Project Feasibility Study and Evaluation (1203302) By CN_Fantasy Electronic Company

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TINNAPOB KANOKTIP JIRAYOOT KAEWKA XU RUI REN HE TANG JING MA KEYU JIN RUI Present to

Lecturer: Chaiyawat Thongintr School of Management Mae Fah Luang University
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Preface
This project is one part of the Project Feasibility Study and Evaluation. The project main’s point also point to study and management what the process and strategy of the present whole world marketing because in real life, many organization must face many more competitors and they would have new strange strategies to entertain the market and beat us. This project also let us knows to take the analysis research and a lot of Mathematical approach that be used to analysis the findings. This project will never be done by without any help and recommendation of lecturer. We strongly hope that this project will assist for many people who interest in the management strategy as much as possible.

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CONTENT Topic Chapter 1 Introduction Chapter 2 Natural of Industry Chapter 3 Market Feasibility Study Chapter 4 Technical Feasibility Study Chapter 5 Financial Analysis Chapter 6 Risk Management Summary Reference Page 1 3 11

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CN_Fantasy Electronic Company

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

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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
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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 Other activities are pending……

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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. 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
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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. ONDA ONDA Technologies, Inc. is found in 1989, is a core partner of many well-known IT vendors to develop the domestic market in China. They always provide affordable price and high-quality high-tech products to customers. They set up 32 regional distribution centers, 16 technical service centers, their agents spread all over more than 200 cities in China. ONDA Company main businesses include MP3, flash memory, mobile storage, and other digital products. Their products are very popular in China. ONDA become one of the the largest and most influential brands in the Asia-Pacific region. All of our products import from famous brands in China. Because they are having better technology and equipments; they can design special and beautiful appearance products in cording to customers’ needs. They have good reputations, they can provide reliable and best quality; can make sure customers’ benefits and safe. 2.1 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
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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 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
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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 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
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Our company’s main products is MP3, MP4, and U disk, all of them import from Chinese companies. They are digital technology company, their science and technology and quality first, and pursuit of customer satisfactions. In recent years, these four companies in the production of MP3 and MP4 use of advanced technology and equipment, more and more consumers understanding, acceptance, approval and love these four brands of MP3 and MP4, products have been exported to Japan, Sweden, Hong Kong and other countries. More and more consumers who buy Chinese produce high-quality, low-cost MP3 and MP4.More and more countries have chosen to import Chinese-made MP3 and mp4.

Products name

Function ,language

Price

Cooler, product

accessory Play format

Lan Mo RAMOS Recording,Photo mp3,mp4 player view,play,movie,song (4G) .English, Chinese ,Thai

1200bath--- Silver,black,earpho mp3,wma,RMV 1500bath ne,charge,USB B,RM,FLV.

lanmov7+limited Play,song,E-book 500bath--edition (2G) reading.English,Chinese,T 1000bath hai, FM radio. LanmoT8touch (8G) Recording,Photo view,play,movie,songEbook,reading,English ,Chinese ,Thai

Silver,black,earpho Mp3, TXT ne ,charge ,USB

1850bath--- Emergency charger mp3,mp4,wma,R 2225bath + dark gray plastic MVB,RM,FLV. protection sleeve + Charger Any bag + charger APE,mp3 FLAC + speaker + headphone, whiter

Q23 mp3 (2G)

Play song ,recording 645bath-,FM,radio,English 1000bath ,Chinese ,Thai

1. Lan Mo RAMOS

2.v7+limited edition

3. Lan moT8 touch (8G)

4.Q23 mp3 (2G)

Product name

Function, language

price

cooler,accessory product

Play format

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Mini play M6(2G) Recording,Photo 1845bath, Silver,black,earphon Mp3 ,wma,wav 26hours paly song or view,play,movie,song 1995bath e,charge,USB.black 4.5house play movie .English, Chinese ,Thai and white ,ultra- 500 btah Red,black,whiteearp Mp3 ,wma,wav music carMP3 2GB Lyrics,E--book clear,audio,FM radio hone,charge,USB English, Chinese ,Thai

Mini play M6(2G)

music carMP3 2GB

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. - 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
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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. 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
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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 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

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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 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

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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, 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, Internetrelated transactions are defined purely in technological terms.

3.12 Competition Analysis
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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 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. Age: 6-15, 15-25, 25-40, 40-60; 60+
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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.

