Chapter 1

Introduction

1.1 Background and Significance of the project

Current market growth business food snacks or light food, including coffee drinks,

bakery and ice cream are marked by "Business Ice Cream" is a business that has been the

focus of the new SME. Because coffee and bakery business has many competitors in the

market. While the ice cream, especially homemade ice cream. Has recently been very popular

during the past few years. Homemade ice cream is a good alternative way. Considering all

the factors in the product model, Process, Channel, Branding, Investment budget and market

share. Homemade ice cream business is the hottest.

However, the production of homemade ice cream to enter the few of restaurants or

hotels. But at present Homemade ice cream market grew more than 40 percent per year and

has a market capitalization of approximately U.S. $ 1,635 million, with 30.0 percent of the

total market value of premium ice cream. (Expected market value of about 5,450 million),

due to the variety of flavors and forms a unique ice cream shop. The sale price is not

expensive. The use of quality raw materials. Selection is based on the creative use of

materials. The amount of investment is not very high compared to ice cream, but the plant is

still limited in terms of brands that are not known to the general consumer. Including the

number of branches and production volume may not be sufficient to meet the needs of

consumers.

Our Ice cream Homemade Shop ,Ice cream started as natural healthy food for

everyone(especially kids, woman, dieter, patient). It deals with ice cream manufacturing. It

has a single manufacturing plant at Chiang Mai from which ice creams are daily sent to the

shop. The ice cream, which is made of natural flavor and also fruits should be consumed

within 10 days of manufacture. The problem we faced is from the competitors, lacking

innovation strategies, proper segmentation and targeting.

We want to make a one of brand name as a major ice cream brand in Thailand; Strong brand

equity has become a very important factor that influences consumer's perception of a brand.

Success in brand management arises from understanding and managing brand equity

correctly to produce strong attributes that will influence the brand name. Chiang Mai city is

located in Thailand’s northern most famous province. It will make easily to grow up our

brand.

1 http://www.icecreamfanclub.com/index.php?mo=3&art=41991296

2 http://www.tei.or.th/w_cc/ACCCRN/2012-ACCCRN_CR_eng.pdf

Our strategy to create a homemade ice cream

1. Product Differentiation

New ice cream flavors with fruit such as coconut, orange, passion fruit and herbs like

a green tea, mulberry tea and etc.

2. Price Differentiation

The material is limited and expensive. It causes the high price of homemade ice-

cream. Homemade ice-cream flavors are shifted to higher than normal too. Now selling

homemade ice-cream with a scoop on average is 35-50 baht in Chiang Mai, Thailand. But our

shop is planning to choose good materials and making low cost also, not expensive price of

product average 15-25 bath.

3. Chanel Differentiation

Homemade taste that makes a lot of people wants eat at nice place. So we are thinking

about the shop design and also, caring about the customers who want to bring it out.

The location that is the target to be a center large enough to give customers the opportunity

and we planning our target is a group of students. Our shop is easy to access with the target.

The marketing strategy is to make a difference. Important component of a homemade

ice-cream is to serve the staff attentive and polite manners of the staff have a good

relationship. They will be influence to consumer to choice ice cream. The atmosphere of the

restaurant can make an impression and experience for the consumer. Therefore, the

decoration must emphasize the exotic and modern and must be unique, consistent with the

behavior of different groups of customers away.

1.2 Project objectives

1. To study planning of the business and to do the business successful.

2. To study the technical and management business.

3. To study for getting a profit and return on investment of the business.

4. To study the situation of ice cream business in Chiang Mai.

5. To study the method how to make homemade ice Cream.

6. To summary of the feasibility of Ice cream business.

1.3 Benefits of Project

1. To get the knowledge about administration of business.

2. To learn the technical and management the business.

3. Able to apply the business for getting a profit and return on investment.

4. To learn the situation of Ice cream business in Chiang Mai.

5. To know the method how to make homemade ice cream.

6. To know the feasibility of Ice cream business.

1.4 Activities/Time Frame

1. Planning and preparing of Ice cream business.

2. To study the generally of Ice cream business

- Background of Ice cream.

- Product of Ice cream.

3. To study management of Ice cream business.

- Vision and mission of Ice cream business.

- Strategy of Ice cream business.

4. To study competition analysis and marketing feasibility of Ice cream business.

5. To study the technical process of Ice cream business.

- Location

- Operations and management analysis

- Investment and Operation cost

6. To study the financial feasibility Profit and loss statement of Ice cream business.

- Investment cost and expense of Ice cream business.

- Profit and loss statement of Ice cream business.

7. To study analysis risk of Ice cream business.

8. Summary the feasibility of Ice cream business.

Table1.1: Time frames, since November 2012 - February 2013

Operations methods November December January February

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

1. Planning and preparing of Ice cream

business.

2. To study the generally of Ice cream

business

3. To study management of Ice cream

business.

4. To study competition analysis and

marketing feasibility of Ice cream

business.

5. To study the technical process of Ice

cream business.

6. To study the financial feasibility

Profit and loss statement of Ice cream

business.

7. To study analysis risk of Ice cream

business.

8. Summary the feasibility of Ice cream

business.

Chapter 2

Industry Profile

2.1 Nature of Industry

Ice cream is a frozen dessert usually made from dairy products, such as milk and

cream, and often combined with fruits or other ingredients and flavors. Most varieties

contain sugar, although some are made with other sweeteners. In some cases,

artificial flavorings and colourings are used in addition to, or instead of, the natural

ingredients. The mixture of chosen ingredients is stirred slowly while cooling, in order to

incorporate air and to prevent large ice crystals from forming. The result is smoothly textured

semi-solid foam that is malleable and can be scooped.

All kind of liquid are called beverage. Beverage is any kind of liquid. We are always

talking water. Water is beverage item. Water, tea, coffee, milk, actually, beverage means any

kind of Liquid item.

Dessert is the usually sweet course that concludes a meal. The food that composes the

dessert course includes but is not limited to sweet foods. There is a wide variety of desserts in

western cultures now including cakes, cookies, biscuits, gelatins, pastries, ice creams, pies,

pudding, and candies. Fruit is also commonly found in dessert courses because of its natural

sweetness.

Toast is bread that has been browned by exposure to radiant heat. This browning is

the result of a Maillard reaction. Toasting warms the bread and makes it firmer, so it holds

toppings more securely. Toasting is a common method of making stale bread more palatable.

1 http://fandbfood.com/what-is-beverage/

2 http://nutriliciousdesserts.weebly.com/desserts.html

3 http://combosaurus.com/interest/toast

History of Ice Cream

The origins of ice cream can be traced back to at least the 4th century B.C. Early

references include the Roman emperor Nero (A.D. 37-68) who ordered ice to be brought

from the mountains and combined with fruit toppings, and King Tang (A.D. 618-97) of

Shang, China who had a method of creating ice and milk concoctions. Ice cream was likely

brought from China back to Europe. Over time, recipes for ices, sherbets, and milk ices

evolved and served in the fashionable Italian and French royal courts.

After the dessert was imported to the United States, it was served by several famous

Americans. George Washington and Thomas Jefferson served it to their guests. In 1700,

Governor Bladen of Maryland was recorded as having served it to his guests. In 1774, a

London caterer named Philip Lenzi announced in a New York newspaper that he would be

offering for sale various confections, including ice cream. Dolly Madison served it in 1812.

1 http://inventors.about.com/od/foodrelatedinventions/a/ice_cream.htm

2.1.1 The Company of Ice Cream in Thailand

Nestlé

Nestlé

...the world's leading Nutrition, Health and Wellness Company. Our mission of "Good

Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a

wide range of food and beverage categories and eating occasions, from morning to night.

The Company was founded in 1866 by Henri Nestlé in Vevey, Switzerland, where our

headquarters are still located today. We employ around 280 000 people and have factories or

operations in almost every country in the world.

The Nestlé Corporate Business Principles are at the basis of our company’s culture,

developed over 140 years, which reflects the ideas of fairness, honesty and long-term

thinking.

1 http://www.nestle.co.th/en/nhw/Pages/nhw2.aspx

Swensen's

Swensen's

In 1948, Earle Swensen opened his first Ice Cream Shoppe in San Francisco atop

Russian Hill offering his ice cream as "Good as Father Used to Make". Little did he realize

that Swensen's would today, be a name synonymous with extraordinary delicious ice cream

the world had ever known.

Since then, for more then 60 years, more than 180 flavours of ice cream have been

created and enjoyed by both young and old, making Earle Swensen's America's, “Ice Cream

Man". Ice cream lovers certainly agreed because today, there are over 300 Swensen's ice

cream outlets worldwide, including Asia, the Middle East, USA and South America.

Swensen’s was the first national Ice Cream Parlor to serve a premium ice cream that

is all natural. The business was built and continues to be built on three founding principles

that have never changed: Quality, Quantity and Value for Money. From full service, old-

fashioned food stores to modern kiosks, we offer franchisees a range of sweet opportunities.

Two types of Swensen’s offerings have evolved throughout the years, the Swensen’s

restaurant and Swensen’s ice cream parlour.

1 http://www.swensens.com/

Cremo

Cremo

We produce a wide range of ice-cream products to suit every taste bud. Our product

are made from quality ingredients using the latest modern machinery. We manufacture ice-

cream products under the "CREMO" brand and co-pack fot others.

Our ice-cream business straegy is based on three main points: product, service and

price and this has proved to be the winning strategy for Chomthana Co.,Ltd. to remain as a

leading ice-cream company in Thailand for the past 30 years.

1 http://www.icecremo.com/index.php?option=com_content&view=article&id=9

Wall’s

Wall’s

Wall's is a United Kingdom-originated food brand covering, owned by Unilever.

Wall's itself is now core to Unilever's Heartbrandglobal ice cream business, used currently

in China, Hong

Kong, India, Indonesia, Italy, Austria, Jordan, Lebanon, Malaysia,[2]

Maldives, Mauritius, Mé

xico, Pakistan,[3]

Portugal, Philippines, Qatar, Saudi Arabia, Spain, Singapore, Sri

Lanka, Thailand, Turkey,United Arab Emirates and Vietnam.

1 http://www.wallssharehappythailand.com/index.php

Dairy Queen

Dairy Queen

American Dairy Queen Corporation is a subsidiary of Berkshire Hathaway,

Inc. DQ®

operators have been providing consumers with crave-satisfying treats and food

since 1940.

1 http://www.dairyqueen.com/us-en/Company/About-Us/

2.2.2 Ice Cream Homemade shops in Thailand

Baan I-Tim

Restaurant: Baan I-Tim

Location: 32/50 Ngamwongwan Rd.

Tel: 081-765-5706 , 086-192-3584

Website: www.facebook.com/banitim.

Open: 11:30 am to 07:00 pm

1 http://www.banitim.com/webboard/index.php?topic=14.0

Yingdeaw Homemade

Restaurant: Yingdeaw Homemade; Cake and Icecream

Location: Siam square,soi5 @Somtam Nua, Kaset Nawamin Rd.

Tel: 02-658-0148 / 089-676-7876

Email: member@iberryhomemade.com

Website: https://www.facebook.com/yingdeaw.homemade

Open: Mon.-Fri. 12:00 am -09:30 pm.

Sat.-Sun. 11:00 am-09:30 pm.

1 http://travel.sanook.com/939280/yingdeaw-homemade

2.2.3 Ice Cream Homemade Shops in Chiang Mai

Iberry

“i” which stands for ice cream and “berry”, of course for berries, is the origin of this

home-grown ice cream shop. The shops are very prolific throughout Thailand, and offer more

than 100 different ice cream flavours made from fresh raw materials and natural fruits,

especially Thai tropical fruits such as madun, gra-ton, gooseberry, tamarind, litchi, durian,

mango, etc. The shops also offer a wide range of home-made cakes, fruit smoothies and

fabulous coffee.

Restaurant: Iberry, Chiang Mai

Location: Nimmana Haeminda Lane 17

Tel: 053 - 895171

Email: member@iberryhomemade.com

Website: http://www.iberryhomemade.com

Open: 10:30 am to 10:00 pm

http://www.bangkokpost.com/food/restaurants/listing/iberry-chiang-mai/12675/

Sesto' ice cream

Sesto’ is a based on Italian ice-cream (Gelato) with unique procedure and

manufacturing by Sesto’. All of ingredients come from nature around the world for instance,

Fresh milk, Fresh cream, Butter, Nuts or even Fresh fruits. Those ingredients our

manufacture can control the quality of ice-cream as well as we can make it 92-96% of fat free

in milk’s flavour and 100% fat free in all of fruits flavour. Moreover, it is infinity to make

more flavours at the moment. In fact , with 80% of all ingredients we imported that effected

to the prices of our ice-cream slightly higher than others ice-cream on the market. However,

those ingredients that we are imported culminate in much more flavours and nutrition facts

such as Calcium and Mineral in our milk and Vitamins in our fresh fruits.

