A Financial Projection For CN-Fantasy Company

Project Feasibility Study and
Evaluation
Semester 2/2009
Mae Fah Luang University
Project Feasibility plan
Present to
Aj. Chaiyawat Thongintr
By
CN-Fantasy Electronic Company
Preface
I am very interesting with the IT industry. In the free time, I spent most of my time to
reading the relative knowledge. That’s why we focus our project on the digital
product industry. As the BA undergraduate students, we got a lots chance to write the
business plan, but this is the first time we deal with the realistic situation, such as the
financing. In this reports, I think every group members had practiced their knowledge
to their own works. We got more understanding a about how to bring a business plan
into the real life. Thus I believe what we have done in this project, will enhance our
practical skills for future career.
Executive Summary
Chinese has an old saying, “Time make it inevitable that in every profession, young
men replace the old”. Evidence of China’s digital product industry—MP3 Player,
MP4 Player, and other accessories—abounds in the country’s prosperous coastal cities.
According to practices for promoting the integrated development of urban and rural
areas through urbanization, the domestic electronic consumption demand was
significantly increased. Furthermore, the quality of citizen’s life, the Chinese digital
product industry will progress with the growth of the economy. To get a complete
picture of digital product industry in the world’s most populous and fastest growing
country, this project takes a closer look at four first-class digital player brands in
China, which are Ramos, Aigo, Newsmy and Meizu. Those four brands are
respectively belonging to four high-tech enterprises. They both serve their product
base on the fundamental “science and technology first, quality first, the pursuit of
customer satisfaction”.
This study gives, however, some of my hypothetic thinking for the whole market in
Thailand, for our product. In order to test these hypothetic thinking, a multi-stage
methodology was employed that is often taught in courses on international strategic
planning at graduate schools of business. First, we apply Political, Economic, Social,
and Technological (PEST) analysis to study a framework of macro-environmental
factors, Competitor analysis to assess the strengths and weaknesses of current and
potential competitors, Strengths, Weaknesses, Opportunities, and Threats analysis to
identify the internal and external factors that are favorable and unfavorable to
achieving our objective. Then, we make every marketing strategy individually; they
are STP Strategy, Branding Strategy, Pricing Strategy, and Retailing Strategy. We also
discuss those which are indispensable for our company such as Product Offering,
Marketing Communication, and Business Ethics, etc.
This project concerns about importing, exporting and other international trade
regulation process. The study, therefore, is only for practicing basic approach to
analyze particular foreign market with the general knowledge about industry,
marketing, technology, a depth financial analysis and risk management.
We carry out an experiential analysis by using data of six years historical sale data to
calculate the profits for the project and draw following conclusions: the business for
selling the digital products which made in China to Thailand is profitable. The
company can show a realistic path in revenue by year three for the investment to
undertake.
Table Content

Chapter 1 Introduction ……………………………………………………………1
1.1 Project Objective
1.2 Benefits of Project
1.3 Activities/Time Frame

Chapter 2 Natural of Industry …………………………………………………….3
2.1 Natural industry – Digital product brand in China
2.2 Situation of Industry
2.3 Our product and service
2.31 services
2.4 The vision
2.5 Mission of our store
2.6 Strategy analysis
2.7 Operational level
Chapter 3 Market Feasibility Study………………………………………14
3.1 Market Analysis
3.11 General Environment Analysis
3.12 Competition Analysis
3.2 STP Analysis
3.3 Marketing Mix Strategy
3.4 Sales Forecast/Profit Estimation
3.5 Marketing Expenses
3.6 Conclusion
Chapter 4 Technical Feasibility Study………………………………........22
4.1 Production and Operations Analysis
4.2 cost of Investment
Conclusion
Chapter5 Financial analysis………………………………………………36
5.1 Profit/loss statement
5.2 Cash flow
5.3 Revenue forecast
5.4 Operating activities
5.5 Investment activities
5.6 Balance sheet
5.7 Cost of goods sold
Chapter 6 Risk Management……………………………………………………48
Chapter 7 Summary………………………………………………………51
Reference……………………………………………………………………………54
Chapter 1
Introduction
This business project is about importing and selling the digital product. This project
will consider all the business activities will happen in real life. We are going to
describe our business according the process which a real business runs on. Every
information relate with this project will be collected from the research.
Accord the observation of the digital product market of Chiang Rai, we found that
there are approach 20,000 students in Chiang Rai, and the main customers of the
digital product come from those students. Most digital product store only sells the
products of IPod and Sony. But the price of these products is relatively high for the
main customer. So we think a lower-price and high technology digital product such as
Mp4 player watch will satisfy their needs.
Chinese factories make all imaginable types of digital products, usually much cheaper
than anywhere else. Otherwise in recent year, the transportation between Thailand and
China has enjoyed a rapid development. Transport channel is more and more, but the
price is getting lower and lower. Due to these reasons above, The Company will be
located in Chiang Rai; the store site is near the Rajabhat University. The inventory
will be purchased from China suppliers for selling a lower price than other
competitors.
Project Objective
In this project, the main objective is to find out a more effective way to run our
business, and to make the business be profitable.
To achieve the goals, we will conduct the descriptive, analytical research. We will
apply the quantitative approach to collect and analyze numerical data. In this study,
primary and secondary research will be both incorporated. It supposes to be the
1

inductive research as well. We will use the theoretical frame work which consists of
the relative theory of marketing, logistic, especially financing, etc. There are a lot of
Mathematical Approach will be used to analysis the findings.
Benefits of Project
We have already written a lot of business plan, marketing plan and every kinds of
report. Sometimes we really think we know a lot about business. But we never
conduct any of our plans. Actually, knowing how to write a business plan doesn’t
mean you know how make the business, at least it may lack of feasibility. Some real
problem which we have not faced in our plan will be face in the real life.
Study on this project, however will cover this drawback, because we must think about
the reality. We should make every of our finding to be reliable. And we will put our
knowledge to work in solving real problems.
At last, through study on this project will help us to enhance knowledge and get more
understanding of the subjects in BA program; acquire skills such as communication
skills, intellectual skills and organization skills through practicing them; identify
opportunities in the future.
Activities/Time Frame
- Conduct an questionnaire about digital product in Mae Fah Luang University/1d

- Marketing data analysis/1d
- Collect the information about the operating expenses/3d
- Interview with the owners of some I.T product stores in Chiang Rai/1d
- Searching for the store site/3d
- Outsourcing/7~15d
- Finance analysis/1d
- Advertising making/2d
- Writing the project paper/5d
- Presentation/1d
2

Chapter 2
Natural of Industry
2.1 Natural industry – Digital product brand in China

RAmos Tech
Ramos Digital Technology Co., Ltd is one of the most famous digital companies in
China. Ramos is a venture company founded by excellent semi-conductor
professionals in 2001. The company has an abundance of excellent human resources
and strong technical force, dedicated to the emerging digital consumer market. The
main of their business scope include MP3, MP4 digital player and a variety of digital
peripheral products, products line include high cost performance of RM series, high
performance of V series and fashion personalized of Q series.
Ramos Company launched into consumption digital electron industry completely in

2004. Through a comprehensive expansion and upgrade in Chinese digital market, the
company started the stable and rapid development in the domestic market. Nowadays,
Ramos brand become more and more famous, distribution of partial product occupies
leading position in market and they become a dark horse in China domestic digital
player market.
The face of intense domestic and international competition, they are integrating kinds
of resources strategically, gradually and effectively. Through effective marketing
system and rapid market response, they are developing towards the industrial up
stream and building up our core competitive capability. Now, they have close tie with
several large suppliers of digital player chip from domestic and abroad. Besides their
own R&D group, they also keep good relationship with many R&D groups in the
world.
Newsmy
Newsmy is one of digital flagship enterprise in China. Beijing Newsmy found in 1996,
is a research and development, manufacturing, sales and service as a whole of
Beijing’s Zhong Guan Cun high-tech enterprise. At present, Newsmy Company has
about 3,500 employees, has about one hundred Professional R & D and technical
personnel, and has 27 branch offices in China.
In 2006, Newsmy becomes one of the most well-known digital brands in China. Their
main businesses include MP3, MP4, Mobile Phone, Flash Memory disk, USB Disk
and other digital products.
3

Newsmy MP3 sales volume is always ranked first in domestic. Because they
dependent on reliable product quality, excellent after-service, affordable price.
Nowadays “Newsmy MP3” has become a “high-cost MP3’ synonymous with a more
cost-effective within the digital industry known as the popularity of those products in
China. Newsmy MP4 is preferred brand of MP4 in China. Their flash memory disk
and USB disk products have small and fashionable appearance; in addition, they also
have reliable and stable quality. USB disk sales volume is always keep ranked first in
domestic.
Newsmy Company adheres to the "customer-oriented" aims to provide the best
quality service to customers. Customers can use online query, or telephone
counseling, Newsmy Company’s customer service will be in the most efficient
method to give customer Comprehensive solutions, and assist with self-test and repair
until the product resume normal use as soon as possible.
AIGO
Beijing Huaqi Information Technology Development Co., Ltd found in 1993, the
company is one high-tech enterprises in Zhong Guan Cun, Beijing, China. Their
annual business turnover maintains the steady growth of 60% in the past ten years,
and their products are exported to North America, Europe, Southeast Asia and other
regions. Their AIGO mobile storage products sales volume keep ahead in four
consecutive years, promote the rapid development of China's mobile storage industry,
and become the first large-scale industry entry into international market in China.
AIGO MP3 use only one year to achieve the highest occupancy rate in domestic,
monopolize this domain last for five years, and become ahead of many international
competitors in digital region.
At present, Beijing Huaqi Information Technology Development Co., Ltd has about
1,900 employees, 200 pfessional R & D and technical personnel, and a complete
marketing system. They have 17 institutional repository and other subsidiaries. Their
businesses include MP3, MP4, digital camera, mobile phone, computer peripheral and
other kinds of business.
Beijing Huaqi Information Technology Development Co., Ltd is known as “Digital

Industry Outstanding Enterprises”, “China’s information technology innovation with
the most potential business” by CCID in 2004.
Meizu
Meizu Technology Co., Ltd. is a high-tech enterprise specializing in the R&D,
manufacturing and marketing of portable multimedia devices. Established in March
2003, the annual production value already reached 50 million US dollars 2007.
During this time, Meizu created a name that today is now closely associated with
quality and style. Apart from immense popularity in the domestic market, Meizu
products are gradually making their way into homes in major overseas markets such
as Europe, US, Korea and Japan.
4