Quality Low High

Price

Economic

Presentation

Skimming Low

Premium High

Cn_fantasy

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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 Objective 3: Build store’s reputation. Task: One quarter-page newspaper ad per month in the IT section of the local newspaper 5000 baht 0 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 Gross margin (realized) Rental, maintenance, etc Personnel Communications • Profit ฿ 134,000 ฿ 53,600 -฿ 17,400 -฿ 13,020 -฿ 12,000 ฿ 11,180

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3.5 Marketing Expenses Communication Budget
Contribution before communicati Gross Communication expenses Level 1 2 3 4 5 6 7 8 (1) Sales (2) margin Rental Personnel on expense (6)=(3)-(4)(5) Profit after communicatio n expense (7)=(6)-(1)

(realized) Expenses Expense (3) (4) (5)

฿0 ฿ 2,000 ฿ 4,000 ฿ 6,000 ฿ 8,000 ฿ 10,000 ฿ 12,000

฿ 48,000 ฿ 19,200 ฿ 8,800 ฿ 10,440

-฿ 40 ฿ 4,520 ฿ 9,680 ฿ 14,000 ฿ 17,780 ฿ 20,750 ฿ 23,180

-฿ 40 ฿ 2,520 ฿ 5,680 ฿ 8,000 ฿ 9,780 ฿ 10,750 ฿ 11,180

฿ 66,000 ฿ 26,400 ฿ 10,600 ฿ 11,280 ฿ 84,000 ฿ 33,600 ฿ 12,400 ฿ 11,520 ฿ 100,000 ฿ 40,000 ฿ 14,000 ฿ 12,000 ฿ 114,000 ฿ 45,600 ฿ 15,400 ฿ 12,420 ฿ 125,000 ฿ 50,000 ฿ 16,500 ฿ 12,750 ฿ 134,000 ฿ 53,600 ฿ 17,400 ฿ 13,020

฿ 14,000 ฿ 141,000 ฿ 56,400 ฿ 18,100 ฿ 13,230 ฿ 25,070 ฿ 11,070 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.

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Chapter 4 Technical Feasibility Study
1.1
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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.

Usually ultrathin card types design for man, it convenient to carry; they can put it in their pocket.

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Cartoon types often design for children; they have very cute cartoon appearance, and the price is cheap.

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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.
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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" 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.
22

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. 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.

23

-

Production/Service Process

Negotiate with Manufacturing

Purchase Products

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 1520 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.

24

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

Pre-Operating Cost for Year 2010, Monthly
Expenses/Asset Expenses Rent

JAN B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100

FEB B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100

MAR B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100

APR B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100

MAY B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100

JUN B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100

Insurance Salary (3) Advertising Internet Portal Shipping fee Decorating fee Asset Equipment Computer (5) MP3,MP4/Produ ct License Vehicle Total

610 610 610 610 610 610 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 61,000 61,000 61,000 61,000 61,000 61,000 83.3333 83.3333 83.3333 83.3333 83.3333 83.3333 2,500 2,500 2,500 2,500 2,500 2,500 143,891.5 143,891.5 143,891.5 143,891.5 143,891.5 143,891.5

25

JUL B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100 Asset 610 4,166.66 61,000 83.3333 2,500 143,891.5

AUG B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100 610 4,166.66 61,000 83.3333 2,500 143,891.5

SEP B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100 610 4,166.66 61,000 83.3333 2,500 143,891.5

OCT B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100 610 4,166.66 61,000 83.3333 2,500 143,891.5

NOV B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100 610 4,166.66 61,000 83.3333 2,500 143,891.5

DEC B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100 610 4,166.66 61,000 83.3333 2,500 143,891.5

TOTAL B120,000 48, 800 175,680 8, 000 1,500 40,000 73,200 7,320 50,000 732,000 1,000 30,000 1,726,699

Pre-Operating Cost for Year 2011, Monthly
Expenses/Asset Expenses Rent

JAN B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100

FEB B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100

MAR B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100

APR B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100

MAY B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100

JUN B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100

Insurance Salary (3) Advertising Internet Portal Shipping fee Decorating fee Asset 610 Equipment 4,166.66 Computer (5) MP3,MP4/Produc 61,000 t 83.3333 License 2,500 Vehicle 143,766.5 Total

610 610 610 610 610 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 61,000 61,000 61,000 61,000 61,000 83.3333 83.3333 83.3333 83.3333 83.3333 2,500 2,500 2,500 2,500 2,500 143,766.5 143,766.5 143,766.5 143,766.5 143,766.5

26

JUL B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100 Asset 610 4,166.66 61,000 83.3333 2,500 143,766.5

