900
12,500
4,900
24,156
4,647
January
Febuary
March
May
April
June
July
August
September
October
Total
1,245
Accumulate
Depreciation 2
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
380,000
760,000
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
33,697
67,395
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
38,000
76,000
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
47,500
95,000
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
33,250
66,500
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
91,200
182,400
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
42,750
85,500
90
90
90
90
90
90
90
90
90
90
90
90
1,083
2,166
124
124
124
124
124
124
124
124
124
124
124
124
1,482
2,964
184
184
184
184
184
184
184
184
184
184
184
184
2,204
4,408
109
109
109
109
109
109
109
109
109
109
109
109
1,311
2,622
198
198
198
198
198
198
198
198
198
198
198
198
2,375
4,750
78
78
78
78
78
78
78
78
78
78
78
78
931
1,862
382
382
382
382
382
382
382
382
382
382
382
382
4,590
9,179
74
74
74
74
74
74
74
74
74
74
74
74
883
1,766
82
Mirror
330
Washbasin
1,158
Telephone
3,560
Fax and telephone
1,900
Cold water machine
8,600
Fan
1,030
Air condition
15,000
Air condition
26,900
Photocopier
24,900
Printer
Computer
2,060
44,730
Fire extinguisher
4,800
Door roll
2,000
Pickup
1,264,000
4,986,526
63
125
18
18
18
18
18
18
18
18
18
18
18
18
220
440
56
56
56
56
56
56
56
56
56
56
56
56
676
1,353
30
30
30
30
30
30
30
30
30
30
30
30
361
722
136
136
136
136
136
136
136
136
136
136
136
136
1,634
3,268
16
16
16
16
16
16
16
16
16
16
16
16
196
391
238
238
238
238
238
238
238
238
238
238
238
238
2,850
5,700
426
426
426
426
426
426
426
426
426
426
426
426
5,111
10,222
394
394
394
394
394
394
394
394
394
394
394
394
4,731
9,462
33
33
33
33
33
33
33
33
33
33
33
33
391
783
708
708
708
708
708
708
708
708
708
708
708
708
8,499
16,997
76
76
76
76
76
76
76
76
76
76
76
76
912
1,824
32
32
32
32
32
32
32
32
32
32
32
32
380
760
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
240,160
480,320
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
947,440
1,894,880
November
December
The third year

investment
Building
Cost
2,000,000
Squash machine
177,355
Grind machine
(wet/dry)
Pasteurizer Machine
3 Tanks
Close lid machine
200,000
Freezer stainless 4
doors no frost
system
480,000
250,000
175,000
January
Febuary
March
May
April
June
July
August
September
October
Total
Accumulate
Depreciation 3
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
380,000
1,140,000
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
33,697
101,092
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
38,000
114,000
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
47,500
142,500
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
33,250
99,750
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
91,200
273,600
83
Contain machine
225,000
Chair
5,700
Computer desk
7,800
File cabinet
Executive table
office
Conference table
Sofa
Counter office
Toilet bowl
Mirror
11,600
6,900
12,500
4,900
24,156
4,647
330
Washbasin
1,158
Telephone
3,560
Fax and telephone
1,900
Cold water machine
8,600
Fan
1,030
Air condition
15,000
Air condition
26,900
Photocopier
24,900
Printer
Computer
2,060
44,730
Fire extinguisher
4,800
Door roll
2,000
Pickup
1,264,000
4,986,526
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
42,750
128,250
90
90
90
90
90
90
90
90
90
90
90
90
1,083
3,249
124
124
124
124
124
124
124
124
124
124
124
124
1,482
4,446
184
184
184
184
184
184
184
184
184
184
184
184
2,204
6,612
109
109
109
109
109
109
109
109
109
109
109
109
1,311
3,933
198
198
198
198
198
198
198
198
198
198
198
198
2,375
7,125
78
78
78
78
78
78
78
78
78
78
78
78
931
2,793
382
382
382
382
382
382
382
382
382
382
382
382
4,590
13,769
74
74
74
74
74
74
74
74
74
74
74
74
883
2,649
63
188
18
18
18
18
18
18
18
18
18
18
18
18
220
660
56
56
56
56
56
56
56
56
56
56
56
56
676
2,029
30
30
30
30
30
30
30
30
30
30
30
30
361
1,083
136
136
136
136
136
136
136
136
136
136
136
136
1,634
4,902
16
16
16
16
16
16
16
16
16
16
16
16
196
587
238
238
238
238
238
238
238
238
238
238
238
238
2,850
8,550
426
426
426
426
426
426
426
426
426
426
426
426
5,111
15,333
394
394
394
394
394
394
394
394
394
394
394
394
4,731
14,193
33
33
33
33
33
33
33
33
33
33
33
33
391
1,174
708
708
708
708
708
708
708
708
708
708
708
708
8,499
25,496
76
76
76
76
76
76
76
76
76
76
76
76
912
2,736
32
32
32
32
32
32
32
32
32
32
32
32
380
1,140
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
240,160
720,480
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
947,440
2,842,320
84
The forth year

investment
Building
Cost
2,000,000
Squash machine
177,355
Grind machine
(wet/dry)
Pasteurizer Machine
3 Tanks
Close lid machine
200,000
Freezer stainless 4
doors no frost
system
480,000
Contain machine
225,000
250,000
175,000
Chair
5,700
Computer desk
7,800
File cabinet
Executive table
office
Conference table
Sofa
Counter office
Toilet bowl
Mirror
11,600
6,900
12,500
4,900
24,156
4,647
330
Washbasin
1,158
Telephone
3,560
Fax and telephone
1,900
Cold water machine
8,600
Fan
1,030
January
Febuary
March
May
April
June
July
August
September
October
November
December
Total
Accumulate
Depreciation 4
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
380,000
1,520,000
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
33,697
134,790
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
38,000
152,000
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
47,500
190,000
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
33,250
133,000
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
91,200
364,800
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
42,750
171,000
90
90
90
90
90
90
90
90
90
90
90
90
1,083
4,332
124
124
124
124
124
124
124
124
124
124
124
124
1,482
5,928
184
184
184
184
184
184
184
184
184
184
184
184
2,204
8,816
109
109
109
109
109
109
109
109
109
109
109
109
1,311
5,244
198
198
198
198
198
198
198
198
198
198
198
198
2,375
9,500
78
78
78
78
78
78
78
78
78
78
78
78
931
3,724
382
382
382
382
382
382
382
382
382
382
382
382
4,590
18,359
74
74
74
74
74
74
74
74
74
74
74
74
883
3,532
63
251
18
18
18
18
18
18
18
18
18
18
18
18
220
880
56
56
56
56
56
56
56
56
56
56
56
56
676
2,706
30
30
30
30
30
30
30
30
30
30
30
30
361
1,444
136
136
136
136
136
136
136
136
136
136
136
136
1,634
6,536
16
16
16
16
16
16
16
16
16
16
16
16
196
783
85
Air condition
15,000
Air condition
26,900
Photocopier
24,900
Printer
Computer
2,060
44,730
Fire extinguisher
4,800
Door roll
2,000
Pickup
1,264,000
4,986,526
238
238
238
238
238
238
238
238
238
238
238
238
2,850
11,400
426
426
426
426
426
426
426
426
426
426
426
426
5,111
20,444
394
394
394
394
394
394
394
394
394
394
394
394
4,731
18,924
33
33
33
33
33
33
33
33
33
33
33
33
391
1,566
708
708
708
708
708
708
708
708
708
708
708
708
8,499
33,995
76
76
76
76
76
76
76
76
76
76
76
76
912
3,648
32
32
32
32
32
32
32
32
32
32
32
32
380
1,520
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
240,160
960,640
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
947,440
3,789,760
November
December
The fifth year