Meizu has ever since the start adopted the strategy for our products of maintaining
international level quality while at the same time to a price reasonable to the Chinese
public. One of the ways this is achieved is by developing only a select few, but very
successful product lines.
Meizu is dedicated to rising into a first-class international enterprise. Through

recruiting talented staff, importing advanced equipment, establishing strategic
relationships with top international companies and with a brand new building for
R&D and manufacturing – The Meizu Tech Building, the foundation is laid for
Meizu’s future rise.
2.2 Situation of Industry
China Guangdong is the world's manufacturing center, 80% mp3 maker of China
is from here. In southern China, especially Shenzhen production of various types of
radios, tape recorders, video machines, VCD, DVD, music center, home theater,
auditorium sound systems and other audio-visual products for more than 80% of the
test certification is in Shenzhen Electronic Product Quality Testing Center completed,
while the MP3 audio-visual products are also belong to the scope of national
regulations with the territoriality principle of electronic product testing, most
produced in Shenzhen, MP3 should be able to find a basis for testing.
Consumers to buy mp3 player, the price is the first consideration. Accounted for
75.2%, followed by the sound quality, accounting for 71.9% of users said that the
sound quality is good or bad will also decide whether to purchase MP3 products.
Capacity factor in the ranking is at the third position, with 66.5% of consumers as an
important reference. In addition, the MP3 market, product homogeneity, the brand is
often highlighted the role to, which is many users will be a brand as a reference factor,
the survey showed, considering the brand this factor is as high as 66.1% of users. The
appearance of the product is as a reference of factors account for 52.5% of the users’
ratio. From the proportion of several factors point of view, did not differ much,
indicating that consumers consider when buying MP3 products, many factors, from
the side reflecting the overall strength of the products with outstanding performance
to get consumers.
Experienced the madness in 2006, flat in 2007, MP3 market in 2008 is boom,
when the function and design at the same level, entangled, cut prices once again
become the market's overall trend, whether it is cross-brand, or the China local brands,
both struggle with the residents of the consumer price index rising so that continue
updating the price of the MP3 bottom line.
In recent years, MP3 players, the overall prices have been continuously falling,
and its price cuts and the reasons for this are similar to other IT products, mainly due
to decline in raw material costs, manufacturing process to improve, enhance and scale
decline in personnel costs and other factors, in addition, weakening of the dollar, the
RMB exchange rate increased by a certain extent, MP3 prices accelerated a decline in
the Chinese market.
Core price cuts cause: sharp drop in raw material costs
5

NAND memory chips are MP3 players, mobile phones and digital cameras and
other products, the main raw material, but since late 2006 to early 2007, due to the
upstream supplier of NAND memory chips to the market is too optimistic about the
prospects for a substantial increase in the output of NAND memory chips, but the
actual market demand significantly lower than expected levels, resulting in a serious
surplus production of NAND memory chips, the price plummeted, the market began
to shrink.
Authoritative international market research firm Gartner believes that short-term
market has no signs of recovery, coupled with the trend of a global recession was
increasingly evident, its 2008 global semiconductor market expectations, was not very
optimistic, in fact, only the first two months of 2008, market-mainstream 4GB NAND
memory chip prices already down 26% in early March 2008, in mainland China
memory market, 1GB/2GB/4GB NAND memory chip prices have respectively
dropped to 68 Baht, 97 Baht and 185Baht, and the , the upstream market, the new
wave of the impact of price cuts have not yet fully manifested in the end-product
markets.
As NAND prices have fallen sharply, Samsung, Toshiba, Hyundai and other
related manufacturers of memory chips sector has suffered a near devastating blow to
their earnings from profits in 2006 fell to the edge of today's losses, but the price of
memory chips because they cannot effective demand for support continues to decline.
In addition, due to Rock chip, Chinese domestic chip manufacturers such as
core-fly made great progress, its low price, superior performance, a new generation of
master chips on one hand, the high cost of foreign products out of the market will also
be developing MP3/MP4 Player substantially reduced the cost of the master program.
In the display, since the TPO, Chi Mei Optoelectronics, BOE and other display
manufacturers to upgrade manufacturing technology, it has the small size of portable
devices, display to the previous generation (or even the previous generation)
production line manufacturing, to ensure of the display yields and low prices.
Overall, due to flash memory chips, the master chip, display three major
sharp drop in raw material costs not fully reflected in the end-product prices,
MP3/MP4 players, lower prices will trend has continued.
Other price cuts reasons: technology, manufacturing, the combined effect
of exchange rate
As the size of the domestic MP3 market, the high-speed growth, the market has
taken shape in a handful account for most of the market share leader in the status quo,
these leaders with a more adequate capital accumulation, continued to strengthen and
consolidate its manufacturing processes and production scale, through the
introduction of modular, professional, highly efficient new generation of
manufacturing technology and related equipment, greatly improved the passing rate of
the product and process standards, and reduce the single-product manufacturing costs,
while accelerating the construction of raw materials through the supply chain and
product manufacturing industry chain clusters, gradually reveals the prototype scale.
As for the reasons for cross-brand products, price reductions, in addition to the
cost of raw materials to benefit from the decline in the international market, but also
6

with their share of China's economic growth related to the outcome, as the
international transfer of manufacturing to domestic, cross-brand manufacturing plant
will generally be transferred to the southeast coast of areas, low-cost, high quality
human resources, coupled with intensive modes of production to a large extent to
reduce their production costs.
In addition, the long-term U.S. dollar weakness, rising RMB exchange rate,
cross-brand products in the domestic market prices are significantly reduced. For
example, point of view, a fixed exchange rate in adjusting the RMB ago, a 100 dollar
MP3 player, equivalent to about RMB 823 RMB (U.S. dollar and the RMB exchange
rate of 1:8.23), is now also a 100 dollar MP3 player, equivalent to RMB only 682
RMB (U.S. dollar and the RMB exchange rate of 1:6.82), the price of virtually
dropped 17%. Of course, if even get to the bottom, import MP3 player prices also
imported electronic products in China customs tariff policy on zero, which is in
accordance with the WTO agreements in China, a major adjustment.
http://www.xe.com/ 07/01/2010
Whether manufacturing process improvements, enhanced scale, a decline in
personnel costs or exchange rates, trade, MP3 players, all of which contributed to
lower prices, in fact, benefited from the implementation of many of China's advance
in recent years, processing and manufacturing, export-oriented trade, macroeconomic
policy, as consumers, MP3 player, a clear underlying causes of lower prices after the
price cuts for the current product has a clearer understanding.
2.3 Our product and service

The main products of our company are MP3-player and MP4-player, come from four
first-class digital player brands in China, which are Ramos, Aigo, Newsmy and Meizu.
Those four brands are respectively belonging to four high-tech enterprises. They both
serve their product base on the fundamental “science and technology first, quality first,
the pursuit of customer satisfaction”.
Brand logo:
Ramos + Aigo + Newsmy + Meizu
7

The General Product List

RAMOS T17FHD
1, handheld portable FullHD 1080P Full HD
2, HDMI digital high-definition TV output 1080P
3,16 GB large-capacity built-in flash memory
4, high-speed OTG external hard drive from the capacity constraints
5, multi-format support full HD video encoding
The new dual-core 32-bit professional audio and video processing core AMRISC
800 × 480 resolution 4.3-inch LCD HDTV
Silicon image of high-quality HDMI output of non-destructive high-speed and high-definition
compatible OTG digital companion function
1920 × 1080P resolution, H.264, MPEG1/2/4 decoding
MKV, RMVB, AVI, MOV, MPG, MPEG, DAT, MOV, MP4, TS Multi-Video Format
MP3、 WMA、WAV、RM、OGG、AAC、M4A、FLAC、APE and many other audio format support
SMI、ASS、SSA、SRT、SUB、SUB.IDX multi-format subtitles support
JPG、BMP、PNG、GIF、TIF multi-format Pictures and TXT e-book format,
FLASH files support for SWF playback NTFS, HFS + partition
8

Aigo E5810(2GB)
This product provides several colors for selecting: Red and Black. 　
Capacity: 2GB
　 Storage medium: Flash memory
　 Interface: USB 2.0 interface
　 Support MP3 and WMA audio formats
　 Earphone: 2.5mm earphone interface
　 Battery: Built-in Lithium battery
　 Approved: CE / FCC
　 After sales service: 1 year warranty
The Newman Newsmy A18HD (nice name there) is a new media player out of China,
which claims to offer a spectacularly svelte 9.8mm thick form factor (which is a
couple of millimeters thinner than an iPhone at it’s thinnest point). In addition to its
striking looks, the A18HD has 16GB of built-in memory, and sports an oversize
5-inch, 16-million color LCD display. The device can play videos in 720p
resolution, but the screen’s resolution is an underwhelming 480 x 272, so you’ll
want to connect the included component video cable if you have any hope of playing
back your flicks at higher resolutions.
Audio formats supported include MP3, WMA and FLAC, while video can be played
in RM, RMVB, AVI, and FLV formats
9

Meizu Miniplayer TS
The M6 is from Meizu's digital audio player productions. Accordingly, it is only

emerging in certain parts of the world including the United States, Australia, France,
Russia and more. Though the M6 supports many audio formats, the US release did not
support MP3 format because of licensing issues. Apparently, there are workarounds to
the issue with specific firmware upgrades.
Recently, Dane-Elec has formed a deal with Meizu to provide distribution of the M6.
Apparently, Dane-Elec has ironed out MP3 licensing issues. Many European models
distributed by Dane‐Elec have their FM tuner disabled because of EU import duties;
this can also be remedied by a firmware update.
The M6 has been touted as an “iPod killer” because of its capabilities with respect to
its aesthetics. One characteristic regarding the Meizu M6 is its ability to function
without proprietary file formats and procedures.
1 GB (no longer produced), 2 GB, 4 GB, 8 GB (two 4 GB chips) flash

Capacity
memory
Size 79 mm × 48.2 mm × 10 mm
2.4 inch, 260‐thousand color QVGA, 320×240 pixel resolution

Display
TFT‐LCD screen
Weight 55 grams
10

Audio supports MP3, WMA, WAV, Ogg, FLAC, WMA lossless, APE
Video AVI format (Xvid) at up to 20 FPS and 384 to 512 kilobits per second
Photo BMP, JPEG, GIF
rechargeable lithium-ion battery; rated at 20 hours audio playback and 6

Battery
hours video playback
2.31 services
Our store will provided good service to our customer, meet customer needs and
wants. First ,we will introduction our product to customer, about function and other
accessory product ,if customer want to buy our product ,them can try to use the
product listing music and watch movie ,use other function ,make shall the product is
good for them really needs and wants. After customer buy our product our employee
will teach customer how to use the product, how to protect product. We will provide
the web--site to download the song and movie, or help the customer download the
new song, movie, and picture--book on store.
Our store will make the web-site ,customer can buy our product on-line, we
will deliver the product to customer ,there can try it ,check it have problem or make
shall this is good ,after than them can pay money to our .If customer use our product
have some quality problem in 3month ,we can change new one or pay the money to
customer. In 1year, have some damage is customer make, we will have customer
maintenance it, customer need to pay the maintenance cost.
2.4 The vision
To be the most popular Electronic product retailer of Thailand
2.5 Mission of our store
- Provided high quality, fashion appearance, popular among young people like it,
low price Mp3 and Mp4.
- We will make different destruction channel to sell our product ,find different
segment ,know customer needs and wants ,make shall our product have right
positioning achieve our vision.
11