AUG B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100 610 4,166.66 61,000 83.3333 2,500 143,766.5

SEP B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100 610 4,166.66 61,000 83.3333 2,500 143,766.5

OCT B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100 610 4,166.66 61,000 83.3333 2,500 143,766.5

NOV B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100 610 4,166.66 61,000 83.3333 2,500 143,766.5

DEC B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100 610 4,166.66 61,000 83.3333 2,500 143,766.5

TOTAL B120,000 48, 800 175,680 8, 000 0 40,000 73,200 7,320 50,000 732,000 1,000 30,000 1,725,199

Pre-Operating Cost for Year 2012, Monthly
Expenses/Asset Expenses Rent

JAN B10, 000 4,0666.6 14,640 666.666 125 3,333.33 7,116.66

FEB B10, 000 4,0666.6 14,640 666.666 125 3,333.33 7,116.66

MAR B10, 000 4,0666.6 14,640 666.666 125 3,333.33 7,116.66

APR B10, 000 4,0666.6 14,640 666.666 125 3,333.33 7,116.66

MAY B10, 000 4,0666.6 14,640 666.666 125 3,333.33 7,116.66

JUN B10, 000 4,0666.6 14,640 666.666 125 3,333.33 7,116.66

Insurance Salary (3) Advertising Internet Portal Shipping fee Decorating fee Asset 1,016.66 Equipment 4,166.66 Computer (5) MP3,MP4/Produc 80,000 t 83.3333 License 2,500 Vehicle 164,314.9 Total

1,016.66 1,016.66 1,016.66 1,016.66 1,016.66 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 80,000 80,000 80,000 80,000 80,000 83.3333 83.3333 83.3333 83.3333 83.3333 2,500 2,500 2,500 2,500 2,500 164,314.9 164,314.9 164,314.9 164,314.9 164,314.9

27

JUL B10, 000 4,0666.6 14,640 666.666 125 3,333.33 7,116.66 Asset 1,016.66 4,166.66 80,000 83.3333 2,500 164,314.9

AUG B10, 000 4,0666.6 14,640 666.666 125 3,333.33 7,116.66 1,016.66 4,166.66 80,000 83.3333 2,500 164,314.9

SEP B10, 000 4,0666.6 14,640 666.666 125 3,333.33 7,116.66 1,016.66 4,166.66 80,000 83.3333 2,500 164,314.9

OCT B10, 000 4,0666.6 14,640 666.666 125 3,333.33 7,116.66 1,016.66 4,166.66 80,000 83.3333 2,500 164,314.9

NOV B10, 000 4,0666.6 14,640 666.666 125 3,333.33 7,116.66 1,016.66 4,166.66 80,000 83.3333 2,500 164,314.9

DEC B10, 000 4,0666.6 14,640 666.666 125 3,333.33 7,116.66 1,016.66 4,166.66 80,000 83.3333 2,500 164,314.9

TOTAL B120,000 48, 800 175,680 8, 000 1,500 40,000 85,400 12,200 50,000 960,000 1,000 30,000 1,532,580

Pre-Operating Cost for Year 2013, Monthly
Expenses/Asset Expenses Rent

JAN B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100

FEB B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100

MAR B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100

APR B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100

MAY B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100

JUN B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100

Insurance Salary (3) Advertising Internet Portal Shipping fee Decorating fee Asset 1,016.66 Equipment 5,000 Computer (5) MP3,MP4/Produc 91,500 t 83.3333 License 2,500 Vehicle 175,506.5 Total

1,016.66 1,016.66 1,016.66 1,016.66 1,016.66 5,000 5,000 5,000 5,000 5,000 91,500 91,500 91,500 91,500 91,500 83.3333 83.3333 83.3333 83.3333 83.3333 2,500 2,500 2,500 2,500 2,500 175,506.5 175,506.5 175,506.5 175,506.5 175,506.5

28

JUL B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100 Asset 1,016.66 5,000 91,500

AUG B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100 1,016.66 5,000 91,500

SEP B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100 1,016.66 5,000 91,500

OCT B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100 1,016.66 5,000 91,500

NOV B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100 1,016.66 5,000 91,500

DEC B10, 000 4,0666.6 14,640 666.666 0 3,333.33 6,100 1,016.66 5,000 91,500

TOTAL B120,000 48, 800 175,680 8, 000 0 40,000 73,200 12,200 180,000 1,098,000

83.3333 83.3333 83.3333 83.3333 83.3333 1,000 83.3333 2,500 2,500 2,500 2,500 2,500 30,000 2,500 175,506.5 175,506.5 175,506.5 175,506.5 175,506.5 175,506.5 1,786,880