Furthermore, the important thing is traditional gelato definitely tough and smooth that

is why we imported from reputation brand on the market and they also can processing

multiple flavours than other ice-cream industries thereby 40 flavours of gelato ice-cream have

been launched in this moment.

Restaurant: Sesto' ice cream

Location: F136 89/2 Chang Klan Rd.

Tel: 089-5591221 / 086-7281850

Email: sestoicecream@gmail.com

Website: www.sestoicecream.com

http://www.sestoicecream.com/

The bakery oasis

This nice little restaurant/bakery is just across the Nawarat bridge and down a small

side street. Great range of desserts for those with a sweet tooth and the coffee (latte) was the

best that I've had in Chiang Mai. Slightly dearer than many of the coffee places in town, but

in my opinion, well worth it. Coffee was served in a lovely cup and saucer, in fact, I liked it

so much, I bought one! What I liked most about this place is, the lovely peaceful feel to the

place - nice music, the sound of birds chirping and just a nice ambience about the place.

Restaurant: The Bakery Oasis, Chiang Mai

Location: 49/16 Huay Kaew Rd.

Tel: 084 6147010,053 217940

Email: icecream.chiangmai @ gmail.com

Website: www. Icecream-chiangmai.com

Open: 11:00 am to 09:00 pm

http://www.icecream-chiangmai.com/

Johoney

Ice Cream for healthy. We have carefully selected quality raw materials made fresh

daily. Homemade ice cream is low fat. The combination of Italian gelato and Thai fruit.

There is also a variety of drinks such as coffee, tea, smoothies can be refreshing or relax in

comfort.

Restaurant: Johoney : Homemade Ice Cream & Coffee

Location: 46/1 Sanpakoi Rd.

Tel: 053-247229, 084-1692031

Email: johoney.itim@gmail.com

Website: https://www.facebook.com/johoneyicecream/

Open: 09:00 am to 06:00 pm

2.2.3 Types of Homemade Ice Cream

Custard Style Homemade Ice Cream

Custard style ice cream is made with a custard base, which contains egg yolks,

cream, milk, sugar, and flavoring ingredients. Custard style ice cream provides for a

smoother texture and richer flavor than ice cream made without eggs but it also contains

more fat. Other ingredients can be added; such as fruits, candys, cookies, nuts, and other

flavorings. Just use your imagination to create your own special treat.

Non-Custard Style Ice Cream

Non-custard style ice cream is made without eggs and does not call for the careful

cooking that the custard style ice cream requires. Even though the non-custard style ice cream

is not as smooth, it can still have a wonderfully rich flavor. It will contain less fat than the

custard style and there are lighter versions that can be made using ingredients, such as half &

half, whole milk, low fat milk, and yogurt, rather than heavy cream.

Non-Custard Style Ice Cream Without Ice Cream Maker

Making homemade ice cream can be done without the use of an ice cream maker.

Instead, an electric hand mixer can be used to break up the ice crystals during the freezing

process. The mixture can also be hand beaten using a fork or whisk; or a food processor can

be used. Using a custard style ice cream recipe will will provide for a smoother ice cream

when using this method but using a non-custard recipe makes it very easy for anyone to make

a delicious homemade ice cream.

1 http://www.recipetips.com/kitchen-tips/t--1381/types-of-homemade-ice-cream.asp

2.2.4 Type of Dessert

Bread Toast

Bread toast mean bring bread which apply margarine to grill and apply yam or

topping when grill finish.

Hot Milk

Hot Milk is popular menu in winter season we bring fresh milk to boil and add

sugar for good taste.

Hot Tea

Hot tea have three type 1. Thai tea 2.Green tea 3. Green tea add milk

Made by boil water and pour to glass add tea powder.

Nham Kheng Sai

Nham Kheng sai mean ice with many topping mix in a bowl.

2.2 Situation of industry

With the hot weather of the year our country. As a good result of ice cream

homemade. We can see that from a young age. Ice cream does not have much variety and

enjoyed as much as this but the ice cream business has progressed greatly. The novelty is that

we always enjoy this is a favorable factor. The business is growing of the expansion of the

company's ice cream factory, foreign giants. Sales of ice cream franchises leading to different

countries. Including ice cream is homemade with acculturation to the source created their

own brands in Thailand itself with innovative ice cream machine to make a simple and

delicious ice cream. These good results and have a choice of multiple channels.

Ice cream is a multi-level marketing is.

- Ice cream, premium, such as Haagen Dazs , Swensens , Bud's Ice Cream , Cream and

Fudge , Baskin Robbins, Dairy Queen etc. The Bank Thailand Commercial analyzed it in

2550 as market cream application. this premium. Approximately $ 3 billion and a growth rate

of about 10%, which is quite good as the old. However, this market is also sensitive to

economic fluctuations in the market will also have to rely on a group of tourists.

- Ice cream with the ice cream scoop gelato or ice cream at the store, etc. Is the largest

group. Worth about U.S. $ 7 billion, but the growth rate of 3-5%, although growth is not very

high, but it is the most interesting market.

- Ice cream are normal level the consumer can buy , such as IBerry, I-Maru, Melt Me,

Ice Manias , Onemore ,the ice cream cart and coconut ice cream etc. This is an industrial

manufacturer with the most number representing 78% of all ice cream. For market value is

estimated that about 1 billion baht per year. This is a high growth market. But this market is

being infiltrators from the major manufacturers. A strong brand.

However, like all businesses, major hurdles. It is a matter of economy. And the

political impact of this business.

Now, this is very interesting started a coffee business. They have recently started to

make ice cream. Then gradually move up the year, very hot because the costs are low. Market

and most people know that WALL’S. They began to realize that Homemade ice cream is

easily made and got a idea Thailand has many kinds of fruit. It was made into a market one

way to make homemade ice cream is a creative idea. Creation is a brand of its own flavor,

perfect legs more and more. Considered to be a very attractive market and the quality and

service must have to good in ice cream business because it is the most important factor. Then

the rest will follow is to have the commitment and passion will succeed.

Ice cream homemade competition in Chiang mai

- Ice cream IBerry

- Ice cream Ice VillaA

Because 2 competitor are make ice cream homemade not expensive and they have

good delicious. They have many big shop in Chiang Mai .

2.3 Product/Service (in General)

Now a day the people can be found ice cream in almost every restaurant, store,

supermarkets and specialty shops but it is ice cream from company such as Wall’s, Nestlé's,

Cremo and Eskimo etc.

The most of people must have free time at noon or after school, after worker and

holiday. They want to living and relax someplace. I-Tim shop want to be one part help to

support them. I-Tim shop the products are Ice Cream Homemade and many topping which

contain high quality ingredient and fresh, clean.

I-Tim shop provides catering that the customer can select many toping for one’s ice cream. I-

Tim shop not hard to found and not too much expensive. Our business have promote on

internet, brochure, etc.

Nowadays service is the contribution to attract the customers. We train the employees

and concern about service mind. Customers can choose many toping by own self. I-Tim shop

is decorated in vintage style and good atmosphere. And we hope the customer nice, happy,

enjoy with many type of ice cream and feel relax when they come to I-Tim shop and satisfy

with our product and service. I-Tim shop opened in everyday at 10:00 am. – 10:00 pm.

There are the product recommend in I-Tim shop

2.3.1 Ice Cream

Coconut Milk Ice Cream Homemade

Coconut milk ice cream is actually made with coconut milk instead of dairy products.

1http://chinesefood.about.com/od/southeastasian/r/coconutice.htm

Green tea Ice Cream Homemade

Green tea is made from steamed and dried tea leaves that, unlike the leaves for black

tea, have not been fermented. Its delicate flavor translates to a light, refreshing ice cream.

After a day or two, the acids that occur naturally in the tea become more pronounced, so it is

best to eat the ice cream soon after making it. Though convenient, tea bags do not make the

best tea, as the leaves are not able to circulate. For better flavor, seek out high-quality loose

tea sold in tea shops or specialty-food stores. Avoid common commercial brands, which are

made from blends of inferior bits of leaves.

1http://www.williams-sonoma.com/recipe/green-tea-ice-cream.html

Bread toast

Toast is most commonly eaten with butter or margarine spread over it, and may be

served with preserves, spreads, or other toppings in addition to or instead of butter. Toast

with jam or marmalade is popular. A few other condiments that can be enjoyed with toast are

chocolate jam, banana jam, strawberry jam.

2.3.2 Topping

Butterfly pea rice (ขาวเหนยวอญชน)

Butterfly Pea (in Thai “un-chan”) widely used in South East Asia. The bright blue

flowers are used to dye rice as natural colorant for food and cosmetics. Because apart from

the color, are rich in blue Proanthocyanin, it is also a natural antioxidant.

1http://www.b-herbs.com

Sweet Corn

Sweet corn, also known as sugar corn, is much used like a vegetable. Its sweet, juicy

kernels are rich in health-benefiting antioxidants, minerals, vitamins. Sweet corn is gluten

free cereal and may be used safely much like rice, quinoa etc, in celiac disease individuals.

1http://www.nutrition-and-you.com/sweet-corn.html

Grass Jelly (chao-guay)

Grass jelly is made by boiling the aged and slightly oxidized stalks and leaves of

Mesona chinensis (member of the mint family) with potassium carbonate for several hours

with a little starch and then cooling the liquid to a jelly-like consistency. This jelly can be cut

into cubes or other forms, and then mixed with syrup to produce a drink or dessert thought to

have cooling (yin) properties, which makes it typically consumed during hot weather. The

jelly itself has a slight bitter taste, a light iodine lavender flavor, and is a translucent black. It

can also be mixed with soy milk to produce a milky white liquid with black strands in it.

1http://kaleidoscope.cultural-china.com/en/8Kaleidoscope5563.html

Black Been

Black beans are a type of small legume with a glossy black shell. They are very high

in fiber, folate, protein, antioxidants, and vitamin B, along with numerous other vitamins and

minerals.

1http://www.wisegeek.com/what-are-black-beans.htm

Palm seeds

Palm seeds are served in sweet syrup and eaten in desserts. The seeds are 1-2 cm. in

length each.

1 http://www.khiewchanta.com/archives/ingredients/thai-vegetables/palm-seed-hearts-look-

chid.html

Peanuts

Peanuts are in fact legumes. Peanuts actually grow underground, as opposed to nuts

like walnuts, almonds, etc. that grow on trees. Peanuts are rich in energy and contain many

health benefiting nutrients, minerals, antioxidants and vitamins that are essential for optimum

health.

1 http://www.peanut-institute.org/peanut-facts/

2http://www.nutrition-and-you.com/peanuts.html

Sweet potato

Sweet potato are high in Vitamin C and A, these tasty items are often considered

healthier than their regular potato counterpart.

1 http://www.yummly.com/recipes/sweetened-yams

Salim (Sweet-noodles in coconut milk syrup)

Salim (Sweet Noodles in Coconut Milk or saleem) is a Thai sweet of multi-colored

mung bean noodles or threads, sweetened with sugar syrup, flavored with jasmine, topped

with coconut milk and served over crushed ice. A traditional favorite kanom of Thailand,

salim noodles are always prepared with mung bean flour.

1 http://www.templeofthai.com/cookware/salim-noodle-coconut-milk-6210000451.php

Bread

Bread is a staple food prepared by cooking dough of flour and water and often

additional ingredients, such as butter or salt to improve the taste.

1 http://en.wikipedia.org/wiki/Bread

Taro

Taro is a root vegetable that is eaten in many different cultures around the world and

has a rich history, with many possible recipes. The leaves of the taro plant are also used as a

vegetable. Taro root is easily digestible and the leaves are a good source of vitamins A and C.

1 http://www.fitday.com/fitness-articles/nutrition/healthy-eating/the-nutrition-of-taro.html#b

Condensed milk

Condensed milk is a highly shelf-stable milk product made by evaporating much of

the water from milk to create a thick, syrupy liquid, and adding sugar to it before canning the

milk in a sterilized can.

1 http://www.wisegeek.com/what-is-condensed-milk.htm

Strawberry jam

Strawberry jam is one of the ultimate culinary nectars, the result of boiling down

fresh seasonal fruit into bold, jewel-toned lava just bursting with concentrated berry flavor.

Strawberries health benefits are also thought to include antioxidant properties.

Research is ongoing, but it appears that the ingestion of this super fruit, increases the level of

uric acid in the body and this alone has antioxidant properties. This is one of the many, by

product, health benefits of this fruit.

1 http://molometer.hubpages.com/hub/Strawberries-health-benefits

BlueberryJam

Blueberry is a good source of vitamin B6, vitamin C, vitamin K, manganese, dietary

fiber and soluble and insoluble fiber like pectin. It contains anthocyanin, phenolic,

antioxidant pigments, phytochemical and ellagic acid, that prevents cell damage,

inflammation and cancers.

1 http://www.buzzle.com/articles/health-benefits-of-blueberries.html

2.4 Vision of your Organization

I-Tim shop will be well known in Chiang Mai at the northern part of Thailand. In

Malin plaza at Chiang Mai University. We will be one of best brand ice cream homemade,

the most of consumer that reliable in our company. We will build standard network. Not only

have our company gets benefited from the social but also our company responsibility to

social this important that we have to do beyond our-self.