investment
Building
Cost
2,000,000
Squash machine
177,355
Grind machine
(wet/dry)
Pasteurizer Machine
3 Tanks
Close lid machine
200,000
Freezer stainless 4
doors no frost
system
480,000
Contain machine
225,000
250,000
175,000
Chair
5,700
Computer desk
7,800
File cabinet
Executive table
11,600
6,900
January
Febuary
March
May
April
June
July
August
September
October
Total
Accumulate
Depreciation 5
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
31,667
380,000
1,900,000
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
2,808
33,697
168,487
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
38,000
190,000
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
3,958
47,500
237,500
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
2,771
33,250
166,250
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
7,600
91,200
456,000
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
3,563
42,750
213,750
90
90
90
90
90
90
90
90
90
90
90
90
1,083
5,415
124
124
124
124
124
124
124
124
124
124
124
124
1,482
7,410
184
184
184
184
184
184
184
184
184
184
184
184
2,204
11,020
109
109
109
109
109
109
109
109
109
109
109
109
1,311
6,555
86
office
Conference table
Sofa
Counter office
Toilet bowl
Mirror
12,500
4,900
24,156
4,647
330
Washbasin
1,158
Telephone
3,560
Fax and telephone
1,900
Cold water machine
8,600
Fan
1,030
Air condition
15,000
Air condition
26,900
Photocopier
24,900
Printer
Computer
2,060
44,730
Fire extinguisher
4,800
Door roll
2,000
Pickup
1,264,000
4,986,526
198
198
198
198
198
198
198
198
198
198
198
198
2,375
11,875
78
78
78
78
78
78
78
78
78
78
78
78
931
4,655
382
382
382
382
382
382
382
382
382
382
382
382
4,590
22,948
74
74
74
74
74
74
74
74
74
74
74
74
883
4,415
63
314
18
18
18
18
18
18
18
18
18
18
18
18
220
1,100
56
56
56
56
56
56
56
56
56
56
56
56
676
3,382
30
30
30
30
30
30
30
30
30
30
30
30
361
1,805
136
136
136
136
136
136
136
136
136
136
136
136
1,634
8,170
16
16
16
16
16
16
16
16
16
16
16
16
196
979
238
238
238
238
238
238
238
238
238
238
238
238
2,850
14,250
426
426
426
426
426
426
426
426
426
426
426
426
5,111
25,555
394
394
394
394
394
394
394
394
394
394
394
394
4,731
23,655
33
33
33
33
33
33
33
33
33
33
33
33
391
1,957
708
708
708
708
708
708
708
708
708
708
708
708
8,499
42,494
76
76
76
76
76
76
76
76
76
76
76
76
912
4,560
32
32
32
32
32
32
32
32
32
32
32
32
380
1,900
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
20,013
240,160
1,200,800
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
78,953
947,440
4,737,200
87
Operating cost
Raw material
- Aloe
Average weight 2 leave per 1 km.
- Buy 50 km price/km 35 baht
- Buy more than 50 km but not more than 100 km price/km 30 baht
- Buy 100-500 km price/km 25 baht
- Buy 500 km-1000 km price/km 20 baht
- Lemongrass
Average price each month on 2009
Jan 5.50 , Feb 6.48 , Mar 7.28 , Apr 7.50 , May 9.29 , Jun 12.50 , Jul 11.63 , Aug
11.45 , Sep 11.45 , Oct 12.50 , Nov 12.60 , Dec 12.72
Jan 13.50 , Feb 10.27 , Mar 10.21 , Apr 10.20 , May 8.77 , Jun 9.43 , Jul 9.32 ,
Aug 8.39 , Sep 8.10 , Oct 6.75 , Nov 6.92 , Dec -
- Asiatic Pennywort
Jan 3.5 , Feb 3.5 , Mar 3.5 , Apr 3.5 , May 3.5, Jun 3.5, Jul 3.5, Aug 3.5, Sep 8.10
, Oct 3.5, Nov 3.5, Dec 3.48
Jan 3.5 , Feb 4.78 , Mar 4.81 , Apr 5.3 , May 5.08 , Jun 5.03 , Jul 5.5, Aug 4.98,
Sep 4.63 , Oct 5.03, Nov 4.9 , Dec 4.5
Jan 4.79
88
- Roselle
Jan 140.75 , Feb 130 , Mar 141.82 , Apr 150 , May 155.56, Jun 170 , Jul 170 ,
Aug 170 , Sep 170 , Oct 170 , Nov 144.29, Dec 125
Jan 167.25 , Feb 196 , Mar 210 , Apr 191.18 , May 190, Jun 156.71 , Jul 252.75,
Aug 335 , Sep 335 , Oct - , Nov - , Dec
Jan 150.
- Ginger
Jan 28.71 , Feb 18.03 , Mar 14.55 , Apr 14 , May 14.52, Jun 14.5 , Jul 14.5, Aug
14.5 , Sep 18.4 , Oct 27.48 , Nov 27.5 , Dec 27.5
Jan 27.5 , Feb 32.06 , Mar 4.4 , Apr 45.5 , May 47.29 , Jun 51.33 , Jul 62.66, Aug
63.8 , Sep 67.92 , Oct 83.87 , Nov 104.83 , Dec 47.10
Jan 40.
- Sugar: 17.25 baht/kg.

- Salt: 2.30 baht/kg.
89
Direct labor cost
- Executive
person
35,000/person
35,000/month
- Officer
people
12,000/person
84,000/month
- salesman
6 people
9,500/person
57,000/month
- Employee
20 people
9,500/person
190,000/month
- Staff
10,000/person 50,000/month
people
Total
416,000
Overhead cost
- Housekeeping
people
8,200/person
16,400/month
- Security guard
people
7,500/person
15,000/month
- Driver
people
8,500/person
17,000/month
Total
- Bottle 250 ml 1 pack has 150 bottle price 250 baht.
- Bottle 500 ml 1 pack has 150 bottle price 350 baht.
48,400
90
Management Analysis
- Administration Cost
We estimate the administration cost per month the first year.
No.
List
Amount
Electricity
15,000
Telephone
800
Internet
700
Water supply
5,000
Total
21,500
Table 4.8 administration cost year 1

The second year
No.
List
Amount
Electricity
20,000
Telephone
1,000
Internet
Water supply
700
8,000
Total
29,700

The third year
No.
List
Electricity
25,000
Telephone
1,500
Internet
Water supply
Total
Amount
700
10,000
37,200
91
The forth
No.
List
Amount
Electricity
30,000
Telephone
2,000
Internet
Water supply
700
12,000
Total
44,700
The fifth year

No.
List
Electricity
35,000
Telephone
2,000
Internet
Water supply
Total
Amount
700
15,000
52,700
92
Logistics Management
Logistic Management is used in the company to manage the transportation
inside and outside the company to make everything go fast and correctly.
Logistics Management is a part of Supply Chain Management that plans,
implements, and controls the efficient, effective, forward, and reverse flow and
storage of goods, services, and related information between the point of origin and the
point of consumption in order to meet customers requirements.
Customer Service
The company has delivery service to customer and supplier. Moreover, the
company will emphasize to take care of customers with smile to make the loyalty
customer. The company stand in service mind Because the activities that the
company satisfies and impresses for customer. This is the most important thing to
persuade them and can affect to the others step in logistic activities.
Return goods
If the company delivers the wrong products or there are any problems about the
product, the company will respond and will return goods suddenly.
Location Planning
Herbal plus company is located at Doi saket district that where wide area for
operation production and easy for transportation. Because there far from city about 10
km. Around there not near village so it not affect to village such as noise.
Transport & Traffic
- Inbound logistics. The company has delivery service to transport the transformed
product to factory by a fewer fee.
Material Handling and Transportation

TRUCK
Pickup
93
Chapter 5
Financial Analysis
94
Income Statement
The first year
Herbal Plus
Income Statement
January 31, 2009
Sale
Less: Cost of goods sold
Gross profit
Operating expense
-Salaries expense
-Marketing expense
-Administration expense
-Utilities expense
-Repayment Loan
-Interest expense
-Income before Tax
-Tax expense
Total operating expense
February 28, 2009
March 31, 2009
April 30, 2009
May 31, 2009
June 30, 2009

4,992,000
4,027,584
964,416
200,000
24,000
200,000
24,000
-224,000
200,000
24,000
-224,000
200,000
24,000
-224,000
464,400
111,710
21,500
10,000
200,000
24,000
200,000
24,000
-224,000
3,195,974
-224,000
223,718
Net Income
224,000
224,000
224,000
224,000
224,000
1,055,328
-224,000
-224,000
-224,000
-224,000
-224,000
-90,912
Herbal Plus
Income Statement
July 31, 2009
Sale
Gross profit
Operating expense
-Salaries expense
-Marketing expense
-Utilities expense
-Repayment Loan
-Interest expense
-Income before Tax
-Tax expense
Net Income
August 31, 2009
5,304,000
4,075,584
1,228,416
464,400
101,000
21,500
10,000
200,000
24,000
5,616,000
4,123,584
1,492,416
464,400
121,000
21,500
10,000
200,000
24,000
3,254,684
227,828
September 30, 2009

7,410,000
5,214,480
2,195,520
464,400
101,000
21,500
10,000
200,000
24,000
3,282,684
229,788
October 31, 2009

7,020,000
5,154,480
1,865,520
464,400
101,000
21,500
10,000
200,000
24,000
4,393,580
307,551
November 30, 2009

7,293,000
5,603,928
1,689,072
464,400
101,000
21,500
10,000
200,000
24,000
4,333,580
303,351
December 31, 2009

6,864,000
5,537,928
1,326,072
464,400
121,000
21,500
10,000
200,000
24,000
4,783,028
334,812
Year 1
44,499,000
33,737,568
10,761,432
3,250,800
757,710
150,500
70,000
2,400,000
288,000
4,697,028
328,792
26,820,558
2,345,950
1,048,728
1,070,688
1,128,451
1,124,251
1,155,712
1,169,692
9,262,960
179,688
421,728
1,067,069
741,269
533,360
156,380
1,498,472
95
The second year
Herbal Plus
Income Statement
January 31, 2010
Sale
Gross profit
Operating expense
-Salaries expense
-Marketing expense
-Utilities expense
-Repayment Loan
-Interest expense
-Income before Tax
-Tax expense
February 28, 2010
7,956,000
6,113,376
1,842,624
464,400
101,000
29,700
10,000
200,000
24,000
8,424,000
6,185,376
2,238,624
464,400
101,000
29,700
10,000
200,000
24,000
5,284,276
369,899
Net Income
March 31, 2010

8,424,000
6,185,376
2,238,624
464,400
101,000
29,700
10,000
200,000
24,000
5,356,276
374,939
April 30, 2010

9,633,000
6,778,824
2,854,176
464,400
136,000
29,700
10,000
200,000
24,000
5,356,276
374,939
May 31, 2010

9,126,000
6,700,824
2,425,176
464,400
101,000
29,700
10,000
200,000
24,000
5,914,724
414,031
June 30, 2010

8,821,800
6,654,024
2,167,776
464,400
101,000
29,700
10,000
200,000
24,000
5,871,724
411,021
5,824,924
407,745
1,198,999
1,204,039
1,204,039
1,278,131
1,240,121
1,236,845
643,625
1,034,585
1,034,585
1,576,045
1,185,055
930,931
Herbal Plus
Income Statement
July 31, 2010
Sale
Gross profit
Operating expense
-Salaries expense
-Marketing expense
-Utilities expense
-Repayment Loan
-Interest expense
-Income before Tax
-Tax expense
Net Income
August 31, 2010
8,619,000
6,622,824
1,996,176
464,400
101,000
29,700
10,000
200,000
24,000
9,406,800
6,907,003
2,499,797
464,400
136,000
29,700
10,000
200,000
24,000
5,793,724
405,561
September 30, 2010

9,093,240
6,858,763
2,234,477
464,400
101,000
29,700
10,000
200,000
24,000
6,042,903
423,003
October 31, 2010

9,016,800
6,928,493
2,088,307
464,400
101,000
29,700
10,000
200,000
24,000
6,029,663
422,076
November 30, 2010

9,016,800
6,928,493
2,088,307
464,400
101,000
29,700
10,000
200,000
24,000
5,871,724
426,957
December 31, 2010