Pre-Operating Cost for Year 2014, Monthly
Expenses/Asset Expenses Rent

JAN B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100

FEB B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100 1,138 5,000 101,666

MAR B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100 1,138 5,000 101,666

APR B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100 1,138 5,000 101,666

MAY B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100 1,138 5,000 101,666

JUN B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100 1,138 5,000 101,666

Insurance Salary (3) Advertising Internet Portal Shipping fee Decorating fee Asset 1,138 Equipment 5,000 Computer (5) MP3,MP4/Produc 101,666 t 83.3333 License 2,500 Vehicle 185,918.9 Total

83.3333 83.3333 83.3333 83.3333 83.3333 2,500 2,500 2,500 2,500 2,500 185,918.9 185,918.9 185,918.9 185,918.9 185,918.9

29

JUL B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100 Asset 1,138 5,000 101,666 83.3333 2,500 185,918.9

AUG B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100 1,138 5,000 101,666 83.3333 2,500 185,918.9

SEP B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100 1,138 5,000 101,666 83.3333 2,500 185,918.9

OCT B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100 1,138 5,000 101,666 83.3333 2,500 185,918.9

NOV B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100 1,138 5,000 101,666 83.3333 2,500 185,918.9

DEC B10, 000 4,0666.6 14,640 666.666 125 3,333.33 6,100 1,138 5,000 101,666 83.3333 2,500 185,918.9

TOTAL B120,000 48, 800 175,680 8, 000 1,500 40,000 73,200 13,656 60,000 1220,000 1,000 30,000 1,791,836

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

Depreciation for Year 2010, Monthly
INVESTMEN AMOUNT JAN T COMPUTER 150, 000 EQUIPMENT 14, 640 VEHICLE TOTAL 150,000 314, 640 4, 166.6 610 FEB 4, 166.6 610 MAR APR 4, 166.6 610 4, 166.6 610 MAY JUN 4, 166.6 610 4, 166.6 610 JUL 4, 166.6 610 AUG 4, 166.6 610 SEP 4, 166.6 610 OCT 4, 166.6 610 NOV 4, 166.6 610 DEC 4, 166.6 610 TOTAL 50, 000 7, 320

2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 30,000 7, 276.6 7, 276.6 7, 276.6 7, 276.6 7, 276.6 7, 276.6 7, 276.6 7, 276.6 7, 276.6 7, 276.6 7, 276.6 7, 276.6 87, 320

30

Depreciation for Year 2011, Monthly
INVESTMEN AMOUNT JAN T COMPUTER 100, 000 EQUIPMENT 7320 VEHICLE TOTAL 120, 000 227, 320 4, 166.6 610 FEB 4, 166.6 610 MAR APR 4, 166.6 610 4, 166.6 610 MAY JUN 4, 166.6 610 4, 166.6 610 JUL 4, 166.6 610 AUG 4, 166.6 610 SEP 4, 166.6 610 OCT 4, 166.6 610 NOV 4, 166.6 610 DEC 4, 166.6 610 TOTAL 50, 000 7, 320

2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 30,000 3, 943.3 3, 943.3 3, 943.3 3, 943.3 3, 943.3 3, 943.3 3, 943.3 3, 943.3 3, 943.3 3, 943.3 3, 943.3 3, 943.3 87, 320

Depreciation for Year 2012, Monthly
INVESTMEN AMOUNT JAN T COMPUTER 50, 000 EQUIPMENT 0 VEHICLE TOTAL 90, 000 140, 000 4, 166.6 0 FEB 4, 166.6 0 MAR APR 4, 166.6 0 4, 166.6 0 MAY JUN 4, 166.6 0 4, 166.6 0 JUL 4, 166.6 0 AUG 4, 166.6 0 SEP 4, 166.6 0 OCT 4, 166.6 0 NOV 4, 166.6 0 DEC 4, 166.6 0 TOTAL 50, 000 0

2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 30,000 6, 666.6 6, 666.6 6, 666.6 6, 666.6 6, 666.6 6, 666.6 6, 666.6 6, 666.6 6, 666.6 6, 666.6 6, 666.6 6, 666.6 80,000