2.5 Mission

Make all customers enjoy, relax and satisfy by giving the best service. All ice cream

products are high quality and use ingredients from Thai agricultural product. We are

dedicated to the highest standards of quality, taste, packaging and new product. Respond to

ice-cream’s lovers, and also students who live in Chiang Mai University and other people. I-

Tim shop will work with carefully by always drive out fresh products and seek for

successfully in every time. Customer’s need is the first thing we take care of, follow by staffs.

I-Tim shop is interesting with a variety of ice-cream flavors. Staff is the beginning of the way

to success.

2.6 Strategy

2.6.1 Corporate Level

I-Tim shop operate business by use prosper strategy in order that our business have

organization structure not complicate we divide the responsible follow department. Moreover

we snatch market share from the competitors more and more and increase circulation from

old customers such as student or the people by improve a taste and new product for

customers want. Beside we make friends with other business for opportunity of commercial.

2.6.2 Business Level

I-Tim shop chooses focus strategy because our product provide appropriate to people

who love their ice cream.

2.6.3 Functional Level

Administration

For I-Tim shop, customer is the first one we care of. Thus, the shop should be

following the best quality of administration process, including the shop decoration and

service.

Business Strategies

-Good shop decoration

-Always offer new promotion for customers-

- Build good relationship with customer

Marketing

Now our shop is set at Malin plaza , so the target market of the shop is student and

other people who live around Chiang Mai University area. However, to expand our business

to be well known from many people, we have planned to promote and expand more branches

in the future.

Marketing Strategies

-Making any special Advertising and offer to customers, such as a discount

promotion.

-Good service

-Expand more branches, over Bangkok area.

Production

We also use all of Thai ingredient for our product. A shop has fashionable ice-cream,

such as Thai fruit is topping on ice-cream.

Production Strategies

- Production must be support customer’s demand in a hundred percents.

- Cleanness Production

- Good quality of ingredients

- Stable taste of product

Human Resources

We pay attention of staff’s performance. They need to develop themselves in every

time, have a clear direction of work and can earn profit to the business. More over the

relationship between staffs is very important because it can drive the business to be

successful in quickly.

Human Resource Strategies

-Training and repeating all staffs to be always ready to work.

-Motivating all staffs, by offer them extra cash.

Financial

We should have a good capital which high percentage of securely. It might be come

from entrepreneur or take on loan.

Financial Strategies

-Find the low interest of loan.

-Making a shop account.

-Be economical [water and electricity.

Chapter 3

Market Feasibility Study

3.1 Market Analysis

Ice Cream Market Analysis

Ice cream is a subcategory of the frozen dessert which has projected sales in 2010 of

approx. $24 billion. Additionally, ice cream itself now captures 59.7% of this market, with

total sales of $12.9 billion. There is currently a 3.7% growth rate based on current sales

figures. This growth in sales is not due to a market which is consuming more ice cream, but

rather is spending more on the ice cream that it consumes, that is the ice cream products

being consumed are increasing in price. The increase in price is due to the general increase in

dairy prices combined with increased cost of technology associated with ice cream

production.

The product innovation in all frozen desserts, including ice cream is increasing;

however, the average lifecycle of ice cream is decreasing. The average lifetime of ice cream

varieties is 1 to 2 years. At the same time, there is continued growth in low-fat variations of

‘full-fat’ ice cream products and there is a demand for these products to taste like their full-fat

equivalents. The ‘better-for-you’ frozen dessert products, traditionally marketed at adults,

have unexpected cross-appeal in children. The demand for these healthful alternatives is

growing. Nonetheless, ice cream is still considered an indulgence and thus there will always

be a market for full-fat (super premium) ice cream products.

Food service accounts for 63.5% of ice cream sales, while retail totals 43.7% of sales. In both

markets, brand loyalty in ice cream is very transient and can be swayed by new flavors and

varieties. As such, there is opportunity to build brand loyalty with new flavors, varieties,

packaging, and value-adding technologies. Current trends suggest that quality generally

outweighs price consideration in retail food purchases.

According to the survey of the area in Malin Plaza in front Chiang Mai University(CMU) we

can divide the marketing to main part of segment as the following

- Food - Beverage

- Bakery shop - Dessert

- Coffee shop

Ice cream homemade name I-Tim shop focused to the Ice cream market share

which the competitive analysis in the Malin plaza which are Ice VillaA, Snowy ice

cream highly competitive in beverage. So I Tim shop has seen the gap for make market in

plaza because in the Malin plaza has not ice cream shop have dessert in area. This is

opportunity for opening ice cream homemade marketing.

3.1.1 General Environment Analysis

Why does a consumer buy an ice cream?

In the first place we have to see in general why people buy ice creams, and what value

it has to them this type of product and then we have to analyze the different types of markets

because the reasons will change accordingly with the type of (children or adults, for example)

and product (premium or not, for example). So basically the answer to this question is that the

reason why consumers buy an ice cream depend of some variable factors that I will try to

explain here.

Consumers just buy a product because of the value it has to them, because it satisfy a

need they had and possibly they didn´t know. In the case of Ice creams, in general people buy

the normal type of ice cream because of the flavor, the ice cream is competing with other

kind of candies, it´s a treat and it´s associate with having fun outdoors in the summer. But

this is a limited vision of the reality because the ice cream market is far more complex than

this and with the introduction of premium ice creams such as Haagen-Dazs, the rules changed

completely. With the creation of a new market segment the reasons why average costumers

bought the product changed because before the target were children that bought the ice cream

has a candy and know are the adults that look to an ice cream as a sophisticated pleasure, an

indulgency. So the more premium the ice cream is costumers will buy the product more for

the experience itself and the less premium the product is costumers will buy the ice cream

only for the taste and having in mind the price.

- Political factors

The problem of government in Thailand have not effect to power of buyer because Ice

cream shop have normal cost not expensive and customer can buy each taste in each season.

Ice cream shop brings material from product of fruit in Chiang Mai to produce good quality

product for sell with normal cost.

- Economic factors

The economic factor will not have an effect on the I Tim because the located in

MalinPlaza area although the economic factor didn’t have an effect to the rate of ice cream

consumption is also growing to opportunity give market share.

- Social and Environment factors

Now customer interest to take care about healthy and body shape, so the company

think this is opportunity to produce new products for health to present customer who want to

buy the ice cream healthy such as low fat ice cream, fruit ice cream, vegetable ice cream,

high calcium ice cream for have a choice to customer choose to buy it and easy to decision

because ice cream shop have a difference taste for life style of customer.

- Technological factors

The process of production for homemade ice cream has been improved some technology to

help produce ice cream so the product of ice cream has taste and texture differences other ice

cream to make customer interested.

3.1.2 Competition Analysis (3C Analysis)

1. Competitor’s analysis

We have position in Malin plaza which is first mover advantage because no exist of

supply that provides ice cream to the demand on this market. So, we can analyze the main

competitor in Malin plaza have two shop which is 1) Ice VillA 2) Snowy ice cream and this

competition in area around Chaing Mai : Home Fresh Ice Cream, IBerry, The Oasis bakery,

Seasons Ice cream Chiang Mai, Ice & Friends, Mrs.Icy Chiangmai, Ice cream Pha Thun,

7eleven.

This is Ice VillaA shop

This is Snowy ice cream shop

2. Competitive analysis

Ice cream homemade market is a market that is constantly expanding. There

are more current operators of Ice cream homemade business because of operate and

production easily. The observation that famous brand open more branches and begin

to development in production, marketing and expanding distribution channels. Major

reputation business has more capital is more aggressive in market and create

distribution channels and distribution to cover thoroughly. At present, ice cream

market in Thailand is quite capable of continuous growth. Benefits of ice cream

homemade market in Thailand can be doing throughout the year because the weather

is quite hot and weather is not different.

Our company is homemade ice cream own position is in the premium ice

cream market. While the other competitor in Malin Plaza area is ignore to compete in

the ice cream market.

3. Customer analysis

Business emphasizes in customers is student and other people with an average

age ranging from 15-40 years with high purchasing power parity. This is easy to bring

the product to the consumers. From a target group, CMU students want to consume

homemade ice cream because of I Tim shop has many menu for choose another ice

cream such as bread toast for supply ice cream shop to meet existing demand.

3.2 STP Analysis

3.2.1 Segment

I-Tim shop has segment the market in Malin plaza area the following segment into

these separate parts : - Food - Beverage - Bakery shop - Dessert - Coffee shop

We can separate segment of customer by age, occupation, life style then we can get

customer in Malin plaza for come to buy because when people walk in market plaza it very

hot their want to have cool beverage and want to sit for relax same students they likes to

meeting group after finish school we will choose Malin plaza for open the shop.

3.2.2 Targeting

I Tim targeting on the ice cream market which there are no competitor in this market

share so there is an opportunity to built some profit from the gap in the market by choose

target in group of Chiang Mai University and Chiang Mai University demonstration school

students and everyone around plaza who likes to eat ice cream and dessert .

3.2.3 Positioning

I-Tim shop has design shop is colorful style for interested customer and make interest

logo for customer can remember brand. I Tim is normal cost shop for customer feel not

expensive and come back to buy again but I Tim has premium product and service for make

new customer and give customer loyalty.

3.3 Marketing Mix Strategy

3.3.1 Product

I-Tim shop is ice cream homemade for the difference texture another brand. It’s

mixture between milk with beverage Thailand, fruits, vegetable. And the result is the

delicious and new taste that is point of sell ice cream and dessert is bread toast, Nham Kheng

Sai in winter season we have hot milk, hot tea for customer . I Tim have variety of taste for

support which taste customer want to buy.

3.3.2 Price

The majority of the business’ sales will come from ice cream and ice cream

homemade we use price strategy 39 Baht per scoop with two topping. We choose sell 39 Bath

per scoop because the price is normal price in ice cream homemade group and make

customer impression in cost and quality and dessert we sell not expensive for customer who

have less money buy they want to try it.

Ice cream homemade 39 bath/scoop

Bread toast 15 bath/piece

Nham Kheng Sai 20 bath/cup

Hot milk, tea 20 bath/glass

3.3.3 Place

We choose Malin plaza in campus because the place with students and people come to

meeting and buying food and beverage. My shop in Malin plaza have possibility to get profits

by make interest point of shop such as have place for customer sit and relax by provide table ,

chair, flower, open music.

3.3.4 Promotion

I-Tim shop has variety promotion provide to the customers are

- Buy 1 scoop free 2 topping on ice cream.

- Make the card to customers for collect the stamp when they buy product

50 baths up,

So when they have 10 stamps can get free 1 menu in shop.

- Promotion in the winter season buy 3 scoops and get free 1 scoop.

- Customer can match one ice cream and choose one menu in 59 bath.

3.4 Five force model

Exist competitor

The overview of the ice cream market will find that there are many

competitors. Have the small and large business. But Ice cream homemade shop in

Malin plaza area have less any ice cream shop opens. So, there is no direct competitor

to compete with I-Tim shop. Coupled with the ice cream market rates grasp how early

in the 50-80% level as well as market growth continued and potential future growth

rates due to more consumption of ice cream in Thailand. Current is low compared to

other countries.

New entry barrier

The way to access to ice cream markets is easy. Especially in the group of

Homemade Ice cream as an easy technologies production, but the business is similar

to other food. Flavor and feature is the highlight of the business and the methods to

produce the best ice cream flavor that require different techniques that have resulted

from a long trial. The business is focused on building relationships with customers.

We have to focus on marketing promotions that have access needs of students. The

strategies cannot imitate or emulate difficult to attract the customers such as a

promotion of customers to purchase at the shops.

Substitute product

The homemade Ice cream is a product that is interesting and easy to substitute

products of customers. Depending on a product look kind and good quality. If we

compare the prices of existing competitors, we are also with cheaper quality

compared. The most competitive products are franchiser. That is available generally.

When view from the weather of the Chiang Mai University and around area. Ice

cream homemade shop seems to be the most popular than other dessert.

Power of buyer

I-Tim shop business is a new and not well to know and accepted in the

market. The business is required in Malin plaza front of Chiang Mai University and

store sales and service to consume the customers. Since the I-Tim shop area is set to

see good image. When we have a good image of the shop has been more popular and

building the business power of buyer increase. However the quality of ice cream is the

most important factors to business in the long term tend to increase the purchases of

consumers.

Power of supplier

The raw material of the product for production is easy to find such as fresh

milk, cream, eggs, fresh fruits, green tea and coconut milk. The Ice cream product that

is easy in manufacturing. That Ice cream business is an industry of market has high

gravity. Both the production cost per unit low and making a gross profit margin high

into the market is doing easy because no barriers to entry. Especially in the Ice Cream

homemade business small and supplier bargaining power is lower. Because materials

used in manufacturing purchased at general and sellers in the market more. However,

the qualities of ice cream flavors are the most important factors to business in the long

term.

