Risk Factors
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Risk from uncertainty of the economic situation, which affects the price, and volume of TV commercial production business The TV commercial production business is directly related to advertising via TV media, which in turn relates to the economic situation due to the reason that consumersû expenses and survival of general business are important factors, which affect the decision making procedure of the owner of the product or service to utilize advertising media as marketing tools for promotion. Therefore, during the economic slowdown, the advertising business may be affected as most of the Matching Groupûs customers may reduce advertising expenditure or reduce the production of TV commercials. The revenue and performance of the Matching Group will, therefore, reduce. Previously, the TV commercials productions by the Matching Group are mostly for the consumers products, food and beverage, and mobile phone. However, the economic situation affects each business differently. The Matching Group can minimize this risk as the Groupûs customer base consists of variety of customer. Therefore, the risk arises from the volatility of the economic situation, which affect the decision making of the customer is minimal. Even though the economy has slowed down, some businesses still need marketing strategies to stimulate competition. The advertising expenditure via TV media is considered the most effective and efficient marketing strategy compared to other types of media. In the year 2004, the Matching Groupûs revenue from TV commercial production amount to 490.27 million baht or 51.33% of the Companyûs total revenues.
Risk from dependence on human resource -
Dependence on the executives The Company operates under 2 key executives namely Mr. Somchai Cheewasutthanon, the Managing Director and Mr. Thanisaphong Sasinmanop, the Director and Senior Executive Vice President for Production. The 2 key persons are valuable human resources for the business operation of both the Company and subsidiary companies. If the Company has to lose any of these 2 key persons, the management and performance of the Matching Group may be affected. However, the fact that these 2 persons are the Companyûs founders for more than 10 years and are the Companyûs major shareholders has revealed their strong intention to manage the Company to grow prosperously. Beside, the Company has also decentralized the authority to other executives to become involved in the management and decision making procedures. The systematic organization structure will also assist in releasing the dependency on particular executive.
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Dependence on the directors and production team The TV commercial production business highly relies on the experienced personnel particularly the directors who initiate the creativity, are skillful and experienced. The supporting teamwork is also very important. The recruitment of these personnel requires a particular time period in training in order to be able to produce quality and successful TV commercials that serves the customersû demand. Therefore, the directors and production team are key factors to successfully operate TV commercial production business. Currently, the Company has 9 contracted directors with supporting production team of 130 persons. A N N U A L R E P O R T 2004 ë M A T C H I N G S T U D I O P U B L I C C O M P A N Y L I M I T E D