Depreciation for Year 2013, Monthly
INVESTMEN AMOUNT JAN T COMPUTER 0 EQUIPMENT 0 VEHICLE TOTAL 60, 000 60, 000 0 0 FEB 0 0 MAR APR 0 0 0 0 MAY 0 0 JUN 0 0 JUL 0 0 AUG 0 0 SEP 0 0 OCT 0 0 NOV 0 0 DEC 0 0 TOTAL 0 0

2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 30,000 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 30,000

Depreciation for Year 2014, Monthly
INVESTMEN AMOUNT JAN T COMPUTER 0 EQUIPMENT 0 VEHICLE TOTAL 30,000 30,000 0 0 FEB 0 0 MAR APR 0 0 0 0 MAY 0 0 JUN 0 0 JUL 0 0 AUG 0 0 SEP 0 0 OCT 0 0 NOV 0 0 DEC 0 0 TOTAL 0 0

2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 30,000 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 2, 500 30,000

31

Administration Cost for per month
Electricity Telephone Fax Salary Internet fee Water fee Receipts Total B 2,475 1,800 1,500 1,000 30 800 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 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.

32

Chapter 5 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
Jan Feb Mar Apr

Period ending

May

Jun

Jul

Aug Sep

Oct

Nov

Dec Total

Total 1273 12733 12733 12733 12733 12733 1273 12733 12733 12733 12733 12733 $1528 revenue 3 3 00 cost of 3491 3491 3491 34 91 3191 revenue Gross 9241 9241 9241 9241 9241 profit Operatin g expense Rental 1450 maint Rent 1000 store Advertisi 670 ng Decorati 0 ng fee Total 3116 1450 1450 450 1450 3419 3419 3419 3419 3419 3419 3419 $419

00
9241 9241 9241 9241 9241 9141 9241 $1109 00

1000 1000 1000 1000 670 670 670 670

1450 1450 1450 1450 1450 1450 1450 $1740 0 1000 1000 1000 1000 1000 1000 1000 $1200 0 670 670 670 670 670 670 670 $8000

0

0

0

0

0

0

0

0

0

0

0

0

operating expense Operatin 6125 6125 6125 61252 6125 g income or loss

3116 3116 3116 3116

3116 3116 3116 3116 3116 3116 3116 $3740 0 6125 6125 6125 6125 6125 6125 6125 $7350 0

Year 2011
Period ending Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Total 1280 12800 12800 12800 12800 12800 1280 12800 12800 12800 12800 12800 $1536 revenue 0 0 0 cost of 3483 3483 3483 3483 3483 revenue 3483 3483 3483 3483 3483 3483 3483 $4180 0

33

Gross 9316 9316 9316 profit Operatin g expense Rental 1408 1408 1408 maint Rent 1083 1083 1083 store Advertis 833 833 833 ing Decorati 3333 3333 3333 ng fee
Total Total operating expense
Operating or loss income

9316 9316

9316 9316 9316 9316 9316 9316 9316 $1118 00

1408 1408 1408 1408 1408 1408 1408 $1690 0 1083 1083 1083 1083 1083 1083 1083 1083 $1300 0 833 833 833 833 833 833 833 833 833 $1000 0 3333 3333 3333 333 3333 3333 3333 3333 3333 $4000 0 3 1408 1408 6499 6499 6499 6499 6499 6499 6499 $7790 0 2817 2817 2817 2817 2817 2817 2817 $3381 0

6499 6499 6499 6499 2817 2817 2817 2817 2817

Year 2012
Period ending Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Total 1265 12653 12653 12653 12653 12653 1265 12653 12653 12653 12653 12653 $1518 revenue 3 3 40 cost of 3349 revenue Gross 9304 profit Operatin g expense Rental 1416 maint Rent 1250 store Advertis 833 ing Decorati 0 ng fee Total 3166 Total 6 3349 3349 3349 3349 9304 9304 9304 9304 3349 3349 3349 3349 3349 3349 3449 $4019 0 9304 9304 9304 9304 9304 9304 9304 $1116 50

1416 1416 1416 1416 1250 1250 1250 1250 833 833 833 833

0

0

0

0

1416 1416 1416 1416 1416 1416 1416 $1700 0 1250 1250 1250 1250 1250 1250 1250 $1500 0 833 833 833 833 833 833 833 $1000 0 0 0 0 0 0 0 0 0

operating expense Operatin 6137 6137 6137 6137 6137 g income or loss

31666 31666 31666 31666 31666 3166 31666 31666 31666 31666 31666 $3800 0 6137 6137 6137 6137 6137 6137 6137 $7365 0