3.5 Sales Forecast/Profit Estimation

According the sale forecast which we are focusing with detailed unit sales forecasts.

This is about determining a products market share in a particular industry and considering

what will happen to that market share in the future. The statistic of population in Chiang Mai

University have student 38,648 people (Data on 25 June2012) Chiang Mai University

Demonstration school there are 1,384 people People live in around Chiang Mai university

around 32,325 prople. I-Tim shop will place at Chiang Mai University in Malin plaza. First

the estimate numbers of customer focus mainly on students from Chiang Mai University and

other people around the area. Which the number is 10,000 populations. So, we break down

into 10000 x 30% which equal 3,000 population.

Time period are: 5 years

Average selling price are: 35 baht/scoop

Next we estimate the company demand

Which company demand = market demand x company market share

Expected that student will consume our product at 1 Kg. / person /year

So, market demand = 3,000 x1 (Kg. /person) = 3,000 Kg.

Market share of ice-cream are 20%

So, the business demands of selling are = 3,000 x 15 (1 Kg. will equal 15 scoops of ice

cream)

= 45,000 scoops / years 45,000 /12 = 3,750 scoops per month 3,750/30 = 125 scoops per

day

Which I-Tim shop has 2 flavors which can break down into an approximate 125/2

= 62.5 Scoops per flavor per day. 1

http://www.cmu.ac.th/info_service.php?menu=20 2

http://www.satitcmu.ac.th/index.php/satitcmu-intro-school.html 3

http://stat.dopa.go.th/xstat/p5357_01.html 4

http://www.manager.co.th/campus/viewnews.aspx?NewsID=9550000118807

3.5.1 Time Series Analysis

Breakdown into 4 parts

The trend: According to the study of Kasikorn research center state that the Ice cream

market will growth rapidly of 5% every year according to the consumer behavior.

The seasonal: I-Tim shop are located in Malin Plaza front of Chiang Mai University

which are in CMU campus area which it can divided into three seasonal as the following in

1’st semester 2’nd semester and 3’rd which is summer and the sale forecasting in the summer

season will approximate to decrease of 50% of sale volume because there are less students to

come and study at Chiang Mai university.

Erratic event: The business sale forecast will estimate the total sale in the summer

lower than the open semester for 50% because the students in CMU of them will not take the

summer course

Response: To increase the sale volume I-Tim shop will mainly response to this

situation by giving promotion to motivate the market.

1http://www.kasikornresearch.com/TH/Pages/Default.aspx

3.7 Conclusion

I-Tim shop business is new entrepreneur. So, we try to plan the market to achieve the

goal. We think will be successful within 5 years because we produce the product to satisfy

the customer and have a good service and good products.

According to the sale forecasting it can conclude that the average income will be

approximate 131,250 baht per month. Decrease in sales this summer season of the university

that close for summer. Decrease the sale are 50% lower than normal.

Chapter 4

Cost of Investment

4.1 Cost of Investment

4.1.1 Rent

Rental Rate

According to the plan I Tim and desert sweety shop will be placed at

Townhouse front of Malin Plaza at Chiang Mai rental fee 500 baht /sq.m. Consists of 12

Sq.m. So the total rent for one month are 500 x 12 = 6,000 baht per month, Thus for the

whole year of rental cost are 6,000 x 12 = 72,000 Bath.

Total Pre-Operation cost

Total Price

Forward Rental 72,000

Permission to Product

food

500

Social Tax 385

Total 72,885

4.1.2 Investment cost

Equipment 287,206

Decoration 100,000

Total 387,206

4.1.3 Machine Tools and Equipments

Equipments:

Ice cream maker

JCS : JC-14BIF

Price : 170,000 bath

- Can produce ice cream 14 kg in 15-

10 minute

Ice cream freezer

ROMAN SLIM

Price: 94,448 bath

Capacity 345 Liter

9-11 model shown

Temperature ( -18 c) – ( - 25 c)

Ice cream tray

Tray

Price : 380 bath

Ice cream scoop

Scoop

Price : 220 bath

Nesco

Nesco NC-4934

Price : 850 bath

Measuring scales set

Measuring scales set

Price : 342 bath

- Weighing apparatus

- Measuring spoon

- Cup.

Bottle Vase

Vase

Price : 120 bath

Ice cream cups

Cups

Price : 3 bath/cup

- Size high 5 cm , diameter 7 cm

Ice cream spoons

Ice cream spoon

Price : 18 bath/100 piece

Tsunami bowl

Dessert bowl 6.5’

Price : 23 bath/ 1 cup

Melamine spoon

Melamine spoon

Price : 7.50 bath/1 spoon

Paper tray

Paper tray

Price : 90 bath/100 piece

Fork

Fork

Price : 100 bath/ 10 fork

Cup

Cup

Price : 39 bath/cup

Glass

Glass

Price : 35 bath/glass

Tray

Tray

Price : 80 bath

Calculator

CASIO HR- 150TM

Price : 1590 bath

Pens

Pen

Price : 5 bath/piece

Paper note

Note , paper for stamp

Price : 50 bath/100 paper

Stamp sticker

Stamp

Price : 70 bath

Name and price tag

Tag

Price : 19 bath/10 paper

Board menu

Wood board

Price : 650 bath

Napkins uniform

Napkins

Price : 180 bath

Tissue papers

Tissue papers

Price : 60 bath/6 pack

DVD player

Family D-447 pink DVD player

Price : 890 bath

Magazine /Book

Seventeen 80 bath

Ray 90 bath

In magazine 50 bath

Lisa 45 bath

Washing

Dishwashing liquid+ sponge

Price : 50 bath

4.2 Depreciation

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

Ice cream maker 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 33,996

Ice cream freezer 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 18,888

Ice cream tray 63 63 63 63 63 63 63 63 63 63 63 63 756

Other 92 92 92 92 92 92 92 92 92 92 92 92 1,104

Total 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 54,744

Year 2 January February March April May June July August September October November December Total

Ice cream maker 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 33,996

Ice cream freezer 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 18,888

Ice cream tray 63 63 63 63 63 63 63 63 63 63 63 63 756

Other 92 92 92 92 92 92 92 92 92 92 92 92 1,104

Total 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 54,744

Year 3 January February March April May June July August September October November December Total

Ice cream maker 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 33,996

Ice cream freezer 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 18,888

Ice cream tray 63 63 63 63 63 63 63 63 63 63 63 63 756

Other 92 92 92 92 92 92 92 92 92 92 92 92 1,104

Total 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 54,744

Year 4 January February March April May June July August September October November December Total

Ice cream maker 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 33,996

Ice cream freezer 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 18,888

Ice cream tray 63 63 63 63 63 63 63 63 63 63 63 63 756

Other 92 92 92 92 92 92 92 92 92 92 92 92 1,104

Total 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 54,744

Year 5 January February March April May June July August September October November December Total

Ice cream maker 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 2,833 33,996

Ice cream freezer 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 1,574 18,888

Ice cream tray 63 63 63 63 63 63 63 63 63 63 63 63 756

Other 92 92 92 92 92 92 92 92 92 92 92 92 1,104

Total 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 54,744

Chapter 5

Production and Operations Analysis

5.1 Product Characteristics

Ice cream homemade product of I Tim shop focus on raw material in Chiang Mai and

selling ice cream and topping generally can be dividend in to two flavors and thirteen

toppings and all of Ice cream and topping product use a high a quality ingredient because can

easy to find and decrease cost of produce for make profit revenue. I Tim shop selling another

ice cream for make variety menu in every season in winter season we have Hot milk , Hot tea

for customer and add bread toast , dessert , ice cream on beverage < customer can choose one

ice cream on top of beverage or bread toast>. Shop selling in shop and can buy back to home

we make standard good service and good facility for customer satisfaction.

Ice cream and dessert

1. Coconut milk.

2. Matcha green tea ice cream.

3. Thai tea ice cream.

4. Pinky milk ice cream.

5. Cantaloupe ice cream.

6. Yogurt low fat ice cream.

7. Lynches ice cream.

8. Banana ice cream.

9. Strawberry low fat ice cream.

10. Milky creamy ice cream.

11. Hot Milk.

12. Hot Tea.

13. Bread toast.

14. Dessert ( Nham kheng sai )

Topping on ice cream and dessert

1. Butterfly pea rice

2. Sweet Corn

3. Grass Jelly (chao-guay)

4. Black Been

5. Palm seeds

6. Peanuts

7. Sweet potato

8. Salim (Sweet-noodles in coconut milk syrup)

9. Bread

10. Taro

11. Condensed milk

12. Strawberry jam

13. Blueberry Jam

5.2 Production process

The basic steps in the manufacturing of ice cream homemade are generally as follows:

Blending

First the ingredients are selected based on the desired formulation and the calculation

of the recipe from the formulation and the ingredients chosen, then the ingredients are

weighed and blended together to produce what is known as the "ice cream mix". Blending

requires rapid agitation to incorporate powders, and often high speed blenders are used.

Figure 4.2 Simple hopper devices for incorporating dry ingredients

Figure 4.3: High shear blender for incorporating dry ingredients

Pasteurization

The mix is then pasteurized. Pasteurization is the biological control point in the

system, designed for the destruction of pathogenic bacteria. In addition to this very important

function, pasteurization also reduces the number of spoilage organisms such as

psychrotrophs, and helps to hydrate some of the components (proteins, stabilizers).

Pasteurization (Ontario regulations): 69° C/30 min. 80° C/25s

Both batch pasteurizers and continuous (HTST) methods are used. Batch pasteurizers

lead to more whey protein denaturation , which some people feel gives a better body to the

ice cream. In a batch pasteurization system, blending of the proper ingredient amounts is

done in large jacketed vats equipped with some means of heating, usually steam or hot water.

The product is then heated in the vat to at least 69 C(155 F) and held for 30 minutes to satisfy

legal requirements for pasteurization, necessary for the destruction of pathogenic bacteria.

Various time temperature combinations can be used. The heat treatment must be severe

enough to ensure

Destruction of pathogens and to reduce the bacterial count to a maximum of 100,000

per gram. Following pasteurization, the mix is homogenized by means of high pressures and

then is passed across some type of heat exchanger (plate or double or triple tube) for the

purpose of cooling the mix to refrigerated temperatures (4 C). Batch tanks are usually

operated in tandem so that one is holding while the other is being prepared. Automatic timers

and valves ensure the proper holding time has been met. Continuous pasteurization is usually

performed in a high temperature short time (HTST)heat exchanger following blending of

ingredients in a large, insulated feed tank. Some preheating, to 30 to 40 C, is necessary for

solubilization of the components. The HTST system is equipped with a heating section, a

cooling section, and a regeneration section. Cooling sections of ice cream mix HTST presses

are usually larger than milk HTST presses. Due to the preheating of the mix, regeneration is

lost and mix entering the cooling section is still quite warm.

Homogenization

The mix is also homogenized which forms the fat emulsion by breaking down or

reducing the size of the fat globules found in milk or cream to less than 1 µ m. Two stage

homogenization is usually preferred for ice cream mix. Clumping or clustering of the fat is

reduced thereby producing a thinner, more rapidly whipped mix. Melt-down is also

improved. Homogenization provides the following functions in ice cream manufacture:

- Reduces size of fat globules

- Increases surface area

- Forms membrane

- Makes possible the use of butter, frozen cream, etc.

By helping to form the fat structure, it also has the following indirect effects: ----

makes a smoother ice cream- gives a greater apparent richness and palatability- better air

stability- increases resistance to melting

Homogenization of the mix should take place at the pasteurizing temperature. The

high temperature produces more efficient breaking up of the fat globules at any given

pressure and also reduces fat clumping and the tendency to thick, heavy bodied mixes. No

one pressure can be recommended that will give satisfactory results under all conditions. The

higher the fat and total solids in the mix, the lower the pressure should be. If a two stage

homogenizer is used, a pressure of 2000 - 2500 psi on the first stage and 500 - 1000 psi on

the second stage should be satisfactory under most conditions. Two stage homogenization is

usually preferred for ice cream mix. Clumping or clustering of the fat is reduced thereby

producing a thinner, more rapidly whipped mix. Melt-down is also improved.

Ageing

The mix is then aged for at least four hours and usually overnight. This allows time

for the fat to cool down and crystallize, and for the proteins and polysaccharides to fully

hydrate. Aging provides the following functions:

- Improves whipping qualities of mix and body and texture of ice cream.

- providing time for fat crystallization, so the fat can partially coalesce;

- Allowing time for full protein and stabilizer hydration and a resulting slight

viscosity increase;

- Allowing time for membrane rearrangement and protein/emulsifier interaction, as

emulsifiers displace proteins from the fat globule surface, which allows for a reduction in

stabilization of the fat globules and enhanced partial coalescence.

Aging is performed in insulated or refrigerated storage tanks, silos, etc. Mix

temperature should be maintained as low as possible without freezing, at or below 5 C. An

aging time of overnight is likely to give best results under average plant conditions. A

"green" or un aged mix is usually quickly detected at the freezer.