9,902,880
7,146,302
2,756,578
464,400
136,000
29,700
10,000
200,000
24,000
6,099,393
426,957
Year 2
107,440,320
80,009,678
27,430,642
5,572,800
1,317,000
356,400
120,000
2,400,000
288,000
6,282,202
439,754
69,955,478
5,542,640
1,234,661
1,287,103
1,251,176
1,256,057
1,256,057
1,303,854
15,596,840
761,515
1,212,694
983,300
832,250
832,250
1,452,723
11,833,801
96
The third year

Herbal Plus
Income Statement
January 31, 2011
Sale
Gross profit
Operating expense
-Salaries expense
-Marketing expense
-Utilities expense
-Repayment Loan
-Interest expense
-Income before Tax
-Tax expense
February 28, 2011
9,500,400
7,165,872
2,334,528
464,400
80,000
37,200
10,000
200,000
24,000
9,828,000
7,216,272
2,611,728
464,400
80,000
37,200
10,000
200,000
24,000
6,350,272
444,519
Net Income
March 31, 2011

9,828,000
7,216,272
2,611,728
464,400
80,000
37,200
10,000
200,000
24,000
6,400,672
448,047
April 30, 2011

11,115,000
7,821,720
3,293,280
464,400
115,000
37,200
10,000
200,000
24,000
6,400,672
448,047
May 31, 2011

10,530,000
7,731,720
2,798,280
464,400
80,000
37,200
10,000
200,000
24,000
6,971,120
487,978
June 30, 2011

10,179,000
7,677,720
2,501,280
464,400
80,000
37,200
10,000
200,000
24,000
6,916,120
484,128
6,862,120
480,348
1,260,119
1,263,647
1,263,647
1,338,578
1,299,728
1,295,948
1,074,409
1,348,081
1,348,081
1,954,702
1,498,552
1,205,332
Herbal Plus
Income Statement
July 31, 2011
Sale
Gross profit
Operating expense
-Salaries expense
-Marketing expense
-Utilities expense
-Repayment Loan
-Interest expense
-Income before Tax
-Tax expense
Net Income
August 31, 2011
10,179,000
7,677,720
2,501,280
464,400
80,000
37,200
10,000
200,000
24,000
10,810,800
7,937,899
2,872,901
464,400
115,000
37,200
10,000
200,000
317,037
6,862,120
480,348
September 30, 2011
10,450,440
7,882,459
2,567,981
464,400
80,000
37,200
10,000
200,000
24,000
6,794,262
475,598
October 31, 2011
10,450,440
7,882,459
2,567,981
464,400
80,000
37,200
10,000
200,000
24,000
7,066,859
494,680
November 30, 2011
10,951,200
8,040,989
2,910,211
464,400
80,000
37,200
10,000
200,000
24,000
7,066,859
494,680
December 31, 2011
11,559,600
8,134,589
3,425,011
464,400
115,000
37,200
10,000
200,000
24,000
7,225,389
505,777
Year 3
125,381,880
92,385,691
32,996,189
5,572,800
1,065,000
446,400
120,000
2,400,000
581,037
7,283,989
509,879
82,200,454
6,409,906
1,295,948
1,619,235
1,310,280
1,310,280
1,321,377
1,360,479
16,595,143
1,205,332
1,253,665
1,257,701
1,257,701
1,588,834
2,064,532
16,401,045
97
The forth year
Herbal Plus
Income Statement
January 31, 2012
Sale
Gross profit
Operating expense
-Salaries expense
-Marketing expense
-Utilities expense
-Repayment Loan
-Interest expense
-Income before Tax
-Tax expense
- Total operating expense
February 28, 2012
10,608,000
8,151,168
2,456,832
464,400
74,500
44,700
10,000
200,000
24,000
10,857,600
8,189,568
2,668,032
464,400
74,500
44,700
10,000
200,000
24,000
7,333,568
513,350
Net Income
March 31, 2012
10,857,600
8,189,568
2,668,032
464,400
74,500
44,700
10,000
200,000
24,000
7,371,968
516,038
April 30, 2012
7,371,968
464,400
74,500
44,700
10,000
200,000
24,000
7,910,016
553,701
June 30, 2012
11,668,800
8,721,816
2,946,984
11,934,000
8,762,616
3,171,384
464,400
109,500
44,700
10,000
200,000
24,000
516,038
May 31, 2012
11,536,200
8,701,416
2,834,784
464,400
74,500
44,700
10,000
200,000
24,000
7,904,216
553,295
7,883,816
551,867
1,330,950
1,333,638
1,333,638
1,406,301
1,370,895
1,369,467
2,456,832
2,668,032
2,668,032
3,171,384
2,946,984
2,834,784
Herbal Plus
Income Statement
July 31, 2012
Sale
Gross profit
Operating expense
-Salaries expense
-Marketing expense
-Utilities expense
-Repayment Loan
-Interest expense
-Income before Tax
-Tax expense
-Total operating expanse
Net Income
August 31, 2012
11,536,200
8,701,416
2,834,784
464,400
74,500
44,700
10,000
200,000
24,000
12,214,800
8,968,795
3,246,005
464,400
109,500
44,700
10,000
200,000
24,000
7,883,816
551,867
September 30, 2012
11,943,360
8,927,035
3,016,325
464,400
74,500
44,700
10,000
200,000
24,000
8,116,195
568,134
October 31, 2012
11,943,360
8,927,035
3,016,325
464,400
74,500
44,700
10,000
200,000
24,000
8,109,435
567,660
November 30, 2012
12,217,920
9,050,765
3,167,155
464,400
74,500
44,700
10,000
200,000
24,000
8,109,435
567,660
December 31, 2012
13,041,600
9,177,485
3,864,115
464,400
109,500
44,700
10,000
200,000
24,000
8,233,165
576,322
Year 4
140,359,440
104,468,683
35,890,757
5,572,800
999,000
536,400
120,000
2,400,000
288,000
8,324,885
582,742
94,552,483
7,255,576
1,369,467
1,420,734
1,385,260
1,385,260
1,393,922
1,435,342
2,834,784
3,246,005
3,016,325
3,016,325
3,167,155
3,864,115
17,171,776
18,718,981
98
The fifth year
Herbal Plus
Income Statement
January 31, 2013
12,214,800
9,213,264
3,001,536
Sale
Gross profit
Operating expense
-Salaries expense
-Marketing expense
-Utilities expense
-Repayment Loan
-Interest expense
-Income before Tax
-Tax expense
- Total operating expense
February 28, 2013
2,970,000
464,400
74,500
52,700
10,000
200,000
24,000
12,214,800
9,213,264
3,001,536
3,240,000
464,400
74,500
52,700
10,000
200,000
24,000
5,417,664
379,236
Net Income
March 31, 2013
12,214,800
9,213,264
3,001,536
3,510,000
464,400
74,500
52,700
10,000
200,000
24,000
5,147,664
360,336
April 30, 2013
4,877,664
3,780,000
464,400
74,500
52,700
10,000
200,000
24,000
4,946,733
346,271
June 30, 2013
12,767,040
9,542,693
3,224,347
13,057,200
9,587,333
3,469,867
3,780,000
464,400
109,500
52,700
10,000
200,000
24,000
341,436
May 31, 2013
13,041,600
9,747,912
3,293,688
4,050,000
464,400
74,500
52,700
10,000
200,000
24,000
4,937,093
345,596
4,872,312
341,062
1,412,736
1,412,736
1,412,736
1,471,471
1,435,796
1,450,162
3,001,536
3,001,536
3,001,536
3,469,867
3,224,347
3,293,688
Herbal Plus
Income Statement
July 31, 2013
13,189,800
9,770,712
3,419,088
Sale
Gross profit
Operating expense
-Salaries expense
-Marketing expense
-Utilities expense
-Repayment Loan
-Interest expense
-Income before Tax
-Tax expense
-Total operating expense
Net Income
August 31, 2013
4,320,000
464,400
74,500
52,700
10,000
200,000
24,000
14,079,000
9,907,512
4,171,488
4,320,000
464,400
109,500
52,700
10,000
200,000
24,000
4,625,112
323,758
September 30, 2013
13,478,400
9,896,602
3,581,798
4,590,000
464,400
74,500
52,700
10,000
200,000
24,000
4,726,912
330,884
October 31, 2013
13,328,640
9,873,562
3,455,078
4,590,000
464,400
74,500
52,700
10,000
200,000
24,000
4,481,002
313,670
November 30, 2013
13,328,640
9,873,562
3,455,078
4,860,000
464,400
74,500
52,700
10,000
200,000
24,000
4,457,962
312,057
December 31, 2013
14,375,400
10,116,091
4,259,309
4,860,000
464,400
109,500
52,700
10,000
200,000
24,000
4,187,962
293,157
Year 5
157,290,120
115,955,770
41,334,350
5,572,800
999,000
632,400
120,000
2,400,000
288,000
4,395,491
307,684
105,943,570
7,794,512
1,451,758
1,493,884
1,460,570
1,458,957
1,458,957
1,508,484
3,419,088
4,171,488
3,581,798
3,455,078
3,455,078
4,259,309
18,071,312
23,263,039
71,715,338
99
Balance Sheet
The first year
Herbal Plus
Balance Sheet
January 31,
2009
Assets
Current assets:
Cash
Merchandise inventory
Furniture
Equipment in herbal plus
Electronic equipment
Other equipment
Land
Building
Accumulate depreciationFurniture
Accumulate depreciationEquipment in herbal plus
Accumulate depreciationElectric Equipment
Accumulate depreciation-Other
Equipment
Accumulate depreciationBuilding
Prepaid interest
Total assets
Liabilities
Note payable
Total liabilities
Equity
Owner, Capital
Total liabilities and equity
February 28,
2009
March 31,
2009
April 30,
2009
May 31,
2009
June 30,
2009
July 31,
2009
August 31,
2009
September
30, 2009
2,998,250
336,000
70,859
1,340,290
114,418
1,129,953
2,400,000
1,778,333
3,299,978
432,000
69,597
1,316,423
112,381
1,109,832
2,400,000
1,746,667
4,283,047
492,000
68,335
1,292,557
110,343
1,089,711
2,400,000
1,715,000
October 31,
2009
November
30, 2009
December
31, 2009
4,880,317
612,000
67,073
1,268,690
108,306
1,069,590
2,400,000
1,683,333
5,191,677
810,000
65,811
1,244,824
106,268
1,049,469
2,400,000
1,651,667
5,060,057
1,074,000
64,550
1,220,958
104,231
1,029,348
2,400,000
1,620,000
5,060,057
1,074,000
64,550
1,220,958
104,231
1,029,348
2,400,000
1,620,000
Year 1
4,389,474
4,165,474
3,941,474
3,717,474
3,493,474
78,429
1,483,489
126,643
1,250,679
2,400,000
1,968,333
77,167
1,459,622
124,605
1,230,558
2,400,000
1,936,667
75,906
1,435,756
122,568
1,210,437
2,400,000
1,905,000
74,644
1,411,889
120,530
1,190,316
2,400,000
1,873,333
73,382
1,388,023
118,493
1,170,195
2,400,000
1,841,667
2,986,562
192,000
72,120
1,364,156
116,455
1,150,074
2,400,000
1,810,000
1,262
2,524
3,785
5,047
6,309
7,571
8,832
10,094
11,356
12,618
13,880
15,141
15,141
23,866
47,733
71,599
95,466
119,332
143,199
167,065
190,932
214,798
238,665
262,531
286,397
286,397
2,037
4,075
6,112
8,150
10,187
12,225
14,262
16,299
18,337
20,374
22,412
24,449
24,449
20,121
40,242
60,363
80,484
100,605
120,726
140,847
160,968
181,089
201,210
221,331
241,452
241,452
31,667
24,000
11,800,000
63,333
48,000
11,600,000
95,000
72,000
11,400,000
126,667
96,000
11,200,000
158,333
120,000
11,000,000
190,000
144,000
10,709,088
221,667
168,000
10,888,776
253,333
192,000
11,310,504
285,000
216,000
12,377,573
316,667
240,000
13,118,843
348,333
264,000
13,652,203
380,000
288,000
13,808,583
380,000
288,000
13,808,583
11,800,000
11,800,000
11,600,000
11,600,000
11,400,000
11,400,000
11,200,000
11,200,000
11,000,000
11,000,000
10,800,000
10,800,000
10,600,000
10,600,000
10,400,000
10,400,000
10,200,000
10,200,000
10,000,000
10,000,000
9,800,000
9,800,000
9,600,000
9,600,000
9,600,000
9,600,000
-90,912
179,688
421,728
1,067,069
741,269
533,360
156,380
3,008,583
11,800,000
11,600,000
11,400,000
11,200,000
11,000,000
10,709,088
10,888,776
0
11,310,504
0
12,377,573
0
13,118,843
0
13,652,203
0
13,808,583
0
13,808,583
100
The second year