- We will give the stockholder high profit, if we can sell more quantity product,
we will get more profit.
- Our company will give the employee training, expect salary, employee sell one
product can get 5%cost of the product price.
2.6 Strategy analysis
2.61 Corporate level
Integration strategies
Backward integration: the supplier is come from China industry ,in China Mp3
supplier competitors is large ,so the Mp3 give the stable from our company is very
important .So, our store can give the customer stable price ,current supplier can have
high profit margins.
Horizontal strategies ----Now ,many electronic product import the product from other
development country ,the product have price and tax, if product is broke need to high
maintenance cost ,also need to specialization staff teach customer how to use. Our
product have low price, high quality, can easy understanding how to play.
Intensive strategies
Market penetration ---we try to use some marketing strategy promotion our product
seeking increase market share present product through Mp3 marketing efforts.
Market development ---we will introduce Chinese Mp3 in our store ,Thailand is new
market ,now in Thailand Chinese Mp3 is not popular, no retrial sale it , our company
think Chinese Mp3 can sale very well in Thailand and price is better from student to
buy.
Product development---our store at the fixed date change our product same Chinese
product, our supple try to make new product attract more customer to buy product.
2.7 Operational level
Marketing strategy ---we will analysis competition, STP ,marketing mix strategy to
help our store know customer needs and wants .our store have some marketing
promotion like discount price to attract customer to buy our product.
12

Finance strategy---- outlining a business operating; clear know our generation profit
and loss. Finance strategy is to ensure the financial resources are provided to support
the strategic objectives of the organization. It supports these objectives together with
the HR strategy, the value for money strategy, the business development strategy
(currently in development) .
Accounting strategy ---we will write moth date every year, balance sheet ,income
statement and cash flow, how to get the profit ,or our store have loss.
Management system
Manager/Owner
- Mainly focus on management, dealing conflicts between different department
- Set mission and vision of business, make sure business is going to the right
direction
- Merchandise control, inventory
- Build up good relationship with supplier
- Acknowledge strength and weakness among competitors
- Provide good working environment
- Employees’ health care, and security to staffs
Accounting
- Accounting
- How well does business perform
Marketing
- Always seek new business opportunities
- Attract potential customer, keep profitable customer.
- Keep loyalty among customer
Veterinary
- Perform service to customer
- Trained and educated
13

COSTS/ STAFF SALARIES
Manager: 12,000 per month
Veterinarian: 10,000 per month
Staff: 8,000 per month
Total salaries: 54,000 baht per month
Chapter 3
Market Feasibility Study
3.1 Market Analysis

3.11 General Environment Analysis
Political ‐ The politics of Thailand are currently conducted within the

framework of a constitutional democratic monarchy, whereby the Prime Minister is
the head of government and a hereditary monarch is head of state. The judiciary is
independent of the executive and the legislative branches. After the 'democratic
revolution' in 1932, the country officially became under a constitutional democratic
monarchy with a prime minister as the head of government. The first written
constitution was issued.
During 2008, Thailand saw increasing political turmoil. The conflict makes the
political environment worsened slightly in 2009 when compared with before.
Moreover, future investment decisions by Thai companies could well be affected by
the uncertain political environment. Such perceptions, however, should come as no
surprise given the volatile global economic environment over the past few years,
coupled with the highly volatile political situation following the 2006 coup.
Economic - Thailand's real GDP growth in 2008 was 2.6 per cent, falling
below previous Thai Ministry of Finance growth estimates due to the emerging global
14

economic crisis. Thailand’s export sector, which accounts for around 60 per cent of its
GDP, suffered due to falling global demand – a trend that may continue into 2009. In
the first quarter of 2009, total exports declined by 23.1 per cent year-on-year, which
contributed to a 7.1% contraction in GDP. Headline inflation in January 2009 was
-0.4%.The Thai government has adopted a two-stage fiscal stimulus response to
address the effects of the crisis. The first phase, introduced in February 2009, was
aimed at stimulating domestic purchasing power through cash handouts. The second
phase, worth around $57 billion, will be released over the 2010-12 period for a range
of large scale infrastructure projects.
Social – Environment ‐ The culture of Thailand incorporates a great deal of

influence from India, China, Cambodia, and the rest of Southeast Asia. Thailand's
national religion Theravada Buddhism is central to modern Thai identity and belief. In
practice, Thai Buddhism has evolved over time to include many regional beliefs
originating from Hinduism, animism as well as ancestor worship. The official
language of Thailand is the Thai language, a Kradai language closely related to Lao,
Shan in Burma, and numerous smaller languages spoken in an arc from Hainan and
Yunnan south to the Malaysian border. It is the principal language of education and
government and spoken throughout the country. Most of Thai people have a positive
attitude to foreign products and services. The new generation of Thailand is able to
speak English very well and a little Chinese. There is no difficult for the diffusion of
Western and Asian products onto markets.
Environment ‐ Thailand’s economic growth over the last three decades has
been fueled and accompanied by rapid industrialization, urbanization, and by
intensified agricultural production and fishing. This growth, which has relied
extensively on the country’s abundant and diverse natural resources, has degraded
land and water quality, caused the loss of natural habitats, and generated increasing
levels of air and water pollution. In response, the Government and people of Thailand
have launched new initiatives to improve air and water quality, reforest degraded land,
15

adopt energy efficient technologies and invest in pollution abatement schemes. In
recent year, the World Bank’s relationship with Thailand has evolved from lender to
knowledge-sharer. Exemplifying this new role, the Bank and government have
recently established a Country Development Partnership for Environment (CDP-E)
(see below), which focuses on improving environmental quality and sustaining natural
resources through knowledge-sharing and demonstration.
Technology ‐ With the exception of multinational companies, businesses in

Thailand limit most of their Internet involvement to basic electronic data interchange,
processing networks and messaging systems. Some customs procedures are conducted
online, and the Stock Exchange of Thailand has permitted online trading since April
2002. Electronic banking is developing, with all the major banks now offering
transaction and account-checking services online. Websites are increasingly offering
interactive transactions, but most are static information outlets. The government is
offering more services online, mainly through its portal: www.ecitizen.go.th. Because
of the licensing structure and the limited scale of commerce in Thailand,
Internet-related transactions are defined purely in technological terms.
3.12 Competition Analysis
Competitor Analysis ‐ In Chiang Rai, there are lots of digital product

stores, small and big, normal and special. They mainly located in It center of Chiang
Rai city, Big C shopping mall, the neighborhood of the universities. Those stores
consist of most computer stores and little specialty stores. Those computer stores
provide a limited variety and assortment of merchandise at a convenient location.
They enable consumers to make purchases quickly, without having to search through
a large store and wait in long checkout line. They provide low price product but low
16

service also. For the specialty stores in Chiang Rai, they concentrated on a limited
number of complementary merchandise categories and provide a high level of service
in relatively small stores. Most of these stores just offer quite expensive digital
products, such as product of IPod, Sony, and Philips etc.
Customer Analysis – In recent time, we just conducted a study on the

customer behavior of Digital product in Chiang Rai. The results shows that the mainly
customer of Digital product are students whose age is between 15 to 20 years old.
When try to ask: “do you like to wear mp3 player-watch?” There are almost 70% of
those participators said yes. 42% of them purchased digital product from IT center,
50% from shopping mall and 8% from other stores. The lifestyle of those mainly
customer are sport and nature. They are more interesting with high-technology
product. Most of digital product buyer is the end user. They purchase the products for
themselves. There are a high number of products and services for whom the buyer is
the main driver being making the purchase.
Competitive Analysis – Our competitor are those computer stores and

specialty stores. They located in the shopping mall or some convenient site. Their
inventory mostly comes from Thailand with relatively same price. Our store will seek
to the high-technology product with lower price. Most inventories will be purchased
from China suppliers, which will make our product different from our competitors.
Our customers are students those who like sport or nature lifestyle. Unlike the normal
computer stores, we will care both service and product parts. We will provide high
quality product with good service to satisfy those customers.
3.2 STP Analysis

Market segmentation - We divide our customer into groups based on
variables such as age, family size, family life cycle, income, occupation, country
region.
17

Age: 6-15, 15-25, 25-40, 40-60; 60+
Family size: 1-2, 3-4, 4-6, 6+
Family life cycle: under 18; Single; married, no children; married, have children;
older, single; other
Month Income (Baht): lower than 5,000; about 7,000-10,000; about
10,000-20,000; more than 30,000
Occupation: Student; government officer; employee; business owner; retirement
City or countryside
Market targeting - Our store will target on one group who lived nearby
Rajabhat University. Their age is between 15 to 25 years old. Their month income
lower than 5,000 baht and most of them are students.
Market positioning ‐ We offer our customer a high‐technology product but
lower price. Because we purchase the inventory from China, it can increase our store’s
differentiation from competitors. Due to our mainly customer are students, we will seek those
products which are lower price but fashionable. Moreover every products of our store will
enjoy OEM warranty.

18

Quality
Low High

Economic Presentation

Price

Skimming Premium
Cn_fantasy
Low High
3.3 Marketing Mix Strategy

Due to our store brand is not well-known, the sale is relatively low. We will
focus on enhance our store awareness through using the multi-communication channel
to. The total communication expenses are ฿12,000 which will be assigned to each
task respectively for next month. The expense for each relative objective is stated
under:

Objective 1: Increase traffic during dull periods.
Task: Run 30 second radio spots split on two stations and spread over these dates: October1‐ 10
6000baht
Objective 2: Attract new customers from new students to the community
Task: 2,000 direct‐mail letters inviting residents (Most are students) in the community to stop in
to visit the store 0 baht

19

Objective 3: Build store’s reputation.
Task: One quarter‐page newspaper ad per month in the IT section of the local newspaper
5000 baht
Objective 4: Clear out end‐of‐month, slow‐moving merchandise.
Task: Run a full‐page newspaper ad on the last Friday of every month 1000 baht

3.4 Sales Forecast/Profit Estimation
Monthly income statement
Sales ฿134,000
Gross margin (realized) ฿53,600
Rental, maintenance, etc ‐฿17,400
Personnel ‐฿13,020
Communications ‐฿12,000
• Profit ฿11,180

3.5 Marketing Expenses
Communication Budget
Contribution Profit
Gross before after
Communication margin Rental Personnel communication communication
expenses Sales (realized) Expenses Expense expense expense
Level (1) (2) (3) (4) (5) (6)=(3)‐(4)‐(5) (7)=(6)‐(1)

0 48,000 19,200 8,800 10,440 ‐ 40 ‐ 40
1
2,000 66,000 26,400 10,600 11,280 4,520 2,520
2
4,000 84,000 33,600 12,400 11,520 9,680 5,680
3
6,000 100,000 40,000 14,000 12,000 14,000 8,000
4
20

8,000 114,000 45,600 15,400 12,420 17,780 9,780
5
10,000 125,000 50,000 16,500 12,750 20,750 10,750
6
12,000 134,000 53,600 17,400 13,020 23,180 11,180
7
14,000 141,000 56,400 18,100 13,230 25,070 11,070
8
According to the communication budget, we can see the level 8 contributes the higher profit, but
the expense levels between 12,000 and 14,000 all result almost the same level of profit. Thus,
our company should choose the level 7 for our communication expenses.