Year 2013

34

Period ending

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total

Total 12808 12808 12808 12808 12808 12808 1280 12808 12808 12808 12808 12808 $1537 revenue 8 00 cost of 3630 revenue Gross 9178 profit Operatin g expense Rental 1400 maint Rent 1166 store Advertisi 250 ng Decorati 0 ng fee Total 2816 3630 3630 3630 3630 9178 9178 9178 9178 3630 3630 3630 3630 3630 3630 9178 9178 9178 9178 9178 9178 3630 $4356 0 9178 $1101 14

1400 1400 1400 1400 1166 1166 1166 1166 250 250 250 250

1400 1400 1400 1400 1400 1400 1166 1166 1166 1166 1166 1166 250 250 250 250 250 250

1400 $1860 0 1166 $1400 0 250 $3000

0

0

0

0

0

0

0

0

0

0

0

0

Total operating expense Operating 6361 6361 6361 6361 6361 income or loss

2816 2816 2816 2816

2816 2816 2816 2816 2816 2816

2816 $3380 0 6361 $7634 0

6361 6361 6361 6361 6361 6361

Year 2014
Period ending Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Total 12726 12726 12726 12726 12725 12726 1272 12726 12726 12726 12726 12726 $1527 revenue 6 20 cost of 3529 revenue Gross 9197 profit Operatin g expense Rental 1404 maint Rent 1166 store Advertisi 166 ng Decorati 0 ng fee Total 1404
Total operating expense

3529 3529 3529 3529 9197 9197 9197 9197

3629 3529 3529 3529 3529 3529 9197 9197 9197 9197 9197 9197

3529 $4235 0 9197 $1103 70

1404 1404 1404 1404 1166 1166 1166 1166 166 166 166 166

1404 1404 1404 1404 1404 1404 1166 1166 1166 1166 1166 1166 166 166 166 166 166 166

1404 $1685 0 1166 $1400 0 166 $2000

0

0

0

0

0

0

0

0

0

0

0

0

1404 1494 1405 1505

1404 1404 1404 1404 1404 1404

1404 $1685 0

35

Operating 7793 7783 7793 7793 7793 income or loss

7793 7793 7793 7793 7793 7703

7703 $9352 0

Period ending 27-Sep-10 28--Sep--11 26--Sep--12 26--Sep--13 28--Sep--14 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
Operating expense Rental maintenance Rent store Advertising Decorating fee

17,400 12,000 8,000 ---

16,900 13,000 10,000 40,000 77,990 33,810

17,000 15,000 6,000 ---38,000 73,650

16,800 14,000 3,000 ---33,800 76,340

16,850 13,000 2,000 ----16,850 93,520

Total operating 37,400 expense Operating 73,500 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 -300,000 800,000 -50,000 -40,000 -40,000 -40,000 -30,000 -40,000 -20,000 -40,000 Year2 Year3 Year4 Year5 140,000

Capital
Resident capital

Loan Interest Repayment
Variable cost

Supplement Others
Total cost

-432,000 -29,400 variable -461,400

-564,000 -32,700 -696,700

-443,000 -45,600 -488,600

-357,000 -25,400 -392,400

-321,000 -31,400 -352,400

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Fixed cost Rent Insurance Advertising Internet portal Salary License Vehicle -120,000 -48,800 -8,000 -1500 -71,400 -5,000 -150,000 Total fixed cost -404,700
Working captail Working capital cash 10% of fixed -40,470 cost

-120,000 -48,000 -7,000 -1500 -71,400 -5,000 -150,000 -404,800

-120,000 -48,000 -7,000 -1500 -71,400 -5,000 -150,000 -404,800

-120,000 -48,000 -6,000 -1500 -71,400 -5,000 -150,000 -404,900

-120,000 -48,000 -5,000 -1500 -71,400 -5,000 -150,000 -405,000

-40,480

-40,480

-40,490

-40,500

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
Estimate sales volume Amount of 7200 customer Estimate sale price(bath)

Year2

Year3

Year4

Year5

8280

9522

10950

12593

Service Product
Revenue forecast

190 110

190 110

190 110

190 110

190 110

Service Product
Total forecast

11,180 435,000 revenue 445,180

13,400 534,000 547,400

15,300 643,000 653,300

16,700 652,900 679,600

16,900 674,800 691,700

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
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product and service in our company . 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
Year 2011 Period Jan Feb Mar