Herbal Plus
Balance Sheet
January 31,
2010
Assets
Current assets:
Cash
Furniture
Other equipment
Land
Building
Accumulate depreciationOther Equipment
prepaid interest
Total assets
Liabilities
Note payable
Total liabilities
Equity
Owner, Capital
February 28,
2010
March 31,
2010
April 30,
2010
May 31,
2010
June 30,
2010
July 31,
2010
August 31,
2010
September
30, 2010
October 31,
2010
November
30, 2010
December
31, 2010
Year 2
5,463,682
1,290,000
63,288
1,197,091
102,193
1,009,227
2,400,000
1,588,333
6,330,266
1,434,000
62,026
1,173,225
100,156
989,106
2,400,000
1,556,667
7,196,851
1,578,000
60,764
1,149,358
98,119
968,985
2,400,000
1,525,000
8,670,896
1,656,000
59,503
1,125,492
96,081
948,864
2,400,000
1,493,333
9,675,952
1,812,000
58,241
1,101,625
94,044
928,743
2,400,000
1,461,667
10,380,083
2,014,800
56,979
1,077,759
92,006
908,622
2,400,000
1,430,000
10,883,598
2,248,800
55,717
1,053,892
89,969
888,501
2,400,000
1,398,333
11,911,492
2,409,600
54,456
1,030,026
87,931
868,380
2,400,000
1,366,667
12,661,752
2,618,640
53,194
1,006,159
85,894
848,259
2,400,000
1,335,000
13,225,202
2,863,440
51,932
982,293
83,856
828,138
2,400,000
1,303,333
13,788,652
3,108,240
50,670
958,427
81,819
808,017
2,400,000
1,271,667
15,084,895
3,240,720
49,408
934,560
79,782
787,896
2,400,000
1,240,000
15,084,895
3,240,720
49,408
934,560
79,782
787,896
2,400,000
1,240,000
16,403
17,665
18,927
20,188
21,450
22,712
23,974
25,235
26,497
27,759
29,021
30,283
30,283
310,264
334,130
357,997
381,863
405,730
429,596
453,463
477,329
501,196
525,062
548,928
572,795
572,795
26,487
28,524
30,562
32,599
34,636
36,674
38,711
40,749
42,786
44,824
46,861
48,898
48,898
261,573
281,694
301,815
321,936
342,057
362,178
382,299
402,420
422,541
442,662
462,783
482,904
482,904
411,667
312,000
14,452,208
443,333
336,000
15,486,792
475,000
360,000
16,521,377
506,667
384,000
18,097,422
538,333
408,000
19,282,478
570,000
432,000
20,213,409
601,667
456,000
20,974,924
633,333
480,000
22,187,618
665,000
504,000
23,170,918
696,667
528,000
24,003,168
728,333
552,000
24,835,418
760,000
576,000
26,288,141
760,000
576,000
26,288,141
9,400,000
9,400,000
9,200,000
9,200,000
9,000,000
9,000,000
8,800,000
8,800,000
8,600,000
8,600,000
8,400,000
8,400,000
8,200,000
8,200,000
8,000,000
8,000,000
7,800,000
7,800,000
7,600,000
7,600,000
7,400,000
7,400,000
7,200,000
7,200,000
7,200,000
7,200,000
643,625
1,034,585
1,034,585
1,576,045
1,185,055
930,931
761,515
1,212,694
983,300
832,250
832,250
1,452,723
12,479,558
14,452,208
0
15,486,792
0
16,521,377
0
18,097,422
0
19,282,478
0
20,213,409
0
20,974,924
0
22,187,618
0
23,170,918
0
24,003,168
0
24,835,418
0
26,288,141
0
26,288,141
101
The third year