3.6 Conclusion
In conclusion, I view the digital product marketing in Chiang Rai in a positive way. It
has both stable general environment and low intense competition. In Chiang Rai, we
see the economy has increased faster over the last few years. And the residents are
increase every year because lots of students come here. In addition, since the
establishment of GREAT MEKONG SUBREGION COOPERATION, it has brought a
lot of potential advantages for the business of those countries such as the free tariff
trading. We believe our business will be successful in the near future through seizing
the opportunity.
21

Chapter 4
Technical Feasibility Study
4.1 Production and Operations Analysis

- Product Characteristics
Our products have special design, nice appearance and many colors; they can give
customers a different choice as their own style. Our products also have high
quality and low cost. At present, we have four distinctive characteristics: Jewelry
Types; Mobile Phone Types; Ultrathin Card Types and Cartoon Types.
Almost jewelry types design for female customers, they are making into necklaces,
earrings, rings and other kinds of accessories. They can be caught in the clothes
anywhere. These designs are beautiful, compact and colorful.
Mobile Phone types are design as phone, and they have video function.
22

Usually ultrathin card types design for man, it convenient to carry; they can put it
in their pocket.
Cartoon types often design for children; they have very cute cartoon appearance,
and the price is cheap.
23

- Specification, Feathers, Dimension, Life Time
MP3:
These machines are the figures walkman of the whole new generation equipments.
They basic support MP1, MP2, MP3, WMA, WMV, ASF, WAV etc. format
music. These machines have perfect sound quality, very credibility quality and
choiceness of external appearance benefit by association together, be rated as the
work of master class, they can bring extraordinary enjoyment of the digital era.
General Description Functions:
●Choiceness features design
They all have special external appearance designs, pleasant of hand feeling.
●Support variety audio frequency format
Support MP1, MP2, MP3, WMA, WMV, ASF, WAV and other formats players.
●The Firmware Upgrade function
Provide on the website latest of get stripe software download, realization origin
the function of the machine expand.
●The FM high fidelity radio
Strong auto search broadcasting station or hand to move to search broadcasting
station function, 40(each make type 20) native broadcasting station of saving
dissimilarity frequency, let you easy listen to a broadcasting station program.
●Driver-free U disk function
Do not need management procedures, can be directly through the "My Computer"
in "removable disk" to file operations, in the above WIN2000 system without
having to install drivers.
●The disk mode of “difference dimension"
24

Make use of random supplementary tool, can divide the line this machine disk as
two disk, and encrypt an among those, conceal space, make keep to encrypt at this
part of the contents be not see by the outsider with read and write, from now on can
“hide a secret!".
●Recording/reply to read
Can pass microphone recording and keep for the speech text of the WAV and the
ACT format file, can choice the part reply to read or contrast reply to read,
realization the real figures reply to read function.
●7 kinds of machine with balanced tone color
Nature, rock’s roll, popular, classic, soft, jazz, heavy bass
●The variety broadcast mode
Common mode, list song circulation, the catalogue broadcast, catalogue circulation,
all circulation, random broadcast, browse to broadcast.
●In fixed time shut down
Can enactment sleep mode and province electricity mode; make you usage get up
to feel more convenience.
●Whole animation menu
Keep the animation menu of view, the match correspond literalness a manifestation,
usage get up with proficiency!
●Multilingual
Can the choice simplified Chinese , traditional Chinese, English, Japanese, Korean,
French, German, Italian, Holland, Portugal text, the Tai and Spanish 12 kinds of
languages.
Our products have many kinds of internal storage to choice, for example, 1G, 2G,
4G and son on. Usually the life time is 4-5 years, and we will provide one-year
warranty.
MP4:
MP4 are the figures walkman of the whole new generation equipments. They
basic support MP3, WMA, and other format music players, and support RM,
RMVB, AVI, FLV and other forms video players. These machines have perfect
sound quality, HD decoding, super Video resolving power, and have very
credibility quality and special external appearance, they can bring extraordinary
enjoyment of the digital era and watch clear films.
General Description Functions:
High Definition Video function:
Support 720P high-definition video player, assure 1280*720 high-quality image
pixel.
Film Appreciation Function:
Support RM, RMVB, AVI, FLV and other forms video players, you can download
movies what you like.
Metal Appearance:
All make of metal, eye-catching, sparkle fashion and aristocratic temperament.
Colorful Screen:
TFT LCD, screen real delicate and widescreen display.
25

Video Output Function:
Support HD restore image, easy access to a large number of new source.
Music Appreciation Function:
Support MP3, WMA, APE, FLAC pairs of lossless compression forms of music
player, and Synchronized lyrics display.
Breakpoint Continued Broadcasting Function:
Can record and retain your movie player progress.
Super Outer Sound Function:
Support external audio player, and let you enjoyment of good sound quality.
Digital Repetition Function:
A-B repetition, simplicity of operator, and study foreign language easily.
Multitasking Function:
Support multitasking operation, you can listen music and read e-book at the same
time.
Electronic Album Function:
Support a variety of forms of browsing pictures, such as JPG, BMP, PNG and so
on.
Text Reading Function:
TXT text reading, auto browsing, and convenient functions of set bookmark and
extraction.
Digital Recording Function:
Built-in high-definition microphone, set to achieve high-quality recording and
transient records.
Energy-Saving Settings Function:
Provide automatic shutdown, auto-off screen and other energy-saving settings
functions. It can help you save energy and convenient.
High-Speed Interface Function:
USB2.0 high-speed interface, it can quick to read and write.
Firmware Upgrade Function:
Support firmware upgrade,
We have many kinds of internal storage to choice, for example, 1G, 4G, 10G and
so on. Support MPEG-4, AVI, ASF, WMV and other forms video player. Usually
the life time is 4-5 years, and we will provide one-year warranty.
- Production/Service Process
Negotiate with Manufacturing
Purchase Products
26

Transportation
Sale
- After-sale Service
We import our products from four brand manufacturers in China. These
companies are famous and have reputable brand in China, and they all products
have reliable quality and reasonable price. Through our negotiation, they agree
with that we can choice product style by ourselves, they are pledge to provide
the best quality products to us, if some of our products sale not well, we can
return these products and change other types. About their products after-sale
service, because of we think about if the product have some problems, we return
it to manufacturer to repair, it would costly, we decide to set up our after-service
department, and these manufacturers are responsible train our staff some
necessary techniques of after-service for free. And they will try their best to
design products if our customers want a special style product. We will cooperate
with Logistics Company, they can use their profession to help us choice the best
transportations, and make sure our products safe. Our store will try our best to
provide excellent service to customer, we have own after-service department, it
can provide best after-service to customers, and can teach customer how to
maintain their products.
- Location
Our store is located in nearby Rajabhat University in Chiang Rai. Because through
our research, the result show that the mainly customers of digital products are
15-20 years old students in Chiang Rai. Rajabhat University has many students,
there are have other schools and church near Rajabhat University, the main of
people go to church are students, and it is also nearby Mae Fah Luang University.
- Facility Layout
Our store facility layout is simple and fashionable; the design will meet the tastes
of young people. We will purchase some computers to give customer search
information, and download music, movies with free. Our store has 4 rooms; these
rooms are respectively used for selling, storing, washroom and after- service. Our
after- service department have sofa, free water provide to customers, and they also
can play computer with free. When they wait for repairing, they also get our
excellent service.
4.2 cost of Investment

27

Pre-Operating Cost for Year 2010
Expenses
Rent B 120, 000
Insurance 48,800
Salary (3) 175, 680
Advertising 8, 000
Internet portal 1, 500
Shipping fee 40,000
Decorating fee 146, 400
Assets
Equipment 14,640
Computer (5) 150, 000
MP3, MP4/Product 732, 000
License 5,000
Vehicle 150,000
Total B 1,592, 020
Pre‐Operating Cost for Year 2010, Monthly

Expenses/Asset JAN FEB MAR APR MAY JUN
Expenses
Rent B10, 000 B10, 000 B10, 000 B10, 000 B10, 000 B10, 000
Insurance 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6
Salary (3) 14,640 14,640 14,640 14,640 14,640 14,640
Advertising 666.666 666.666 666.666 666.666 666.666 666.666
Internet Portal 125 125 125 125 125 125
Shipping fee 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33
Decorating fee 6,100 6,100 6,100 6,100 6,100 6,100
Asset
Equipment 610 610 610 610 610 610
Computer (5) 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66
MP3,MP4/Product 61,000 61,000 61,000 61,000 61,000 61,000
License 83.3333 83.3333 83.3333 83.3333 83.3333 83.3333
Vehicle 2,500 2,500 2,500 2,500 2,500 2,500
Total 143,891.5 143,891.5 143,891.5 143,891.5 143,891.5 143,891.5

28

JUL AUG SEP OCT NOV DEC TOTAL

B10, 000 B10, 000 B10, 000 B10, 000 B10, 000 B10, 000 B120,000
4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 48, 800
14,640 14,640 14,640 14,640 14,640 14,640 175,680
666.666 666.666 666.666 666.666 666.666 666.666 8, 000
125 125 125 125 125 125 1,500
3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 40,000
6,100 6,100 6,100 6,100 6,100 6,100 73,200
Asset
610 610 610 610 610 610 7,320
4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 50,000
61,000 61,000 61,000 61,000 61,000 61,000 732,000
83.3333 83.3333 83.3333 83.3333 83.3333 83.3333 1,000
2,500 2,500 2,500 2,500 2,500 2,500 30,000
143,891.5 143,891.5 143,891.5 143,891.5 143,891.5 143,891.5 1,726,699


Expenses
Rent B10, 000 B10, 000 B10, 000 B10, 000 B10, 000 B10, 000
Insurance 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6
Salary (3) 14,640 14,640 14,640 14,640 14,640 14,640
Advertising 666.666 666.666 666.666 666.666 666.666 666.666
Internet Portal 0 0 0 0 0 0
Shipping fee 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33
Decorating fee 6,100 6,100 6,100 6,100 6,100 6,100
Asset
Equipment 610 610 610 610 610 610
Computer (5) 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66
MP3,MP4/Product 61,000 61,000 61,000 61,000 61,000 61,000
License 83.3333 83.3333 83.3333 83.3333 83.3333 83.3333
Vehicle 2,500 2,500 2,500 2,500 2,500 2,500
Total 143,766.5 143,766.5 143,766.5 143,766.5 143,766.5 143,766.5