576,184 349,590
Apr May Jun Jul

723,420
Aug Sep

788,772
Oct Nov Dec
Total

Net 11166 11166 11166 11166 11166 11166 11166 11166 11166 11166 11166 11166 $1340 incom 00 e Depre 1443 1443 1443 1443 1443 1443 1443 1443 1443 1443 1443 1443 $1732 ciation 0 Incom 1775 1775 1775 1775 1775 1775 1775 1775 1775 1775 1775 1775 $2130 e taxes 0 Operat 6125 6125 6125 6125 6125 6125 6125 6125 6125 6125 6125 6125 $7350 ing 0 gain Invent 50833 50833 50833 50833 50833 50833 50833 50833 50833 50833 50833 50833 $6100 ory 0 Assets 22445 22445 22445 22445 22445 22445 22445 22445 22445 22445 22445 22445 $2693 40 Worki --------------------ng 3372.5 3372.5 3372.5 3372.5 3372.5 3372.5 3372.5 3372.5 3372.5 3372.5 3372.5 3372.5 $4047 capital 0 Net 44665 44665 44665 44665 44665 44665 44665 44665 44665 44665 44665 44665 $5359 cash 90 flow Year 2012
Period Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total

Net 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 13000 $1560 incom 00 e Depre 1537.5 1537.5 1537.5 1537.5 1537.5 1537.5 1537.5 1537.5 1537.5 1537.5 1537.5 1537.5 $1845 ciation 0 Incom 18691 1869 1869 1869 1869 1869 1869 1869 1869 1869 1869 1869 $2243 e taxes 0

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Operat 2817.5 2817.5 2817.5 2817.5 2817.5 2817.5 2817.5 2817.5 2817.5 2817.5 2817.5 2817.5 $3381 ing 0 gain Invent 4916 4916 49116 4916 4916 4916 4916 4916 4916 4916 4916 4916 $5900 ory 0 Assets 27247 27247 27247 27247 27247 27247 27247 27247 27247 27247 27224 27247 $3269 7 74 Worki (3373) (3373 03373 (3373) (3373) 3373 3373 3373 3373 3373 3373 3373 $4048 ng ) 0 capital Net 48015 48015 48015 48015 48015 48015 48015 48015 48015 48015 48015 48015 $5761 cash 84 flow

Year 2013
Period Jan Total

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec

Net 15583 15583 15583 15583 15583 15583 15583 15583 15583 15583 15583 15583 incom e Depre 1610 1610 1610 1610 1610 1610 1610 1610 1610 1610 1610 1610 ciation

$1870 00 $1932 0

Incom 1955 1955 1955 1955 1955 1955 1955 1955 1955 1955 1955 1955 $2347 e taxes 0 Operat 6137.5 6137.5 6137.5 6137.5 6137.5 6137.5 6137.5 6137.5 6137.5 6137.5 6137.5 6137.5 $7365 ing 0 gain Invent 48166 48116 48116 48116 48116 48116 48116 48116 48116 $8116 48116 48116 $5780 ory 0 Assets 3153 3153 3153 3153 3153 3153 3153 3153 3153 3153 3153 3153 $3783 8 Worki (3373) (3373 03373 (3373) (3373) 3373 3373 3373 3373 3373 3373 3373 $4048 ng ) 0 capital Net 29123. 29123. 29123. 28123. 29123. 29123. 29123. 29123. 29123. 29123. 29123. 29123. #3405 cash 5 5 5 5 5 5 5 5 5 3 5 5 90 flow

Year 2014
Period Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total

Net 15583 15583 15583 15583 15583 15583 15583 15583 15583 15583 15583 15583 $1870 incom 00 e
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Depre 1704 1704 1704 1704 1704 1704 1704 1704 1704 1704 1704 1704 $2045 ciatio 0 n Incom 20466 20466 20466 20466 20466 20466 20466 20466 20466 20466 20466 20466 $2456 e 0 taxes Opera 6361 6361 6361 6361 6361 6361 6361 6361 6361 6361 6361 6361 $7634 ting 0 gain Invent 4065 4065 4065 4065 4065 4065 4065 4065 4065 4065 4065 4065 $4879 ory 0 Assets 3387.5 33897. 33897. 33897. 33897. 33897. 33897. 33897. 33897. 33897. 33897. 33897. $4067 5 5 5 5 5 5 5 5 5 5 5 70 Worki (3374) --3374 --3374 --3374 --3374 --3374 --3374 --3374 --3374 --3374 --3374 --3374 ($404 ng 90) capital Net 60285 60285 60285 60285 60285 60285 60285 60285 60285 60285 60285 60285 $7234 cash 20 flow