Freezing and Hardening

Following mix processing, the mix is drawn into a flavor tank where any liquid

flavors, fruit purees, or colors are added. The mix then enters the Dynamic freezing process

which both freezes a portion of the water and whips air into the frozen mix. The "barrel"

freezer is a scraped-surface, tubular heat exchanger, which is jacketed with a boiling

refrigerant such as ammonia or Freon. Mix is pumped through this freezer and is drawn off

the other end in a matter of 30 seconds, (or 10 to 15 minutes in the case of batch freezers)

with about 50% of its water frozen. There are rotating blades inside the barrel that keep the

ice scraped off the surface of the freezer and also dashers inside the machine which help to

whip the mix and incorporate air.

The Continuous Ice Cream Freezer

Ice cream contains a considerable quantity of air, up to half of its volume. This gives

the product its characteristic lightness. Without air, ice cream would be similar to a frozen ice

cube. The air content is termed its overrun, which can be calculated mathematically.

As the ice cream is drawn with about half of its water frozen, particulate matter such

as fruits, nuts, candy, cookies, or whatever you like, is added to the semi-frozen slurry which

has a consistency similar to soft-serve ice cream. In fact, almost the only thing which

differentiates hard frozen ice cream from soft-serve, is the fact that soft serve is drawn into

cones at this point in the process rather than into packages for sub sequent hardening.

Adding fruit and sweetened chunks

If chunks of food such as strawberry or cookie pieces are to be added to the ice cream,

the frozen mixture is pumped to a fruit feeder. The chunks are loaded into a hopper at the top

of the feeder. Another, smaller hopper, fitted with a star wheel, is located on the front of the

feeder. An auger on the bottom of the machine turns the hoppers so that the chunks drop onto

the star wheel in pre-measured amounts. As the mixture passes through the feeder, the star

wheel pushes the food chunks into the ice cream. The mixture then moves to a blender where

the chunks are evenly distributed.

Hardening

After the particulates have been added, the ice cream is packaged and is placed into

ablest freezer at -30° to -40° C where most of the remainder of the water is frozen. Below

about -25° C, ice cream is stable for indefinite periods without danger of ice crystal growth;

however, above this temperature, ice crystal growth is possible and the rate of crystal growth

is dependent upon the temperature of storage. This limits the shelf life of the ice cream.

A primer on the theoretical aspects of freezing will help you to fully understand the

freezing and recry sterilization process.

Hardening involves static (still, quiescent) freezing of the packaged products in blast

freezers. Freezing rate must still be rapid, so freezing techniques involve low temperature (-

40oC) with either enhanced convection (freezing tunnels with forced air fans) or enhanced

conduction (plate freezers).

Figure 4.5: Spiral, wind tunnel freezer

The rate of heat transfer in a freezing process is affected by the temperature

difference, the surface area exposed and the heat transfer coefficient (Q=U A dT). Thus, the

factor safecting hardening are those affecting this rate of heat transfer:

- Temperature of blast freezer - the colder the temperature, the faster the hardening,

the smoother the product.

- Rapid circulation of air - increases convective heat transfer.

- Temperature of ice cream when placed in the hardening freezer - the colder the ice

cream at draw, the faster the hardening; - must get through packaging operations fast.

- Size of container - exposure of maximum surface area to cold air, especially

important to consider shrink wrapped bundles - they become a much larger mass to freeze.

Bundling should be done after hardening.

- Composition of ice cream - related to freezing point depression and the temperature

required to ensure a significantly high ice phase volume.

- Method of stacking containers or bundles to allow air circulation. Circulation should

not be impeded there should be no 'dead air' spaces (e.g., round vs. square packages).

- Care of evaporator - freedom from frost - acts as insulator.

- Package type, should not impede heat transfer - e.g., Styrofoam liner or corrugated

cardboard may protect against heat shock after hardening, but reduces heat transfer during

freezing so not feasible. Ice cream from the dynamic freezing process (continuous freezer)

can also be transformed into an array of novelty/impulse products through a variety of filling

and forming machines, which have been identified on a separate page.

1 http://www.uoguelph.ca/foodscience/dairy-science-and-technology/dairy-products/ice-

cream/ice-cream-manufacture

5.3 Lifetime

The best method to storage ice cream is control temperature. This is the theoretical of

the freezing process

- Store ice cream on the shelves of the freezer, not in the door. Ice cream is best

stored at -11°F (-24°C).

- Ice cream is easiest to scoop between -0.4 and -4°F (-18 and -20°C), so transfer

the container from the freezer to the fridge 10 to 20 minutes before scooping.

- Once you’ve opened the container, press a piece of plastic wrap or waxed paper

directly on the surface of the ice cream before replacing the lid. Put it back in the

freezer immediately after scooping.

- For the best texture, store-bought ice cream that is stored in a home freezer should

be eaten within a month of produce. Homemade ice cream is best eaten within a

day or two.

- Dip the scoop in room temperature or warm water between every scoop; shake off

the excess water before dipping the scoop in the ice cream.

- Look for some of the fancy ice cream scoops with scrapers, buttons and plungers

to make scooping even easier.

- Avoid thawing and refreezing large ice crystals will form and the smooth, creamy

texture will be destroyed.

http://www.dairygoodness.ca/ice-cream/how-to-store-ice-cream

5.4 Ice cream recipe

Coconut Milk Ice cream

Egg yolk 3 egg

Milk 250 ml

Whip cream 250 ml

Sugar 100 g

Salt 1 tea spoon

Direction

- Mix salt, egg yolk, sugar in the bowl

- Pour hot milk to the bowl mix ingredient stir gradually .

- Bring to the ice cream machines with whip cream around 20 minute.

- And refrigerate.

Green tea ice cream

Fresh milk 1 cup

Heavy cream 2 cup

Sugar ¾ cup

Green tea powder 2 table spoon

Vanilla flavor 1 tea spoon

Salt ¼ tea spoon

Egg yolk 3

Direction

- Bring heavy cream, sugar, salt, milk into pot.

- Put green tea powder and stir until boil.

- Pour egg yolk and vanilla flavor into pot mix ingredient by stir.

- Bring it to ice cream machine for blended.

Thai tea ice cream

Fresh milk 1 cup

Thai tea powder 3 table spoon

Sugar 2/3 cup

Egg 2 egg

Vanilla 2 tea spoon

Half and half milk<heavy cream> 2 cup

Direction

- Boiled milk until warm add sugar and Thai tea powder and put down.

- Pour warm milk mix to egg.

- Mix vanilla and heavy cream put it in refrigerator until cold.

- Then bring everything into ice cream machine and blended.

Red milk ice cram

Egg yolk 2 egg

Sugar 2 table spoon

Salt ¼ tea spoon

Fresh milk 200 ml

Whip cream 350 ml

Red syrup 50 ml

Vanilla 1 tea spoon

Direction

- Mix egg yolk, sugar, salt in the bowl stir until fluffy.

- Boiled milk, whip cream, vanilla warm temperature .

- Pour egg fluffy into pot stir ingredients until 75 c .

- Bring to ice cream machine and blended.

Cantaloupe ice cream

Cantaloupe 700 g

Egg 6 egg

Hot milk 3 cup

Sugar 1 cup

Lemon 2 lemon

Direction

- Blended cantaloupe until smooth texture.

- Mix egg and sugar in bowl.

- Boil egg, sugar warm temperature and pour hot milk stir until cream

texture.

- Add cantaloupe into blow and pour cream of hot milk, egg.

- Add lemon and mix .

- Bring to ice cream machine and blended.

Yogurt ice cram

Yogurt 2 cup

Whip cream ½ cup

Dextrose sugar 50 g

Vanilla 1 tea spoon

Direction

- Mix sugar and whip cream to bowl and stir until smooth.

- Pour yogurt and stir well.

- Add vanilla flavor and stir well.

- Bring to ice cream machine and refrigerate them.

Lynches ice cream

Heavy cream 400 ml

Egg yolk 6 egg

Sugar 90 g

Lynches 2 cup

Lynches blend 1 cup

Soluble fiber 1 tea spoon

Ice

Salt

Direction

- Boil heavy cream in warm.

- Mix sugar and egg yolk until well in bowl.

- Pour heavy cream to bowl stir regularly.

- Pour ingredient in bowl to a pot boil it warm.

- Add lynches blend , soluble fiber and pour to ice cream machine.

- After blended add lynches and mix them to smooth.

Banana ice cream

Milk 500 ml

Cream 500 ml

Egg 1 egg

Banana 2 banana

Sugar ½ cup for milk

Sugar ¼ cup for banana

Lemon juice 2 tea spoon

Salt

Direction

- Cut banana little piece and mix sugar, lemon juice bring to refrigerate 1

hour.

- Mix milk, sugar, salt stir well.

- Bring banana from refrigerate mix and blend.

- Add egg , cream in banana blend.

- Pour ingredients to ice cream machine .

Strawberry low fat ice cream

Fresh milk 200 g

Vanilla ¼ vanilla

Egg yolk 2 egg

Dextrose sugar 55 g

Whip cream <low fat> 150 g

Strawberry jam 150 g

Soluble fiber 1 tea spoon

Direction

- Boil milk and add vanilla until warm.

- Mix sugar , egg yolk and stir until smooth in bowl.

- Pour warm milk into bowl and stir well.

- Bring them to boil again around 82-83 c

- Stir whip cream until fluffy and mix to bowl.

- Add strawberry jam and soluble fiber and mix well.

- Pour into ice cream machine.

Milky creamy ice cream

Milk 500 ml

Cream 250 ml

Sugar 2 cup

Vanilla 1 tea spoon

Egg 3 egg

Milk protein 2 table spoon

Direction

- Boil milk, vanilla and milk protein until warm.

- Mix egg and sugar stir until fluffy in bowl.

- Pour milk in to bowl and stir well.

- Add cream and stir until smooth.

- Bring to ice cream machine.

-

Beverage recipe

Hot Milk

Milk 150 ml.

Sugar 1 tea spoon

Direction - Boil milk in warm and add sugar.

Hot Tea

Hot water 1 cup

Tea powder 3 tea spoon < green tea , Thai tea >

Direction - Put tea powder in cup and add hot water .

Dessert recipe

Ice sweet

Ice ½ cup

Topping < customer can choose>

Direction - Put topping and ice in cup.

Bread toast

Bread 1 piece

Margarine 1 tea spoon

Yam

Direction

- Apply margarine on bread

- Bring bread to toast until bread change to yellow color

- Pour yam on bread.

5.5 Operating Cost

Raw material Cost

Fruit and ingredients of Ice cream

Coconut

Price : 160 bath/kg

Cantaloupe

Price: 19 bath/kg

Banana

Price: 165 bath/box

Lynchee

Price: 90 bath/kg

Lemon

Price: 4 bath/1 lemon

Strawberry yam

Price: 107 bath/400g.

Syrup

Price: 38 bath/ 710ml

Egg

Price: 3.5 bath/egg

Half and half milk

Price: 158 bath/1liter

Fresh milk

Price: 39 bath/830cc

Whip cream

Price: 250 bath/1 liter

Matcha Green tea powder

Price: 450 bath/1000 g

Thai tea powder

Price: 120 bath/ 1kg

Sugar

Price: 23 bath/1kg

Salt

Price: 10 bath/1000g

Ice

Price: 20 bath/10 kg

Vanilla

Price: 30 bath/ 1 vanilla

Vanilla Flavor

Price: 60 bath/30g

Dextrose sugar

Price: 205 bath/500g

Soluble fiber

Price: 205 bath/500g

Milk protein

Price: 140 bath/ 200g

Bread

Price : 19 bath/1 piece

Best food margarine

Price : 70 bath/kg

Banana jam

Price : 44 bath/kg

Chocolate jam

Price : 55 bath/kg

Marmalade jam

Price : 44 bath/kg

Strawberry jam

Price: 44 bath/kg

Blueberry jam

Price: 44 bath/kg

Condensed milk

Price: 23 bath/1 can

Butterfly Pea sticky rice

Price: 149 bath/ kg

Sweet corn

Price: 15 bath/kg

Grass jelly

Price: 50 bath/kg

Black bean

Price: 34 bath/kg

Palm seed

Price: 55 bath/kg

Pea nut

Price: 13 bath/kg

Salim

Price: 44 bath/kg

Bread cut

Price: 40 bath/kg

Water

Price : 40 bath/6 liters

5.6 Overhead

MFG

overhead

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

Electricity 900 900 900 900 900 900 900 900 900 900 900 900 10,800

MFG

overhead

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

Electricity 900 900 900 900 900 900 900 900 900 900 900 900 10,800

Water 200 200 200 200 200 200 200 200 200 200 200 200 2,400

Depreciation 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 54,744

Rent 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 72,000

Total MFG

overhead

11,662 11,662 11,662 11,662 11,662 11,662 11,662 11,662 11,662 11,662 11,662 11,662 139,944

5.7 Logistic Management

Application of management principles to logistics operations for efficient and cost

effective movement of goods planning control shop my shop planning go to buy raw material

and order some material from market for decrease expense cost of shop .