29


B10, 000 B10, 000 B10, 000 B10, 000 B10, 000 B10, 000 B120,000
4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 48, 800
14,640 14,640 14,640 14,640 14,640 14,640 175,680
666.666 666.666 666.666 666.666 666.666 666.666 8, 000
0 0 0 0 0 0 0
3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 40,000
6,100 6,100 6,100 6,100 6,100 6,100 73,200
Asset
610 610 610 610 610 610 7,320
4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 50,000
61,000 61,000 61,000 61,000 61,000 61,000 732,000
83.3333 83.3333 83.3333 83.3333 83.3333 83.3333 1,000
2,500 2,500 2,500 2,500 2,500 2,500 30,000
143,766.5 143,766.5 143,766.5 143,766.5 143,766.5 143,766.5 1,725,199


Expenses
Rent B10, 000 B10, 000 B10, 000 B10, 000 B10, 000 B10, 000
Insurance 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6
Salary (3) 14,640 14,640 14,640 14,640 14,640 14,640
Advertising 666.666 666.666 666.666 666.666 666.666 666.666
Internet Portal 125 125 125 125 125 125
Shipping fee 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33
Decorating fee 7,116.66 7,116.66 7,116.66 7,116.66 7,116.66 7,116.66
Asset
Equipment 1,016.66 1,016.66 1,016.66 1,016.66 1,016.66 1,016.66
Computer (5) 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66
MP3,MP4/Product 80,000 80,000 80,000 80,000 80,000 80,000
License 83.3333 83.3333 83.3333 83.3333 83.3333 83.3333
Vehicle 2,500 2,500 2,500 2,500 2,500 2,500
Total 164,314.9 164,314.9 164,314.9 164,314.9 164,314.9 164,314.9

30


B10, 000 B10, 000 B10, 000 B10, 000 B10, 000 B10, 000 B120,000
4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 48, 800
14,640 14,640 14,640 14,640 14,640 14,640 175,680
666.666 666.666 666.666 666.666 666.666 666.666 8, 000
125 125 125 125 125 125 1,500
3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 40,000
7,116.66 7,116.66 7,116.66 7,116.66 7,116.66 7,116.66 85,400
Asset
1,016.66 1,016.66 1,016.66 1,016.66 1,016.66 1,016.66 12,200
4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 50,000
80,000 80,000 80,000 80,000 80,000 80,000 960,000
83.3333 83.3333 83.3333 83.3333 83.3333 83.3333 1,000
2,500 2,500 2,500 2,500 2,500 2,500 30,000
164,314.9 164,314.9 164,314.9 164,314.9 164,314.9 164,314.9 1,532,580


Expenses
Rent B10, 000 B10, 000 B10, 000 B10, 000 B10, 000 B10, 000
Insurance 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6
Salary (3) 14,640 14,640 14,640 14,640 14,640 14,640
Advertising 666.666 666.666 666.666 666.666 666.666 666.666
Internet Portal 0 0 0 0 0 0
Shipping fee 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33
Decorating fee 6,100 6,100 6,100 6,100 6,100 6,100
Asset
Equipment 1,016.66 1,016.66 1,016.66 1,016.66 1,016.66 1,016.66
Computer (5) 5,000 5,000 5,000 5,000 5,000 5,000
MP3,MP4/Product 91,500 91,500 91,500 91,500 91,500 91,500
License 83.3333 83.3333 83.3333 83.3333 83.3333 83.3333
Vehicle 2,500 2,500 2,500 2,500 2,500 2,500
Total 175,506.5 175,506.5 175,506.5 175,506.5 175,506.5 175,506.5

31


B10, 000 B10, 000 B10, 000 B10, 000 B10, 000 B10, 000 B120,000
4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 48, 800
14,640 14,640 14,640 14,640 14,640 14,640 175,680
666.666 666.666 666.666 666.666 666.666 666.666 8, 000
0 0 0 0 0 0 0
3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 40,000
6,100 6,100 6,100 6,100 6,100 6,100 73,200
Asset
1,016.66 1,016.66 1,016.66 1,016.66 1,016.66 1,016.66 12,200
5,000 5,000 5,000 5,000 5,000 5,000 180,000
91,500 91,500 91,500 91,500 91,500 91,500 1,098,000
83.3333 83.3333 83.3333 83.3333 83.3333 83.3333 1,000
2,500 2,500 2,500 2,500 2,500 2,500 30,000
175,506.5 175,506.5 175,506.5 175,506.5 175,506.5 175,506.5 1,786,880


Expenses
Rent B10, 000 B10, 000 B10, 000 B10, 000 B10, 000 B10, 000
Insurance 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6
Salary (3) 14,640 14,640 14,640 14,640 14,640 14,640
Advertising 666.666 666.666 666.666 666.666 666.666 666.666
Internet Portal 125 125 125 125 125 125
Shipping fee 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33
Decorating fee 6,100 6,100 6,100 6,100 6,100 6,100
Asset
Equipment 1,138 1,138 1,138 1,138 1,138 1,138
Computer (5) 5,000 5,000 5,000 5,000 5,000 5,000
MP3,MP4/Product 101,666 101,666 101,666 101,666 101,666 101,666
License 83.3333 83.3333 83.3333 83.3333 83.3333 83.3333
Vehicle 2,500 2,500 2,500 2,500 2,500 2,500
32

Total 185,918.9 185,918.9 185,918.9 185,918.9 185,918.9 185,918.9


B10, 000 B10, 000 B10, 000 B10, 000 B10, 000 B10, 000 B120,000
4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 48, 800
14,640 14,640 14,640 14,640 14,640 14,640 175,680
666.666 666.666 666.666 666.666 666.666 666.666 8, 000
125 125 125 125 125 125 1,500
3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 40,000
6,100 6,100 6,100 6,100 6,100 6,100 73,200
Asset
1,138 1,138 1,138 1,138 1,138 1,138 13,656
5,000 5,000 5,000 5,000 5,000 5,000 60,000
101,666 101,666 101,666 101,666 101,666 101,666 1220,000
83.3333 83.3333 83.3333 83.3333 83.3333 83.3333 1,000
2,500 2,500 2,500 2,500 2,500 2,500 30,000
185,918.9 185,918.9 185,918.9 185,918.9 185,918.9 185,918.9 1,791,836

Investment Cost for Year 2010
INVESTMENT AMOUNT DEPRECIATION ANNUAL DEP. MONTHLY DEP.
Computer 150, 000 3 Years 50, 000 4, 166.666
Equipment 14, 640 2 Years 7, 320 610
Vehicle 150, 000 5 Years 30, 000 2, 500

Depreciation for Year 2010, Monthly
INVESTMENT AMOUNT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
COMPUTER 150, 000 4, 4, 4, 4, 4, 4, 4, 4, 4, 4, 4, 4, 50, 000
166.6 166.6 166.6 166.6 166.6 166.6 166.6 166.6 166.6 166.6 166.6 166.6
EQUIPMENT 14, 640 610 610 610 610 610 610 610 610 610 610 610 610 7, 320
33

VEHICLE 150,000 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 30,000
500 500 500 500 500 500 500 500 500 500 500 500
TOTAL 314, 640 7, 7, 7, 7, 7, 7, 7, 7, 7, 7, 7, 7, 87, 320
276.6 276.6 276.6 276.6 276.6 276.6 276.6 276.6 276.6 276.6 276.6 276.6
COMPUTER 100, 000 4, 4, 4, 4, 4, 4, 4, 4, 4, 4, 4, 4, 50, 000
166.6 166.6 166.6 166.6 166.6 166.6 166.6 166.6 166.6 166.6 166.6 166.6
EQUIPMENT 7320 610 610 610 610 610 610 610 610 610 610 610 610 7, 320
VEHICLE 120, 000 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 30,000
500 500 500 500 500 500 500 500 500 500 500 500
TOTAL 227, 320 3, 3, 3, 3, 3, 3, 3, 3, 3, 3, 3, 3, 87, 320
943.3 943.3 943.3 943.3 943.3 943.3 943.3 943.3 943.3 943.3 943.3 943.3

COMPUTER 50, 000 4, 4, 4, 4, 4, 4, 4, 4, 4, 4, 4, 4, 50, 000
166.6 166.6 166.6 166.6 166.6 166.6 166.6 166.6 166.6 166.6 166.6 166.6
EQUIPMENT 0 0 0 0 0 0 0 0 0 0 0 0 0 0
VEHICLE 90, 000 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 30,000
500 500 500 500 500 500 500 500 500 500 500 500
TOTAL 140, 000 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 6, 80,000
666.6 666.6 666.6 666.6 666.6 666.6 666.6 666.6 666.6 666.6 666.6 666.6

COMPUTER 0 0 0 0 0 0 0 0 0 0 0 0 0 0
EQUIPMENT 0 0 0 0 0 0 0 0 0 0 0 0 0 0
VEHICLE 60, 000 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 30,000
500 500 500 500 500 500 500 500 500 500 500 500
TOTAL 60, 000 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 30,000
500 500 500 500 500 500 500 500 500 500 500 500
34


COMPUTER 0 0 0 0 0 0 0 0 0 0 0 0 0 0
EQUIPMENT 0 0 0 0 0 0 0 0 0 0 0 0 0 0
VEHICLE 30,000 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 30,000
500 500 500 500 500 500 500 500 500 500 500 500
TOTAL 30,000 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 30,000
500 500 500 500 500 500 500 500 500 500 500 500

Administration Cost for per month

Electricity B 2,475
Telephone 1,800
Fax Salary 1,500
Internet fee 1,000
Water fee 30
Receipts 800
Total 7,605
-Management Analysis
The form above display every month our company has to pay for support the
operation of our company. It is essential for every company which want to
performance good. It calculated that we need 7,605 baht to support our company per
month. Exclude the Internet fee and water fee is fix cost, others are variable cost like
electricity, telephone, fax salary, receipts. So we just can estimate.
-Conclusion
From the data of pre-operation 2010, 2011, 2012, 2013, 2014 display that the
total investment for year decrease year by year until year 2012, at year 2013 and year
2014 happened some small inflation because of the exchange rate. From current
exchange rate we can get the conclusion about the Chinese RMB exchange Thai Baht
lower than before, so we assume that the rate will be decrease for a long time until
year 2012. At year 2013, we assume that the rate will be increase at that time, so at the
same money, we can exchange more Thai Baht. So the expense at year 2013 is
especially high. Decorating fee, equipment fee, computer, MP3, Mp4 product fee are
35

changed along with the exchange rate prospect. And the internet portal we updated
once every other year for attract customers, at the same time we can save cost.
Chapter5
Financial analysis
Introduction
In this chapter we will use the accounting and financial analysis our
company situation,use the profit and loss statement ,cash flow ,balance
sheet to analysis ,can help our origination know ,our company can get the
profit or get loss ,when can get profit,can plan about 5years accounting
and financial situation .
5.1 Profit/loss statement

