Module 13 - Sector case studies

Introduction

This training kit is intended for a rural women's cooperative group business with a focus on four sectors: food, wood, handicrafts and textiles. Each module of the kit contains case studies which can be adapted for different sectors using the tips given along with the handouts.

This module contains four additional case studies, one from each sector.

Case study details

The trainers may adapt or use these additional case studies as alternatives.

Food

Case study: Ban Chumpol women's cooperative Business, (rice-roll crackers)

General information

Address: 23/1 Village Chumpol, Salthingpra District, Songkla Province

Established in 1998 to produce traditional sweets, the group later added products such as rice-roll crackers.

Savings

The group's monthly savings range between 8 000 and 10 000 Baht, which are deposited with the Agricultural Cooperative in Salthingpra. The group offers a 3 percent annual interest on deposits and is not engaged in any credit activity. Pensri Yupayong is responsible for the savings activity

Production

Raw material purchased from retail shops in Hatyai district

Tools and equipment

Production process

The production process includes

• Preparing and mixing the ingredients
• Making the rolls and baking them in the oven
• Packaging

The members design the packaging themselves.

Marketing

Neighborhood retailers are regular customers of this group. The average individual purchase ranges from 1 000 to 2 000 Baht and the group's monthly income varies between 10 000 and 21 000 Baht.

Quarterly performance

Job distribution

Group decision-making pattern

The group's accounts were not audited for the past two years. The group retained 4 percent of the profits as working capital and distributed the remaining surplus at the rate of 10 000 to 14 000 Baht per member.

Training programmes attended by the group

Future plans

• Increase markets
• Training for members on baking of rice rolls

Needs of the group

The group needs the following resources and training:

• Flour mill machine
• Product design
• Product image creation
• Training in production of other sweets

Exercise

Discuss and analyse the strengths and weaknesses of this group and make a suitable business plan.

Wood

Case study: Bannamaepu Cooperative Women's Group Business (Bamboo furniture)

General information

Address: 349 village 19, Tambon Bangdad, Nong Buadang District, Chaiyaphum Province.

Before the group was set up on 15 August 2000, Bannamaepu villagers had to cut trees on public forest land to make furniture. To avoid this, they switched to bamboo furniture after attending a training course conducted by the Non-Formal Education Center. The bamboo furniture women's group enterprise was set up with 37 members and registered with the local agricultural cooperative.

Group capital

1. The Cooperative Promotion Department provided two grants of 45 000 and 85 000 Baht to the group.

2. Members mobilized 3 700 Baht on their own with each member contributing 100 Baht.

Production

Input supply

Sales

Total annual sale is 700 000 Baht.

Raw material

The raw material is purchased from a neighbourhood wholesale shop.

Tools

Process of production

The production process includes:

• Preparing and cutting the bamboo before fabrication
• Fabrication of furniture
• Polishing and colouring
• Waxing (except in specific cases where waxing is not requested)

The entire production process takes about 15 days. Workers with elementary carpentry skills are hired. The current products were designed after discussions among members. The group requested training for advanced skill development from the Provincial Labor Skill Development Center.

Marketing

The group has clients in several provinces such as Chonburi, Korat, Lopburi, Khonkaen, and Bangkok. Generally, high-income clients prefer larger furniture, while low-income customers buy smaller pieces. The group's products enjoy a reputation for good quality at low price. Its competitors are in Pimai District, Korat, and Chong Salmmoe District.

Savings

The group treasurer is responsible for savings and credit activities. The group offers 4 percent annual interest on savings and charges its members 12 percent yearly interest on credit.

Credit

Job distribution

• The secretary of the group is responsible for bookkeeping, even though she has no training in this.

• The group's business accounts were audited over the past two years, but a report from the auditor had not been received.

• Marketing is handled by three marketing sub-committees.

• Production is handled by two sub-committees.

• Finance is handled by three sub-committees.

• Promotion is handled by two sub-committees.

Decision-making pattern of the group

• Leaders are elected once in a year.
• The group meets once a month and takes decisions by vote.
• In case of a tied vote, the leader of the committee is authorised to make the final decision.
• There have been some conflicts among group members regarding the issue of actual sales of products.
• Respondents felt that members understand the principles of cooperatives and cooperation.
• The average shareholding is two shares per member at 100 Baht per share.

Training

Future training needs

• Product design (down-sizing)
• Accounting

Future plans

Current production exceeds sales and as a result, the group holds large stocks. The group wants to decrease production by 30 percent to reduce stock-carrying costs.