Herbal Plus
Balance Sheet
Assets
Current assets:
Cash
Furniture
Other equipment
Land
Building
prepaid interest
Total assets
Liabilities
Note payable
Total liabilities
Equity
Owner, Capital
January 31,
2011
February 28,
2011
March 31,
2011
April 30,
2011
May 31,
2011
June 30,
2011
July 31,
2011
August 31,
2011
15,916,904
3,459,120
48,147
910,694
77,744
767,775
2,400,000
1,208,333
17,072,985
3,627,120
46,885
886,827
75,707
747,654
2,400,000
1,176,667
18,229,066
3,795,120
45,623
862,961
73,669
727,533
2,400,000
1,145,000
20,069,767
3,885,120
44,361
839,094
71,632
707,412
2,400,000
1,113,333
21,364,319
4,065,120
43,100
815,228
69,594
687,291
2,400,000
1,081,667
22,311,651
4,299,120
41,838
791,361
67,557
667,170
2,400,000
1,050,000
23,258,982
4,533,120
40,576
767,495
65,520
647,049
2,400,000
1,018,333
24,304,648
4,717,120
39,314
743,628
63,482
626,928
2,400,000
986,667
31,544
32,806
34,068
35,330
36,591
37,853
39,115
596,661
620,528
644,394
668,261
692,127
715,994
50,936
52,973
55,011
57,048
59,086
503,025
523,146
543,267
563,388
791,667
600,000
27,362,550
823,333
624,000
28,710,631
855,000
648,000
30,058,712
7,000,000
7,000,000
6,800,000
6,800,000
6,600,000
6,600,000
September 30,
2011
October 31,
2011
November
30, 2011
December
31, 2011
Year3
25,298,108
4,957,360
38,052
719,762
61,445
606,807
2,400,000
955,000
26,291,569
5,197,600
36,791
695,896
59,407
586,686
2,400,000
923,333
27,669,203
5,384,800
35,529
672,029
57,370
566,565
2,400,000
891,667
29,616,135
5,478,400
34,267
648,163
55,332
546,444
2,400,000
860,000
29,616,135
5,478,400
34,267
648,163
55,332
546,444
2,400,000
860,000
40,377
41,639
42,900
44,162
45,424
45,424
739,860
763,727
787,593
811,459
835,326
859,192
859,192
61,123
63,160
65,198
67,235
69,273
71,310
73,348
73,348
583,509
603,630
623,751
643,872
663,993
684,114
704,235
724,356
724,356
886,667
672,000
32,013,413
918,333
696,000
33,511,965
950,000
720,000
34,717,297
981,667
744,000
35,922,628
1,013,333
768,000
37,176,294
1,045,000
792,000
38,433,994
1,076,667
816,000
39,691,695
1,108,333
840,000
41,280,529
1,140,000
864,000
43,345,061
1,140,000
864,000
43,345,061
6,400,000
6,400,000
6,200,000
6,200,000
6,000,000
6,000,000
5,800,000
5,800,000
5,600,000
5,600,000
5,400,000
5,400,000
5,200,000
5,200,000
5,000,000
5,000,000
4,800,000
4,800,000
4,800,000
4,800,000
1,074,409
1,348,081
1,348,081
1,954,702
1,498,552
1,205,332
1,205,332
1,253,665
1,257,701
1,257,701
1,588,834
2,064,532
17,056,920
27,362,550
0
28,710,631
0
30,058,712
0
32,013,414
0
33,511,965
0
34,717,297
0
35,922,628
0
37,176,294
0
38,433,994
0
39,691,695
0
41,280,529
0
43,345,061
0
43,345,061
102
The forth year
Herbal Plus
Balance Sheet
Assets
Current assets:
Cash
Furniture
Other equipment
Land
Building
prepaid interest
Total assets
Liabilities
Note payable
Total liabilities
Equity
Owner, Capital
January 31,
2012
February 28,
2012
March 31,
2012
April 30,
2012
May 31,
2012
June 30,
2012
July 31,
2012
August 31,
2012
September
30, 2012
October 31,
2012
November
30, 2012
December
31, 2012
Year 4
31,760,967
5,766,400
33,005
624,296
53,295
526,323
2,400,000
828,333
34,155,399
6,016,000
31,744
600,430
51,258
506,202
2,400,000
796,667
36,549,831
6,265,600
30,482
576,563
49,220
486,081
2,400,000
765,000
39,493,215
6,469,600
29,220
552,697
47,183
465,960
2,400,000
733,333
42,171,399
6,714,400
27,958
528,830
45,145
445,839
2,400,000
701,667
44,716,983
6,979,600
26,696
504,964
43,108
425,718
2,400,000
670,000
47,262,567
7,244,800
25,435
481,097
41,070
405,597
2,400,000
638,333
50,275,772
7,453,600
24,173
457,231
39,033
385,476
2,400,000
1,873,333
53,017,537
7,704,160
22,911
433,365
36,996
365,355
2,400,000
575,000
55,759,301
7,954,720
21,649
409,498
34,958
345,234
2,400,000
543,333
58,670,137
8,187,040
20,388
385,632
32,921
325,113
2,400,000
511,667
62,404,652
8,292,640
19,126
361,765
30,883
304,992
2,400,000
480,000
62,404,652
8,292,640
19,126
361,765
30,883
304,992
2,400,000
480,000
46,686
47,947
49,209
50,471
51,733
52,995
54,256
55,518
56,780
58,042
59,303
60,565
60,565
883,059
906,925
930,792
954,658
978,525
1,002,391
1,026,258
1,050,124
1,073,990
1,097,857
1,121,723
1,145,590
1,145,590
75,385
77,422
79,460
81,497
83,535
85,572
87,610
89,647
91,685
93,722
95,759
97,797
97,797
744,477
764,598
784,719
804,840
824,961
845,082
865,203
885,324
905,445
925,566
945,687
965,808
965,808
1,171,667
888,000
45,801,893
1,203,333
912,000
48,469,925
1,235,000
936,000
51,137,957
1,266,667
960,000
54,309,341
1,298,333
984,000
57,256,325
1,330,000
1,008,000
60,091,109
1,361,667
1,032,000
62,925,893
126,667
1,056,000
66,171,898
1,425,000
1,080,000
69,188,223
1,456,667
1,104,000
72,204,547
1,488,333
1,128,000
75,371,703
1,520,000
1,152,000
79,235,818
1,520,000
1,152,000
79,235,818
4,600,000
4,600,000
4,400,000
4,400,000
4,200,000
4,200,000
4,000,000
4,000,000
3,800,000
3,800,000
3,600,000
3,600,000
3,400,000
3,400,000
3,200,000
3,200,000
3,000,000
3,000,000
2,800,000
2,800,000
2,600,000
2,600,000
2,400,000
2,400,000
2,400,000
2,400,000
2,456,832
2,668,032
2,668,032
3,171,384
2,946,984
2,834,784
2,834,784
3,246,005
3,016,325
3,016,325
3,167,155
3,864,115
35,890,757
45,801,893
0
48,469,925
0
51,137,957
0
54,309,341
0
57,256,325
0
60,091,109
0
62,925,893
0
66,171,898
0
69,188,223
0
72,204,547
0
75,371,703
0
79,235,818
0
79,235,818
103
The fifth year
Herbal Plus
Balance Sheet
January 31,
2013
February 28,
2013
March 31,
2013
April 30,
2013
May 31,
2013
June 30,
2013
July 31,
2013
August 31,
2013
September
30, 2013
October 31,
2013
November
30, 2013
65,101,388
8,573,440
17,864
337,899
28,846
284,871
2,400,000
448,333
67,798,124
8,854,240
16,602
314,032
26,808
264,750
2,400,000
416,667
70,494,860
9,135,040
15,341
290,166
24,771
244,629
2,400,000
385,000
73,717,527
9,358,240
14,079
266,299
22,733
224,508
2,400,000
353,333
76,650,034
9,626,080
12,817
242,433
20,696
204,387
2,400,000
321,667
79,646,122
9,899,680
11,555
218,566
18,659
184,266
2,400,000
290,000
82,790,410
10,150,480
10,293
194,700
16,621
164,145
2,400,000
258,333
86,823,898
10,264,480
9,032
170,834
14,584
144,024
2,400,000
226,667
90,151,297
10,494,880
7,770
146,967
12,546
123,903
2,400,000
195,000
93,328,935
10,748,320
6,508
123,101
10,509
103,782
2,400,000
163,333
96,506,573
11,001,760
5,246
99,234
8,471
83,661
2,400,000
131,667
100,625,482
11,118,160
3,985
75,368
6,434
63,540
2,400,000
100,000
100,625,482
11,118,160
3,985
75,368
6,434
63,540
2,400,000
100,000
61,827
63,089
64,350
65,612
66,874
68,136
69,398
70,659
71,921
73,183
74,445
75,706
75,706
1,169,456
1,193,323
1,217,189
1,241,056
1,264,922
1,288,789
1,312,655
1,336,521
1,360,388
1,384,254
1,408,121
1,431,987
1,431,987
99,834
101,872
103,909
105,947
107,984
110,021
112,059
114,096
116,134
118,171
120,209
122,246
122,246
985,929
1,006,050
1,026,171
1,046,292
1,066,413
1,086,534
1,106,655
1,126,776
1,146,897
1,167,018
1,187,139
1,207,260
1,207,260
1,551,667
1,176,000
1,583,333
1,200,000
1,615,000
1,224,000
1,646,667
1,248,000
1,678,333
1,272,000
1,710,000
1,296,000
85,238,890
88,240,426
91,710,293
94,934,640
98,228,328
1,805,000
1,368,000
109,400,703
1,836,667
1,392,000
112,855,781
1,868,333
1,416,000
116,310,859
1,900,000
1,440,000
82,237,354
1,773,333
1,344,000
105,818,904
1,900,000
1,440,000
Total assets
Liabilities
Note payable
Total liabilities
Equity
Owner, Capital
1,741,667
1,320,000
101,647,416
120,570,168
120,570,168
2,200,000
2,200,000
2,000,000
2,000,000
1,800,000
1,800,000
1,600,000
1,600,000
1,400,000
1,400,000
1,200,000
1,200,000
1,000,000
1,000,000
800,000
800,000
600,000
600,000
400,000
400,000
200,000
200,000
0
0
0
0
3,001,536
3,001,536
3,001,536
3,469,867
3,224,347
3,293,688
85,238,890
0
88,240,426
0
91,710,293
0
94,934,640
0
98,228,328
0
3,581,798
109,400,703
0
3,455,078
112,855,781
0
3,455,078
116,310,859
0
41,334,350
82,237,354
0
4,171,488
105,818,904
0
4,259,309
3,419,088
101,647,416
0
120,570,168
0
120,570,168
Assets
Current assets:
Cash
Furniture
Other equipment
Land
Building
Prepaid interest
December 31,
2013
Year 5
104
Cash flow
The first year
Herbal Plus
Statement of Cash Flows
Cash flows from operating
activities:
Cash received from
customers
Cash paid for salaries
Cash paid for marketing
Cash paid for administrative
Cash paid for interest
Cash paid for tax
Cash paid for product
Net cash provide by operating
activities
Cash flows from investing
activities:
Cash paid for electronic
equipment
Cash paid for equipment in
herbal plus
Cash paid for other
equipment
Cash paid for land
Cash paid for furniture
Cash paid for building
Net cash provide by investing
activities
Cash flow from financing
activities
Cash received from loan
Cash paid for repayment note
payable
Net cash provide by financing
activities
Net increase in cash
Cash balance
Net cashflow
January 31,
2009
Febuary 28,
2009
March 31,
2009
April 30,
2009
May 31,
2009
June 30,
2009
July 31,
2009
August 31,
2009
September
30, 2009
October 31,
2009
November
30, 2009
December
31, 2009
Year 1
0
0
0
0
-24,000
0
0
0
0
0
0
-48,000
0
0
0
0
0
0
-72,000
0
0
0
0
0
0
-96,000
0
0
0
0
0
0
-120,000
0
0
4,992,000
-464,400
-111,710
-21,500
-144,000
-223,718
-4,027,584
5,304,000
-464,400
-101,000
-21,500
-168,000
-227,828
-4,075,584
5,616,000
-464,400
-121,000
-21,500
-192,000
-229,788
-4,123,584
7,410,000
-464,400
-101,000
-21,500
-216,000
-307,551
-5,214,480
7,020,000
-464,400
-101,000
-21,500
-240,000
-303,351
-5,154,480
7,293,000
-464,400
-101,000
-21,500
-264,000
-334,812
-5,603,928
6,864,000
-464,400
-121,000
-21,500
-288,000
-328,792
-5,537,928
6,864,000
-464,400
-121,000
-21,500
-288,000
-328,792
-5,537,928
-24,000
-48,000
-72,000
-96,000
-120,000
-912
245,688
463,728
1,085,069
735,269
503,360
102,380
102,380
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
0
-2,400,000
0
-2,000,000
0
-2,400,000
0
-2,000,000
-1,270,800
-2,400,000
0
-2,000,000
-1,270,800
-2,400,000
0
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-4,400,000
-4,400,000
-7,306,835
-7,306,835
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
-200,000
-400,000
-600,000
-800,000
-1,000,000
-1,200,000
-1,400,000
-1,600,000
-1,800,000
-2,000,000
-2,200,000
-2,400,000
-2,400,000
11,800,000
7,376,000
0
11,600,000
7,152,000
0
11,400,000
4,021,165
0
11,200,000
3,797,165
0
11,000,000
3,493,474
0
10,800,000
3,412,562
2,986,562
10,600,000
3,459,162
2,998,250
10,400,000
3,477,202
3,299,978
10,200,000
3,898,543
4,283,047
10,000,000
3,348,743
4,880,317
9,800,000
2,916,834
5,191,677
9,600,000
2,315,854
5,060,057
9,600,000
2,315,854
5,060,057
7,376,000
7,152,000
4,021,165
3,797,165
3,493,474
6,399,124
6,457,412
6,777,180
8,181,591
8,229,060
8,108,511
7,375,911
7,375,911
March 31,
2010
April 30,
2010
May 31,
2010
June 30,
2010
November
30, 2010
December
31, 2010
The second year