The picture show distance shop to supermarket about 10 km.

Calculation : Go 5 km. use 160 bath

Go-back use 260 bath

One month go to buy 2 time = 520 bath

Cost of gasoline : 520 bath per month

I Tim&Dessert shop

Top Supermarket

Chapter 6

Administration analysis

6.1 Management Analysis

Administration Cost

Employee salary

Our company hires two sale persons in our shop. Each person receives

salary 10,000 baht per month.

6.2 Conclusion

I Tim shop will be located at Malin Plaza in front of Chiang Mai University. And we will

our ice cream shop invest as the following.

Total cost of raw material and equipment

No. Descript No. Product Price/Unit Total

1. Ice cream maker 1 170,000 170,000

2. Ice cream freezer 1 94,448 94,448

3. Ice cream tray 10 380 3,800

4. Ice cream scoop 3 220 660

5. Measuring scales set 1 342 342

6. Bottle Vase 11 120 1,320

7. Ice cream cups 150 3 450

8. Ice cream spoons 100 0.18 18

9. Calculator 2 1,590 3,180

10. Pens 4 5 20

11. Paper note 100 0.5 50

12. Stamp sticker 2 75 150

13. Name and price tag 10 1.9 19

14. Board menu 2 650 1300

15. Napkins uniform 2 180 360

16. Nesco toast bread 1 850 850

17. Tsunami bowl 20 23 460

18. Melamine spoon 20 7.50 150

19. Paper tray 100 0.90 90

20. Fork 20 10 200

21. Tissue papers 6 10 60

22. Cup 20 39 780

23. Glass 25 35 875

24. Tray 3 80 240

25. DVD player 1 890 890

26.

Magazine - Seventeen

- Ray

- In magazine

1 80

90

50

265

- Lisa 45

27. Washing 1 50 50

28. Coconut 3 160/kg 480

29. Cantaloupe 3 19/kg 57

30. Banana 3 165/kg 495

31. Lynches 4 90/kg 360

32. Lemon 10 5 50

33. Strawberry yam 2 107 214

34. Syrup 2 38 76

35. Egg 40 3.5 140

36. Half and half milk 4 158 632

37. Fresh milk 10 39 390

38. Whip cream 3 250 750

39. Matcha Green tea powder 1 450 450

40. Thai tea powder 1 120 120

41. Sugar 3 23 69

42. Salt 1 10 10

43. Ice 20 0.5 10

44. Vanilla 10 30 300

45. Vanilla Flavor 2 60 120

46. Dextrose sugar 1 205 205

47. Soluble fiber 1 205 205

48. Milk protein 1 140 140

49. Butterfly Pea sticky rice ½ 149 74.50

50. Sweet corn 1 15 15

51. Grass jelly 1 50 50

52. Black bean 1 34 34

53. Palm seed 1 55 55

54. Pea nut 1 13 13

55. Salim 1 44 44

56. Bread cut 1 40 40

57. Condensed milk 5 23 115

58. Bread 5 19 95

59. Best food margarine 1 70 70

60. Banana jam 1 44 44

61. Chocolate jam 1 44 44

62. Marmalade jam 1 44 44

63. Strawberry jam 1 44 44

64. Blueberry jam 1 44 44

Total

765

287,126

So the total amount of investment will be equal 375,715+55,317= 431,032 but we will

loan the money from the investor for 500,000

Chapter 7

Financial Analysis

7.1 Income Statement

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

Revenue

Sale 98,310 119,250 92,747 83,782 81,174 111,981 106,602 105,624 107,254 91,606 85,249 87,368

Total Revenue 98,310 119,250 92,747 83,782 81,174 111,981 106,602 105,624 107,254 91,606 85,249 87,368

Cost of goods sold

Direct Material 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000

Direct Labor 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000

MFG overhead 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350

Total cost of goods sold 37350 37350 37350 37350 37350 37350 37350 37350 37350 37350 37350 37350

Gross income 60,960 81,900 55,397 46,432 43,824 74,631 69,252 68,274 69,904 54,256 47,899 50,018

Operating Expense

Marketing expense 675 675 675 675 675 675 675 675 675 675 675 675

Rent 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000

Depreciation 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562

Selling & Administration - - - - - - - - - - - -

Total Operating Expense 11,237 11,237 11,237 11,237 11,237 11,237 11,237 11,237 11,237 11,237 11,237 11,237

Net income before Expense 49,723 70,663 44,160 35,195 32,587 63,394 58,015 57,037 58,667 43,019 36,662 38,781

Operating income (loss)

Other income (expense) - - - - - - - - - - - -

Interest expense 2,604 2,604 2,604 2,604 2,604 2,604 2,604 2,604 2,604 2,604 2,604 2,604

Total Operating income 2,604 2,604 2,604 2,604 2,604 2,604 2,604 2,604 2,604 2,604 2,604 2,604

Income (loss) before Taxes 47,119 68,059 41,556 32,591 29,983 60,790 55,411 54,433 56,063 40,415 34,058 36,177

Provision (benefit) for income taxes - - - - - - - - - - - -

Net income (loss) for the year 48,994 69,934 43,431 34,466 31,858 62,665 57,286 56,308 57,938 42,290 35,933 38,052

Retained Earnings Being of the year 48,994 118,928 162,359 196,825 228,683 291,348 348,634 404,942 462,880 505,170 541,103

Retaining Earning 48,994 118,928 162,359 196,825 228,683 291,348 348,634 404,942 462,880 505,170 541,103 579,155

Year 2 January February March April May June July August September October November December

Revenue

Sale 129,585 128,607 121,598 115,730 113,611 133,163 127,955 126,977 122,087 116,056 113,774 111,492

Total Revenue 129,585 128,607 121,598 115,730 113,611 133,163 127,955 126,977 122,087 116,056 113,774 111,492

Cost of goods sold

Direct Material 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000

Direct Labor 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000

MFG overhead 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350

Total cost of goods sold 37,350 37,350 37,350 37,350 37,350 37,350 37,350 37,350 37,350 37,350 37,350 37,350

Gross income 92,235 91,257 84,248 78,380 76,261 95,813 90,605 89,627 84,737 78,706 76,424 74,142

Operating Expense

Marketing expense 675 675 675 675 675 675 675 675 675 675 675 675

Rent 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000

Depreciation 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562

Selling & Administration - - - - - - - - - - - -

Total Operating Expense 11,237 11,237 11,237 11,237 11,237 11,237 11,237 11,237 11,237 11,237 11,237 11,237

Net income before Expense 80,998 80,020 73,011 67,143 65,024 84,576 79,368 78,390 73,500 67,469 65,187 62,905

Operating income (loss)

Other income (expense) - - - - - - - - - - - -

Interest expense 2,708 2,708 2,708 2,708 2,708 2,708 2,708 2,708 2,708 2,708 2,708 2,708

Total Operating income 2,708 2,708 2,708 2,708 2,708 2,708 2,708 2,708 2,708 2,708 2,708 2,708

Income (loss) before Taxes 78,181 77,203 70,194 64,326 62,207 81,759 76,551 75,573 70,683 64,652 62,370 60,088

Provision (benefit) for income taxes

Net income (loss) for the year 78,181 77,203 70,194 64,326 62,207 81,759 76,551 75,573 70,683 64,652 62370 60,088

Retained Earnings Being of the year 579,155 657,336 734,539 804,733 869,059 931,266 1,013,025 1,089,576 1,165,149 1,235,832 1,300,484 1,362,854

Retaining Earning 657,336 734,539 804,733 869,059 931,266 1,013,025 1,089,576 1,165,149 1,235,832 1,300,484 1,362,854 1,422,942

Year 3 January February March April May June July August September October November December

Revenue

Sale 138,876 143,277 134,475 129,585 122,087 146,211 141,647 146,537 137,898 134,149 132,030 128,607

Total Revenue 138,876 143,277 134,475 129,585 122,087 146,211 141,647 146,537 137,898 134,149 132,030 128,607

Cost of goods sold

Direct Material 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000

Direct Labor 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000

MFG overhead 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350

Total cost of goods sold 37,350 37,350 37,350 37,350 37,350 37,350 37,350 37,350 37,350 37,350 37,350 37,350

Gross income 101,526 105,927 97,125 92,235 84,737 108,861 104,297 109,187 100,548 96,799 94,680 91,257

Operating Expense

Marketing expense 876 876 876 876 876 876 876 876 876 876 876 876

Rent 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000

Depreciation 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562

Selling & Administration - - - - - - - - - - - -

Total Operating Expense 11,438 11,438 11,438 11,438 11,438 11,438 11,438 11,438 11,438 11,438 11,438 11,438

Net income before Expense 90,088 94,489 85,687 80,797 73,299 97,423 92,859 97,749 89,110 85,361 83,242 79,819

Operating income (loss)

Other income (expense) - - - - - - - - - - - -

Interest expense 2,812 2,812 2,812 2,812 2,812 2,812 2,812 2,812 2,812 2,812 2,812 2,812

Total Operating income 2,812 2,812 2,812 2,812 2,812 2,812 2,812 2,812 2,812 2,812 2,812 2,812

Income (loss) before Taxes 87,276 91,677 82,875 77,985 70,487 94,611 90,047 94,937 86,298 82,549 80,430 77,007

Provision (benefit) for income taxes - - - - - - - - - - - -

Net income (loss) for the year 87,276 91,677 82,875 77,985 70,487 94,611 90,047 94,937 86,298 82,549 80,430 77,007

Retained Earnings Being of the year 1,422,942 1,510,218 1,601,895 1,684,770 1,762,755 1,833,242 1,927,853 2,017,900 2,112,837 2,199,135 2,281,684 2,362,114

Retaining Earning 1,510,218 1,601,895 1,684,770 1,762,755 1,833,242 1,927,853 2,017,900 2,112,837 2,199,135 2,281,684 2,362,114 2,439,121

Year 4 January February March April May June July August September October November December

Revenue

Sale 134,149 148,819 150,612 142,788 142,462 157,163 160,163 166,749 159,163 160,163 139,163 137,163

Total Revenue 134,149 148,819 150,612 142,788 142,462 157,163 160,163 166,749 159,163 160,163 139,163 137,163

Cost of goods sold

Direct Material 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000

Direct Labor 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000

MFG overhead 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350

Total cost of goods sold 37,350 37,350 37,350 37,350 37,350 37,350 37,350 37,350 37,350 37,350 37,350 37,350

Gross income 96,799 111,469 113,262 105,438 105,112 119,813 122,813 129,399 121,813 122,813 101,813 99,813

Operating Expense

Marketing expense 934 934 934 934 934 934 934 934 934 934 934 934

Rent 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000

Depreciation 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562

Selling & Administration - - - - - - - - - - - -

Total Operating Expense 11,496 11,496 11,496 11,496 11,496 11,496 11,496 11,496 11,496 11,496 11,496 11,496

Net income before Expense 85,303 99,973 101,766 93,942 93,616 108,317 111,317 117,903 110,317 111,317 90,317 88,317

Operating income (loss)

Other income (expense) - - - - - - - - - - - -

Interest expense 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916

Total Operating income 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916

Income (loss) before Taxes 82,387 97,057 98,850 91,026 90,700 105,401 108,401 114,987 107,401 108,401 87,401 85,401

Provision (benefit) for income taxes - - - - - - - - - - - -

Net income (loss) for the year 82,387 97,057 98,850 91,026 90,700 105,401 108,401 114,987 107,401 108,401 87,401 85,401

Retained Earnings Being of the year 2,439,121 2,521,508 2,618,565 2,717,415 2,808,441 2,899,141 3,004,542 3,112,943 3,227,930 3,335,331 3,443,732 3,531,133

Retaining Earning 2,521,508 2,618,565 2,717,415 2,808,441 2,899,141 3,004,542 3,112,943 3,227,930 3,335,331 3,443,732 3,531,133 3,616,534

Year 5 January February March April May June July August September October November December

Revenue

Sale 154,198 160,881 171,467 150,612 143,277 173,595 202,935 186,635 195,274 169,357 161,696 157,295

Total Revenue 154,198 160,881 171,467 150,612 143,277 173,595 202,935 186,635 195,274 169,357 161,696 157,295

Cost of goods sold

Direct Material 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000

Direct Labor 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000

MFG overhead 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350

Total cost of goods sold 37,350 37,350 37,350 37,350 37,350 37,350 37,350 37,350 373,50 37,350 37,350 37,350

Gross income 116,848 123,531 134,117 113,262 105,927 136,245 165,585 149,285 157,924 132,007 124,346 119,945

Operating Expense

Marketing expense 893 893 893 893 893 893 893 893 893 893 893 893

Rent 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000

Depreciation 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562

Selling & Administration - - - - - - - - - - - -

Total Operating Expense 11,455 11,455 11,455 11,455 11,455 11,455 11,455 11,455 11,455 11,,455 11,455 11,455