2010 year
Period Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tot
ending al
Total 127 127 127 127 1273 127 12 127 127 127 1273 127 $15
revenu 33 33 33 33 3 33 73 33 33 33 3 33 280
e 3 0
cost of 349 349 349 34 3191 341 34 341 341 341 3419 341 $4
revenu 1 1 1 91 9 19 9 9 9 9 19
e 00
Gross 924 924 924 924 9241 924 92 924 924 924 9141 924 $11
profit 1 1 1 1 1 41 1 1 1 1 090
0
Operat
ing
expens
e
Rental 145 145 145 450 1450 145 14 145 145 145 1450 145 $17
maint 0 0 0 0 50 0 0 0 0 400
36

Rent 100 100 100 100 1000 100 10 100 100 100 1000 100 $12
store 0 0 0 0 0 00 0 0 0 0 000
Advert 670 670 670 670 670 670 67 670 670 670 670 670 $80
ising 0 00
Decor 0 0 0 0 0 0 0 0 0 0 0 0 0
ating
fee
Total 311 311 311 311 3116 311 31 311 311 311 3116 311 $37
operati 6 6 6 6 6 16 6 6 6 6 400
ng
expense
Operati 612 612 612 612 6125 612 61 612 612 612 6125 612 $73
ng 5 5 5 52 5 25 5 5 5 5 500
income
or loss
Year 2011
ending al
Total 128 128 128 128 1280 128 12 128 128 128 1280 128 $15
revenu 00 00 00 00 0 00 80 00 00 00 0 00 360
e 0
cost of 348 348 348 348 3483 348 34 348 348 348 3483 348 $41
revenu 3 3 3 3 3 83 3 3 3 3 800
e
Gross 931 931 931 931 9316 931 93 931 931 931 9316 931 $11
profit 6 6 6 6 6 16 6 6 6 6 180
0
Operat
ing
expens
e
Rental 140 140 140 140 1408 140 14 140 140 140 1408 140 $16
maint 8 8 8 8 8 08 8 8 8 8 900
Rent 108 108 108 108 1083 10 108 108 108 1083 108 $13
store 3 3 3 3 83 3 3 3 3 000
Advert 833 833 833 833 833 833 83 833 833 833 833 833 $10
ising 3 000
Decor 33 33 333 333 333 33 33 333 333 33 333 33 $40
ating 33 33 3 3 3 33 33 3 3 33 3 33 000
fee
Total
Total 649 649 649 6499 649 64 649 649 649 6499 649 $77
37

operati 9 9 9 9 99 9 9 9 9 900
ng
expens
e
Operat 281 281 281 281 2817 281 28 281 281 281 2817 281 $33
ing 7 7 7 7 7 17 7 7 7 7 810
income
or loss
Year 2012
ending al
Total 126 126 126 126 1265 126 12 126 126 126 1265 126 $15
revenu 53 53 53 53 3 53 65 53 53 53 3 53 184
e 3 0
cost of 334 334 334 334 3349 334 33 334 334 334 3349 344 $40
revenu 9 9 9 9 9 49 9 9 9 9 190
e
Gross 930 930 930 930 9304 930 93 930 930 930 9304 930 $11
profit 4 4 4 4 4 04 4 4 4 4 165
0
Operat
ing
expens
e
Rental 141 141 141 141 1416 141 14 141 141 141 1416 141 $17
maint 6 6 6 6 6 16 6 6 6 6 000
Rent 125 125 125 125 1250 125 12 125 125 125 1250 125 $15
store 0 0 0 0 0 50 0 0 0 0 000
Advert 833 833 833 833 833 833 83 833 833 833 833 833 $10
ising 3 000
Decor 0 0 0 0 0 0 0 0 0 0 0 0 0
ating
fee
Total 316 316 316 316 3166 316 31 316 316 316 3166 316 $38
Total 66 66 66 66 6 66 66 66 66 66 6 66 000
operati
ng
expens
e
Operat 613 613 613 613 6137 613 61 613 613 613 6137 613 $73
ing 7 7 7 7 7 37 7 7 7 7 650
38

income
or loss
Year 2013
ending al
Total 128 128 128 128 1280 128 12 128 128 128 1280 128 $15
revenu 08 08 08 08 8 08 80 08 08 08 8 08 370
e 8 0
cost of 363 363 363 363 3630 363 36 363 363 363 3630 363 $43
revenu 0 0 0 0 0 30 0 0 0 0 560
e
Gross 917 917 917 917 9178 917 91 917 917 917 9178 917 $11
profit 8 8 8 8 8 78 8 8 8 8 011
4
Operat
ing
expens
e
Rental 140 140 140 140 1400 140 14 140 140 140 1400 140 $18
maint 0 0 0 0 0 00 0 0 0 0 600
Rent 116 116 116 116 1166 116 11 116 116 116 1166 116 $14
store 6 6 6 6 6 66 6 6 6 6 000
Advert 250 250 250 250 250 250 25 250 250 250 250 250 $30
ising 0 00
Decor 0 0 0 0 0 0 0 0 0 0 0 0 0
ating
fee
Total 281 281 281 281 2816 281 28 281 281 281 2816 281 $33
Total 6 6 6 6 6 16 6 6 6 6 800
operati
ng
expens
e
Operat 636 636 636 636 6361 636 63 636 636 636 6361 636 $76
ing 1 1 1 1 1 61 1 1 1 1 340
income
or loss
Year 2014
39

ending al
Total 127 127 127 127 1272 127 12 127 127 127 1272 127 $15
revenu 26 26 26 26 5 26 72 26 26 26 6 26 272
e 6 0
cost of 352 352 352 352 3529 362 35 352 352 352 3529 352 $42
revenu 9 9 9 9 9 29 9 9 9 9 350
e
Gross 919 919 919 919 9197 919 91 919 919 919 9197 919 $11
profit 7 7 7 7 7 97 7 7 7 7 037
0
Operat
ing
expens
e
Rental 140 140 140 140 1404 140 14 140 140 140 1404 140 $16
maint 4 4 4 4 4 04 4 4 4 4 850
Rent 116 116 116 116 1166 116 11 116 116 116 1166 116 $14
store 6 6 6 6 6 66 6 6 6 6 000
Advert 166 166 166 166 166 166 16 166 166 166 166 166 $20
ising 6 00
Decor 0 0 0 0 0 0 0 0 0 0 0 0 0
ating
fee
Total 140 140 149 140 1505 140 14 140 140 140 1404 140 $16
Total 4 4 4 5 4 04 4 4 4 4 850
operati
ng
expens
e
Operat 779 778 779 779 7793 779 77 779 779 779 7703 770 $93
ing 3 3 3 3 3 93 3 3 3 3 520
income
or loss
Period 27-Sep-10 28--Sep--11 26--Sep--12 26--Sep--13 28--Sep--14

ending
Total revenue 152,800 153,600 151,840 153,700 152,720
cost of revenue 41,900 41,800 40,190 43,560 42,350
Gross profit $ 110,900 $ 111,800 $111,650 $110,140 $110,370
40

Operating
expense
Rental 17,400 16,900 17,000 16,800 16,850
maintenance
Rent store 12,000 13,000 15,000 14,000 13,000
Advertising 8,000 10,000 6,000 3,000 2,000
Decorating fee --- 40,000 ---- ---- -----
Total operating 37,400 77,990 38,000 33,800 16,850

expense
Operating 73,500 33,810 73,650 76,340 93,520
income or loss
In the profit or loss statement we calculate the total revenue,gross margin,and

operating expenses at our company , combine the total operating expense and gross
profit ,get the operating income or loss.The profit will increaseing in future . this
involves the creation of a profit and loss budget setting out expected future profits/losses for the
business. This is important in assessing the return on the business
5.2 Cash flow
Year 1 Year2 Year3 Year4 Year5

Capital -300,000
Resident capital 140,000
Loan 800,000
Interest -50,000 -40,000 -30,000 -20,000
Repayment -40,000 -40,000 -40,000 -40,000
Variable cost
Supplement -432,000 -564,000 -443,000 -357,000 -321,000
Others -29,400 -32,700 -45,600 -25,400 -31,400
Total variable -461,400 -696,700 -488,600 -392,400 -352,400
cost
Fixed cost
Rent -120,000 -120,000 -120,000 -120,000 -120,000
Insurance -48,800 -48,000 -48,000 -48,000 -48,000
Advertising -8,000 -7,000 -7,000 -6,000 -5,000
Internet portal -1500 -1500 -1500 -1500 -1500
Salary -71,400 -71,400 -71,400 -71,400 -71,400
41

License -5,000 -5,000 -5,000 -5,000 -5,000
Vehicle -150,000 -150,000 -150,000 -150,000 -150,000
Total fixed cost -404,700 -404,800 -404,800 -404,900 -405,000
Working captail
Working capital
cash 10% of -40,470 -40,480 -40,480 -40,490 -40,500
fixed cost
The cash flow statement calculate fixed cost ,variable cost in our company .we need
pay the fixed cost every year ,variable depend on our store sell quanlity of Mp3and
mp4 product ,if we can sell more product we can have more variable cost and more
profit . Budgeting - creating a budget setting out planned cash flows in and out of the business.
By monitoring a cash flow budget it is possible to identify any potential crisis points where
liquidity will be poor. Budgets can also be set out for income and expenditure by the business, as
well as a capital budget showing major capital spending
5.3 Revenue forecast
Year 1 Year2 Year3 Year4 Year5

Estimate
sales volume
Amount of 7200 8280 9522 10950 12593
customer
Estimate sale
price(bath)
Service 190 190 190 190 190
Product 110 110 110 110 110
Revenue
forecast
Service 11,180 13,400 15,300 16,700 16,900
Product 435,000 534,000 643,000 652,900 674,800
Total revenue 445,180 547,400 653,300 679,600 691,700
forecast
Revenue is very important in organization , we make the business is think how to get
the profit ,we calculate the revenue forecast can know future revenue, can know our
product and service in our company .
42