Year 2015 Period Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total

Net 16416 16416 16416 16416 16416 16416 16416 16416 16416 16416 16416 16416 incom e Depre 7793 7793 7793 7793 7793 7793 7793 7793 7793 7793 7793 7793 ciation

$1970 00 $9352 0

Incom 2046 2046 2046 2046 2046 2046 2046 2046 2046 2046 2046 2046 $2456 e taxes 0 Operat 7793 7793 7793 7793 7793 7793 7793 7793 7793 7793 7793 7793 $9352 ing 0 gain Invent 4082.5 4082.5 4082.5 4082.5 4082.5 4082.5 4082.5 4082.5 4082.5 4082.5 4082.5 4082.5 $4899 ory 0 Assets 3697.5 3697.5 3697.5 3697.5 3697.5 3697.5 3697.5 3697.5 3697.5 3697.5 3697.5 3697.5 $4437 02 Worki 3370 3370 3370 3370 3370 3370 3370 3370 3370 3370 3370 3370 $4045 ng 0 capital Net 65731 65731 65731 65731 65731 65731 65731 65731 65731 65731 65731 65731 $7787 cash 72 flow

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
40

Purchase of propert ,plat equipment 83,440 84,560 86,780

81,450

84,870 713,130

Net Cash from Investing 648,560 660,440 678,220

704,560

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 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 good sold Cost of goods sold Beginning inventory

$732.000
41

+ 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 Year 2011 cost of goods sold Cost of goods sold Beginning inventory $722.900 + purchase $36,600 Goods variable to sold $759,500 -- ending merchandise inventory $45,700 Cost of goods sold $713,800

Year 2012 cost of goods sold Cost of goods sold Beginning inventory $713,800 + purchase $46,500 Goods variable to sold $760,300 -- ending merchandise inventory $45,700 Cost of goods sold $714,600

Year 2013 cost of goods sold Cost of goods sold Beginning inventory $ 714,600 + purchase $56,700 Goods variable to sold $771,300 -- ending merchandise inventory $32,900 Cost of goods sold $738,400 Year 2014 cost of goods sold Cost of goods sold Beginning inventory $ 738,600 + purchase $36,700 Goods variable to sold $775,100 -- ending merchandise inventory $32,900 Cost of goods sold $742,200 After 5 years our company cost of goods sold is $742200.

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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 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:
1 2

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?

3

43

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. 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 employees/volunteers. held liable for the actions of their

• •

Organizations are perceived as having a lot of assets and/or high insurance policy limits.

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Summary
The CN_Fantasy Electronic Company is importing and selling the digital products that it will happen in real activity life. The company, they focus on 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. Our company would be mind on the objective to be profitable and archive the goal; we have to conduct the descriptive, take analysis research and a lot of Mathematical approach that be used to analysis the findings. The problem that we meet that is we have not faced in our plan will be face in the real life; 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. Let’s look the Digital product brand in China; 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. Then the second brand is 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. The third brand is AIGO Beijing Huaqi Information Technology Development Co., Ltd has about 1,900 employees, 200 professional 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. ONDA Company main businesses include MP3, flash memory, mobile storage, and other digital products. Their products are very popular in China. ONDA become one of the largest and most influential brands in the Asia-Pacific region. The product of our company is MP3, MP4, and U disk, all of them import from Chinese companies. They are digital technology company, their science and technology and quality first, and pursuit of customer satisfactions.
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Actually the services of 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. On the vision is “To be the most popular Electronic product retailer of Thailand” 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.
·

Saving resources: Time, assets, income, property and people are all valuable resources that can be saved if fewer claims occur.
46

· ·

· · · · ·

Protecting the reputation and public image of the organization. Preventing or reducing legal liability and increasing the stability of operations. Protecting people from harm. Protecting the environment. Enhancing the ability to prepare for various circumstances. Reducing liabilities.

Assisting in clearly defining insurance needs. The market feasibility and technical feasibility study we found many problems and learn how to reach the profits then the financial analysis also included how much the money would be spent on and the cash flow during the process. Risk management found that the problems would be held on many stakeholders and investors, the marketing target might be focus on the wrong customers and there is the pricing problems also would be happen, if the price would be more expensive and inappropriately.

47

Reference
English official site

Ramos: http://en.mumumusic.com/ Aigo: http://en.aigo.com/en/ProductCategory-28.aspx Newsmy: http://www.newsmy.com/en/Products.asp Meizu: http://en.meizu.com/m/m8.html

48