Net income before Expense 105,393 112,076 122,662 101,807 94,472 124,790 154,130 137,830 146,469 120,552 112,891 108,490

Operating income (loss)

Other income (expense) - - - - - - - - - - - -

Interest expense 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916

Total Operating income 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916

Income (loss) before Taxes 102,477 109,160 119,746 98,891 91,556 121,874 151,214 134,914 143,553 117,636 109,975 105,574

Provision (benefit) for income taxes - - - - - - - - - - - -

Net income (loss) for the year 102,477 109,160 119,746 98,891 91,556 121,874 151,214 134,914 143,553 117,636 109,975 105,574

Retained Earnings Being of the year 3,282,908 3,385,385 3,494,545 3,614,291 3,713,182 3,804738 3,926,612 4,077,826 4,212,740 4,356,293 4,473,929 4,583,904

Retaining Earning 3,385,385 3,494,545 3,614,291 3,713,182 3,804,738 3,926,612 4,077,826 4,212,740 4,356,293 4,473,929 4,583,904 4,689,478

7.2 Cash flow statement

Year 1

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

Operating Cash Flow

Net Income after Tax 48,994 69,934 43,431 34,466 31,858 62,665 57,286 56,308 57,938 42,290 35,933 38,052

+ Depreciation and amortization 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562

+/- Decrease (Increase) in Accounts Receiveable - - - - - - - - - - - -

+/- Decrease (Increase) in Inventory 6,098 6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098

+/- Decrease (Increase) in Other Current Assetes - - - - - - - - - - - -

+/- Decrease (Increase) in Accounts Payable - - - - - - - - - - - -

+/- Decrease (Increase) in Accrued Expenses - - - - - - - - - - - -

+/- Decrease (Increase) in Other Current

Liabilities - - - - - - - - - - - -

Total Operation Cash Flow 47,458 68,398 41,895 32,930 30,322 61,129 55,750 54,772 56,402 40,754 34,397 36,516

Investing Cash Flow

+/- Decrease (Increase) in Fixed Assets 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720

+/- Decrease (Increase) in Notes Receivables - - - - - - - - - - - -

+/- Decrease (Increase) in Securities, Investment - - - - - - - - - - - -

+/- Decrease (Increase) in tangible, noncurrent

assets - - - - - - - - - - - -

Total Investing Cash Flow 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720

Financing Cash Flow - - - - - - - - - - - -

+/- Decrease (Increase) in Borrowings -8,333 -8,333 -8,333 -8,333 -8,333 -8,333 -8,333 -8,333 -8,333 -8,333 -8,333 -8,333

Payment in principle 2604 2604 2604 2604 2604 2604 2604 2604 2604 2604 2604 2604

- Dividends Paid - - - - - - - - - - - -

Total Financing Cash Flow -5,729 -5,729 -5,729 -5,729 -5,729 -5,729 -5,729 -5,729 -5,729 -5,729 -5,729 -5,729

Total Cash Flow 279,449 279,449 279,449 279,449 279,449 279,449 279,449 279,449 279,449 279,449 279,449 279,449

Cash at beginning of period 279449 558898 838347 1,117,796 1,397,245 1,676,694 1,956,143 2,235,592 2,515,041 2,794,490 3,073,939

Cash at end period 279,449 558,898 838,347 1,117,796 1,397,245 1,676,694 1,956,143 2,235,592 2,515,041 2,794,490 3,073,939 3,353,388

Year 2

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

Operating Cash Flow

Net Income after Tax 78,181 77,203 70,194 64,326 62,207 81,759 76,551 75,573 70,683 64,652 62,370 60,088

+ Depreciation and amortization 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562

+/- Decrease (Increase) in Accounts Receiveable - - - - - - - - - - - -

+/- Decrease (Increase) in Inventory -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098

+/- Decrease (Increase) in Other Current Assetes - - - - - - - - - - - -

+/- Decrease (Increase) in Accounts Payable - - - - - - - - - - - -

+/- Decrease (Increase) in Accrued Expenses - - - - - - - - - - - -

+/- Decrease (Increase) in Other Current Liabilities - - - - - - - - - - - -

Total Operation Cash Flow 76,645 75,667 68,658 62,790 60,671 80,223 75,015 74,037 69,147 63,116 60,834 58,552

Investing Cash Flow

+/- Decrease (Increase) in Fixed Assets - - - - - - - - - - - -

+/- Decrease (Increase) in Notes Receivables - - - - - - - - - - - -

+/- Decrease (Increase) in Securities, Investment - - - - - - - - - - - -

+/- Decrease (Increase) in tangible, noncurrent assets - - - - - - - - - - - -

Total Investing Cash Flow

Financing Cash Flow

+/- Decrease (Increase) in Borrowings - - - - - - - - - - - -

Payment in principle - - - - - - - - - - - -

- Dividends Paid - - - - - - - - - - - -

Total Financing Cash Flow

Total Cash Flow 5,625 5,625 - - 5,625 5,625 5,625 5,625 5,625 5,625 5,625 5,625

Cash at beginning of period 3,353,38

8

3,359,01

3

3,364,63

8

3,370,26

3

3,375,88

8

3,381,51

3

3,387,13

8

3,392,76

3

3,398,38

8

3,404,01

3

3,409,63

8

3,415,26

3

Cash at end period 3,359,01

3

3,364,63

8

3,370,26

3

3,375,88

8

3,381,51

3

3,387,13

8

3,392,76

3

3,398,38

8

3,404,01

3

3,409,63

8

3,415,26

3

3,420,88

8

Year 3

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

Operating Cash Flow

Net Income after Tax 87,276 91,677 82,875 77,985 70,487 94,611 90,047 94,937 86,298 82,549 80,430 77,007

+ Depreciation and amortization 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562

+/- Decrease (Increase) in Accounts Receiveable

+/- Decrease (Increase) in Inventory -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098

+/- Decrease (Increase) in Other Current Assetes - - - - - - - - - - - -

+/- Decrease (Increase) in Accounts Payable - - - - - - - - - - - -

+/- Decrease (Increase) in Accrued Expenses - - - - - - - - - - - -

+/- Decrease (Increase) in Other Current Liabilities - - - - - - - - - - - -

Total Operation Cash Flow 85,740 90,141 81,339 76,449 68,951 93,075 88,511 93,401 84,762 81,013 78,894 75,471

Investing Cash Flow

+/- Decrease (Increase) in Fixed Assets - - - - - - - - - - - -

+/- Decrease (Increase) in Notes Receivables - - - - - - - - - - - -

+/- Decrease (Increase) in Securities, Investment - - - - - - - - - - - -

+/- Decrease (Increase) in tangible, noncurrent assets - - - - - - - - - - - -

Total Investing Cash Flow

Financing Cash Flow

+/- Decrease (Increase) in Borrowings - - - - - - - - - - - -

Payment in principle - - - - - - - - - - - -

- Dividends Paid - - - - - - - - - - - -

Total Financing Cash Flow

Total Cash Flow 5,521 5,521 5,521 5,521 5,521 5,521 5,521 5,521 5,521 5,521 5,521 5,521

Cash at beginning of period 3,420,88

8

3,426,40

9

3,431,93

0

3,437,45

1

3,442,97

2

3,448,49

3

3,454,01

4

3,459,53

5

3,465,05

6

3,470,57

7

3,476,09

8

3,481,61

9

Cash at end period 3,426,40

9

3,431,93

0

3,437,45

1

3,442,97

2

3,448,49

3

3,454,01

4

3,459,53

5

3,465,05

6

3,470,57

7

3,476,09

8

3,481,61

9

3,487,14

0

Year 4

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

Operating Cash Flow

Net Income after Tax 82,387 97,057 98,850 91,026 90,700 105,401 108,401 114,987 107,401 108,401 87,401 85,401

+ Depreciation and amortization 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562

+/- Decrease (Increase) in Accounts Receiveable - - - - - - - - - - - -

+/- Decrease (Increase) in Inventory -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098

+/- Decrease (Increase) in Other Current Assetes - - - - - - - - - - - -

+/- Decrease (Increase) in Accounts Payable - - - - - - - - - - - -

+/- Decrease (Increase) in Accrued Expenses - - - - - - - - - - - -

+/- Decrease (Increase) in Other Current Liabilities - - - - - - - - - - - -

Total Operation Cash Flow 80,851 95,521 97,314 89,490 89,164 103,865 106,865 113,451 105,865 106,865 85,865 83,865

Investing Cash Flow

+/- Decrease (Increase) in Fixed Assets - - - - - - - - - - - -

+/- Decrease (Increase) in Notes Receivables - - - - - - - - - - - -

+/- Decrease (Increase) in Securities, Investment - - - - - - - - - - - -

+/- Decrease (Increase) in tangible, noncurrent assets - - - - - - - - - - - -

Total Investing Cash Flow

Financing Cash Flow

+/- Decrease (Increase) in Borrowings - - - - - - - - - - - -

Payment in principle - - - - - - - - - - - -

- Dividends Paid - - - - - - - - - - - -

Total Financing Cash Flow

Total Cash Flow 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417

Cash at beginning of period 3,487,14

0

3,492,55

7

3,497,97

4

3,503,39

1

3,508,80

8

3,514,22

5

3,519,64

2

3,525,05

9

3,530,47

6

3,535,89

3

3,541,31

0

3,546,72

7

Cash at end period 3,492,55

7

3,497,97

4

3,503,39

1

3,508,80

8

3,514,22

5

3,519,64

2

3,525,05

9

3,530,47

6

3,535,89

3

3,541,31

0

3,546,72

7

3,552,14

4

Year 5

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

Operating Cash Flow

Net Income after Tax 102,477 109,160 119,746 98,891 91,556 121,874 151,214 134,914 143,553 117,636 109,975 105,574

+ Depreciation and amortization 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562 4,562

+/- Decrease (Increase) in Accounts Receiveable - - - - - - - - - - - -

+/- Decrease (Increase) in Inventory -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098 -6,098

+/- Decrease (Increase) in Other Current Assetes - - - - - - - - - - - -

+/- Decrease (Increase) in Accounts Payable - - - - - - - - - - - -

+/- Decrease (Increase) in Accrued Expenses - - - - - - - - - - - -

+/- Decrease (Increase) in Other Current Liabilities - - - - - - - - - - - -

Total Operation Cash Flow 100,941 107,624 118,210 97,355 90,020 120,338 149,678 133,378 142,017 116,100 108,439 104,038

Investing Cash Flow

+/- Decrease (Increase) in Fixed Assets - - - - - - - - - - - -

+/- Decrease (Increase) in Notes Receivables - - - - - - - - - - - -

+/- Decrease (Increase) in Securities, Investment - - - - - - - - - - - -

+/- Decrease (Increase) in tangible, noncurrent assets - - - - - - - - - - - -

Total Investing Cash Flow

Financing Cash Flow

+/- Decrease (Increase) in Borrowings - - - - - - - - - - - -

Payment in principle - - - - - - - - - - - -

- Dividends Paid - - - - - - - - - - - -

Total Financing Cash Flow

Total Cash Flow 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417 5,417

Cash at beginning of period 3,552,14

4

3,557,56

1

3,562,97

8

3,568,39

5

3,573,81

2

3,579,22

9

3,584,64

6

3,590,06

3

3,595,48

0

3,600,89

7

3,606,31

4

3,611,73

1

Cash at end period 3,557,56

1

3,562,97

8

3,568,39

5

3,573,81

2

3,579,22

9

3,584,64

6

3,590,06

3

3,595,48

0

3,600,89

7

3,606,31

4

3,611,73

1

3,617,14

8

7.3 Balance Sheet

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

ASSET

Current Assets

Cash 284534 356268 399435 433796 467523 528288 585574 641882 699820 738110 779401 816,095

Inventories (Ending Inventory) -4,698 -6,498 -6,234 -6,129 -7,998 -6,098 -6,098 -6,098 -6,098 -6,098 -7,456 -6,098

Total Current Assets 279,836 349,770 393,201 427,667 459,525 522,190 579,476 635,784 693,722 732,012 771,945 809,997

Non Current Assets

Property and Equipment

Machinery and Equipment 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720

Total: Property and Equipment - - - - - - - - - - - -

Less: Accumulated Depreciation -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562

Total non Current Asset 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158

TOTAL ASSETS 548,994 618,928 662,359 696,825 728,683 791,348 848,634 904,942 962,880 1,001,170 1,041,103 1,079,155

LIABILITY AND EQUITY

LIABILITY

Current Liability

Account Payable - - - - - - - - - - - -

Wages Payable - - - - - - - - - - - -

Taxes Payable - - - - - - - - - - - -

Total Current Liabilities - - - - - - - - - - - -

Non Current Liability

Long-Term Liability

Long Term Debt 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000

Total long-Term Liability 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000

Total Liabilities 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000

EQUITY

Capital - - - - - - - - - - - -

Retains Earnings 48,994 118,928 162,359 196,825 228,683 291,348 348,634 404,942 462,880 505,170 541,103 579,155