Herbal Plus
activities:
January 31,
2010
Febuary 28,
2010
July 31,
2010
August 31,
2010
September
30, 2010
October 31,
2010
Year 2
105
Cash received from
customers
Cash paid for tax
activities
activities:
equipment
herbal plus
Cash paid for other
equipment
Cash paid for land
activities
activities
payable
activities
Cash balance
Net cashflow
7,956,000
-464,400
-101,000
-29,700
-312,000
-369,899
-6,113,376
8,424,000
-464,400
-101,000
-29,700
-336,000
-374,939
-6,185,376
8,424,000
-464,400
-101,000
-29,700
-360,000
-374,939
-6,185,376
9,633,000
-464,400
-136,000
-29,700
-384,000
-414,031
-6,778,824
9,126,000
-464,400
-101,000
-29,700
-408,000
-411,021
-6,700,824
8,821,800
-464,400
-101,000
-29,700
-432,000
-407,745
-6,654,024
8,619,000
-464,400
-101,000
-29,700
-456,000
-405,561
-6,622,824
9,406,800
-464,400
-136,000
-29,700
-480,000
-423,003
-6,907,003
9,093,240
-464,400
-101,000
-29,700
-504,000
-422,076
-6,858,763
9,016,800
-464,400
-101,000
-29,700
-528,000
-426,957
-6,928,493
9,016,800
-464,400
-101,000
-29,700
-552,000
-426,957
-6,928,493
9,902,880
-464,400
-136,000
-29,700
-576,000
-439,754
-7,146,302
9,902,880
-464,400
-121,000
-29,700
-576,000
-439,754
-7,146,302
565,625
932,585
908,585
1,426,045
1,011,055
732,931
539,515
966,694
713,300
538,250
514,250
1,110,723
1,125,723
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
-2,600,000
-2,800,000
-3,000,000
-3,200,000
-3,400,000
-3,600,000
-3,800,000
-4,000,000
-4,200,000
-4,400,000
-4,600,000
-4,800,000
-4,800,000
9,400,000
2,579,099
5,463,682
9,200,000
2,746,059
6,330,266
9,000,000
2,522,059
7,196,851
8,800,000
2,839,519
8,670,896
8,600,000
2,224,529
9,675,952
8,400,000
1,746,405
10,380,083
8,200,000
1,352,989
10,883,598
8,000,000
1,580,168
11,911,492
7,800,000
1,126,774
12,661,752
7,600,000
751,724
13,225,202
7,400,000
527,724
13,788,652
7,200,000
924,197
15,084,895
7,200,000
939,197
15,084,895
8,042,780
9,076,325
9,718,910
11,510,416
11,900,481
12,126,488
12,236,587
13,491,659
13,788,526
13,976,926
14,316,375
16,009,092
16,024,092
The third year

Herbal Plus
activities:
Cash received from
customers
Cash paid for tax
January 31,
2011
Febuary 28,
2011
March 31,
2011
April 30,
2011
May 31,
2011
June 30,
2011
July 31,
2011
August 31,
2011
September
30, 2011
October 31,
2011
November
30, 2011
December
31, 2011
9,500,400
-464,400
-80,000
-37,200
-600,000
-444,519
-7,165,872
9,828,000
-464,400
-80,000
-37,200
-624,000
-448,047
-7,216,272
9,828,000
-464,400
-80,000
-37,200
-648,000
-448,047
-7,216,272
11,115,000
-464,400
-115,000
-37,200
-672,000
-487,978
-7,821,720
10,530,000
-464,400
-80,000
-37,200
-696,000
-484,128
-7,731,720
10,179,000
-464,400
-80,000
-37,200
-720,000
-480,348
-7,677,720
10,179,000
-464,400
-80,000
-37,200
-744,000
-480,348
-7,677,720
10,810,800
-464,400
-115,000
-37,200
-768,000
-475,598
-7,937,899
10,450,440
-464,400
-80,000
-37,200
-792,000
-494,680
-7,882,459
10,450,440
-464,400
-80,000
-37,200
-816,000
-494,680
-7,882,459
10,951,200
-464,400
-80,000
-37,200
-840,000
-505,777
-8,040,989
11,559,600
-464,400
-115,000
-37,200
-864,000
-509,879
-8,134,589
Year 3
11,559,600
-464,400
-121,000
-37,200
-864,000
-509,879
-8,134,589
106
activities
activities:
equipment
herbal plus
Cash paid for other
equipment
Cash paid for land
activities
activities
payable
activities
Cash balance
Net cashflow
708,409
958,081
934,081
1,516,702
1,036,552
719,332
695,332
1,012,702
699,701
675,701
982,834
1,434,532
1,428,532
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
-5,000,000
-5,200,000
-5,400,000
-5,600,000
-5,800,000
-6,000,000
-6,200,000
-6,400,000
-6,600,000
-6,800,000
-7,000,000
-7,200,000
-7,200,000
7,000,000
321,883
15,916,904
6,800,000
371,555
17,072,985
6,600,000
147,555
18,229,066
6,400,000
530,176
20,069,767
6,200,000
-149,974
21,364,319
6,000,000
-667,194
22,311,651
5,800,000
-891,194
23,258,982
5,600,000
-773,824
24,304,648
5,400,000
-1,286,825
25,298,108
5,200,000
-1,510,825
26,291,569
5,000,000
-1,403,692
27,669,203
4,800,000
-1,151,994
27,669,203
4,800,000
-1,157,994
27,669,203
16,238,787
17,444,540
18,376,621
20,599,943
21,214,345
21,644,456
22,367,788
23,530,824
24,011,283
24,780,744
26,265,511
26,517,209
26,511,209
January 31,
2012
Febuary 28,
2012
March 31,
2012
April 30,
2012
May 31,
2012
June 30,
2012
July 31,
2012
August 31,
2012
September
30, 2012
October 31,
2012
November
30, 2012
December
31, 2012
10,608,000
-464,400
-74,500
-44,700
-888,000
-513,350
-8,151,168
10,857,600
-464,400
-74,500
-44,700
-912,000
-516,038
-8,189,568
10,857,600
-464,400
-74,500
-44,700
-936,000
-516,038
-8,189,568
11,934,000
-464,400
-109,500
-44,700
-960,000
-553,701
-8,762,616
11,668,800
-464,400
-74,500
-44,700
-984,000
-553,295
-8,721,816
11,536,200
-464,400
-74,500
-44,700
-1,008,000
-551,867
-8,701,416
11,536,200
-464,400
-74,500
-44,700
-1,032,000
-551,867
-8,701,416
12,214,800
-464,400
-109,500
-44,700
-1,056,000
-568,134
-8,968,795
11,943,360
-464,400
-74,500
-44,700
-1,080,000
-567,660
-8,927,035
11,943,360
-464,400
-74,500
-44,700
-1,104,000
-567,660
-8,927,035
12,217,920
-464,400
-74,500
-44,700
-1,128,000
-576,322
-9,050,765
13,041,600
-464,400
-109,500
-44,700
-1,152,000
-582,742
-9,177,485
13,041,600
-464,400
-121,000
-44,700
-1,152,000
-582,742
-9,177,485
471,882
656,394
632,394
1,039,083
826,089
691,317
667,317
1,003,271
785,064
761,064
879,234
1,510,773
1,499,273
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,270,800
-1,270,800
-1,270,800
-1,270,800
-1,270,800
-1,270,800
-1,270,800
-1,270,800
-1,270,800
-1,270,800
-1,270,800
-1,270,800
-1,270,800
The forth year

Herbal Plus
activities:
Cash received from
customers
Cash paid for tax
activities
activities:
equipment
herbal plus
Cash paid for other
equipment
Year 4
107
Cash paid for land
activities
activities
payable
activities
Cash balance
Net cashflow
-2,400,000
-79,691
-2,000,000
-2,400,000
-79,691
-2,000,000
-2,400,000
-79,691
-2,000,000
-2,400,000
-79,691
-2,000,000
-2,400,000
-79,691
-2,000,000
-2,400,000
-79,691
-2,000,000
-2,400,000
-79,691
-2,000,000
-2,400,000
-79,691
-2,000,000
-2,400,000
-79,691
-2,000,000
-2,400,000
-79,691
-2,000,000
-2,400,000
-79,691
-2,000,000
-2,400,000
-79,691
-2,000,000
-2,400,000
-79,691
-2,000,000
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
-7,400,000
-7,600,000
-7,800,000
-8,000,000
-8,200,000
-8,400,000
-8,600,000
-8,800,000
-9,000,000
-9,200,000
-9,400,000
-9,600,000
-9,600,000
4,600,000
-2,314,644
31,760,967
4,400,000
-2,330,132
34,155,399
4,200,000
-2,554,132
36,549,831
4,000,000
-2,347,443
39,493,215
3,800,000
-2,760,437
42,171,399
3,600,000
-3,095,209
44,716,983
3,400,000
-3,319,209
47,262,567
3,200,000
-3,183,255
50,275,772
3,000,000
-3,601,462
53,017,537
2,800,000
-3,825,462
55,759,301
2,600,000
-3,907,292
58,670,137
2,400,000
-3,475,753
58,670,137
2,400,000
-3,487,253
58,670,137
29,446,323
31,825,267
33,995,699
37,145,772
39,410,962
41,621,774
43,943,358
47,092,517
49,416,075
51,933,840
54,762,844
55,194,384
55,182,884
January 31,
2013
Febuary 28,
2013
March 31,
2013
April 30,
2013
May 31,
2013
June 30,
2013
July 31,
2013
August 31,
2013
September
30, 2013
October 31,
2013
November
30, 2013
December
31, 2013
12,214,800
-464,400
-74,500
-52,700
-1,176,000
-587,136
12,214,800
-464,400
-74,500
-52,700
-1,200,000
-587,136
12,214,800
-464,400
-74,500
-52,700
-1,224,000
-587,136
13,057,200
-464,400
-109,500
-52,700
-1,248,000
-610,871
12,767,040
-464,400
-74,500
-52,700
-1,272,000
-610,196
13,041,600
-464,400
-74,500
-52,700
-1,296,000
-624,562
13,189,800
-464,400
-74,500
-52,700
-1,320,000
-626,158
14,079,000
-464,400
-109,500
-52,700
-1,344,000
-633,284
13,478,400
-464,400
-74,500
-52,700
-1,368,000
-634,970
13,328,640
-464,400
-74,500
-52,700
-1,392,000
-633,357
13,328,640
-464,400
-74,500
-52,700
-1,416,000
-633,357
-9,213,264
-9,213,264
-9,213,264
-9,587,333
-9,542,693
-9,747,912
-9,770,712
-9,907,512
-9,896,602
-9,873,562
-9,873,562
14,375,400
-464,400
-109,500
-52,700
-1,440,000
-647,884
-
10,116,091
-10,116,091
646,800
622,800
598,800
984,396
750,551
781,526
881,330
1,567,604
987,228
838,121
814,121
1,544,824
1,533,324
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-128,680
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,507,355
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-1,270,800
-2,400,000
-79,691
-2,000,000
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
-7,386,526
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
12,000,000
The fifth year