Other needs

The group felt the need for the following additional resources:

Exercise

Discuss and analyse the strengths and weaknesses of this group. Make a suitable business plan for this group based on the strengths and weaknesses.

Textile

Case study: Ban Tab Klai - Cooperative Women's Group Business

General information

Address: Village Rai District, Uthai Thani Province
Year established: 28 April 1994
Number of members: 54
Number of active members: 25

The people of Tab Klai village in Uthai Thani province have a distinctive tradition of hand weaving and once used to weave textiles for themselves. However, now they often lack the funds to buy the raw material.

Savings

The savings of group members ranges from 300 to 600 Baht. The group offers 4 percent interest per annum on savings. Kunya Pengun is responsible for this activity.

Raw material

Product gathering and distribution

The group collects products from its members for distribution.

Process of production

The process of production involves five steps:

• Purchasing the cotton yarn
• Dyeing the cotton yarn
• Preparing the weft and warp in the loom
• Preparing the weaving pattern
• Weaving

The group uses traditional looms for weaving.

Designing

While the weaving skills have been transferred from generation to generation, the weave patterns are a blend of the old and the new to attract customers. However, the group does not want to switch to new designs completely because it wants to conserve traditional weaving patterns.

Packaging

Paper and cotton bags designed by the Cooperative Promotion Department are used for packaging.

Marketing

Costing

A 23 cm x 2 mt piece cloth woven with an animal design, costs 2 045 Baht.

This is made up of:

Business performance for the year 2001 - 2002

Job distribution

Committees

The group distributes 15 percent of the total profits to members

Training programmes attended by the group

The group needs training on product design and market identification.

Group needs

The group needs the following resources:

• business activities which provide effective regular income for its members
• marketing centre
• working capital of 200 000 Baht to meet production costs and collect products
• tools and equipment

Exercise

Discuss and analyse the strengths and weaknesses of this group and make a suitable business plan based on these.

Handicrafts

Case study: Pitsanulok - Cooperative Women's Group Business (artificial flowers from sal paper)

General information

Address: NakhonThai District, Pitsanulok Province

The group was established on 20 September 1999 within the mandated area of Nakhonthai Agricultural Cooperatives. The people of Ban-Yeang village were encouraged to start producing and selling artificial flowers made from sal paper after they visited other sal paper businesses and realized that their village had the necessary raw material kenaf.

The group then began improving its product quality and won an award in a 'new occupations' contest at the district level.

However, as their product quality was still not good enough for the market, the group took samples to the government's Industrial Promotion Center 2 (IPC) in Pitsanulok Province, which was set up to promote local craft and industry. There, the women attended a two-day training course on product quality improvement. In 2001, they attended additional training courses on dyeing and artificial flower making for a period of 10 days at IPC 2.

By 2002, the group had 52 members, with 37 of them active in business.

Group capital

1. Miyazawa fund for training 20 000 Baht; working capital of 90 000 Baht in 1999.
2. One Tambon One Product training fund of 50 000 Baht; working capital of 700 000 Baht.
3. Mobilization of 1 560 Baht from 52 group members

Committee

The group is represented by a seven-member committee. The term of each elected leader is one year. Production is supervised by the group leader and the group's consultant; finance management by the administrative committee and the accountant, while promotional tasks are handled by some members of the committee. The secretary keeps all bookkeeping records while marketing is conducted by a team of members. The accountant was trained by the cooperative's auditor as well as officials of the cooperative.

The division of duties is based on the five steps of the business:

1. Producing sal paper
2. Processing products from sal paper
3. Making artificial flowers
4. Promotion of Kenaf planting (raw material)
5. Marketing

Group activities

Credit

The group charges 3 percent interest per year on credit. The credit is used mostly for household expenses, sal paper production and making other products like artificial flowers.

Steps in the production process

1. Boiling the kenaf with sodium hydroxide for three hours
2. Washing with fresh water
3. Grinding
4. Screening and moulding the grounded kenaf in a net frame
5. Drying

Raw material

Tools

The grinding machine was bought from Lampang Province at a cost of 40 000 Baht.

Marketing

The main customers are the Thai Craft Company, Exporters.

Sales by area and channel (Baht)

Most of the competitors are private companies with access to more working capital, modern technology and a variety of products.

Income-Expense statement as on 31 March 2002

Use of profits

The group distributed the profits among its members at 100 Baht per head. A total of 5 200 Baht was given out as profit to 52 members.

Problems

The group has both financial as well as marketing problems.

Further needs

• Training on product design
• Increasing sales volume

Exercise

Discuss and analyse the strengths and weaknesses of this group and make a suitable business plan for the group based on this.