MILKERY“Milk and Bakery Shop”

Milkery> A Thailand-based “milk shop business” and bakery

> Located in front of Mae Fah Luang University

> Target group primarily focused on university students

CRITERIA NOTES EVALUATION

General

Long-term of the project

Soundness and reliability of all bases

CRITERIA NOTES EVALUATION

General

Quality of project study report

Thoroughness in details manifesting diligent research work

CRITERIA NOTES EVALUATION

Marketing Aspect

Realism of market data/validity of assumptions

Appropriateness of market survey design

CRITERIA NOTES EVALUATION

Marketing Aspect

Soundness of marketing program and strategy

Rationality of pricing strategy

CRITERIA NOTES EVALUATION

Marketing Aspect

Competitive edge of product

CRITERIA NOTES EVALUATION

Technical Aspect

Efficiency of production operations

Realistic production rates, yields, and cost

CRITERIA NOTES EVALUATION

Technical Aspect

Quality control integration with the production operations

Safety considerations

CRITERIA NOTES EVALUATION

Technical Aspect

Environmental impact

CRITERIA NOTES EVALUATION

Financial Aspect

Consistency of financial projections with the technical and market projections

All financial information in the Financial Analysis are consistent with other parts of the study, except:> The breakdown of Investment Costs> Administration Costs

Inconsistent data could lead to inaccurate and misleading information, which could ultimately result in improper decision making.

Economic viability/feasibility in terms of IRR NPV and/or payback period is within acceptable and realistic range for the industry

> Absence of comparative data> Incorrect application of net cash inflows in computing NPV, IRR, and payback period> The study uses 4% as its discount rate

> Difficulty in understanding level of competitiveness in the industry and assessing position in the market> Net Cash Inflow to be used in the computation of payback period, NPV and IRR should reflect projected net cash inflows for each specific year> For a more accurate result, the rate to be used in the computation of NPV should be the weighted average cost of capital (WACC)

CRITERIA NOTES EVALUATION

Financial Aspect

Sensitivity of economic feasibility to changes/ variabilities in the values of the forecast parameters

The study includes a sensitivity analysis as to decrease in sales, increase in costs and increase in interest for 5 years.

This is a relevant and useful method of contingency so that a more realistic estimate of future operations can be reasonably assured

Appropriateness and accuracy of the valuation of economic feasibility and the attendant financial statements

Statement of Cash Flows include Depreciation Expense as a cash outflow

Depreciation charges should be not be deducted from the Statement of Cash Flows

CRITERIA NOTES EVALUATION

Organization Management

Identification and staffing of key result areas of the organization

Effectiveness of organizational structure toward attainment of corporate objectives

CRITERIA NOTES EVALUATION

Organization Management

Policies formulated in accordance with the accepted principles of professional management