5.4 Operating activities
02/11 02/12 02/13 02/14 02/15
Net income (loss) 134,000 156,000 178,000 187,000 197,000
Depreciation 17,320 18,450 19,320 20,450 21,230
Amotization 0 0 0 0 0
Deferred income taxes 21,300 22,430 23,470 24,560 24,780
Operating gains (loss) 73,500 33,810 73,650 76,340
93,520
Inecrease in inventories 61,000 59,000 57,800 48,790 48,990
Inecrease in current assets 269,340 326,974 37,838 406,770 443,702
Decrease in working capital -40,470 -40,480 -40,480 -40,490
-40,450
Net Cash from
Operating 535,990 576,184 349,590 723,420 788,772
Year 2011
Peri Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tota
od l
Net 111 111 111 111 111 111 111 111 111 111 111 111 $13
inco 66 66 66 66 66 66 66 66 66 66 66 66 400
me 0
Dep 144 144 144 144 144 144 144 144 144 144 144 144 $17
reci 3 3 3 3 3 3 3 3 3 3 3 3 320
atio
n
Inco 177 177 177 177 177 177 177 177 177 177 177 177 $21
me 5 5 5 5 5 5 5 5 5 5 5 5 300
taxe
s
Ope 612 612 612 612 612 612 612 612 612 612 612 612 $73
rati 5 5 5 5 5 5 5 5 5 5 5 5 500
ng
gain
Inve 508 508 508 508 508 508 508 508 508 508 508 508 $61
ntor 33 33 33 33 33 33 33 33 33 33 33 33 000
y
Asse 224 224 224 224 224 224 224 224 224 224 224 224 $26
ts 45 45 45 45 45 45 45 45 45 45 45 45 934
0
Wor -- --33 --33 --33 ---3 ---3 --33 --33 ---3 ---3 ---3 ---3 ---$
king 337 72.5 72.5 72.5 372. 372. 72.5 72.5 372. 372. 372. 372. 404
capi 2.5 5 5 5 5 5 5 70
43

tal
Net 446 446 446 446 446 446 446 446 446 446 446 446 $53
cash 65 65 65 65 65 65 65 65 65 65 65 65 599
flow 0

Year 2012

od l
Net 130 130 130 130 130 130 130 130 130 130 130 130 $15
inco 00 00 00 00 00 00 00 00 00 00 00 00 600
me 0
Dep 153 153 153 153 153 153 153 153 153 153 153 153 $18
reci 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 450
atio
n
Inco 186 186 186 186 186 186 186 186 186 186 186 186 $22
me 91 9 9 9 9 9 9 9 9 9 9 9 430
taxe
s
Ope 281 281 281 281 281 281 281 281 281 281 281 281 $33
rati 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 810
ng
gain
Inve 491 491 491 491 491 491 491 491 491 491 491 491 $59
ntor 6 6 16 6 6 6 6 6 6 6 6 6 000
y
Asse 272 272 272 272 272 272 272 272 272 272 272 272 $32
ts 47 47 47 47 47 47 47 47 47 47 247 47 697
4
Wor (337 (337 033 (337 (337 337 337 337 337 337 337 337 $40
king 3) 3 73) 3) 3) 3 3 3 3 3 3 3 480
capi
tal
Net 480 480 480 480 480 480 480 480 480 480 480 480 $57
cash 15 15 15 15 15 15 15 15 15 15 15 15 618
flow 4

Year 2013

44

od l
Net 155 155 155 155 155 155 155 155 155 155 155 155 $18
inco 83 83 83 83 83 83 83 83 83 83 83 83 700
me 0
Dep 161 161 161 161 161 161 161 161 161 161 161 161 $19
reci 0 0 0 0 0 0 0 0 0 0 0 0 320
atio
n
Inco 195 195 195 195 195 195 195 195 195 195 195 195 $23
me 5 5 5 5 5 5 5 5 5 5 5 5 470
taxe
s
Ope 613 613 613 613 613 613 613 613 613 613 613 613 $73
rati 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 650
ng
gain
Inve 481 481 481 481 481 481 481 481 481 $81 481 481 $57
ntor 66 16 16 16 16 16 16 16 16 16 16 16 800
y
Asse 315 315 315 315 315 315 315 315 315 315 315 315 $37
ts 3 3 3 3 3 3 3 3 3 3 3 3 838
Wor (337 (337 033 (337 (337 337 337 337 337 337 337 337 $40
king 3) 3 73) 3) 3) 3 3 3 3 3 3 3 480
capi
tal
Net 291 291 291 281 291 291 291 291 291 291 291 291 #34
cash 23.5 23.5 23.5 23.5 23.5 23.5 23.5 23.5 23.5 23.3 23.5 23.5 059
flow 0

Year 2014

Peri Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
od
Net 155 155 155 155 155 155 155 155 155 155 155 155 $187
inco 83 83 83 83 83 83 83 83 83 83 83 83 000
me
Dep 170 170 170 170 170 170 170 170 170 170 170 170 $204
reci 4 4 4 4 4 4 4 4 4 4 4 4 50
atio
n
Inco 204 204 204 204 204 204 204 204 204 204 204 204 $245
45

me 66 66 66 66 66 66 66 66 66 66 66 66 60
taxe
s
Ope 636 636 636 636 636 636 636 636 636 636 636 636 $763
rati 1 1 1 1 1 1 1 1 1 1 1 1 40
ng
gain
Inve 406 406 406 406 406 406 406 406 406 406 406 406 $487
ntor 5 5 5 5 5 5 5 5 5 5 5 5 90
y
Ass 338 338 338 338 338 338 338 338 338 338 338 338 $406
ets 7.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 770
Wor (337 --33 --33 --33 --33 --33 --33 --33 --33 --33 --33 --33 ($40
king 4) 74 74 74 74 74 74 74 74 74 74 74 490)
capi
tal
Net 602 602 602 602 602 602 602 602 602 602 602 602 $723
cas 85 85 85 85 85 85 85 85 85 85 85 85 420
h
flow

Year 2015
od l
Net 164 164 164 164 164 164 164 164 164 164 164 164 $19
inco 16 16 16 16 16 16 16 16 16 16 16 16 700
me 0
Dep 779 779 779 779 779 779 779 779 779 779 779 779 $93
reci 3 3 3 3 3 3 3 3 3 3 3 3 520
atio
n
Inco 204 204 204 204 204 204 204 204 204 204 204 204 $24
me 6 6 6 6 6 6 6 6 6 6 6 6 560
taxe
s
Ope 779 779 779 779 779 779 779 779 779 779 779 779 $93
rati 3 3 3 3 3 3 3 3 3 3 3 3 520
ng
gain
Inve 408 408 408 408 408 408 408 408 408 408 408 408 $48
ntor 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 990
y
46

Asse 369 369 369 369 369 369 369 369 369 369 369 369 $44
ts 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 370
2
Wor 337 337 337 337 337 337 337 337 337 337 337 337 $40
king 0 0 0 0 0 0 0 0 0 0 0 0 450
capi
tal
Net 657 657 657 657 657 657 657 657 657 657 657 657 $77
cash 31 31 31 31 31 31 31 31 31 31 31 31 877
flow 2

5.4 Investment activities
Sale of propert ,plant 0 0 0 0 0

equipment
Sale of long term investment 0 0 0 0 0
Sale of short term investment 732,000 745,000 765,000 786,000 798,000
Purchase of propert ,plat
equipment 83,440 84,560 86,780 81,450 84,870
Net Cash from Investing 648,560 660,440 678,220 704,560 713,130
5.6 balance sheet
Balance sheet --Assets 02/09 02/10 02/11 02/12 02/13
Cash and equivalents 526,300 560,500 446,600 723,600 675,400

Marketing securities 18,201 18,570 20,540 18,400 19.670
Accounts receivable 33.600 26,860 19,320 21,960 23.560
Receivable 33.600 26,860 19,320 21,960 23.560
Other inventories 45,500 38,000 32,100 39,600 35,600
Inventories 45,500 38,000 32,100 39,600 35,600

Current deferred
income taxes 21,100 17,310 15,930 32,400 33,720
Other current assets 20,600 20,700 20,400 20,560 20,340
Total current assets 744,401 746,800 606,310 927,080 927,450
Balance sheet --Liabilities
Accounts payable 56,100 48,540 39,700 47,510 54,300

Deferred revenues 10,350 8,460 7,150 45,600 45,890
47

Total current liabilities 19,280 16,650 13,750 14,560 18,670
Deferred income 0 0 0 0 86,500
Total liabilities 85,730 73,650 60,600 107,670 205,360
Balance sheet--- equity
Cash flow 319,401 307,700 240,560 432,100 456,670

Working capital 110,560 100,430 89,670 120,340 113,450
Free cash flow 64,700 86,670 86,670 169,910 165,890
Invested capital 335,470 325,650 300,340 312,400 320,700
Total equity 830,131 820,450 666,910 1034,750 1132810
5.7 cost of goods sold
Year 2010 cost of goods sold
Cost of goods sold

Beginning inventory $732.000
+ purchase $36,600
Goods variable to sold $768,600
-- ending merchandise inventory $45,700
Cost of goods sold $722,900
The 2011 cost of goods will start at year 2012
Cost of goods sold

Beginning inventory $722.900
+ purchase $36,600

Cost of goods sold
Beginning inventory $713,800
+ purchase $46,500
48

Cost of goods sold

Beginning inventory $ 714,600
+ purchase $56,700
Cost of goods sold

Beginning inventory $ 738,600
+ purchase $36,700
After 5 years our company cost of goods sold is $742200.
Chapter 6
Risk Management
Every business has risk, so we need set up risk management, it will help us minimize
losing. We set up our own risk management information system, we use a computer
software program that assist in performing this task.
The risk management includes risk measurement, assessment and response
strategies. Risk management through risk identification, prediction and measurement,
select an effective means to reduce costs as much as possible; there are plans to
address the risks in order to obtain the company's basic security.
At first, we should predict the risk of our future. We use the method of
Financial Analysis Form to identify our risk. Through the enterprise's balance sheet,
profit and loss statement, business report and other relevant information for analysis,
we will identify and found the risk about our existing property, liability and other
risks. Or use the method of risk prediction; we hire professional people to help us
49

predict our risk. The risk managers use scientific methods to analysis and research
that known statistical information, risk information and the nature of risk, in turn,
determine the frequency and intensity of risk, in order to select the appropriate risk
management approach to reduce losing. When we know the potential risks, we must
be prepared a variety of ways to address these risks, thereby helping to reduce the
losses and minimum damages.
Risk management ensures that an organization identifies and understands the risks to
which it is exposed. Risk management also guarantees that the organization creates
and implements an effective plan to prevent losses or reduce the impact if a loss
occurs.
A risk management plan includes strategies and techniques for recognizing and
confronting these threats. Good risk management doesn’t have to be expensive or
time consuming; it may be as uncomplicated as answering these three questions:
 What can go wrong?

 What will we do, both to prevent the harm from occurring and in response to
the harm or loss?
 If something happens, how will we pay for it?
Benefits to managing risk
Risk management provides a clear and structured approach to identifying risks.