Herbal Plus
activities:
Cash received from
customers
Cash paid for tax
activities
activities:
equipment
herbal plus
Cash paid for other
equipment
Cash paid for land
activities
activities
Year 5
14,375,400
-464,400
-121,000
-52,700
-1,440,000
-647,884
108
payable
activities
Cash balance
-9,800,000
-
10,000,000
-
10,200,000
-
10,400,000
-
10,600,000
-
10,800,000
-
11,000,000
-
11,200,000
-
11,400,000
-
11,600,000
-
11,800,000
-
12,000,000
-12,000,000
2,200,000
-4,539,726
65,101,388
2,000,000
-4,763,726
67,798,124
1,800,000
-4,987,726
70,494,860
1,600,000
-4,802,130
73,717,527
1,400,000
-5,235,975
76,650,034
1,200,000
-5,405,000
79,646,122
1,000,000
-5,505,196
82,790,410
800,000
-5,018,922
86,823,898
600,000
-5,799,298
90,151,297
400,000
-6,148,405
93,328,935
200,000
-6,372,405
96,506,573
0
-5,841,702
96,506,573
0
-5,853,202
96,506,573
Net cashflow
60,561,661
63,034,397
65,507,133
68,915,397
71,414,059
74,241,122
77,285,214
81,804,976
84,351,999
87,180,530
90,134,168
90,664,872
90,653,372
Net Present Value

The first year
7,375,911.00
The second year
16,024,092.00
The third year
26,511,209.00
The forth year
55,182,184.00
The fifth year
90,653,372.00
NPV
26,230,097.77
Rate: 0.12
Time 5 year
Initial cash outlay 12,000,000
IRR
Interest Rate Return is 91%
109
Chapter 6
Risk Management
110
Risk Management
Risk concerns the expected value of one or more results of one or more future events and
situation. Results may be positive or negative. Risk may occur under many limited of
recourses both inside and outside the company such as companys decision, budget, time, or
special technical. However, general usage tends focus only on potential harm that may arise
from a future event, which may accrue either from incurring a cost ("downside risk") or by
failing to attain some benefit ("upside risk"). Risk can occur all the time from uncertainty of
companys environment and the limit of resources so the company have to find the causes of
risk and try to face or reduce it to work with the potential performance and meet the
companys goal.
1. Business risk
Business risk is the internal risk from the changing or uncertain of unexpected results which
related
with
the
return
on
investment
of
the
company
properties.
The factors of business risk as follow:

1. Demand Variability: If demand of purchasing power is lower. It will lead to risk to the
company. In the other hand, if the company has the number of sales and the certainty of
selling price that will reduce the occurring of the risk.
2. Sale price variability is the change of price. The reducing prices to get the high number of
sales may be the factors of occurring risk to the company.
3. Input cost variability is the changing in companys costs. In the case of operating costs or
the cost of ordering or importing any products from outside has the high uncertainty of price
so the level of risk is higher also.
4. Fixed costs are the obligation to the company. If the percentage of fixed cost is high but the
demand of the product is low. It may rise the high percentage of occurring risk to the
company.
5. Transportation: Delay, it can occur if traffic jam or car broken. Product may be sent to
customer delay it can make customer not satisfied.
111
2. Operation Risk
The nature of risk in herbal drink company could cause accidents and damage to the
separating people, machines and environmental equipment. Machine can broken if we more
use it and if machine broken during produce the product, we have to use the time for repair it
can make number of the product inadequate to order of customer.
Because if one of the
squash machineseparate water and scraps broken, it can lose production about 10,000 bottle
per day. So the company will reduce the risk by create the good environment of working
place, insurance, training, operational preparation methods and management system. As well
as take care of the machines and people in the company. All process should do in
management system for reducing the impact of risk that will occur to the company.
3. Market Risk
Marketing risk is the risk that customers who do not pay money for product or service
to the company. Herbal plus Company has taken measures to prevent this cause by checking
the history of customers by using customer relationship management and research the condition
of the market. It can help the company to reduce the possibility that risk.
4. Financial Risk
The increasing of risk that relate to the finance structured and cost of capital which
may be added to the business. Increasing of interest rates may affect to the profit and loss of
business, company activities or increase time to pay back to investor. Moreover, the result of
increasing from the tax rate, the company will have to pay more when company revenue
increased.
5. Economic risk
Thailand Investment Year
2008-2009, the government has designated 2008-2009 as
Thailand Investment Year 2008-2009to restore the investors confidence, to promote

investment in target industries and to stimulate the entrepreneurs development to enhance
Thailands overall competitiveness. However, from the current state of political change to the
management aspects of the government halt. Then it resulted in the local economy falls into a
stagnant situation. Investors both local and foreign did not dare to invest in Thailand.
112
Moreover, high oil crisis, the lives of the people there is nothing clear and stable. The
expense will be worth the benefits to be derived from products as much as possible.
GDP Growth Rate, the Gross Domestic Product (GDP) in Thailand contracted 0.20
percent in the third quarter of 2010 over the previous quarter. From 1993 until 2010,
Thailand's average quarterly GDP Growth was 0.97 percent reaching an historical high of
7.10 percent in September of 1993 and a record low of -5.10 percent in March of 1998. The
economy of Thailand is an emerging economy which is heavily export-dependent, with
exports accounting for more than two thirds of gross domestic product (GDP). Welldeveloped infrastructure, a free-enterprise economy, and generally pro-investment policies,
made Thailand one of East Asia's best performers. However, overall economic growth has
fallen sharply in 2008 and 2009 as global downturn and persistent political crisis stalled
infrastructure mega-projects, eroded investor and consumer confidence.
Figure 6.1: To showed Thailand GDP growth rate

The average inflation rate in Thailand was 2.51 percent reaching an historical high of 9.20 percent in
July of 2008 and a record low of -4.40 percent in July of 2009. Inflation rate refers to a general rise in
prices measured against a standard level of purchasing power. The most well known measures of
Inflation are the CPI which measures consumer prices, and the GDP deflator, which measures inflation
in the whole of the domestic economy. All of these are external risk to our company that is possible of
economic activities. So, we have method for cope these activities that are less costs of producing the
product and still maintain standard quality of product.
113
6. Competition risk
The increased competition has made the strategic risks and other risks although; there
are no changes in internal factors. Competitors in the same industry are affecting to our
company such as Tipco, Unif, or UFC. All of these are big company that growth rapidly; so it
is risk to our company. In addition, the entry of new competitors, current customers are
interested in herbal drink more healthily. Process producing herbal drink is not difficult. So,
investors are interested to invest more in the industry. Alternative product of our company is
juice and other beverage that concern health. It have affects to our company because of the
most customer attend in health as well. However, our company is exposed to risks from
market consolidation and strategic alliances amongst competitors and/or retailers. This can
result in a reduction of our bargaining power, or harmful competitive behavior such as price
wars. In such a case, the organization will have to work hard and tighten. For maintain their
competitive position. While, market volatility increased that can be market risk and liquidity
of the organization.To moderate this risk, we are committed to maintaining a regionally
balanced sales mix and continually adapting the Groups distribution strategy. The negative
real economy effects from the economic downturn and the uncertain outlook for 2010 are
expected to put further pressure on the sporting goods industry to consolidate. Moreover,
with improving credit market conditions the merger and acquisition environment is expected
to improve slightly. Many retailers and competitor positions have weakened due to declining
sales and earnings during the prior year. Therefore, we continue to see risks from market
consolidation as having a high likelihood of occurrence. We continue to view the potential
impact on both Group sales and profitability as medium.
These risks can affect to sale decrease especially business risk, economic risk and competition risk.
If sale decrease 2.5 % (See Table 6.1.1-6.1.5)
If sale decrease 5%
(See Table 6.2.1-6.2.5)
If sale decrease 7.5 % (See Table 6.3.1-6.3.5)
114
How to Manage Risk in our Business
1. Writing business plan.