Total Equity 48,994 118,928 162,359 196,825 228,683 291,348 348,634 404,942 462,880 505,170 541,103 579,155

Total Liabilities & Equipment 548,994 618,928 662,359 696,825 728,683 791,348 848,634 904,942 962,880 1,005,170 1,041,103 1,079,155

Year 2 January February March April May June July August September October November December

ASSET

Current Assets

Cash 987,826 1062609 1137063 1194145 1261202 1343509 1421562 1496157 1571800 1638818 1746494 1814328

Inventories (Ending Inventory) -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698

Total Current Assets 980128 1054911 1129365 1186447 1253504 1335811 1413864 1488459 1564102 1631120 1738796 1,806,630

Non Current Assets

Property and Equipment

Machinery and Equipment 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720

Total: Property and Equipment - - - - - - - - - - - -

Less: Accumulated Depreciation -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562

Total non Current Asset 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158

TOTAL ASSETS 1,249,286 1,324,069 1,398,523 1,455,605 1,522,662 1,604,969 1,683,022 1,757,617 1,833,260 1,900,278 2,007,954 2,075,788

LIABILITY AND EQUITY

LIABILITY

Current Liability

Account Payable - - - - - - - - - - - -

Wages Payable - - - - - - - - - - - -

Taxes Payable 45,975 44,765 46,895 43,273 45,698 45,972 46,723 46,234 48,714 49,897 72,550 76,423

Total Current Liabilities 45,975 44,765 46,895 43,273 45,698 45,972 46,723 46,234 48,714 49,897 72,550 76,423

Non Current Liability

Long-Term Liability

Long Term Debt 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000

Total long-Term Liability 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000

Total Liabilities 545,975 544,765 546,895 543,273 545,698 545,972 546,723 546,234 548,714 549,897 572,550 576,423

EQUITY

Capital - - - - - - - - - - - -

Retains Earnings 657336 734539 804733 869059 931266 1013025 1089576 1165149 1235832 1300484 1362854 1422942

Total Equity 657336 734539 804733 869059 931266 1013025 1089576 1165149 1235832 1300484 1362854 1422942

Total Liabilities & Equipment 1,249,286 1,324,069 1,398,523 1,455,605 1,522,662 1,604,969 1,683,022 1,757,617 1,833,260 1,900,278 2,007,954 2,075,788

Year 3 January February March April May June July August September October November December

ASSET

Current Assets

Cash 1,930,708 1929965 2017100 2087841 2163178 2258337 2349886 2443845 2535103 2620018 2745754 2830507

Inventories (Ending Inventory) -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698

Total Current Assets 1923010 1922267 2009402 2080143 2155480 2250639 2342188 2436147 2527405 2612320 2738056 2,822,809

Non Current Assets

Property and Equipment

Machinery and Equipment 183,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720

Total: Property and Equipment - - - - - - - - - - - -

Less: Accumulated Depreciation -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562

Total non Current Asset 179,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158

TOTAL ASSETS 2,102,168 2,191,425 2,278,560 2,349,301 2,424,638 2,519,797 2,611,346 2,705,305 2,796,563 2,881,478 3,007,214 3,091,967

LIABILITY AND EQUITY

LIABILITY

Current Liability

Account Payable - - - - - - - - - - - -

Wages Payable - - - - - - - - - - - -

Taxes Payable 45,975 44,765 46,895 43,273 45,698 45,972 46,723 46,234 48,714 49,897 72,550 76,423

Total Current Liabilities 45,975 44,765 46,895 43,273 45,698 45,972 46,723 46,234 48,714 49,897 72,550 76,423

Non Current Liability

Long-Term Liability

Long Term Debt 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000

Total long-Term Liability 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000

Total Liabilities 545,975 544,765 546,895 543,273 545,698 545,972 546,723 546,234 548,714 549,897 572,550 576,423

EQUITY

Capital - - - - - - - - - - - -

Retains Earnings 1,510,218 1,601,895 1,684,770 1,762,755 1,833,242 1,927,853 2,017,900 2,112,837 2,199,135 2,281,684 2,362,114 2,439,121

Total Equity 1,510,218 1,601,895 1,684,770 1,762,755 1,833,242 1,927,853 2,017,900 2,112,837 2,199,135 2,281,684 2,362,114 2,439,121

Total Liabilities & Equipment 2,102,168 2,191,425 2,278,560 2,349,301 2,424,638 2,519,797 2,611,346 2,705,305 2,796,563 2,881,478 3,007,214 3,091,967

Year 4 January February March April May June July August September October November December

ASSET

Current Assets

Cash 2,941,998 2,946,635 3,049,745 3,133,527 3,229,077 3,335,026 3,444,929 3,558,938 3,671,299 3,782,066 3,914,773 4,007,920

Inventories (Ending Inventory) -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698

Total Current Assets 2,934,300 2,938,937 3,042,047 3,125,829 3,221,379 3,327,328 3,437,231 3,551,240 3,663,601 3,774,368 3,907,075 4,000,222

Non Current Assets

Property and Equipment

Machinery and Equipment 183,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720

Total: Property and Equipment - - - - - - - - - - - -

Less: Accumulated Depreciation -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562

Total non Current Asset 179,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158

TOTAL ASSETS 3,113,458 3,208,095 3,311,205 3,394,987 3,490,537 3,596,486 3,706,389 3,820,398 3,932,759 4,043,526 4,176,233 4,269,380

LIABILITY AND EQUITY

LIABILITY

Current Liability

Account Payable - - - - - - - - - - - -

Wages Payable - - - - - - - - - - - -

Taxes Payable 45,975 44,765 46,895 43,273 45,698 45,972 46,723 46,234 48,714 49,897 72,550 76,423

Total Current Liabilities 45,975 44,765 46,895 43,273 45,698 45,972 46,723 46,234 48,714 49,897 72,550 76,423

Non Current Liability

Long-Term Liability

Long Term Debt 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000

Total long-Term Liability 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000

Total Liabilities 545,975 544,765 546,895 543,273 545,698 545,972 546,723 546,234 548,714 549,897 572,550 576,423

EQUITY

Capital - - - - - - - - - - - -

Retains Earnings 2521508 2618565 2717415 2808441 2899141 3004542 3112943 3227930 3335331 3443732 3531133 3616534

Total Equity 2521508 2618565 2717415 2808441 2899141 3004542 3112943 3227930 3335331 3443732 3531133 3616534

Total Liabilities & Equipment 3,113,458 3,208,095 3,311,205 3,394,987 3,490,537 3,596,486 3,706,389 3,820,398 3,932,759 4,043,526 4,176,233 4,269,380

Year 5 January February March April May June July August September October November December

ASSET

Current Assets

Cash 3,805,875 3822615 3946621 4038268 4134674 4257096 4409812 4543748 4692261 4812263 4967544 5080864

Inventories (Ending Inventory) -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698 -7,698

Total Current Assets 3,798,177 3,814,917 3,938,923 4,030,570 4,126,976 4,249,398 4,402,114 4,536,050 4,684,563 4,804,565 4,959,846 5,073,166

Non Current Assets

Property and Equipment

Machinery and Equipment 183,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720 273,720

Total: Property and Equipment - - - - - - - - - - - -

Less: Accumulated Depreciation -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562 -4,562

Total non Current Asset 179,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158 269,158

TOTAL ASSETS 3,977,335 4,084,075 4,208,081 4,299,728 4,396,134 4,518,556 4,671,272 4,805,208 4,953,721 5,073,723 5,229,004 5,342,324

LIABILITY AND EQUITY

LIABILITY

Current Liability

Account Payable - - - - - - - - - - - -

Wages Payable - - - - - - - - - - - -

Taxes Payable 45,975 44,765 46,895 43,273 45,698 45,972 46,723 46,234 48,714 49,897 72,550 76,423

Total Current Liabilities 45,975 44,765 46,895 43,273 45,698 45,972 46,723 46,234 48,714 49,897 72,550 76,423

Non Current Liability

Long-Term Liability

Long Term Debt 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000

Total long-Term Liability 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000

Total Liabilities 545,975 544,765 546,895 543,273 545,698 545,972 546,723 546,234 548,714 549,897 572,550 576,423

EQUITY

Capital - - - - - - - - - - - -

Retains Earnings 3,385,385 3,494,545 3,614,291 3,713,182 3,804,738 3,926,612 4,077,826 4,212,740 4,356,293 4,473,929 4,583,904 4,689,478

Total Equity 3,385,385 3,494,545 3,614,291 3,713,182 3,804,738 3,926,612 4,077,826 4,212,740 4,356,293 4,473,929 4,583,904 4,689,478

Total Liabilities & Equipment 3,977,335 4,084,075 4,208,081 4,299,728 4,396,134 4,518,556 4,671,272 4,805,208 4,953,721 5,073,723 5,229,004 5,342,324

Chapter 8

Risk Management

I Tim & Desert Sweety shop

Risk of I Tim ice cream homemade shop is mean opportunities and situation what are

make impact to the purpose or goal deviations cause damage and uncertain of many factor in

market and can occur at any time in the future. So we can analysis risk what factor have impact

to company for make sure that we can understand in problem and can choose the best way to

solve the problem in the future.

Strategic of risk in ice cream market can separate two type. First is external risk the

element such as politic risk, economic risk, competitive factor. Second is internal risk the

element such as human resource, organization management.

1. External factors risk

- Politic factor : If situation of politic is not good will effect to economics and business

cannot run. Such as, if the political situation is worsens, the investor not sure to invest in

Thailand. Even our company what located in Thailand. It makes sluggish economy.

- Technology risk : The home bakery market was heavily influenced by Japanese bakery

products and technologies. How we keep to develop our product as a big one in

competitive market. Develop technology could affect with our business. Technology will

follow us to reduce the power, cost, and time of production. Production output may better

also. High technologies give us advantages than competitors.

- Product - The addictive nature our breads and other goodies, is in the natural fermentation

process and natural ingredients, as well as creation.

- Marketing &Selling - More than a form of staple food.

- Economic : Economic system is importance to control everything then if system fail

power of purchase is less , if system is good power of purchase and payment has good.

- Customer need analysis : Customer needs analysis is used in a variety of product and

brand management contexts, including Concept Development, development of the Core

Product Concept, Product Development, Value Analysis.

- Direct Financial Risks : Failure to manage the people aspects of a business effectively

therefore exposes the organization to unnecessary financial costs through fines and/or

legal fees. In some areas of employment law; sex and race discrimination for example,

there are no limits to the fines that the law can impose.

- Indirect Financial Risks : More difficult to manage and control are the indirect costs

associated with managing an alienated workforce. These include increased management

time and effort, rising absenteeism, and declining employee performance.

- Competitive factors : competitive advantage to exist prior to an established relationship.

No matter what you are selling, defining your target market and maintaining a strong

position to attack that market is vital for success.

o Cost is simple - it’s the price you are charging for your product or service. What will your

product or service cost? All too often people are under the impression that the cheaper the

product is, the more likely it is to sell. While that is partially true, companies that only

compete on cost generally don’t offer a quality product. Who competes on cost: Dollar

stores, distributors, larger companies pursuing higher volume and lower profit margins.

o Quality & Accessible -We cannot risk damaging the reputation of our quality, which is

crucial to establishing a tradition and maintaining our brand. The general public does

know what to think in terms of quality. The common viewpoint is that the higher the

quality the better. The quality that is generally assessed is in relation to the standard of

excellence. From an engineering standpoint, the quality of a product relates to the

elimination of variability. If a product goes out the door the same way every time it is a

“quality” product. If each time a part is ordered it has a high degree of variation, it is be

considered a low-quality product. This extends also to the customer service you provide.

http://www.shyentrepreneur.com/general-business-principles/factors-of-competitive-

advantage/

2. Internal factors risk

- Staff or employee factor

May need a lot of employees. Directly make the goods with a short shelf life at the shops

like a bread, cake. but items with a longer lifespan all the ice cream are prepared at a

factory in Chiang Mai factory.

o Risk: Fast-growing companies usually have big dreams but operate with small staffs — a

recipe for overwork. Overworked employees are prone to make errors and omissions,

provide poor customer service and show low productivity. Employees who see overwork

as a permanent situation may become resentful, see it as poor management and seek work

elsewhere.

o Risk: The loss of a key person can be devastating. In a small company, each person is

essential since they often serve as an entire department, performing multiple roles. Key

employees may oversee as well as execute. The assistant to the business owner may

answer phones and serve as office manager. A sales director may manage day-to-day

client relationships as well as oversee production. The loss of that person for two weeks

on jury duty may require the business owner to step in, disrupting new business

development and hurting future receivables. The damages are greater when key

employees resign. Large companies buy key person insurance for top executives, but that

often is not feasible for smaller businesses.

1203302

Project Feasibility study and Evaluation

“ I Tim & Dessert sweety ”

5231207018 Chayaporn Thanomthai

5231207130 Antika Wongsa

5331207069 Eunkil Shin

Seat 01 Section 2