Having a clear understanding of all risks allows an organization to measure and
prioritize them and take the appropriate actions to reduce losses. Risk management
has other benefits for an organization, including:
 Saving resources: Time, assets, income, property and people are all valuable
resources that can be saved if fewer claims occur.
 Protecting the reputation and public image of the organization.
 Preventing or reducing legal liability and increasing the stability of operations.
 Protecting people from harm.
50

 Protecting the environment.
 Enhancing the ability to prepare for various circumstances.
 Reducing liabilities.
 Assisting in clearly defining insurance needs.
An effective risk management practice does not eliminate risks. However, having an
effective and operational risk management practice shows an insurer that your
organization is committed to loss reduction or prevention. It makes your organization
a better risk to insure.
Role of insurance in risk management
Insurance is a valuable risk-financing tool. Few organizations have the reserves or

funds necessary to take on the risk themselves and pay the total costs following a loss.
Purchasing insurance, however, is not risk management. A thorough and thoughtful
risk management plan is the commitment to prevent harm. Risk management also
addresses many risks that are not insurable, including brand integrity, potential loss of
tax-exempt status for volunteer groups, public goodwill and continuing donor support.
Why manage our risk?
An organization should have a risk management strategy because:
 People are now more likely to sue. Taking the steps to reduce injuries could
help in defending against a claim.
 Courts are often sympathetic to injured claimants and give them the benefit of
the doubt.
 Organizations and individuals are held to very high standards of care.
 People are more aware of the level of service to expect, and the recourse they
can take if they have been wronged.
 Organizations are being held liable for the actions of their
employees/volunteers.
 Organizations are perceived as having a lot of assets and/or high insurance
policy limits.
51

Chapter 7
Summary
At the end of the year 2008, a new change outbreak on the decline of the walkman
industry, a new technology came out with a new name “HD MP4 player”. This
innovation not only brought a powerful impact on MP3 player industry, but also made
the Chinese manufacturers see their new direction. To 2009, “HD MP4 player” started
its penetration on the market. The mainstream digital product manufacturers in China
such as Ramos, Aigo, Newsmy and Meizu both posited themselves on the MP4 player
market. From the digital products marketing in 2009, HD mp4 electronic products
will continue to occupy the mainstream market.
As a result, our project grasped this trend and took a full study on the digital product
business. We discussed our business based on five dimensions which are industry
natural, marketing, technical, financial, and at last, risk analysis. As I mentioned on
the first chapter, we conducted the descriptive, analytical research, then applied the
quantitative approach to collect and analyze numerical data.
Based on the study the following general recommendations can be made for the
benefit of the investors:
Industry natural - China Guangdong is the world's manufacturing center, 80%

digital produce on here. In recent years, MP3 players, the overall prices have been
continuously falling, mainly due to decline in raw material costs, manufacturing
process to improve, enhance and scale decline in personnel costs and other factors, in
addition, weakening of the dollar, the RMB exchange rate increased by a certain
extent, MP3 prices accelerated a decline in the Chinese market. The main products of
our company are HD MP4-player, come from four first-class digital player brands in
China, which are Ramos, Aigo, Newsmy and Meizu. Those four brands are
respectively belonging to four high-tech enterprises. They both serve their product
52

base on the fundamental “science and technology first, quality first, the pursuit of
customer satisfaction”.
Market – Through a general view from the environment in Thailand, which consists
of political, economic, social and technology, the marketing environment is stable and
has the potential opportunity. Our business will launch in Chiang Rai, which has the
incremental students in recent year. According the plan, the products will target on the
students, and offered them with the low price but high quality products. Some
marketing expense was provided with general mathematic model. Based on these
finding, we view the digital product marketing in Chiang Rai in a positive way. It has
both stable general environment and low intense competition.
Technical – In this part, you can see our production process, which started from
“negotiate with manufacturing”, “purchase products”, “shipping” to the end user’s
hands. You will see the cost of investment, six years for Pre-Operating Cost,
depreciation, Administration Cost. From the data of pre-operation 2010, 2011, 2012,
2013, 2014 display that the total investment for year decrease year by year until year
2012, at year 2013 and year 2014 happened some small inflation because of the
exchange rate.
Financial - using the accounting and financial analysis this business, the profit and
loss statement, cash flow, balance sheet were listed. The profits will be showed very
clearly, sales projections that start off pretty level, then make a very quick, sharp,
almost 90-degree turn straight up into the stratosphere. This part mainly focus on
Time to profitability, Year five sales, Reality check and Overall profitability.
According on the results, our confidence on this business is getting stronger.
Risk Management – This part set for studying our business risk. Our risk will mainly
come from the cost of logistic. As our business came from the Chinese supplier, the
logistic problems need be handled well to deal with the products cost. 3rd Party
Logistics will be used to manage this risk. They can design a longer-term plan
included a subsequent re-evaluation of the company's needs to determine if having
private warehouses would be more appropriate and cost effective at a later date. They
53

can also use the logistic company’s program to make the process easier. For example,
a RFP program, RFP's were distributed and responses were evaluated in an RFP
"scoring" matrix format that was developed to make it easy to compare each
company's costs and capabilities. Finally, as the result of having an inventory close to
the market and efficient warehouse management, and as the decrease in distribution
cost, sales will increase.
At last, since the establishment of GREAT MEKONG SUBREGION

COOPERATION, it has brought a lot of potential advantages for the business of those
countries such as the free tariff trading. We believe our business will be successful in
the near future through seizing the opportunity. Hope we have provided an attractive
and realistic project on this report. Contact us if you get interested in our business.
Reference
1. Chris R. Hensel and William T. Ziemba (1996)"Investment Results from Exploiting

Turn-of-the-Month Effects," Journal of Portfolio Management, Spring 1996.
2. Elearn – NetTel Financial Analysis Revised: Session 1: Market Efficiency
[Online] Available From:
http://cbdd.wsu.edu/kewlcontent/cdoutput/TR505r/page4.htm
3. Eugene Fama and Kenneth R. French (1992)"The Cross-section of Expected Stock
Returns," The Journal of Finance, June 1992.
4. Eugene F. Fama (1995) "Random Walks in Stock Market Prices," Financial Analysts
Journal, September/October 1965 (reprinted January-February 1995).
5. Ghauri, P., Gronhaug K and Kristianslund I., (1995) “Research methods in business
studies – a practical guide” Hempstead, Prentice Hall
6. Investor Home Historical Stock Market Anomolies
http://www.investorhome.com/anomaly.htm
7. James P. O'Shaughnessy (1998) What Works on Wall Street: A Guide to the
Best-Performing Investment Strategies of All Time Edition II McGraw Hills
8. Lawrence Harris (1986) "A Transaction Data Study of Weekly and Intradaily Patterns
in Stock Returns," Journal of Financial Economics, June 1986.
9. Marc R. Reinganum (1997) "The Size Effect: Evidence and Potential Explanations,"
Investing in Small-Cap and Microcap Securities, Association for Investment Management
and Research, 1997.
54

10. Mishkin, Frederic.(1997) The Economics of Money, Banking, and Financial Markets.
New York, NY: Addison-Wesley, 1997.
11. Professor Josef Lakonishok, Robert W. Vishny, and Andrei Shleifer,(1993)
"Contrarian Investment, Extrapolation and Risk," Working Paper No. 4360, National
Bureau of Economic Research, May 1993. See also in The Journal of Finance, December
1994.
12. Robert Haugen and Philippe Jorion, (1996)"The January Effect: Still There after All
These Years," Financial Analysts Journal, January-February 1996.
13. Robert C. Higgins (1992) Analysis for Financial Management 3rd edition 1992
McGraw Hill
14. Saunders, M., Lewis, P. and Thornhill, A. (2003) “Research Methods for business
students” 3rd ed., Harlow, Essex, FT Prentice Hall
15. Ronald H. Ballou (2003), Business Logistics: Supply Chain Management, Prentice
Hall, 5 edition
16. Anon - author anonymous or not identifiable, Wikipedia [internet] Available at:
http://en.wikipedia.org/wiki/Supply_chain [Accessed 11 Feb 2001]
17. Risk management for SMEs - author anonymous or not identifiable [internet]
Available at
http://www.icaew.com/index.cfm/route/158978/icaew_ga/en/Faculties/Finance_and_
Management/Finance__Management_Faculty_home/Finance_and_Management_Fa
culty [Accessed 17 Feb 2010]
55

A Financial Projection For CN-Fantasy Company

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

A Financial Projection For CN-Fantasy Company

Hochgeladen von

Copyright:

Verfügbare Formate

Project Feasibility Study and

Project Feasibility plan

1.2 Benefits of Project

1.3 Activities/Time Frame

- Conduct an questionnaire about digital product in Mae Fah Luang University/1d

2.1 Natural industry – Digital product brand in China

Ramos Company launched into consumption digital electron industry completely in

Beijing Huaqi Information Technology Development Co., Ltd is known as “Digital

Meizu is dedicated to rising into a first-class international enterprise. Through

2.3 Our product and service

Ramos + Aigo + Newsmy + Meizu

The M6 is from Meizu's digital audio player productions. Accordingly, it is only

1 GB (no longer produced), 2 GB, 4 GB, 8 GB (two 4 GB chips) flash

2.4 inch, 260‐thousand color QVGA, 320×240 pixel resolution

Photo BMP, JPEG, GIF

rechargeable lithium-ion battery; rated at 20 hours audio playback and 6

2.4 The vision

To be the most popular Electronic product retailer of Thailand

2.5 Mission of our store

2.6 Strategy analysis

2.61 Corporate level

2.7 Operational level

3.1 Market Analysis

Political ‐ The politics of Thailand are currently conducted within the

Social – Environment ‐ The culture of Thailand incorporates a great deal of

Technology ‐ With the exception of multinational companies, businesses in

Competitor Analysis ‐ In Chiang Rai, there are lots of digital product

Customer Analysis – In recent time, we just conducted a study on the

Competitive Analysis – Our competitor are those computer stores and

3.2 STP Analysis

Family size: 1-2, 3-4, 4-6, 6+

older, single; other

Month Income (Baht): lower than 5,000; about 7,000-10,000; about

10,000-20,000; more than 30,000

Occupation: Student; government officer; employee; business owner; retirement

lower than 5,000 baht and most of them are students.

Market positioning ‐ We offer our customer a high‐technology product but

3.3 Marketing Mix Strategy

Gross before after

Communication margin Rental Personnel communication communication

expenses Sales (realized) Expenses Expense expense expense

Level (1) (2) (3) (4) (5) (6)=(3)‐(4)‐(5) (7)=(6)‐(1)

the expense levels between 12,000 and 14,000 all result almost the same level of profit. Thus,

4.1 Production and Operations Analysis

Negotiate with Manufacturing

4.2 cost of Investment

Computer 150, 000 3 Years 50, 000 4, 166.666

Equipment 14, 640 2 Years 7, 320 610

Vehicle 150, 000 5 Years 30, 000 2, 500

Administration Cost for per month

and financial situation .

5.1 Profit/loss statement

Period 27-Sep-10 28--Sep--11 26--Sep--12 26--Sep--13 28--Sep--14

Total operating 37,400 77,990 38,000 33,800 16,850

In the profit or loss statement we calculate the total revenue,gross margin,and

5.2 Cash flow

Year 1 Year2 Year3 Year4 Year5

5.3 Revenue forecast

Year 1 Year2 Year3 Year4 Year5

5.4 Investment activities

Sale of propert ,plant 0 0 0 0 0

Net Cash from Investing 648,560 660,440 678,220 704,560 713,130

5.6 balance sheet