2. Go through business plan critically looking at every area that could involve risk, making a
list of what areas that needs to consider.
3. Take time, preferably with others who know our business, to brainstorm all the possible
risk that might occur.
4. From lists developed in steps2 and3, decide what action or coverage is needed to handle
that possibility.
5. Train all employees in what to do in any if any of these (or other) emergencies arise.
6. Put the plan in a place where it can be located quickly, if needed. Have an extra copy in a
safe location.
7. Review the plan annually, including input from all employee
115
Chapter 7
Summary
116
Summary
Our company produce herbal juice 5 tastes are ginger juice, lemongrass juice, aloe
juice, Roselle juice and Asiatic Pennywort juice. We have five direct competitors such as
Tipco, Malee, Unif, Doi kham and UFC. For about indirect competitors they are competitor
in Chaingmai such as Chiang Mai M.T. Foods Co., Ltd, Mocktail & Spa Drink @ food dcor,
Sweet-Tree fruit juice and Intra herbal drink. For about customer, Our company divided the
customer into two groups; the first group is working people who are between 25-50 years old.
This group who prefer herbal drink and want take care about their health. The second group
is people who want control weighs which the most customers in this group are teens take care
about their shape to make them good looking. In term of Segmentation, we use Demographic
segmentation: Our group refers to population in Chiang mai in 2009. All these people are
1,632,548. Psychological segmentation: Life style, it is about people who love to take care
themselves and play attention to maintain health. Behavior segmentation: we can divide into
four kinds. The first one, they like strange product, different taste from general taste of herbal
drink. The second they think of taste, it the group that like taste of herbal drink and it the first
factor for consider when choose to consume the herbal drink. The third, its the healthy
group. The last one, its the brand loyalty customer. Target Market, our target market divided
two groups; the first group is people who love to take care themselves and the second group
is customer group who concerns about control weigh. Position of the product is high quality
and medium price that everybody can buy it. For about investment, initial investment of our
company is 7,386,526 baht. NPV is 26,230,097.77 ( rate 12% and time 5 year) and Interest
Rate Return is 91%. For pay back period, our company can pay back 1 year and 8 month
since we start our business.
Figure 7.1 profit and

loss statement
117
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125
Appendix
126
If sale decrease 2.5 %
Year 1
44,499,000
33,737,568
10,761,432
3,250,800
757,710
150,500
70,000
2,400,000
288,000
43,386,525
33,737,568
9,648,957
3,250,800
757,710
150,500
70,000
2,400,000
288,000
26,820,558
2,345,950
26,820,558
2,345,950
9,262,960
1,498,472
9,262,960
385,997
Table. 6.1.1
Year 2
107,440,320
80,009,678
27,430,642
5,572,800
1,317,000
356,400
120,000
2,400,000
288,000
104,754,312
80,009,678
24,744,634
5,572,800
1,317,000
356,400
120,000
2,400,000
288,000
69,955,478
5,542,640
5,542,640
15,596,840
11,833,801
Table 6.1.2
69,955,478
15,596,840
9,147,793
127
Year 3
125,381,880
92,385,691
32,996,189
5,572,800
1,065,000
446,400
120,000
2,400,000
581,037
122,247,333
92,385,691
29,861,642
5,572,800
1,065,000
446,400
120,000
2,400,000
581,037
82,200,454
6,409,906
82,200,454
6,409,906
16,595,143
16,401,045
16,595,143
13,266,498
Table 6.1.3
Year 4
140,359,440
104,468,683
35,890,757
5,572,800
999,000
536,400
120,000
2,400,000
288,000
136,850,454
104,468,683
32,381,771
5,572,800
999,000
536,400
120,000
2,400,000
288,000
94,552,483
7,255,576
94,552,483
7,255,576
17,171,776
17,171,776
18,718,981
15,209,995
Table 6.1.4
Year 5
128
157,290,120
115,955,770
41,334,350
5,572,800
999,000
632,400
120,000
2,400,000
288,000
153,357,867
115,955,770
37,402,097
5,572,800
999,000
632,400
120,000
2,400,000
288,000
105,943,570
8,059,112
105,943,570
8,059,112
18,071,312
23,263,039
19,330,786
71,715,338
57,341,069
18,071,312
Table 6.1.5
If sale decrease 5 %
Year 1
44,499,000
33,737,568
10,761,432
3,250,800
757,710
150,500
70,000
2,400,000
288,000
42,274,050
33,737,568
8,536,482
3,250,800
757,710
150,500
70,000
2,400,000
288,000
26,820,558
2,345,950
26,820,558
2,345,950
9,262,960
1,498,472
9,262,960
-726,478
Table 6.2.1
Year 2
129
107,440,320
80,009,678
27,430,642
5,572,800
1,317,000
356,400
120,000
2,400,000
288,000
102,068,304
80,009,678
22,058,626
5,572,800
1,317,000
356,400
120,000
2,400,000
288,000
69,955,478
5,542,640
69,955,478
5,542,640
15,596,840
11,833,801
15,596,840
6,461,785
Table 6.2.2
Year 3
125,381,880
92,385,691
32,996,189
5,572,800
1,065,000
446,400
120,000
2,400,000
581,037
119,112,786
92,385,691
26,727,095
5,572,800
1,065,000
446,400
120,000
2,400,000
581,037
82,200,454
6,409,906
82,200,454
6,409,906
16,595,143
16,401,045
16,595,143
10,131,951
Table 6.2.3
Year 4
140,359,440
104,468,683
133,341,468
104,468,683
130
35,890,757
5,572,800
999,000
536,400
120,000
2,400,000
288,000
28,872,785
5,572,800
999,000
536,400
120,000
2,400,000
288,000
94,552,483
7,255,576
94,552,483
7,255,576
17,171,776
17,171,776
18,718,981
11,701,009
Table 6.2.4
Year 5
157,290,120
115,955,770
41,334,350
5,572,800
999,000
632,400
120,000
2,400,000
288,000
149,425,614
115,955,770
33,469,844
5,572,800
999,000
632,400
120,000
2,400,000
288,000
105,943,570
8,059,112
105,943,570
8,059,112
18,071,312
23,263,039
15,398,533
71,715,338
42,966,800
18,071,312
Table 6.2.5

Year 1
44,499,000
33,737,568
10,761,432

41,161,575
33,737,568
7,424,007
131
3,250,800
757,710
150,500
70,000
2,400,000
288,000
3,250,800
757,710
150,500
70,000
2,400,000
288,000
26,820,558
2,345,950
26,820,558
2,345,950
9,262,960
1,498,472
9,262,960
-1,838,953
Table 6.31
Year 2
107,440,320
80,009,678
27,430,642
5,572,800
1,317,000
356,400
120,000
2,400,000
288,000
99,382,296
80,009,678
19,372,618
5,572,800
1,317,000
356,400
120,000
2,400,000
288,000
69,955,478
5,542,640
69,955,478
5,542,640
15,596,840
11,833,801
15,596,840
3,775,777
Table 6.3.2
Year 3
125,381,880
92,385,691
32,996,189
5,572,800
115,978,239
92,385,691
23,592,548
5,572,800
132
1,065,000
446,400
120,000
2,400,000
581,037
1,065,000
446,400
120,000
2,400,000
581,037
82,200,454
6,409,906
82,200,454
6,409,906
16,595,143
16,401,045
16,595,143
6,997,404
Table 6.3.3
Year 4
140,359,440
104,468,683
35,890,757
5,572,800
999,000
536,400
120,000
2,400,000
288,000
129,832,482
104,468,683
25,363,799
5,572,800
999,000
536,400
120,000
2,400,000
288,000
94,552,483
7,255,576
94,552,483
7,255,576
17,171,776
17,171,776
18,718,981
8,192,023
Table 6.3.4
Year 5
157,290,120
115,955,770
41,334,350
5,572,800
999,000
632,400
145,493,361
115,955,770
29,537,591
5,572,800
999,000
632,400
133
120,000
2,400,000
288,000
120,000
2,400,000
288,000
105,943,570
8,059,112
Table 6.3.5
105,943,570
8,059,112
18,071,312
23,263,039
11,466,280
71,715,338
28,592,531
18,071,312
134
Member of group
Miss. Prapasiri
Suttipan
ID. 5131205140
E-mail: kew_mfutour51@hotmail.com Tel. 0897297121
Miss. Rangsima Susangeim
ID. 5131205168
E-mail: vhan5-5_infante@hotmail.com Tel. 0820281492
Miss Sudarat
Napikun
ID 5131205193
E-mail: buttercup_jp_13@hotmail.com
Miss Suparat
Homnan
E-mail: amigo_moji69@hotmail.com
Miss Sumitra
Homnan
E-mail: muttastroberry@hotmail.com
Tel. 0843638557
ID 5131205197
Tel. 0835780558
ID 5131205198
Tel. 0854467278

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Section 02

Miss. Rangsima Susangeim

Project Feasibility Study and Evaluation 1203302

-Background and Significance of the Project

-Gantt chart and Time frame of the study

Chapter 2: Industry Profile

Chapter 3: Market Feasibility Study

- Competition Analysis (3C Analysis)

-Marketing Mix Strategy

-Sales Forecast/Profit Estimation

Chapter 4: Technical Feasibility Study

- Specification, Feathers, Dimension, Life Time, etc

-Transport & Traffic

-Material Handling and Transportation

Chapter 5: Financial Analysis

Chapter 6: Risk Management

-How to Manage Risk in our Business

The background herbals usability in Thailand.

Thailand has appropriate climate to grow up of several plants, especially

Benefit of herbs there are

The benefits of herbal juice.

Figure 2.1 economic 2009

However, on the positive notes, in March and April 2009,

Gross Provincial Product (GPP 2009)

Analysis the situation: Healthy beverage market.

Besides, consumer request about taste of beverage. Which

with herb such as Tiliacora Triandra Diels, Houttuynai Cordata

thumb, Thungergia Lauri Folia, Morus etc.

Asiatic Pennywort juice

Price differentiation: The environment of Herbal plus company has high

Transportation differentiation: We provide transportation for deliver an order

Technology differentiation: we provide the high technology for production process

Using the efficiency machine when produce the product.

Choose the best raw material and ingredients.

Emphasize both quality and quantity.

Standard taste of product.

Market Feasibility Study

Consumer products 2009 in Chiang mai

The government has designated 2008-2009 as Thailand Investment Year

Location for registration

Food and Drug administration

Social and environment

Grinding that use by hand of human. It can

grind raw material to high quality and get standard ingredient.

Pasteurizer Machine 3 Tanks

Close lid machine

Squash machine- separate water and scraps

Competition Analysis (3C Analysis)

Innovative Production Technology, the company developed its production

It has been promotion for attract customer in product.

It has certifications of world recognized standards in safety and quality of

It has more competitors in market.

It set priced as standard which are difficult to negotiate product of supplier.

This product sell both inbound and outbound.

It set priced as standard which are difficult to negotiate product of supplier.

The last one, Doikham establish on 1972. It has more product

Doikham received certification standard that there are ISO 9001:2000

Product Name: herbal drink

Mocktail & Spa Drink @ food decor